Scenario planning and annual budgets

7 01 2010

Did you make a annual budget for 2010?

Bet it wasn’t easy.

Did you think about all the different scenarios that might happen in 2010, and incorporate those variables into several budgets, or was your final product one single annual budget?

I am not a fan of annual budgets unless they are tied into Scenario Planning.

I believe that they are a necessary exercise that helps in anticipating what revenue and resources a company might require in the coming year.  But I truly dislike those who compare real results with a static budget created 6 months or a year prior.

Businesses cannot perform  “as planned” in rapidly changing environments.  Budgets can serve as guides for spending and investment if properly assembled, taking into account internal and external factors of influence.

I am almost sure your budget made in October or November needs to be redone (if you want it to reflect real results) in order to reflect the massive changes that have already occurred in the economy and business environment.

In chaotic times, when uncertainty is the only sure thing, the traditional budget process can be a waste of time for the people making them, and for those “using” them if scenario planning is not taking place.

When the environment is subject to so many significant changes that will affect our suppliers, costs, customers consumption, international competition, etc., it is wiser to make several budget scenarios.

These scenarios will contemplate and plan for possible (or impossible) significant changes in the business environment, and help the organization to quickly take advantage of the situation when and if they occur.

What if oil prices plummet, or skyrocket?

What if inflation takes off, or recession gets worse?

What if there is a massive terrorist attack?

What if there is an economic collapse in Asia?

What if our number one supplier closes their doors?

What if the automobile and construction industries fall deeper into a slump?

What if the USA puts huge import duties on imported products?

It’s not about guessing what will happen (traditional budget).

It’s all about preparing to what MIGHT happen (budget scenarios).

How many scenarios should a company create?   As many as possible in order to analyze the strategic impact on the entire supply chain, cost structure and customers buying patterns.  It’s having a battle plan A, B, C, and D.

This budget scenario exercise is an ongoing process that involves risk assessment, prediction of economic consequences to potential or real events, and should involve the entire management team.  Depending on the actual environment and conditions this assessment might take place several times a year.

The identification of risk areas that will have significant effect on revenue or costs,  and the  acceptance that things will continue to change, will enable your organization to thrive and survive during turbulent times.

Links

How to do Scenario Planning

Scenario Planning

The Secret of Successful Scenario Planning





Stop telling me how free it is

6 01 2010

I don’t trust anyone or anything that tells me that something is ” free”.

Experience has also taught me that anyone actively promoting how “free” something is has a very special and usually monetary goal…to get me to buy something later.

If it is free, if you are giving it away with “no strings attached”, why are you promoting it and telling me?

If you are such a wonderful samaritan and altruistic person or organization, then why insist that I understand it is free?

Giving something away?  Just put it out there, let me pick it up, use it, read it, learn from it, watch it, or whatever…and then let me walk away without chasing after me trying to sign me up or charge me for something else, or looking for me to pat you on the back.

Part of the delight of finding something “free” is that it not overly promoted as being free, it’s a surprise, a delight.

If you are going to give something away, just do it, don’t make a spectacle out of your “good will” and “good intentions”….let others do that for you.





What signals are you sending?

5 01 2010

If you received NO economic benefit from your job.  Would you continue to do it?

If you answered “no”, think about what message and attitude you are sending to your clients, co-workers and business network.

If you answered “yes”, think about how this makes you different and unique to your customers, clients, contacts and relationships.





Who’s to blame?

4 01 2010

Don’t blame the world.

Don’t blame the boss.

Don’t blame your co workers.

Don’t blame the customer.

It’s all about our ability or inability to convince them.

It’s all about sales.

Our ability to “sell” the proposal, to “sell” our achievements, to “sell” our value,  to “sell our enthusiasm”, to “sell” our ideas.

If we find ourselves blaming others, it is time to change your plan, change your arguments, attitudes or presentation.

It’s our responsibility, not theirs.

Find a way to convince your audience, co workers, boss or clients, to make them enthusiastic or to understand.

If the customer wants red, and you want to sell blue, find the way to convince them that blue really IS better.

Or find those customers who want and need blue.

Or change what you are doing and sell red.

It’s not about the others inability to understand.

Stop making it their fault.

It’s all about our ability to provide the information, arguments and ideas that allow them to understand.

Stop pointing fingers and assigning blame.

It’s all about us.





It will never work

15 02 2009

When trying to change behaviors, habits, routines or goals in a company on of the first difficulties faced is the opposition from co-workers, employees and team members.

“It won’t work”.

“Completely wrong”.

“They don’t understand the problem, this is crazy”.

Ï’m not going to waste my time on this, it’s stupid”.

They might be right.  It might be stupid, crazy, it won’t work…but it is never a waste of time.

Change, applying new and disruptive methods to operations and problem solving, is always a gamble, and always generates resistance, and many times will not solve the problem.

People say they want change, but only change that has no cost or discomfort associated with it.

Changes will always..always.. always…stimulate new ideas, and get people talking, and more importantly thinking about the problem, the solutions or the process.

This new dialogue, about what is the real problem, about what is a better solution, is what we are after.

Creating and implementing new ideas, creating chaos in some cases, forces people to move out of a “comfort” zone.

Don’t be afraid to hear “it won’t work”, that may be exactly what the team needs to respond.

Your reply should be “OK, what is a better solution?”  Do not focus on defending the idea, get the conversation going how best to solve the problem, or define the problem.





Start the year – forgiveness

23 12 2008

You have the opportunity to forgive others this holiday season

Give yourself permission to forget the past

Give yourself the chance to start over

Throw out the grudges and anger held inside

Forgiveness is not for others, it is for you

It is an internal process of acceptance and renewal, you need to forgive in order to grow

Give yourself the chance to start over this new year, wipe the slate clean

Living for the future is much more interesting than being chained to the past





Happy New Year 2009

23 12 2008

2051756510_c0138daf6e1

My very best

wishes for a new year

filled with health,

prosperity and

happiness


Great success with your challenges and new projects

How can I help?





SAPICA 2008 – The footwear and leather goods fair

7 08 2008

SAPICA 2008 Spring/Summer

September 25 – 28, 2008

Poliforum Convention Center

Leon, Guanajuato, Mexico

promotion.sapica@cofoce.gob.mx

COFOCE, the World Trade Commission of Guanajuato, would like to invite you to attend the SAPICA Spring/Summer shoe fair in Leon, Guanajuato Mexico on September 25-28, 2008.

COFOCE is offering free individualized introduction and agenda services to qualified foreign buyers and visitors attending SAPICA 2008 in order to increase their chances of doing business during the fair.

COFOCE’S international trade experts will assist you in: making an agenda and appointments during the fair, translation (if required), pre-screening contacts and will provide detailed information about doing business with the Mexican footwear industry.

COFOCE will save your business time and money by allowing you to focus and negotiate with pre-screened Mexican footware manufacturers during SAPICA 2008 that can meet your needs and requirements.

If you are selling, investigating and sourcing men’s, women’s, children’s, or western footwear, or seeking manufacturers or contract manufacturing for your brand or designs, SAPICA 2008 is one event that should not be missed.

Take advantage of this special offer from COFOCE and SAPICA to find suppliers and partners in Mexico in order to maximize profits in 2009.

Contact Lee Iwan at promotion.sapica@cofoce.gob.mx for more detailed information.

What is SAPICA? SAPICA is the most important shoe fair in Latin America, drawing international buyers from the USA, Canada, Europe, Japan, and throughout Central and South America. The September edition will be featuring the Spring-Summer fashion for 2009.

How big is SAPICA? Last year’s fair drew over 850 exhibitors, +12,000 buyers and +35,000 visitors under one roof at the 484,000 sq. ft. modern Poliforum exhibition center in Leon.

Who should attend SAPICA? Footwear buyers and executives, purchasing agents, distributors, brand managers, agents, representatives, designers and anyone involved in the international footwear industry.

Why attend SAPICA? Mexico offers excellent competitive advantages including: Excellent logistics to the North American markets, quality components, current technology, know how, strong legal system and trademark protection, Free Trade agreements with 42 countries including USA, Canada, the European Union, Japan, and Israel among others.

How to get to SAPICA? Leon is located in the geographic center of Mexico and is served by American Airlines, Continental Airlines, Mexicana, Aeromexico, Click, and Aviacsa. There are numerous direct daily flights to Leon (BJX) from Los Angeles, Dallas, Houston, Chicago, Tijuana and Mexico City.

Where to stay during SAPICA? Leon offers numerous hotels with close proximity to the Poliforum Convention center including: Fiesta Americana, Holiday Inns, Real de Minas, La Estancia, Fiesta Inn, Mexico Inns, NE Hotel, Howard Johnson, Radisson, Enterprise Inn and many more.

When is SAPICA? SAPICA 2008 will be held September 25, 26, 27 and 28, 2008. Show is open to visitors and buyers on Thursday to Saturday from 9:00 AM until 8:00 PM, and Sunday from 9:00 AM until 4:00 PM.

How can I register for SAPICA? Contact Lee Iwan at promotion.sapica@cofoce.gob.mx for more detailed information on how COFOCE can organize your visit.

Links of Interest

Mexican Footwear – How to Find Competitive Footwear Suppliers in Mexico

COFOCEhttp://www.cofoce.gob.mx

SAPICAhttp://www.sapica.com

Hotels in Leon, Guanajuatohttp://www.squidoo.com/leonhotels

How to do business in Mexicohttp://businesssob.blogspot.com

Promexico, Buy in Mexicohttp://www.buyinmexico.com.mx

Promexico, Invest in Mexicohttp://www.investinmexico.com.mx





Our future depends on education

4 12 2007

Over the past months I have noticed a new trend among forward thinking governments.

Massive investment in education as a tool to increase their advantage in the world economy.

The trend is on supporting education, and countries are lining up and investing in education to insure they are poised to take advantage of the future.

Read this excerpt from Value Driven by Geoff Colvin in FORTUNE.

“We’ve known for a long time that this day was coming, and now it’s here: Countries are finally realizing that their future prosperity depends not on natural resources or even on financial capital, but on human capital. Companies have been battling for years to attract and keep the best people. Now countries are engaging in the same fight”

Read the entire article here: The battle for brainpower.

For years the USA, Europe and Japan had the money, universities and jobs that attracted talent, and paid for it.

These countries are filled with national and imported global talent, and the benefits can be measured in dollars and cents, Gross National Product, number of patents, and technological leadership.

Things are changing.

What happens when this imported talent stays home?

The ability to attract or retain top talent in a country will result in more patents, more and better processes and products.

The overall increase in education in a country plus the import of talented people, will provide huge economic benefits to a country.

Future economic growth, it’s not about cheap labor anymore.





Commoditization, is it happening to you?

28 11 2007

“We are living in an era where there are too many retailers serving too few customers and where there is no longer any brand loyalty or retail loyalty” Kevin Burke, President/CEO. The American Apparel and Footwear Association.

From this comment by Mr. Burke I believe the apparel and footwear industries are in the midst of an important struggle, to move away from their current status of a commodity business.

The winners will be those with strong design, distinct brand, and smart developed distribution systems. The same can be said for almost any current industry.

Too many retailers and points of sale? I doubt it. What I interpret from this comment is that there is intense competition between retailers, and instead of seeking exclusivity or innovation to attract and maintain customers, they are using the oldest,simplest trick known….lowering product prices and with it, the quality of the shopping experience.

It is a classic example of commoditization.

Manufacturers are also to blame. The rush to sell their product to high volume buyers insures loss of control of the marketing and retail channels.

The rush to sell everywhere, to everyone, at the same time allows and promotes price competition and price wars between the various manufacturers and retailers.

Too few customers? The real problem is overproduction. Current manufacturing focuses on high volume production and this encourages the standardization of product. The desire to reduce fixed costs drives manufacturers to seek out cheap world labor, increase productivity through mechanization (which encourages product standardization) and the outcome is a mountain of finished products, created all over the world, that are indistinguishable from one another.

Commodities. Most apparel and footwear companies focus on low cost, high volume manufacturing, they sell to wholesalers or retailers that also focus on volume. So suddenly branded products can be found in department stores, boutiques, grocery stores, flea markets and the Internet. The product is everywhere, consumers have learned that one should just look for it where the price is lowest.

This also makes it easier to pirate and sell a product to a growing network of sales outlets focused on offering a brand name for less.

No brand or retail loyalty?
If there is no customer loyalty (read as no perceived advantage to shopping with you versus the competition), and loyalty is important for continued growth, profit and success, then it’s time for a serious reevaluation of how one is doing business.

How can one stand out from the crowd, do something different and unique, and create a sense of exclusivity and prestige for the consumer?

This is the future.

Related Links

The easy way

10 top reasons for poor customer service and their solutions

Give this away

Are you listening to what the customer needs?





No shortcuts to being a great leader

27 11 2007

There are no shortcuts to effective sustained leadership.

It is not easy to be a leader, or to maintain a position of leadership.

There is no book, movie, seminar or short course that will turn one into a leader.

We can learn about certain elements of leadership that we may or may not possess, and incorporate these ideas into our lives and behavior.

But leadership is not about what information we possess, our good intentions, or a business title and corner office.

It’s all about what we show to others.

It’s about what we do.

Day to day actions.

Sustained leadership success comes from; listening, attention to detail, implementing ideas, perseverance in the face of adversity, willingness to embrace innovation, training and mentoring others, planning and risk identification, and the most important factor of all, providing a living example to others.

A true leader provides a model to others.

Leaders will consistently provide examples of; honesty, integrity, ethics, dignity, passion, diligence, capacity to learn, and unwillingness to be defeated.

A true leader will also provide examples of how to lose, how to accept defeat and move on, because leaders are not always winners

Leadership is not a 9 to 5 job, it’s a way of life.

Related Links

Leadership lesson – A Message to Garcia

Leadership, do you want the job, or just the title and benefits?

What defines an exceptional leader

Improve your leadership profile





Handy telephone dialing guide for Mexico

5 11 2007

Dialing the phone in Mexico is a bit complicated due to different access codes and dialing instructions for the different carriers.

In order to make your life easier, for business or vacation travelers, here is quick comprehensive telephone dialing guide for landlines and cellular phones in Mexico.

Covers 90% of the telecommunications companies currently in Mexico.

Handy Telephone Dialing Guide for Mexico

Dialing Instructions for Telephones in Mexico

Dialing from

Received by

How to dial

Number of Digits

Landline in Mexico

Cellular in Mexico (local) same area code

044 + Area code + telephone number

13

Landline in Mexico

Cellular in Mexico, long distance

045 + area code + telephone number

13

Landline in Mexico (Not Telmex)

Cellular in Mexico, long distance

01 + area code + telephone number

12

Landline in Mexico

Nextel (local) same area code

Telephone number

8

Landline in Mexico

Nextel in Mexico, long distance

01 + area code + telephone number

12

Landline in Mexico

Long Distance, telephone in USA

001 + area code + telephone number

13

Landline in Mexico

International long distance

00 + country code + area code + telephone number

Cellular Phone in Mexico

Landline in Mexico (local call)

Telephone number

8

Cellular Phone in Mexico

Landline in Mexico, long distance

01 + area code + telephone number

12

Cellular Phone in Mexico

Cellular (local) same area code

Area code + number

10

Cellular Phone in Mexico

Celluar in Mexico, long distance

045 + area code + telephone number

13

Cellular Phone in Mexico

Nextel (local call), same area code

Telephone number

8

Cellular Phone in Mexico

Nextel in Mexico, long distance

01 + area code + telephone number

12

Cellular Phone in Mexico

Telephone in USA

001 + area code + telephone number

13

Cellular Phone in Mexico

International long distance

00 + country code + area code + telephone number

USA

Landline in Mexico

011 + 52 (country code for Mexico) + area code + number

15

International (not USA)

Landline in Mexico

00 + 52 + area code + number

14

USA

Cellular in Mexico

011 + 52 + 1 + area code + number

16

International (not USA)

Cellular in Mexico

00 + 52 (country code for Mexico) + 1 + area code + number

15

Lee Iwan Accumulated Experience Business South of the Border October 25, 2007

Telephone Dialing Guide for MexicoTelephone Dialing Guide for Mexico





Leading your team to mediocrity

15 06 2007

“Too many chiefs and not enough indians ”

Slow Leadership has a post entitled Too Much Leadership that reminded me of a key concept required to effectively lead and manage people, and insure success in our organizations.

The willingness to pitch in and do the work along with the team.

There is no miracle formula to sustained success.

It’s about getting the work done.

It’s incredible important that we raise our hands to volunteer and roll up our sleeves, and not just point our fingers and give orders.

It creates a sense of camaraderie, provides an understanding of what are co-workers are dealing with, and shows a spirit of “doing what it takes” in order to make the business work.

The desire to “be the boss” somehow leads people to think that they are exempt from work, or entitled to give orders instead pitching in.

Being the leader involves identifying and eliminating the bottlenecks that affect your people in their work.

Supervision and coordination of work activities is part of that managerial responsibility.

Assuring that everyone gets their job done efficiently is what will make you a successful manager.

Best way to understand what that takes is to jump into the fray once in a while, listen, learn, work and think how to make it better or more efficient.

Do more and supervise less.

Start using your whole hand at work, and not just your index finger.

Related Links

Successful Managers should be breaking the rules

Slow Leadership:  Too Much Leadership

20 ways to guarantee failure as a manager 





20 ways to guarantee failure as a manager

15 06 2007

A guide for the new leader who wants to alienate all employees and fail as quickly as possible in their new management position

  1. Immediately purchase new office furniture and redecorate your office.  Spend a lot of money and make your office look very different from any other office in the company.
  2. Insist on new computers, cell phones and software for your use only.
  3. Spend several days working on your title, the press release announcing it and how your business cards look.
  4. Insist and “fight over” small insignificant details and decisions in meetings, leaving big decisions and “big picture” items in limbo.
  5. Treat the people in the organization as if they are there for your convenience and well being.  Be as rude as possible in your communications.  Demand, never ask.
  6. When in meetings and conversations, always answer the ringing telephone, type and send Blackberry messages, read and respond to all incoming email and instant messages.  Interrupt frequently and ask people to repeat themselves because you were busy.
  7. Plan company workshops or events aimed at creating a new atmosphere of “community” at work for weekends or after work hours, and preferable with short notice.
  8. Avoid sharing any information about your goals, ideas and strategies about the company with employees.  Always talk about theory, never get specific.  Keep it fuzzy and out of focus.
  9. Don’t listen to any ideas, solutions or complaints from employees or managers who report to you, especially if they have been with the company for a long time.
  10. Make strong permanent opinions about the company and employees, solely on the basis of discussions with top management and the business owners.
  11. Take lots of “business trips”  and attend every professional seminar and conference possible, do not take anyone from the company with you.  This is especially effective if the company is suffering from cash flow problems.
  12. Talk about implementing massive changes, re-inventing methods and strategies, promote innovation and tell everyone that money is not an issue for them to worry about, at the same time focus all your energy on cutting costs, and minimizing the organization.
  13. Immediately terminate some employees because someone told you to do it.
  14. Insist that everyone in the company learns how to work with a new software program that you like.
  15. Request reports and analysis from all managers and department heads, then several days later, repeat the request.  Don’t read or respond to any report and never acknowledge that you have received it.
  16. Schedule many inter-departmental meetings at odd hours, don’t provide an agenda, then cancel them at the last minute, or just don’t show up.
  17. Always refer to customers as if they were something evil and undesirable.
  18. Constantly remind employees that before you came to the company they were primitive and uneducated, without a clue as to what business is all about.
  19. Hire consultants, lots of consultants, expensive consultants are best.
  20. Never make a decision by yourself, always try and find total consensus on all issues.

Related Links

Motivation, not the leaders job

Leadership, do you want the job or just the title and benefits 





Maximize the impact of business conferences, seminars, and special events in your organization

15 06 2007

Attending business conferences, special events, lectures, seminars, classes and courses are part of our professional lives.

Events provide great information, professional tips, up to date industry information, inspirational and motivational ideas, and fantastic opportunities to expand your business network.

Unfortunately not all the events are interesting, useful or entertaining.   At times it is a waste of time and money.

But the occasional great event is inspirational, we leave the room vibrating with ideas, enthusiasm, motivation and the desire to put the words and concepts to work in our own lives and business organization.

Two days later we forgot about what we were going to do, how we were going to do it, and why it was important.

Then we sign up for another event, and the cycle repeats itself.

How can we take full advantage of the ideas, knowledge and opportunities from business events?

To get the most out of these events a bit of planning and follow through will allow you to maximize this knowledge and it’s impact in your professional and personal life.

Before you go

  1. Main reason why are you going to attend?  Write down your reasons for attending; to gain specific business knowledge, exploration (don’t know what to expect, but it might be good), my boss thinks it might be important, seek inspiration or motivation, networking opportunities.
  2. Why do you expect to learn, or who do you expect to meet?
  3. Can you do anything to prepare before you go?  Contact people before you go, read works from the author or about the topic, prepare specific questions?

After the event

  1. Write a brief,  one page, executive summary.
  2. Include the name of the event, place, date.
  3. What was the conference/event about.
  4. Note any reference materials given at the event, where are you going to file or save them?
  5. What did you learn that is applicable to you or your business?  This might be a general concept, or specific information, it’s what you want to bring back and implement.
  6. Who else in the organization should know about the information or is affected by it?
  7. Who did you meet while there, full contact information, how can they be interesting to your business in the future.
  8. What follow-up required (thank you notes, contact specific people, more research, share it with others, file it, forget it).
  9. What should be investigated further, and who should do it.
  10. What does it take to implement or disseminate the idea or knowledge in your business (resources, people, attitude, commitment).
  11. Personal comments or observations, what did you feel.
  12. Retain all these executive summaries in a file titles “Events, Conferences, Seminars, Classes, Lectures” or something similar, organize events by date, subject or month.
  13. Review your summary in 30 days and note progress or lack of progress.   What happened or didn’t happen?

The key to maximizing the impact of a special event in your organization is to take a few moments to reflect upon your objectives before attending and then summarizing your learning, next actions and follow through required after the event.

Simple, focused and effective.

Highly recommended that each attendee from your organization be required or encouraged to keep such a file, and share it with their co-workers or managers.

Related Links

Video: Mind Mapping by Stephen Pierce 

How to systematically analyze any decision for better decision making

9 steps to better decisions





Can we allow ourselves to work and enjoy it?

5 06 2007

 I’d like to work with Tim Smit.

I determined that halfway through an article in the BBC News article by Peter Day entitled  Tim Smit’s Monkey Business

I think it would be quite an experience.

A supportive and demanding environment, requiring the daily application of personal and professional skills.

Optimal results would be demanded, incompetence not tolerated and everyone would be focused on achieving positive and focused results.

Creativity and innovation are sought out and rewarded.

It might even be fun.  In fact I’m sure it would be.

Fun and rewarding in the sense that the people working with Tim are doing what they want do to, have the skills to do it, they work with people they like, and are focused on achieving something, together.

That’s a great definition of my ideal workplace.

Take a look at some of his management “rules” for his current project, The Eden Project

  •  Wants to work with people he likes, interviewers must provide a 10 minute performance of something entertaining
  •  Seeks extroverts with opinions, not seeking “yes men”
  •  Job interviews take two days and include potential subordinates
  •  Don’t make important decisions at work, do it over dinner or a glass of wine when you are relaxed and more “human”
  • Take responsibility for your job and actions, don’t pass it on to others
  • Once a year make dinner for your co-workers, read a book you don’t want to read and report on it, forced activity in order to broaden your horizons

We focus too much on specific business skill sets and abilities in business and management as a “guarantee for success”.

We forget that we are human beings, and work and interact with other human beings.

Business is all about participating in a community.

If you, your product or your service is wanted and desired by the community, they purchase it, a profit is probably generated.

We are successful.

Is there anyone who comes to work and doesn’t think they have to have the skills to do their job, to interact with others as a team, and be productive?

Do we need to hammer this into our people any more?

A little fresh air, creativity and innovation is in order.

Time to create a community and social organization, with the goal of creating a product or service.

Creating an active, open environment where ideas can be developed, forcing ourselves to learn new skills, having a relationship with those around us,  great ideas.

Keep on eye on Mr. Smit, his project and his ideas.

Some sort of financial, social or commercial success for his project will turn his ideas loose upon us and maybe change the world.

I can hardly wait.

Related Links

Tim Smit’s Monkey Business 

The Eden Project 

BBC Four Profile – Tim Smit

Successful Managers should be breaking the rules

Weird ideas that work 

Are you on the right team? 





Oil and water

30 05 2007

Oil and water don’t mix.

That’s what I believed until today.  Oil and water do mix after all

In an organization there are departments that don’t mix well, or not at all.  Sales, finance and production departments are notorious for having problems or “not mixing”.

Each of these groups has a different way of thinking, they create very different processes and final products, it makes sense that they will not agree to, or understand what the other departments are doing.

Tension, misunderstandings, frustration and chaos can result if left unattended.

Sales and marketing is concerned with creating or identifying demand for the product and negotiating an agreement.  It’s about people and relationships, emotions, taking advantage of opportunities, being creative innovative and adaptable, exploring new ideas, making sure the customer is satisfied.  Uncertainty is a large part of every business day.

Finance focuses on numbers.  What did we do in the past, what are we doing now, what will we need in the future and how do we reduce or eliminate our risk.  Structured, predictable, logical, they label everything.  Their evaluation and decision making is based on guaranteed outcomes and not on uncertainty.

Production is concerned with efficiency and is also numbers driven.  Processes are studied, analyzed and standardized in order to maximize control and eliminate  errors.  They prefer set plans and actively resist rapid or constant deviations and modifications.  Believers in contingency plans and backups, logical, not fond of uncertainty.

The goal is to acknowledge that every group is very different, with different points of view, and that these differences are essential to the success of any organization.

The entire system (organization) benefits from the interaction, questioning, and controls required by each department.

If there is total agreement, all the time, something is wrong.

Leadership’s role is to provoke, question, listen, analyze and push this chaos toward a goal.

Successful leaders know how to make oil and water mix,  and make it happen on a regular basis.

Related Links 

New Scientist – Oil and water do mix after all

Are we killing team performance by over communicating 

Leadership, want the job or just the title and benefits

Leadership – who do you want to lead





Observations on illegal immigration in the US, possible solutions

25 05 2007

 What are we going to do with illegal immigration and illegal immigrants?

How do we stop illegal immigration?

How do we control immigration?

Take away the angry rhetoric, xenophobia, unsubstantiated claims and statistics and we see an problem that is global in scope and range.

It’s an economic issue. It’s a political issue.  It’s an emotional issue.  It’s a human issue.  It’s a moral issue.  There is no absolute “right or wrong” or “black and white”.

Poor people want to improve their condition and look toward wealthy countries as places of opportunity and employment.

Wealthier countries cannot allow uncontrolled immigration and growth if they wish to sustain their economic advantage and growth patterns.

Who has the right to live and work here or there?

There are two important issues at the heart of the issue:

1.  A country (government) has the right to close, defend and control their borders and all immigration.

This is a no-brainer, of course a country can do whatever they want with their border, immigration and foreign trade. It is their right to make the rules and regulations that govern their territory and for those who wish to enter the country.

Of course we have to remember that the US border consists of over 12,034 km of land boundaries and 19,924 km of coastline.

This makes total enforcement of the border a difficult if not impossible task. Keeping people out of the USA with walls is not possible.

Controlling the border, monitoring legal immigration  and enforcing laws to control or eliminate illegal immigration for the benefit of the country and it’s citizens is the goal of any good immigration policy.

2. What to do with existing immigrants currently living and working in the country?

This is the tricky one.

The US has clear laws and policies regarding illegal immigration, they have been in place for years.  The lack of enforcement and lack of application of the laws has resulted in 12 to 20 million illegal immigrants currently residing in the USA.

Solutions and Alternatives for existing illegal immigrants in the USA

1.  Provide Citizenship.  Allowing “fast track” to citizenship for existing illegal immigrants in the US sidesteps or ignores laws in place that were never seriously enforced over the past years.

Legal challenges, fairness issues, political problems all prevent this solution from being proposed, evaluated and accepted.

Arguably the best, fastest, cheapest solution that will not disrupt the economy in the short term.

Another problem to consider is that of trust.  Will an illegal immigrant trust a government program that brings them out of hiding and identifies them?

The next issue, if all the illegal immigrants sign up and become US citizens are they paying their taxes, are their employers withholding taxes?  If not there is a new legal challenge, the identification of tax evaders at the business and personal level.

2.  Find them and deport them.  Enforce the current laws.   Tracking down and deporting all illegal immigrants is not logical or cost effective due to the estimated amount of immigrants in the US. (10,000,000 to 20,000,000 according to some estimates).

It is the best political solution, makes headlines and polarizes people.  The idea that “we are just enforcing the law” is heard by followers of this strategy.

Unfortunately it also disrupts the economy at the local level when communities or workplaces are singled out for “raids” and massive deportation.

If there were a method to identify and return all illegals to their countries quickly the US economy would fall into a huge recession or depression due to the sudden and massive loss of labor.

If the US had been enforcing their immigration laws over the past years they would not have this situation.

But they didn’t do this enforcement in the past, and now what?

3.  Make new legislation prohibiting interaction and financial transactions with illegal immigrants. Good political solution, great headlines but does little to stop the underlying economic differences between the US and other countries (the reason why people immigrate).

New laws do not stop or slow down the entrance of illegal immigrants.  The fundamental problem continues, and is now criminalized further (reflect on how effective the laws were during Prohibition and currently against drugs in terms of stopping their use and commercialization).

Creates an underground economy (housing, fraudulent documents and I.D., etc.)  and increase the opportunities for illegal immigrants to be exploited and organized crime to get involved.

Creates an atmosphere of distrust, fear, xenophobia which creates violence, prejudice and hate between ethic groups and socioeconomic groups. Turning the average citizen into the police, judge and jury is not recommended.

If the current laws are not enforced, do we need to make more?

4.  Create a temporary permit or permission to allow immigrants to work.  This makes sense if there is a need for immigrant workers in the US economy. It allows them to work, pay taxes, and participate in the infrastructure.

The major problem here is that the US employee does not want to pay taxes, benefits and competitive wages to low wage workers.  This is not because they are bad people, it’s because to be competitive they require the lowest costs possible, and taxes reduce their competitive advantage.

The lawmakers will not be able to determine how many individuals should be allowed in yearly, or for how long.

Paying taxes is not an issue for the illegal immigrant.  Getting a job that pays is an issue.

The enforcement of immigration “after the border” should be focused upon identifying those businesses who hire illegal immigrants and don’t pay the corresponding taxes and benefits.

This is hugely unpopular with politicians, because businesses are filled with voters. It is easier to confront individuals with no rights, no legal protection and no right to vote than it is to confront US citizens with the power to vote you out of office.

Every US agency that deals with the Federal or State economic development has voiced the opinion that immigrant workers are a required and essential part of the US economy and necessary for future economic growth.  Required and essential.

5.  Do nothing   This was the unofficial policy for many years.  Border control was present and legal immigration controlled but illegal immigration control was not enforced 100%.

The general US government view was that supply and demand would control the flow of required illegal immigration.

The economic and political cost vs. benefit of eliminating this necessary source of low cost labor was considered, and the reaction was tolerance and silence.

This is changing rapidly with the upcoming 2008 US elections.  It is an emotional issue and a polarizing issue with US voters, and emotional polarizing issues wind up being central issues during Presidential political campaigns.

The immigration issue is a hot topic in Europe, and new political faces are emerging worldwide trumpeting the issue of “preserving the culture” and “controls on immigration”.

It’s a sign of the global times, we are now able to quickly migrate anywhere.  Our government and society’s abilities to accept new immigrants is being challenged and overloaded.

We need to look at the fundamental causes of immigration, and determine long term global actions that will eliminate the need for people to leave their own countries.

At the same time evaluate current and new immigration policies and laws with a single focus; what is the best for the country, it’s growth, it’s future and it’s current citizens?

Related Links

Illegal Immigration – USA and Mexico 

American Immigration Resources on the Web 

Can’t make a decision 





Mexico and India sign investment protection agreement

24 05 2007

Mexico has signed a 10 year bilateral investment promotion and protection program (BIPA) with India on May 21, 2007.

This is significant for several reasons.

  • Allows investment protection to foreign investors in both countries
  • Free repatriation of funds to investors
  • Allows Indian companies access to the USA and European market through manufacturing in Mexico
  • Offers protection of Intellectual Property (IP)
  • Opens the door for Preferential or Free Trade Agreement negotiations in the future

India’s government and private industry sees Mexico as a “trampoline” to the US market, and also entrance into Mexico and Central America.

I have no doubt we will begin to see some Indian investment in Mexico and India-Mexico joint ventures in the very near future.

I strongly recommend that Mexico review, simplify and speedup the time and reduce the costs related to obtaining a travel visa for Indian business people.

Related Links

India, Mexico sign investment protection agreement

India looks for key to NAFTA in Mexico

India eyes free trade with Mexico for better access to NAFTA





Are you on the right team?

21 05 2007

 When the focus at work is on providing a great product or service to the customer (maximizing) the perceived value of the product is higher for the customer, and they are willing to pay more.

This translates into more profit for the company.

When our focus is on maximizing profit for the company, management tends to rush toward cost cutting and/or reducing product quality (minimizing) many times resulting in reducing perceived product or service value for the customer.

The customers may not buy your product now, resulting in less profit for the company.

It’s all about providing a product or service that will be appreciated, sought out and embraced by the market.

Creating a product or service that is valuable to the market.

The more people want YOUR product, the more money they will pay for it.

It’s about listening to customers, creating new ideas, innovating, and taking calculated risks based on your expertise and understanding of your business.

It’s not easy.  Creating has never been easy.

Success is not guaranteed.  In fact the higher the risk the higher the potential payoff and profits.

But it sure is more exciting and rewarding than cutting pennies off manufacturing, administration, sales and logistics costs.

It takes a different type of leadership, management and employees to make this happen.

What team do you want to work with, lead or manage?

Related Links

The 6 Fundamental Concepts Behind Every Successful Business

Successful Managers Should Be Breaking the Rules

Even governments market