Good Products are Bad for the Economy

Capitalism may be the best system going but there is definitely some problems that are not being addressed by companies nor consumers. In the study of economics we are taught competition is a good thing because the company that utilizes resources the best wins the prize of leading the market or at least staying in business; those who are wasteful will fall by the way side. This concept is great until we consider that resources have to be continually used to make goods that are sold, for a business to survive. This means that it is bad business to create a product that lasts because revenue will be halted once all those who want the product have one. This puts us on an unsustainable path, especially as the population grows. 

We can actually observe this principle in observing Apple. They are creating quality products that many do not feel the need to upgrade. Iphone 5 sales have not been able to live up to the hype as many Apple customers are still happy with Iphone 4, and the company is feeling the crunch. If we had to calculate the cost of selling a product that would last for many years then the price would need to be increased substantially for the company to survive; but Americans do not like to pay those types of costs.

The reach for sustainability will cost our economy dearly because it would reduce consumption, which would reduce supply, which would reduce employment. We are on a fast train to continue consumption so that our economy can continue to grow and sustain us, but at some point we have to face the reality of finite resources. We will truly feel the effects of this as oil continues to rise. Shipping cheap goods from China may soon be an expensive proposition that bares no value. Manufacturing coming back to the US needs to happen now even if the price of consumer goods go up; at least then maybe we could start making good products that are good for the economy. 

The Informal Act of Shopping

Shopping has no personality in most retail operations today. I say this as a guy who does not do a massive amount of shopping, but have worked retail in the past. Personally, I like to be greeted when I walk into a store and I want help without walking the aisles looking for it. Walmart almost gets it right, at least those that still utilize greeters; but good luck finding anyone to help you while your shopping. I understand that one aspect of Walmart's business strategy is to cut labor so they can offer us amazing savings. My feeling going to Walmart is that i'm crowded in, lost, and often acquiring inferior goods. 

I believe we need to go back to the days when the reason for creating a shopping experience was all about the customer. A proper greeting at the door, access to product information and locations, and attention to detail. If i'm gonna spend my, hard to come by, money, I want to be pampered. If not, I will just stay home and shop Amazon or E-Bay. I will get my basics monthly while i'm doing the grocery shopping. 

Okay, I know, I can get great service at a high end store. Well, just because i'm broke does not mean that I should be relegated to inferior service. What would it cost the retail operation to give me superior service? If I had to pay an extra 20-30 cents per product to get a shopping experience i'm worthy of, sign me up. The consumer should know their special and that their dollars count.

No More Junk in the Trunk

*Rhetoric Warning

I bought a pair of Doc Martins Shoes 3 years ago. I have worn them quite a bit and put a lot of wear and tear on them, yet they still look great and are in great shape. I paid $80 for them, happily, because my last pair lasted 5 years and I wore them almost every day. When I was younger, I shopped at Payless Shoes and would have to buy a $20 pair of shoes every 6 months. In time, I found it more economical to buy quality product over a cheaper one. These days I balk at a trip to the dollar store.

The fact is, America has become addicted to inferior goods. We are willing to cut corners to save a buck. Sure we save some money in the short run but in the long run we actually pay more. The savings in buying quality goods goes further than dollars and cents; it also considers that we are burning through the world’s resources and littering the planet with the remains.

Consumerism definitely fuels our economy, but at what cost? Are we selling out our children’s world for our modern convenience? I say it’s time to take responsibility with our dollars; even if we have to challenge the establishment. Yep, here goes; I’m going to put coal in your cereal. We don’t need useless gift exchanges for Christmas, birthdays, anniversaries, and so on. We can still give gifts; but practical, useful, real world gifts without bows, paper, and string. We should by kitchen cookware that lasts, quality towels, avoid particle board products, and stop buying useless junk.

Or

We could say screw the future generations; it’s your problem, you deal with it. Hey, who knows, maybe some magical technology will come along and take all our problems away. We could believe that Republicans and Democrats will solve our problems and that “our party” understands what needs to be done. Whatever we do, the answers won’t be easy. 

Resolution Rethink

It’s that time of the New Year where people begin contemplating on all the things they don’t like about themselves and resolve to make change. The very premise that there is a set date on which these types of goals should be made, flags them as doomed. Reflecting on the previous year and sentimentally regretting all the things that could have been, versus what actually did, transports some of us into a different mindscape where we are artificially motivated to make change. Then the busyness of our lives resumes and we begin to remember why we did not make these changes last year.

Change is much more than just a decision. There is a process in making real changes that we must first put into implementation. First, we have to understand our motivation. If there is nothing to motivate us to change, than the concept quickly dissolves. Next, we have to decide how we will change; generally with some type of baby-step system. Changing all at once can often send us rebounding back to previous behaviors. Another aspect to consider is that few of us can change on our own. We need accountability to truly motivate our change; friends, family, or even a personal trainer can be a great way to supply this need. Lastly, change should take place throughout the year and flexed like a muscle; not just on the New Year.

Don’t get me wrong, there are some super humans out there that simply change at will. For the rest of us mere mortals, it’s a process. There is nothing worse for our psyche than to think we are not strong enough to do something. The reality is, there is nothing we cannot do with some calculated planning, motivation, and support.

Happy New Year’s

Global Financial Crisis Explained

I have been studying how our financial system works for a couple months now. I have taken in a lot of information; some credible, some  not. This video cuts out the rhetoric and just delivers a solid concept. Take a look and share your view.

Buzzing Can Help

Buzzing is not just the sound of bees; it is also a type of group brainstorming. Depending on the culture of your business, it can be an extremely productive exercise that taps into your employee’s creativity. There are few ways as effective as buzzing to eliminate which ideas are groupthink and which stand out. Buzzing works best in large groups but can be modified to fit any type of brainstorming session.

The first thing to do is to break up your group into smaller groups of 4-5 people. Have each group elect a facilitator and a secretary to record all the ideas. Then deliver the content you want them to discuss. Give each group 30-40 minutes to exhaust every idea and then have them, one group at a time, call out their ideas as you write them on a chalk board. Some ideas will be repeated; put a check next to these. You will soon have a plethora of ideas; choose the original ones and discuss as a large group.

You can mix this procedure up and try some different concepts. One idea would be something like speed dating where participants jump around from group to group. There are many ways to implement this process, but the ultimate goal is to stimulate the way your people think, to get original concepts. This type of format could help to alleviate the monotony of daily meetings. I believe that meeting behaviors should be altered every couple of months to keep at bay the monster named mediocrity. 

Implement Innovation

For the majority of my career, in operational management, my focus was always on efficiency. I took great pride in designing systems that would maximize speed and quality, utilize proper labor controls, and deliver amazing customer service. I obsessed over every detail of the operation and this is what a good manager does. But, there comes a time when being a manager is not enough. Efficiency, even to the level of Six Sigma, is not enough.

Efficiency is doomed without innovation. No matter how efficient you are, new technologies, among other factors, will always overtake you. After Steve Jobs left Apple, the company quit innovating and made either useless products or products that were already being made better at other companies. On Jobs return, Apple cut the majority of its product line to concentrate on products that would stand alone against the competition. Innovation, and Steve Jobs, saved Apple from fading into the sunset.

I am a big proponent for balance. My Organizational Behavior professor reinforced my understanding. All innovation leaves nobody to market, produce, and sell the products, while all efficiency leaves no room to grow with the passage of time. A perfect balance must be struck to champion a business above the competition.

As an operational manager I did not have the authority to innovate products. However, I did have the ability to innovate training procedures, hiring methods, promotional aspects, and more. No matter where we are in our lives, we always have the ability to innovate. So when your life seems like the same old thing day after day, think about implementing innovation into your routine.