Development Issue, Why are we all chasing the same “tail”?

The cure for what ails cities economically seems to be in finding that next big expansion project, or so it seems from all of our collective efforts. At the State, County and local levels, most of our efforts are geared towards finding a company that wants to expand, and having them place the new “factory” (now distribution center) in their city. Then they go on to sound like Sally Fields with the “You like me, you like me, you really like me” schpiel.

They give away land. Hand out incentives like they were Halloween candy. Build their roads and sewers. I will admit, there are a few strategic placements, such as a Toyota or BMW plant, which sets an area on to a totally new path. By and large, most of the efforts are about landing another “box”, with relatively low paying jobs.

What many cities seem to be missing is that these companies are headquartered somewhere else, and will have little loyalty to the region. Few executives will make the move, and there will be few professional jobs that move with any expansion.

At the same time, they forget that these companies all started somewhere, by one person, or a partnership. They started in garages, small buildings, or at the kitchen table. They forget that that the small business owner is the one driving growth and stability. They forget that small businesses can become big businesses. Why then do they not focus their resources on the small business or start up opportunities? Why don’t they knock down the walls of government regulation for the small business? Why doesn’t the governor show up for ribbon cuttings for the new 5 person shop that just opened? Governments forget that many small businesses don't get off the ground because they can’t get around all the regulations that governments have set up. (Have they set them up to keep the small company out…?)

Much of our economic development effort looks like the kid who wants something and wants it now. We have no willingness to delay our gratification. We criticize a corporation for chasing after quarterly results, yet demand out elected officials deliver the next big “box”.

I suggest we start by redirecting our focus onto the start up. The small “guy”, who just might get big, and stick around. Quit chasing the deals where 10 cities are competing for the same business. Help the start up. Help the little ‘guy’ grow. Get regulations out of the way, help them by keeping City Hall open later. Give land away to a small endeavor. Gain a reputation for incubating companies. Don’t chase the Cisco or IBM expansion. Make your area the place where the new competitor will set up shop.

Do this and we might see some real results. But you won’t see it in 1 or 2 years. You will see the results in 10 years and longer. But then again, maybe that is too long for some people to wait…..

Thinking Outside the Box

We all think outside the box. Nobody thinks inside the box anymore, except the other guy. We are all big thinker “now a days”. We wake up now and eat “paradigm shifts” (paradigm is now my least favorite word) for breakfast. The big picture, that is all we think about.

How many times do we tell ourselves to stay in the box? How many times do we tell others to do the same? Organizations and individuals are guilty of this. Come on, how many of us work for a Company that wants people to think outside the box. Then the instant somebody does, and it is discovered, out come the policy books. Out comes the lectures. Out comes the personnel folders. The hunt for the innocent begins.

I have a few examples of “in the box thinking”. IBM invented the PC. However they saw it as a simple device for programmers of mainframe systems (their box). They saw the total market for the PC to be around 100,000. That is 100,000 over the entire life of the product (not in one day, like now). That is why they used Intel’s processor and Microsoft’s Operating System. Who needed to worry about a mere 100,000 units. Little did they know that Microsoft would go on to become a bigger company than IBM, or spawn the likes of Dell, Compaq, Adobe, Symantec, etc.. By the time IBM woke up, Pandora’s box was open and a whole new industry was created, and they did not even know it until it was too late. They stayed in the box.

Our Schools are under pressure to improve. Plan upon plan is generated. Yet the only truly major changes over the last 100 years have been: blackboards in the schools (white boards now), prevalent and cheap paper, and indoor plumbing. We want “Paradigm Shifts”, but where are they?

How many of us are stuck inside of the boxes we have created on our own? How many of our own barriers have we erected within ourselves, or our companies. “I can’t do that.” “I don’t have the money.” “What would people think?”

It is time for us all to stop talking about “paradigm shifts” and it’s time to do something. O.K., keep it within reason, keep it legal. You know what I mean.

Here are a few small things to help you get started:
>> Change staff meeting times. Better yet, cancel them unless you have something important to communicate. Now there would be a productivity booster.
>> Stop staff meetings, use email for updates.
>> Take a different way to work. Try a new jogging/walking route.
>> Take a class, in something, anything….
>> Help a charity.
>> Reward someone you find doing something unique, productive, a new way….
>> Turn your computer off for the day. Leave your cell phone off for a week….
>> Break your routine. Find a way.

And please, let’s quit with the “Paradigm Shifts”. Let’s start with baby steps…..

Ignoring the Obvious:

Blind spots – we all have them. It does not matter what your position in life is, what job or title you have, or what kind of personality you have. Let me illustrate with a very simple example: Count the “f’s” in this little passage:

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS

At the bottom of this “paper” you will find the answer. How did you do? If you are like most people you missed the answer badly. (“Let the firings begin!”) Don’t feel bad. I once taught a course in quality control and the use of statistics, and did a similar exercise. In that much lengthier “passage”, the correct number of “f’s” was 21. Most did not get the answer correct. One particularly industrious inspector found 40! No wonder nothing ever got past her, she was finding problems that did not exist.

How often does this happen in our lives and in our businesses? We see the problem, we know the issues, we know how to fix the problem. That is, right up until somebody tells you how may “f’s there really are. (And if you are high enough up in the management ranks, the search for the “innocent” begins.)

I was once Director of Manufacturing Engineering for a telecommunications company. We were purchased by a much larger company. The larger company wanted to educate us “youngsters” in the right way to do things, which at the time meant automation. So they took me and my staff to a plant which had been completely remodeled. They fixed order entry, they “fixed” the sales channel (come on, nobody ever fixes the sales channel), and they totally automated the factor floor. The expense was enormous, totaling over $350,000,000 (in 1985 dollars).

There was one problem that none of us from our "little" company understood. Now this was in 1985, and at the time we were working in Silicon Valley, the “Garden of Eden” for technology. The problem: The large company was producing typewriters!! At the time, there were few typewriters left in our little company, we had all switched to PC’s. Now I will admit, they made nice typewriters. They were of high quality, and they made a lot of them. But they were still typewriters, not personal computers.

My message is this: Don’t ignore the obvious, but don’t be a slave to it. Sure, try and count all the “f’s”, but don’t obsess over it. The large company in my example (which is real – trust me), counted all the “f’s” and totally missed the market. Expect that people will make mistakes, deal with it. That is the price we pay for making progress. Success comes from learning from your mistakes, and moving ahead. Nobody gets far by counting all the “f’s” in life.

The answer: If you counted 3 “f’s”, you are fairly normal, but wrong (deal with it). There are actually 6. Most of us don’t see the “f” in the word “of”, as we mentally process that with a “v” sound. If it makes you feel any better, I still get this wrong, and I know the exercise.

Prologue: The large company in my example did finally learn from their mistake. They switched from typewriters to printed circuit board assemblies, which again cost a tremendous amount in re-tooling cost (and of course new robotics). Not a bad move, until they realized that these were best made by subcontractors, and the factory was again re-tooled to make printers. They eventually sold the factory. Don’t ever believe that big companies have the answers, they don’t.

http://www.agencynet.us

Introduction

I have been lucky enough to have a number of careers. Having to go through some pain each and every time you changed a career, makes you a little bit better (If it doesn't kill you it will make you better). This blog was created to share some thoughts on management, comments on dumb corporations and dumb corporate moves, and how you might be able to improve as a manager or executive.

A little background. I started out as an engineering school graduate (University of Wisconsin), and moved into management training from there. I stayed in management for 13 years, with my final position as Director of Manufacturing Engineering at a Telecommunications company in Silicon Valley.

I then moved into sales, first with IBM and then into various software sales companies.

Then after the shake out of software in 2000, I went into Commercial Real Estate, where I established my own company. Now my staff meetings consist of my dog and I, and he is not too impressed. Essentially, I now have one employee, and he can be stubborn and obstinate at times. But "we" get along nicely....

Through the years I have lived in 7 cities, been in government positions (School Board, City Council), been involved in political campaigns, been to all the training classes (and got the T-Shirt), and have been an observer of some colossal management mistakes (and some successes). Hopefully this little blog might help one or two people avoid a few mistakes, and be a little bit better manager.

If anyone is interested, my web site can be found at www.agencynet.us or www.pointonerealty.com.