Everyone must put food on the table and find a way to squirrel out enough resources to keep Maslow happy with his famous five “hierarchy of needs” of physical (food), safety (get out of my cubicle), belongingness (include me in the information flow), esteem (I know what is going on around here) and lastly, self-actualization (I can lead the way.) We have discussed here previously Maslow and his description of these basic human requirements to get by, get along and get ahead, but what happens when you are just stuck trying to discern what is needed to motivate yourself or your team? Usually the answer is money. Show me the money, and I will show you the results. But, what happens when you don’t have the money for a pay raise or financial incentive, or worse, you have given that to your team, but they just can’t seem to get it done without your constantly micromanaging them?
Enter the Law of Diminishing Returns, and the idea of a Break Even Point. The Law of Diminishing Returns tells us that there is a point where even with more effort or investment, results decline. The idea of a Break Even Point tells us that input (of money) equals output of effort up to a zero sum balance. That is to say, more money does not get you more effort past the psychological breakeven point. As I was asked in an interview once, “How much money do you need?” The hidden question is “How much money will make you lazy?” The point behind the question is “How do we motivate you when we can’t or won’t give you more money?” The correct answer is: It isn’t all about money.
To that thought, here are some ideas to think about from an article I found in Inc. and offered up by entrepreneur Ilya Pozin. His company, Ciplex, made the Inc. 500/5000 list for 2011 of America’s fastest growing private businesses. Starting this company at age of 17, Ciplex is a digital marketing and creativity agency. Writing for Inc., Pozin’s article, 9 Things that motivate your employees more than Money, really caught my attention. When it comes to motivating yourself and your team, the answer may cost less than you think. Good stuff, so grab some coffee and think about this one for a minute. And there is no charge on this one either.
According to Mr. Pozin:
1. Be generous with praise. Everyone wants it and it’s one of the easiest things to give. Plus, praise from the Boss or leader goes a lot farther than you might think. Praise goes even further when you praise someone in front of others.
2. Get rid of the managers. Love this one! Let people simply work as a team. There really are just some things that you cannot buy, and getting someone to come in early or stay late is an issue of motivation, not requirement. They may not do it for you, but they will do it for the group.
3. Make your ideas theirs. It is all in the tone or turn of the phrase. “Do you think it’s a good idea if we do it this way?” is received much better than I need this done this way now. Remember, just because you say it harshly or loudly does not make it more accurate or necessary. (Unless of course the house is on fire.)
4. Never criticize or correct. If you want adults, be adults. If you want children, treat people like children. Pozin suggests an indirect approach to get people to improve, learn from their mistakes, and fix them. Ask, “Was that the best way to approach the problem? Why not? Have any ideas on what you could have done differently?” Then you’re having a conversation and talking through solutions, not pointing a finger.
5. Make everyone a leader. All you limelight huggers and glory hounds beware. You need to step away from the warmth of the spotlight and highlight your top performers’ strengths instead. Pozin suggests letting them know that because of their excellence, you want them to be the example for others.
6. Take an employee to lunch once a week. Or just randomly do something nice for someone on your team. But, please don’t play favorites.
7. Give recognition and small rewards. They don’t need to break the bank, but small tangible awards like dinner, trophies, spa services, and plaques are good places to start.
8. Throw company parties. Remember when work use to be fun? Remind your staff that you’re all in it together.
9. Share the rewards—and the pain. Be honest and transparent. Ask for opinions, and require a yes or no. You should not always agree for goodness sake. It is okay to have an original and intelligent thought that is different.
If you never have any dissention, then you are not progressing as a team, and your entire effort is at peril if you lose the figurehead leader.
Thanks for taking a read this week, and I would look forward to your ideas as well.
AdVISE
Saturday, December 10, 2011
Thursday, November 17, 2011
Talkin' Bout an Evolution
Forgive me John Lennon and the Beatles, but just a little play on the title wording. Brian Brim is the coauthor of Strengths Based Selling, and I found a few of his thoughts in the Gallup Management Journal this week that you may find helpful too. His ideas, and those of David Liebnau, Executive Coach with Gallup, offer some insight as we evaluate change opportunities and growth here in the North Jefferson area. I was encouraged and reminded that real change takes time and persistence. In their words, we should be more patient. More will be accomplished through slight shifts than massive immediate changes.
According to Brim and Liebnau, everyone has their special way of doing things that is comfortable, your own special groove. Stepping out of your way of doing things and into another can feel a bit like putting on someone else’s shoes. Not too comfortable and certainly not that efficient. The challenge it seems is to appreciate the difference between actions and practices. Now stay with me here.
According to the writers, actions are the behaviors that you do with little thought. The actions a leader usually takes are determined by the "groove" he or she has developed over time. But how can you grow as a leader if you're forever contained in this same groove? You can't, and that is where practices come in. Practices are interventions that enable you to establish new ways of thinking, feeling, and behaving. They are essential to expand and develop your identity. To grow as a leader, you must slowly and steadily expand the groove. Adopting new practices which are slight shifts from what you already do enables you to access a different level of possible actions and create new opportunities. It is evolution, not revolution.
You don’t get out of your rhythm of what works, you just expand it.
This type of change is called slight-shift practice. It may be fairly easy too. But that's the point: When leaders are asked to do something they have the confidence to do and they see immediate success, they gain confidence from the positive feedback. Confidence and success drive them to repeat it. That's how sustainable development and wider grooves are created, and that's how great results happen. It is like a slow lazy stream that with time and persistence can become the Grand Canyon.
What small changes can you make this week that will lead you to a sea change of possibility? How about pushing back from your desk and talking with your team more about their ideas for improvement? How about dealing with problems immediately, instead of putting them off? How about delegating more to allow someone else to grow in a skill? Can you accept the challenge to just get things done without regard to whom gets the credit?
Now think about this idea in the context of our communities and growth. Think about it in the context of economic and professional development for yourself and the company that you support. Each entity be a company or a community has its own opportunity for development, and each has its own groove for certain. But what would happen if the groove or rhythm started to widen, just a little?
Will our opportunities expand if we take a few actions to partner more, to trust more, and to be more transparent? Once these first easier steps are taken, then and only then will you be able to really talk about creative change, innovation, and thoughtful risk taking.
According to Brim and Liebnau, everyone has their special way of doing things that is comfortable, your own special groove. Stepping out of your way of doing things and into another can feel a bit like putting on someone else’s shoes. Not too comfortable and certainly not that efficient. The challenge it seems is to appreciate the difference between actions and practices. Now stay with me here.
According to the writers, actions are the behaviors that you do with little thought. The actions a leader usually takes are determined by the "groove" he or she has developed over time. But how can you grow as a leader if you're forever contained in this same groove? You can't, and that is where practices come in. Practices are interventions that enable you to establish new ways of thinking, feeling, and behaving. They are essential to expand and develop your identity. To grow as a leader, you must slowly and steadily expand the groove. Adopting new practices which are slight shifts from what you already do enables you to access a different level of possible actions and create new opportunities. It is evolution, not revolution.
You don’t get out of your rhythm of what works, you just expand it.
This type of change is called slight-shift practice. It may be fairly easy too. But that's the point: When leaders are asked to do something they have the confidence to do and they see immediate success, they gain confidence from the positive feedback. Confidence and success drive them to repeat it. That's how sustainable development and wider grooves are created, and that's how great results happen. It is like a slow lazy stream that with time and persistence can become the Grand Canyon.
What small changes can you make this week that will lead you to a sea change of possibility? How about pushing back from your desk and talking with your team more about their ideas for improvement? How about dealing with problems immediately, instead of putting them off? How about delegating more to allow someone else to grow in a skill? Can you accept the challenge to just get things done without regard to whom gets the credit?
Now think about this idea in the context of our communities and growth. Think about it in the context of economic and professional development for yourself and the company that you support. Each entity be a company or a community has its own opportunity for development, and each has its own groove for certain. But what would happen if the groove or rhythm started to widen, just a little?
Will our opportunities expand if we take a few actions to partner more, to trust more, and to be more transparent? Once these first easier steps are taken, then and only then will you be able to really talk about creative change, innovation, and thoughtful risk taking.
Thursday, November 10, 2011
Greece, Debt and the Road to Your House
So, 10 doctors walk into a bar….Okay not the beginning of the best joke ever, but I did have a dinner meeting with several of my customers this week and the conversation quickly turned to politics. I would like to continue our thinking from last week’s discussion of how to best engage government and explore just how deeply our Grassroots should run. From banking, to schools, to medicine, to the local restaurant around the corner, it is important to understand how we came to be in well…so much debt.
It begins here at home. I call it trickle up debt. It becomes a pervasive mindset that in order to have something you have to pay for it later. The conversation with my customers over dinner began with a bit of finger pointing. “Look at Greece! Geez what a mess!” said one. Like many countries, the Greek government, like the U. S., relies on borrowed money to balance its books. The recession has made this harder to achieve, because tax revenues are falling with people spending less, just as entitlement and welfare payments start to rise. To be fair, using public spending to even out the bumps in an economy is what most large developed economies do right now. This is all well and good as long as the investor money keeps coming in to the system. We aren’t even close to a balanced budget here in our own country. In fact, Economist warn that to get there we would pretty much need to eliminate all spending on defense and social security. Yikes. The lesson here is that debit is not all bad. Debt that you cannot repay is very, very bad.
Unfortunately, investors have lost confidence in the Greek government's ability to walk this tightrope – so they have been demanding ever higher rates of interest to compensate for the risk that they might not get their money back. The higher it’s borrowing costs, the harder it is for the Greek economy to grow itself out of trouble. Money really doesn’t grow on trees, and while countries like the US can print more, it just works to devalue the currency.
When Greek debt downgraded to "junk" status, the cost of borrowing money became too high. Fearing bankruptcy, Greece had to turn instead to the European Union and the International Monetary Fund for money to float there debt. But, just as money doesn’t grow on trees, it ain’t cheap either. Germany and other European Union members took issue with just giving more money without constraints to a struggling Greek economy as did Washington. This time there had to be some strings attached and a tough series of public sector cuts known as austerity measures were designed to reassure international investors that the government can become credit worthy again.
Dial back a few years to the mid 2000’s when Greece was strong and solvent. During this time and prior, the Greek government took advantage of this by running in a deficit. With an economy dependent on shipping and tourism, it headed south quickly when the economy worldwide started to cool. Austerity measures have been the source of massive protests as the Greek government seeks to shake the couch cushions of its economy for loose change. Public sector pay cuts, pension reductions, new taxes on corporate profits, luxury and sin taxes, and value added tax (which is for an entirely different article) are the tools of a Government seeking to sustain itself and it has the people crying Uncle.
But, let’s get back to my doctors and our dinner conversation. Greece is a long way away, so what does that mean here in little old Jefferson County? Well, the story for Greece sounds pretty similar to Jefferson County if you get right down to it. Weak leadership, poor accountability, and simply spending and promising to spend money that you don’t have can be found across the world or even around the corner.
And what about some of the towns right here in North Jefferson County? Time will tell how the balance sheet fares out, but spending just because you have it, especially when it is on salaries and not infrastructure or improvements is just not a good idea. A recent Birmingham News article reviewed the balance sheets of two of our big towns here in North Jefferson. Both passed budget increases for 2012 with bigger coffer requirements needed to support employee raises and debt obligations. And don’t forget the add-on of “just a penny more” to your tax burden at the store.
Suddenly Greece doesn’t sound so far away.
It begins here at home. I call it trickle up debt. It becomes a pervasive mindset that in order to have something you have to pay for it later. The conversation with my customers over dinner began with a bit of finger pointing. “Look at Greece! Geez what a mess!” said one. Like many countries, the Greek government, like the U. S., relies on borrowed money to balance its books. The recession has made this harder to achieve, because tax revenues are falling with people spending less, just as entitlement and welfare payments start to rise. To be fair, using public spending to even out the bumps in an economy is what most large developed economies do right now. This is all well and good as long as the investor money keeps coming in to the system. We aren’t even close to a balanced budget here in our own country. In fact, Economist warn that to get there we would pretty much need to eliminate all spending on defense and social security. Yikes. The lesson here is that debit is not all bad. Debt that you cannot repay is very, very bad.
Unfortunately, investors have lost confidence in the Greek government's ability to walk this tightrope – so they have been demanding ever higher rates of interest to compensate for the risk that they might not get their money back. The higher it’s borrowing costs, the harder it is for the Greek economy to grow itself out of trouble. Money really doesn’t grow on trees, and while countries like the US can print more, it just works to devalue the currency.
When Greek debt downgraded to "junk" status, the cost of borrowing money became too high. Fearing bankruptcy, Greece had to turn instead to the European Union and the International Monetary Fund for money to float there debt. But, just as money doesn’t grow on trees, it ain’t cheap either. Germany and other European Union members took issue with just giving more money without constraints to a struggling Greek economy as did Washington. This time there had to be some strings attached and a tough series of public sector cuts known as austerity measures were designed to reassure international investors that the government can become credit worthy again.
Dial back a few years to the mid 2000’s when Greece was strong and solvent. During this time and prior, the Greek government took advantage of this by running in a deficit. With an economy dependent on shipping and tourism, it headed south quickly when the economy worldwide started to cool. Austerity measures have been the source of massive protests as the Greek government seeks to shake the couch cushions of its economy for loose change. Public sector pay cuts, pension reductions, new taxes on corporate profits, luxury and sin taxes, and value added tax (which is for an entirely different article) are the tools of a Government seeking to sustain itself and it has the people crying Uncle.
But, let’s get back to my doctors and our dinner conversation. Greece is a long way away, so what does that mean here in little old Jefferson County? Well, the story for Greece sounds pretty similar to Jefferson County if you get right down to it. Weak leadership, poor accountability, and simply spending and promising to spend money that you don’t have can be found across the world or even around the corner.
And what about some of the towns right here in North Jefferson County? Time will tell how the balance sheet fares out, but spending just because you have it, especially when it is on salaries and not infrastructure or improvements is just not a good idea. A recent Birmingham News article reviewed the balance sheets of two of our big towns here in North Jefferson. Both passed budget increases for 2012 with bigger coffer requirements needed to support employee raises and debt obligations. And don’t forget the add-on of “just a penny more” to your tax burden at the store.
Suddenly Greece doesn’t sound so far away.
Friday, October 21, 2011
Occupy North Jefferson County
Occupy North Jefferson. Is it that different than Occupy Wall Street? We think that our town is different in the notion of challenges and problems, but from Wall Street to Main Street, we are really quite similar. Job creation, economic concerns, debt, local government, and a desire for accountable leadership all hit a resonant cord for both communities.
Just as “All Politics is local” so I have found that “All Job creation is local.” You can’t open the paper or turn on the news and not find a discussion of the topic, so perhaps now is the time to put down the remote, fold up the paper, and stop with the finger pointing. How about a good dose of “roll up your own sleeves and get busy” instead?
In Jim Clifton’s article for the Gallup Management Journal this week, he writes that “fixing America’s problems with job creation can only be accomplished one city at a time.” Well, it that is the case, and then let us begin with our own town or towns.
Here in the North Jefferson area, we already have strong leadership in place. We may not see eye to eye, and we certainly may disagree on many topics and decisions, but that does not make our leadership weak. Clifton continues to state that “A natural order is already present, in governments and local business and philanthropic entities. Every city has strong, caring leaders working on numerous committees and initiatives to fuel their local economic growth -- let's call it the city GDP -- and to create good jobs. The feat these leaders have to pull off is doubling their entrepreneurial energy by aligning all their local forces.” That means we must stop looking at our neighboring cities as competitors, and start viewing them as allies.
In his words, “They succeed by declaring all-out war.” A war on job loss, a war on low workplace energy, on healthcare costs, on low graduation rates, on brain drain, and on community disengagement.” Those things destroy cities, destroy job growth, and destroy city GDP. Every city requires its own master plan that is as serious as planning for war.
I would add that this master plan, or community development plan, will only be affective if the leaders communicate the plan to the people of the city. It is equally important as well to embrace the success of your neighbors and help them to participate in the growth war. For certain, the last thing that you need is for an excelling city to be surrounded by declining cities.
Clifton goes on to point out that we should remember what Washington, and Government is about really. “In defense of Washington, it wasn't originally set up to be the nation's economic engine. The U.S. government has seeded whole industries through land grant universities, defense contractors, and scientific and medical researchers to name just a few. But the government has never, will never, nor should it be expected to ignite badly needed sustainable economic booms. These economic booms originate in the souls of individuals,” he writes.
How do you know if your city is on the right track for improving debt reduction and increasing jobs creation? If your city leadership is looking for more legislation, more stimulus and more (tax) money to solve your cities problem, and then you probably need to look for new city leadership first. Stop what you are doing if it does not create real, meaningful jobs. Clifton writes, “Everybody in charge of anything needs to focus on job creation. If they divert their attention, vote them out. Be ruthless. If the bike path doesn't have anything to do with job creation, there is no bike path. If rezoning improves the jobs outlook, rezone. This is what leadership should work on everyday, and it “should get city leaders up in the morning, what they should work on all day, and what should keep them from getting to sleep at night.”
As you move in to your week, think about how you work with your company, philanthropy or local government and if it is affectively working in tandem with surrounding communities. Every city needs a team of leaders that work well of course, but not in isolation. Your town I am certain is just like mine with multiple boards, committees and leadership appointments. Take a close look. Are they a reshuffle of the same stagnant minds without change for too many years? Or are you bringing in new thought leaders that learn from the old, but embrace the change of the new? Are you marching to the beat of the same old drum, or are you encouraged to at least on occasion ask for someone to change the station and say no to the same old song?
Just as “All Politics is local” so I have found that “All Job creation is local.” You can’t open the paper or turn on the news and not find a discussion of the topic, so perhaps now is the time to put down the remote, fold up the paper, and stop with the finger pointing. How about a good dose of “roll up your own sleeves and get busy” instead?
In Jim Clifton’s article for the Gallup Management Journal this week, he writes that “fixing America’s problems with job creation can only be accomplished one city at a time.” Well, it that is the case, and then let us begin with our own town or towns.
Here in the North Jefferson area, we already have strong leadership in place. We may not see eye to eye, and we certainly may disagree on many topics and decisions, but that does not make our leadership weak. Clifton continues to state that “A natural order is already present, in governments and local business and philanthropic entities. Every city has strong, caring leaders working on numerous committees and initiatives to fuel their local economic growth -- let's call it the city GDP -- and to create good jobs. The feat these leaders have to pull off is doubling their entrepreneurial energy by aligning all their local forces.” That means we must stop looking at our neighboring cities as competitors, and start viewing them as allies.
In his words, “They succeed by declaring all-out war.” A war on job loss, a war on low workplace energy, on healthcare costs, on low graduation rates, on brain drain, and on community disengagement.” Those things destroy cities, destroy job growth, and destroy city GDP. Every city requires its own master plan that is as serious as planning for war.
I would add that this master plan, or community development plan, will only be affective if the leaders communicate the plan to the people of the city. It is equally important as well to embrace the success of your neighbors and help them to participate in the growth war. For certain, the last thing that you need is for an excelling city to be surrounded by declining cities.
Clifton goes on to point out that we should remember what Washington, and Government is about really. “In defense of Washington, it wasn't originally set up to be the nation's economic engine. The U.S. government has seeded whole industries through land grant universities, defense contractors, and scientific and medical researchers to name just a few. But the government has never, will never, nor should it be expected to ignite badly needed sustainable economic booms. These economic booms originate in the souls of individuals,” he writes.
How do you know if your city is on the right track for improving debt reduction and increasing jobs creation? If your city leadership is looking for more legislation, more stimulus and more (tax) money to solve your cities problem, and then you probably need to look for new city leadership first. Stop what you are doing if it does not create real, meaningful jobs. Clifton writes, “Everybody in charge of anything needs to focus on job creation. If they divert their attention, vote them out. Be ruthless. If the bike path doesn't have anything to do with job creation, there is no bike path. If rezoning improves the jobs outlook, rezone. This is what leadership should work on everyday, and it “should get city leaders up in the morning, what they should work on all day, and what should keep them from getting to sleep at night.”
As you move in to your week, think about how you work with your company, philanthropy or local government and if it is affectively working in tandem with surrounding communities. Every city needs a team of leaders that work well of course, but not in isolation. Your town I am certain is just like mine with multiple boards, committees and leadership appointments. Take a close look. Are they a reshuffle of the same stagnant minds without change for too many years? Or are you bringing in new thought leaders that learn from the old, but embrace the change of the new? Are you marching to the beat of the same old drum, or are you encouraged to at least on occasion ask for someone to change the station and say no to the same old song?
Monday, October 10, 2011
Management vs. Leadership
Management vs. Leadership. Is there a difference? Managers focus on processes, leaders however take the special role of, well, leading. Leading people. Having a vision. Making the hard calls, and sticking through tough times.
In that vein, I came upon information this week on the Kaufmann Foundation. The Ewing Marion Kauffman Foundation is often referred to as one of the largest foundations in the United States—or as the world's largest foundation devoted to entrepreneurship. What strikes me as particularly relevant to our area is the idea of the Tug Boat leverage philosophy that comparatively small organizations like the Kaufmann have accomplished. According to the mission of this organization, which keeps the noted company of the Bill and Melinda Gates Foundation, is the idea of the small leading the many. Some of us work at massive organizations striding forth to remake the world, but many pull from a talented few people engaging with many, many others to make a difference together. You get the image of this giant ocean liner being pushed along by the seemingly tiny tugboat.
So where is your fit for this leadership mind set? I did a bit of searching to take a deeper look at this idea of Tug Boat Leadership and I came upon the writings of Geoffery Webb and his site called Leading on Purpose.
Webb has a few suggestions for us to consider on leading intentionally.
1. Small moves have big impacts. Unless absolutely needed, tugs don’t over-steer their vessels with dramatic movements. A little here and a little there is all it takes. Likewise leaders should be looking ahead, anticipating changes, and responding with strong, small moves to set their organizations on their best course. We see this in organizations with low attrition rates where they take the loss of an employee personally. Companies stay competitive when they take the time to retrain employees and keep that “Corporate Memory” in house and not lose it to another organization. Retraining and reinvesting in employees can go a long way to rebuilding the loss of loyalty that is so pandemic today.
2. There’s no autopilot. Many leaders seek to find a comfortable status quo, a place of rest where they can sit back and relax. There is no autopilot for a tugboat—or for a leader. Guiding an organization through ever-changing environments takes constant vigilance. The moment you think you’ve “figured it out” is the when you—and your organization—are most at risk. Your company or team needs constant tending, and keeping a strong focus on your mission is critical. Plunge head first into change and make it happen. Or as Winston Churchill said, “To improve is to change; to be perfect is to change often.”
3. It’s not about you. Tugs know that they exist to serve a purpose. Their job is to safely move vessels weighing thousands of tons through challenging waterways. Ultimately, as a leader, it’s not about you either. It’s about moving your organization, your employees, your customers, your clients safely through the hazards around them. Now that is a “Gee Whiz” concept for many leaders who forget that the job is to help the team. The job is to grow the city, build the company, and never once take the credit. Think it is all about you do ya’? Well how affective will you be when you are the only one standing on the field in the uniform?
Take some time to think about how you are doing as a leader, or a manager, as these two roles are really hard to separate. And remember, take care of your customers or someone else will.
In that vein, I came upon information this week on the Kaufmann Foundation. The Ewing Marion Kauffman Foundation is often referred to as one of the largest foundations in the United States—or as the world's largest foundation devoted to entrepreneurship. What strikes me as particularly relevant to our area is the idea of the Tug Boat leverage philosophy that comparatively small organizations like the Kaufmann have accomplished. According to the mission of this organization, which keeps the noted company of the Bill and Melinda Gates Foundation, is the idea of the small leading the many. Some of us work at massive organizations striding forth to remake the world, but many pull from a talented few people engaging with many, many others to make a difference together. You get the image of this giant ocean liner being pushed along by the seemingly tiny tugboat.
So where is your fit for this leadership mind set? I did a bit of searching to take a deeper look at this idea of Tug Boat Leadership and I came upon the writings of Geoffery Webb and his site called Leading on Purpose.
Webb has a few suggestions for us to consider on leading intentionally.
1. Small moves have big impacts. Unless absolutely needed, tugs don’t over-steer their vessels with dramatic movements. A little here and a little there is all it takes. Likewise leaders should be looking ahead, anticipating changes, and responding with strong, small moves to set their organizations on their best course. We see this in organizations with low attrition rates where they take the loss of an employee personally. Companies stay competitive when they take the time to retrain employees and keep that “Corporate Memory” in house and not lose it to another organization. Retraining and reinvesting in employees can go a long way to rebuilding the loss of loyalty that is so pandemic today.
2. There’s no autopilot. Many leaders seek to find a comfortable status quo, a place of rest where they can sit back and relax. There is no autopilot for a tugboat—or for a leader. Guiding an organization through ever-changing environments takes constant vigilance. The moment you think you’ve “figured it out” is the when you—and your organization—are most at risk. Your company or team needs constant tending, and keeping a strong focus on your mission is critical. Plunge head first into change and make it happen. Or as Winston Churchill said, “To improve is to change; to be perfect is to change often.”
3. It’s not about you. Tugs know that they exist to serve a purpose. Their job is to safely move vessels weighing thousands of tons through challenging waterways. Ultimately, as a leader, it’s not about you either. It’s about moving your organization, your employees, your customers, your clients safely through the hazards around them. Now that is a “Gee Whiz” concept for many leaders who forget that the job is to help the team. The job is to grow the city, build the company, and never once take the credit. Think it is all about you do ya’? Well how affective will you be when you are the only one standing on the field in the uniform?
Take some time to think about how you are doing as a leader, or a manager, as these two roles are really hard to separate. And remember, take care of your customers or someone else will.
Wednesday, September 28, 2011
AdVISE: Northern Beltline/ I422 and Growth for the North J...
AdVISE: Northern Beltline/ I422 and Growth for the North J...: The Alabama Department of Transportation (ALDOT) has scheduled two public hearings to allow the public to be heard on the issue of the North...
Northern Beltline/ I422 and Growth for the North Jefferson Area
The Alabama Department of Transportation (ALDOT) has scheduled two public hearings to allow the public to be heard on the issue of the Northern Beltline.
This important public meeting is for just that, The Public. This is your time to speak publically on your opinions and to become fully informed on the information to date surrounding this important regional project. In advance of the meeting please seek out information by visiting the dedicated website of www.finish422.org for more insight.
As we have discussed here before, the idea of a beltline dates back to the 1960s. Through the unified voice of ALDOT and the Coalition for Regional Transportation progress on the Northern Beltline project is being made.
Paul Vercher is the Chairman of the Board for the Directors of the Coalition for Regional Transportation. Board members include Applied Research Center of Alabama, Birmingham Business Alliance, Brasfield & Gorrie,
Drummond Company, Energen/Alagasco, Greater Birmingham Association of Home Builders, Saiia Construction, Thompson Tractor, US Steel, and Vulcan Materials. Vercher works for US Steel and joined the company to fill the newly created role of manager-state governmental affairs and will manage the company's governmental affairs activities at the state and local levels in Alabama, Arkansas, Oklahoma and Texas.
There are dozens of official resolutions of support from our area to include Gardendale, Fultondale, Graysville, Adamsville, Brookside, Kimberly, Warrior, Tarrant, Morris and more. “These tangible signs of support are evidence of the broad and diverse coalition the Northern Beltline has garnered throughout our region,” said Vercher.
Like the economic and jobs growth spurred by I-459 in the southern and eastern parts of the Birmingham metropolitan area, I-422 (Northern Beltline) will do the same for the western and northern areas of Birmingham and Jefferson County according to their website.
And don’t forget I22, which we can all clearly see coming right along. This multi-level stack interchange is planned for the location between the current U.S. 31 Fultondale trumpet interchange at Exit 266 and 41st Street interchange at Exit 264. Upon completion of I22, Fultondale will be the only city other than Birmingham, Montgomery and Mobile to be served by more than one two-digit interstate highway (I-65 and I-22).
Ask your questions. Get your facts. Understand what this means not just to our area, but to you.
This important public meeting is for just that, The Public. This is your time to speak publically on your opinions and to become fully informed on the information to date surrounding this important regional project. In advance of the meeting please seek out information by visiting the dedicated website of www.finish422.org for more insight.
As we have discussed here before, the idea of a beltline dates back to the 1960s. Through the unified voice of ALDOT and the Coalition for Regional Transportation progress on the Northern Beltline project is being made.
Paul Vercher is the Chairman of the Board for the Directors of the Coalition for Regional Transportation. Board members include Applied Research Center of Alabama, Birmingham Business Alliance, Brasfield & Gorrie,
Drummond Company, Energen/Alagasco, Greater Birmingham Association of Home Builders, Saiia Construction, Thompson Tractor, US Steel, and Vulcan Materials. Vercher works for US Steel and joined the company to fill the newly created role of manager-state governmental affairs and will manage the company's governmental affairs activities at the state and local levels in Alabama, Arkansas, Oklahoma and Texas.
There are dozens of official resolutions of support from our area to include Gardendale, Fultondale, Graysville, Adamsville, Brookside, Kimberly, Warrior, Tarrant, Morris and more. “These tangible signs of support are evidence of the broad and diverse coalition the Northern Beltline has garnered throughout our region,” said Vercher.
Like the economic and jobs growth spurred by I-459 in the southern and eastern parts of the Birmingham metropolitan area, I-422 (Northern Beltline) will do the same for the western and northern areas of Birmingham and Jefferson County according to their website.
And don’t forget I22, which we can all clearly see coming right along. This multi-level stack interchange is planned for the location between the current U.S. 31 Fultondale trumpet interchange at Exit 266 and 41st Street interchange at Exit 264. Upon completion of I22, Fultondale will be the only city other than Birmingham, Montgomery and Mobile to be served by more than one two-digit interstate highway (I-65 and I-22).
Ask your questions. Get your facts. Understand what this means not just to our area, but to you.
Thursday, September 8, 2011
Pro-Business: Real or Rhetoric?
Question: What does it mean to be Pro-Business? After all, business no longer simply means factory. Do you mean pro educated work force or do you mean pro-labor? Do you mean short term profit or long term growth? Newly appointed Alabama Development Office Director, Greg Canfield, put the question to his BCA audience. BCA members, Chamber of Commerce leadership, and Legislators met at the recent BCA Committee Days held in Prattville this week. In his words, Canfield expressed Pro-Business as job creation, pro-education, and pro-community development. In his words, Pro-Business is fostered in the self-reliant environment that drives to the full limit of ability.
Appointed by Governor Bentley, Canfield states his new role to be a “welcomed opportunity.” Canfield expressed his passion for his new role, but also his willingness to “give some thought to what I am doing.” Alabama is viewed as a national leader in more than just athletics according to Canfield. The Alabama reputation for economic recruitment is recognized, but the challenge continues to be advancement in this significant arena and to continue to become better and better making the “wheel turn better” in his words. Canfield expressed the need to create successful processes for economic recruitment and job creation which in turn will lead to successful partnerships.
Improvement of the process will come only with a strong team, and Canfield stated his commitment to thoughtful leadership. His is the only state office charged with job creation and leading of industry to the state. Important work certainly, and done well, will place Alabama as a leader not just regionally but in the nation. Governor Bentley shares the passion of Mr. Canfield, and job creation is priority number one. Pro-education and pro-community development are critical success factors for job creation as benchmarks are set to push through the standards of building a valued and educated work force.
Beginning with the end in mind, Canfield charged that “Alabama should determine her own future.” Work toward making this a reality has begun with Alabama Development Office project activity up 12.8%. Mr. Canfield views the work at hand as that of a sales organization, built on relationships and managed by a seasoned team of project managers.
Stating with clear confidence to the BCA attendees, Mr. Canfield challenged his office to “surround our self with excellence.” And, refreshing to hear, “The Buck stops here.”
Moving in to 2012 and beyond we will watch expectantly for the work outcomes of Mr. Canfield and his team. In his words, “it is all about the preparation. This is Alabama. We are use to being champions. But, we get there because we work hard and smart.”
Casting a vision for the future is critical to any foundational leadership. Patience and a willingness to thoughtfully lead will insure that the right things are done at the right time. I asked, “How will we get there?” With his ever confident smile, his answer was, “One Day at a Time.”
Appointed by Governor Bentley, Canfield states his new role to be a “welcomed opportunity.” Canfield expressed his passion for his new role, but also his willingness to “give some thought to what I am doing.” Alabama is viewed as a national leader in more than just athletics according to Canfield. The Alabama reputation for economic recruitment is recognized, but the challenge continues to be advancement in this significant arena and to continue to become better and better making the “wheel turn better” in his words. Canfield expressed the need to create successful processes for economic recruitment and job creation which in turn will lead to successful partnerships.
Improvement of the process will come only with a strong team, and Canfield stated his commitment to thoughtful leadership. His is the only state office charged with job creation and leading of industry to the state. Important work certainly, and done well, will place Alabama as a leader not just regionally but in the nation. Governor Bentley shares the passion of Mr. Canfield, and job creation is priority number one. Pro-education and pro-community development are critical success factors for job creation as benchmarks are set to push through the standards of building a valued and educated work force.
Beginning with the end in mind, Canfield charged that “Alabama should determine her own future.” Work toward making this a reality has begun with Alabama Development Office project activity up 12.8%. Mr. Canfield views the work at hand as that of a sales organization, built on relationships and managed by a seasoned team of project managers.
Stating with clear confidence to the BCA attendees, Mr. Canfield challenged his office to “surround our self with excellence.” And, refreshing to hear, “The Buck stops here.”
Moving in to 2012 and beyond we will watch expectantly for the work outcomes of Mr. Canfield and his team. In his words, “it is all about the preparation. This is Alabama. We are use to being champions. But, we get there because we work hard and smart.”
Casting a vision for the future is critical to any foundational leadership. Patience and a willingness to thoughtfully lead will insure that the right things are done at the right time. I asked, “How will we get there?” With his ever confident smile, his answer was, “One Day at a Time.”
Thursday, August 18, 2011
Business Council of Alabama, Governmental Affairs and General Stan McChrystal on Leadership
A chain is only as strong as its weakest link. This proverb which is credited to Thomas Reid in the 18th century is echoed again in the lecture on Leadership given by General Stan McChrystal at the recent Governmental Affairs conference weekend sponsored by the Business Council of Alabama. General McChrystal calls it Plywood Leadership. Referencing his team in combat, he discusses that like plywood, each man or woman is not that unique, but together as a team they are like the plywood used to build just about anything. Plywood, like his combat team, is quick to build with, agile to change, easy to fit to a need and focused on a purpose.
One thing is certainly true about our BCA leaders, they always create a strong venue for introspection for our government leadership at this conference and this year was no exception. With leadership from both sides of the political aisle present, as well as multiple Chambers of Commerce, the Birmingham Business Alliance and the Business Council of Alabama leadership in attendance, this meeting has for me been both insightful and motivating as I seek to learn more about what “good really looks like” in terms of civic, political and community leadership.
As the former Commander of U.S. and International Forces in Afghanistan
General McChrystal has received wide praise for creating a revolution in warfare that fused intelligence and operations. A four-star general, he is the former leader of Joint Special Operations Command (JSOC) which oversees the military’s most sensitive forces.
As the key note speaker for this event, McChrystal began by quickly connecting with our Alabama pulse. He commented on the importance of a Right To Work state, which Alabama is, taking ownership and responsibility for appropriately training the work force and the leadership that is needed to get you there. But taking the thought further, he emphasized not just the value of Leadership, but the real role of leaders at the heart of that leadership. “We all look to leaders, we all believe in our leaders, but what type of leader do I want to be?” he challenged. Whether at a personal level at home, in your business or if running a country, the organization will be what the leader makes of it. He reminded the group that winning is not an accident, and you will not win just because you have “right” on your side. Taking risk as a leader does not guarantee success, and with his military experience near at hand, I trust he knows this to be true and real.
He reminds us to “listen to our team.” Why? Because that is where your success will rise from of course. You will succeed or fail based on the people with which you surround yourself. It isn’t just how the leader responds, but how the goal and directives are communicated to the team that will execute the plan that matters the most. How does the team feel about the challenge? Do they have enough information to execute the plan? What do you LOSE by not sharing information and communicating at all levels? You may in fact lose more than you expect. In my world growing up as an Army Brat, we called it “winning the battle” but losing the war. The message here is don’t give up the long term goal for some insignificant short term win that satisfies a personal need for ego, status, prestige, money or glory. You may walk away with that, but nothing else, and in business where is the win in that?
According to McChrystal leaders are relentless in their focus. They are fearless and welcome the new experience. A leader does not fear change. A leader builds trust. A leader communicates goal and intent, not individual decisions. Ask yourself this: Am I surrounded by a leadership team that will carry on without me because they know what their job is and what the goal is? Or am I surrounded by minions waiting for their next directive because they can’t think or act alone? Ask yourself: Who would I turn my back on?
As you move into your week this week, spend some time thinking on your own leadership. Who do you follow? Who follows you? In fact, according to McChrystal, the purpose of the leader is to solve problems, and to do so with humility. A leader will recognize that change is difficult, but change anyway. A leader knows at his or her core that leadership is a human problem, not one of tasks.
Uncommon times need uncommon leadership, and I learned a great deal listening to the General. How often do you hear a leader speak of morale and purpose? He asked: Where is your soul? A team needs a leader that will create not just a relationship but a creed, not just a belief, but a purpose.
One thing is certainly true about our BCA leaders, they always create a strong venue for introspection for our government leadership at this conference and this year was no exception. With leadership from both sides of the political aisle present, as well as multiple Chambers of Commerce, the Birmingham Business Alliance and the Business Council of Alabama leadership in attendance, this meeting has for me been both insightful and motivating as I seek to learn more about what “good really looks like” in terms of civic, political and community leadership.
As the former Commander of U.S. and International Forces in Afghanistan
General McChrystal has received wide praise for creating a revolution in warfare that fused intelligence and operations. A four-star general, he is the former leader of Joint Special Operations Command (JSOC) which oversees the military’s most sensitive forces.
As the key note speaker for this event, McChrystal began by quickly connecting with our Alabama pulse. He commented on the importance of a Right To Work state, which Alabama is, taking ownership and responsibility for appropriately training the work force and the leadership that is needed to get you there. But taking the thought further, he emphasized not just the value of Leadership, but the real role of leaders at the heart of that leadership. “We all look to leaders, we all believe in our leaders, but what type of leader do I want to be?” he challenged. Whether at a personal level at home, in your business or if running a country, the organization will be what the leader makes of it. He reminded the group that winning is not an accident, and you will not win just because you have “right” on your side. Taking risk as a leader does not guarantee success, and with his military experience near at hand, I trust he knows this to be true and real.
He reminds us to “listen to our team.” Why? Because that is where your success will rise from of course. You will succeed or fail based on the people with which you surround yourself. It isn’t just how the leader responds, but how the goal and directives are communicated to the team that will execute the plan that matters the most. How does the team feel about the challenge? Do they have enough information to execute the plan? What do you LOSE by not sharing information and communicating at all levels? You may in fact lose more than you expect. In my world growing up as an Army Brat, we called it “winning the battle” but losing the war. The message here is don’t give up the long term goal for some insignificant short term win that satisfies a personal need for ego, status, prestige, money or glory. You may walk away with that, but nothing else, and in business where is the win in that?
According to McChrystal leaders are relentless in their focus. They are fearless and welcome the new experience. A leader does not fear change. A leader builds trust. A leader communicates goal and intent, not individual decisions. Ask yourself this: Am I surrounded by a leadership team that will carry on without me because they know what their job is and what the goal is? Or am I surrounded by minions waiting for their next directive because they can’t think or act alone? Ask yourself: Who would I turn my back on?
As you move into your week this week, spend some time thinking on your own leadership. Who do you follow? Who follows you? In fact, according to McChrystal, the purpose of the leader is to solve problems, and to do so with humility. A leader will recognize that change is difficult, but change anyway. A leader knows at his or her core that leadership is a human problem, not one of tasks.
Uncommon times need uncommon leadership, and I learned a great deal listening to the General. How often do you hear a leader speak of morale and purpose? He asked: Where is your soul? A team needs a leader that will create not just a relationship but a creed, not just a belief, but a purpose.
Thursday, July 28, 2011
Alabama and Trade with China
With a population of more than 1.3 billion people, a rapidly growing urban middle class, and an economy poised to dominate the world, China is an attractive consumer marketplace for American companies. The Chinese market is a world of potential and Alabama is joining the many that are looking East.
According to Business Alabama (7/11) China jumped last year to second place among Alabama’s world export markets, with 142 percent year-to-year growth in 2010. China also tops of the list of countries importing Alabama chemicals bringing in $554 million. This is topped further by the transportation equipment import category that includes Alabama cars. China imported $579 million worth last year. China is an important destination for export goods shipped through the Port of Mobile such as grain, coal and forest products.
Selling to China is not always easy. Many Chinese workers make no more than $3,500 in wages in an entire year. It may take a third of a year salary to purchase a sofa. However, China does have a rising middle and elite class. There are cultural issues as well as monetary issues affecting how the Chinese buy. There is a concern about products that are real, and there is a desire to want to go to the store to touch a product and see what they’re purchasing.
Adding to the frustration is the fact that many Chinese consumers don’t have credit cards and are distrustful of online-payment systems. As people buy more online, they’ll begin to understand that they have consumer protections. But, it will take time.
George Haley, University of New Haven professor and author of The Chinese Tao of Business: The Logic of Successful Business Strategy, writes concerning a culture clash when it comes to customer service. “The Chinese have become extremely demanding consumers, and service is something that they absolutely demand to a much greater standard than American consumers,” he says. He believes it will be essential for companies to maintain inventory so that it can guarantee delivery times, or risk customer backlash. He also says, “the Chinese consumer is extremely brand-conscious.” Well named brands and luxury items are important here. The promotion of low cost is not always a selling point.
The Chinese market is transforming trade in one of Alabama’s most traditional agricultural markets. As written in Business Alabama, and according to state pecan expert Bill Goff, China trade is “the biggest thing to ever to happen to the pecan industry.” China’s pecan imports went from 2 million to 83 million almost overnight. For years the Chinese have eaten walnuts for their health, and they have now discovered that pecans can promote longevity and are even better for you. In a country where age is revered, that is key. Add in the rising affluence of the Chinese middle class, a favorable exchange rate, and things just snowballed.
Foreign direct investment is important to Alabama’s economy. Consider the jobs created by Germany, Japan and Korea for our state. Looking at trade with China? Don’t tread in without good support. Director of International Trade for the Alabama Development Office, Hilda Lockhart, recommends the Confucius Institute at Troy University. It is a great place for Alabamians to learn about Chinese life, customs and industry. There are resources with ADO as well as Chamber of Commerce based initiatives and the US Department of Commerce.
According to Business Alabama (7/11) China jumped last year to second place among Alabama’s world export markets, with 142 percent year-to-year growth in 2010. China also tops of the list of countries importing Alabama chemicals bringing in $554 million. This is topped further by the transportation equipment import category that includes Alabama cars. China imported $579 million worth last year. China is an important destination for export goods shipped through the Port of Mobile such as grain, coal and forest products.
Selling to China is not always easy. Many Chinese workers make no more than $3,500 in wages in an entire year. It may take a third of a year salary to purchase a sofa. However, China does have a rising middle and elite class. There are cultural issues as well as monetary issues affecting how the Chinese buy. There is a concern about products that are real, and there is a desire to want to go to the store to touch a product and see what they’re purchasing.
Adding to the frustration is the fact that many Chinese consumers don’t have credit cards and are distrustful of online-payment systems. As people buy more online, they’ll begin to understand that they have consumer protections. But, it will take time.
George Haley, University of New Haven professor and author of The Chinese Tao of Business: The Logic of Successful Business Strategy, writes concerning a culture clash when it comes to customer service. “The Chinese have become extremely demanding consumers, and service is something that they absolutely demand to a much greater standard than American consumers,” he says. He believes it will be essential for companies to maintain inventory so that it can guarantee delivery times, or risk customer backlash. He also says, “the Chinese consumer is extremely brand-conscious.” Well named brands and luxury items are important here. The promotion of low cost is not always a selling point.
The Chinese market is transforming trade in one of Alabama’s most traditional agricultural markets. As written in Business Alabama, and according to state pecan expert Bill Goff, China trade is “the biggest thing to ever to happen to the pecan industry.” China’s pecan imports went from 2 million to 83 million almost overnight. For years the Chinese have eaten walnuts for their health, and they have now discovered that pecans can promote longevity and are even better for you. In a country where age is revered, that is key. Add in the rising affluence of the Chinese middle class, a favorable exchange rate, and things just snowballed.
Foreign direct investment is important to Alabama’s economy. Consider the jobs created by Germany, Japan and Korea for our state. Looking at trade with China? Don’t tread in without good support. Director of International Trade for the Alabama Development Office, Hilda Lockhart, recommends the Confucius Institute at Troy University. It is a great place for Alabamians to learn about Chinese life, customs and industry. There are resources with ADO as well as Chamber of Commerce based initiatives and the US Department of Commerce.
Sunday, July 10, 2011
Employment Trends and The First Half of 2011 Invested
The first half of 2011 is in the bag. I must have blinked because it has just flown by and let’s take a look at where we are. There is worry about how Greece and several other European nations will handle their debt problems, and signs of weakness for our own economy. There are continued concerns that China's economy, the world's second-largest and crucial to the commodity markets, is slowing. Even risky and speculative gold investments have hit a slide declining 5 weeks running for the first time in years. I suppose at the end of the day there is a difference between an economy not sprinting forward and one that's going backward. I suppose the good news is that we are at least walking forward.
Unemployment is still hovering a bit over 9%, and there are a few interesting trends to be found in the work place. The rash of downsizing as companies worked to protect their margins and reduce operational costs has left a mixed bag of workers. Some retained workers are certainly glad to have a job, while others are struggling to find balance and meaning in their new roles. Many retained workers still are rolling from the “fruit basket toss up” and let’s work with what falls out mentality. According to a recent survey by Mercer LLC (WSJ 7/1), one in three U.S. workers say they are seriously considering leaving their employers. It seems that most are young workers with 80% of them 34 and younger. This is particularly troubling for small business which is normally limited in size, and the weak economy has forced many in recent years to downsize to even lower levels.
In a move to retain talent, many companies are looking at reinstating perks that may have been dropped along with employees during the downsizing moves. Reinstatement of 401K and a match as well as merit based bonuses are seen as key retention tools. Other perks deemed highly effective for retention include vacation and personal time, wellness-related benefits, flexible schedules, tuition reimbursement and telecommuting.
But not everyone is looking at leaving, or asking for more perks. Some are trudging off in an entirely different direction. Faced with bruised nest eggs and high unemployment rates, older Americans are becoming entrepreneurs.
According to the nonprofit Ewing Marion Kauffman Foundation (WSJ 7/1/11), individuals between the ages of 54 and 64 represented 1 in 5 launched businesses in 2010, suggesting the United States might be on the cusp of an entrepreneurship boom not in spite of an aging population but because of it. Apparently you do not need to be a 20 something young tech genius, just a calculating risk taker.
Of course starting a new business is not for the faint of heart with a failure rate as high as 90%, and most new businesses taking 5 years to break even or turn a profit.
Whether you stay, go or start off on your own, it is important to enjoy your work life. For most of us, it does consume 40 to 80 hours of our week, so we should work to make it count. It has been suggested to separate the demands of work from your own expectations of yourself. No matter where you are in your career path take the time to be aware of your goals, be they career advancement, work life balance or otherwise. Carving out for yourself a less formal and more goal-oriented workplace with the help of your boss or manager may be just the ticket to keeping you right where you are. People are more productive and happy when they have creative freedom and autonomy to get things done.
As you move into your work week next week, remember, take care of your customers (and I will add your employees) or someone else will.
Unemployment is still hovering a bit over 9%, and there are a few interesting trends to be found in the work place. The rash of downsizing as companies worked to protect their margins and reduce operational costs has left a mixed bag of workers. Some retained workers are certainly glad to have a job, while others are struggling to find balance and meaning in their new roles. Many retained workers still are rolling from the “fruit basket toss up” and let’s work with what falls out mentality. According to a recent survey by Mercer LLC (WSJ 7/1), one in three U.S. workers say they are seriously considering leaving their employers. It seems that most are young workers with 80% of them 34 and younger. This is particularly troubling for small business which is normally limited in size, and the weak economy has forced many in recent years to downsize to even lower levels.
In a move to retain talent, many companies are looking at reinstating perks that may have been dropped along with employees during the downsizing moves. Reinstatement of 401K and a match as well as merit based bonuses are seen as key retention tools. Other perks deemed highly effective for retention include vacation and personal time, wellness-related benefits, flexible schedules, tuition reimbursement and telecommuting.
But not everyone is looking at leaving, or asking for more perks. Some are trudging off in an entirely different direction. Faced with bruised nest eggs and high unemployment rates, older Americans are becoming entrepreneurs.
According to the nonprofit Ewing Marion Kauffman Foundation (WSJ 7/1/11), individuals between the ages of 54 and 64 represented 1 in 5 launched businesses in 2010, suggesting the United States might be on the cusp of an entrepreneurship boom not in spite of an aging population but because of it. Apparently you do not need to be a 20 something young tech genius, just a calculating risk taker.
Of course starting a new business is not for the faint of heart with a failure rate as high as 90%, and most new businesses taking 5 years to break even or turn a profit.
Whether you stay, go or start off on your own, it is important to enjoy your work life. For most of us, it does consume 40 to 80 hours of our week, so we should work to make it count. It has been suggested to separate the demands of work from your own expectations of yourself. No matter where you are in your career path take the time to be aware of your goals, be they career advancement, work life balance or otherwise. Carving out for yourself a less formal and more goal-oriented workplace with the help of your boss or manager may be just the ticket to keeping you right where you are. People are more productive and happy when they have creative freedom and autonomy to get things done.
As you move into your work week next week, remember, take care of your customers (and I will add your employees) or someone else will.
Thursday, June 23, 2011
City Leadership 101
City Council Leaders this one is for you. As we stand on the cusp of continued development here in the North Jefferson area, I would like to offer sincere and heartfelt congratulations to all who hold an elected position in our community. Now get busy.
We have discussed here before that when accepting an appointment to be on a board or agreeing to hold membership on a council as an elected official is not the time for a Cinderella appointment or a full blown exhibition of the Peter Principle. It is indeed a privilege and one that should be approached with strength and humility. The challenge here is to realize that all goals and jobs come with training and this role is not any different. Please seek out tools to help you understand how to do this job at a very high level, and to grow in the value that you bring.
You will be under scrutiny, but that is not a bad thing. Think of scrutiny as a fancy word for campaigning and holding people to account for what they said or should be doing. You are of course representatives of the people to the town hall. You are not representatives of the town hall to the people.
And of course, no one will tell you what to do, but they will blame you when something does not get done. Previous New York Mayor Rudolph Giuliani put it best when he said, “Give me a leader whose nose has been bloodied over someone who is totally perfect.”
Sometimes, you may be told what to do, but beware the snare of “consensus” thinking. According to Margaret Thatcher, “Consensus is the negation of leadership.” Most think this fine lady knows what she is talking about still. Even President Ronald Reagan took the time to listen to her.
Your purpose is to not do things to people, as it is to engage people in the change. It can be seen in something as fundamental as a Community Development Plan. Did the plan come from some educated and high advised third party? Is it dusty and twenty years old? That may be fine, but it will only be effective if the city leaders get buy-in from the community. Simply put, take the time to ask. This means recognizing that people are the heart of directing resources and making decisions, therefore people, rather than strategies or theories should be at the heart of transforming outcomes in a place.
As our North Jefferson area continues to grow and develop, we cannot take for granted what it will look like in twenty years. As Freud would say, there are no accidents. There are also many political realities to continue to simmer and ponder upon as we move into the next election cycle. Mr. Councilman, do you have a succession plan? Ms. Council Woman how will you control the change? And can you both recognize the talent that you will need to end up where you aim? Groucho Marx said it well when he quipped, “Only one man in 1,000 is a Leader of men, and the other 999 follow a woman.”
We have discussed here before that when accepting an appointment to be on a board or agreeing to hold membership on a council as an elected official is not the time for a Cinderella appointment or a full blown exhibition of the Peter Principle. It is indeed a privilege and one that should be approached with strength and humility. The challenge here is to realize that all goals and jobs come with training and this role is not any different. Please seek out tools to help you understand how to do this job at a very high level, and to grow in the value that you bring.
You will be under scrutiny, but that is not a bad thing. Think of scrutiny as a fancy word for campaigning and holding people to account for what they said or should be doing. You are of course representatives of the people to the town hall. You are not representatives of the town hall to the people.
And of course, no one will tell you what to do, but they will blame you when something does not get done. Previous New York Mayor Rudolph Giuliani put it best when he said, “Give me a leader whose nose has been bloodied over someone who is totally perfect.”
Sometimes, you may be told what to do, but beware the snare of “consensus” thinking. According to Margaret Thatcher, “Consensus is the negation of leadership.” Most think this fine lady knows what she is talking about still. Even President Ronald Reagan took the time to listen to her.
Your purpose is to not do things to people, as it is to engage people in the change. It can be seen in something as fundamental as a Community Development Plan. Did the plan come from some educated and high advised third party? Is it dusty and twenty years old? That may be fine, but it will only be effective if the city leaders get buy-in from the community. Simply put, take the time to ask. This means recognizing that people are the heart of directing resources and making decisions, therefore people, rather than strategies or theories should be at the heart of transforming outcomes in a place.
As our North Jefferson area continues to grow and develop, we cannot take for granted what it will look like in twenty years. As Freud would say, there are no accidents. There are also many political realities to continue to simmer and ponder upon as we move into the next election cycle. Mr. Councilman, do you have a succession plan? Ms. Council Woman how will you control the change? And can you both recognize the talent that you will need to end up where you aim? Groucho Marx said it well when he quipped, “Only one man in 1,000 is a Leader of men, and the other 999 follow a woman.”
Creating Value and Trust
You do not have to look far here in the North Jefferson Area to find plenty of post Tornado recovery work. Now would be a good time to assess where the recovery falls with respect to the formal Comprehensive Development plans that exist. A bit troubling may be the realization that those plans are several years, and in many cases decades old, and have never been revisited or revamped. Now is a perfect time to take an assessment of those Comprehensive Development Plans and view them in light of the community mission and vision. Indeed, if you don’t know what you are aiming for, then you may hit just about anything. All of this plays into the ideas of your brand, your image, and ultimately how you are perceived by your customers. Or in the case of a city, or the entire North Jefferson area, how the growth, recovery and stability are viewed by local citizens and outside supporters. Is our leadership trusted? Do we have a credible and believable reputation?
Not long ago, trust and reputation was the domain of the public relations department. Marketing concerned itself with spending huge sums to maintain "share of voice" which is marketing speak for outspending rivals to drive brand awareness and endlessly reminding consumers of the "unique selling proposition".
Now, marketers are waking up to an awareness that in the world of branding, trust is the most perishable of assets. Polling in recent months shows that increasing numbers of consumers distrust not just the obvious suspects—the banks, politicians, insurance—but business and corporations as a whole. The shift in sentiment is forcing companies from Ford Motor to American Express to tweak marketing and focus on rebuilding credibility. Trust is what drives profit margin and share price and it is what consumers are looking for and what they share with one another. In the arena of local government, reaching out to the community to inform them about not only meetings, but meeting content, results and plans is key as well.
The recovery plan, just as is the Comprehensive Development Plan, is pulled from a systematic planning process. It should be based on sound technical studies, it should facilitate community involvement, it should be open to continuous monitoring, and it should be periodically updated.
It is key that recovery look at not only zoning, but future land use. Please keep in mind that an expert in real estate or real estate law may not be the best expert in land use law, as the two are different skills and area of expertise.
Think about what this means for your city and community. Perhaps you find that old approaches don’t work as well as they used to for you. Don’t just blame it on the recession, job insecurity and hammered home values as to why business and political dynamics are changing.
Techniques and share of voice strategy are easily copied by your competition, but they can’t copy your reputation or recreate the trust that you own with your customers or constituents. Mercifully, you control that. It is yours to grow or loose.
As you move into your week, take a minute to think about what your community and customers expect from you or your product. If you miss the mark on expectations, no matter how well you do, you fail. This sets a poor outcome for trust, and really makes your job of creating a loyal customer more difficult. The old saying about under promising and over delivering really rings true here.
Not long ago, trust and reputation was the domain of the public relations department. Marketing concerned itself with spending huge sums to maintain "share of voice" which is marketing speak for outspending rivals to drive brand awareness and endlessly reminding consumers of the "unique selling proposition".
Now, marketers are waking up to an awareness that in the world of branding, trust is the most perishable of assets. Polling in recent months shows that increasing numbers of consumers distrust not just the obvious suspects—the banks, politicians, insurance—but business and corporations as a whole. The shift in sentiment is forcing companies from Ford Motor to American Express to tweak marketing and focus on rebuilding credibility. Trust is what drives profit margin and share price and it is what consumers are looking for and what they share with one another. In the arena of local government, reaching out to the community to inform them about not only meetings, but meeting content, results and plans is key as well.
The recovery plan, just as is the Comprehensive Development Plan, is pulled from a systematic planning process. It should be based on sound technical studies, it should facilitate community involvement, it should be open to continuous monitoring, and it should be periodically updated.
It is key that recovery look at not only zoning, but future land use. Please keep in mind that an expert in real estate or real estate law may not be the best expert in land use law, as the two are different skills and area of expertise.
Think about what this means for your city and community. Perhaps you find that old approaches don’t work as well as they used to for you. Don’t just blame it on the recession, job insecurity and hammered home values as to why business and political dynamics are changing.
Techniques and share of voice strategy are easily copied by your competition, but they can’t copy your reputation or recreate the trust that you own with your customers or constituents. Mercifully, you control that. It is yours to grow or loose.
As you move into your week, take a minute to think about what your community and customers expect from you or your product. If you miss the mark on expectations, no matter how well you do, you fail. This sets a poor outcome for trust, and really makes your job of creating a loyal customer more difficult. The old saying about under promising and over delivering really rings true here.
Wednesday, May 18, 2011
Value Creation and Keeping Customers
Getting and keeping customers is an expensive endeavor and keeping the doors open in a time of local crisis makes it even tougher. The average U. S. business loses half its customers in five years. Generating a new customer costs five times as much as keeping a current one and firms pay a steep price when customers stray to other brands, or stray to other communities to make their purchase. In a slow economy, creating unsurpassed value for a customer so that they stay with you is even more important. So how do we create value?
Value creation in a firm takes a minute to think about. Ask yourself this question: Why does an individual make a purchase? The short answer is to fill a need. But the real answer is found in what motivates a person to do something to fulfill that need.
Psychologist A. H. Maslow developed a theory that characterized needs and arranged them in a hierarchy to reflect their importance called Maslow’s Hierarchy of Needs. Maslow identified five levels of needs, beginning with physiological needs and progressing to the need for self-actualization.
Physiological needs are the most basic. They fulfill the needs for survival like food, water, shelter and clothing. Pepperidge Farm French Toast Swirl Bread appeals to this need by stating “It doesn’t go with breakfast. It is breakfast.” Campbell’s Soup hits the mark with “Mm, Mm, good!” as does, “Got Milk?” Food is the most basic of need and as we like to say here, “Full Stomach, Open Mind.”
Next up the ladder you find safety needs which include security, protection, and avoidance of the unexpected. State Farm Insurance appeals to this need by saying, “Like a good neighbor State Farm is there.” In the wake of our damage recovery, maintaining a sense of security in our communities is a key element of recovery. The presence of the National Guard as well as the local elevated sense of social responsibility has been a critical element of pulling us up by pulling us together.
Third are social and belongingness needs which include the need to be accepted by an individual or group. Think about Olive Garden and their tagline, “When you’re here, you’re family.” We also see this come alive with the wonderful belongingness and leadership given by our Churches to support our tornado relief efforts. Many of them continue to request anonymity in their efforts, but rest assured, we know who you are and we thank you!
Fourth is the esteem need such as a need for a sense of accomplishment, the need for respect from others and the need to perform better than others. This is a universal human trait that emerges after lower order needs are satisfied. This may present in the purchase made to upgrade an airline seat, to have premium concert tickets, or as Sony touts, “Like no other.” I have found myself reassessing how I view this for myself in the events of the past few weeks and those in our community. Even in tragedy, this need is still obvious all around. I am reminded of Shakespeare and Twelfth Night where we read that “some are born great, some achieve greatness, and some have greatness thrust upon them.” If you are a leader in your community, please remember that the best help may come from the least obvious place.
Lastly, and also the very top need, is self-actualization. This is the desire for a person to reach their full potential. Many educational tours appeal to this need with an appeal to a person’s talent or capabilities. It may include a trip that includes a course of study such as language, history or cooking. Nike’s famous “just do it” is right on the mark for reaching potential. Self-actualization appeals to the desire to experience and learn something new such as at GE where “we bring good things to life.” Or, it may appear as the nice neighbor that you really don’t know who shows up with his chainsaw to help clear some trees from your driveway. And he also offers to get you some water and a sandwich. How cool and inspiring is that!
Understanding how your product fills one of these needs, and fits into the experience desired by your customer will help you to understand how to motivate that customer to act on a purchase. In light of the damage to our communities and continued recovery, I am reminded that this is not just about products, but it is in fact also about US. It is about our elected officials, our churches, and all the elements of our community. It determines who we are and how we react when the chips are down.
Value creation in a firm takes a minute to think about. Ask yourself this question: Why does an individual make a purchase? The short answer is to fill a need. But the real answer is found in what motivates a person to do something to fulfill that need.
Psychologist A. H. Maslow developed a theory that characterized needs and arranged them in a hierarchy to reflect their importance called Maslow’s Hierarchy of Needs. Maslow identified five levels of needs, beginning with physiological needs and progressing to the need for self-actualization.
Physiological needs are the most basic. They fulfill the needs for survival like food, water, shelter and clothing. Pepperidge Farm French Toast Swirl Bread appeals to this need by stating “It doesn’t go with breakfast. It is breakfast.” Campbell’s Soup hits the mark with “Mm, Mm, good!” as does, “Got Milk?” Food is the most basic of need and as we like to say here, “Full Stomach, Open Mind.”
Next up the ladder you find safety needs which include security, protection, and avoidance of the unexpected. State Farm Insurance appeals to this need by saying, “Like a good neighbor State Farm is there.” In the wake of our damage recovery, maintaining a sense of security in our communities is a key element of recovery. The presence of the National Guard as well as the local elevated sense of social responsibility has been a critical element of pulling us up by pulling us together.
Third are social and belongingness needs which include the need to be accepted by an individual or group. Think about Olive Garden and their tagline, “When you’re here, you’re family.” We also see this come alive with the wonderful belongingness and leadership given by our Churches to support our tornado relief efforts. Many of them continue to request anonymity in their efforts, but rest assured, we know who you are and we thank you!
Fourth is the esteem need such as a need for a sense of accomplishment, the need for respect from others and the need to perform better than others. This is a universal human trait that emerges after lower order needs are satisfied. This may present in the purchase made to upgrade an airline seat, to have premium concert tickets, or as Sony touts, “Like no other.” I have found myself reassessing how I view this for myself in the events of the past few weeks and those in our community. Even in tragedy, this need is still obvious all around. I am reminded of Shakespeare and Twelfth Night where we read that “some are born great, some achieve greatness, and some have greatness thrust upon them.” If you are a leader in your community, please remember that the best help may come from the least obvious place.
Lastly, and also the very top need, is self-actualization. This is the desire for a person to reach their full potential. Many educational tours appeal to this need with an appeal to a person’s talent or capabilities. It may include a trip that includes a course of study such as language, history or cooking. Nike’s famous “just do it” is right on the mark for reaching potential. Self-actualization appeals to the desire to experience and learn something new such as at GE where “we bring good things to life.” Or, it may appear as the nice neighbor that you really don’t know who shows up with his chainsaw to help clear some trees from your driveway. And he also offers to get you some water and a sandwich. How cool and inspiring is that!
Understanding how your product fills one of these needs, and fits into the experience desired by your customer will help you to understand how to motivate that customer to act on a purchase. In light of the damage to our communities and continued recovery, I am reminded that this is not just about products, but it is in fact also about US. It is about our elected officials, our churches, and all the elements of our community. It determines who we are and how we react when the chips are down.
Monday, May 2, 2011
Business Disaster Preparation
We all know that “Hind Sight” is indeed “20/20”. We know it now more than ever here in the North Jefferson Business Community. As many in our area of digging out and moving on after this weeks devastating weather, it is never really too late to look at your emergency business disaster plan. In fact, now may be a great time to look at not only your business disaster preparation, but also the readiness of your church, your civic organization and of course your local municipality. Your employees and co-workers are your business's most important and valuable asset. Here are some procedures you can put in place before a disaster, but you should also learn about what people need to recover after a disaster.
It is possible that your staff will need time to ensure the well-being of their family members, but getting back to work is important to the personal recovery of people who have experienced disasters. It is important to re-establish routines, when possible.
Here are some tips to get you started or to improve your plan that may already be in place.
Two-way communication is critical before, during and after a disaster. You should include emergency preparedness information in newsletters, on company intranet, periodic employee emails and other internal communications tools. Consider setting up a telephone calling tree, a password-protected page on the company website, an email alert or a call-in voice recording to communicate with employees in an emergency. Designate an out-of-town phone number where employees can leave an "I'm Okay" message in a catastrophic disaster. It is good to provide all co-workers with wallet cards detailing instructions on how to get company information in an emergency situation. Include telephone numbers or Internet passwords for easy reference. Maintain open communications where co-workers are free to bring questions and concerns to company leadership. Also, talk to co-workers with disabilities. If you have employees with disabilities ask about what assistance is needed. People with disabilities typically know what assistance they will need in an emergency. Understand how to alert people who cannot hear an alarm or instructions.
It is recommended that you have both a battery-powered commercial radio and a weather radio with an alert function. The weather radio can alert you to weather emergencies or announcements from the Department of Homeland Security. The commercial radio is a good source for news and information from local authorities.
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, computer backups, emergency or law enforcement contact information and other priority documents in a waterproof, fireproof portable container. Store a second set of records at an off-site location.
Talk to your co-workers about what emergency supplies the company can feasibly provide, if any, and which ones individuals should consider keeping on hand. Some suggested emergency supplies include but are not limited to water, a three day supply of non-perishable food, battery powered radios and extra batteries, flashlights and of course, extra batteries for them. A First Aid kit, with a signal whistles along with some dust or filter masks are good to have on hand. Moist towelettes for sanitation, a wrench or pliers to turn off utilities, a can opener for food, and some good plastic sheeting and duct tape to seal off a room if required. Lastly, some garbage bags and plastic ties for personal sanitation.
There are several sites with clear instruction on creating your emergency plan. You can begin at Ready.gov and expand your search from there.
It is possible that your staff will need time to ensure the well-being of their family members, but getting back to work is important to the personal recovery of people who have experienced disasters. It is important to re-establish routines, when possible.
Here are some tips to get you started or to improve your plan that may already be in place.
Two-way communication is critical before, during and after a disaster. You should include emergency preparedness information in newsletters, on company intranet, periodic employee emails and other internal communications tools. Consider setting up a telephone calling tree, a password-protected page on the company website, an email alert or a call-in voice recording to communicate with employees in an emergency. Designate an out-of-town phone number where employees can leave an "I'm Okay" message in a catastrophic disaster. It is good to provide all co-workers with wallet cards detailing instructions on how to get company information in an emergency situation. Include telephone numbers or Internet passwords for easy reference. Maintain open communications where co-workers are free to bring questions and concerns to company leadership. Also, talk to co-workers with disabilities. If you have employees with disabilities ask about what assistance is needed. People with disabilities typically know what assistance they will need in an emergency. Understand how to alert people who cannot hear an alarm or instructions.
It is recommended that you have both a battery-powered commercial radio and a weather radio with an alert function. The weather radio can alert you to weather emergencies or announcements from the Department of Homeland Security. The commercial radio is a good source for news and information from local authorities.
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, computer backups, emergency or law enforcement contact information and other priority documents in a waterproof, fireproof portable container. Store a second set of records at an off-site location.
Talk to your co-workers about what emergency supplies the company can feasibly provide, if any, and which ones individuals should consider keeping on hand. Some suggested emergency supplies include but are not limited to water, a three day supply of non-perishable food, battery powered radios and extra batteries, flashlights and of course, extra batteries for them. A First Aid kit, with a signal whistles along with some dust or filter masks are good to have on hand. Moist towelettes for sanitation, a wrench or pliers to turn off utilities, a can opener for food, and some good plastic sheeting and duct tape to seal off a room if required. Lastly, some garbage bags and plastic ties for personal sanitation.
There are several sites with clear instruction on creating your emergency plan. You can begin at Ready.gov and expand your search from there.
Saturday, April 16, 2011
Birmingham Business Alliance on Blue Print Birmingham and our North Jefferson Opportunity
Another busy week for us here in the North Jefferson area, and it was certainly good to see the strong representation from North Jeff as we worked to welcome a visit from Mr. Barry Copeland, Senior Vice President of the Birmingham Business Alliance. Several city council leaders from Gardendale and Fultondale were in attendance as was Mayor Doug Brewer of Graysville and Mayor Jim Lowery of Fultondale.
Copeland reviewed the impact of Blue Print Birmingham and drilled down to the specific role that we can play in the implementation of the Plan. Blue Print Birmingham was born in a survey to the community asking the question: What should be our development and strategic plan for Birmingham? The answer came back with over 2300 responses, and an idea has evolved into an implemented strategy. This strategy has evolved into tactics which include an outreach to surrounding areas such as ours for support, participation and collaboration.
Seven pillars were identified as drivers of economic growth and ultimate job creation for the Plan. One of these key pillars in Blue Print Birmingham is in the area of Trade and Distribution. We become a key participant in this pillar with the continued construction of I22 and I422. Supporters of Blue Print Birmingham create allies and strategic alliances for our area that recognize the impact of the 52 mile Beltline stretch. The Beltline will impact not just us of course, but will overlay 30 cities, and 3 counties. The area described overlays 5 segments of which we are segment 4. Development of the project is funded by the Appalachian Development Highway Commission (ADHC) whereby money has been set aside by the Federal Government to run this project. Both I22 and I422 are ADHC projects. An anticipated 7 Billion will be spent for construction over 20 years while creating 70,000 jobs. According to Renee Carter, Executive Director for the Coalition for Regional Transportation, it is important to note that this is created during the construction phase alone.
Now is the time to cultivate an awareness of our business neighbors and to understand the need to educate ourselves and create community awareness. This is our time to connect to the massive transportation arm of this growth and understand the role of not just the interstate but the full spectrum of rail, highway and air travel. You may find it interesting as I did to appreciate that our 2 mile Birmingham Airport Runway is a very significant critical requirement for international travel. Norfolk Southern is anticipated to spend over 100 million dollars in McCalla on the development of the rail system. The cargo potential here for importing and exporting of goods is again very significant.
Mr. Copeland made the not small point of underscoring the need in all of this growth and opportunity for excellence in education. This is not a suggestion, a “nice to do”, or “maybe we can make it work” suggestion. This is a key requirement and an imperative to true measured success. The desire for “economic development” has become all too cliché of a term. Until the demand is met for creation of an educated workforce, the legs will be weak on the table. Mr. Copeland made the challenge to really drill down on our education rate as a Region, and not to view it by independent communities. A fractured view of any of the elements, and especially education, will hinder our success.
The impact of this project will parallel what we have seen in Shelby County, and we can certainly learn from their processes. In fact, we should connect to I22 within the next three years, and that is just around the corner.
Copeland reviewed the impact of Blue Print Birmingham and drilled down to the specific role that we can play in the implementation of the Plan. Blue Print Birmingham was born in a survey to the community asking the question: What should be our development and strategic plan for Birmingham? The answer came back with over 2300 responses, and an idea has evolved into an implemented strategy. This strategy has evolved into tactics which include an outreach to surrounding areas such as ours for support, participation and collaboration.
Seven pillars were identified as drivers of economic growth and ultimate job creation for the Plan. One of these key pillars in Blue Print Birmingham is in the area of Trade and Distribution. We become a key participant in this pillar with the continued construction of I22 and I422. Supporters of Blue Print Birmingham create allies and strategic alliances for our area that recognize the impact of the 52 mile Beltline stretch. The Beltline will impact not just us of course, but will overlay 30 cities, and 3 counties. The area described overlays 5 segments of which we are segment 4. Development of the project is funded by the Appalachian Development Highway Commission (ADHC) whereby money has been set aside by the Federal Government to run this project. Both I22 and I422 are ADHC projects. An anticipated 7 Billion will be spent for construction over 20 years while creating 70,000 jobs. According to Renee Carter, Executive Director for the Coalition for Regional Transportation, it is important to note that this is created during the construction phase alone.
Now is the time to cultivate an awareness of our business neighbors and to understand the need to educate ourselves and create community awareness. This is our time to connect to the massive transportation arm of this growth and understand the role of not just the interstate but the full spectrum of rail, highway and air travel. You may find it interesting as I did to appreciate that our 2 mile Birmingham Airport Runway is a very significant critical requirement for international travel. Norfolk Southern is anticipated to spend over 100 million dollars in McCalla on the development of the rail system. The cargo potential here for importing and exporting of goods is again very significant.
Mr. Copeland made the not small point of underscoring the need in all of this growth and opportunity for excellence in education. This is not a suggestion, a “nice to do”, or “maybe we can make it work” suggestion. This is a key requirement and an imperative to true measured success. The desire for “economic development” has become all too cliché of a term. Until the demand is met for creation of an educated workforce, the legs will be weak on the table. Mr. Copeland made the challenge to really drill down on our education rate as a Region, and not to view it by independent communities. A fractured view of any of the elements, and especially education, will hinder our success.
The impact of this project will parallel what we have seen in Shelby County, and we can certainly learn from their processes. In fact, we should connect to I22 within the next three years, and that is just around the corner.
Tuesday, March 22, 2011
State Ethics Law Overview: Oh you mean ME?
Attending a State Ethics Reform Update recently which was sponsored by Bradley, Arant, Boult, and Cummings, I received an opportunity to hear first-hand the details and nuances of the changes in ethics reform and work to understand what the new Alabama Ethics Law holds for the business community. Always on point to help bring the issues to the business leadership, this forum was supported by the Birmingham Business Alliance. Myla Calhoun Choy, Legal Council for BBA, served as the moderator. David Stewart, partner with Bradley, Arant, Boult and Cummings, along with Jim Sumner, Director of the Alabama Ethics Commission, led the discussion of the impact on business and I assure you it is not “business as usual” anymore.
You may re call that in late 2010, the Alabama Legislature was called in to special session by then outgoing Governor Bob Riley for the purpose to increase transparency and accountability in government at the State, County and local levels. More specifically was the express purpose of limiting the amount of influence that lobbyists, and those who pay lobbyists can have on the political process. Senate Bill 14 by Senator Bryan Taylor, and House Bill 11 by Representative Paul DeMarco, makes extensive changes to the definition of lobbying, lobbyists, and items and hospitality that may be provided to officials.
DeMarco also fought for mandatory training. Given the changes, this seems not only logical, but clearly necessary. Many private industry representatives are required to read, train and sign corporate compliance and ethical standard agreements. Clearly we should look for the same minimum standard from our elected officials and effective January 1, 2011 it is now required of lobbyists and their principals. These bills truly transformed the law, and Ethics Commissioner Jim Sumner declared, “Life as we have known it in the past no longer exists.”
Hospitality and entertainment are the big changes here. Anything that is purely social is no longer allowed. Previously a lobbyist could spend just about whatever her or she wanted per day and did not need to report until a $250.00 threshold had been reached. Now, such gatherings must involve an educational function, may pertain to economic development, and must meet the criteria for a widely attended event. Therefore an Industrial Development Board working session is okay, but golf is not. The food and beverage limit is now limited to $25 or less per occurrence and not more than $150 per year per public official or public employee.
Are you a public official or public employee? You may just be. If you were elected, appointed or employed at the state, county, or municipal level of government or government instrumentalities these changes are now in affect. That is a lot of folks, and it may include you.
New rules, and new day, so make certain you understand how it affects you.
You may re call that in late 2010, the Alabama Legislature was called in to special session by then outgoing Governor Bob Riley for the purpose to increase transparency and accountability in government at the State, County and local levels. More specifically was the express purpose of limiting the amount of influence that lobbyists, and those who pay lobbyists can have on the political process. Senate Bill 14 by Senator Bryan Taylor, and House Bill 11 by Representative Paul DeMarco, makes extensive changes to the definition of lobbying, lobbyists, and items and hospitality that may be provided to officials.
DeMarco also fought for mandatory training. Given the changes, this seems not only logical, but clearly necessary. Many private industry representatives are required to read, train and sign corporate compliance and ethical standard agreements. Clearly we should look for the same minimum standard from our elected officials and effective January 1, 2011 it is now required of lobbyists and their principals. These bills truly transformed the law, and Ethics Commissioner Jim Sumner declared, “Life as we have known it in the past no longer exists.”
Hospitality and entertainment are the big changes here. Anything that is purely social is no longer allowed. Previously a lobbyist could spend just about whatever her or she wanted per day and did not need to report until a $250.00 threshold had been reached. Now, such gatherings must involve an educational function, may pertain to economic development, and must meet the criteria for a widely attended event. Therefore an Industrial Development Board working session is okay, but golf is not. The food and beverage limit is now limited to $25 or less per occurrence and not more than $150 per year per public official or public employee.
Are you a public official or public employee? You may just be. If you were elected, appointed or employed at the state, county, or municipal level of government or government instrumentalities these changes are now in affect. That is a lot of folks, and it may include you.
New rules, and new day, so make certain you understand how it affects you.
Monday, March 7, 2011
Alabama State Legislative Changes and the North Jefferson Area
Now is not the time to blink. You will certainly miss something in the realm of politics and business. The tax code that was created in the 1930’s and adopted by states like Alabama is a key element in the papers of late. Over the past 70 years, the income tax has grown and is now the mainstay of the Education Trust Fund here in our state. Today, according to Steve Flowers (NJN 3/2/11) the state income tax and state sales tax are the primary sources of revenue for education here in Alabama. With our current economic climate that includes an unemployment rate of 9%, and some areas with much more, weak sales and income tax collections trigger short falls in funding at many levels to include education.
Our new Governor Bentley has his hands full for sure, but there are many in Montgomery who are working hard to balance and sustain a reasonable budget. One of Bentley’s key items under the education budget is to keep any state-funded teachers from losing their jobs. He does maintain and ask that they pay more for their health care and pension retirement costs. To quote Governor Bentley, “We are only asking our teachers to do what virtually everyone else has been forced to do in these tough economic times.” (BHM News, 3/2/11). Also on the table is a proposal to end the state’s deferred retirement program, known as DROP. This program allows eligible public employees to delay retirement for up to five years and then get their retirement benefits from those years in a lump sum. Very Interesting. In the private sector where we find a cessation of 401K matching and a reduction of pensions in an effort to save jobs, this does seem mirrored and reasonable. Bentley’s plan does not dispense with this benefit as many companies have had to do, it simply reduces it. Most state employees contribute 5% of their checks to pension funding. In the private sector contributions are as high as 16% to a 401K WITHOUT a pension option. This would go up under this plan to 6 % in 2012 and to 7.5% by 2013. Opponents see this as a pay cut. Proponents see it as a necessary budgetary measure.
An educated work force is critical for sustained growth and development and thus supporting education is important. Perhaps it will be timely to add this metric to the mix. The measure of output of the school system as a measure of workforce contribution is not a far-fetched notion, and a bottom line concept certainly from a business perspective. Also important, let us measure the ability to retain our educated in this state with viable career options and employment.
House Bill 57 and the Education Trust Fund isn’t the only glass ball that our legislators are juggling. Alabama Republicans list several items in their “Handshake with Alabama” and they do impact business big and small. Look for House Bill 60 which would write in to the state constitution the ability to challenge in federal court the participation of Alabama in the Healthcare Overhaul Law. Among other things, the law will require most Americans to have health care coverage or face penalties.
House Bill 64 will be working on a rewrite of the state constitution as well. This Bill supports the view that workers would be guaranteed secret ballot when voting whether to unionize.
Clear support for workforce development and its importance as a key pillar to economic development can be found in the 5 year plan of Blue Print Birmingham. Driven by the Birmingham Business Alliance, and continued by the newly appointed Director of BBA, Brian Hilson, we look forward to measured and sustained growth for our region. We can look forward to learning more about how Hilson, through his leadership with the Huntsville Chamber of Commerce, participated in the success and growth of the Huntsville/Madison area. We look forward to learning also how he will bring that experience to Birmingham and the surrounding areas to include our North Jefferson Area.
Watching these developments will be key to driving the development of the North Jefferson area. The recent 2010 US Census reports that three cities in the North Jefferson County area had significant increases in population. Kimberly grew by 50%, Fultondale by 27% and Gardendale by 19.5%. To put that in context, the population of the North Jefferson area is approximately that of the Homewood area. Think about that. Growth is fine, but managed growth with the ability to support and serve is better. Do we have the infrastructure to sustain this growth? Will we have good roads? Will we have strong schools? What will our law enforcement and fire support requirements support require? Pay attention, don’t blink, and keep in the conversation.
Our new Governor Bentley has his hands full for sure, but there are many in Montgomery who are working hard to balance and sustain a reasonable budget. One of Bentley’s key items under the education budget is to keep any state-funded teachers from losing their jobs. He does maintain and ask that they pay more for their health care and pension retirement costs. To quote Governor Bentley, “We are only asking our teachers to do what virtually everyone else has been forced to do in these tough economic times.” (BHM News, 3/2/11). Also on the table is a proposal to end the state’s deferred retirement program, known as DROP. This program allows eligible public employees to delay retirement for up to five years and then get their retirement benefits from those years in a lump sum. Very Interesting. In the private sector where we find a cessation of 401K matching and a reduction of pensions in an effort to save jobs, this does seem mirrored and reasonable. Bentley’s plan does not dispense with this benefit as many companies have had to do, it simply reduces it. Most state employees contribute 5% of their checks to pension funding. In the private sector contributions are as high as 16% to a 401K WITHOUT a pension option. This would go up under this plan to 6 % in 2012 and to 7.5% by 2013. Opponents see this as a pay cut. Proponents see it as a necessary budgetary measure.
An educated work force is critical for sustained growth and development and thus supporting education is important. Perhaps it will be timely to add this metric to the mix. The measure of output of the school system as a measure of workforce contribution is not a far-fetched notion, and a bottom line concept certainly from a business perspective. Also important, let us measure the ability to retain our educated in this state with viable career options and employment.
House Bill 57 and the Education Trust Fund isn’t the only glass ball that our legislators are juggling. Alabama Republicans list several items in their “Handshake with Alabama” and they do impact business big and small. Look for House Bill 60 which would write in to the state constitution the ability to challenge in federal court the participation of Alabama in the Healthcare Overhaul Law. Among other things, the law will require most Americans to have health care coverage or face penalties.
House Bill 64 will be working on a rewrite of the state constitution as well. This Bill supports the view that workers would be guaranteed secret ballot when voting whether to unionize.
Clear support for workforce development and its importance as a key pillar to economic development can be found in the 5 year plan of Blue Print Birmingham. Driven by the Birmingham Business Alliance, and continued by the newly appointed Director of BBA, Brian Hilson, we look forward to measured and sustained growth for our region. We can look forward to learning more about how Hilson, through his leadership with the Huntsville Chamber of Commerce, participated in the success and growth of the Huntsville/Madison area. We look forward to learning also how he will bring that experience to Birmingham and the surrounding areas to include our North Jefferson Area.
Watching these developments will be key to driving the development of the North Jefferson area. The recent 2010 US Census reports that three cities in the North Jefferson County area had significant increases in population. Kimberly grew by 50%, Fultondale by 27% and Gardendale by 19.5%. To put that in context, the population of the North Jefferson area is approximately that of the Homewood area. Think about that. Growth is fine, but managed growth with the ability to support and serve is better. Do we have the infrastructure to sustain this growth? Will we have good roads? Will we have strong schools? What will our law enforcement and fire support requirements support require? Pay attention, don’t blink, and keep in the conversation.
Friday, February 25, 2011
Sales Rep Wanted: Government Experience Required, AHRQ and Health Reform Legislation
We are going to place this week’s blog entry in the “Did not know, and had no idea, how did I miss that one” file. Health care reform legislation and how it affects business has been a common topic over the past few months. Much of the conversation has been a one way street it seems with Washington calling the shots, our legislators arguing for or against the changes, and then the changes coming down anyway. The business population has worked to impact and influence with calls, letters and emails to Washington, and I would submit that now is the time to trust and verify that the needs of business with regard to health care costs are truly being addressed.
Robert Goldberg writing for The American Spectator relates that the House Republicans plan to cut $360 million in health reform funding in this year's budget as part of the retooling of the health care legislation. What was a light bulb moment in reading the article is that Goldberg writes that the current Obama Administration will be spending $100 million to run an ad campaign and hire a sales team to push the health reform legislation to thousands of doctors. Very interesting. It is one thing when private industry hires a sales force to market, PR, and sell a product, but now we have the US Government using a sales force (with cars and expense accounts) to convince doctors that government health guidelines are the way to go. Time will tell, but I am certain this will not be a simple “Buy War Bonds” message as was seen in World War II.
The most expensive part of the roll out of a product as you know is the sales and marketing component. I find this idea very compelling, as I work in the detail representative world and I know firsthand how challenging it can be to develop a credible support relationship with busy physicians. Access in many groups is not only limited but closed due to regulations with industry and research. Will the government sales representative adhere to those same guidelines? Even more telling will be the understanding of the monitoring of the Government Health care representatives. Will Government sales reps be tied to the same messaging, regulation and liability that private industry subscribes too? Will these healthcare representatives receive the same high level of technical training, sensitivity and diversity training, training on product and disease state management, and will they be required to sign detailed codes of conduct? What will the customer service and quality management goals look like? If recommendations are adhered to, and the patient suffers some adverse effect, will the company behind the message, in this case the US Government, be held accountable? After all, it is the US Government, not a publicly traded company, so what is the planned process for checks and balance?
According to the article, the home of this marketing machine is the Agency for Healthcare Research and Quality (AHRQ). It has a planned budget of nearly $1 billion. AHRQ is mentioned in the health reform legislation frequently, is responsible for determining what preventive services we get, what health care "quality" is, what should be cut from Medicare and what new technologies should be paid for. According to Dr. Carolyn Clancy, AHRQ’s director, consideration will be given to directives, guidelines, and placement of reminders into electronic health records. An additional 50 million will be spent on comparative effectiveness research (CER). Dr. Clancy has been the director of AHRQ since 2003, almost as long as AHRQ has been in existence.
CER is promoted as information about what are the most medically and cost-effective treatments, drugs, and medical devices. Pharmacoeconomics research is not new to the healthcare industry, but again, time will tell if the government research is held to the same standards as that in the public sector. And how do you manage the FDA in this conversation? Should another government agency validate the work of another government agency, or should there be some element of input from private business?
If healthcare is a component of the bottom line of your business, or if you receive healthcare coverage support from your employer, I would suggest that you keep a sharpened eye on these developing conversations.
Robert Goldberg writing for The American Spectator relates that the House Republicans plan to cut $360 million in health reform funding in this year's budget as part of the retooling of the health care legislation. What was a light bulb moment in reading the article is that Goldberg writes that the current Obama Administration will be spending $100 million to run an ad campaign and hire a sales team to push the health reform legislation to thousands of doctors. Very interesting. It is one thing when private industry hires a sales force to market, PR, and sell a product, but now we have the US Government using a sales force (with cars and expense accounts) to convince doctors that government health guidelines are the way to go. Time will tell, but I am certain this will not be a simple “Buy War Bonds” message as was seen in World War II.
The most expensive part of the roll out of a product as you know is the sales and marketing component. I find this idea very compelling, as I work in the detail representative world and I know firsthand how challenging it can be to develop a credible support relationship with busy physicians. Access in many groups is not only limited but closed due to regulations with industry and research. Will the government sales representative adhere to those same guidelines? Even more telling will be the understanding of the monitoring of the Government Health care representatives. Will Government sales reps be tied to the same messaging, regulation and liability that private industry subscribes too? Will these healthcare representatives receive the same high level of technical training, sensitivity and diversity training, training on product and disease state management, and will they be required to sign detailed codes of conduct? What will the customer service and quality management goals look like? If recommendations are adhered to, and the patient suffers some adverse effect, will the company behind the message, in this case the US Government, be held accountable? After all, it is the US Government, not a publicly traded company, so what is the planned process for checks and balance?
According to the article, the home of this marketing machine is the Agency for Healthcare Research and Quality (AHRQ). It has a planned budget of nearly $1 billion. AHRQ is mentioned in the health reform legislation frequently, is responsible for determining what preventive services we get, what health care "quality" is, what should be cut from Medicare and what new technologies should be paid for. According to Dr. Carolyn Clancy, AHRQ’s director, consideration will be given to directives, guidelines, and placement of reminders into electronic health records. An additional 50 million will be spent on comparative effectiveness research (CER). Dr. Clancy has been the director of AHRQ since 2003, almost as long as AHRQ has been in existence.
CER is promoted as information about what are the most medically and cost-effective treatments, drugs, and medical devices. Pharmacoeconomics research is not new to the healthcare industry, but again, time will tell if the government research is held to the same standards as that in the public sector. And how do you manage the FDA in this conversation? Should another government agency validate the work of another government agency, or should there be some element of input from private business?
If healthcare is a component of the bottom line of your business, or if you receive healthcare coverage support from your employer, I would suggest that you keep a sharpened eye on these developing conversations.
Monday, February 14, 2011
Board and Committee Appointments through the Prism of Customer Service
Board appointments and development committees for communities such as ours provide wonderful opportunities for leadership and civic growth. These roles are not only important, but critical to how a community moves forward, and appointments need to be taken very seriously. This is not the time for a Cinderella appointment, or a full blown exhibition of the Peter Principle. Real Leadership is needed, and strong opinions are welcome. But to quote an anonymous thought, “Action without study is fatal. Study without action is futile.” Once a person has been tapped, volunteered or pushed into a position of leadership, serious reflection tempered with a strong dose of humility is suggested.
These considerations are important as a brief read of the business headlines can leave you feeling overwhelmed with the challenges of managing an organization, team, or running a business. It can seem that sometimes all there is to be found is a bleak and dire view. Take the personal challenge to look at the things that you can control, and one by one, make those changes.
For example, a big “item of control” is Customer Service, whether it is your customer service or the customer service of your employees or team. Challenge yourself to take great customer service to heart, lead by example, and coach those around you to raise their level of expectation of what great customer service should look like.
But do you know what great customer service looks like? Here are a few steps to ponder to get you on your way.
The first step is to develop what you define as great customer service. Develop your own specific vision of what great looks like working with the customer’s perspective in mind. Creating a vision of customer service taps into your heart and spirit of excellence, and will allow you to uncover embedded concerns and needs that you may have overlooked. For example, what would happen if you really take the time to make your customer feel like he or she is your most important priority of the day?
It is very important to appreciate the difference between customer satisfaction and customer loyalty. Satisfied customers are not necessarily loyal customers. According to a Gallup Survey (2002) of 36 companies in 21 industries, the difference between customer satisfaction and customer loyalty lies in creating an emotional bond with your customer. How do you do this? Pay attention to your customer contact people. Train them as to how you want them to interact with your customers. According to this same Gallup Survey, customer contact people are 4 times more important in generating customer loyalty than the product or service itself.
How do you measure customer loyalty? Ask your customers. Were you satisfied? Will you come again? Will you RECOMMEND me to someone else? Simple, direct questions will reveal much about how you conduct your business. Be prepared to change how you connect with your customers. Learn what your customers want, and don’t expect that what you did last year will still hold up. Develop a deep understanding of the customer’s needs and expectations. This close connection with your customers will foster an environment where your customer will come to depend on you. And for goodness sake, learn what your competition is offering!
Lastly be thoughtful and systematic about any change the you create. Decide if your change will hold up to your Vision, your environment, and your strategy.
In today’s competitive environment, you often don’t get a second chance. Make the first one count, and give it your best customer service first. For those assuming leadership roles, for goodness sake, remember who brought you to the dance, AND who will take you home. In the spirit of transparency and required ethics, it is important to recognize that the two are not always the same, but both deserve your integrity.
These considerations are important as a brief read of the business headlines can leave you feeling overwhelmed with the challenges of managing an organization, team, or running a business. It can seem that sometimes all there is to be found is a bleak and dire view. Take the personal challenge to look at the things that you can control, and one by one, make those changes.
For example, a big “item of control” is Customer Service, whether it is your customer service or the customer service of your employees or team. Challenge yourself to take great customer service to heart, lead by example, and coach those around you to raise their level of expectation of what great customer service should look like.
But do you know what great customer service looks like? Here are a few steps to ponder to get you on your way.
The first step is to develop what you define as great customer service. Develop your own specific vision of what great looks like working with the customer’s perspective in mind. Creating a vision of customer service taps into your heart and spirit of excellence, and will allow you to uncover embedded concerns and needs that you may have overlooked. For example, what would happen if you really take the time to make your customer feel like he or she is your most important priority of the day?
It is very important to appreciate the difference between customer satisfaction and customer loyalty. Satisfied customers are not necessarily loyal customers. According to a Gallup Survey (2002) of 36 companies in 21 industries, the difference between customer satisfaction and customer loyalty lies in creating an emotional bond with your customer. How do you do this? Pay attention to your customer contact people. Train them as to how you want them to interact with your customers. According to this same Gallup Survey, customer contact people are 4 times more important in generating customer loyalty than the product or service itself.
How do you measure customer loyalty? Ask your customers. Were you satisfied? Will you come again? Will you RECOMMEND me to someone else? Simple, direct questions will reveal much about how you conduct your business. Be prepared to change how you connect with your customers. Learn what your customers want, and don’t expect that what you did last year will still hold up. Develop a deep understanding of the customer’s needs and expectations. This close connection with your customers will foster an environment where your customer will come to depend on you. And for goodness sake, learn what your competition is offering!
Lastly be thoughtful and systematic about any change the you create. Decide if your change will hold up to your Vision, your environment, and your strategy.
In today’s competitive environment, you often don’t get a second chance. Make the first one count, and give it your best customer service first. For those assuming leadership roles, for goodness sake, remember who brought you to the dance, AND who will take you home. In the spirit of transparency and required ethics, it is important to recognize that the two are not always the same, but both deserve your integrity.
Thursday, February 10, 2011
Closed Loop Marketing, Data Capture and Value Creation
The new economy requires us to think differently - to anticipate, react to, and exploit business opportunities at lightning speed. According to Myriad Marketing, Inc. , you can't afford to leave marketing successes to chance. To that end, companies are working to develop and evolve a powerful customer-centric solution for the digital age. Called Closed Loop Marketing, its strength is predicting and fulfilling customer needs while accurately measuring the return on investment of marketing. Ultimately the goal is to assess and quantify the effect marketing efforts have on sales in a feedback loop of information enhancement.
Closed Loop Transfer Theory in mathematics is the birthplace of this idea and enables the driver to control the outcome: The tighter the system, the more predictable the outcome.
The Closed Loop Marketing approach measures the results of marketing and communication initiatives by tracking the response of targeted groups. The results of responses, such as completed surveys, promotional entries, coupon redemptions and purchase behavior, are added to a database for tracking and evaluation to improve future marketing decisions. Real time feedback of likes and dislikes by the customer can be entered in to the marketing plan, and immediately considered for improvement. Marketing campaigns can then continuously adapt to the customers' wants and needs, creating a true relationship. Simply put: It allows marketers to develop, and monitor highly targeted strategic campaigns based on a wide variety of customer histories and behaviors.
When it works, ultimately there will be a higher level of delivered information that will continuously evolve to a higher level of product understanding and utilization.
Think about Netflix and Roku for your television. As you view movies and shows, the system uses a type of artificial intelligence to recommend other items that you may like to view. If the system gets it right, you keep paying your monthly fee. If the system gets it wrong, you get tired of the same old offering and move on to Direct TV, or Red Box or some other form of entertainment.
This style of messaging and conversation enhancement is finding use in a variety of industries, and may be coming to an industry near you soon. The pharmaceutical industry is embracing this method of messaging at a very high level as it works to recreate value in the physician office. Look out sales reps! Just when you thought you had mastered the spreadsheet and PowerPoint, now you have electronic messaging systems, and detail aids that time signature and learns from every conversation.
Fear not, there is a place for this type of change. Keep in mind that we all learn in different and evolving ways and that includes our customers. The caution is to keep the end result in mind, and insure that once the novelty of electronic detailing with a real person and a computer and a customer wears off, we still have a message that is worth giving a listen.
Closed Loop Transfer Theory in mathematics is the birthplace of this idea and enables the driver to control the outcome: The tighter the system, the more predictable the outcome.
The Closed Loop Marketing approach measures the results of marketing and communication initiatives by tracking the response of targeted groups. The results of responses, such as completed surveys, promotional entries, coupon redemptions and purchase behavior, are added to a database for tracking and evaluation to improve future marketing decisions. Real time feedback of likes and dislikes by the customer can be entered in to the marketing plan, and immediately considered for improvement. Marketing campaigns can then continuously adapt to the customers' wants and needs, creating a true relationship. Simply put: It allows marketers to develop, and monitor highly targeted strategic campaigns based on a wide variety of customer histories and behaviors.
When it works, ultimately there will be a higher level of delivered information that will continuously evolve to a higher level of product understanding and utilization.
Think about Netflix and Roku for your television. As you view movies and shows, the system uses a type of artificial intelligence to recommend other items that you may like to view. If the system gets it right, you keep paying your monthly fee. If the system gets it wrong, you get tired of the same old offering and move on to Direct TV, or Red Box or some other form of entertainment.
This style of messaging and conversation enhancement is finding use in a variety of industries, and may be coming to an industry near you soon. The pharmaceutical industry is embracing this method of messaging at a very high level as it works to recreate value in the physician office. Look out sales reps! Just when you thought you had mastered the spreadsheet and PowerPoint, now you have electronic messaging systems, and detail aids that time signature and learns from every conversation.
Fear not, there is a place for this type of change. Keep in mind that we all learn in different and evolving ways and that includes our customers. The caution is to keep the end result in mind, and insure that once the novelty of electronic detailing with a real person and a computer and a customer wears off, we still have a message that is worth giving a listen.
Friday, January 28, 2011
Birmingham Business Journal and 2011 Forecast
The Birmingham Business Journal and several key corporate sponsors played host to the Economic Forecast update this week held at the Harbert Center. Noted speakers included Dr. Sam Addy of the Center for Business and Economic Research at the University of Alabama, Dr. Andrea Rauterkus, Assistant Professor of Finance at UAB, Dr. Chris Westley, Associate Professor at Jacksonville, and Tom Nelson, economic analyst for Vulcan Materials. Scholarly leaders they are, and let me share with you some of their insight for what 2011 holds for us.
Firstly, while optimistic, the group remains cautious and warned to take improvements in the market in the proper context. The recession was in fact a long time coming, and due to our behaviors. The slow structural change has been frustrating, and corrections have been slowing due to incessant government interventions. There was a collective agreement that the corrections need to occur to right the wrongs of the past and move us toward sustainable growth.
Since the recession, saving has increased and borrowers are starting to behave. (I am talking individual here, certainly not US Government.) This is the true heart of wealth creation and it is really just that simple. It does take the hard work of self discipline and the high need for self control and delayed gratification. Unfortunately, these are not common terms at the average American dinner table. The Business Cycle is built from the simple notion that sustainable growth is born in a person who saves so that they can invest in a company. That company then builds more stuff that we can buy. Buy more of our stuff, and they can hire more people.
Wealth has become valued more realistically of late, and we are moving into a new normal. The GDP is expected to grow at about 3.5% and employment at only 1.4% or 2 million jobs nationally. The public sector is starting to realize that it needs to contribute, and not just consume to get us back on track. This is a key realization as policy makers search for what is optimal and sustainable to address what we see as a decline of the middle class. The need to address and support small business was a message laced through all four presenters’ comments. Dr. Addy was keen to remind the audience that all large companies were indeed at once a small business. He gave the challenge to the audience to look at the system which creates the dynamic that allows the growth of small business.
So which sector will lead us into this growth? According to the group certainly healthcare will continue to grow both locally and nationally, and it will add jobs. Education will continue to be challenged by the limits of state financial revenues, and interestingly manufacturing will grow about 5%, but not add any measurable amount of jobs. Manufacturing is learning to do its work better, and as the daily reports of downsizing show, they are doing it with fewer workers.
The banking sector will continue to compete for a smaller group of potential borrowers, and market indicators are pointing to a continued rise in interest rates. Many countries are attempting growth by currency devaluation, and they all agreed that this will prolong any recovery in the market place. On a more local level, all discussed the need for a community bank that takes on a personal banker role to small business. This will open the door to loans based on tangible business models, not just credit models, and a keep a needed check on the veracity of loan access and payback.
What about the debt? According to the US Debt Clock (www.usdebtclock.org) we are 14 Trillion in debt with 1 Trillion owed to China. We owe Japan nearly that same amount, and the United Kingdom half a Trillion. This is clearly a very big number, and the debt clock is pretty scary let me tell you. I am really a bit sorry that I found it, and it is truly mesmerizing to sit and watch these astronomical numbers click away glibly before your very eyes. It is truly stunning to see in real time our debt, and how it breaks down to a per tax payer burden of about $45,000. By the way, only 1 in 3 pay taxes, and you can see that on the debt clock too. Next time you hear someone talking about “spreading the responsibility” or “everyone doing their fair share” to support this bail out or that bail out, remember that fine point.
All in all, better to know the facts as you make decisions going forward. Yes, 2010 was a disappointing year, but the trough occurred in June of 2009 actually. Our pick up will sputter, and our speakers maintained that the outlook should improve by the second half of this year. So hang in and hang on as we are not out of the woods just yet.
Firstly, while optimistic, the group remains cautious and warned to take improvements in the market in the proper context. The recession was in fact a long time coming, and due to our behaviors. The slow structural change has been frustrating, and corrections have been slowing due to incessant government interventions. There was a collective agreement that the corrections need to occur to right the wrongs of the past and move us toward sustainable growth.
Since the recession, saving has increased and borrowers are starting to behave. (I am talking individual here, certainly not US Government.) This is the true heart of wealth creation and it is really just that simple. It does take the hard work of self discipline and the high need for self control and delayed gratification. Unfortunately, these are not common terms at the average American dinner table. The Business Cycle is built from the simple notion that sustainable growth is born in a person who saves so that they can invest in a company. That company then builds more stuff that we can buy. Buy more of our stuff, and they can hire more people.
Wealth has become valued more realistically of late, and we are moving into a new normal. The GDP is expected to grow at about 3.5% and employment at only 1.4% or 2 million jobs nationally. The public sector is starting to realize that it needs to contribute, and not just consume to get us back on track. This is a key realization as policy makers search for what is optimal and sustainable to address what we see as a decline of the middle class. The need to address and support small business was a message laced through all four presenters’ comments. Dr. Addy was keen to remind the audience that all large companies were indeed at once a small business. He gave the challenge to the audience to look at the system which creates the dynamic that allows the growth of small business.
So which sector will lead us into this growth? According to the group certainly healthcare will continue to grow both locally and nationally, and it will add jobs. Education will continue to be challenged by the limits of state financial revenues, and interestingly manufacturing will grow about 5%, but not add any measurable amount of jobs. Manufacturing is learning to do its work better, and as the daily reports of downsizing show, they are doing it with fewer workers.
The banking sector will continue to compete for a smaller group of potential borrowers, and market indicators are pointing to a continued rise in interest rates. Many countries are attempting growth by currency devaluation, and they all agreed that this will prolong any recovery in the market place. On a more local level, all discussed the need for a community bank that takes on a personal banker role to small business. This will open the door to loans based on tangible business models, not just credit models, and a keep a needed check on the veracity of loan access and payback.
What about the debt? According to the US Debt Clock (www.usdebtclock.org) we are 14 Trillion in debt with 1 Trillion owed to China. We owe Japan nearly that same amount, and the United Kingdom half a Trillion. This is clearly a very big number, and the debt clock is pretty scary let me tell you. I am really a bit sorry that I found it, and it is truly mesmerizing to sit and watch these astronomical numbers click away glibly before your very eyes. It is truly stunning to see in real time our debt, and how it breaks down to a per tax payer burden of about $45,000. By the way, only 1 in 3 pay taxes, and you can see that on the debt clock too. Next time you hear someone talking about “spreading the responsibility” or “everyone doing their fair share” to support this bail out or that bail out, remember that fine point.
All in all, better to know the facts as you make decisions going forward. Yes, 2010 was a disappointing year, but the trough occurred in June of 2009 actually. Our pick up will sputter, and our speakers maintained that the outlook should improve by the second half of this year. So hang in and hang on as we are not out of the woods just yet.
Chaos Theory and Business Management
“Welcome to the Jungle” goes the beginning of a song that I’ll bet your kids know and you probably air guitar along with also. Which brings us to Chaos Theory which, when applied to business and organizations, may help us see through the uncertainty of our times. Chaos Theory is a scientific principle describing the unpredictability of systems. Recognized in the 1980’s it has actually been around since the mid 1800’s. The premise is that systems reside in chaos. A System generates energy, but without predictability or direction. This idea of chaos theory can be applied to everything from weather to water flow to the management of organizations.
Edward Lorenz of MIT is credited with discovering one of chaos theory's fundamental principles—the Butterfly Effect. The Butterfly Effect is named for its assertion that a butterfly flapping its wings in Tokyo can impact weather patterns in Chicago
In a business world where innovation, change, competitive advantage and the impact on strategy are discussed daily, why is this idea of chaos and embracing the uniqueness of “the New” so difficult? I believe it is because we confuse order with control. If your company is like most, it probably looks very different than it did even just 6 months ago. How you now compete and survive in the jungle of business will be driven at a high level on how you let your company and team members self-organize, grow and evolve. This type of management style is critical in today’s competitive environment where we sometimes need to break it to make it better.
As long as the change occurs within the boundaries of your company’s overall vision and culture, you should strongly benefit from the resulting creativity and innovation. Chaos theory shows the need for effective leadership, a guiding vision, strong values, organizational beliefs, and most importantly open communication.
Have you ever worked for a group where you were told that you could not have a conversation with a higher up or express your ideas? Knowing a bit about Chaos Theory and Management may be some good food for thought for you. Chaos Theory is important here for business leaders because it is critical to embrace the idea, sometimes just for the sake of the idea. We would be wise to remember that order is in fact not control, and pulling in fresh ideas is the life blood of innovation and change.
Innovation and change are the pillars of developing a high-functioning team. Members of effective teams frequently change and recreate the role that each team member plays depending on the needs. While someone may not be the formal leader, an informal leader may emerge because they know just the right way to address the need of the group. The most successful leaders understand that it is not the organization or the individual who is most important, but the relationship between the two.
Tom Peters, one of the most influential business writers of our time, asserts that we live in "a world turned upside down," and survival depends on embracing "revolution." According to Peters, “We must learn to love change, as much as we have hated it in the past.”
Saturday, January 8, 2011
Spin, Marketing and PR
“Don’t believe everything that you hear, and half of what you see,” goes the old saying which brings me to something of interest this week: Spin. PR. Marketing. Call it what you will, how we feel about certain things, and the items that we buy and sell, have a lot of thought and energy behind the creation of an image.
In his new book Deadly Spin, Wendell Potter writes about corporate spin-manship and industry. In his previous role as chief of public relations for CIGNA, Potter pulls from vast experience with corporate culture and the ability to make the sausage of information into the Andouille of desire. More importantly, the book gives thought to the ethical considerations of public relations and the need for a bit of soul-searching.
The spin or the ruse has a rich history. Think about the Trojan Horse and the spin that some smooth talking Greek Soldier created as he left the gift of a giant wooden horse at the sealed gates of Troy. Deadly Spin reviews the history of spin, which he traces back to the Potemkin Villages of Catherine the Great. According to myth and legend there were fake settlements erected at the direction of the Russian Minister Potyomkin to fool Empress Catherine II during her visit to Crimea in 1787. According to this story Potyomkin had fake villages constructed along the desolate banks of the river in order to impress the monarch and her travel party. Seeing the value of her new conquests, his standing was enhanced in the empress' eyes.
There are many examples of this type of spin or what is now called “Potemkin Villages” many times in history from the Theresienstadt Ghetto in Nazi Germany also called the “paradise ghetto”, to the work supported by New York Mayor Ed Koch in 1982. Koch had a team affix decals with plants and venetian blinds over the windows of abandoned buildings in the Bronx to hide the blight. The contemporary urban shopping center has been called a Potemkin Village Shopping center as it works to mimic the feel of a village as opposed to a mall atmosphere.
Modern PR was greatly influenced by Edward Bernays, author of the 1923 book Crystallizing Public Opinion, the first book entirely dedicated to PR. Among his clients were the cigarette companies for whom he orchestrated a campaign equating cigarettes with “thinness, grace, and beauty.” An insufficient number of women were smoking, so he began an early PR project to encourage women to smoke.
Just a little bit of research has led me to some of these ideas today, and to ask you to please do one thing: Think. Take the time to consider why something is being said, and what it means to the speaker. Follow the economic trail to discover true motivation. Even great philanthropy, or health care, or politics or buying a particular type of milk, has had great effort placed into creating how you feel about the purchase or the contribution or the vote. Caveat emptor or Let the Buyer Beware.
In his new book Deadly Spin, Wendell Potter writes about corporate spin-manship and industry. In his previous role as chief of public relations for CIGNA, Potter pulls from vast experience with corporate culture and the ability to make the sausage of information into the Andouille of desire. More importantly, the book gives thought to the ethical considerations of public relations and the need for a bit of soul-searching.
The spin or the ruse has a rich history. Think about the Trojan Horse and the spin that some smooth talking Greek Soldier created as he left the gift of a giant wooden horse at the sealed gates of Troy. Deadly Spin reviews the history of spin, which he traces back to the Potemkin Villages of Catherine the Great. According to myth and legend there were fake settlements erected at the direction of the Russian Minister Potyomkin to fool Empress Catherine II during her visit to Crimea in 1787. According to this story Potyomkin had fake villages constructed along the desolate banks of the river in order to impress the monarch and her travel party. Seeing the value of her new conquests, his standing was enhanced in the empress' eyes.
There are many examples of this type of spin or what is now called “Potemkin Villages” many times in history from the Theresienstadt Ghetto in Nazi Germany also called the “paradise ghetto”, to the work supported by New York Mayor Ed Koch in 1982. Koch had a team affix decals with plants and venetian blinds over the windows of abandoned buildings in the Bronx to hide the blight. The contemporary urban shopping center has been called a Potemkin Village Shopping center as it works to mimic the feel of a village as opposed to a mall atmosphere.
Modern PR was greatly influenced by Edward Bernays, author of the 1923 book Crystallizing Public Opinion, the first book entirely dedicated to PR. Among his clients were the cigarette companies for whom he orchestrated a campaign equating cigarettes with “thinness, grace, and beauty.” An insufficient number of women were smoking, so he began an early PR project to encourage women to smoke.
Just a little bit of research has led me to some of these ideas today, and to ask you to please do one thing: Think. Take the time to consider why something is being said, and what it means to the speaker. Follow the economic trail to discover true motivation. Even great philanthropy, or health care, or politics or buying a particular type of milk, has had great effort placed into creating how you feel about the purchase or the contribution or the vote. Caveat emptor or Let the Buyer Beware.
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