I Want to Finger Paint!

Last week I was back at the Mayo Clinic with my Dad in Rochester MN. It was a really amazing experience. I was so impressed with their business model for interacting with their patients. The care that we received was so thorough and definitely world-class from every aspect. I even got my own experience as a patient when I started having symptoms of a detached retina. Luckily that was not the case. But I did walk away from the Mayo Clinic with a few mottos. You realize that there are many sick people in the world, and at an institution like the Mayo you see many that are at the end of their lives. It is a very sobering experience. So I realized two things – very profoundly. One – Use it while you have it! I sat there watching so many people that can no longer lead full and active lives. I have the ability yet, don’t always schedule time enough for me to allow myself to stay fit and healthy; time to go do fun and active things I want to do right now. And second – Be grateful every single day. Every day you are healthy is a day to be thankful and to show gratitude. It is amazing how fleeting your health can be. While I was waiting to be checked for my eye, I had to come to terms that I may within a period of hours no longer have sight in one of my eyes. Luckily that was not the case, but gosh it was a wakeup call.

From Rochester I flew on to Vancouver B.C. where I am a student in the Strategic Coach® program. (www.strategiccoach.com). Strategic Coach is an organization run by entrepreneurs, for entrepreneurs. Entrepreneurs use the Program’s concepts and tools to create greater success and freedom for themselves, and more value and satisfaction for their clientele. I have been in the program for 6 years now and I just love the perspective shift I get each quarter during my daylong session. The last class introduced us to a tool named “Absolutely Unacceptable Regrets”. It was such a synergistic event coming from my Mayo Clinic experience. In this exercise you look back at your life from the perspective that you are about to die. What would be your largest regrets? It is an eye-opening and sobering thought process. I must admit that the room got really quiet during this exercise. Once again I realized that I really have to put myself and my health at the top of my priorities. At Mayo, my Dad had complained about being old (he is 82), to which the doctor responded that really nowadays old is when you are over 100. I had to get really honest with myself that if I want to live to be old (my goal is 115), I have to get in shape now, and use it while I have it and be thankful that I can!

Since my class this whole concept has been bouncing about in my brain. What other regrets do I have? And then it hit me. Finger painting! I absolutely loved finger painting as a kid. I can’t explain the joy and freedom I felt when I was able to finger paint. It is such a primal feeling, having your fingers in the paint. I think that is one reason I love to bake. I love having my fingers in the dough. But I guess I was in the era of budget cuts and finger paints and the special paper needed was probably too expensive, so it was phased out. I can remember that I yearned for the opportunity to finger paint throughout elementary school.

 So… have no regrets and take advantage of what life throws you. And on that note, I think I may just go out and buy some finger painting supplies!

 

This week I was quoted in the WSJ. See the article below.

ECONOMY

AUGUST 11, 2010

Firms Spend More—Carefully

Equipment Purchases Make Up for Recession Cutbacks, Not to Raise Production

By JUSTIN LAHART

(Please see Corrections & Amplifications items below)

Companies in the U.S. are stepping up purchases of equipment and software at the fastest pace since the late 1990s. But much of the spending is aimed at replacing older equipment after recession-related postponements or to improve efficiency—not to raise production or boost hiring.

After one of the sharpest declines in spending on equipment and software, companies in the U.S. boosted their spending on such products at a 21.9% inflation-adjusted annual rate in the second quarter, after the first quarter's 20.4% increase, the U.S. Commerce Department said.

The second-quarter jump was the biggest since 1998, when enthusiasm for technology was running hot. It was a much stronger increase than what was seen after the previous two recessions.

That stands in sharp contrast to the muted hiring and lackluster consumer spending that have characterized the economy since it began growing again in the middle of last year.

International Paper Corp., for instance, cut capital spending to $534 million last year from $1 billion in 2008. This year, it expects to raise spending to about $800 million.

Some of the company's higher spending will add capacity in developing markets such as Brazil, where demand for paper products is growing. But in the U.S., where the bulk of International Paper's operations are, the money will go into maintenance, improving energy efficiency and meeting regulatory standards, rather than boosting capacity.

"Businesses invest when there's demand," said International Paper Chief Executive John Faraci. "There's not going to be any [U.S.] capacity expansion, or for that matter job creation, until you see an increase in demand."

American companies, particularly manufacturers, recently have been raising output without adding workers.

The Labor Department reported Tuesday that productivity, measured in output per hour of work, fell at a 0.9% annual rate in the second quarter from the previous quarter. It was the first quarter since the end of 2008 in which productivity didn't rise. That's a hint that companies may soon need either to increase workers' hours, hire new ones or install more labor-saving equipment.

Companies may keep increasing spending on equipment, computers and software even if they don't add capacity. Nomura Securities economist David Resler calculates that businesses didn't spend enough in 2009 on new equipment to offset the wear and tear on their existing equipment. As a result, the capital stock—the inflation-adjusted value of all business equipment and software in place in the U.S.—dropped 0.9% from 2008—its first decline since World War II.

Mr. Resler estimates that even with the recent sharp increases in capital spending, the total capital stock is still $100 billion less than it was two years ago. That suggests that capital spending could continue to grow strongly the rest of the year.

The rebound in capital spending and strong demand from overseas markets such as China have boosted companies that make equipment and software. Revenue at technology companies in the S&P 500 index was up an estimated 21% in the second quarter versus a year earlier, according to Thomson Reuters, and profit rose by 65%. Capital equipment makers such as Caterpillar Inc., Rockwell Automation Inc. and Illinois Tool Works Inc. reported large second-quarter sales and profits gains.

Sales at Bishop-Wisecarver Corp, a Pittsburg, Calif.-maker of motion systems used in everything from wood-shop machinery to food-processing plants, are up sharply from last year, and are on track to be as strong as in 2007, before the recession kickded in.

Bishop-Wisecarver President Pamela Kan thinks some of the rebound has come from companies trying to make plants more efficient, but she worries that many customers are catching up on projects put off during the downturn. That makes it difficult for her to gauge how strong business will be in the future and plan accordingly.

"I don't know how much of this is just pent-up demand," she said. "It's a finger in the wind now."

As a result, she's hesitant to hire, but is looking to add a few workers to the company's payroll of about 45. She doesn't plan to make any big purchases, in part because the company did major upgrades to its equipment right before the recession hit.

In general, manufacturers, which are benefiting from the global economic upswing, are boosting capital spending more than services companies are.

In a survey conducted by KPMG International in June, 35% of U.S. manufacturing executives said they expected to increase capital spending over the next year, while just 7% said they expected such spending to decline. In comparison, 27% of service company executives expected to increase spending, with about 9% expecting to spend less.

On Monday, Carrols Restaurant Group, which operates Burger King franchises and other restaurants in the U.S., said it expected to make capital expenditures of $40 million to $45 million this year, up from $37 million in 2009, but below 2008's $62 million. Most of that increase will be devoted to remodeling and equipment purchases at existing restaurants.

"We have limited capital spending for new-unit development this year so that we can continue to reduce debt," said company President Dan Accordino.

Ariens Co. of Brillion, Wisc., which employs about 1,000 workers making lawn mowers and snow blowers, has been buying capital equipment steadily over the past two years, taking advantage of the flood of inexpensive machinery that came on the market as other companies pulled back. Those purchases were aimed not at increasing Ariens' manufacturing capacity, but rather to bring in house work that it used to have outside suppliers perform.

Last year the company bought a pulley-making machine from a former General Motors Co. supplier for $1 million—a new one would have costs $4 million, said CEO Dan Ariens—and began making pulleys it used to buy. "It kept about 15 of our people busy," he said, helping the company avoid layoffs.

Mr. Ariens reckons he will keep buying equipment, but that he will be getting less bang for his buck in the year ahead than he has in the past year.

"I'm pretty confident that the cost of hardware and software is going to go up as the recession abates," he said.

Corrections & Amplifications

International PaperCorp. plans capital spending of about $800 million this year. This article incorrectly gave the figure as $800 billion.

Write to Justin Lahart at justin.lahart@wsj.com

 

Leadership by Inches, Seconds, and Degrees

This time of year is one of my favorites. For three weeks I am up before the sun to watch the Tour de France live. I even had the extreme luck to be in Paris in 1997 for the final stage of the tour. What a great party that was! What never ceases to amaze me is that even over almost 3 weeks of racing the leader of the race is often determined in more cases than not by seconds.

I started thinking more about this subject. Often the difference between winning and losing is the smallest of fractions. One degree difference turns hot water into boiling water. But how many times have I told myself that a little extra effort probably won’t be worth it, or noticeable, or matter in the end? Yet what really makes a champion a champion is that they consistently make that extra effort, and yes in the end, it does make a difference, even if it is just one degree, one second, or one centimeter.

I think this applies to business as well. I really loved Tony Hsieh’s book “Delivering Happiness: A Path to Profits, Passion, and Purpose ”. He had one key element for himself and all his employees. Make yourself 1% better each day. I was struck by the simplicity of this and that once again that continual small extra effort is what really leads one to stand out from the rest of the crowd. So I have decided that I don’t have to take on everything at 110%, I really just need to be consistent with that 1% change. In the end it will set me apart from the pack.

Why STEM Matters

I feel strongly that we have to engage our kids at a young age in science, technology, engineering and math (STEM). I was recently asked to write an article about why company supports the FIRST Robotics competition. This was one assignment that was easy to write. I am really proud to be a sponsor. It is amazing to see the change that occurs in the kids that participate in this program.

http://www.pddnet.com/editorial-pamela-kan-bishop_wisecarver-first-competitions-051710/

MARSHALL GOLDSMITH and FRANCES HESSELBEIN - A Discussion on Leadership

Thriving in the New Economy - WOMEN PRESIDENTS' ORGANIZATION - Annual Conference

EVENT: KEYNOTE ADDRESS – MARSHALL GOLDSMITH, best-selling author and Executive Coach and FRANCES HESSELBEIN, President and CEO of the Leader to Leader Institute / formerly the Peter F. Drucker Foundation for Nonprofit Management, former CEO, the Girl Scouts of the U.S.A. (1976-1990)
SPONSORED BY: Cisco

WOW! What an amazing opportunity to see these two together. They have such a real affection and respect for each other’s abilities. I came away with severl pearls of wisdom from such a seasoned and smart duo.

Some thoughts to ponder…

-          Live by example

-          Lead by example

-          Have personal humility and total respect for others – otherwise the rest does not matter

-          You must have trust

-          How our your treating the people around you?

-          Find solutions through respect

-          “Manage to the Mission” like our armed forces, you have to have a real passion for the mission. Clearly know the “why” and the “purpose”

-          Innovate or die – Innovation is the change that creates a new level of performance

-          We all have losses and sorrows – But we have to see these as opportunities to make a difference

-          Don’t waste energy you could be using to make a difference

-          Get your staff to your passion level

o   This should be your first mission

o   Talk about your passion/mission and live it

o   Respond with “That will further our mission” or “That is mission focused”

-          Remember – MISSION COMES FIRST!

NAVIGATING THE NEW WORLD OF SOCIAL MEDIA - MARKETING AND THE SOCIAL WEB

Thriving in the New Economy - WOMEN PRESIDENTS' ORGANIZATION - Annual Conference
SPEAKER: Jeanette Gibson, Director, Global Social Media, Cisco
SPONSOR: Wells Fargo
DESCRIPTION: Conducting communications in this new Web 2.0 world is a challenge for any company. How, when, why to use video, blogs, Twitter, Facebook and all other forms of social media tactics and strategies can be hard to navigate. Jeanette Gibson, Director of Global Social Media, Cisco will discuss the company’s strategy for Web 2.0 and share best practices on how Cisco transformed its product launch process using web 2.0 technologies and integrates social media into its communications and marketing campaigns.

I am totally sold on the value of social media for business, even in a B2B space like mine. I enjoyed learning more from a seasoned industry professional.

When considering social media remember:

-          Social media creates a 2 way street between you and your customers

-          Your customers are now defining your product in the market

o   When they are upset and post a negative comment

§  Say  “thank you” and “I’m Sorry” – most customers don’t take the time to post a negative comment, so treat it as the opportunity that it is to keep them

-          See it as a “social hub” – a place to aggregate – provide RSS feeds

-          What are your customers' passionate about?

o   That should drive your content

o   See sites like http://www.blendtec.com/willitblend/ this was driven by their customer response

-          You can use sites like Twitter to poll your customers during your meetings and presentations

o   Get real time feedback

o   Create a Twitter address for your event

-          Like it or not – every employee is now a media producer for you

-          Videos should be “snackable” – 90 seconds or less

o   Tie your videos into other technologies

o   People like to see behind the scene views

-          Use Twitter to conduct interviews

o   Answer with a video

-          Tweet Ups provide a way to create off-line events

o   Allows people to meet face to face

o   They get to meet you in person

o   Tools like Eventbrite are great for scheduling

 

It is an important tool in creating engagement with your customers:

-          Look what Starbucks in doing to create engagement with their customers

o   Allow their customers to  - share, vote, discuss, see new products, submit “My Starbuck Idea”

-          Dell has created the Idea Storm  - http://www.ideastorm.com/

-          Check out and learn from the top companies  - http://www.engagementdb.com/

 

Lessons Learned:

-          Remember you can put your meeting audio on iTunes

-          FTC guidelines around disclosure on your blogs  and postings

-          Public and private lines get blurred on social media

-          When filming videos remember your backgrounds and lighting

 

WHAT GOT YOU HERE WON'T GET YOU THERE

Thriving in the New Economy - WOMEN PRESIDENTS' ORGANIZATION - Annual Conference

SPEAKER: Marshall Goldsmith, Best-selling author and Executive Coach
SPONSOR: IBM
DESCRIPTION: Marshall Goldsmith is a world authority in helping successful leaders achieve positive, lasting change in behavior: for themselves, their people and their teams. In this fast-paced, interactive session, Dr. Goldsmith will describe classic challenges faced by successful leaders and how they can use ‘what to stop’ in personal development and coaching. Participants will practice feedforward – a positive, focused tool for development that has been successfully implemented by leaders around the world. He will then share a proven process for leadership development and coaching – along with published research involving over 86,000 respondents from eight major corporations. Finally, Marshall will have participants practice peer coaching and share exciting new research on how it can produce great results – at very low cost to the company. http://www.marshallgoldsmithlibrary.com/

I really enjoyed hear Dr. Goldsmith speak. He provided a lot of food for thought. Below are my notes from his session. It is hard to capture the try spirit of the session since much of it was interactive.
 -  #1 - You need to learn what to STOP doing!
 -  We all get stuck in our egos
 - Challenge is not theory but execution
 - Change happens when you follow up and really stick with it
 - The world becomes a better place when people "do"
 - Let others watch you develop
 - Peer coaching is a valuable tool
 - learn to be happy and reduce your feelings of guilt

Classic challenges when interacting with your staff
 - Try to win too much
 - Wanting too much value (no longer their idea) reduces their comfort of sharing with you
 - Passing judgment

As a leader - Remember
 - Your suggestions become orders
 - Before you speak - is the comment worth it? (even if you're are right?!)
 - Learn to say "Great idea!"
 - Take a deep breath and let it go
 - Help more, judge less, don't critique
 - Let go of the past
 - Learn
 - Help