Management Issues

2012-01-18T07:23:00.000-08:00

Why The U.S. Might be Losing Technology Jobs to Asia

So, I am reading the paper this morning and an article in the Chicago Tribune catches my eye, one on how the U.S. has lost 30% of its technology jobs. Being an election year, which now means every year is an election year, the blame will quickly be cast to our gridlocked political environment. Or the European banking crisis, or the deficit, or the Fed, or whatever reason de jour one can come up with.

I suggest there is a more fundamental problem to this job loss, which I will demonstrate with a couple of stories.

I spent a good deal of time working in Silicon Valley. I managed both technical and manufacturing groups. I was lucky enough to work with a very diverse work force. This was a heady time in Silicon Valley. Apple was just starting up. Microsoft had not been heard of yet. Intel still had not made the CPU for PC’s. Milpitas, CA (where I lived) had only one Headquarters of note – Chucky Cheese (it later went on to house many technology companies).

In the San Jose Mercury News, every year they would publish a two page spread of valedictorians from the area High Schools. In the early 80’s most of the kids featured were “white”. That is middle class, white, and often male. By the end of the 80’s the two page spread did not have one native born American. Not be discriminatory, but they were all Asian, 100%. Asians put a high value on education, very high. This continues on to secondary education as well. When I attended classes at a local Community College, I noticed that the math and science classes were also dominated by Asians.

The focus on education and making it a high priority is just one reason that jobs are moving overseas. We can blame low labor cost. But if education is as important as we say it is (and it is), companies will go to where education is valued. Right now, it is highly valued in the Far East (India, China, Korea, Japan). In my view, we here in the U.S. give lip service to education. Don’t believe me. Just ask a teacher. Parents don’t seem to care much anymore, don’t come to meetings, heck some won’t even feed their kids or get them to school on time (or there at all).

Another story involves a “buffalo”. One time we had an assembly department working every minute of overtime we could get. One guy, Frank, worked every minute he could. He worked 7 days a week, 12 hour days. Frank was a native of the Philippines. I could not get the native born Americans to work, not like he did.

One day I mentioned to Frank that he might take a day off as he had worked every day for three months. He laughed at that comment off and told me a story. He said that every day back home in the Philippines, he got up before dawn, ate, and then went to work. He spent the day plowing fields, behind a buffalo. He quit when he sun went down, came home ate, went to sleep, repeated the next day – every day.

“Here I work in air conditioning, I operate this machine and I wear a white coat. There’s no buffalo to walk behind. No heat, no sweat. I get water when I want and eat when I want. This? This is not work?” We are spoiled….

So, a company wants to build a factory. They value hard work and need an educated workforce. Where do you think they are going to go? (Note: They usually won't go where the dropout rate is close to 50%, which is what it is in our major Cities around the country.)

2011-11-16T08:14:00.000-08:00

Quality Control Test, True Story

Count the "F's" in the following text:

FINISHED FILES ARE THE

RESULT OF YEARS OF

SCIENTIFIC STUDY COMBINED WITH

THE EXPERIENCE OF YEARS

Scroll down only after you have counted them!

HOW MANY "F's" did you count? 3??

Wrong, there are 6 "F's"!

The brain cannot process the "F" in the word "OF". Incredible or what?

Anyone who counts all 6 "F's" on the first go is a genius. Three is normal, four is quite rare. I one time used this example when teaching a course to a group of Quality Control Inspectors. Most did what is normal and came up with 3 or maybe 4. Incredibly, one inspector counted 12 "F's". No wonder products never got past her, and they did not.Nothing moved past her. What is incredible is the company let it go on for so long. She rejected everything. True Story…….

2011-06-02T07:05:00.000-07:00

Signs in Real Estate

Everyone in Real Estate, be it in commercial or residential, knows the importance of signs. We like to see our signs go up sitting in the front for all to see. Yet many in the real estate business forget that over 86% of all real estate searches begin on the internet. Do you know if your signs are being seen on the internet, or do you rely on the MLS system to do that for you? Most agents and brokers rely on the MLS system that is out there.

Try this simple exercise. Go to Google and enter in the address of a property you listing, and hit enter. Is the property being found? Try entering your name, surround it with "Quoation marks" for better results, and maybe add the city in which you work. Are you being found?

Today there are a wealth of sites that allow you to list your property. I focus on Commercial Real Estate in Wisconsin and Illinois. I list properties on over 10 internet based sites, giving my customers a broader base for the signs to be seen. Here are a few that I use:

LoopNet, which is subscription based and costs over $1200 per year for 4 premium listings. Unlimited listings are much more. LoopNet does a pretty good job of being found by the search engines. It is one of the bigger players. It has been purchased by CoStar, a competitor, so we will see what happens to LoopNet in the future.
CoStar is another pay to play site, though listings are put up there for free, and their staff will track them for you. You have to pay to view listings and for premium content.
Oogle is a free site which is not heard of very often, but their listings are found by the search engines. A pretty good site, and another site to give you a free "sign".
Wisconsin BrokerNET is a new site, that focuses on just Wisconsin Commercial Real Estate, and provides premium content, but it is a free site. It focuses on Wisconsin for a number of reasons, one of them is so that search engines find the content more readily. This is an interesting site for Wisconsin, with specific news, profiles, Economic Development Data, bank lists, newspaper lists, and a lot more. This site should be replicated across many other states. I like the idea of "free".

Another way to insure you signs are being seen is Social Media. Are you on Twitter yet? I doubt it because I have checked, and few agents or brokers are on it. If nothing else, Twitter and other social media provides a link to your site, and the more links you have the more likely the search engines will find your site. Some social media sites to check out are:

Twitter, at www.twitter.com If you like you can check my twitter site at http://twitter.com/#!/pointonerealty I "tweet" my listings, news, etc. I point them all back to my website - think of it as a sign post.
Facebook. If you are not on their personally, you just are not trying.
Digg, Tout, Foursquare, and more. Look them up. You can put up a free site on Google, with links. You can start a blog, and include links, like this entry.
If you are a commercial broker, here is a new one: http://thebrokerlist.com/
If you are clueless, and you might be, get some help. I suggest starting with Genia Stevens, because I know her. Her website is full of tips: http://geniastevens.com/ Check it out and act on her free suggestions, or if you need help, hire her. She is worth it. How is that for a shameless plug?

Signs are important. Get to work and make sure your signs are being seen on the internet.....

Links:

http://www.wisconsinbrokernet.com

http://www.pointonecommercial

http://geniastevens.com/

http://www.agencynet.us

http://statelinebusinessnetwork.com/

2011-05-17T08:05:00.003-07:00

Money Saving Tip, Wisconsin Commercial Real Estate

I like to pass on money saving tips, given that we are in the commercial real estate business that is an important factor these days.

I list on as many sites as possible. I do this to increase exposure of my listings, and to help search engines. With more listings, comes more links, and more "google juice", making your listings easy to find. There are a host of listing sites out there, but I have found many of the sites are not found by search engines. Here is an easy test. Enter the address of one of your lisings in Google. 123 Anywhere Drive, Mytown, NY

Is the listing found. Often it is not. LoopNet has done a good job of this (being found by search engines), but they are very expensive, and were just bought by CoStar, so their costs will not go down in all likelyhood.

I list mainly in Wisconsin. Wisconsin BrokerNET lists commercial real estate in Wisconsin only, with links to key sites that pertain to my business. It has links to all the economic development groups around the state, news links, listings, a free profile for agents and brokers and that includes a free link. Heck, many sites charge $50 per year for just a simple link. I checked their structure and Wisconsin BrokerNET appears to be built for SEO (search engine optimization). With the focus on Wisconsin they can put up links to Wisconsin specific content, which will further help SEO efforts. With no fees, there is no risk, and the only thing you have into it is your time in setting up the site and your listings.

Check it out at http://www.wisconsinbrokernet.com

2011-05-17T08:05:00.001-07:00

Money Saving Tip, Wisconsin Commercial Real Estate

I like to pass on money saving tips, given that we are in the commercial real estate business that is an important factor these days.

I list on as many sites as possible. I do this to increase exposure of my listings, and to help search engines. With more listings, comes more links, and more "google juice", making your listings easy to find. There are a host of listing sites out there, but I have found many of the sites are not found by search engines. Here is an easy test. Enter the address of one of your lisings in Google. 123 Anywhere Drive, Mytown, NY

Is the listing found. Often it is not. LoopNet has done a good job of this (being found by search engines), but they are very expensive, and were just bought by CoStar, so their costs will not go down in all likelyhood.

I list mainly in Wisconsin. Wisconsin BrokerNET lists commercial real estate in Wisconsin only, with links to key sites that pertain to my business. It has links to all the economic development groups around the state, news links, listings, a free profile for agents and brokers and that includes a free link. Heck, many sites charge $50 per year for just a simple link. I checked their structure and Wisconsin BrokerNET appears to be built for SEO (search engine optimization). With the focus on Wisconsin they can put up links to Wisconsin specific content, which will further help SEO efforts. With no fees, there is no risk, and the only thing you have into it is your time in setting up the site and your listings.

Check it out at http://www.wisconsinbrokernet.com

2011-05-17T08:04:00.000-07:00

I like to pass on money saving tips, given that we are in the commercial real estate business that is an important factor these days.

I list on as many sites as possible. I do this to increase exposure of my listings, and to help search engines. With more listings, comes more links, and more "google juice", making your listings easy to find. There are a host of listing sites out there, but I have found many of the sites are not found by search engines. Here is an easy test. Enter the address of one of your lisings in Google. 123 Anywhere Drive, Mytown, NY

Is the listing found. Often it is not. LoopNet has done a good job of this (being found by search engines), but they are very expensive, and were just bought by CoStar, so their costs will not go down in all likelyhood.

I list mainly in Wisconsin. Wisconsin BrokerNET lists commercial real estate in Wisconsin only, with links to key sites that pertain to my business. It has links to all the economic development groups around the state, news links, listings, a free profile for agents and brokers and that includes a free link. Heck, many sites charge $50 per year for just a simple link. I checked their structure and Wisconsin BrokerNET appears to be built for SEO (search engine optimization). With the focus on Wisconsin they can put up links to Wisconsin specific content, which will further help SEO efforts. With no fees, there is no risk, and the only thing you have into it is your time in setting up the site and your listings.

Check it out at http://www.wisconsinbrokernet.com

2011-05-17T07:58:00.000-07:00

2010-12-02T13:11:00.000-08:00

How to be a Bad Sales Manager

After having worked for some incredibly bad sales managers, I feel well qualified to give free advice on how become a Sales Bad Manager, or how one can become worse. Yeah, it is amazing, with all the self help books, courses, blogs, etc., bad managers are still out there waiting to share their experience with more people. Here goes:

Always start by implementing a new sales strategy. Now let's ignore the fact that most so called "sales strategies" are about the same, yours is truly unique. Why? Well, you used it in the past, so it must be good. That and a "new" strategy gives you about 2 years before you have to be responsible for results. Two years is enough time to get your salary, some bonuses, get lucky with a few sales, and update your resume for the next gig and probable promotion.
Start by firing your sales team, do it slowly, but surely and steadily. Don't even think about finding out why sales are lagging, bringing in your own team is critical. It buys you time, again, about 2 years to find a new job where you can share your vast knowledge. Use terms like: "They just aren't on the same page."; "We need to go in another direction.", etc.. Remember, one or two firings will buy you a few months. But firing a majority of your team buys you years. Fire early, fire often, rinse and repeat....
Be arrogant and display your authority, with well, authority. You got this job for a reason. And that reason was you implemented sales strategies, fired people, got lucky, and looked for the next job, but that is besides the point. Being appointed a manager raises your IQ and talent level, right?
Change quotas, change the sales plan, and by all means change the territories. If you have geographic territories, go to named accounts (or vice versa). Expand territories, shrink them, the possiblities are limitless. If you have high quotas, make them higher, people love a stretch challenge. Change is good for all. If they don't like it, they are obviously disgruntled, pessimistic, or "Not on the same page". Which gets us back to point #2. This gives you more opportunities to fire people...
Get your "pitch" down. Here you have to be able to string incomprehensible sentences together so that nobody understands what you said, but you sounded good saying it. You won't believe how this one little trick has propelled people to higher positions.
When sales are lagging, begin the hunt for the innocent. Don't go after the new people that you had to bring on, because you fired the others, because they have to get up to speed. Don't look at marketing, or sales techniques, and by all means don't do any coaching. Yes, this means doing some more firings, acting contrite about it, and hence buying yourself more time (once again).
When in doubt, call a sales meeting. Fill time with mind numbing agendas, and make sure you cover all the new stuff you are implementing, again. Remember, sales people are not very smart, they must be lectured on a constant basis. Make it a three day sales meeting. Don't make time for calls. And by all means, start a search for the innocent when the forecasts come in low that next month.
Forecasts. You can't get enough of them. Prospects all fill the same profile and take the same amount of time, and have the same needs, usually like your old company. Right? So forecasts and sales cycles should look the same. If not, forecast again, and again. Focus on the forecast, not the process or prospects. If you look at it long enough, it will become real. If it doesn't, yes, start the hunt for the innocent again. Automate the forecast, then fine tune it. Again, this can buy you another year or two before they catch up to you. Whatever you do with forecasts, believe them. Sales people are outstanding when it comes to forecasting.
Get a CRM software package. You guessed it, it will buy you time. While it buys you time, the software company will help sell the product to your upper management. Now remember, software can get screwed up quickly. Yup, more time to polish up the old resume'. And remember, before you jump ship, get a copy of all the propects and customers. A CRM system makes this possible and quick. Remember, a bad sales manager always has a Rolodex full of contacts, and they make sure new hires have one that they bring along to help fill yours up even more.
Focus on the big stuff. With a new sales process, new forecasting, a new CRM system, and the firings, you will have a minimum of two years before you have to leave to your next job, I mean promotion. Then repeat the process. All the while you collect pretty decent money, and if you are really lucky some nice stock options. Do not focus on building a solid team or company, that only serves to delay your next promotion and is much too risky and takes too much time. Stay focused....

These are not new tips. They have been used for years by many in various industries. There seems to be a school for Bad Sales Managers it is repeated so often. I am sure there are more pointers out there. Let me know what yours are and I will post them. Perhaps set up a Wall of Shame for Bad Sales Managers, the list would long, and no so distinguished....

2010-03-03T06:43:00.000-08:00

What I learned from "crappy" jobs....

It seems that few people want to do the "dirty" work today. Teenagers shun the once popular jobs, like Paperboy, burger flipper, McDonald's worker, factory work, etc. I did all of these jobs. I must admit, I learned more doing these jobs than I did in the classroom. Here are just a few things that I picked up along the way, as a Paperboy

I learned that people treasure their money and won't give up 40 cents a week easily. But if you prove to them you do a good job everyday, and you are a person they like to deal with, they will gladly give up.
There are people out there who have little contact with the world, so many that a young 10 year old saw it daily. A young kid, with just a few minutes of time can have a big impact on a person's day. They might not see their kids for months (or years), but they saw me everyday.
The difference between a good job and a poor one is about 10 to 15 seconds.
I remember a lot of the people on my paper route, I remember few from my first job after college.
It is amazing how many people have their day upset, if their paper does not come on time.
The mantra of "The customer is always right" rings hallow sometimes. At times there are quite a number of just outright nasty people out there. Get used it and learn to appreciate the good ones of the world.
An ice cold soda never tasted better than after finishing up the route on a hot day. Never has tasted better.
People with little money often tip better than those better off.
People with little money seemed to have the best stories to tell and always wanted to share them with you.
Many have a story to tell, and they often want to tell it to you when you were collecting that 40 cents a week.

Few kids are paperboys any more, and it seems adults in cars have replaced them. Too bad. Many lessons are not getting learned, fewer connections with people are being made, and kids have less responsibility. But kids today seem busier. Not better off, just busier. Too bad....

2010-02-16T06:48:00.000-08:00

In the Olympic Hockey movie, "Miracle", head coach Herb Brooks has a scene where he works his players hard after a game. Sprint after sprint (he called them "Herbies"). And after every sprint he asks an individual player "Who do you play for?". Each player in succession answers with the name of his college. After each answer the workout continues. Players are exhausted, reaching their limits.

Then finally Mike Eruzione, instead of answering with the name of his college, answers "I play for the United States of America". The workout ended, Coach Brooks had made his point. The players were not from individual schools, they now played for the United States. They were a team.

I wonder when and if those in Congress will ever stand up and say "I play for the United States of America", instead of saying which party they are from, and mean it. Enough "platitudes', no grandstanding, no fake flag waving, and get to work for the United States. Don't work for the Corporations, not the special interest groups, not just your party, stop the party line votes, get to work for the United States.

You may disagree on issues, there may be two party lines, but there is only one country that you work for, the United States of America. Start acting like you know that and mean it.

2009-10-28T06:25:00.000-07:00

One Great Sales Tip...

I have a client that has taught me an outstanding lesson in sales. His technique is simple and to the point, and I wish that after spending all these years in sales classes somebody had taught it to me years ago.

Whenever I meet or speak with him, he always (and I mean always) closes our conversation with the following question: "Now before you leave (or hang up), is there anything you need from me, or is there something I can do to help you?"

When he asks that question, he gives you the impression that this is his most important question of the day, at least I think it is. He is a very successful businessman, and I have no doubt that part of his success is from him asking the question every time he leaves someone. And yes, if you say there is something he can help with, he will follow up and get you what you need (within reason of course).

Think about that. How many times a day does someone ask you what they can do to help you? Probably not a single one. But if a person asked this of you, would you remember them? Probably....

2009-05-06T12:53:00.001-07:00

Simple tips for Managers

Here are some quick tips for you new managers who want to make an impact. Here I will focus on few simple things, because simple things add up in people's minds.

When you hire a new person, or someone transfers, show them how much you care. Personally make sure they have a desk (so many forget this), have their business cards ordered and on their desk when they start (this makes a great impression), and have office supplies, computer, log on information, and appropriate manuals at their workspace. Develop a check list for new hires, and help them get off to a great start. They will appreciate the effort, because so few do the simple stuff....
Before they start, set up an interview schedule with key personnel. Let them get to know people, and help get off to a running start.
Make sure you the hiring manager are there to greet them when they come in on Day 1. Nobody else should greet at the door when they walk in. Oh, and then show them how to make coffee as well, and you will thereby show them you know how to make it. (Many managers like to take the last coffee and think making it is below their pay-grade. If you are one of those, knock it off, start making coffee for goodness sakes...)
Take their picture, as their desk, and ask to send to his or her spouse, or significant other, and copy them on it. Attach the photo to any announcement you have regarding the new person.

Do these few small things and you will send a powerful message that people are wanted and appreciated. Note that none of these items cost much at all. If you can't do the little things well, you will never be able to do the "big things".

2009-03-05T07:32:00.000-08:00

Keep CEO's (and other rich guys) out of Jail

OK, I admit, the headline is one that is not that popular, so bear with me.

I won't bore you with the long list of rich guys who are in jail, and let's include the politicians as well. I have an alternative that would not only save the taxpayers some money, but also help revitalize neighborhoods.

Instead of jail sentences handed out to what are pretty much "nonviolent offenders", let's give them a choice. They either go to jail, or purchase a home in a target neighborhood, one that is in obvious need of improvement. Keep them under house arrest, only allowing them to shop for essentials, and walk the neighborhood. If they improve their house, have them make a similar improvement to another house in the neighborhood.

My belief is that many people have lost sight of what conditions others live under. While they give out bonus like candy at an Easter Egg Hunt, others live in poverty. Some do OK, some don't. With jail, we pay for their mistakes as well. With my concept, they help improve the neighborhood, maybe bring attention to an area that needs it, and they might gain insight into the issues facing many others, not in their "class". They may also realize that one can live quite comfortably on a modest income, and not need $1,000,000 bonuses to make ends meet.

There are a lot of "broken people" in the world, and the list of problems facing families and poor neighborhoods is immense. We can't fix them all. But in a small way, having convicted CEO's, politicians, and investment crooks live in a poor neighborhood might just help, just a little bit.

2009-01-21T06:26:00.000-08:00

Layoffs, think twice, act once….

Here we go again. Our genius executives at work, once again, with more layoffs. We all know the routine. When a new CEO comes on board they either: A) Centralized operations, or B) Decentralize operations. Check. Then if times get bad, lay people off. Check.

Let’s add one more: Organize your company offshore so as to avoid paying taxes to the one country that allows your organization the stable environment it needs to grow, you know, the one with all the laws regarding property ownership, the one with law enforcement, the one that paid for your company to grow, yeah, that one. Check, and double check.

On to layoffs, since that is the popular move of the day. Before considering layoffs, do any executives consider they may need these employees in the future? No, really, have they considered it, before they let loose all that training and talent they have been working on for years. I don’t think so. If they did, they would be offering more employees part time work during the slow period, job sharing, reduced hours, forced shut downs, etc. Did they even try any alternatives before a massive layoff? I didn’t think so.

Often times a layoff is required, especially when a business is declining and has no hope of regaining market share, or when productivity is so much higher fewer people are needed (as with the automotive industry). But more often than not, layoffs are a short term solution to a short term problem, with long term consequences. We have had enough of short term solutions from our Corporate Executives and it is time to demand more critical thinking from them.

I am not suggesting “charity” here. I am suggesting that Executives start being smart. Don’t simply jettison people you have trained and spent a great deal of time with. Keep and protect your investment. Executives seem to understand “investments”, but lose sight when it comes to “people”. Maybe we should change the language for these short sighted Executives, and call everyone an “investment”.

And if an Executive implements massive layoffs, and uses short term thinking, is there some way we can prevent him (usually the female CEO’s of the world have more smarts) from ever making a speech where they say “People are our most important asset?” It rings kind of hollow after a layoff. Oh, and one last point. A layoff is a sign of a failure to accurately predict your business cycles, a failure to connect with your customers, a failure to manage resources properly, and a waste of money. Any Executive who commits such egregious errors should be the first one let go. Think about it….

2008-10-20T16:21:00.000-07:00

Rules for Managers

Listed below are a few (just a few) rules that I might suggest you use when managing a group, large or small:

You are who you are.
Your intelligence quotient did not rise when you were promoted, not the first time, not the second time. You may have moved up a pay grade or two, but rememeber, you are still that insecure kid from the third grade. A truly great person comes around once in a great while. Most of us are average “folk” trying to do a good job, and some of us are luckier than others.

Hiring and Promotions
Hire and promote people who are better than you, smarter, more articulate, etc. First rate people hire first rate people. Second rate people hire third rate people, and so on, continuing a downward “death spiral”. Top notch organiztions are usually full of first rate people. Usually due to unique (or not so uniqe) hiring practices. Hiring first rate people moves an organization along, while hiring second rate people drags it down, and fast.... So fast it is difficult to recover at times.

Theraputic Firings
Firings can be surprisingly theraputic, when done properly. They all should hurt, and hurt badly. Never take a termination lightly, and if one does, they should be terminated as well. However, if you accept poor performance, it can quickly become the norm. Work with people, identify areas of improvement, document, make contracts, etc. If all else fails, move on, and let them move on.

Beware of the Search for the Innocent
When things go wrong, and they will, it is common to point the finger of blame. If you have top notch people, they will take risks and they will fail occasionally. Humans have a unique ability to learn and improve after mistakes are made. Some mistakes should be celebrated. Too often in American business when things go wrong we begin a hunt for the innocent. It is seldom management, who makes the strategic decisions, often it is somebody lower in the organization. While CEO’s get raises for poor performance, the ones at the bottom pay the price.

Communicate Early and Often
It amazes me that those at the top often have no idea of the impact they can have on people. Often we build up an “aura” around us, we build elegant offices, surround ourselves with all the trappings, have guardians of our time and offices outside our doors. Then we proclaim that we have an “open door” policy, and wonder why nobody talks to us. We wonder why some executives lose touch with what is going on in the trenches. If you have not read the “Two Minute Manager”, you should. Practice what they “preach’ in the book. Communicate, give feedback, relate back to goals, and make adjustments when you have to.

2008-04-09T13:16:00.000-07:00

I have a new tip for people who play the stock market or work for any company. When a company starts to fire the salespeople, dump the stock, update your resume, whatever you have to do, but get out while you can.

Why is it that when a company experiences a downturn, they look to cut the sales force? I know, they have to cut something, and why not go after the expensive sales people, the ones who use up the precious expense accounts. But when the salespeople leave, the customers are the first ones to see it and feel it. And when that happens, those customers start to look elsewhere.

I know of numerous industrial companies that took this route. They were usually companies that were led by engineers or accountants (especially accountants, I hate those guys). One company used to be a leader in their field, they owned it. Then an accountant took over, and the salespeople were cut. Instead of 8 people in Michigan, they were soon down to 1, and then none. That business was soon lost to competitors, but they cut expenses. This company still continues to cut it's salesforce, and still wonders why sales don't increase. They expand the product line, they improve margins, the close plants, and they wonder why sales don't go up.

Of course the people heading up these companies are then rewarded with rich contracts, or golden parachutes when they are fired. Yet they killed the company.

People still buy from who they like. Salespeople establish relationships, they put a face on your company. Hopefully they are well paid. They face rejection on a daily basis. They fix problems caused by others. They are on the road constantly, and for those who don't have to travel - be grateful. It sucks and it is not elegant or fun. They keep people employed.

So when you see companies that cut their sales force, get out. Sell the stock or short it. And if you are on a Board of Directors and you see it happening, and you let it happen, shame on you, shame on the CEO.

2006-07-27T08:27:00.000-07:00

When to fire the CEO
We all hear about CEO's and their misdoings. I thought I would add to the discussion by noting when a CEO (or any other higher executive for that matter) should be fired. This list is just a start. Feel free to add to the list. Note, the list does not apply to CEO's who started their own company, they can do as they please (within the law of course), but usually they don't violate any of these "rules" anyways. They only seem to be violated by people using other people's money (not their own).

> If any CEO uses the corporate Jet for personal use, they should be fired.n Use coach, like your customers.
> If any relative of a CEO uses a corporate jet for personal use, the CEO should be fired, after they reimburse the company. Tell your kids to fly coach.
> If a Company’s profit and sales declines over a reasonable amount of time, and the CEO still gets a raise, the CEO should be fired along with the Exectutive Salary Committee. Sales people get fired for not meeting quota and the CEO gets a raise in a down year....?????
> If the CEO will not return phone calls, they should be fired. (Note: Most good CEO’s and Exectuves will return phone calls)
> If any CEO receives stock options, and they are post dated, they CEO will be terminated. If anyone in their organization receives them, they will be fired.
> Any CEO who cannot or will not make coffee will be fired. If you can’t figure out a coffee machine you are not qualified to run a company.
> Any CEO who has someone deliver coffee will be fired.
> If a CEO has a secratary make his voicemail greeting, the CEO shall be fired. If you can't figure out voicemail, forget it...
> If a CEO has son’s, daughters, wife, ex-wife or other close relatives on the payroll, they will be fired along with CEO “Daddy” Just because one is a member of the “Lucky Sperm Club” does not qualify one for anything.
> Any CEO who writes a book and has the company buy copies of it for employees. distribution will be fired. Let it stand on its own merits, or buy your own book.
> A CEO who has the company buy things from his sons, daughters or wife (or ex-wife), such as consulting services, books, services of any kind, will be fired. Pay them yourself. If they are that gifted they will be able to make it on their own.
> The “golden parachute” of a CEO who is fired, shall equal the termination package of the lowest paid person in the company, on a percentage basis.
> Any CEO who has an affair, dates someone in his company, or displays inappropriate behavior, shall be fired. It is now the 21st Century, get used to it.
> Any new CEO who comes on board, and centralizes operations from a decentralized operation, or vice versa, shall be fired. At this pay grade it is expected that one be a little more creative than this.
> Any CEO who has a reorganization after “bad news”, and who institutes a “search for the innocent” shall be fired. Again, you should be more creative.
> If a CEO uses the words "systemic" or "paradigm shift" in any talk, discussion or paper, and has been there for more than a year, shall be fired. The use of these words should be banned entirely.
> If a CEO hears about a program from another CEO "buddy", or hears of a program at an executive seminar, and then implements such a program without understanding it, shall be fired.
> Any CEO who cuts expenses, but not their own salary shall be fired.
> If the company’s sales are down, and the company then cuts the sales force, that CEO shall be fired. Sheer stupidity will not be tolerated.
> If a company institutes an automated customer service system (“press #1"), and the CEO has not tested it personally, and the system basically stinks, the CEO will fired. But only after he or she works in the customer service area taking calls for 1 month – minimum.
> If any CEO receives a low interest loan to buy stock or anything else for that matter, they will be fired. If you can’t live on a generous salary, you are not qualified to run a company.
> Any CEO who divorces and marries someone more than 10 years younger, will be fired. “Trophy Wives” will not be tolerated. This only applies to male CEO's, women don't do things this foolish.
> Any CEO who throws a lavish party for a relative, and does not invite the public at large, and has it paid for by the company, will be fired.
> If you break the law, any law, you will be fired. Yes, we hold you to a higher standard. Higher pay equals higher standards.
> Any CEO of a public company, who acts like they created the company and are the cause of the value of the company, shall be fired. If you are so good, go start your own company from scratch, we dare you!
> Any company which purchases expensive art work for a CEO’s office or home, shall fire that CEO. (Just how does expensive art work create shareholder value??)
> Any CEO who proposes to move Corporate Headquarters for “strategic reasons” shall be fired. Headquarters were there before they came on board. The city you are in and the people there helped the company get where it is today. If you think a move will create value, go somewhere else, leave now.
> A CEO who moves headquarts shortly after being hired, so it is closer to his present home, shall be fired.
> Any CEO who has a house larger than 5,000 square feet shall be fired. If you can’t figure out what bedroom to sleep in, you can’t manage a company.
> Any CEO who does not drive his own car on weekends, shall be fired.
> Any CEO who does not do their own shopping shall be fired.
> Any CEO who has someone buy gifts for his or her spouse, or kids, will be fired. If you can’t manage your time, you are not qualified.
> Any CEO who acts like “royalty” shall be fired.
> When a Dilbert cartoon mimics your CEO, that CEO will be fired.
> If a Dilbert cartoon mimics your CEO, and it is prominently posted around the company, and they “don’t get it”, that CEO will be fired.
> If after posting a Dilbert cartoon an employee is disciplined for it, that Mangaer or CEO shall be fired.
> If you are cutting costs, and laying people off, and then go on a trip to the "office" in Hawaii, you will be fired. Set an example for goodness sakes.

To be continued.....

2006-06-13T11:04:00.000-07:00

Ask business leaders what their biggest concern is, and often they will tell you about their concern for Schools and the kids coming out of High School. Unless you have lived in a cave for the last 20 years, you know that Schools are having a tough time. Being on a School Board for 7 years gave me some insight into the problems, and I have some ideas on how to fix the problems.

In my view, we don’t have a problem with teachers, we have a problem with parents (or lack of) and families.

Recently there has been talk about what School Districts can do to close the “achievement gap”. Rather than wait for a solution to magically happen, I have a few tips for people who want to see their kids close the achievement gap:

1.Get kids to school. Parents, this is your job. Schools can’t help kids that are not there. The schools cannot get your child up, and to school every day. The so called achievement gap shows up when kids don’t go to school (usually).
2.Get your kids to school on time Parents, this is your job – again. Schools should not and can not make wake up calls. Oh yes, and get them to bed on time.
3.Teach your child to behave. Asking a teacher to teach proper behavior severely cuts into teaching subject matter. No learning gap will be closed while teachers are busy attending to kids who don’t behave.
4.Feed your kids in the morning. A bowl of cereal, milk, and fruit costs less than $10 per week. Feed them, close the “gap”.
5.Parents, care about your child’s education. The schools and teachers will often bend over backwards to help those who care and are trying. However, if the child and parent do not care, a teacher is going to have a very hard time. Show up at conferences. Check assignments.
6.Parents, check your kids homework assignments. At a minimum, make sure that they have assignments (and they do) and that they are done. A child that does not do homework will never close the “gap”.
7.Turn off the TV. A kid now spends more time in front of a TV than they do in a school. If you can’t turn it off, get rid of it. TV never will close the “gap”.
8.Have dinner with your kids, ask them about the school day. Demonstrate that you care about their education.
9.Read to them starting at a young age. Have them read to you when they can. Instead of TV have them read. Close the gap, READ.
10.Don’t count on the schools to do your job. The Schools can help but they can’t do it all. Schools only have kids for about 14% of the entire year. What do your kids do with the other 86%? How is that schools only have kids for 14% of the year, and they get blamed for an achievement gap??

Schools cannot by law act as parents (or guardians). If parents can’t do the job, how can we expect the Schools to do it for them? Closing the achievement gap begins at home, not at school.

Gary Seidel
Former School Board Member
President, Point ONE Commercial Real Estate

2006-06-13T10:57:00.000-07:00

"Boiling the Ocean"

I once worked with a man who had been a Senior Vice President at IBM, during IBM’s zenith. He was at the end of his career and took to mentoring me, the “new kid” from the small IBM acquisition. He was full of stories and quotes. The best was:

“Don’t Boil the Ocean.”

He was a person who understood his position and how people reacted to him. If a high level Executive makes a comment (or even a gesture), some people will go off on a tangent gathering information to demonstrate their competence, at times out of fear or just to “show off”. We have all seen it and experienced it.

One time I remember asking a simple question during a meeting. At the next meeting I had a ten page report, with detailed statistics and analysis, and did not even know what it was regarding. Someone on staff took the question personally and spent a great deal of time and money on a report that was not needed. Don’t boil the ocean.

Once while walking through a manufacturing department, I notice 2 file cabinets that were full, and they needed another one. It turns out that they were storing quality reports on a particular Printed Circuit Board, and Engineering had made the request some time ago. Further checking showed that no engineer had ever looked at the reports nor had ever even asked for the reports. Digging deeper I found one engineer who had made a comment two years earlier and that triggered this “quality tracking”. The ocean was boiled, and reports were plentiful (and never used).

When you are in a leadership position, be it real or perceived, be careful about what you say and how you say it. Make sure that people understand what you are asking for, and your expectations. And be careful about the people who like to boil the ocean, they will do it when you least expect it (and more often then you care to admit). It is a waste of time and valuable resources.

Build trust, be specific when needed, but whatever you do, Don’t Boil the Ocean….

2006-05-23T07:18:00.000-07:00

Characteristics of the People at the Top

Organizations take on the characteristics of the people at the top. A successful company usually has a highly effective individual running the company, no rocket science here. They like their work, they like the people that work there, and they are open to new ideas.

There is one trait that I see in highly successful individuals that trumps them all. They pick up the phone and use it. Write that down. If you want to be successful, pick up the phone. Call people back when you miss them. Pick up the phone and answer it once in a while, instead of the acting like royalty and having an Admin. Person answer it (formerly known as secretaries).

Highly successful people are not afraid to talk to others. On the contrary, they want to talk to people both inside and outside the company. Sure, they usually have some road blocks to get to them. On average, a top executive receives 10-20 calls a day (at least) from sales people, selling everything from phone systems to paper.

Stepping back, the people who answer the phone for Executives, are also personable. They will point you in the right direction, answer questions, and in general are quite helpful.

While on the subject of phones, I might suggest that Executives themselves start checking their customer service phone support – now usually the main connection to customers. They would be horrified by what they found. If you have “outsourced” this vital function, you have lost control and influence. Somebody else is screening your key people, training them, instilling a “culture” on them that is not your own. In my mind, the outsourcing of Customer Support is one of the biggest blunders Corporations have made.

So pick up the phone, answer voicemails, and talk to people. This one trait won’t get you to the top, but it is key characteristic of successful people.

Gary Seidel
Point ONE Commercial Real Estate
Email: realestate@agencynet.us

2006-05-16T08:34:00.000-07:00

Software Selection, Do it Right, or Disaster Awaits.

By Gary Seidel

Assume you are a manufacturing company looking to improve your supply chain process, or your ERP (Enterprise Requirements Planning). The software you select will change the way you do business and provide you with a competitive edge - you hope. Now consider that up to 70 percent of the software implemented fails or never meets it intended objectives.

In addition, consider that the companies you are looking to for solutions do this for a living, and you do it infrequently.

If done properly, software and technology offers you the opportunity to improve your margins dramatically. If it is done poorly, you are potentially putting your business at risk. Having been involved in hundreds of selections, from the sales side, I have seen many mistakes that can be avoided. Here are just a few things to consider when looking for software, which will improve your chances of success. {Executive involvement}=

Herein lies the critical piece of any major project. If the top executive is involved and is driving the process, the rate of success improves drastically. Without it, a project is dead upon arrival, and money and time are wasted.

1. The top executive must buy into the fact there is a need for a new system. If they don't buy in at this step, don't waste your time going forward.

2. You must buy off on the selection process.

3. The justification for the project must be embraced and approved. The justification must be done by in-house people. Software vendors will try to do this for you. If you let them do so, you lose a great deal of negotiating leverage. Vendors have developed these processes to help them sell products, not as a free service.

4. The budget must be ``blessed,'' and adhered to. A word of caution: Don't let the budget constrain you to other opportunities. Blindly sticking to a budget with imperfect information will limit you, as other opportunities may present themselves and have a much higher rate of return.

5. Delegate the selection process, yet be involved and visibly demonstrate that. Have regular updates, however stay above the fray.

6. If a board of directors must be involved as well, get their buy in early as well.

7. Eventually a decision must be made. Don't allow your organization to fall into ``analysis paralysis,'' where you miss out on opportunities because they can't make a decision. This is a very common problem. Don't let it happen. {Selection Process}=

I have seen companies spend millions on purchases of software that do not fit their environment.

Some points to consider:

* An RFP (Request for Proposal) process is typical, either started by your in-house staff, or outside consultants. Most of the possible vendors can meet your RFP requirements, so why do it? I suggest as an alternative that you define five to 10 key business issues that must be addressed (such as reduce inventory, improve customer satisfaction, improve turns, provide competitive edge, etc.).
You will quickly find that only a few vendors can address your key points. By doing so you will save a great deal of staff time and money. This will also shorten the process considerably, and possibly provide you with negotiating leverage when it comes time to discuss price.
* The process starts at the top of the organization, yet you must get buy in from the entire organization. Software can impact many groups within your company. The politics that is involved in making software work in a company is complex. Many times an executive will make a decision on software, pay a large price, only to have the people in the organization kill it. Don't let this happen.
* Either you establish a buying process or the vendor's will. The vendor you let establish the process and timeframe will win your business. When that happens you have lost all negotiating leverage.
* Document the process on one page, with target dates established. Have the vendors and your staff sign off on each stage. Use this as your gauge to progress and keep your staff (and vendors) on task.
* Change is a difficult process. People will complain about the systems they have today. Then when change comes about, they will spend the majority of their time trying to make a new system look like the old one. This is why the top executives must be involved, as they must drive change. Work with people, yet if you see that there is resistance to change in your organization, don't hesitate to make personnel decisions. Again, your business is at risk here.
* Put the best people you can on a large scale projects (ERP). This will be a test of your organizations's strength and depth.

One company did not put their best people on their project, rather putting who they could afford to lose for a period of time. They picked a poor package, and the implementation failed miserably. Inventory accuracy went from a net of 99.7 percent to 60 percent. Raw Material Inventory increased by more than 50 percent. An inventory write off of $20,000,000 was the final straw. They then had to do this again, buying another package and doing it all over.

Technology is not a luxury. It is a business necessity. Having a great product will only work for a short time period, and then competition will catch up. The same goes with technology. Software is just one component of the technology sector. Making the right software decision will pay enormous dividends, many times exceeding an ROI of 100 percent and helping to grow your business with few additional resources. Do it wrong and you are betting your business.

Gary Seidel

2006-04-26T06:20:00.000-07:00

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…..

2006-04-24T14:10:00.000-07:00

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…..

2006-04-24T08:48:00.000-07:00

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

2006-04-24T06:58:00.000-07:00

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.