It is certainly the Holiday Season, with Christmas, Hanukkah, and Kwanzaa, and with certainly New Year celebrations scheduled all around the world. The grandkids are on Christmas vacation, and the gift shopping has certainly hit its peak. Decorations abound, travel is on the increase, the clerks are 'grumpy', over extension of money is as common as ever, the marketing of the holidays has reached a new level, but something is still different and it has nothing to do with the bustle of the Holidays or anticipation of 2008. There has been an astonishing negative progression toward the loss of Etiquette in the business world within our great country, as compared to other parts of the world.
Etiquette is made up of significantly more important things than knowing which fork to use at lunch with a client. In today's global world, the perception of others could make or break a relationship. As in every other business decision, the devil is in the details. If one cannot return a phone call or respond to an email communication, as a simple example, it is an easy transition to feel that one can't be trusted or have the necessary self-control to be good at what one does. Is everyone just too busy to respond? I doubt it.
Unfortunately, the lack of business etiquette, or even etiquette in general, has gotten lost with a generation of people. From the days (long ago) of teaching your children to say "Yes Sir, No Maam, etc" to the present day of simply no teaching within the home to encouragement of slang terms or tolerance of 'mere grunts' to school systems that simply go through the motions of discipline and the teaching of respect. From vendors to Manufacturer's Representatives to (unfortunately) customers and prospective customers, it just seems that no one is committed to a mutually beneficial relationship, but only committed to their own singular purpose.
Basic phone and email business etiquette has more to do with 'respect' than with right or wrong. It isn't difficult, even for selfish people who think their value is more than it's really worth. Always return calls! Even if you don't have an answer to a caller's question. Call and explain what the current situation is pertaining to the initial call, or direct the caller to the appropriate place to get it. If one is going to be out, have your office phone state that fact with a return date, or have someone pick up your calls. Make sure your voice mail system is working properly and doesn't tell the caller that the mailbox is full, transferring them to nowhere or ringing indefinitely.
With regards to emails, make the subject line specific! (a lesson learned from our Operations & Marketing Partner) Just think of the many messages you're received with generic subjects or no subjects. Don't forward messages with three pages of mail information; delete the extraneous information. Do respond in a timely manner.
Reflect on your business etiquette for this coming year; become 'old-fashion' with regards to how you return calls and respond to emails.
Have a great 2008!
Monday, December 31, 2007
Sunday, November 11, 2007
Volume 41 - Veteran's Day Tribute
To my Verteran Friends, who have given us so much.
"It is the VETERAN, not the preacher, who has given us freedom of religion.
It is the VETERAN, not the reporter, who has given us freedom of the press.
It is the VETERAN, not the poet, who has given us freedom of speech.
It is the VETERAN, not the campus organizer, who has given us freedom to assemble.
It is the VETERAN, not the lawyer, who has given us the right to a fair trial.
It is the VETERAN, not the politician, Who has given us the right to vote.
It is the VETERAN , who salutes the Flag, It is the veteran ,who serves under the Flag, MAY THEY REST IN PEACE. "
We can be very proud of our young men and women in the service no matter where they serve, and all those that went before. I SALUTE YOU ALL!
"It is the VETERAN, not the preacher, who has given us freedom of religion.
It is the VETERAN, not the reporter, who has given us freedom of the press.
It is the VETERAN, not the poet, who has given us freedom of speech.
It is the VETERAN, not the campus organizer, who has given us freedom to assemble.
It is the VETERAN, not the lawyer, who has given us the right to a fair trial.
It is the VETERAN, not the politician, Who has given us the right to vote.
It is the VETERAN , who salutes the Flag, It is the veteran ,who serves under the Flag, MAY THEY REST IN PEACE. "
We can be very proud of our young men and women in the service no matter where they serve, and all those that went before. I SALUTE YOU ALL!
Wednesday, October 31, 2007
Volume 40 - Business Double-Speak!
TV Station 21 WFMJ News Now
Broadcast at 11:00 p.m. news 10-31-07, quotation is taken from their website WFMJ.com
"Amweld Workers Get Bad News by Phone
Amweld in Niles is closing its doors officially today, a full two months earlier than expected.
Earlier this month Amweld officials announced plans to close plants on Niles and Garrettsville, sending those 250 jobs to Mexico.
The company also said at that time that it would negotiate the official shutdown date with its union whose contract expires in December.
Then, employees were called Wednesday, and were told to pick up their checks today, because the plant would be closed.
April Brooks, the wife of an Amweld worker says, "It's a shame. They got handed a letter on the 8th of October, and they were told that they would work a couple more months. And it's not even been 2 1/2 weeks and they locked the doors."
Employees say they're still uncertain about their pension and severance issues."
Another example of Business 'running-a-muck' and feeding the public with 'Double-Speak'. Another story about alleged foreign competition and 'market-place necessity' due to labor rates.
Another story about losing jobs to off-shore manufacturers but yet simply another excuse that hides ownership/management/'over capitalization flaws' brought on by greed and stupidity.
It's simply amazing what the topic of 'Globalization' can hide, for behind the curtain is the truth, and like the Wizard in the Wizard of Oz, just human error and greed.
Fact: When companies get over-capitalized, paying for something not worth the value expended, the cost factor never gets balanced
Fact: Labor is still a percent of overall cost; as in the case of McDonald's it's 15%, as in the case of Amweld, seven years ago, 12%. And, even if it were 20% there remains another 80% to be managed correctly
Fact: All other material costs, such as steel, have been spot market buys for decades which actually evens the 'playing field' to all participants
When arguing 'Globalization', make sure what the argument is exactly about, 'peel back the onion' to expose the truth rather than simply attempting to 'double-speak' the real issue away.
As so correctly stated by Forrest Gump, "Stupid is as stupid does"
Sunday, September 30, 2007
Volume 39 - "If passion drives you, let reason hold the reigns."
Previously, Volume 35 - Passion and the i.2 Brand, I've discussed the 'passion' necessary for the survival and growth of a company, and woven in those layers, the delicate but vital part the entrepreneurial owner-partners play in that overall pattern. As one 'peels the onion back' further, looking more into the depth of that discussion, one finds that the 'decision making processes' based on 'reason' is as a difficult proposition, and arguably more important, as driving the company with flaming passion.
It has always been interesting to observe the door and hardware industry from the viewpoint of an observer and consider how different manufacturers, within the same industry, serving the same market segments, paying the same wages, and recruiting from the same labor pool, with virtually the same product can have such extraordinarily different levels of service, respect (or lack of) for their base customers, and the arena which they operate.
So why is it that people at some manufacturers/suppliers make the choice of customer excellence while people elsewhere choose to be average or simply mediocre? I believe that it has as much to do with 'the decision making process' as much as 'individual passion.' The decision making process, regardless of the importance of the individual decisions, is a direct factor of overall culture that starts with ownership and management and is reinforced daily on 'good' days as well as 'bad.'
Owners, anyone with any % of the company, must be willing to invest in the physical product and the systems necessary to facilitate service efficiency, and in the case of a 'start-up' this action doesn't have to take place at the same time (reasonable decision making) based on a multitude of various factors, such as cash flow; nevertheless, both 'decision making' and 'passion' remain the driving force in the implementation of a successful enterprise. It is hard to deliver excellence in service and product when one is selling a customer a sub-standard product, and/or unable to satisfy long-term type customers without the proper technology systems. It is however impossible to deliver anything near excellence without a decision process that applauds not accepting the status quo, and challenging the stupidity of 'this is the way it has always been done.'
It is just as important, or possibly more so, to be able to make decisions that affect people through this same sort of process. For example, it is very easy for me to give an 'OK' to a question regarding any area of our business without regard for the total picture and implications in a 'passing' type conversation. It is very easy for me, as the managing partner, to answer a question without regard to what decisions are going to be made because of my response (again, without regard to the total picture - again avoiding 'the decision process'). I believe this not to be unusual. I'm very action orientated; have little or no regard for time-consuming projects or analysis. 'The ball must be driven down the field at any cost mentality,' and yet then wonder why the project wasn't up to established standards or wonder why the end result had so much collateral damage attached to it.
The fact of the matter is that as much as I personally detest organizational structure, individual growth and end results are in jeopardy by not following correct 'decision making procedures', challenging the status quo, and the 'quick' response answer to simply get onto another subject. One will inadvertently extinguish the 'passion' when not holding to 'reason' and due process. Reason mixed with total openness and collaboration ignites 'passion.' One can still maintain a great deal of flexibility, freedom, and speed with the right mixture of 'decision making process' and reason. Executed correctly this mixture will dilute the old ways of business ( 'this is the way it always has been done'), simply an excuse for not performance. A 'fresh set of eyes,' pushing the envelop and asking 'why' must be cultivated and part of that cultivation involves not suppressing 'reason' and a correct process for decisions other that 'shooting from the hip.' Difficult to admit from one of the original OK corral gun fighters.
It has always been interesting to observe the door and hardware industry from the viewpoint of an observer and consider how different manufacturers, within the same industry, serving the same market segments, paying the same wages, and recruiting from the same labor pool, with virtually the same product can have such extraordinarily different levels of service, respect (or lack of) for their base customers, and the arena which they operate.
So why is it that people at some manufacturers/suppliers make the choice of customer excellence while people elsewhere choose to be average or simply mediocre? I believe that it has as much to do with 'the decision making process' as much as 'individual passion.' The decision making process, regardless of the importance of the individual decisions, is a direct factor of overall culture that starts with ownership and management and is reinforced daily on 'good' days as well as 'bad.'
Owners, anyone with any % of the company, must be willing to invest in the physical product and the systems necessary to facilitate service efficiency, and in the case of a 'start-up' this action doesn't have to take place at the same time (reasonable decision making) based on a multitude of various factors, such as cash flow; nevertheless, both 'decision making' and 'passion' remain the driving force in the implementation of a successful enterprise. It is hard to deliver excellence in service and product when one is selling a customer a sub-standard product, and/or unable to satisfy long-term type customers without the proper technology systems. It is however impossible to deliver anything near excellence without a decision process that applauds not accepting the status quo, and challenging the stupidity of 'this is the way it has always been done.'
It is just as important, or possibly more so, to be able to make decisions that affect people through this same sort of process. For example, it is very easy for me to give an 'OK' to a question regarding any area of our business without regard for the total picture and implications in a 'passing' type conversation. It is very easy for me, as the managing partner, to answer a question without regard to what decisions are going to be made because of my response (again, without regard to the total picture - again avoiding 'the decision process'). I believe this not to be unusual. I'm very action orientated; have little or no regard for time-consuming projects or analysis. 'The ball must be driven down the field at any cost mentality,' and yet then wonder why the project wasn't up to established standards or wonder why the end result had so much collateral damage attached to it.
The fact of the matter is that as much as I personally detest organizational structure, individual growth and end results are in jeopardy by not following correct 'decision making procedures', challenging the status quo, and the 'quick' response answer to simply get onto another subject. One will inadvertently extinguish the 'passion' when not holding to 'reason' and due process. Reason mixed with total openness and collaboration ignites 'passion.' One can still maintain a great deal of flexibility, freedom, and speed with the right mixture of 'decision making process' and reason. Executed correctly this mixture will dilute the old ways of business ( 'this is the way it always has been done'), simply an excuse for not performance. A 'fresh set of eyes,' pushing the envelop and asking 'why' must be cultivated and part of that cultivation involves not suppressing 'reason' and a correct process for decisions other that 'shooting from the hip.' Difficult to admit from one of the original OK corral gun fighters.
Monday, August 20, 2007
Volume 38 - Consolidation within our Industry
Chrysler was ‘bailed-out’ for billions, ‘laid off and cut back’, sold to Daimler for 36 billion, and proceeded to loose a similar amount of money, and was recently separated back out for 7 billion by a private investment group. Hewitt-Packard and Compaq decided that it was in the best interest of ‘stockholders’ to merge and ‘be acquired’, as well as Alamo & National, and now, in my favor sport, NASCAR, with the merging of Fenway-Roush, Ginn and DEI, and just last week, Gillette and Evernham, one should be getting the picture that M&A, along with Consolidation, is the way of the world, for 'good or evil', 'better or worse'.
One has to wonder as to the state of our industry and its outlook for the future. What follows is a look at consolidation and its impact on the industry, customers, manufacturers and distributors based on my two decades of experience in the door and hardware industry, and now founder of a private labeled architectural hardware company.
There are essentially three types of integration that have been taking place over the years: 1) financial-driven integration, with financial companies buying door and hardware companies to wit no successful outcomes have occurred over the long run, just more good money following bad money to keep the 'house of cards' erect; 2) door companies that are buying distributors and other door companies to wit another ‘blood trail’ of financial losses; and 3) hardware companies that are buying more lines of hardware, as well as door companies, to wit smaller more defined lines of distribution, and more control of pricing for the ‘giants’, with less opportunity for the Independent Entrepreneurs attempting to survive industry consolidation.
Financial-driven integration started several years ago when a couple of financial consolidators entered the marketplace and recognized the high degree of fragmentation, particularly at the distribution level. Not unlike a lot of players within many other industries, these businesses initiated a rollup campaign to raise capital market funds.
The whole strategy was premised upon building critical mass as quickly as possible and using it to improve purchase discounts and leverage their buying power with suppliers; today taking place with the ‘Giant from London', Stock, using both the residential and commercial distribution channel as their vehicle. Profitability was enhanced by consolidation functions such as sales, general and administrative costs (SG&A), manufacturing overheads, purchasing and engineering. Several of these financial companies, which started seven years ago when the capital markets were much more receptive, have proven to be flawed exercises. Not only did the capital markets turn a cold shoulder to these types of endeavors, regardless of what industry they’re in, but additional problems arose while integrating the former independently run companies with the door and hardware industry into one cohesive operating unit.
The flaw in this structure is now and will always be, if one of the businesses in the portfolio is doing well in creating equity value and another business is not doing well and detracting from equity value, the overall value of the company is neutralized. The result is a conglomeration of companies which, in return, have tended to create significant cultural strife; the value of horizontal integration versus vertical integration.
As I’ve state in previous articles, and is now realized by some door companies, simply rafting together a mix of door companies to be a dominant player with cost savings isn’t enough. It takes more than that in today’s “value added” competitive marketplace. This would be true of consolidating any type of distributor for the sake of simple consolidation.
It seems that the so-called successful consolidators, particularly at the manufacturing level have done little to nurture the entrepreneurial spirit of the acquired company; and, certainly have failed in their attempt at creating a variety of products and services while matching up corporate cultures. With regards to the distributor side of the coin, they have only limited and, in most cases, disrupted the independent distributor network. This is now becoming a market of not only captive distribution but limiting distribution with skeptical pricing practices with regards to large projects. This is becoming more apparent everyday with large hardware companies buying specialty brand hardware lines, and then limiting the distribution of specific products within the distribution channels as to not only product but price.
Unfortunately, the end-user (including the Owner-Developer-School Board-Architect-Specifier-Designer-Builder), as well as the most important link in the supply chain, the ‘expert’ that actually adds value, distributor (Locksmith and Contract Door Hardware house) have diminishing values to the large manufacturers and consolidators. It has ALWAYS been the ability of the distributor, contract hardware house or locksmith, to take a product, add value to it, keep the customer in focus and build the relationship.
This should not be a surprise. The key to the successful future of our industry is, and will continue to be, independent, entrepreneurial distributors who can take product, of their choosing at competitive pricing, add value to it, maintain a customer focus and build relationships. Too bold a prediction at a time when the M&A pace has quickened? Not at all, because, contrary to the others who view the distributor as the last step in a necessarily “evil” process, our business always has been one of strong distributor-customer trust relationships; and, a successful future holds the same whether you are a locksmith or a NASCAR team.
One has to wonder as to the state of our industry and its outlook for the future. What follows is a look at consolidation and its impact on the industry, customers, manufacturers and distributors based on my two decades of experience in the door and hardware industry, and now founder of a private labeled architectural hardware company.
There are essentially three types of integration that have been taking place over the years: 1) financial-driven integration, with financial companies buying door and hardware companies to wit no successful outcomes have occurred over the long run, just more good money following bad money to keep the 'house of cards' erect; 2) door companies that are buying distributors and other door companies to wit another ‘blood trail’ of financial losses; and 3) hardware companies that are buying more lines of hardware, as well as door companies, to wit smaller more defined lines of distribution, and more control of pricing for the ‘giants’, with less opportunity for the Independent Entrepreneurs attempting to survive industry consolidation.
Financial-driven integration started several years ago when a couple of financial consolidators entered the marketplace and recognized the high degree of fragmentation, particularly at the distribution level. Not unlike a lot of players within many other industries, these businesses initiated a rollup campaign to raise capital market funds.
The whole strategy was premised upon building critical mass as quickly as possible and using it to improve purchase discounts and leverage their buying power with suppliers; today taking place with the ‘Giant from London', Stock, using both the residential and commercial distribution channel as their vehicle. Profitability was enhanced by consolidation functions such as sales, general and administrative costs (SG&A), manufacturing overheads, purchasing and engineering. Several of these financial companies, which started seven years ago when the capital markets were much more receptive, have proven to be flawed exercises. Not only did the capital markets turn a cold shoulder to these types of endeavors, regardless of what industry they’re in, but additional problems arose while integrating the former independently run companies with the door and hardware industry into one cohesive operating unit.
The flaw in this structure is now and will always be, if one of the businesses in the portfolio is doing well in creating equity value and another business is not doing well and detracting from equity value, the overall value of the company is neutralized. The result is a conglomeration of companies which, in return, have tended to create significant cultural strife; the value of horizontal integration versus vertical integration.
As I’ve state in previous articles, and is now realized by some door companies, simply rafting together a mix of door companies to be a dominant player with cost savings isn’t enough. It takes more than that in today’s “value added” competitive marketplace. This would be true of consolidating any type of distributor for the sake of simple consolidation.
It seems that the so-called successful consolidators, particularly at the manufacturing level have done little to nurture the entrepreneurial spirit of the acquired company; and, certainly have failed in their attempt at creating a variety of products and services while matching up corporate cultures. With regards to the distributor side of the coin, they have only limited and, in most cases, disrupted the independent distributor network. This is now becoming a market of not only captive distribution but limiting distribution with skeptical pricing practices with regards to large projects. This is becoming more apparent everyday with large hardware companies buying specialty brand hardware lines, and then limiting the distribution of specific products within the distribution channels as to not only product but price.
Unfortunately, the end-user (including the Owner-Developer-School Board-Architect-Specifier-Designer-Builder), as well as the most important link in the supply chain, the ‘expert’ that actually adds value, distributor (Locksmith and Contract Door Hardware house) have diminishing values to the large manufacturers and consolidators. It has ALWAYS been the ability of the distributor, contract hardware house or locksmith, to take a product, add value to it, keep the customer in focus and build the relationship.
This should not be a surprise. The key to the successful future of our industry is, and will continue to be, independent, entrepreneurial distributors who can take product, of their choosing at competitive pricing, add value to it, maintain a customer focus and build relationships. Too bold a prediction at a time when the M&A pace has quickened? Not at all, because, contrary to the others who view the distributor as the last step in a necessarily “evil” process, our business always has been one of strong distributor-customer trust relationships; and, a successful future holds the same whether you are a locksmith or a NASCAR team.
Wednesday, July 25, 2007
Volume 37 - Watch how you vote!
It seems to me highly ridiculous that we are involved in national elections, over a year before actual voting takes place. Everyday on the 'nightly news' we are bombarded with 'who has raised the most millions' in this run for the "House". We're repeatedly filled with alleged facts and figures of how all of 'our problems' can be solved (again) from national health care (including paid health care for illegal immigrants) to taxing the rich, to the end of the war, to a 'chicken in every oven', from the ridiculously to the sublime.
The last time I looked we were the strongest, richest most influential nation in the world (although now 16th world ranking in education with declining high school graduation rate, with a dwindling post graduate rate in math and science) with less than 5% unemployment, more availability of food, entertainment, clean water then any nation in the universe, a record Stock market, productivity (still) 'second to none', the most freedom in the world, as well as the most opportunity available to those who desire to work and 'risk'; still, due to media hatred, our President is recognized as 'stupid' with a rating lower than any other president in history, and the rest of the world viewing us as 'spoiled brats' that have nothing better to do than too complain. Chicken Little is alive and well with these political aspirants, and yet on major issues, as in the aforementioned Education comment, protection of our Borders, a workable foreign policy, cooperation with emerging nations, and the firmness needed in dealing with the real threat of terrorism, we hear nothing of substance from them. And, maybe above all, we have already forgotten 911, and in no way are prepared to fight terrorism on our soil as we will have too!
We have forgotten the 63 lives taken in 1983 at the US Embassy compound in Beirut. We have forgotten the 241 US servicemen killed at the US Marine Corps headquarters in Beirut only six months later. We have forgotten the attacks at the US Embassy in Kuwait the same year and the attack the following year at the US Embassy in Beirut and the 1985 restaurant bombing in Madrid, and the 1985 bombings at the US Air Force Base at Rhein-Main where 22 died. We have forgotten the 1985 Achille Lauro hijacking where an American in a wheelchair was singled out and executed. Somehow we have forgotten the TWA Flight 840 bombing that killed four and the Pan Am Flight 103 that killed 259. In case you have forgotten, in 1993 two CIA agents were shot and killed as they entered CIA headquarters in Langley. World Trade Center 1993 six killed and over a thousand injured. 1995 US military complex in Riyadh, Saudi Arabia car bomb killed seven service personnel. 1996 truck bomb US military compound in Dhahran, Saudi Arabia that destroys the Khobar Towers, a US Air Force barracks, killing 19 and injuring over 500. US embassies in Kenya and Tanzania are attacked leaving 224 people dead. October 2000 the USS Cole is bombed leaving 17 US Navy Sailors dead.........and, I haven't even got to 911!
Therefore, a little story as I remember our past history, where we as a nation used to act decisively, as some emerging nations now do...so, read both stories, sit back and think, then act.
The Story: ANT AND THE GRASSHOPPER
PART ONE: THE OLD VERSION (USA 50's, 60's and some of the 70's)
The ant works hard in the withering heat all summer long, building his
house and laying up supplies for the winter.
The grasshopper thinks the ant is a fool and laughs and dances and
plays the summer away.
Come winter, the ant is warm and well fed.
The grasshopper has no food or shelter, so he dies out in the cold.
MORAL OF THE STORY : Be responsible for yourself!
PART TWO: UPDATED VERSION (USA past three decades)
The ant works hard in the withering heat all summer long, building his
house and laying up supplies for the winter.
The grasshopper thinks the ant is a fool and laughs and dances and
plays the summer away.
Come winter, the shivering grasshopper calls a press conference and
demands to know why the ant should be warm and well fed while others
are cold and starving.
CBS, NBC, PBS, CNN, and ABC show up to provide pictures of the
shivering grasshopper next to a video of the ant in his comfortable
home with a table filled with food. America is stunned by the sharp
contrast.
How can this be, that in a country of such wealth, this poor
grasshopper is allowed to suffer so?
Kermit the Frog appears on Oprah with the grasshopper, and everybody
cries when they sing, "It's Not Easy Being Green."
Jesse Jackson and Reverend Al Sharpton stage demonstrations in front of the ant's house where the news stations film the group singing, "We shall overcome." Jesse then has the group kneel down to pray to God for the grasshopper's sake. And Rev Al works on getting the Ant fired from his work.
Nancy Pelosi, John Kerry, and Senator Harry Reid, Senate Majority Leader exclaim in an interview with Larry King that the ant has gotten rich off the back of the grasshopper, and both call for an immediate tax hike on the ant to make him pay his fair share.
Finally, the EEOC drafts the Economic Equity and Anti-Grasshopper Act
retroactive to the beginning of the summer. The ant is fined for
failing to hire a proportionate number of green bugs and, having
nothing left to pay his retroactive taxes, his home is confiscated by
the government.
Hillary gets her old law firm to represent the grasshopper in a
defamation suit against the ant, and the case is tried before a panel
of federal judges that Bill Clinton appointed from a list of
single-parent welfare recipients.
The ant loses the case.
The story ends as we see the grasshopper finishing up the last bits of
the ant's food while the government house he is in, which just happens
to be the ant's old house, crumbles around him because he doesn't
maintain it. The ant has disappeared in the snow. The grasshopper is
found dead in a drug related incident and the house, now abandoned, is
taken over by a gang of spiders who terrorize the once peaceful
neighborhood.
MORAL OF THE STORY : Be careful how you vote!!
The last time I looked we were the strongest, richest most influential nation in the world (although now 16th world ranking in education with declining high school graduation rate, with a dwindling post graduate rate in math and science) with less than 5% unemployment, more availability of food, entertainment, clean water then any nation in the universe, a record Stock market, productivity (still) 'second to none', the most freedom in the world, as well as the most opportunity available to those who desire to work and 'risk'; still, due to media hatred, our President is recognized as 'stupid' with a rating lower than any other president in history, and the rest of the world viewing us as 'spoiled brats' that have nothing better to do than too complain. Chicken Little is alive and well with these political aspirants, and yet on major issues, as in the aforementioned Education comment, protection of our Borders, a workable foreign policy, cooperation with emerging nations, and the firmness needed in dealing with the real threat of terrorism, we hear nothing of substance from them. And, maybe above all, we have already forgotten 911, and in no way are prepared to fight terrorism on our soil as we will have too!
We have forgotten the 63 lives taken in 1983 at the US Embassy compound in Beirut. We have forgotten the 241 US servicemen killed at the US Marine Corps headquarters in Beirut only six months later. We have forgotten the attacks at the US Embassy in Kuwait the same year and the attack the following year at the US Embassy in Beirut and the 1985 restaurant bombing in Madrid, and the 1985 bombings at the US Air Force Base at Rhein-Main where 22 died. We have forgotten the 1985 Achille Lauro hijacking where an American in a wheelchair was singled out and executed. Somehow we have forgotten the TWA Flight 840 bombing that killed four and the Pan Am Flight 103 that killed 259. In case you have forgotten, in 1993 two CIA agents were shot and killed as they entered CIA headquarters in Langley. World Trade Center 1993 six killed and over a thousand injured. 1995 US military complex in Riyadh, Saudi Arabia car bomb killed seven service personnel. 1996 truck bomb US military compound in Dhahran, Saudi Arabia that destroys the Khobar Towers, a US Air Force barracks, killing 19 and injuring over 500. US embassies in Kenya and Tanzania are attacked leaving 224 people dead. October 2000 the USS Cole is bombed leaving 17 US Navy Sailors dead.........and, I haven't even got to 911!
Therefore, a little story as I remember our past history, where we as a nation used to act decisively, as some emerging nations now do...so, read both stories, sit back and think, then act.
The Story: ANT AND THE GRASSHOPPER
PART ONE: THE OLD VERSION (USA 50's, 60's and some of the 70's)
The ant works hard in the withering heat all summer long, building his
house and laying up supplies for the winter.
The grasshopper thinks the ant is a fool and laughs and dances and
plays the summer away.
Come winter, the ant is warm and well fed.
The grasshopper has no food or shelter, so he dies out in the cold.
MORAL OF THE STORY : Be responsible for yourself!
PART TWO: UPDATED VERSION (USA past three decades)
The ant works hard in the withering heat all summer long, building his
house and laying up supplies for the winter.
The grasshopper thinks the ant is a fool and laughs and dances and
plays the summer away.
Come winter, the shivering grasshopper calls a press conference and
demands to know why the ant should be warm and well fed while others
are cold and starving.
CBS, NBC, PBS, CNN, and ABC show up to provide pictures of the
shivering grasshopper next to a video of the ant in his comfortable
home with a table filled with food. America is stunned by the sharp
contrast.
How can this be, that in a country of such wealth, this poor
grasshopper is allowed to suffer so?
Kermit the Frog appears on Oprah with the grasshopper, and everybody
cries when they sing, "It's Not Easy Being Green."
Jesse Jackson and Reverend Al Sharpton stage demonstrations in front of the ant's house where the news stations film the group singing, "We shall overcome." Jesse then has the group kneel down to pray to God for the grasshopper's sake. And Rev Al works on getting the Ant fired from his work.
Nancy Pelosi, John Kerry, and Senator Harry Reid, Senate Majority Leader exclaim in an interview with Larry King that the ant has gotten rich off the back of the grasshopper, and both call for an immediate tax hike on the ant to make him pay his fair share.
Finally, the EEOC drafts the Economic Equity and Anti-Grasshopper Act
retroactive to the beginning of the summer. The ant is fined for
failing to hire a proportionate number of green bugs and, having
nothing left to pay his retroactive taxes, his home is confiscated by
the government.
Hillary gets her old law firm to represent the grasshopper in a
defamation suit against the ant, and the case is tried before a panel
of federal judges that Bill Clinton appointed from a list of
single-parent welfare recipients.
The ant loses the case.
The story ends as we see the grasshopper finishing up the last bits of
the ant's food while the government house he is in, which just happens
to be the ant's old house, crumbles around him because he doesn't
maintain it. The ant has disappeared in the snow. The grasshopper is
found dead in a drug related incident and the house, now abandoned, is
taken over by a gang of spiders who terrorize the once peaceful
neighborhood.
MORAL OF THE STORY : Be careful how you vote!!
Monday, June 25, 2007
Volume 36 - Price Fixing and Collusion
It seems to me that there is a great deal of collusion within the writing of specifications, the 'special pricing' of manufacturers, and the selectivity of 'who can and who cannot' bid projects with those special pricing numbers. And, if that is not 'collusion and price fixing' then someone ought to explain the concept to me.
The owners and developers of projects, practically all size commercial construction work, have a difficult time understanding, why the pricing of certain divisions, within the construction industry, have such high cost numbers (by the time the owner pays for them) and so very few people bidding their project. Well, let me explain a 'dirty little secret' that exists in Division 8 between the architects, specifiers, and certain manufacturers, that 'limitations' are built into the process. For example, a small 150 room hotel in South Bend, Indiana, only three bids were accepted, division 8 steel and wood doors and door hardware, all from three distributors carrying the very same door hardware product line. Another in Orlando, Florida when a manufacturer selectively gives out 'special pricing' only upon request and only to the 'chosen few', delaying any other requests or lowering discounts points for other interested distributors. Free enterprise exhibited at it's best. One has to give Assa Abloy and IR credit, they have spent hundreds of millions of dollars limiting the playing field.
It reminds me of a letter I received from Mr. David R. Nolan, Nolan Door & Hardware Company, Inc., on September 17, 2002 (If it weren't framed and hanging in our lobby, I would have scanned it into this blog) that states, and I quote after the greeting:
"What a week we just had! The story starts more than a year ago and is somewhat involved but, I'll share with you the short version. A year ago we were buying and selling Falcon locks, LCN closers and so forth. Ingersoll-Rand (actually Andrew White) approached us with several 'buying programs' involving Schlage, none of which were acceptable to us. Our objections were based on the pricing structure and the exclusivity; we were to give them all of our lock, closer and panic business. We found this repugnant to say the least and, as you probably know by now, told them to take their I-R package and....!
We were concerned then, and more now, by their insistence on monitoring all that we bid and sold. We are appalled at their unabashed disdain for distributors and their new posturing to sell institutions directly. Since we cannot condone that marketing strategy, we cannot support them anymore by purchasing their products.
It seemed that Assa-Abloy was the way to go, specifically Yale. While there was no stated requirement to buy the whole line, there is an ambitious annual purchasing goal. We accepted their buying program and went on our way selling their locks, your panics, your hinges and your closers. From time to time, mostly because of specifications, we would use their full line.
Late last week, we received a fax informing us that our buying program had been changed and, not in our favor. The stated reason, when I asked the representative what was going on,, was that our volume did not warrant the previous discount structure even though we have been opened up with them for less than one year. As the conversation continued, the real reason for the change in our program had more to do with the suppliers that we have chosen for our panics, closers and hinges. It was not stated that our program would be reinstated and/or improved if we were to change to all Yale but, that was the feeling that we were left with.
We refuse to be forced into buying from anyone. We believe in free enterprise and will continue to practice that. We also still firmly believe in the concept of loyalty to suppliers who have brought us this far even though in today's business world, this seems to be somewhat archaic.
The point of all of this is simply that we no longer have access to a lock line at competitive prices. Our cost on a Grade II cylindrical lock has increased by 80% in the past twelve months.
Do not, for a moment, think that this is about Nolan Door & Hardware Company; it's about all of us! We will have to rely more heavily than before on you to keep us a viable source of commercial and architectural hardware in our marketplace. I don't want to sound to 'Knute Rockne' but, it is indeed up to us to face this challenge in our industry.
It is my belief that we can and will but no one's going to do it alone. I am putting my complete confidence in you and our ability to continue to work together.
Hopefully yours,
David R. Nolan"
I often read that letter in attempting to understand our industry, and the importance that the distributor plays within the commercial construction arena, especially within Division 8 products. Independence2, LLC, with it's i.2 trademarked private labeled architectural hardware, is where door hardware meets value, where the distributor will always be respected, and where we have as much interest in their 'bottom line' as in ours, for they are the true key to this industry's long-term success and to the end user's satisfaction.
The owners and developers of projects, practically all size commercial construction work, have a difficult time understanding, why the pricing of certain divisions, within the construction industry, have such high cost numbers (by the time the owner pays for them) and so very few people bidding their project. Well, let me explain a 'dirty little secret' that exists in Division 8 between the architects, specifiers, and certain manufacturers, that 'limitations' are built into the process. For example, a small 150 room hotel in South Bend, Indiana, only three bids were accepted, division 8 steel and wood doors and door hardware, all from three distributors carrying the very same door hardware product line. Another in Orlando, Florida when a manufacturer selectively gives out 'special pricing' only upon request and only to the 'chosen few', delaying any other requests or lowering discounts points for other interested distributors. Free enterprise exhibited at it's best. One has to give Assa Abloy and IR credit, they have spent hundreds of millions of dollars limiting the playing field.
It reminds me of a letter I received from Mr. David R. Nolan, Nolan Door & Hardware Company, Inc., on September 17, 2002 (If it weren't framed and hanging in our lobby, I would have scanned it into this blog) that states, and I quote after the greeting:
"What a week we just had! The story starts more than a year ago and is somewhat involved but, I'll share with you the short version. A year ago we were buying and selling Falcon locks, LCN closers and so forth. Ingersoll-Rand (actually Andrew White) approached us with several 'buying programs' involving Schlage, none of which were acceptable to us. Our objections were based on the pricing structure and the exclusivity; we were to give them all of our lock, closer and panic business. We found this repugnant to say the least and, as you probably know by now, told them to take their I-R package and....!
We were concerned then, and more now, by their insistence on monitoring all that we bid and sold. We are appalled at their unabashed disdain for distributors and their new posturing to sell institutions directly. Since we cannot condone that marketing strategy, we cannot support them anymore by purchasing their products.
It seemed that Assa-Abloy was the way to go, specifically Yale. While there was no stated requirement to buy the whole line, there is an ambitious annual purchasing goal. We accepted their buying program and went on our way selling their locks, your panics, your hinges and your closers. From time to time, mostly because of specifications, we would use their full line.
Late last week, we received a fax informing us that our buying program had been changed and, not in our favor. The stated reason, when I asked the representative what was going on,, was that our volume did not warrant the previous discount structure even though we have been opened up with them for less than one year. As the conversation continued, the real reason for the change in our program had more to do with the suppliers that we have chosen for our panics, closers and hinges. It was not stated that our program would be reinstated and/or improved if we were to change to all Yale but, that was the feeling that we were left with.
We refuse to be forced into buying from anyone. We believe in free enterprise and will continue to practice that. We also still firmly believe in the concept of loyalty to suppliers who have brought us this far even though in today's business world, this seems to be somewhat archaic.
The point of all of this is simply that we no longer have access to a lock line at competitive prices. Our cost on a Grade II cylindrical lock has increased by 80% in the past twelve months.
Do not, for a moment, think that this is about Nolan Door & Hardware Company; it's about all of us! We will have to rely more heavily than before on you to keep us a viable source of commercial and architectural hardware in our marketplace. I don't want to sound to 'Knute Rockne' but, it is indeed up to us to face this challenge in our industry.
It is my belief that we can and will but no one's going to do it alone. I am putting my complete confidence in you and our ability to continue to work together.
Hopefully yours,
David R. Nolan"
I often read that letter in attempting to understand our industry, and the importance that the distributor plays within the commercial construction arena, especially within Division 8 products. Independence2, LLC, with it's i.2 trademarked private labeled architectural hardware, is where door hardware meets value, where the distributor will always be respected, and where we have as much interest in their 'bottom line' as in ours, for they are the true key to this industry's long-term success and to the end user's satisfaction.
Friday, May 25, 2007
Volume 35 - Passion and the i.2 Brand
As Charlie Staples says "I add an extra cup of love, that makes my barbecue sauce something special." At the corner of Rayen and Belmont Avenue in Youngstown, Ohio houses a little barbecue joint, owned and operated by one Charlie Staples. His "secret sauce" is his "cup of love", just like "good too the last drop" is Maxwell House's, as well as hundreds of other sayings and slogans to make the customer's experience special.
It isn't any different in the world of Business to Business, when the end user is one step removed. As a private labeled architectural hardware supplier using various revenue streams, in which our product is then resold to the end-user, it still matters that our company enhances 'passion and the brand.' In fact, it could be argued that without these ingredients one would not succeed. Even if a product is technically sound and 'works' (that is expected, so no 'applause' for that achievement), it's the 'passion', drive, energy, attitude and resourcefulness of the people associated with the 'brand' that counts.
Hanging on my office wall is a autographed picture of the guys that made up the resourceful advertising agency DMB&B. The article that was signed was a story (about them) entitled "It Ain't The Meat, It's The Emotion." Done in the early 80's, the guys who worked on the Burger King account strived to do it 'like you wouldn't do it.' But they turned out to be the best dudes for fast times! It truly is about the Emotion, Passion and Drive that separates companies. For those that manage companies that have this unique style, it might also be the ingredient that drives the managing partner 'over the hill', but let the people run; let them solve there own interactive problems, let them know they have the support to experiment, to achieve, as long as individual respect is maintained, and the team is always intact. Connecting these people to the brand in a positive way is the essence of an effective brand, which, 'when it works', is as tangible an asset as brick and mortar. Mix this concoction with a product that works, a marketing program that is innovative, always watching and understanding the cost structure, and the outline of a 'money machine' is in place.
Having stated all of the above, don't be so naive to think that its implementation is the equivalent of a 'walk in the park'; more like the climbing of Mt Everest in the winter! Look at all the really successful companies that exist. Not the ones that grow through M & A, then bubble and explode through 'top number' stupidity, but the ones that really understand and grasp the ability of an individual, and the courage to let them 'run'. Legendary brand builders have focused on building a culture and an internal brand that will sustain profitable growth for decades.
I like to think that we are in the process of creating this environment within i.2, even at this early stage of development, not only with our group of 'owner partners' but with the standards in place for others to join our organization; certainly not 'business as usual'. A 'greenfield' or start-up from a 'clean sheet of paper' concept certainly has its moments, but the ability to construct the functional benefits of a product that consistently works with the emotional benefits produced only by an extraordinary group of people marks the path of a formidable brand.
It isn't any different in the world of Business to Business, when the end user is one step removed. As a private labeled architectural hardware supplier using various revenue streams, in which our product is then resold to the end-user, it still matters that our company enhances 'passion and the brand.' In fact, it could be argued that without these ingredients one would not succeed. Even if a product is technically sound and 'works' (that is expected, so no 'applause' for that achievement), it's the 'passion', drive, energy, attitude and resourcefulness of the people associated with the 'brand' that counts.
Hanging on my office wall is a autographed picture of the guys that made up the resourceful advertising agency DMB&B. The article that was signed was a story (about them) entitled "It Ain't The Meat, It's The Emotion." Done in the early 80's, the guys who worked on the Burger King account strived to do it 'like you wouldn't do it.' But they turned out to be the best dudes for fast times! It truly is about the Emotion, Passion and Drive that separates companies. For those that manage companies that have this unique style, it might also be the ingredient that drives the managing partner 'over the hill', but let the people run; let them solve there own interactive problems, let them know they have the support to experiment, to achieve, as long as individual respect is maintained, and the team is always intact. Connecting these people to the brand in a positive way is the essence of an effective brand, which, 'when it works', is as tangible an asset as brick and mortar. Mix this concoction with a product that works, a marketing program that is innovative, always watching and understanding the cost structure, and the outline of a 'money machine' is in place.
Having stated all of the above, don't be so naive to think that its implementation is the equivalent of a 'walk in the park'; more like the climbing of Mt Everest in the winter! Look at all the really successful companies that exist. Not the ones that grow through M & A, then bubble and explode through 'top number' stupidity, but the ones that really understand and grasp the ability of an individual, and the courage to let them 'run'. Legendary brand builders have focused on building a culture and an internal brand that will sustain profitable growth for decades.
I like to think that we are in the process of creating this environment within i.2, even at this early stage of development, not only with our group of 'owner partners' but with the standards in place for others to join our organization; certainly not 'business as usual'. A 'greenfield' or start-up from a 'clean sheet of paper' concept certainly has its moments, but the ability to construct the functional benefits of a product that consistently works with the emotional benefits produced only by an extraordinary group of people marks the path of a formidable brand.
Sunday, April 22, 2007
Volume 34 - Virginia Tech
With the terrible tragedy that took place last week at Virginia Tech, one of our talented members, a former Virginian, Ms Bonnie Buchanan, Operations & Marketing Member-Partner, sets to pen her thoughts of that massacre. Thank you Bonnie for the permission to print your poem, and thank you for your passion and concern.
With Courage and Perseverance,
With Pride and Determination,
I can only watch and admire the strengths in young hearts,
As, I sit in silence a weeping witness and I morn the loss,
I do not morn the loss of anger, hate and violence,
I morn the loss of innocent lives just beginning,
I morn the loss of potential inventors, senators, mothers,
I morn the loss of the lines of lives saddened and shattered,
The lives which will never be…
I morn the loss of fellow Virginians,
A State in which I no longer live, but, which will forever be a part of me.
Do You remember, your college days,
Do You remember, exploring your own ways,
Do You remember all that you learned and tried,
Can You imagine if You had not lived, but died?
What in Your life, would You have missed out on?
Does Your list include triumphs and joys,
Does Your list include loves deep and true,
Does Your list include others, who forever influenced what makes You, You?
Take a moment, stop and breath,
Take a moment and enjoy the simple sight of a Tree,
Take a moment and listen to the laughs of Your children and friends,
Spend a heart beat or two for those who have passed,
Spend a brief moment in time and reflect on the losses of a Virginia Tech Class.
By: Bonnie L. Buchanan
April 17, 2007
With Courage and Perseverance,
With Pride and Determination,
I can only watch and admire the strengths in young hearts,
As, I sit in silence a weeping witness and I morn the loss,
I do not morn the loss of anger, hate and violence,
I morn the loss of innocent lives just beginning,
I morn the loss of potential inventors, senators, mothers,
I morn the loss of the lines of lives saddened and shattered,
The lives which will never be…
I morn the loss of fellow Virginians,
A State in which I no longer live, but, which will forever be a part of me.
Do You remember, your college days,
Do You remember, exploring your own ways,
Do You remember all that you learned and tried,
Can You imagine if You had not lived, but died?
What in Your life, would You have missed out on?
Does Your list include triumphs and joys,
Does Your list include loves deep and true,
Does Your list include others, who forever influenced what makes You, You?
Take a moment, stop and breath,
Take a moment and enjoy the simple sight of a Tree,
Take a moment and listen to the laughs of Your children and friends,
Spend a heart beat or two for those who have passed,
Spend a brief moment in time and reflect on the losses of a Virginia Tech Class.
By: Bonnie L. Buchanan
April 17, 2007
Friday, March 30, 2007
Volume 33 - i.2 Series Launch from Independence2, LLC
After two years of research and dedication, the private labeled architectural hardware company, Independence2, LLC, launches the product line of i.2 series for the commercial construction market. This launch represents further credibility for this start up company that has developed specially designed and innovative products with specifically targeted revenue streams within this fragmented market entailing the commercial construction arena.
Independence2, LLC with it's i.2 (trademarked) series of products has all the ingredients not only to be a successful enterprise, but to make a 'mark of difference' within this 'top-dog - bottom feeder' industry. That's because this company is being created on a strong financial foundation within a professional infrastructure and atmosphere, an outstanding marketing plan with a foundation of 'respect for the customer' in an industry not noted for customer responsiveness nor innovation, but only one of 'giant pigs among cheap imitation'.
The hope is, and in fact the outlook is bright, that we can fill revenue slots that make the stocking distributor the focal point within those several revenue streams. Unlike our competition, we respect the customer (stocking distributor) and have individual track records that prove that point. We don't sell to 'Big Box' houses like our competition, whether using their name or under some concocted name with a hidden agenda. We don't sell to manufacturers under one name and then attempt to sell through distribution. Our revenue streams are highly defined and bring our stocking distributors through to the 'end user'. We understand and comprehend the term 'globalization'. We don't hide under some phony pretense, we bring only honesty and integrity to the marketplace.
In a market and industry where products and business are all too undifferentiated, even boring, successful branding and associations can have a significant impact on not only our profit margins but also our stocking customer's profit margins. When was the last time one of your suppliers provided you with an opportunity? With us, just check our website, http://www.independence2.com/, to view our latest project in which we brought distribution through to accommodate a high visibility project. Our branded products not only promises reliability and consistency for its intended purpose and application, but are backed by our word; not some slogan or meaningless number.
We believe that the customers, our stocking distributors, want a supplier with with a 'soul' and a 'character'; they want personality and not an unfamiliar voice. We have taken years to launch for we know that this is a very time consuming and expensive effort. It cost money to communicate the values our brand conveys; it is an evolutionary process. We have discovered that this undertaking is not a static undertaking but rather a dynamic activity that requires constant attention to detail. We know that successful product branding is more then just the sum of its logo and name; it is the intrinsic values that not only the brand but the company conveys and believes in that counts. It is the values and benefits that the distributor remembers, not only the functional purpose, but the 'ease of doing business'. Our series of products, i.2, is an emotional brand that evokes strong emotional feelings just like all its members. Contrary to conventional wisdom, 'emotion' and 'passion' does count.
As with all businesses and products, when all the facades are stripped away, the ultimate question is where do the customers, within this supply chain, get the best deal? We at Independence2, LLC with our 1.2 series of products believe that it is imperative to have an equitable system that promises, and guarantees, the best pricing across the entire spectrum of product line thereby balancing single product companies, the 'bottom-feeders', and the controlling forces of the 'giant pigs'. It is this pricing spectrum mixed with our brand specific knowledge and our proprietary knowledge that is the differential factor. Our ability to define 'relationship' that is mutually enhanced with our stocking distribution not only within the confines of the States, but (hopefully) internationally. Our value isn't in the price of a hinge, but in that total spectrum of not only product, but providing service with style and substance.
Our goal is now to develop this recognition and image and thus the clear discernible identity to balance with our strategic direction. Our true value position will be defined in the years to come as a company that redefined industry standards and norms. And although will we always be service oriented, as my personal history clearly shows, as well as product driven with constant Research and Development, we will move toward a 'ease of doing business' unheard of within this industry.
Independence2, LLC with it's i.2 (trademarked) series of products has all the ingredients not only to be a successful enterprise, but to make a 'mark of difference' within this 'top-dog - bottom feeder' industry. That's because this company is being created on a strong financial foundation within a professional infrastructure and atmosphere, an outstanding marketing plan with a foundation of 'respect for the customer' in an industry not noted for customer responsiveness nor innovation, but only one of 'giant pigs among cheap imitation'.
The hope is, and in fact the outlook is bright, that we can fill revenue slots that make the stocking distributor the focal point within those several revenue streams. Unlike our competition, we respect the customer (stocking distributor) and have individual track records that prove that point. We don't sell to 'Big Box' houses like our competition, whether using their name or under some concocted name with a hidden agenda. We don't sell to manufacturers under one name and then attempt to sell through distribution. Our revenue streams are highly defined and bring our stocking distributors through to the 'end user'. We understand and comprehend the term 'globalization'. We don't hide under some phony pretense, we bring only honesty and integrity to the marketplace.
In a market and industry where products and business are all too undifferentiated, even boring, successful branding and associations can have a significant impact on not only our profit margins but also our stocking customer's profit margins. When was the last time one of your suppliers provided you with an opportunity? With us, just check our website, http://www.independence2.com/, to view our latest project in which we brought distribution through to accommodate a high visibility project. Our branded products not only promises reliability and consistency for its intended purpose and application, but are backed by our word; not some slogan or meaningless number.
We believe that the customers, our stocking distributors, want a supplier with with a 'soul' and a 'character'; they want personality and not an unfamiliar voice. We have taken years to launch for we know that this is a very time consuming and expensive effort. It cost money to communicate the values our brand conveys; it is an evolutionary process. We have discovered that this undertaking is not a static undertaking but rather a dynamic activity that requires constant attention to detail. We know that successful product branding is more then just the sum of its logo and name; it is the intrinsic values that not only the brand but the company conveys and believes in that counts. It is the values and benefits that the distributor remembers, not only the functional purpose, but the 'ease of doing business'. Our series of products, i.2, is an emotional brand that evokes strong emotional feelings just like all its members. Contrary to conventional wisdom, 'emotion' and 'passion' does count.
As with all businesses and products, when all the facades are stripped away, the ultimate question is where do the customers, within this supply chain, get the best deal? We at Independence2, LLC with our 1.2 series of products believe that it is imperative to have an equitable system that promises, and guarantees, the best pricing across the entire spectrum of product line thereby balancing single product companies, the 'bottom-feeders', and the controlling forces of the 'giant pigs'. It is this pricing spectrum mixed with our brand specific knowledge and our proprietary knowledge that is the differential factor. Our ability to define 'relationship' that is mutually enhanced with our stocking distribution not only within the confines of the States, but (hopefully) internationally. Our value isn't in the price of a hinge, but in that total spectrum of not only product, but providing service with style and substance.
Our goal is now to develop this recognition and image and thus the clear discernible identity to balance with our strategic direction. Our true value position will be defined in the years to come as a company that redefined industry standards and norms. And although will we always be service oriented, as my personal history clearly shows, as well as product driven with constant Research and Development, we will move toward a 'ease of doing business' unheard of within this industry.
Sunday, February 18, 2007
Volume 32 - It's Finally Race Day
As I watch the Daytona 500, although it’s 17 degrees with another 4” of snow from last night and from the outside of my windows the view is Antarctica, I realize that Spring is somewhere ‘around the corner’. Five crew chiefs suspended for cheating, 'comments' from a distinguished car owner, the entry of Toyota into the Nextel Cup Series, the saga of DEI, and the likes of Juan Pablo Montoya. Great upcoming season is upon us!
From the business angle, one of the most prestigous car owners, Jack Roush, just sold 50% of Roush racing to Boston Red Sox owner, John Henry, head of Fenway Investment Group to form Roush Fenway Racing to "raise more money to race." This move will also certainly line the pockets of Jack personally, and will draw tremendous funds into the developmental side of racing. Don’t be surprised if this turns out to be the first IPO for the racing industry. Isn’t Capitalism great! I certainly think so, and it is one more reason why it was such a surprise to hear Jack Roush complain again about the entry of Toyota into the Nextel Cup Series.
Roush, the loudest critic of NASCAR’s decision to allow the Japanese automaker to enter the Nextel Cup series this season, has stated such idiotic statements as 'Americans shouldn’t buy foreign cars because it hurts the economy.' Another example why an engineer should stay within his world of expertise, pocket his money, create great racing endeavors, but certainly keep stupid remarks to himself. Jack, for the record, your Ford Fusions as well as the Dodge Chargers are made in Mexico; the Chevy Monte Carlo’s are made in Canada; and therefore, the only American made car in the Daytona 500 is the Toyota Camry, made in Kentucky!
The entry of Toyota has certainly created more pressure to break the rules; five crew chiefs suspended, hundreds of thousands of dollars in fines, and certainly some embarrassment for Toyota as a manufacturer. After millions of dollars into this venture, Toyota had better reconsider who is in charge of development and factory assistance both in operations as well as marketing. Only 4 of 8 cars into the big race with controversy surrounding them doesn't bode well with those results. Sponsorship of the two ‘Red Bull Teams’ should also be screaming bloody murder with neither car being able to qualify. Without some strong leadership infusion into this project, Toyota will face a very long disappointing year.
The drama continues with DEI, Stepmother with ‘Star’ son; but doesn’t take a genius to figure out that Junior will win this messy battle for control. Dale Jr. will do it himself with his own team or, more likely, it will be someone like RCR who will help Junior, with his own team development, as well as pay this talent a super figure that will lead to a Cup championship.
The new talent base of NASCAR is one of it’s greatest assets so, with the addition of individual like Juan Pablo Montoya and other open-wheeled athletes, this is going to be a great season; can’t wait to have a few ‘brews’ with friends of mine at the track!
From the business angle, one of the most prestigous car owners, Jack Roush, just sold 50% of Roush racing to Boston Red Sox owner, John Henry, head of Fenway Investment Group to form Roush Fenway Racing to "raise more money to race." This move will also certainly line the pockets of Jack personally, and will draw tremendous funds into the developmental side of racing. Don’t be surprised if this turns out to be the first IPO for the racing industry. Isn’t Capitalism great! I certainly think so, and it is one more reason why it was such a surprise to hear Jack Roush complain again about the entry of Toyota into the Nextel Cup Series.
Roush, the loudest critic of NASCAR’s decision to allow the Japanese automaker to enter the Nextel Cup series this season, has stated such idiotic statements as 'Americans shouldn’t buy foreign cars because it hurts the economy.' Another example why an engineer should stay within his world of expertise, pocket his money, create great racing endeavors, but certainly keep stupid remarks to himself. Jack, for the record, your Ford Fusions as well as the Dodge Chargers are made in Mexico; the Chevy Monte Carlo’s are made in Canada; and therefore, the only American made car in the Daytona 500 is the Toyota Camry, made in Kentucky!
The entry of Toyota has certainly created more pressure to break the rules; five crew chiefs suspended, hundreds of thousands of dollars in fines, and certainly some embarrassment for Toyota as a manufacturer. After millions of dollars into this venture, Toyota had better reconsider who is in charge of development and factory assistance both in operations as well as marketing. Only 4 of 8 cars into the big race with controversy surrounding them doesn't bode well with those results. Sponsorship of the two ‘Red Bull Teams’ should also be screaming bloody murder with neither car being able to qualify. Without some strong leadership infusion into this project, Toyota will face a very long disappointing year.
The drama continues with DEI, Stepmother with ‘Star’ son; but doesn’t take a genius to figure out that Junior will win this messy battle for control. Dale Jr. will do it himself with his own team or, more likely, it will be someone like RCR who will help Junior, with his own team development, as well as pay this talent a super figure that will lead to a Cup championship.
The new talent base of NASCAR is one of it’s greatest assets so, with the addition of individual like Juan Pablo Montoya and other open-wheeled athletes, this is going to be a great season; can’t wait to have a few ‘brews’ with friends of mine at the track!
Wednesday, January 17, 2007
Volume 31 - Stowe Mountain Lodge Project
As our website, www.independence2.com, states Independence2, LLC is very proud to announce our involvement, with two of our Distributor Partners, Mr. James Sandy, President of Total Resources, Niles, Ohio, and Mr. Lee Guterba, Owner of S.R.E., located in Columbiana, Ohio, who will be supplying most of the Division VIII products, on the Stowe Mountain Lodge project in cooperation with Hunt Construction Group, the General Contractor.
Destination Hotels & Resorts will manage this luxury lodge located at the base of Stowe Mountain Resort's Mount Mansfield, Vermont's highest peak. This lodge will feature stone, timber and forged iron work, and each guestroom will take advantage of the surrounding mountain vistas with large windows and oversized balconies. The lodge also includes shared ownership residences and will feature an 18-hole mountain golf course. Other amenities will include an upscale retail plaza, an outdoor ice skating rink and signature restaurants as well as a separate SPA facility expected to be a premier boutique feature of this property.
The Stowe Mountain Lodge project is another prime example, along with the IUPUI Student Center, of Independence2, LLC's Premier Distributor Partnerships Program, which pulls together various 'project work' to benefit Distributors and Independence2, LLC's other Partners and Industry Relationship Contacts, who would like to participate in bidtype project work in conjunction with the General Contractor, architect and design firm.
It seems to me that this is a perfect example of respecting and enhancing the supply chain. If you (as a reader of this issue) are a distributor within the commercial construction market, when is the last time a manufacturer/supplier presented you with an opportunity to enhance your business? If you are involve with architectural hardware, as a distributor - contract door hardware house or locksmith, and carry products like Falcon Lock, Schlage, Dor-O-Matic, Norton, LCN Closers, and Von Duprin, Global Door and others, how do you tolerate these manufacturers selling to the 'Big Box Houses'?
In my Blog, Volume 15 - 'Big Boxes getting bigger', I discuss the future impact on the Contract Door Hardware Distributors and locksmiths within this supply chain and the negative effect of manufacturers/suppliers attempting to eliminate these two vital areas of the Division VIII supply chain. It is very evident on where the 'Big Boxes' are going with their Business Strategy. Although it is always the manufacturer/supplier's decision on the sales strategy a company makes, as it should be; the difficulty with Division VIII is that although it (usually) only makes up 2-4% of the project, it (unfortunately) makes up 25% of the 'grief factor' of a project, mostly due to the fact that even large General Contractors don't understand the intricacies of the Door and Hardware Industry with Distributors at the mercy of manufacturing schedules, delays, incomplete orders, submittal time-lines, ordering processes, etc. etc. etc. Nevertheless without these vital people involved in this supply chain, even more so these days with 'drawings' that are never completed, inadequacies of a door and hardware schedule and outdated specifications, projects regardless of size would never be completed.
Yet, we have top-line oriented manufacturers/suppliers whose business strategy is being executed at the expense of this customer group. Why, as an entrepreneurial business group, would one continually feed those that are positioning themselves to destroy your very business?
Destination Hotels & Resorts will manage this luxury lodge located at the base of Stowe Mountain Resort's Mount Mansfield, Vermont's highest peak. This lodge will feature stone, timber and forged iron work, and each guestroom will take advantage of the surrounding mountain vistas with large windows and oversized balconies. The lodge also includes shared ownership residences and will feature an 18-hole mountain golf course. Other amenities will include an upscale retail plaza, an outdoor ice skating rink and signature restaurants as well as a separate SPA facility expected to be a premier boutique feature of this property.
The Stowe Mountain Lodge project is another prime example, along with the IUPUI Student Center, of Independence2, LLC's Premier Distributor Partnerships Program, which pulls together various 'project work' to benefit Distributors and Independence2, LLC's other Partners and Industry Relationship Contacts, who would like to participate in bidtype project work in conjunction with the General Contractor, architect and design firm.
It seems to me that this is a perfect example of respecting and enhancing the supply chain. If you (as a reader of this issue) are a distributor within the commercial construction market, when is the last time a manufacturer/supplier presented you with an opportunity to enhance your business? If you are involve with architectural hardware, as a distributor - contract door hardware house or locksmith, and carry products like Falcon Lock, Schlage, Dor-O-Matic, Norton, LCN Closers, and Von Duprin, Global Door and others, how do you tolerate these manufacturers selling to the 'Big Box Houses'?
In my Blog, Volume 15 - 'Big Boxes getting bigger', I discuss the future impact on the Contract Door Hardware Distributors and locksmiths within this supply chain and the negative effect of manufacturers/suppliers attempting to eliminate these two vital areas of the Division VIII supply chain. It is very evident on where the 'Big Boxes' are going with their Business Strategy. Although it is always the manufacturer/supplier's decision on the sales strategy a company makes, as it should be; the difficulty with Division VIII is that although it (usually) only makes up 2-4% of the project, it (unfortunately) makes up 25% of the 'grief factor' of a project, mostly due to the fact that even large General Contractors don't understand the intricacies of the Door and Hardware Industry with Distributors at the mercy of manufacturing schedules, delays, incomplete orders, submittal time-lines, ordering processes, etc. etc. etc. Nevertheless without these vital people involved in this supply chain, even more so these days with 'drawings' that are never completed, inadequacies of a door and hardware schedule and outdated specifications, projects regardless of size would never be completed.
Yet, we have top-line oriented manufacturers/suppliers whose business strategy is being executed at the expense of this customer group. Why, as an entrepreneurial business group, would one continually feed those that are positioning themselves to destroy your very business?
Sunday, January 07, 2007
Volume 30 - China - Third Edition
Of all the cities visited on my adventure to China, I would have to say that Shanghai was my favorite. The international metropolitan flavor, the architectural skyline, the business mix of people representing all parts of the world, and the mystical nature of the Shanghanese people only highlights this city of 17 million people. Having arrived on a Saturday afternoon, gave me the opportunity to settle into my first weekend in this three thousand year old culture.
Sunday in Shanghai proved to be simply a wonderful, relaxing day with a special twist. Through our partner attorney, Daniel Thomas, we have employed the very competent law firm Calfee Halter & Griswold of Cleveland, for the specifics of trademark law and international law. Because of this relationship, our international lawyer, Bob Ross, Calfee, had made some special contacts for me before my trip. One of these contacts was Mr. Chunyang Shao, partner in the Jun He law firm, located on the top floor of the Kerry Center in Shanghai. Mr. Chunyang picked my interpreter and I up at noon and took us to a spectacular two hour lunch before entertaining us at his 32nd floor office building. The view was spectacular from all four sides of the building giving me a view of this city not seen by many visitors. My sincere thanks to Shao and to Bob Ross for this special time.
From the factories visited during the next few days, the nightlife, the local restaurants, the 'Bund' (the riverside area of the Huangpu River booming with offices, restaurants, and nightlife of Shanghai), the surrounding districts and cities, the Jiading district and the beautiful city of Suzhou, were very special. For example, the Tang Hotel for lunch, with one of our factories, not only is beyond exquisite but within walking distance of the Formula One race track, and the international race that is a regular on the F1 schedule.
The journey continued onto Taiwan and the city of Taipei with an early morning flight that takes you through Hong Kong, since traveling in and out of Taiwan involves customs and immigration, one of simple political inconvenience. This means flying to Hong Kong, de-planeing, checking through immigration/customs, then a new plane to Taiwan, a very long day; unfortunately, I had appointments starting at 4:00 p.m. and didn't stop till late into the night. If there was a good side of this long day, it involved the wonderful experience on Cathay Pacific, the airlines that took me from Hong Kong to Taiwan in which the 'sea bass' was magnificent.
The following day, being the first outside of the Hotel since my arrival and the late night meetings, the first impression hits you immediately that this island is very lush and mountainous. I visited a factory on the North Shore and was taken back with the beauty of this lush, tropical, mountainous area that is joined at its base with waters of the South China Sea, the Taiwan Straits and the East China Sea, a portrait screaming to be painted. Lunch was at a mountain spa from which, in the distance, one could see the city of Taipei, and the tallest building in the world, 'the 101'. On my next trip to Taiwan there will be much more time spent in this very attractive part of China.
Back to Hong Kong for an international Hardware Show, and a meeting with another law firm, and possibly the most powerful lady I've ever met, Y.M.Elaine Lo, partner Johnson Stokes & Master. Somewhat of a light work schedule, but at this time I was feeling burnt, so Hong Kong celebrating Halloween for four nights was quite the site. They actually shut down some streets in the restaurant district for hundreds of thousands of partying people from all over the world. Outside escalators in the SOHO and Lan Kwai Fong areas, with 35 degrees of slop entering one neighborhood onto another is simply worth the trip, not to mention Fat Angelo's, Havanna House, Bulldogs Bar and Grill, and Stanton's, just to mention a few of many hundreds. The central district, the hub of banking, commerce, and shopping is simply awe inspiring.
With the return of Hong Kong and Macau, the last of the European colonies, back to China, there is a real sense that the Chinese destiny is being returned to its rightful place at the center of the world and hopefully will take this challenge to forge with other leadership countries in making this world a better place for all the world's people regardless of politics.
Sunday in Shanghai proved to be simply a wonderful, relaxing day with a special twist. Through our partner attorney, Daniel Thomas, we have employed the very competent law firm Calfee Halter & Griswold of Cleveland, for the specifics of trademark law and international law. Because of this relationship, our international lawyer, Bob Ross, Calfee, had made some special contacts for me before my trip. One of these contacts was Mr. Chunyang Shao, partner in the Jun He law firm, located on the top floor of the Kerry Center in Shanghai. Mr. Chunyang picked my interpreter and I up at noon and took us to a spectacular two hour lunch before entertaining us at his 32nd floor office building. The view was spectacular from all four sides of the building giving me a view of this city not seen by many visitors. My sincere thanks to Shao and to Bob Ross for this special time.
From the factories visited during the next few days, the nightlife, the local restaurants, the 'Bund' (the riverside area of the Huangpu River booming with offices, restaurants, and nightlife of Shanghai), the surrounding districts and cities, the Jiading district and the beautiful city of Suzhou, were very special. For example, the Tang Hotel for lunch, with one of our factories, not only is beyond exquisite but within walking distance of the Formula One race track, and the international race that is a regular on the F1 schedule.
The journey continued onto Taiwan and the city of Taipei with an early morning flight that takes you through Hong Kong, since traveling in and out of Taiwan involves customs and immigration, one of simple political inconvenience. This means flying to Hong Kong, de-planeing, checking through immigration/customs, then a new plane to Taiwan, a very long day; unfortunately, I had appointments starting at 4:00 p.m. and didn't stop till late into the night. If there was a good side of this long day, it involved the wonderful experience on Cathay Pacific, the airlines that took me from Hong Kong to Taiwan in which the 'sea bass' was magnificent.
The following day, being the first outside of the Hotel since my arrival and the late night meetings, the first impression hits you immediately that this island is very lush and mountainous. I visited a factory on the North Shore and was taken back with the beauty of this lush, tropical, mountainous area that is joined at its base with waters of the South China Sea, the Taiwan Straits and the East China Sea, a portrait screaming to be painted. Lunch was at a mountain spa from which, in the distance, one could see the city of Taipei, and the tallest building in the world, 'the 101'. On my next trip to Taiwan there will be much more time spent in this very attractive part of China.
Back to Hong Kong for an international Hardware Show, and a meeting with another law firm, and possibly the most powerful lady I've ever met, Y.M.Elaine Lo, partner Johnson Stokes & Master. Somewhat of a light work schedule, but at this time I was feeling burnt, so Hong Kong celebrating Halloween for four nights was quite the site. They actually shut down some streets in the restaurant district for hundreds of thousands of partying people from all over the world. Outside escalators in the SOHO and Lan Kwai Fong areas, with 35 degrees of slop entering one neighborhood onto another is simply worth the trip, not to mention Fat Angelo's, Havanna House, Bulldogs Bar and Grill, and Stanton's, just to mention a few of many hundreds. The central district, the hub of banking, commerce, and shopping is simply awe inspiring.
With the return of Hong Kong and Macau, the last of the European colonies, back to China, there is a real sense that the Chinese destiny is being returned to its rightful place at the center of the world and hopefully will take this challenge to forge with other leadership countries in making this world a better place for all the world's people regardless of politics.
Monday, December 11, 2006
Volume 29 - China - Intra-China flights
In my first addition China 'blog', Volume 28, I hadn't mentioned any of my intra- China flights, nor my three and a half hour flight flight from Beijing to Guangzhou after just flying fourteen hours from Chicago to Beijing, so let me describe this experience as well as others on airlines as China Easter, Dragon Air and China South.
The intra-China flight from Beijing to Guangzhou took place after 'immigration and customs', and as mention above, after a very long flight from Chicago. Needless to say not only was I tired from flying, but tired of the process involved in standing in lines, customs, immigration, and all the 'stuff' that takes place with security and traveling from one country to another, therefore I was somewhat hesitate as I boarded my first truly China commercial airlines, known as China Air.
I can only tell you that the first class upgrade was not only very timely but like no other airline experience. The attention given its passengers was almost embarrassing, it was so exceptional. The airplane was an Airbus A330-200, and as I was escorted to my seat another stewardess was placing 'slippers' (blue in color) along side my seat for my three and a half hour flight to Guangzhou. Although the only English spoken was during some of the pre-flight announcements, the hospitality was unequalled in all of my air travels. It was aboard this flight that I had my first Chinese beer, Yan Jing, ate fish over rice with 'real' silverware (not plastic) including the knife.
Four days later, I'm boarding a China South Airlines heading to Shanghai. A half hour before the scheduled flight everyone was boarding and getting situation for this three hour flight. Exactly on time, our Airbus was 'wheels up' and hundreds of people were on their way to Shanghai. Apparently, there was a 'fashion' show in Guangzhou for I was sitting with and around six individuals from Los Angeles as they prepared to meet other clothing manufacturers in our destination city. The young lady sitting directly next to me was a 'twenty-something' who had recently graduated from college, and now was working for this private LA label clothier, who had taken a number of people on this 'buying trip' visiting four cities over three weeks (nice job).
China South Airlines provided another excellent flight experience with authentic Chinese fare, including the chopsticks, which after four days I was getting quite proficient. The young fashion person next to me was not as enthusiastic as I regarding the 'sometimes unknown food', but nevertheless the service was perfect, on-time takeoff and arrival with courteous service. Approaching the city of Shanghai, one becomes instantly aware that a new experience was to unfold. The skyline of this city was simply magnificent. With its seventeen million people, the visual site of endless skyscrapers, construction cranes and freeways offered up a clue that this is a special city (more to come about Shanghai).
Four days later, I'm boarding another intra-China airlines, China Easter, heading to Taipei, Taiwan with a 9:00 a.m. departure. (As a side note, a thought to ponder is the idea of a 9:00 a.m. departure, meaning arrival at the airport by 7:30 a.m. after being out in Shanghai the night before. For future trips, this scenario will be remembered.) I was picked up at the hotel, at 6:30 a.m., by a 'transfer agency', an absolute must for traveling in Asia. China Easter, flight 701, departed 'on time' at 9:00 a.m. with the customary courtesies shown on other China airlines, heading for Hong Kong. Although my destination was Taiwan, one leaving the mainland must fly through Hong Kong, deplane and get checked through immigration/customs and board another plane onto the island of Taiwan even though it is part of the PRC; and even though mainland Chinese aren't easily granted a visa to go to Taiwan, whereas people living in Taiwan can readily obtain the necessary paper work to go to the mainland. I never stated everything was perfect within this country, as politics does show its bureaucratic side.
Two hours later, after the bureaucratic stuff was out of the way, I boarded Cathay Pacific Airlines, Flight 564 from Hong Kong to Taipei. The scheduled time of such a journey is approximately two hours. After being on the plane for only ten minutes, you desire the trip to take many more than the scheduled hours for Cathay Pacific is world class. The menu handed out start out by stating "The best Chinese restaurants have moved to 30,000 feet". They go on to state, "The best way to enjoy good Chinese food is with friends. So we are especially pleased to offer our passengers the best of Hong Kong Cuisine. To celebrate our 60th anniversary, Cathay Pacific is serving popular and signature dishes from some of Hong Kong's finest Chinese restaurants throughout 2006. We will be offering a variety of dishes and highlighting the restaurants that created them, so sit back, choose your favorite dishes, raise your chopsticks and enjoy. The best Chinese restaurants on the ground are now in the - only on Cathay Pacific." And if you think the marketing is good, how about the main course: "Braised Sea Bass Fillet with Preserved Gooseberry Sauce Steamed Rice and Chinese Mixed Vegetables"!!!
Unfortunately I only spent two nights in Taipei full of meetings and factory visits and didn't get to spend anytime seeing this beautiful island. Two days later I'm at Taipei's International Airport boarding my final intra-China flight, in another great China airlines, Dragon Air, flying to Hong Kong. Another five star restaurant in the sky with breakfast being "Scrambled egg with tomato and cream cheese, potatoes and broccoli or Fried turnip cakes with Oyster sauce, and Chinese Dim Sum." During this rather short flight of approximately two hours, I was further amazed at the simple courtesy of everyone connected with the flight. From the efficient security to boarding to the ease of 'smiles' that were so apparent throughout this great adventure. There maybe many improvements that must be made within the country of China, but when it comes to cell phones or the airlines, nobody does it better!
The intra-China flight from Beijing to Guangzhou took place after 'immigration and customs', and as mention above, after a very long flight from Chicago. Needless to say not only was I tired from flying, but tired of the process involved in standing in lines, customs, immigration, and all the 'stuff' that takes place with security and traveling from one country to another, therefore I was somewhat hesitate as I boarded my first truly China commercial airlines, known as China Air.
I can only tell you that the first class upgrade was not only very timely but like no other airline experience. The attention given its passengers was almost embarrassing, it was so exceptional. The airplane was an Airbus A330-200, and as I was escorted to my seat another stewardess was placing 'slippers' (blue in color) along side my seat for my three and a half hour flight to Guangzhou. Although the only English spoken was during some of the pre-flight announcements, the hospitality was unequalled in all of my air travels. It was aboard this flight that I had my first Chinese beer, Yan Jing, ate fish over rice with 'real' silverware (not plastic) including the knife.
Four days later, I'm boarding a China South Airlines heading to Shanghai. A half hour before the scheduled flight everyone was boarding and getting situation for this three hour flight. Exactly on time, our Airbus was 'wheels up' and hundreds of people were on their way to Shanghai. Apparently, there was a 'fashion' show in Guangzhou for I was sitting with and around six individuals from Los Angeles as they prepared to meet other clothing manufacturers in our destination city. The young lady sitting directly next to me was a 'twenty-something' who had recently graduated from college, and now was working for this private LA label clothier, who had taken a number of people on this 'buying trip' visiting four cities over three weeks (nice job).
China South Airlines provided another excellent flight experience with authentic Chinese fare, including the chopsticks, which after four days I was getting quite proficient. The young fashion person next to me was not as enthusiastic as I regarding the 'sometimes unknown food', but nevertheless the service was perfect, on-time takeoff and arrival with courteous service. Approaching the city of Shanghai, one becomes instantly aware that a new experience was to unfold. The skyline of this city was simply magnificent. With its seventeen million people, the visual site of endless skyscrapers, construction cranes and freeways offered up a clue that this is a special city (more to come about Shanghai).
Four days later, I'm boarding another intra-China airlines, China Easter, heading to Taipei, Taiwan with a 9:00 a.m. departure. (As a side note, a thought to ponder is the idea of a 9:00 a.m. departure, meaning arrival at the airport by 7:30 a.m. after being out in Shanghai the night before. For future trips, this scenario will be remembered.) I was picked up at the hotel, at 6:30 a.m., by a 'transfer agency', an absolute must for traveling in Asia. China Easter, flight 701, departed 'on time' at 9:00 a.m. with the customary courtesies shown on other China airlines, heading for Hong Kong. Although my destination was Taiwan, one leaving the mainland must fly through Hong Kong, deplane and get checked through immigration/customs and board another plane onto the island of Taiwan even though it is part of the PRC; and even though mainland Chinese aren't easily granted a visa to go to Taiwan, whereas people living in Taiwan can readily obtain the necessary paper work to go to the mainland. I never stated everything was perfect within this country, as politics does show its bureaucratic side.
Two hours later, after the bureaucratic stuff was out of the way, I boarded Cathay Pacific Airlines, Flight 564 from Hong Kong to Taipei. The scheduled time of such a journey is approximately two hours. After being on the plane for only ten minutes, you desire the trip to take many more than the scheduled hours for Cathay Pacific is world class. The menu handed out start out by stating "The best Chinese restaurants have moved to 30,000 feet". They go on to state, "The best way to enjoy good Chinese food is with friends. So we are especially pleased to offer our passengers the best of Hong Kong Cuisine. To celebrate our 60th anniversary, Cathay Pacific is serving popular and signature dishes from some of Hong Kong's finest Chinese restaurants throughout 2006. We will be offering a variety of dishes and highlighting the restaurants that created them, so sit back, choose your favorite dishes, raise your chopsticks and enjoy. The best Chinese restaurants on the ground are now in the - only on Cathay Pacific." And if you think the marketing is good, how about the main course: "Braised Sea Bass Fillet with Preserved Gooseberry Sauce Steamed Rice and Chinese Mixed Vegetables"!!!
Unfortunately I only spent two nights in Taipei full of meetings and factory visits and didn't get to spend anytime seeing this beautiful island. Two days later I'm at Taipei's International Airport boarding my final intra-China flight, in another great China airlines, Dragon Air, flying to Hong Kong. Another five star restaurant in the sky with breakfast being "Scrambled egg with tomato and cream cheese, potatoes and broccoli or Fried turnip cakes with Oyster sauce, and Chinese Dim Sum." During this rather short flight of approximately two hours, I was further amazed at the simple courtesy of everyone connected with the flight. From the efficient security to boarding to the ease of 'smiles' that were so apparent throughout this great adventure. There maybe many improvements that must be made within the country of China, but when it comes to cell phones or the airlines, nobody does it better!
Saturday, December 09, 2006
Volume 28 - China - the first 72 hours
After spending almost three weeks in China, Beijing-Guangzhou-Zhongshan-Dongguan-Shanghai-Suzhou-Taipei-Hong Kong, one might expect to hear about the fourteen (14) hour flight, the food, the traffic, the pollution, the population, the government, emerging markets, one child per family rule, poverty of workers, the civilization of bicycles, or other 'television produced ideas' of what 'China' is supposed to be so let me attempt to state what I wasn't prepared to witness.
I didn't witness an emerging market, I witnessed a country that already has emerged. I witnessed a nation that has been undergoing a huge commercial and creative upheaval, entering the world market. I witnessed a country emerged in a spirit of entrepreneurship that reminded me of what the United States was before we promoted 'socialism' under the guise of 'liberalism'; before we paid workers to sit on their 'butts' without working. I witnessed a 'pay as you go society'; if you couldn't pay, you worked until you were able to (purchase).
I witnessed construction cranes that worked seven days a week, in the creation of breathtakingly spectacular skylines that rival New York, Chicago, Miami and Los Angeles. Construction involving highrise office buildings, apartments, airports, hospitals, malls, and hotels. The creation of jobs for millions of people that earn them a spending power they have never known and are eager to exercise. I witnessed crowds of people working, shopping, and dining in an international environment.
I had the privilege of working with two interpreters, Chinese citizens, both bright and act as independent contractors, entrepreneurship at its best, who were given the assignment of being with me not only in a work environment but after dinner, socially in their environment. We walked the streets, ate at 24 hour diners, drank and socialized with their friends at bars, talk about every subject imaginable. We discussed politics, religion, America, 'change', security, crime, food, and a multitude of other subjects without rules or censor. By the way, it should be mentioned that they (the interpreters) and other Chinese females are unable to obtain a visa to visit the United States. These two professional individuals as well as three others met, two other interpreters and an educated Hotel middle manager, are unable to obtain a visa to travel the United States because 'we' don't permit single female Chinese to enter this country. I'm embarrassed that my country has such rules toward what may be our best future ally (future blog subject) yet we permit an onslaught of Middle Easterners, and South Americans to cross our borders seemingly at will.
Driving two and half hours outside of Guangzhou, a city of ten million people, to the city and surrounding area of Zhongshan, a city of three million, to visit my first two factories, I saw terrible air pollution, driving conditions that makes the 10 and 405 in Southern California look like a sensible highways. I also saw many small motorcycles, with occasionally three people seeking transportation on one vehicle. But I also saw people working in factories that smiled, when you made eye contact, no dirt floors, no armed guards, and none of the 'TV' conditioned 'Chinese factory'.
The following day, my drive to the third factory was less than an hour to a five story building within Guangzhou which housed 3-4 different factories. Our particular factory consumed four floors, and other than the walking up and down the flights of stairs, and the lack of 'flow', so promoted by US companies, this factory was full of energy from the managers of the company to the 'forming process' workers through the software creation department, to the circuit board production, molding processes and another dozen departments all the way to shipping. Energy and pride of work emanated from the factory floor to the Chinese owner, who has twenty-three patents on his products.
That's only the first 72 hours, and I don't desire to get caught up into reporting a daily schedule but to discuss in the next blog, along with some travel, and manufacturing tours my impressions of another world that has two millennia of history, a newly found entrepreneurial spirit possibly unrivaled, exceptional freedom for the female gender and a growing sense that Chinese destiny is being returned to a higher place in the world of today.
I didn't witness an emerging market, I witnessed a country that already has emerged. I witnessed a nation that has been undergoing a huge commercial and creative upheaval, entering the world market. I witnessed a country emerged in a spirit of entrepreneurship that reminded me of what the United States was before we promoted 'socialism' under the guise of 'liberalism'; before we paid workers to sit on their 'butts' without working. I witnessed a 'pay as you go society'; if you couldn't pay, you worked until you were able to (purchase).
I witnessed construction cranes that worked seven days a week, in the creation of breathtakingly spectacular skylines that rival New York, Chicago, Miami and Los Angeles. Construction involving highrise office buildings, apartments, airports, hospitals, malls, and hotels. The creation of jobs for millions of people that earn them a spending power they have never known and are eager to exercise. I witnessed crowds of people working, shopping, and dining in an international environment.
I had the privilege of working with two interpreters, Chinese citizens, both bright and act as independent contractors, entrepreneurship at its best, who were given the assignment of being with me not only in a work environment but after dinner, socially in their environment. We walked the streets, ate at 24 hour diners, drank and socialized with their friends at bars, talk about every subject imaginable. We discussed politics, religion, America, 'change', security, crime, food, and a multitude of other subjects without rules or censor. By the way, it should be mentioned that they (the interpreters) and other Chinese females are unable to obtain a visa to visit the United States. These two professional individuals as well as three others met, two other interpreters and an educated Hotel middle manager, are unable to obtain a visa to travel the United States because 'we' don't permit single female Chinese to enter this country. I'm embarrassed that my country has such rules toward what may be our best future ally (future blog subject) yet we permit an onslaught of Middle Easterners, and South Americans to cross our borders seemingly at will.
Driving two and half hours outside of Guangzhou, a city of ten million people, to the city and surrounding area of Zhongshan, a city of three million, to visit my first two factories, I saw terrible air pollution, driving conditions that makes the 10 and 405 in Southern California look like a sensible highways. I also saw many small motorcycles, with occasionally three people seeking transportation on one vehicle. But I also saw people working in factories that smiled, when you made eye contact, no dirt floors, no armed guards, and none of the 'TV' conditioned 'Chinese factory'.
The following day, my drive to the third factory was less than an hour to a five story building within Guangzhou which housed 3-4 different factories. Our particular factory consumed four floors, and other than the walking up and down the flights of stairs, and the lack of 'flow', so promoted by US companies, this factory was full of energy from the managers of the company to the 'forming process' workers through the software creation department, to the circuit board production, molding processes and another dozen departments all the way to shipping. Energy and pride of work emanated from the factory floor to the Chinese owner, who has twenty-three patents on his products.
That's only the first 72 hours, and I don't desire to get caught up into reporting a daily schedule but to discuss in the next blog, along with some travel, and manufacturing tours my impressions of another world that has two millennia of history, a newly found entrepreneurial spirit possibly unrivaled, exceptional freedom for the female gender and a growing sense that Chinese destiny is being returned to a higher place in the world of today.
Monday, November 27, 2006
Volume 27 - Welcome Nick Ingledue and Marty Nicholas
Two months have gone by since my last posting, I find the 'speed of time' to be very difficult to comprehend. I desire 'time' to 'stand still' as it seemed during my earlier years. As my granddaughter said to her mom late yesterday afternoon, "Mom, there's nothing to do; I'm bored." To which I thought, without speaking, the day will come that the hours, days, weeks, months and years, take on the 'speed of light' in which boredom is a meaningless word. One certainly learns, as time passes, to 'savor' the taste of each day in which there aren't 'good or bad' days, just 'days' that accomplishment is greater than the previous.
From my last insert, 'i.2 update', our world of Independence2, LLC has moved from a year and a half of preparation to the 'playing field'. Within the past month we've added two more founding members, Nick Ingledue, our 'logistics' member-partner and Marty Nicholas, our 'sales' member-partner. We are very fortunate to be able to acquire, as our partners, two more individuals who have our similar business philosophies, work ethics, and an understanding of the importance of the 'customer'. They are able to answer the most important question of 'what do customers really want'. They understand quality products, reliable services and what a fair value means to not only the customer but the company. They understand that most business problems stem from the fact that companies have failed to keep their 'eye on the ball', failed to listen to their customers, and failed to deliver on the basics.
We have three more slots to fill, manufacturer representatives evaluations, completion of some final vendor selections pertaining to marketing and software, some contractual matters to 'think through', as well as finalization of certain manufacturing partnership purchase agreements, and these are just the 'broad-strokes'. The 'devil' still remains in the 'details, many hours of preparation still exist.
It becomes very apparent that most decisions have to be made without having all the information, or facts; nevertheless, 'time' is of the essence. Decisions have to be made. My theory has always been that it is better to make a decision than not; for in the latter one is always wrong. I've worked for too many people that would spend hours finding fault with everyone's input, hours spent in phony analyzation for they never had the guts to make a decision and 'live' with the outcome. Only after a 'success' did 'they' attempt to jump in front of the line which, by the way, never surprised the employees.
Returning to the subject of the disappearance of time, during this two month 'blog' absence, I had the pleasure of traveling to China. My experience and adventure could easily make up the next dozen 'blogs'. There is no doubt that the world is 'flat', and certainly much smaller than you think. This past July, I wrote Volume - 24 'Gobalization' and couldn't have been more on target. 'Globalization' isn't a theory, it's 'live' and doing very well.
From my last insert, 'i.2 update', our world of Independence2, LLC has moved from a year and a half of preparation to the 'playing field'. Within the past month we've added two more founding members, Nick Ingledue, our 'logistics' member-partner and Marty Nicholas, our 'sales' member-partner. We are very fortunate to be able to acquire, as our partners, two more individuals who have our similar business philosophies, work ethics, and an understanding of the importance of the 'customer'. They are able to answer the most important question of 'what do customers really want'. They understand quality products, reliable services and what a fair value means to not only the customer but the company. They understand that most business problems stem from the fact that companies have failed to keep their 'eye on the ball', failed to listen to their customers, and failed to deliver on the basics.
We have three more slots to fill, manufacturer representatives evaluations, completion of some final vendor selections pertaining to marketing and software, some contractual matters to 'think through', as well as finalization of certain manufacturing partnership purchase agreements, and these are just the 'broad-strokes'. The 'devil' still remains in the 'details, many hours of preparation still exist.
It becomes very apparent that most decisions have to be made without having all the information, or facts; nevertheless, 'time' is of the essence. Decisions have to be made. My theory has always been that it is better to make a decision than not; for in the latter one is always wrong. I've worked for too many people that would spend hours finding fault with everyone's input, hours spent in phony analyzation for they never had the guts to make a decision and 'live' with the outcome. Only after a 'success' did 'they' attempt to jump in front of the line which, by the way, never surprised the employees.
Returning to the subject of the disappearance of time, during this two month 'blog' absence, I had the pleasure of traveling to China. My experience and adventure could easily make up the next dozen 'blogs'. There is no doubt that the world is 'flat', and certainly much smaller than you think. This past July, I wrote Volume - 24 'Gobalization' and couldn't have been more on target. 'Globalization' isn't a theory, it's 'live' and doing very well.
Sunday, September 24, 2006
Volume 26 - i.2 update
After sixteen months, filled with a great deal of work, a 'term sheet' has been signed with a major bank to finance Independence2, LLC.
During the last couple of years of employment with my former employer I was privy to information regarding potential acquisitions. During some of those meetings, I was a proponent of 'greenfield' proposals, and heard resistance toward that type of thinking. I witnesses purchases made of poor companies for excessive amounts of money, knowing that a 'startup greenfield operation' seemed more realistic, and certainly more potentially profitable. After nearly a year and a half of building the foundation for our startup company, Independence2, LLC, I realize why start-ups ('greenfields') are frowned upon by companies interested in fast 'growth'. It takes a very long time to create the foundation necessary for a long lasting company from a 'clean sheet of paper' concept. Nevertheless, I'm betting the rewards are worth it!
I believe that fundamental issues such as building a solid comprehensive business plan, showing every detail of the proposed business, is an absolute. In the long run, it will show far better returns then attempting to bring about a 'turn-around'. Fundamentals and application of a proven system is as important in business as it is in plotting out a successful football program. Our business plan, thanks mainly to the efforts of our Operations/Marketing Member, Bonnie Buchanan, who has multiple 'startup' and business experience, as well as the advice of other members, is a detailed 140 page 'bound' document that has been reviewed and critiqued as one of the most comprehensive business plan "ever to make their offices", and actually read, by some of the most intelligent business minds in the Eastern half of the country. This is an endorsement that is not taken lightly. A piece of work that took one full year in preparation and documentation. Persistence mixed with the right attitude stirred with competent and energized people can bring not only positive results but different perspectives to an ordinary playing field.
The longer I live the more I realize the impact of attitude on life. As my friend W. Mitchell preaches, it's not what happens to you, but what you do about it that matters, and as Robert Ringer writes, "it is more important than the past, then education, then money, then circumstances, then failures, then successes, then what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company, a church, a home. The remarkable thing is that we have a choice every day regarding the attitude that we will embrace for that day. We cannot change our past. We cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one stream we have and that is our attitude. I am convinced that life is ten percent what happens to me and ninety percent of how I react to it and so it is with you. It is indeed within your power to choose your attitude in any given set of circumstances. And as a result it is in your power to choose your own way and to have a great deal of control over your destiny."
So, another page of our journey begins filled with excitement, plans for the future, a group of people bustling with ideas, applying concepts, seeking solutions, a start-up with fire in it's belly. And yes, I'm fully aware of the realities of life and business, but this is ours to succeed or fail.
This is not a company full of politics, the slow pace of change, lack of decisive leadership with people chained to their desks, confined to a numbers game, staring at the clock to end a day of monotonous work. Returning to that type of setting is simply not an option. Imagination, energy and enthusiasm are daily traits to nurtured and accepted, otherwise you can't become a part of this venture.
The 'creative process' may not be new, but the natural implementation of its process reaching for moving strategies and higher technologies, instilling innovation, and identifying better processes and systems, yet putting the customer in their rightful position, delivering on your word, with the highest quality of product, and making everyone partners within this venture is what it is all about.
During the last couple of years of employment with my former employer I was privy to information regarding potential acquisitions. During some of those meetings, I was a proponent of 'greenfield' proposals, and heard resistance toward that type of thinking. I witnesses purchases made of poor companies for excessive amounts of money, knowing that a 'startup greenfield operation' seemed more realistic, and certainly more potentially profitable. After nearly a year and a half of building the foundation for our startup company, Independence2, LLC, I realize why start-ups ('greenfields') are frowned upon by companies interested in fast 'growth'. It takes a very long time to create the foundation necessary for a long lasting company from a 'clean sheet of paper' concept. Nevertheless, I'm betting the rewards are worth it!
I believe that fundamental issues such as building a solid comprehensive business plan, showing every detail of the proposed business, is an absolute. In the long run, it will show far better returns then attempting to bring about a 'turn-around'. Fundamentals and application of a proven system is as important in business as it is in plotting out a successful football program. Our business plan, thanks mainly to the efforts of our Operations/Marketing Member, Bonnie Buchanan, who has multiple 'startup' and business experience, as well as the advice of other members, is a detailed 140 page 'bound' document that has been reviewed and critiqued as one of the most comprehensive business plan "ever to make their offices", and actually read, by some of the most intelligent business minds in the Eastern half of the country. This is an endorsement that is not taken lightly. A piece of work that took one full year in preparation and documentation. Persistence mixed with the right attitude stirred with competent and energized people can bring not only positive results but different perspectives to an ordinary playing field.
The longer I live the more I realize the impact of attitude on life. As my friend W. Mitchell preaches, it's not what happens to you, but what you do about it that matters, and as Robert Ringer writes, "it is more important than the past, then education, then money, then circumstances, then failures, then successes, then what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company, a church, a home. The remarkable thing is that we have a choice every day regarding the attitude that we will embrace for that day. We cannot change our past. We cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one stream we have and that is our attitude. I am convinced that life is ten percent what happens to me and ninety percent of how I react to it and so it is with you. It is indeed within your power to choose your attitude in any given set of circumstances. And as a result it is in your power to choose your own way and to have a great deal of control over your destiny."
So, another page of our journey begins filled with excitement, plans for the future, a group of people bustling with ideas, applying concepts, seeking solutions, a start-up with fire in it's belly. And yes, I'm fully aware of the realities of life and business, but this is ours to succeed or fail.
This is not a company full of politics, the slow pace of change, lack of decisive leadership with people chained to their desks, confined to a numbers game, staring at the clock to end a day of monotonous work. Returning to that type of setting is simply not an option. Imagination, energy and enthusiasm are daily traits to nurtured and accepted, otherwise you can't become a part of this venture.
The 'creative process' may not be new, but the natural implementation of its process reaching for moving strategies and higher technologies, instilling innovation, and identifying better processes and systems, yet putting the customer in their rightful position, delivering on your word, with the highest quality of product, and making everyone partners within this venture is what it is all about.
Saturday, August 12, 2006
Volume 25 - 'Ishmael and Isaac'
On January 1st, of this year, I posted Volume 16 - "The next Hitler and the 2006 Demonic Person of the Year" referring to Mahmoud Ahmadinejad, the President of Iran. I state that "he undoubtedly will move with great speed and determination along the path of radical policies with continuing sponsorship of terrorism, and the drive to obtain and enact nuclear weapons."
I went on to state "is it not curious that religion, again, is used as the excuse to pillage and plunder? Race and color is not a factor, region of the world is not of importance, nor is the intellectual debate about the differentiation of the Christian, Hebrew or Islamic religions. Yet, it is religion as a structure, not the concept of spirituality,...that is the backdrop for murder, torture and mayhem."
Eight months later, we have 'Ishmael and Isaac' playing war games over the heads of innocent people. And, before my conservative friends gasp for air, I fully understand that the Hezbollah crossed over into Israel's territory, killed nine solders and captured two. I'm also fully aware of the UN's bill 1559 to disarm the terrorist Hezbollah (what a joke! Like the UN is actually going to do something constructive). And, everyone is fully aware that the government of Syria and the gangster president of Iran supports, the Hezbollah, Al-Qaeda and Hamas, as well as many other Muslim extremist/fascists groups bent on destroying any thriving economic society. Notice the words 'thriving economic society' versus using the word 'democratic' society, for it is economics that makes a country thrive, not its politics. It is education that makes economics thrive, to wit we have thousands of years of war in a region, a part of the world, certainly not known for intellectual thinkers or educational system.
In the twelfth century, at the close of the First Crusade (notice the word 'First', the Church has to love that...)the 'Holy Land is back in 'Christian' hands. The King of Jerusalem is not Muslim. The Crusaders after 'liberating' this part of the world take their plundered riches and go back to Europe. At that time, the Turks and the Muslims, who had lost much of their lands to the Christian armies, attack, robbed and kill, through gorilla warfare (you see their educational process of warfare started centuries ago) any pilgrims or foreigners to this land. With the exception that they used bows and arrows, large rocks, spears and fire, instead of missiles, rockets, grenades, and 'exploding people', the scene is the same.
For the simple sake of history, let's back this history up a couple thousand years prior to about 600 BC, or so, when the Chaldeans destroyed Solomon's temple, built around 950 BC. These invaders then took the Jews back to Babylon as slaves. 500 years later Herod (Arab origins) adopts Judaism, builds a new Temple in the Kidron Valley. Around 66 AD, after Herod's death, the Jews rebel and take control of Palestine. The Romans put an end to this uprise and take back control of Palestine. Hundreds of years later, a second Jewish rebellion with the same results, as the Romans vanquish this with superior world power. Six hundred years later with the rise of Islam, and the conquering of Jerusalem by the Arabs, the location is redefined by Mohammed's 'horse ascending to heaven'.
Enough of history, this should give one a pretty good idea of where this present 27 day war is headed; exactly NO WHERE. All the shuttle diplomacy, regardless of the country involved, and certainly not by the corrupt UN, will solve, in the 21st century, thousands of years of war. And, we haven't even mentioned the very modern scrimmages of 1967, 1973, and the early 80's, nor the constant civil war and hatred between the Shiite, and Shunni, regardless of what Mid-East region. Circumstances of war are terrible and tragic; but, there comes at time in history when countries, and people, must accept their responsibility, and be held accountable for their actions.
As much as I'm a believer in 'Globalization'; and as much of an optimist/positive thinker as I consider myself; there comes a time when we, the civilized world (normal acceptance of levels of crime aside), and in particular the United States, start to do those things necessary within our country, and with those countries that have mutual economic relationships (to be briefly discussed in the following paragraphs). It is also, about time, that we rethink our strategies when going to war (this is in no way an endorsement of 'pulling out' of Iraq, for those consequences involve an entire new subject and associated consequences). As already stated, circumstances of war are terrible and tragic, but if we, as a country have entered into those decisions, then we ought to engage the enemy to 'win' rather than be concerned about 'collateral damage' or 'image'. For example, Vietnam was never a war that this country had the stomach to win. Tens of thousands of young men died for a war entered by the government, with a phony 'domino' communistic scare tactic, but not 'stomached' by the government. More recently, in Iraq, and specifically in the first taking of the city of Falluja. There was no strategy to do what was necessary after the decision was made to 'take it' and now, we fight for the 'cameras', rather than the accomplishment, expending our soldiers lives rather than doing something right the first time.
With regards to the war in Iraq, and the recent incidents involving brave American soldiers ambushed, and taken hostage, murdered, tortured and butchered in the most horrendous way imaginable, where is the outrage for this brutality? Where is the protest about their human rights having been violated? Where is the ACLU? Where is the International community? Where is the media? Shouldn't there be a calling for the heads of those responsible? Instead of talk about withdraw, constant whining about human rights of the prisoners at Guantanamo Bay, we should let out all the stops, use whatever method necessary to eliminate these thugs. It's either time that we wipe off the face of the earth these Islamic militants, that have twisted their religion to allow the murder of innocent men, women and children, or we retreat, and allow the middle east to solve their own problems that have been unresolved since before Christ.
And finally, we must start doing those things necessary within this country for those United States citizens that must be 'accounted for', such as providing health care for the millions that go unprotected, yet are capable of so much accomplishment. Sounds very 'liberal', doesn't it? It may well be, but it doesn't lessen the needs of productive citizens, young and old, that if provided health care, their deeds of accomplishment would far outway any cost.
Sometimes these 'necessary things' are not 'things' at all, but an attitude. For example, five million of our older Americans have not signed up yet for their Medicare, Part D, drug plan. In many cases, the reasons are very simple, they are old, tired and confused. And, we, I'm told are not going to grant them an extension! But 'we' have fifteen million illegal aliens in this country, which we allow to stay, protest, procreate, receive support monies, attend schools, and demand services. What happen to legal immigration, the history of Ellis Island, working for a living, and respect for the law of this country (Volume 21 - Immigration).
As a country that relies on foreign oil, we started our crying in the 70's, then in the 80's, and now in 2006, we whine like spoiled children but don't have the resolve to solve the problem. Our politicians speak political double-speak, we open research again and again on solar energy, coal, corn, trees and any material that will push our SUVs down the road. But are we serious? If the futures market significantly lowered the price of a barrel tomorrow, all the alternative fuels would, and will again, take their rightful place 'on the shelf' until the next crisis. Too bad, for not only are there 'crazies' in the Middle East, but South America is rapidly developing into swarm of lunatics with no love of our country, and, unfortunately they control a significant amount of oil. Serious crisis is pending.
As one of my favorite authors, Patricia Cornwell, writes in 'Blow Fly', "...that the best way to identify a cottonmouth is to poke at it. If the inside of its mouth is white, whack off its head. Otherwise, the critter's nothing more than a harmless water snake."
I went on to state "is it not curious that religion, again, is used as the excuse to pillage and plunder? Race and color is not a factor, region of the world is not of importance, nor is the intellectual debate about the differentiation of the Christian, Hebrew or Islamic religions. Yet, it is religion as a structure, not the concept of spirituality,...that is the backdrop for murder, torture and mayhem."
Eight months later, we have 'Ishmael and Isaac' playing war games over the heads of innocent people. And, before my conservative friends gasp for air, I fully understand that the Hezbollah crossed over into Israel's territory, killed nine solders and captured two. I'm also fully aware of the UN's bill 1559 to disarm the terrorist Hezbollah (what a joke! Like the UN is actually going to do something constructive). And, everyone is fully aware that the government of Syria and the gangster president of Iran supports, the Hezbollah, Al-Qaeda and Hamas, as well as many other Muslim extremist/fascists groups bent on destroying any thriving economic society. Notice the words 'thriving economic society' versus using the word 'democratic' society, for it is economics that makes a country thrive, not its politics. It is education that makes economics thrive, to wit we have thousands of years of war in a region, a part of the world, certainly not known for intellectual thinkers or educational system.
In the twelfth century, at the close of the First Crusade (notice the word 'First', the Church has to love that...)the 'Holy Land is back in 'Christian' hands. The King of Jerusalem is not Muslim. The Crusaders after 'liberating' this part of the world take their plundered riches and go back to Europe. At that time, the Turks and the Muslims, who had lost much of their lands to the Christian armies, attack, robbed and kill, through gorilla warfare (you see their educational process of warfare started centuries ago) any pilgrims or foreigners to this land. With the exception that they used bows and arrows, large rocks, spears and fire, instead of missiles, rockets, grenades, and 'exploding people', the scene is the same.
For the simple sake of history, let's back this history up a couple thousand years prior to about 600 BC, or so, when the Chaldeans destroyed Solomon's temple, built around 950 BC. These invaders then took the Jews back to Babylon as slaves. 500 years later Herod (Arab origins) adopts Judaism, builds a new Temple in the Kidron Valley. Around 66 AD, after Herod's death, the Jews rebel and take control of Palestine. The Romans put an end to this uprise and take back control of Palestine. Hundreds of years later, a second Jewish rebellion with the same results, as the Romans vanquish this with superior world power. Six hundred years later with the rise of Islam, and the conquering of Jerusalem by the Arabs, the location is redefined by Mohammed's 'horse ascending to heaven'.
Enough of history, this should give one a pretty good idea of where this present 27 day war is headed; exactly NO WHERE. All the shuttle diplomacy, regardless of the country involved, and certainly not by the corrupt UN, will solve, in the 21st century, thousands of years of war. And, we haven't even mentioned the very modern scrimmages of 1967, 1973, and the early 80's, nor the constant civil war and hatred between the Shiite, and Shunni, regardless of what Mid-East region. Circumstances of war are terrible and tragic; but, there comes at time in history when countries, and people, must accept their responsibility, and be held accountable for their actions.
As much as I'm a believer in 'Globalization'; and as much of an optimist/positive thinker as I consider myself; there comes a time when we, the civilized world (normal acceptance of levels of crime aside), and in particular the United States, start to do those things necessary within our country, and with those countries that have mutual economic relationships (to be briefly discussed in the following paragraphs). It is also, about time, that we rethink our strategies when going to war (this is in no way an endorsement of 'pulling out' of Iraq, for those consequences involve an entire new subject and associated consequences). As already stated, circumstances of war are terrible and tragic, but if we, as a country have entered into those decisions, then we ought to engage the enemy to 'win' rather than be concerned about 'collateral damage' or 'image'. For example, Vietnam was never a war that this country had the stomach to win. Tens of thousands of young men died for a war entered by the government, with a phony 'domino' communistic scare tactic, but not 'stomached' by the government. More recently, in Iraq, and specifically in the first taking of the city of Falluja. There was no strategy to do what was necessary after the decision was made to 'take it' and now, we fight for the 'cameras', rather than the accomplishment, expending our soldiers lives rather than doing something right the first time.
With regards to the war in Iraq, and the recent incidents involving brave American soldiers ambushed, and taken hostage, murdered, tortured and butchered in the most horrendous way imaginable, where is the outrage for this brutality? Where is the protest about their human rights having been violated? Where is the ACLU? Where is the International community? Where is the media? Shouldn't there be a calling for the heads of those responsible? Instead of talk about withdraw, constant whining about human rights of the prisoners at Guantanamo Bay, we should let out all the stops, use whatever method necessary to eliminate these thugs. It's either time that we wipe off the face of the earth these Islamic militants, that have twisted their religion to allow the murder of innocent men, women and children, or we retreat, and allow the middle east to solve their own problems that have been unresolved since before Christ.
And finally, we must start doing those things necessary within this country for those United States citizens that must be 'accounted for', such as providing health care for the millions that go unprotected, yet are capable of so much accomplishment. Sounds very 'liberal', doesn't it? It may well be, but it doesn't lessen the needs of productive citizens, young and old, that if provided health care, their deeds of accomplishment would far outway any cost.
Sometimes these 'necessary things' are not 'things' at all, but an attitude. For example, five million of our older Americans have not signed up yet for their Medicare, Part D, drug plan. In many cases, the reasons are very simple, they are old, tired and confused. And, we, I'm told are not going to grant them an extension! But 'we' have fifteen million illegal aliens in this country, which we allow to stay, protest, procreate, receive support monies, attend schools, and demand services. What happen to legal immigration, the history of Ellis Island, working for a living, and respect for the law of this country (Volume 21 - Immigration).
As a country that relies on foreign oil, we started our crying in the 70's, then in the 80's, and now in 2006, we whine like spoiled children but don't have the resolve to solve the problem. Our politicians speak political double-speak, we open research again and again on solar energy, coal, corn, trees and any material that will push our SUVs down the road. But are we serious? If the futures market significantly lowered the price of a barrel tomorrow, all the alternative fuels would, and will again, take their rightful place 'on the shelf' until the next crisis. Too bad, for not only are there 'crazies' in the Middle East, but South America is rapidly developing into swarm of lunatics with no love of our country, and, unfortunately they control a significant amount of oil. Serious crisis is pending.
As one of my favorite authors, Patricia Cornwell, writes in 'Blow Fly', "...that the best way to identify a cottonmouth is to poke at it. If the inside of its mouth is white, whack off its head. Otherwise, the critter's nothing more than a harmless water snake."
Sunday, July 02, 2006
Volume 24 - 'Globalization'
'Globalization' is that magic word, which next to 'outsourcing', scares the 'crap' out of 'localized' thinking individuals, and connotes volumes of prejudicial opinions. Then again, 'Globalization' actually isn't a word, it's a concept. "Worldwide, a system of communication, comprehensive, universal", if one is to quote Webster.
Although I find 'globalization to be a sign of progress, free thinking and long-term success for those who understand 'competitiveness' in a free market, there are many who cringe at this concept, and promote governmental intervention (just what we need more of!) by limiting free trade and 'outlawing' private companies from doing 'global business'. For example, Thomas Pallery, PhD. in economics from Yale, said "he's encouraging workers and small-business owners to realize that they are threatened as the globalization of the economy forces more industries to compete on price." He recommends that Congress (Oh, goody!) consider an across-the-board tariff on certain countries unless they allow their currency to rise in value by market forces. And, although, I couldn't agree more with attempting to let the market place control economics, he continues (as most liberals do, instead of simply 'shutting up') by saying that "trade agreements should include regulations that force other countries to meet labor, environmental and safety standards." He continues by stating that "economics and politics should be linked." Enough of the 'other side', this is my blog, and I simply don't believe in 'socialism'or governmental interference.
Let's get back to some very 'simple' questions that need asked, and relate these questions, and answers, to 'globalization', for the benefit of understanding this process, or at least, reasoning out this concept:
Are you better off with the likes of a Wal-Mart, or not? Has you 'check-book' improved or gotten worse with importation of 'clothing'? Can a family of four clothe their family for less today, with better quality, and more choices, than a decade ago? (Refer to Volume 23 - Out Sourcing - Free Trade)
Is GM a bad company because it builds an automobile factory in China to sell Chevolets?
Is it a 'bad' thing that the GM Lordstown plant in Lordstown, Ohio not only builds the high quality, and great selling Colbalt brand, but also builds a different model, on that same production line for the Mexican market, and another model that gets sent only to Canada to be sold?
Is Toyota a good company because it builds automobile factories in Tennessee, Kentucky, Indiana and Texas, employs hundreds of thousands of U.S. citizens, but is a bad company because they also import other models into our market place?
Do the workers at the Honda Marysville, Ohio plant think less of Honda because their owned by a Japanese company?
Honda just announced, June 28th, that it is building a $500 Million Dollar facility in Indiana. This facility which will begin production in the fall of 2008, will employ 2,000 people and will have a production capacity of 200,000 vehicles. Is Honda a good, bad, or simply a foreign based company?
Is Chrysler owned by an U.S. company?
Isn't Volvo, Land Rover and Aston Martin now part of Ford's family of brands?
Isn't Hyundai spending billions of dollars within the State of California in a manufacturing capacity?
Is it, therefore, a globalization problem that GM and Ford have been announcing thousands of job cuts while foreign automakers are aggressively building new factories, and expanding plants here in the United States, or possibly not a globalization problem, but poor management and/or other internal problems within those companies?
The fact that Toyota gets more out of its workers, with plants operating at about 110 percent of capacity while GM's plants are operating at only 75% of their capacity is not a globalization problem, so get out from under your mother's skirt and learn to compete! As I stated in my volume 22 - Supply Chain Management (and Respect)"General Motors, opting to carry 120 SKUs of catalytic converters versus Toyota's decision to 'platform build' with only 30 catalytic converters, thus reducing costs of a single part number..." is not a 'globalization' problem, it's an internal company decision, not unlike Delphi's decision to create a 'job-bank' that costs over 400 million dollars with no attached productivity. Not 'globalization', just stupidity!
And finally, as if anyone reading this hasn't gathered enough new thoughts on the subject of 'globalization', here is the defining mark that says, no matter your opinion, 'globalization' is here to stay, and we better prepare ourselves through a better educational process to compete, (Volume 23 - Out Sourcing - Free Trade, and in Volume 13 - Importation of Goods - Trade Imbalance - Why and How?) in 2007, NASCAR is allowing Toyota into Nextel Cup racing. This uniquely American sport of stock-car racing has always wrapped itself in the red, white and blue, as U.S. car manufacturers, since the late 40's, competed against each other.
Initially there were many qualms about allowing a 'foreign' car company into NASCAR Nextel Cup racing, but the reality is that the line has blurred as automobile companies are very much 'global' companies, making, producing and selling cars all over the world. Many of the 'foreign' manufacturers, as mentioned previously, are now only foreign by ownership, with billions being spent in this country in manufacturing plants, testing facilities, and now racing. As one of the most important and respected of all the racing NASCAR owners, Jack Roush, said recently, ..."Toyota is a very important part of our economy today...and we've got a lot of dealer investment dollars out there and we've got a lot of our population that works in Toyota plants around the country, so they have every right to be here..." Add to this, that the Toyota Camry is built here in the United States with 80% of its parts from U.S. suppliers, while the Ford Mustang contains 60% U.S. supplied parts, the facts speak for themselves.
So, other than securing our borders from illegal immigrants and terroists, there will be no building of another 'China Wall' (which, by the way, didn't work 2,000 years ago) around this country.
Although I find 'globalization to be a sign of progress, free thinking and long-term success for those who understand 'competitiveness' in a free market, there are many who cringe at this concept, and promote governmental intervention (just what we need more of!) by limiting free trade and 'outlawing' private companies from doing 'global business'. For example, Thomas Pallery, PhD. in economics from Yale, said "he's encouraging workers and small-business owners to realize that they are threatened as the globalization of the economy forces more industries to compete on price." He recommends that Congress (Oh, goody!) consider an across-the-board tariff on certain countries unless they allow their currency to rise in value by market forces. And, although, I couldn't agree more with attempting to let the market place control economics, he continues (as most liberals do, instead of simply 'shutting up') by saying that "trade agreements should include regulations that force other countries to meet labor, environmental and safety standards." He continues by stating that "economics and politics should be linked." Enough of the 'other side', this is my blog, and I simply don't believe in 'socialism'or governmental interference.
Let's get back to some very 'simple' questions that need asked, and relate these questions, and answers, to 'globalization', for the benefit of understanding this process, or at least, reasoning out this concept:
Are you better off with the likes of a Wal-Mart, or not? Has you 'check-book' improved or gotten worse with importation of 'clothing'? Can a family of four clothe their family for less today, with better quality, and more choices, than a decade ago? (Refer to Volume 23 - Out Sourcing - Free Trade)
Is GM a bad company because it builds an automobile factory in China to sell Chevolets?
Is it a 'bad' thing that the GM Lordstown plant in Lordstown, Ohio not only builds the high quality, and great selling Colbalt brand, but also builds a different model, on that same production line for the Mexican market, and another model that gets sent only to Canada to be sold?
Is Toyota a good company because it builds automobile factories in Tennessee, Kentucky, Indiana and Texas, employs hundreds of thousands of U.S. citizens, but is a bad company because they also import other models into our market place?
Do the workers at the Honda Marysville, Ohio plant think less of Honda because their owned by a Japanese company?
Honda just announced, June 28th, that it is building a $500 Million Dollar facility in Indiana. This facility which will begin production in the fall of 2008, will employ 2,000 people and will have a production capacity of 200,000 vehicles. Is Honda a good, bad, or simply a foreign based company?
Is Chrysler owned by an U.S. company?
Isn't Volvo, Land Rover and Aston Martin now part of Ford's family of brands?
Isn't Hyundai spending billions of dollars within the State of California in a manufacturing capacity?
Is it, therefore, a globalization problem that GM and Ford have been announcing thousands of job cuts while foreign automakers are aggressively building new factories, and expanding plants here in the United States, or possibly not a globalization problem, but poor management and/or other internal problems within those companies?
The fact that Toyota gets more out of its workers, with plants operating at about 110 percent of capacity while GM's plants are operating at only 75% of their capacity is not a globalization problem, so get out from under your mother's skirt and learn to compete! As I stated in my volume 22 - Supply Chain Management (and Respect)"General Motors, opting to carry 120 SKUs of catalytic converters versus Toyota's decision to 'platform build' with only 30 catalytic converters, thus reducing costs of a single part number..." is not a 'globalization' problem, it's an internal company decision, not unlike Delphi's decision to create a 'job-bank' that costs over 400 million dollars with no attached productivity. Not 'globalization', just stupidity!
And finally, as if anyone reading this hasn't gathered enough new thoughts on the subject of 'globalization', here is the defining mark that says, no matter your opinion, 'globalization' is here to stay, and we better prepare ourselves through a better educational process to compete, (Volume 23 - Out Sourcing - Free Trade, and in Volume 13 - Importation of Goods - Trade Imbalance - Why and How?) in 2007, NASCAR is allowing Toyota into Nextel Cup racing. This uniquely American sport of stock-car racing has always wrapped itself in the red, white and blue, as U.S. car manufacturers, since the late 40's, competed against each other.
Initially there were many qualms about allowing a 'foreign' car company into NASCAR Nextel Cup racing, but the reality is that the line has blurred as automobile companies are very much 'global' companies, making, producing and selling cars all over the world. Many of the 'foreign' manufacturers, as mentioned previously, are now only foreign by ownership, with billions being spent in this country in manufacturing plants, testing facilities, and now racing. As one of the most important and respected of all the racing NASCAR owners, Jack Roush, said recently, ..."Toyota is a very important part of our economy today...and we've got a lot of dealer investment dollars out there and we've got a lot of our population that works in Toyota plants around the country, so they have every right to be here..." Add to this, that the Toyota Camry is built here in the United States with 80% of its parts from U.S. suppliers, while the Ford Mustang contains 60% U.S. supplied parts, the facts speak for themselves.
So, other than securing our borders from illegal immigrants and terroists, there will be no building of another 'China Wall' (which, by the way, didn't work 2,000 years ago) around this country.
Monday, June 05, 2006
Volume 23 - Out Sourcing - Free Trade
It wasn't too many years ago, heated discussions took place over the use of 'robots' within the workplace. The unions screamed, the newspapers went wild, the liberals cried, that the sky was falling over the potential loss of jobs. Sounds very similar to the same 'song and dance' being heard today over 'outsourcing'. We read and hear that because of 'cheap labor', we're destroying our middle class. We read and hear that the government should limit free trade and somehow 'outlaw' private and public companies from outsourcing.
But, just like the discussion of the 'robots', it's panic induced with fear stories of 'local' events, and not facts that effect a national economy. As in all topics that have 'emotional' involvement, volumes of prejudicial opinions abound as soon as 'trigger' or 'hot' words are used, especially by the media. Words and phrases, each with their own predetermined viewpoints, used to gain advantage, or worse, to confuse, clutter and inflame a sensitive topic. Just another example of the media, 'making the news' and not reporting it. Words and phases as 'Merger and Acquisition' (M & A), 'globalization' (next volume's topic), 'pressures to reduce costs', 'sourcing competencies', 'strategic sourcing initiatives', 'improve supplier collaboration', 'optimal sourcing allocation decisions', 'global economic instability', 'knowledge sharing capabilities', 'front office/back office reduction', are only examples of this delicate and sensitive subject.
Here are some facts and a peek into the future: You may not like it that someone in a foreign county is taking your 'customer service' or 'warranty' type call, but it 'may' actually lower your price and increase your service, that is , at least, the hope of the company. This applies to claims, warranties, loans, and any service type product in which a voice is necessary to respond. Companies maybe making a mistake using a voice that isn't accented to 'our norm', but that is their internal company problem, or challenge, and not the issue at hand, and certainly not a governmental decision. The positive or negative results will be determined, as it should, by the marketplace. For example, I just had a duplicate billing on my company credit card, and it took me four phone calls to finally find someone that understood, in English, what I was saying and the willingness to do something about it; after my call went through numerous countries and was disconnected three times within their established process to solve this problem. Nevertheless, it is my choice to get rid of that 'card' company, if I so choose, and find one that is more responsive to my needs. A 'market place' decision, and one in which, I will consider.
Other examples include the importation of foreign clothing, which has given us more choices for less money, so a family benefits where it counts, in their check book. Sam Walton: "Made in America", published by Doubleday and copyright (c) 1992 by the Estate of Samuel Moore Walton, is a book that describes Sam Walton's philosophy of life and business advice, but fourteen years later WalMart's philosophy toward sourcing of product is drastically different. Company choice, and according to their 'full' parking lots most people agree, regardless of where the products originate.
And finally, with regards to manufacturing, the 'hotest' and most 'sensitive' of subjects, the facts remain that if sourcing is necessary for not only a cost benefit, but one of service to the customer, and growth on the companies part, that decision to import parts, or to move to another country is still a decision of free enterprise with the result, success or failure of a company, determined by the marketplace, and not a governmental agency; with the exception of those companies that have acquired local, state or federal funding including all types of property tax rebates, and have not repaid that source of funding in full. In the sixties there were three automobile companies in the United States. Today, there are three times that amount, and only two owned by U.S. companies. The next volume is 'Globalization' and a full discussion of the above will be presented.
With regard to workers, pay, health care and future, and all those inflammable topics that appear on the news, let me use our new startup company, Independence2 LLC, as an example. All our products will be manufactured in foreign countries, under a private label, and our 'members' (employee-owners) will make equal too, or more, than industry standards, will own a 'piece' of the company and are building wealth, not simply 'hitting' a time clock. We've established ownership, accountability and wealth into this formula, not just a job. Where can a sales person, for example, do better, than with us, knowing that he's not prostituting himself, but actually owning part of a company? Where can a 'shipping' employee work, where he is not only invited, but expected to sit at the conference table and go over 'financials', sales strategies and operational performance detail, and be asked his/her opinion?
Outsourcing can create opportunity. It might be harder to see the benefits of free trade, because those benefits aren't news worthy in this day and age, of hype and ratings news. But, understand this, it is a company's choice and responsibility to make decisions, good ones and bad ones, and that is the risk that one assumes as an employee of a company. And remember, that risk is directly proportional to ones education and ability, and the less of both, that one 'carries', the more at risk one becomes. Don't look toward Uncle Sam, in the 21st century, to build walls around this country, other than for immigration purposes, and isolate the United States economically from the rest of the world. One had, therefore, better understand the benefits of higher education, no matter the cost. 'Dummies' aren't going to make it. As I stated, in Volume 13 - Importation of Goods - Trade Imbalance - Why and How?, "Our educational system pales in comparison to high achieving countries. Our educational system has stopped being competitive. Our educational system and its non-competitive mentality is root cause for our inability to be a manufacturing leader in today's global economy."
One last comment, outsourcing does become an issue when companies hide from their employees and customers the decisions to outsource parts, pieces or even new products, and even worse hides this deception in 'red, white and blue' boxes. There is nothing more sickening then to see and read 'public relation' crap, printed or spoken, to hide the truth. As I stated in Volume 2 - Nationalism, Customer Satisfaction & Accountability, "I'm talking about Presidents and CEO's of companies waving the 'buy American flag' who damn well know that in their private meeting sessions they are advocating purchases of parts or products from Asia, India and Mexico with their other divisions already having products going to the same customers that have no 'made in America' connection whatsoever. If you gain a competitive advantage by purchasing a product or part overseas, then by all means do it, but don't lie about it. Be 'up front', tell the truth and by all means keep 'old glory' out of the story. She deserves much better then to become a prop in your sad play."
You're going to love the topic of Globalization!
But, just like the discussion of the 'robots', it's panic induced with fear stories of 'local' events, and not facts that effect a national economy. As in all topics that have 'emotional' involvement, volumes of prejudicial opinions abound as soon as 'trigger' or 'hot' words are used, especially by the media. Words and phrases, each with their own predetermined viewpoints, used to gain advantage, or worse, to confuse, clutter and inflame a sensitive topic. Just another example of the media, 'making the news' and not reporting it. Words and phases as 'Merger and Acquisition' (M & A), 'globalization' (next volume's topic), 'pressures to reduce costs', 'sourcing competencies', 'strategic sourcing initiatives', 'improve supplier collaboration', 'optimal sourcing allocation decisions', 'global economic instability', 'knowledge sharing capabilities', 'front office/back office reduction', are only examples of this delicate and sensitive subject.
Here are some facts and a peek into the future: You may not like it that someone in a foreign county is taking your 'customer service' or 'warranty' type call, but it 'may' actually lower your price and increase your service, that is , at least, the hope of the company. This applies to claims, warranties, loans, and any service type product in which a voice is necessary to respond. Companies maybe making a mistake using a voice that isn't accented to 'our norm', but that is their internal company problem, or challenge, and not the issue at hand, and certainly not a governmental decision. The positive or negative results will be determined, as it should, by the marketplace. For example, I just had a duplicate billing on my company credit card, and it took me four phone calls to finally find someone that understood, in English, what I was saying and the willingness to do something about it; after my call went through numerous countries and was disconnected three times within their established process to solve this problem. Nevertheless, it is my choice to get rid of that 'card' company, if I so choose, and find one that is more responsive to my needs. A 'market place' decision, and one in which, I will consider.
Other examples include the importation of foreign clothing, which has given us more choices for less money, so a family benefits where it counts, in their check book. Sam Walton: "Made in America", published by Doubleday and copyright (c) 1992 by the Estate of Samuel Moore Walton, is a book that describes Sam Walton's philosophy of life and business advice, but fourteen years later WalMart's philosophy toward sourcing of product is drastically different. Company choice, and according to their 'full' parking lots most people agree, regardless of where the products originate.
And finally, with regards to manufacturing, the 'hotest' and most 'sensitive' of subjects, the facts remain that if sourcing is necessary for not only a cost benefit, but one of service to the customer, and growth on the companies part, that decision to import parts, or to move to another country is still a decision of free enterprise with the result, success or failure of a company, determined by the marketplace, and not a governmental agency; with the exception of those companies that have acquired local, state or federal funding including all types of property tax rebates, and have not repaid that source of funding in full. In the sixties there were three automobile companies in the United States. Today, there are three times that amount, and only two owned by U.S. companies. The next volume is 'Globalization' and a full discussion of the above will be presented.
With regard to workers, pay, health care and future, and all those inflammable topics that appear on the news, let me use our new startup company, Independence2 LLC, as an example. All our products will be manufactured in foreign countries, under a private label, and our 'members' (employee-owners) will make equal too, or more, than industry standards, will own a 'piece' of the company and are building wealth, not simply 'hitting' a time clock. We've established ownership, accountability and wealth into this formula, not just a job. Where can a sales person, for example, do better, than with us, knowing that he's not prostituting himself, but actually owning part of a company? Where can a 'shipping' employee work, where he is not only invited, but expected to sit at the conference table and go over 'financials', sales strategies and operational performance detail, and be asked his/her opinion?
Outsourcing can create opportunity. It might be harder to see the benefits of free trade, because those benefits aren't news worthy in this day and age, of hype and ratings news. But, understand this, it is a company's choice and responsibility to make decisions, good ones and bad ones, and that is the risk that one assumes as an employee of a company. And remember, that risk is directly proportional to ones education and ability, and the less of both, that one 'carries', the more at risk one becomes. Don't look toward Uncle Sam, in the 21st century, to build walls around this country, other than for immigration purposes, and isolate the United States economically from the rest of the world. One had, therefore, better understand the benefits of higher education, no matter the cost. 'Dummies' aren't going to make it. As I stated, in Volume 13 - Importation of Goods - Trade Imbalance - Why and How?, "Our educational system pales in comparison to high achieving countries. Our educational system has stopped being competitive. Our educational system and its non-competitive mentality is root cause for our inability to be a manufacturing leader in today's global economy."
One last comment, outsourcing does become an issue when companies hide from their employees and customers the decisions to outsource parts, pieces or even new products, and even worse hides this deception in 'red, white and blue' boxes. There is nothing more sickening then to see and read 'public relation' crap, printed or spoken, to hide the truth. As I stated in Volume 2 - Nationalism, Customer Satisfaction & Accountability, "I'm talking about Presidents and CEO's of companies waving the 'buy American flag' who damn well know that in their private meeting sessions they are advocating purchases of parts or products from Asia, India and Mexico with their other divisions already having products going to the same customers that have no 'made in America' connection whatsoever. If you gain a competitive advantage by purchasing a product or part overseas, then by all means do it, but don't lie about it. Be 'up front', tell the truth and by all means keep 'old glory' out of the story. She deserves much better then to become a prop in your sad play."
You're going to love the topic of Globalization!
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