Governor Elect Dr. Bentley, BBA, and the North Jefferson Area

Governor-Elect Robert Bentley is already working for the North Jefferson area.  If you lodged your vote for a pro-business agenda, you would have been encouraged if you attended the Birmingham Business Alliance Annual luncheon this week at the Sheraton to hear Dr. Bentley, I mean Governor-Elect Dr. Robert Bentley, discuss his commitment to our area.  An intricately woven quote by Lynard Skynard that “Birmingham Loves the Governor,” was an bright attempt to win hearts and minds.  Bentley’s follow up that “You may not always love me, but we will have a good four years full of opportunity,” set the stage for anticipation of good ideas to come.  Even this conservative skeptic is willing to give him a chance. 

 “I commit to you to make Birmingham a better place,” said Bentley.  Well, so goes the North, so goes Birmingham.  Bentley expressed support for the Northern Beltline and promised to make its construction a priority.    In allegiance with our Senators Shelby and Sessions, he remains committed to work quickly and diligently to make our road access a reality.  A quick turn down I65 South and you can see the fruits of all of our labors, that of our Legislators and that of our hard earned tax dollars.  Sharing the luncheon table with me were Mayors McCondichie and Phillips from Brookside and Gardendale respectively, and we were all ears.

Not fading from the issues, Bentley stated that “the role of government is to create a fertile field for jobs to grow, not to create the actual jobs.”  I like the sound of that.  Bentley was humble to recognize that the strength of a leader will be measured by history by the minds that he surrounds himself with in the leadership challenge.  To that end, University of Alabama at Birmingham President, Dr. Carol Garrison, was selected to introduce Bentley.  Per Dr. Garrison, UAB has a lot to gain by a pro business minded leader at the helm.  UAB alone has a half million dollar economic impact on Alabama, and lest you be stymied by that number, please realize that this occurred just in the time that the one hour luncheon was served at this event.  That is a half million dollar impact EVERY HOUR.  Garrison shared that for every $1 invested in UAB, a full $16 impact is realized for the Alabama.  UAB is the Economic Engine for Alabama.  Yes, we need efforts in Huntsville, Mobile and beyond, but UAB is alive and well and doing the job needed to keep Alabama competitive.

Bentley stands out front as one of the first to ask the question, “Did you create a job?”  This is simple, poignant, and clearly significant thinking here.  In an environment with 20% underemployed, and 9% real unemployment, we look to strong leadership on several fronts to include right to work legislation, improvements in our 2 year and 4 year colleges, decisions on tax requirements for business, and please oh please let us not overlook infrastructure improvements to attract business and industry to our area.  Bentley will be well supported if he is a leader that makes strategic decisions, and does not “study the problem to death.” 

Well, how do you do that, and can he?  Echoing his training as a physician, his message was true in its simplicity.  Dr. Tinsley Harrison was his professor in medical school, and a storied and respected physician indeed was Dr. Harrison.  Dr. Harrison, ever the servant leader, would encourage his student to “listen to the patient.”  The patient will tell you what is wrong if you are keen to listening.  Your job then will be to not just examine, but to diagnose and MAKE A DECISION.  When you make your decision, then your treatment will lead the way to strength and improvement. 

It has been my experience that everyone has an opinion after someone makes a decision.  I assess that we are mercifully entering into a time of great decisions and change here in our fair state.  Now is the time to educate yourself, leverage your opinions and become involved in the diagnosis and ultimate treatment choice for healthy growth.

Washington, Your Vote and the Business Next Door

This week in Business has been particularly focused. The Business Council of Alabama hosted noted political contributor, author and speaker, Fred Barnes, for their 2010 Annual Meeting and Luncheon held at the Harbert Center. As a Beltway Boy who also is the Executive Director of the Weekly Standard, Barnes was the usual great choice by BCA to bring cutting edge, real time information to the business community. I look forward to enjoying the signed copy of his book The Rebel and Chief about his behind-the-scenes look at the George Bush Presidency.


Barnes positioned his discussion of the election outcomes by recalling Reagan’s Washington assessment, as an “island surrounded on all sides by reality.” As Barnes noted, you don’t always get what you expect during an election, and this year was no different for many and exhilarating for others. He noted that interestingly our very conservative state of Alabama had similar election outcomes to the very liberal state of Wisconsin. My goodness, New York even picked a lot of Republicans. According to the Hoover Institute, we are indeed a much more conservative country than we were a few years ago and our concerns over healthcare, spending and debt are more important now than ever. This may not be a welcomed message to remind our Washington front office about at this time, but certainly someone has to break them the news. According to Barnes, it is of striking interest that the Republican Party has emerged as the party of “Hope and Change,” and it is incumbent on the party not to blow it.

Barnes posed the question, “Can the Republican Party maintain the coalition?” Time will certainly tell, but a good beginning will be stick to the drivers that business is recommending which are: putting the break on spending and loosen up on the healthcare demands on small business for a good start. Citing Germany as an example, he revealed that not surprisingly, our current economic policies are to the left of many European countries. Germany has unemployment on the decline at 7.8%, and they did it by decreasing spending, decreasing the length and generosity of unemployment, and decreasing the size of government. The big message here that Washington just seems to have a tough time getting the old brain around is that the New Deal did not work. It did not work for FDR and it will not work for the current administration. All it achieves is creating a stronger government power base.

We know the answer, and it sounds easy at least. Tax cuts and incentives work. Just ask any business owner who is trying to keep the doors open. Looking at business founders from across the globe with at least $1 million in annual revenue, Sally Ernst working for Entrepreneurs Organization (EO) tracks their attitude. These are the business leaders whose hiring and layoff decisions are most likely to drive the economy. Her findings are interesting. U. S. businesses were doing more hiring and making more money in the period from May to October 2010 than they were prior to the last Global Indicator Survey, released in May by EO. It seems that business isn’t bad for U. S. entrepreneurs with over half in the survey reporting a higher profit. However, Ernst said, “Things are improving in terms of their businesses although they see things around them as quite dire.” Continued difficult credit conditions and huge uncertainty over whether the U.S. economic recovery can sustain itself have left entrepreneurs worried. Compare this to half of global entrepreneurs who expect that it will be easier to obtain credit in the coming months. A full 57 percent of American entrepreneurs think it will become more difficult to obtain bank loans.

So where are the most excited entrepreneurs in the world today then, if not the U.S.? According to Ernst, we should look to the East. In the Asia-Pacific region, 78 percent of entrepreneurs are optimistic about the economy, 50 percent plan to increase their borrowing, 70 percent have seen profits rise since the spring, 60 percent have been creating jobs for the past year, and 79 percent expect to create still more jobs in the next quarter. And as we have discussed here  before, their Millennial Generation kids don’t mind doing the tough work, are ready to work and less concerned with work/life balance (NJNews 11/13/10).

So what’s a gloomy U.S. entrepreneur to do? Certainly you can look abroad, but let’s not forget to do a little house cleaning here at home. Work to prevent those Bush tax cuts from expiring by contacting your representative or congressman. That would be a nice start. Get informed, stay involved, and remember, take care of your customers, or someone else will.

Congratulations, You Get to Keep Your Job.....

The definition of work is changing. Not just the effort of work, but how we feel about the work that we do. Who among us has not gone through, or held the hand of someone who is going through a job correction? Call it what you will be it downsizing, right sizing, realignment, transformation, it still reads the same, “You, Sir or Madam, need to go be successful……somewhere else.” Not pleasant to hear, and certainly even more unpleasant to watch. Just ask the person who is left standing at the water cooler as they watch their colleagues of many years pack up their boxes and move on. I assure you that standing by is no picnic. Only time will tell who the real winner is going to be: The Last Man Standing or the One Who Moved On.


With all of the change in our economy and the recession that just seems to drag on, it could be expressly dim as we move into the holiday season that is if you let it. In my 22 years of industry experience, I have come to learn that there are always pitfalls and challenges in the work that we do, especially when you work for someone else. I also hold empathy for the business owner who has to make the tough decision to let people go, and I am certain the smaller the organization, the tougher that decision will be.

Perhaps you own your own business and work for yourself, but many of you are like me, working for another person or company. While you do not own your own business, you still work for yourself. Think about it for a minute.

I chose several years ago to change my mindset about this arrangement. I reflected on the increasing vagueness of the employer/employee relationship, and chose to instead think of the work that I do as for myself. My current employer just happens to be my best customer. This change in thinking caused something radical to happen, and I call it unleashing your inner entrepreneur.

When you start to own your own work, you become very much the business owner of your work, and your investiture in the outcomes skyrockets. You take calculated risks. You partner strategically. You educate yourself. You begin to work not just in the business, but on the business. The end result is liberation from some of the stress and drama of day to day work life. After all, you are the boss, you own your own work, and therefore you are responsible. Work no longer becomes a place that you go, but a thing that you do. I have written about this idea here before discussing ideas on the creation of your own personal brand, and I truly believe it is important to help others see the value of putting their good name on their work.

The future of work will be radically different from what we call work today, or can really even imagine. In the emerging economy people will get their work done where and when they need to-or want to. Technology all but guarantees availability and access to information for customers at the click of a button. The world of work is being turned upside down by globalization, demographics and environmental concerns. Our challenge as business owners and owners of our own work is to stay responsive to this demand. It is a dynamic, mobile economy and most definitely incredibly challenging. Good thing the rewards are high.

Giving Thanks for Just In Time

“Full enough is a Feast.” How far we have truly managed to come it seems from that autumn day in 1621 where the 53 survivors of the Mayflower had their first harvest celebration meal which was the English custom in that time. We now call this event our Thanksgiving Holiday, and while we will remember it with some type of wonderful feast perhaps and time with family, it has taken on a different spin.


Thanksgiving now is followed most notably by Black Friday to careen us into the Christmas Holiday shopping season. Don’t get me wrong. I love the holidays and I love shopping, but I also LOVE the market economy. There is nothing like the Black Friday battle over endless sales to bring out the real Bulls and Bears so lets visit for a minute on this thing we call the Free Market.

The market economy is one of the basic economic systems in the modern world. When Adam Smith wrote The Wealth of Nations in 1776, traditional agriculture formed the heart of nearly all world economies. As industry began to dominate in the 1800’s particularly in Europe and the United States, Industrialists wanted to control their own businesses. Turning to Smith’s laissez-faire ideas, they pushed for free markets and an end to government interference. Laissez-faire put simply is the doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights. The free market, free enterprise, or as we affectionately call it “capitalism”, has at its heart a special trinity of elements. First is the battle of supply and demand, second is the desire for self-interest where producers and consumers only consider their own personal gain when making decisions and third is my personal favorite: competition. Dampen or temper any one of these three elements and you move down the slippery slope to mixed economies. Mixed economies can be seen quite frequently both in foreign and domestic trade where there is a blend of both government and private industry competing to make key economic decisions. Further down that slope is the more centrally planned economy, also known as a command economy or a socialist economy. At this end of the spectrum you will find a decline in not just the quality of goods, but also the availability of goods that you search out. We participate in this everyday from banking to health care to grocery shopping to songs that we download to our iPod.

Pause for a minute to think just how your opinion about the market place has changed since the economy sank two years ago. Call forward what you know about your grandparents and their view of money having lived perhaps through the Great Depression. They most likely represent a spendthrift culture with a high appreciation for being a frugal saver. While our recent down turn thank goodness has not been as bad as that, it has caused a measurable change in our shopping behavior or as Ellen Byron writing for the Wall Street Journal observes, we now have a new name: The Just-In-Time Consumer.

If I asked you to open your wallet, most of you could present some type of bulk shopping club card. For over two decades, Americans bought big, bought more, and stocked up with the confidence that bulk shopping, often on credit, would provide the best value for their money. It seems that this long recession with its high unemployment, plummeting home values, and depleted savings has altered the way that many people think about their future. Consumers are more likely to buy with the thoughts of do I “need it now” and will I “use it up” hence earning the moniker of the Just-In-Time Consumer. There will be a pause before a purchase with consumers asking themselves, “Do I really need this, can I really afford this?” says Thom Bischok, president of global innovation and strategy for Symphony IRI Group.

The lower sales volumes seen of late are attributed to “pantry de-loading.” People are just cutting back on inventory. Ladies, think about how many products you use from shower to hair to make up in the morning and ask yourself if you are now going without a few. Look at your pantry at home to observe that you have fewer product duplications and you stretch out store visits.

Just-In-Time consumption is disrupting long established purchase cycles as consumers buy when they need it, not way in advance. Put simply, we are getting by with what we have and doing just fine thank you very much. Or as the saying goes, “The rich man has enough.” Have a Blessed Thanksgiving!

Pick your Ally to Change the Change: BCA, US Chamber, NAM

            Change.  Not just a buzzword during the Presidential elections, but a word that rose to a frenzied mantra.  Now that the smoke is clearing from our  recent mid-term elections, we are beginning to get the clear picture that something really has changed in the collective conscience of the country, and it may not be what some in Washington had hoped for or envisioned.  It would seem that previous to the 2008 elections, it was enough to ask the civic minded person to engage and vote.  Now that is just not enough.  Gone are the days of passive involvement, and trust in leadership whether it would be corporate leadership (with a now 20% approval rating) or political leadership (with a now 11% approval.)  Enter the Watchdog.  Welcome the Self-Advocate.  All Hail the civic minded, highly engaged voter who not only shows up on Election Day, but is highly informed and ready to get involved.  

I want to share this thought with you on the heels of my participation in the recent Committee Days for the Business Council of Alabama (BCA).  Committee days are key to driving the Pro-Business Agenda that BCA supports for our state.  In their commitment to our legislative process, BCA looks to the business volunteer leadership who has led BCA for over a quarter of a century with vision, courage, integrity and commitment.  This weeks Committee days were filled with heavy hitter leadership participation from all business sectors for Alabama.  If your company supports BCA, your organization has taken a serious step toward not only civic engagement, but having personal ownership in driving the drivers of legislation and leadership. 

            Two key speakers supported the Committee days this week, and their messages were on target with the mission of BCA.  In attendance to support this event were Jay Timmons, Executive Vice President of the National Manufacturers Association (NAM) and Katie Hays, Executive Director of Congressional and Public Affairs for the US Chamber of Commerce. 

Timmons spoke to the need for “clearing the bureaucratic brush”.  According to Timmons, American companies want to compete and win in the aggressive war of competition, and do not need to be encumbered by taxes and legislation that is a functional anvil on the backs of manufacturing.  The United States is second now to Japan, but soon to be the highest in corporate tax rate with a cost to do business in the US at 17% higher than other countries.  NAM supports better policies to create jobs and bring us out of the recession, and it advocates for the Free Market System.  Timmons expressed concern that voters are less and less educated on benefits of a free market.  “We will not survive as a service economy alone, and a manufacturing economy born in innovation, advancement and competition is crucial to building tangible wealth and strength for us,” said Timmons.

Hayes gave an election recap with recognition that there is certainly a lot of new blood in office with 13 new senators and 30 new governors.  “The role of the new governors is clearly significant as they work to interpret for the state what is happening at the national level and as well they should,” said Hayes.  As we exit this week from our Lame Duck Session with only one more session this year, there is a lot to accomplish in a very short period of time.  According to Hayes and the US Chamber of Commerce, President Obama must signal openness to compromise.  If the 2001/2003 Bush tax cuts expire, we will experience one of the largest tax hikes in America’s history.  $3.8 Trillion will be placed in the government’s hands only 45 days from now unless action is taken.   There is a lot of legislation in limbo in addition to the expiring tax cuts.  Other business tax provisions that are a priority for businesses are card check legislation, climate change legislation, transportation funding (SAFETEA-LU) reauthorization, discussion of the Debt Commission's budget report suggestions, immigration legislation (the DREAM Act), cyber security bill, trade legislation, and Medicare insurance legislation. 

The list is daunting, but chins up; Washington is listening now and now is our time to change the change.  We are the small-business bloc which is code for the “hardworking voter” or the “everyman.”  It is rare to find a small business person that does not complain about competition against the Big Box Company so here is your word of caution.  Politics is now truly big business.  More money from outside groups has been spent on the 2010 midterms than was spent in 2004, which was a presidential election year.  Don’t think about this as money spent buying votes, but think instead of the broadcasters, publications, campaign ads, event companies, restaurants, and the political consultants that help to bring it all together.  It may continue to be a tough fight for the small business bloc to compete with big politics in this type of financial arena, so square up with some good allies.  BCA may be that great lineman to your business big or small when it comes to the pro-business grid iron.

Millennial Generation: We raised these kids, why can't we manage them?

“We raised these kids, why can’t we manage them,” was the salient quote from the recent lecture by Ron Alsop at the quarterly breakfast meeting provided by the Samford Brock School of Business. Alsop is certainly a noted and long time writer, and you may recognize his name as the business editor for the Wall Street Journal. He speaks frequently on the topics of corporate reputation, business education, and career development, but on this day, we learned about the “Millennial Generation.”


In his book entitled, “The Trophy Kids Grow Up,” Alsop writes at length on his research concerning the dynamic known as the millennial generation. Millennials are young adults born between 1980 and 2001. They are heralded to comprise a full 35% of our workforce in the next three years. Now is the time to appreciate how this huge driver of our workforce has been formed and what they have to offer. But first, take a pause and appreciate how they are different, and it doesn’t take long to see that the differences are marked.

Looking back since the early 1920’s we have seen several transitions in workforce trends. The Traditionalists (born 1925-1945) are clearly some of the most patriotic of our work force. The Baby Boomers (born 1946-1964) are those workaholics like me who take on way too much and wonder why there is so little free time. We love the effort and enjoy the output of our labors. Following the Boomers is the Generation X’ers (born 1965-1979) and they have a trend to tech savvy and latch key independence. Enter now to the workforce and the playground, the Millennial. This group has high self esteem born in the “they all get a trophy” competitive environment. Tech savvy? Please. They are tech savvy, multi-tasking super geeks with limited work place loyalty, but a parallel high civic mindedness. Dutifully watching over their millennial off spring is the seemingly ever present Helicopter parent. The Helicopter parent has been known to not only arbitrage for grades on behalf of their child in high school, but to attend a college interview when the child had a sporting event, and even ask to sit in on a job interview or two. Alsop reported parents that had requested that their travel to their child’s job interview also be covered, and how about an occasional “Parent Day” at work for good measure. This is truly an amazing shift as Alsop reminisced about us Baby Boomers being dropped off for college with a kiss, a wave, and a “see you at Thanksgiving.”

The young millennial in your office or home that are now nine years of age to thirty years of age are a force to be reckoned with as they are driven to succeed, prone to job hopping, and yet have very close parental ties. They seem to be less cynical at work than their predecessors, and because they like their parents, they also seem to like and get along with their managers. They are highly concerned with work life balance, and will take less money in the trade off for more fun. In a world where global competition is the name of the game, we would be advised to keep this in perspective as their Asian Millennial friends report that they are in fact less concerned with work/life balance and are ready to work. Time will tell, but this dynamic may change with work choice scarcity in the current recession for our job hopping, fun seeking employees.

A typical Millennial will state that they look at the work place as a social organization, not just a job, and they need to have fun. They report to be very credentials driven which is not surprising given their high self esteem. This group does not seem to have patience “paying their dues” and are not likely to desire the true entry level job. (It is this writers opinion that this is a great opportunity for the displaced Boomer who just love to work.) This seems to have been born in the environment where the driver is to get into a “good” college and all of the competition that goes along with this. Alsop reported that one parent interviewed had kept a spreadsheet of all their child’s accomplishments since kindergarten for inclusion in the interview process for college. Thus this group views the world as a “meritocracy” where you merit the advancement, and as such they are constantly asking for feedback. The challenge for employers is going to be a big one to retain the talent once you invest in the training of this group. Millennials want to be casual and enjoy work, and they make it clear that their lives come first, and jobs come second. Where did they get this idea? Probably from us workaholic Baby Boomers that give everything to work because “it matters”, only to find out in this current economy, you can in fact not just be replaced, but displaced and the company can do more with less.

There is a saying, “God gave you kids, because he isn’t finished with YOU yet.” This may be worth thinking about as we spend time raising and managing our Millennials.

Skunk works Smells Like Money

Now that we are through our elections,  it would be wise to take a pause and think for a moment about what trying times and the birth of true innovation can look like.  After all, our circumstances are not new.  We need to take a creative pause as well as deep breath and prepare to take a little risk and make some hard decisions about how we view innovation and creative change.  I learned of a term that is new to me, but for many of you reading today, perhaps it is not new to you.  Recall from the early 1940’s a strategy called Skunk works or skunkworks.  

            A skunkworks project is one typically developed by a small and loosely organized group of people who research and develop a project primarily for the sake of radical innovation.  Skunk works was born within the minds of the leadership of the Lockheed Aircraft Corporation in 1943 as they were tasked by the United States Government to build a jet fighter to counter a rapidly growing German jet threat.  In one month, based on the request, Clarence L. “Kelly” Johnson and his team of engineers at Lockheed are reputed to have developed a proposal, received a go-ahead with funding, and began development.  A formal contract for approval from the “powers that be” did not arrive until four months of project work had already been completed.  This type of Skunk Work strategy came to be known as the way to move forward with innovation quickly with only a handshake and rolling up your sleeves.  No contracts.  No official submittal process.  No slow meandering “take your time while we analyze this” complacency.  Skunkworks operates with a high degree of autonomy and unhampered by bureaucracy. 

Kelly is credited with operating the Skunk works effectively and efficiently albeit in an unconventional manner certainly.  He broke the rules, challenged the bureaucratic system and unleashed innovation.  End result:  Progress.  Skunk Works then is a small group of people who work on a project in an unconventional way.  The group's purpose is to develop something quickly with minimal management constraints.  Skunk Works are often used to initially roll out a product or service that thereafter will be developed according to usual business processes.

Although people have speculated that the name Skunkworks was inspired by the poor hygiene habits of overworked employees; it was really taken from the moonshine factory in the cartoon series "L'il Abner.”  Lockheed Martin has trademarked the name Skunk Works but they also refer to this type of project by the more formal name "Advanced Development Program" (ADP).  Kelly’s rule for innovation at Lockheed helped turn the face of a corporation answering the call of their country.  Perhaps it can help you innovate as you face the demands of your own business and customers.  Lockheed developed 14 basic rules for running an effective skunkwork.  I have modified them here to fit my general business needs.  Perhaps they will help you too as you innovate and create your own skunkwork for your organization.

1. The Skunk Works manager must be delegated practically complete control
2. Develop strong but small offices
3. The number of people having any connection with the project must be restricted in an almost vicious manner.  Use a small number of good people (10% to 25% compared to the so-called normal systems
4. Keep it simple for greater flexibility
5. Keep the paperwork way down, but do document the important things
6. Check your costs monthly to stay on top of expenses, commitments and what is needed to finish the project
7. Delegate to your project leader and give them greater than normal responsibility.   
8. Inspection and follow up are key, but do not duplicate effort
9. The leader must be delegated the authority to test his final product.  He can and must test it in the initial stages as well.
10. The specifications for the project must be decided immediately.
11. Funding a program must be timely so that the leader doesn't have to keep running to the bank to get support
12. There must be mutual trust between the project organization and the project leader with very close cooperation and liaison on a day-to-day basis.  This cuts down misunderstanding and correspondence to an absolute minimum.
13. Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.
14. Reward based on performance and nothing else