Water Cooler Conversations

Written by Pat Perry
President, ERC 

Well, we all got what we were not wishing for – a down economy, layoffs, and a deep recession.  We can all give ourselves a collective “pat on the back” for once again repeating history right on schedule.  It is ironic that the fear of job, business and financial losses caused many reactionary decisions over the past year that resulted in job, business and financial losses.

A quote attributed to a local business person from last week’s newspaper summed it all up perfectly - “We do not plan on making any new investments until the economy gets better”. 

Hello…?

That is exactly the thinking that helps keep this mess going. When are we going to learn?

So many people are holding on to their money and making cautious decisions, waiting for someone else to get the economy rolling.  Seems like an awful lot of people ran for the hills this past year and they are nowhere to be found today. 

The fear-based behaviors exhibited over the past year remind me of some adults taking a dip at the local pool.  They wade cautiously until they become accustomed to the pool temperature.  They do this knowing full well that they would incur less “pain” by just jumping in – yet we go against our better judgment, and take a too long of a time to enjoy a good swim.

You see where fear got our economy – clearly in the dumpers.  Fear based decisions are not a good tactic and never have been in the history of our country.  Perhaps it is time to try a truly
America strategy – creative, innovative and courage based decisions regardless of economic conditions.

Many “experts” believe we have hit bottom and will recover slowly over the next several years.  They are probably right given human nature. 

We love prosperity but seem to be afraid of doing the things necessary to get and stay there.   Go figure.

Written by Pat Perry
President, ERC 

Over the past week and month I have been struggling putting my arms around a few things…

• If the proposed Medical Mart is such an incredible destination and economic development machine, why is our town the only one considering getting into this business?

• Why do we let three
  County Commissioners who have no real business experience make $900 million dollar decisions like the Medical Mart?

• Agreeing with Dan Gilbert…why would we build anything underground (Medical mart proposal) with views of the lake or river waiting to be had?

• Why did the Plain Dealer have to threaten a lawsuit to have the Medical Mart plan made public?

• Doesn’t it sound like the Consulting firm from Chicago have the better end of the deal on the Medical Mart proposal?  I have this sense that they are laughing their heads off at us in Chicago.

• Will the City of Cleveland ever paint its rusted bridges, clean up the garbage downtown (which rolls around like tumbleweeds) and bring down the old Howard Johnson’s hotel and Aviation High School?

• Does the Hopkins Airport Director ever travel to other airports and see how efficiently they are operated and how clean they are kept?

• Why is there still paid parking downtown Cleveland?

• Why can’t we place a few palm trees around our town during the warm months?

• Why not give land away for free in the City of Cleveland to any business that is willing to bring in at least 100 jobs into the city?

• Why don’t our newspapers understand that the more they scare people with their shock headlines, the more they reinforce the negative, the greater the likelihood of reinforcing negative behaviors like not buying newspaper advertising?

• When will we realize that we are the economy?  When people quit being scared things will get better.

Perhaps I am just plain dumb.  I try to stay informed, read quite a bit and meet with lots of people.  Seems like they have plenty of the same questions.  Just wish I could run into a few people who could provide the answers.

Written by Pat Perry
President, ERC 

Many moons ago, I spent considerable time in
Southern California.  Surfing is very big in that area and I made friends with a few surfers.  They have an interesting perspective on life to say the least.

I vividly remember a conversation one evening with one of the local surfers who had won some regional competitions and was regarded as one of the best athletes in San Diego.  He was imparting his “surfer wisdom” to me, helping me understand what it was like to master the art of catching a big wave.  I asked him if he was ever concerned about sharks, sharp coral reef, etc.  “No, man”, he replied.  He continued, “but I am always concerned about the second wave”. 

“Second Wave”, I asked.

“Yea, if you wipe out, you have to watch out for the next wave.  If you don’t watch what you are doing, that’s the one that can take you down.” he replied.  Then about a minute later, without any provocation, he stared at me and repeated his “sage” advice, “you gotta watch that second wave dude - that’s the one that’ll kill ya.”  An interesting conversation with an interesting guy.

So what does this have to do with anything -  everything actually.

Over the past year, your business has either gotten badly hit with the “first wave” (a tough economy), you are riding it out or just managing to stay afloat.  Regardless, it’s the “second wave” you will need to watch – top employees leaving some organizations in “waves”.  They will leave a number of poorly managed organizations when times get better and the job landscape changes significantly.  These employees are currently watching how their employers respond to the recession. Are their employers’ reactive and making poor decisions relative to the business and their workforce or are they being proactive and making the most out of a challenging situation?

Organizational choices made during the recession have far reaching implications down the road.  The smart organizations are trying to make all the right moves now, recognizing that in the not to distant future they will need their top talent to ride the next economic wave up.  Well run organizations will be positioned to make the most out of an economic upturn and be an attractive workplace for these top performing employees in exodus of poorly managed companies.

I really believe that one day many executives will look back at this period of time with regret – being reactive rather than being proactive and seizing the many opportunities to make the most of a challenging situation.  They are managing in fear, paralyzing themselves and their organizations.

Bold, decisive moves are needed now.  There is no better time.  Time is ticking and this economy will improve…and…when it does, the organizations staffed with top people are going to zoom ahead of their competition. They are getting ready right now. 

Riding the first wave is critical to being able to catch the second one.  My surfer friend would agree and would provide a patented  “nice ride dude” for riding the wave properly.

Surf’s up.

Written by Pat Perry
President, ERC 

Well, here we go…let the final acts of desperation begin.  Between Saturday Night Live, the David Letterman Show and ads on video games I think we are certainly getting a great picture of who should be “king”.  Watching the buffoonery almost makes you see the current occupant at the White House as a leader. Almost.

I believe the Chinese have a proverb “may you live in interesting times”.  Guess what?

Little by little they are wearing us down. From their signs on tree lawns to their unsolicited calls to our homes at the dinner hour - the candidates are in full gear racing towards the goal line…caring only to finish first with little concern about the grace demonstrated during the race.

Each day in the mail we receive a handful of meaningless junk, reflecting negative statements about candidates rather than addressing issues.  This is followed by radio and television ads that are no less damaging to personal character.  These are compounded further by advertising through various technologies with the Internet being used extensively.

On November 5^th, many of us will breath a sigh of relief…it will be over.  And…for most of us, nothing will change in our local, state and federal governments except some of the players.  The people I know are starting to ignore what is going on in government.  They are going to work every day and focused on growing their businesses and jobs while turning a deaf ear to the government noise around them.

The past three weeks I have asked people I have come in contact with how their business is going. Most respond that their business is doing quite well. For many, orders are up, profits are up and some businesses are having banner years. There is a sense that business people are ignoring the media hype and our elected officials. Perhaps this is why many business leaders in our area are not panicking. They are employing good old American work ethic and see the current economic conditions as an opportunity to improve and grow. 

Now…that’s patriotic.

If you listen to the candidates and the pundits you would think we are about to implode. Nothing could be further from the truth. I have great faith in the private sector.  Most of us are geared toward success and we are lucky enough to be in a land that provides unlimited opportunities. If we focus on the basics we will emerge over the next few years as a stronger region. Let’s seize the moment.

Remember…we are the economy.

Written by Pat Perry
President, ERC 

The cry on Wall Street this week was – “Thank goodness it’s Monday”…I am writing this on Tuesday morning, so by the time you read this we may have already lost the 900 points gained on Monday or added another 900.  Who knows these past couple of weeks.

The Market is certainly affected by the emotional swings of investors.  Unfortunately, the “mood” really got ugly a few weeks ago when panic swept the nation due to screams heard coast to coast from Washington.  Seems like our government officials finally found their ability to lead by example…that is with fear.  I have never seen so many Chicken Littles in one place.  What a pathetic group. 

It’s times like these that we should embrace.  This is the land of opportunity.  This is exactly when we need to work harder, work together and suck it up.  Remember – we are the land of the free and HOME of the BRAVE.  This country was founded on individuals banding together under great adversity.  We did it after 9/11 and we can do it again.  Don’t let the cowards hurt your quality of life or your business.

My biggest fear is that people will be afraid.  It’s time to live folks…let’s not wait to be bailed out.  And, if you keep waiting for elected officials to get us out of this mess, then yes indeed the Sky is Falling.

Written by Pat Perry
President, ERC 

This past Saturday a young man stopped at our house to encourage support for a candidate running for the State legislature. The name of the candidate is unimportant as is his party affiliation.  What is important is the conversation that I had with the young man at our doorstep.

The conversation went something like this:

Volunteer:  ”Good afternoon sir.  I am a volunteer who is going door to door encouraging people to consider (name) for State office.”

Pat: “Thank you for stopping by…can I ask you why you are supporting (name)”

Volunteer: “Sure.  He lives in Mentor and he is a really good guy.  I really like what he believes in.”

Pat: “Can I ask you a few questions about your candidate?”

Volunteer: “Sure, fire away”

Pat: “What is his position on the war in Iraq?”

Volunteer: “You know…I don’t know.  That is a good question.  Let me write that one down.”

Pat: “Do you know if your candidate supports the proposed Ohio Healthy Families Act?”

Volunteer: “Gosh…I am embarrassed…I know about the proposal, but I really don’t know where he stands on the issue.”

Pat: “Let’s try one more.

Volunteer: “OK…incidentally, I’m really sorry I don’t know the answers to these other questions…but I will find out”

Pat: “No problem…I was just curious where your candidate stood on some of the bigger issues of the day.  So how about gambling in Ohio…where does your candidate stand on this one”

Volunteer: “I don’t know….I have to tell you that you are the first one on your block to ask me any of these questions.  Most people just listen to me, smile, nod their head, take my flyer and then close the door.  I appreciate you asking me these questions.”

Pat: “Really? Do I win a prize? I’m just kidding.  Please feel free to have (name) call me direct.  I would love to know his position on some of these issues in addition to the Workers’ Comp System in Ohio, the tax structure for individuals and businesses in Ohio and what he plans to do to impact the movement of new companies into our State.

Volunteer: “I will have him give you a call.  Thanks”

The conversation was pretty close to that…what is most disturbing to me was that this young man was representing a candidate that he apparently knew little about. 

In a few months, candidates will be shoving their signs into yards, showing up at Labor Day parades throwing out candy and for higher offices taking advantage of every media opportunity possible.  Many of the candidates will be smiling, kissing babies and doing their best to impugn the reputation of their political opponent.  The mud slinging and name calling will begin with little to be said about the real issues and possible solutions. 

We can point our fingers at some of the politicians who get into trouble, misuse tax money and lie to the public…but remember one thing…the majority voted these folks into office based upon a lot of nothing.  So what do you really expect when they are in office?

Written by Pat Perry
President, ERC 

This past Monday, ERC held the first of several programs dedicated to the proposed Ohio Healthy Families Act that will be placed on the November Ballot.  Attorney Brian Kelly from Frantz Ward, LLP provided an outstanding presentation to a sold out event.  I have never seen so many questions regarding a proposed initiative…and unfortunately the way the proposed Act is written, many of the questions remain unanswered.  If the proposal is passed the details of the new Act would be hammered out by the Department of Commerce (heaven help us!!).

As I listened to the presentation and the questions about the proposed Act, I became pretty angry at our State of Ohio legislators who failed to act on this proposal earlier in the year - if they would have voted this down like they should have; this proposed Act would not be appearing on the ballot.  My guess is that they “chickened” out given the expected backlash of the unions next time our beloved legislators were up for reelection. 

When you look at the amount of government involvement in our businesses these days it is mind-boggling.  The costs of legislated paperwork, red tape and legal fees is astronomical and making business owners think twice about staying in Ohio and in some cases staying in business.  What a shame…

The lack of leadership in government at all levels, the buffoonery occurring in the Presidential election and political posturing keep on going while good businesses start getting hurt big time.  At some point, there is going to be a collective “we’re mad as hell and we aren’t going to take it anymore” for business leaders.  Our politicians better wake up, re-read the State and Federal constitution and get back to the basics of basic governance.

The latest round of stupidity called the Ohio Healthy Families Act is just another strain of a disease called poor leadership that is leaving an awful lot of people sick.

*           *           *

If you are interested in learning more about the proposed Act, register for ERC’s September 23^rd program.  We also encourage you to check out http://www.ohiobusinessvotes.org/mandates08/home.htm

Written by Pat Perry
President, ERC 

Look out Ohio…there appears to be a pretty good chance that the Ohio Health Families Act will be on the November ballot…this is the proposed state of Ohio law that would require businesses with at least 25 employees to earn 7 paid sick days per year.  Add the administrative burden underlying this proposed law and you have another dagger in the back of small and mid size businesses.

There is no doubt that some businesses still need to get on the “bus” relative to providing fair and consistent paid time off benefits for full and part-time employees.  But, this is no reason to punish the rest of the organizations out there who are providing meaningful, fair compensation, benefits and paid time off to their workforce. 

I am afraid that this proposed law is gaining momentum to be on the November Ballot and the “polls” indicate that if it does, there is a pretty good likelihood that it will pass.  This will be a sad day in Ohio.  Small and mid-size businesses are the backbone of our state’s economy.  Those voting “Yes” to the proposed law may think they will be winning the battle but will find out they lost the war and possibly their jobs.  Yep - this will hurt jobs and job creation.

We encourage you to educate your employees as we approach the November election - it is not too soon to start.

This is one Act we can afford to miss.

Written by Pat Perry
President, ERC 

Over the past few years it has become striking to me the incredible amount of duplication of business services, products and web sites in American business.   We have gone from 33 flavors to vanilla in about 10 years.  

Seems like organizations that take the risks and pioneer new ideas, products and services are often copied.  Some might say that copying is the highest form of flattery.   I say poop to that.

Today, organizations that take the easy route and copy others differentiate themselves with marketing versus products/services.

Since when has it become stylish to follow the leaders?  It used to be that some organizations looked for best practices and then spent time, energy and research on going a step beyond the competition.  Apparently in these challenging economic times we have become a risk adverse business community where staying close to innovators is in vogue.

Maybe it’s not the times at all.  Perhaps it is some of my fellow baby-boomers who quit taking chances as they see the dawn of retirement glimmering off in the horizon.  I hope not, for if that is true, these members of my generation are blowing the race before the finish line. 

I see company after company content to “trade” clients with competitors…lose one/gain one appears to be the mantra of the day.  A look back on business success for these organizations will reveal time spent walking in circles.  And, the circle is shrinking thanks to regionalization, globalization and technology.

On the other hand, there are some shining stars out there - caring less about the competition and focusing their energies on their existing customers.  They listen to their clients, go back to the drawing board and then come back with innovative products, services and solutions.  These are the organizations that are rocking and moving their organization and Northeast Ohio forward.

They are the organizations we read about, hear about and where legendary performance is being played out right in front of our eyes.  Instead of copying the great ones, let’s get inspired by them.  They create jobs, new ideas and are making a difference.  Oh yea, they are also making a boat load of cash.

Hats off to the innovators in town - you are truly history in the making.

Written by Pat Perry
President, ERC 

Well “March Madness” is finally over.

It’s a fun time of year, providing diversion during winter’s last weeks of ugly weather. Businesses across our great nation are witness to thousands of office pools with the hundreds to thousands of dollars on the line.  Novices and basketball zealots participate in the traditional office pool that provides an outlet for fun, and good spirited competition.

I heard a recent report on the radio suggest that millions of dollars in productivity are wasted each year because of the NCAA basketball tournament.  Perhaps there is some loss of day to day job productivity but there does seem to be some gain in all of this madness; co-workers talking and laughing together - what a concept! 

There is a bit of a bond between co-workers that gets created during March Madness when an office pool is orchestrated.  That bond can persist and be very positive in their ongoing working relationship.  I’ll take some productivity loss any day, due to filling out brackets, if employees work better together in the long run. 

Let’s face it, when the last game is played and the office pool winners are declared, it’s back to business as usual.  Despite some downtime due to completing brackets and office pool discussions,  March Madness does have many positives.  Like it or not, it has become an insititution in many U.S. businesses and for some employees its absence would be worse than missing a slam dunk.