Managing External Work

Someone asked me recently about managing outsourced piecework, where people outside your company are paid by the number of tasks performed. I did this on various projects for over a year with a previous employer. Our trial-and-error approach had quite a few errors, but we did eventually establish a stable system. This is an outline of that successful system, with a few notes about things we tried that didn’t work.

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Understanding Cash-Settled Futures

What is This?

This spread sheet is my own attempt to show how the collateral flow to or from a clearing house works. I created it about five years ago when I was working at a bank, and needed to explain the relationships between different quantities, and how they are calculated.

If you have a rough idea of how futures work, and want to see a detailed example, this post might help. If you don’t know what futures are, this won’t help, but Wikipedia’s intro might.

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Choosing to do a Project: Three Gates

I’ve had this mental model for a while, but it solidified a year ago after explaining it at work, and I wanted to use it again in a Twitter debate shortly afterwards. Twitter’s the wrong place for real explanations though, so here it is.

This model will not solve your disagreements for you, and it’s not a substitute for calculating the NPV of your possible projects. Instead, it’s a quick shorthand that might make discussions more useful, and show you something about your team.

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