No. 2 February 2012

You and I probably don't go anywhere without our iPhone and iPad or Blackberry – we’re afraid we might miss something important.  And we’d probably agree that technology can, and probably has, become an addiction.  Even worse, we let technology blur the boundaries between our work and our personal lives.

We hear an email alert or a ding and we just can’t help ourselves. We have to check it.  We stop what we’re doing or stop focusing on listening to someone else, to check the cause of the alert, knowing that the majority of technology alerts we receive are of little importance.  These interruptions and our “always on” mentality really keep us from having a life.  Whoops, sorry, I have to leave for a few minutes to check an email that just arrived; I think it might be really important.  Okay I’m back now.  Sorry for the interruption.  What were we talking about?

“Since 2004, the US lawn and garden market has declined over 33%.  This significant and prolonged market decline is unlike any other this industry has seen in decades.” 

So read two sentences in the “Restructuring Actions” section of Briggs and Stratton’s financial results report released Jan. 26, 2012, for its second fiscal quarter and first six months of fiscal 2012, ending Jan. 1, 2012.  My question to you is “have you noticed this market decline?”  And equally important is my other question “what have you done differently in your business in response to this declining market in your chosen industry?” 

Briggs and Stratton is responding to this declining market by closing two plants - one in Newbern, TN and the other in Ostrava, Czech Republic - and consolidating that production into two other U.S. plants in Murray, KY and Poplar Bluff, MO.  As Todd Teske, chairman, president and CEO of Briggs and Stratton, states in the financial results report, “The actions announced today to consolidate our manufacturing footprint further will better align our production capacity to the markets we serve,,,  It is a very difficult decision to close these production facilities; however, these changes are a necessary step in executing our strategy to grow the profitability of our business and invest our resources in high margin and margin expanding areas.  We will make a dedicated effort to minimize the impact of these closings on our employees and the surrounding communities.”

Here’s my two cents worth how you should respond to this declining market: quit doing what you’ve always done!  Don’t necessarily focus on what you can do better.  Focus instead on what you should quit doing.  Ask yourself the following questions:  “Is  it really necessary to keep doing something?”  Why do you do it this way?   If you didn’t do this at all, would anybody notice?”

In my business, our computer spits our lots of reports, some daily, some weekly, and some monthly.  Guess what?  We discovered that many of these reports are never read by the people who receive them.  We don’t print them anymore or at the very least, not as often.  If you only read the executive summary, then that’s the only thing you should print regularly.  Maybe quarterly executive summaries will suffice instead of a daily or weekly report? 

In 2012, we’re focusing on what we should quit doing.  Maybe you should too?

Husqvarna recently reduced its parts distributors in the US from about eighteen to five.  It’s been a long time since any OPE manufacturer made such a radical distribution change.  No matter how manufacturers rationalize their parts and service distribution channels from time to time, your expectations as a warranty or non-warranty service dealer should never change.  You should always expect and receive high quality and timely parts service from your authorized OEM central distributor or other authorized OEM source.  And most importantly you should always expect to be treated like the valuable customer you are or will become, as long as you fulfill your business obligations with your suppliers.

I’ve previously written about how we are each responsible for our life, and how our ultimate success depends on the choices we make daily.  Taking responsibility for the choices you make and the life you live is an indication of good character.  Here’s a little story I read recently in Harvey Mackay’s Blog about accepting responsibility for the choices you make and the resulting outcomes.

“In ancient Rome, when the scaffolding was removed from a completed Roman arch, the law read that the Roman engineer who built the arch had to stand beneath it.  The point was, if the arch came crashing down, he would experience the responsibility first hand.  As a result, the Roman engineer knew that the quality of his work was crucial and would have a direct personal impact on his life.”

Roman engineers truly took responsibility for the job they did and the choices they made.  Do you?

No. 1 January 2012

I came across the following prayer that should bring a smile to you face. I think I’m going to try it and see if it works!  “Dear God, My prayer for 2012 is for a fat bank account and a thin body.  Please don’t mix these up like you did last year. AMEN!”

In one of the many personal finance blogs I read regularly, I came across an insightful but very depressing summary of what has become of our dream of retirement, and I saved it to share with you. It sums up my feelings very well.

“Remember the way retirement was supposed to work? That model depended in many cases on an employer who paid you a pension and took care of your medical bills in exchange for 30 or more years of loyalty.  That model depended on a system of affordable housing that would increase in value, little by little, year after year. That model depended on a banking and investment system that believed in a fair profit but managed to keep the most greedy and immoral members of its community under check or quickly disposed of. That model depended on a government that worked, compromised as needed, and understood that we are all in this together. To  create a nation of a few haves and a whole bunch of have-nots was in no one’s long-term interest.”

“That model has been either severely damaged, if not shattered. Certainly, there will be an increasingly large percentage of our citizens who have no real expectation of a standard retirement lifestyle. The financial meltdown has destroyed too many nest eggs and shredded too many financial plans. Working as long as possible will be essential, or even desired, by many.”

Welcome to the new “normal.”

I usually don’t comment about product introductions, but this announcement in a recent Reuters article by John D. Stoll caught my eye. A new line of premium Craftsman lawn mowers, retailing between $3,000 and $6,500, will be introduced in January 2012 at the Detroit Auto Show.

Yep, that’s right...the Detroit Auto Show. The hope is that launching the new Craftsman CTX lineup at the Detroit Auto Show will greatly increase visibility for the brand as it aims to move up-market to better take on rivals like Deere & Co., Cub Cadet and Toro Co.

Craftsman spokesperson Kris Malkoski “sees the event as a significant debut of high-end products by a brand that has largely been associated with lower-priced mowers.” The new tractors’ 8-mile-per-hour top speed is at the top of the mower industry, she added. Other features of the CTX lineup include press-button adjustments for blade height and attachments that quickly convert the mower into a hauler, aerator, sweeper or snowplow. The CTX line will be built in New York and Georgia by Briggs & Stratton and sold in Sears’ stores nationwide, starting in February.

OK, let’s review the facts again. The Craftsman CTX lineup will be introduced at the Detroit Auto Show. It will retail at more than double the price of a standard mid-range riding mower. It will have lots of bells and whistles, which apparently includes push-button electronic controls for adjustments. I suspect it will have lots of “wow factor” and attract lots of attention.  It better, at those prices.  But at the end of the day, no matter how many bells and whistles it has, it still just cuts grass. At those price points, it will be interesting to see how well they do in the marketplace.

The next time you get ready to give up and stop working to make your business successful, think about the following story:

A man walking down a narrow, twisting road spotted a guru sitting on the grass in meditation. He approached the guru and asked, “Excuse me, master, is this the road to success?”

The old man nodded silently and pointed in the direction the traveler was headed. The traveler thanked the guru and went on his way.

An hour later, the traveler returned, bleeding, exhausted, and angry. “Why did you tell me that was the road to success?” he asked the guru. “I walked that way, and right away I fell into a ditch so deep it took me almost

an hour to climb out. Why did you tell me to go that way? Was that some kind of joke?”

The guru stared at him. After a long pause, he started to speak.  “That is the road to success.  It lies just beyond the ditch.”

No. 12 December 2011

Don't ever forget the magic of Christmas! 

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T'was The Night Before Christmas by Clement Moore

T’was the night before Christmas, when all through the house
Not a creature was stirring, not even a mouse.
The stockings were hung by the chimney with care,
In hopes that St Nicholas soon would be there.

The children were nestled all snug in their beds,
While visions of sugar-plums danced in their heads.
And mamma in her ‘kerchief, and I in my cap,
Had just settled our brains for a long winter’s nap.

When out on the lawn there arose such a clatter,
I sprang from the bed to see what was the matter.
Away to the window I flew like a flash,
Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow
Gave the lustre of mid-day to objects below.
When, what to my wondering eyes should appear,
But a miniature sleigh, and eight tinny reindeer.

With a little old driver, so lively and quick,
I knew in a moment it must be St Nick.
More rapid than eagles his coursers they came,
And he whistled, and shouted, and called them by name!

"Now Dasher! now, Dancer! now, Prancer and Vixen!
On, Comet! On, Cupid! on, on Donner and Blitzen!
To the top of the porch! to the top of the wall!
Now dash away! Dash away! Dash away all!"

As dry leaves that before the wild hurricane fly,
When they meet with an obstacle, mount to the sky.
So up to the house-top the coursers they flew,
With the sleigh full of Toys, and St Nicholas too.

And then, in a twinkling, I heard on the roof
The prancing and pawing of each little hoof.
As I drew in my head, and was turning around,
Down the chimney St Nicholas came with a bound.

He was dressed all in fur, from his head to his foot,
And his clothes were all tarnished with ashes and soot.
A bundle of Toys he had flung on his back,
And he looked like a peddler, just opening his pack.

His eyes-how they twinkled! his dimples how merry!
His cheeks were like roses, his nose like a cherry!
His droll little mouth was drawn up like a bow,
And the beard of his chin was as white as the snow.

The stump of a pipe he held tight in his teeth,
And the smoke it encircled his head like a wreath.
He had a broad face and a little round belly,
That shook when he laughed, like a bowlful of jelly!

He was chubby and plump, a right jolly old elf,
And I laughed when I saw him, in spite of myself!
A wink of his eye and a twist of his head,
Soon gave me to know I had nothing to dread.

He spoke not a word, but went straight to his work,
And filled all the stockings, then turned with a jerk.
And laying his finger aside of his nose,
And giving a nod, up the chimney he rose!

He sprang to his sleigh, to his team gave a whistle,
And away they all flew like the down of a thistle.
But I heard him exclaim, ‘ere he drove out of sight,
"Happy Christmas to all, and to all a good-night!"