Lessons From the Top of the World

At the PTDA Summit in Washington DC a couple of weeks ago I had the pleasure of hearing Alison Levine give the keynote address. Alison is an adventurer and mountaineer even though she has a medical condition that makes it even more life-threatening to climb extreme elevations. She has climbed the highest peak on every continent, served as the team captain of the first American Women’s Everest Expedition and skied across the Arctic Circle to the geographic North Pole.

Here are my takeaways from her speech. One thing about climbing mountains, it puts critical decisions into perspective really fast. Plus your judgment better be good, since a wrong decision can cost you and/or others your lives.

• Do more with less. Amen! I think especially in America we desperately need to learn this lesson. I feel there is a real fundamental issue with storage warehouses popping up all over the place.

• Do whatever it takes. It’s that old “a job worth doing is worth doing well." Put your best step forward every day.

• Ask the right questions … and keep asking. It can be easier for others to say no then for them to help you with the solution. Keep asking questions until you get to yes.

• Don't let fear stop you from doing things you want to do. Sometimes you just have to step up to the plate and go for it. I have found this to be very true. You can always “what if” a situation to death and rationalize not doing it, but growth comes from saying yes to those experiences that will stretch you.

• The team has to care about the team — but they also need the right skills for the environment. I think any manager can agree with this. It can’t be just the leader who cares about the team and the end goal. It has to be felt and wanted by all on the team. At the same time, alignment and passion for a goal isn’t always enough, there has to be the right match of skill sets and resources to get you to the end game.

• Take a big goal and break it down into smaller parts. What has to happen to get step one, etc. We all hear about setting BHAGs, but that can be overwhelming to the team and to the process. Breaking a big goal into key milestones makes it much easier to tackle.

• Even when going backwards you can still be making progress. Just going forward is not always progress. This doesn’t sound right, but boy is it true. Especially in my experience with product development. Sometimes you have to go backwards to get to the right outcome. Course corrections are a reality, charging ahead without checking in to the goals and the current reality can be extremely costly.

• Fear is OK — complacency is what will kill you. Fear is actually a good tool you can use to your advantage. You have to be able to react to the environment around you as things are shifting. Even when things are calm there can still be risk

• Build relationships. It is not just about being social – it is about creating a support system. That may even be with other teams, allies, or competitors — cross teams. Think about whom outside our team will you need to call on for help? Work to form strategic partnerships. NO ONE gets to the summit by themselves.

• Sometimes no matter how good you are prepared — things can still go wrong. How you react to the situation is key. Will having setbacks blows up your team or will you manage it so that it bonds the group together?

• Deal with change – “storms” are ALWAYS temporary. You just have to be able to take action based on the situation not your "plan." You have to realize that your plans are always outdated. Focus on execution versus following a plan

• Celebrate each milestone of the process.

• Have the judgment to make tough calls. Do you have the ability to turn around and walk away from the deal that is no longer good? You also have to be able to make good decisions even when the conditions are far from perfect. If the conditions aren’t right, cut your losses turn around and walk away. Remember, one person’s poor judgment can take down an entire organization. It is not about reaching the summit but the lessons you learned along the way and how you use those lessons going forward. There will always be more mountains to climb.

• Embrace failure. Previous failures are important tools for learning and achieving future goals. Make sure you can tolerate failure. You need room to fail to get innovation.

• Perspective – when you finally reach that summit or end goal, take time to reflect and learn. Make sure you get new viewpoints and learn from the experience.

Fresh Eyes

I am part of a program called Strategic Coach .At my last session we focused on how to become intentional. As we roll into the end of 2011 and look toward 2012 I think this is a great topic to disucss. We are all starting to work on our plans for the next year. How we approach this task is very critical. It is especially tough right now with so many uncertantainties happening in the US markets. One example that was shared with us really hit home with me. I have continued to think about this passage on many occasions since my class.
 

Sir Lawrence Olivier example:  Before every play, he’d look through the curtain and say “this is not last night’s audience. This is not last night’s theater. This is not last night’s play. I am not last night’s character. This is not last night’s script. This is not last night’s cast” He would progressively get more and more scared and would take himself back as though it was opening night again, with all that same energy. Even though he’d done it really well the previous night, he couldn’t count on it this time. Every new situation needs to be seen with fresh eyes, so you have to remind yourself. You want a balance between the emotions of fear and excitement so your motivation is at its highest to do the best possible job.

I find this concept powerful in so many ways. In my industry of industrial products, specifically linear motion products, I find a pervasive culture of the use of the “milkman run”.  This is the habit of habitually calling on the same customers over and over again. What really frustrates me is how often the “script” that is played while making these visits is just the “script” that was used on the last visit. The salesman often makes assumptions as to what the customer needs are and where they are on their project. How much more could be achieved if they took on the Sir Lawrence Olivier example? If they went into new opportunities or even current customers but with no preconceived notion of the customers’ needs or wants? Let the customer define a new “script”. How many more opportunities could be discovered?

So how can we apply this when doing our budgets and sales forecast for next year? Do you have clear intentions of your desired future state? Are your goals clearly defined and based upon facts, not assumptions? 2012 is not a repeat performance of 2011. Are you looking at your forecast with “fresh eyes”? How high is your enthusiasm and motivation level when planning for 2012? Will you be ready for the opportunities that lie ahead?

While the world appears to be in a state of flux I am still optimistic for the year ahead. I can envision a new “script”. I am working on seeing the trends that will lead to a new “play” being written all together. It is an extremely dynamic situation that is playing itself out and while I cannot control what is happening in the world, I can control how I and my company react. And as the sign in the Boston Celtics locker room states: “The game is scheduled, we have to play it, we might as well win.”

Spiffs, Chachkies, Trinkets, and Giveways, It’s a Battlefield!

I don’t know about your company but here at Bishop-Wisecarver conversations always get heated up when we start talking about our trade show giveaways. We are currently preparing for our next big show which will be FabTech in Chicago, November 14-17. If you are going to the show you can sign up for an appointment here. We will be showcasing our brand new booth creatively constructed for us by the fabulous folk at Mirror Show Management.

One school of thought is that engaging and fun handouts are valuable as a source of brand awareness. People love to play with fun and creative stuff and if they really like it, the item may actually find a home on their desk; conveniently with your logo starring at them. The hope is that the next time they are in the market for a product like yours, they’ll think of your company faster or sooner, and ultimately you may gain a sale.

Another faction of the group solidly believes (probably because they are engineers) that handouts must serve a purpose. They need to help our customers with something, ideally in reference to our products. They want there to be value in what we give away, or why do it at all?

Which leads me to the last camp, all giveaways are worthless. No one values them regardless of what the item is and nine out of ten times it is just going to end up in the hands of the vistor's children; thus no value to the customer and not even a useful tool in promoting brand awareness. Not too many seven year olds care about DualVee guide wheels or how to solve their linear motion issues!

So what camp are you in? Make it fun? Make it useful? Or just don’t even bother? What is the best giveaway you ever got? I’d love to read your ideas and feedback.

Who Will Win the Manufacturing Race?

I have just finished up a week of travel in India, and while I have been to Asia numerous times, this was my first visit to India. I toured numerous manufacturing facilities, and was very impressed with what I saw.

Our press in the states is filled on a daily basis with information about China and the country's growth. The Chinese government makes no bones about their plans around manufacturing and their desire to be the largest manufacturing power in the world. I wish our government had the same desire. The facilities in China are rapidly improving, as well as the infrastructure. Yet, after my visit to India, I wonder if in the end India may be the biggest winner of all.

I was impressed with what I saw in this country -- a desire to learn and succeed. In China, there is still a drive being pushed by the government, but I often feel that people operate in large out of duty to the collective good and the will of the government. In India, the desire rests at an individual level. Maybe I perceive India this way though because of my own American drive for personal growth and prosperity?

Only time will tell who will ultimately win the manufacturing race. Who knows, America may still recoup and regain the power it once had in manufacturing. But after this trip, I no longer believe it is a slam dunk in favor of the Chinese.

Everything Grows with Manufacturing

I am currently serving as Vice Chair of the California Manufacturers & Technology Association (CMTA). The CMTA staff worked very hard to put together the California Manufacturing Summit, "Everything Grows with Manufacturing" last week in Sacramento. I was happy and encouraged to see how many people showed up. I think the panel, with its diversity of interests, shows how important the topic is to our state, the economy, and our children's future.

Here are the top ten topics of discussion:

1) California cannot survive as a service based economy. A strong middle class is based upon the wages earned within the manufacturing sector (the average manufacturing job earns about 20K more than a service industry job).

2) We have to make technical education, with strong Science, Technology, Math, and Engineering (STEM), a priority for all schools for all children. Business has to get involved in helping schools develop their STEM curriculum. Young people need to get a marketable skill. Investing in career technical training is one of our best bangs for the buck. Apprenticeship programs are another way to advance the skill-set of our kids and grow long-term job skills, and prepare our future workforce. We have to open the door to the future of our kids. Eighty percent of California students don't go on to the UC system. Employment Training Panel funds (ETP) must be used in the best manner. California can't afford to lose these monies to the general fund. Workforce investment funds are needed to train for the needs of a higher skilled workforce. We need to see our schools as long term incubators.

3) Our skilled workforce is aging and we don't have a backup. We have to make manufacturing a focus again. Parents need to feel that it is a safe and smart choice for their kids to want to make a career in manufacturing. Kids have to see manufacturing as a cool, creative and innovative career choice and understand that manufacturing does pay well.

4) While California is the hot bed of venture capital, often the ideas are then produced in other states or countries. We need to keep production within our state as well. California dominates VC money because of the ideas and innovation coming out of our California university system. We are a financial innovator on a global basis. If California fails to attract the growth capital sector we will kill off our future. We currently have the JFK gap. JFK created a whole decade of enthusiasm by stating we have a purpose as a country. California is also a country. What is our purpose? A simple economic point, California is incredible at attracting the best minds into our universities but we completely lose the scale up after school.

5) Coast of Dreams. California needs an economic plan. It is shameful that a state that is the 8th largest GDP in the world has no defined economic plan. There is no economic development office for our state. This does not work for our state. This is about our democracy not just our state. We must create a vibrant private sector that allows entrepreneurs to take risks and build businesses and innovate. When people come together with a purpose we can get things done. Real passion makes a difference. We need to pick the most critical systemic reforms to focus on. A cabinet level position that reports to the governor to make business feel wanted, would be a great first step. We have to start marketing California. We had ten overseas offices at one time, now we have none. The private sector votes with their feet. We need to keep them here in California. In 2003 we shut down our trade and commerce offers, while other states were vastly expanding their offices. Even cities like Chicago are opening offices. We have to have an export and trade strategy. We have to acknowledge the problem. Stop the denial. We have depression era unemployment statistics in several counties in our state. This then leads to skills gaps in our workforce. California is still the innovation capital of the world and we need to get that message out and change perspectives. Texas is one cohesive state. California has to get its act together and got one purpose on both sides of the aisle. We need to develop a robust retention framework.

6) Globalization is not going to go away. California has an unfavorable business climate while other states are actively striving to improve their business climates. Supply chain is a vital piece of the pie for a vital manufacturing sector in California. We need to reduce the cost of manufacturing in California. We can take actions to change our policies if we have the WILL to do so. California is blessed by its visionaries that invested in our infrastructure and facilitated our golden area. Versus the choices we making now and cutting from our future. There is no commitment to how we are going to generate our future revenues.

7) Innovation - Research and development follows manufacturing wherever it goes. Small companies create a lot of innovative as well. We need to support the creation of new technologies. Manufacturing drives innovation not just entrepreneurs.

8) Going Green - The five largest clean tech deals where in California, a prime location for the bio-fuels market. We have the resources and the agricultural waste needed. A bio-fuel plant has to be within 50 miles of their source materials. California could really go after this market if it had the desire. It is a great opportunity for our state. But we have to build consensus across unusual allies to make this happen. Green business has to make good stuff happen sooner. Not just stop the bad stuff.

9) Regulatory Burden - The increased costs of doing business in California are well documented. But along with the costs comes an increase in time. Decisions by state agencies can take months or years. Don't drag out the answer; create a system that allows agencies to tell businesses yes or no faster. Site selection is a very metrics driven process. Why would a company chose to come into California with the current system? When companies are started here in California the easiest thing to do is to keep them here. California needs to focus on this issue first as to why business is leaving and/or not reinvesting in our state.

10) Create an informed state government. All government officials need to understand the regulatory impact of their actions. We have to get our act together and got one purpose on both sides of the aisle. California needs to establish a framework of leadership. Politicians tend to be risk adverse. But at this juncture California needs political leaders to take some risks. The governor needs to show up in the parts of our government where things need to get done. That would create an exciting future for our state. The governor needs to be an economic cheerleader for our state. Our state politicians need to demonstrate leadership that they care about a change in behavior. We are at a unique juncture in our states history. The best is yet to come for California.

CMTA Manufacturing Summit:
Moderator for the Day: Political Columnist, California's Capitol - Greg Lucas


Panel:
Bob Clesia, Boeing
Ross DeVol, Milken Institute
Bob Dutton, CA 31st District, CA Senate
Bob Epstein, E2
Mike Jimenez, CA Correctional Peace Officers Assoc.
Eric McAfee, AE Biofuels, Inc.
Gavin Newsom, Lt. Governor, CA
Art Pulaski, CA Labor Federation, AFL-CIO
Jack Stewart, President, California Manufacturers & Technology Association (CMTA)
Julie Meier Wright, CA Council on Science & Technology

CMTA overview of the summit - click here

Was Kermit Right?

Several weeks ago I attended the Annual Conference for the Women’s Presidents Organization in Vancouver, BC. One of our keynotes on the last day was Mae Jemison, and she pushed the group to think about our world environment and the impact our businesses are having on the world. She asked us if we were really being good stewards in how we run our businesses. My table had, at the gist, the following questions posed to us:

1) Run your company for maximum profits and ignore the environmental impacts, and

2) Sacrifice profits, make less money but operate in an environmentally respectful way.

I was seated at a table of all manufacturers and I am proud to say we all decided that there was actually a third option – respect the earth and still make maximum profits. Maybe since we are manufacturers we think in a more solution minded manner. But I do feel that one option does not need to be exclusive of the other.

So this question has been bouncing around in my brain ever since the conference. And I keep asking myself, is it really that hard for a business to be “green”? Flashbacks of my childhood came to mind and I remember Kermit the Frog from Sesame Street singing, “It Is Not Easy Being Green.”

Now let me just say I am not talking about “green” to the level like my state of California is trying to mandate in AB32 or the green chemistry initiative.

I am talking about common sense, how do I run my company to the best of its ability and make my product for a profit and impact the environment as little as possible. I understand that there are some companies that won’t make changes unless mandated, but let me just live in a world, for a few minutes, where people are responsible for their actions and feel a responsibility to run their companies for the good of the bottom line, as well as the environment.

Bishop-Wisecarver’s first step on this journey was to become a Bay Area Green Business.The process was not too difficult. We had to make a few changes and investments in our business and go through several audits but the changes we made where good financially, as well as environmentally. We use less water and electricity and thus save money on an ongoing basis. We also received rebates for several of the investments, and that made it even less painful.

We are very focused on LEAN/Continuous Improvement methodologies. To me, this is really the basis of a good “green” program. We now strive for more commonality of parts (fewer materials) and faster more efficient processes (less energy and processing materials). When we look at the improvement of our capital equipment, many solutions offer better efficiencies with less scrap, little to no coolants and a reduction of other chemicals. Designing closed loop systems that recycle fluids etc. also help to reduce our impact on the environment.

So, I wonder is Kermit really right? Is it hard to be “green” or is it really just more the discipline of looking at how to run your business in a more efficient way? One that improves your bottom line as well as reduces your impact on the environment; not regulated by government, but regulated by common sense to use the least amount of resources (lower costs) to produce your product? What do you think?

Your One Piece of Advice

I am currently in Vancouver BC for the annual Women President’s Organization conference.We ended a great day of programing last night with a dinner. At my table our hostess threw out a fabulous question – looking back on your time as President what is the one thing you wish you had done or learned sooner? Wow! Great question and it fueled a fabulous evening of discussions. What is great is that all the advice was relevant regardless of the business. From me being a manufacture of bearings and linear guide systems, to law, marketing, construction, consultation, healthcare and production companies, the advice all rang so true for all of us.

The following is a list of some of the top pieces of advice we discussed:

-          Trust your instincts

-          Make your career something you really love and inspires you

-          Don’t be afraid of lawyers

-          Be committed to your decisions

-          Ask for help – reach out to your network

-          There is real power, knowledge and support in peer review groups

-          The more you delegate, the more your business will grow

-          Learn and continue to work on how to be a great leader

-          Don’t be afraid to scale your business

-          Have a strategic legal plan for your company

This is the start of a great list. I would love to read what others advice would be. Please post your comments below for all to learn from.