But we may be even father behind in communications technology, despite private and public efforts. Most people’s eyes glaze over when you mention ” broadband”.

Here’s a good article that presents a different meme, “soft infrastructure”. While it will never overcome the focus on Dancing with the Stars, maybe this can better capture our group consciousness and attention, so we can really do something about it.

http://archpaper.com/e-board_rev.asp?News_ID=4404

strategic planning: innovation: management:success

SOME DO’S AND DONT’S OF THE PROCESS

You’re finally going to do it. You are a born again believer in the benefits of business and strategic planning. To prepare you for the plunge here’s some rules of the road to guide you through the process.

The planning process can be exhilarating, frustrating, enlightening, demanding and a host of other descriptive adjectives. Hopefully you’ll find a nugget or two in these do’s and don’ts that will keep the emphasis on the positives of your unique organizational growth experience. Carpe Diem!

“Plans are nothing; planning is everything.“-Dwight D. Eisenhower

SOME PLANNING DO’S:

• It’s the process that counts! Think verb rather than noun. Bringing your team together, fostering interaction, and forming a climate of mutual interdependence and commitment is the real achievement. The final document is not as important as the process that gets you there.
• Do trust your instincts. You have lived and breathed what your company is all about. Your plan has to feel right in your gut. Contemplative logic and passionate emotion are good tools. Use them both.
• Keep the emphasis on communication. Your planning is the linkage between your future, the team that will take you there and the other stakeholders in your enterprise. It’s the glue that binds it all together and drives performance. Communication is the oxygen for your organization’s future.
• Focus on EXECUTION. Remember, results are what count. The best plan in the world is worthless if it can’t be executed. Unfortunately, they don’t give Pulitzer Prizes for business plans. An executable plan on a napkin is a preferable alternative to an elaborate document that gathers dust.
• Keep it flexible, adaptive and evolving. As Yogi Berra said, “the future ain’t what it used to be”. Your planning should be an ongoing living process that can adapt and change as competitive, technological and social conditions evolve. Keep it dynamic not static.
• Stretch. Challenge your organization to extraordinary achievement. Your plan should inspire, motivate and paint a compelling vision for performance. It should keep everyone’s juices flowing.
• Expect unintended consequences. There’s an old English Proverb that states “every path has its puddle”. Regardless of your collective wisdom, there will be unforeseen ramifications, pro and con. Acknowledge this as part of the planning process.
• Enjoy the process. What a wonderful opportunity to bring together the people you admire to form a compelling future together. Getting a lot done and having a lot of fun. Go for it.

SOME PLANNING DONT’S:

• Don’t delegate responsibility (embrace it). This is one management project you can’t delegate away. As CEO, you have to embrace and champion the process. Leadership goes with the position. Rise to the occasion.
• Don’t get caught in the terminology trap. Planning terminology (vision, mission, strategy, tactics, performance metrics, etc.) can murk things up. It should help your team communicate not hinder them. The challenge is to keep the process understandable to all. It’s not important what you call it as long as it drives team performance.
• Don’t get overwhelmed. Keep it simple. If it seems to complex, then back off. Try to rephrase and simplify the process. A plan doesn’t have to read like “War and Peace” to be effective.
• Don’t look for the perfect plan. Perfection is for the next life. As Patton’s’ law expresses it, “a good plan today is better than a perfect plan tomorrow”.
• Don’t deny the facts. Reality can be harsh, but the sooner you accept it, the sooner it can be addressed. There is a fine line between rationalizing failure and denial of reality. The challenge is to know the difference.
• Don’t get trapped by your plan. The purpose of the plan is guide and drive performance. If it becomes unrealistic don’t continue to follow a bad road map. Change it.
• Don’t do it if you’re not going to use it. Be committed to the process. Your passion must be overwhelming if it’s to be effective. You have the opportunity to develop a culture of performance. Don’t go through the motions if it won’t make a difference.

“It wasn’t raining when Noah built the ark.”  Howard Ruff

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. It’s simplicity in action. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

strategic planning: innovation: management:success

HOW TO EVALUATE WHAT YOU NEED

We all need good information to monitor and manage our organizations. We need timely, efficient and effective management information to drive the decision-making process. To meet these needs, managers should be aware of the available criteria for a proper evaluation.

“You can not feed the hungry on statistics.“-Wilfred Laurier

The following 14 evaluative criteria are offered as a frame of reference for the planning, developing and monitoring of organizational information needs.

It is important to note that proper use of the criteria will involve the assessment of qualitative as well as quantifiable attributes and will require dealing in the unfamiliar and uncomfortable qualitative arena. Also, since the criteria will not generally carry equal weight, management will need an adequate grasp of the critical criteria of its own organization. Use of the evaluative criteria should, however, provide a framework for “relative ranking” of competing data requests and thus allow for a rational allocation of available organizational resources. The evaluation job will still be difficult, but a systematic approach should increase the likelihood that all the “bases” will be covered.

WHAT CRITERIA  TO LOOK FOR: 14 TO BENCHMARK AGAINST

• Feasibility – Can the desired information actually be derived, and if so, presented in a meaningful fashion in light of user and data developer lead time constraints?

• Necessity – How necessary is the desired information in assisting the management decision process towards organizational goals and objectives? Is the information fundamental or merely interesting?

• Usefullness – Is the information truly useful in terms of assisting the management decision process towards organizational goals and objectives?

• Cost Justifiability – Are the anticipated or actual benefits from the information development greater than the costs to derive such data? What about alternative opportunity costs?

• End User Oriented – Is the information conducive to the needs of the end user? Do personnel turnover and varied used backgrounds (different strokes for different folks) present additional constraints?

• Distribution Adequacy – Does the information circulate to the appropriate decision-maker? (Excessive distribution can produce as many hazards as insufficient or misdirected distribution).

• Desired Frequency – Is the frequency of data preparation the most appropriate under the circumstances or would greater or lesser reporting intervals be more fitting?

• Adequate Precision– Does the level of data preciseness conform to the usage requirements (neither too detailed nor too sketchy) of the information user?

• Adequate Format – Is the reporting format (method and mode of presentation) conducive to the needs of the information user or is the information produced in a canned or standardized fashion?

• Reliability – Is the derived information reliable (credibility quotient) for its intended use?

• Sensitivity – Is the sensitivity of derived data such that decisions will be dramatically affected by changes in circumstances? (Is the range of data confidence sufficient?)

• Efficiency – Is the data accumulated, processed, and used in an efficient fashion? (What are the potential improvements to the data development process?)

• Effectiveness– How effective is the generated data in achieving the desired informational requirements? (Was it worth the effort?)

• Suitability– Is the information generated suitable or of continuing significance to the changing requirements of the organization?

PITFALLS TO AVOID:

Management should also be aware of some common pitfalls involved in the management information process and do its best to avoid or circumvent their occurrence.

• Unnecessary Data – Avoid an organizational climate that proliferates and perpetuates unneeded management reports.

• Duplication of Effort – Attempt to minimize data duplication through more centralized data report preparation but remember a certain amount of duplication may be necessary to produce effective reports for varying management needs.

• Overdetailed Data – Don’t overwhelm the data user with reams of information. Keep it simple and conducive to the real needs of the user. It is important to determine the crucial information required and the “ability” of the user to digest and utilize the information. Remember, a perfect report that the user can’t understand or is afraid to use, is of little benefit.

• Untimely Data – Remember, the decision-maker needs the information before he makes the decision. A timely report containing only highlight data is a welcome alternative to a “stale” but extensively detailed report received after the decision has been made.

• Format Deficiencies – Avoid the tendency to dictate the report format. Communicate with the end user to know the what, when and how of his data needs. Slight format modifications can sometimes achieve remarkable results.

“Get your facts first, then you can distort them as you please.”  Mark Twain

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. It’s simplicity in action. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

strategic planning: innovation: management:success

TRACKING ORGANIZATIONAL PERFORMANCE

Does your score keeping track useful metrics? Or does it produce data that no one really uses? Finding the right metrics is not always an easy task. A good place to start is to challenge what you are currently producing. Who gets it? Do they use it? Is it what they need?

Times do change! What might have been helpful in 1975 might no longer does the trick. Let me share with you a story about a new plant manager we’ll call Tom who was assigned to turn around a troubled manufacturing facility several decades ago.

“We are glutted with data and yet there is a shortage of wisdom”- Michael Toms

DATA FOR THE SAKE OF DATA BENEFITS NO ONE

Tom was hard at work. He’d spent his first week trying to get an overview of the plant operations and the challenges he was facing. He met with his team, he smoothed relations with the union, and contacted and reassured key customers. He noted every morning he found a six inch high stack of computer printouts in the upper left hand corner of his desk. But he had been to busy to look at them, so they became a three-foot stack in the corner of his office. Tom was working late when Bob, one of his key direct reports, stopped by. As they chatted, Tom asked Bob about the daily stack of printouts. Bob revealed he received the same stack each day, as did the top dozen managers in the facility. Bob, also confessed, he seldom looked at them and did not use them to manage his activities.

Tom and Bob then took a walk down the hall to the EDP department. The staff was gone for the evening, but the “daily report” was printing away on an old dot-matrix high impact printer. The report was being burst into the individual stacks that would be delivered to desktops early in the morning. Tom walked over to the printer and stopped it. He took his trusty Cleveland Indian ball point pen and wrote as hard as he could, so it would penetrate all the copies. “I’ll pay $1,000 to anyone who reads this!”, and then, he signed his name. How many checks do you think Tom wrote out the next day? Zip, zero, nada! The old physics law of inertia (a body at rest tends to remain and rest, and a body in motion tends to remain in motion) had permeated the plant over the years. Reports that no one needed, no one understood, and no one used, had taken on a life of their own.

We are creatures of habit and it’s easy for complacency to set in. When was the last time you took a cold hard look at your existing information systems and the output they generate? You might be in for a nasty surprise. To stop doing the unnecessary is a big first step towards an improved information system.

“When you are drowning in numbers you need a system to separate the wheat from the chaff.” – Anthony Adams

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

enlightened orgs: inspiration

ALBERTA’S WINDIEST CITY

That seemingly constant, gusting wind I cursed when I lived in Grande Prairie, Alberta, had a different look and feel for Drennen and Jamie Hallett. It was the whiff of opportunity.

The Hallett’s, owners of Golden Sheep Power, officially opened their doors for business in Grande Prairie on February 1, 2009. They will be the first company in Alberta to offer home-owners a chance to get off the grid by using home-based wind turbines and solar panels.

A NEW WIND IS BLOWING

Their timing could not be better. The provincial government just passed regulations to allow for micro-generation in Alberta. And the City of Grande Prairie, a city that has seen explosive growth in the past 5 years due to oil and gas exploration, has shown its openness to explore other sources of energy by allowing the Halletts to set up a pilot project to demonstrate and test the home-based units.

WHAT HAPPENS IF THE PILOT IS SUCCESSFUL?

The main concern with wind turbines is noise, or the perception of noise.

The City of Grande Prairie have agreed to test a home-based unit and, if it is not too noisy, the City will change its bylaws to allow individual home-owners a choice for energy production – stay on the grid, or employ a home-based wind or solar unit to fully meet or supplement your requirements.

The pilot turbine is being erected in the centre of the city at the Fire Hall. It will not be set up to generate energy, but to gauge public reaction. The Hallet’s say the noise level of 15 to 30 decibels when it is running at its peak is equivalent to a whisper. Following the six month pilot, a survey will be conducted to get public reaction.

AN ALBERTA FIRST

If all goes well, that would make Grande Prairie the first city in Alberta to change its bylaws to allow for home-based generation. Only the tiny southern Alberta town of Cardston currently has bylaws to allow for wind turbines for residential use.

The Halletts have previous experience with micro-generation in Ontario where it has been approved by government for a few years. They believe homeowners will recover their installation costs (between $11,000 – $30,000.00 CDN) within 3-5 years. Most households, they say, will be able to produce enough energy for their needs. If a household uses more energy, they will just draw the additional from the grid.

The purpose of the Monday Enlightened Orgs Best Practices post is to draw attention to companies that are doing the right things – and doing them well. They become listed in our directory as Enlightened Orgs.

Today we recognize, not only Golden Sheep Power for taking the initiative and risk to become the first company in Alberta to offer residential micro-generation options, but we also take our hats off to the Mayor and Council of the City of Grande Prairie for their willingness to be…the FIRST!

We will keep you posted on the outcomes of this pilot project.

BLESS BLESS
JUDY BERG
If you know a company that is making a MindShift towards serving humanity while still turning a profit, we would like to know about them. Let us know by contacting::
attractingsuccess@soulabundant.com... or leave the information in the comments section of this post.

Organizational Behaviour Consultant
author: Imagine Your Soul Abundant: Attracting Success, Fulfillment and True Happiness
more about: www.CorporateMindShift.com www.soulabundant.com
Judy’s book can be ordered from her website www.soulabundant.com.  Special prices for bulk orders upon request. Seminars and retreats customized to the needs of your group or organization.

strategic planning: innovation: management:success

WHAT ARE THE PEBBLES IN YOUR ORGANIZATIONAL SHOES?

Every organization has some disconnects in their business model or operations. Acknowledging that fact is a healthy first step. Some are obvious while many lurk undetected due to complacency, cultural blinders or simply bad habits.

Some are internal inconsistencies which in theory are easier to fix while some are due to external factors which might be beyond the control of the impacted organization.

If you have the courage to look there are some steps your can employ to improve the situation.

Our team is well balanced. We have problems everywhere. – Tommy Prothro

SOME  EXAMPLES OF DISCONNECTS

An NFL Team with a stated emphasis on the passing game while not having any wide receivers that are able or willing to catch a ball in heavy traffic and to take a hard hit for the team.

For some organizations the disconnect is so obvious that it becomes a recognized oxymoron such as Internal Revenue Service, government intelligence, or congressional deliberation.

At church on Sunday the pastor reminds you that all men are created equal and that charity, love and compassion should rule relationships. Then on  Monday you go to work and seek ways to destroy the competition.

FIVE TIPS TO REDUCE & CONTROL YOUR DISCONNECTS

1) Have a process to identify the disconnects. Have an internal process to serve as a early detection system to look for those issues, policies and procedures that do not appear in harmony. Sometimes it’s like the old Pogo observation, “we have met the enemy and he is us.” The sooner you recognize the disconnect and address it the better.

2) Encourage the reporting of disconnects. Encourage employee reporting of disconnects. The ones on the front lines with the customers are often well aware of the problems. There is a fine line between enabling employee grumblings or complaints and giving serious deliberation to issues impacting the performance of the organization. Reward and recognize employees who make a serious contribution.

3) Make sure your plans are aligned to avoid disconnects. Review the overall organizational business plan and the individual plans (I hope you have these) to make sure they are aligned and in harmony with each other. Make sure your strategies and your tactics are logically connected. The larger and more diverse your organization the bigger will be your challenge.

4) Review objectives with your strengths and weaknesses. Review stated organizational objectives with available organizational strengths and weaknesses. A mismatch here shows there is work to be done. You might need an action plan to mitigate an existing weakness or enhance an existing strength to improve your chances for success.

5) Monitor your communications. Make sure your communications are consistent and that they are not in conflict with stated goals and objectives. Your team members, customers and advisers should hear a focused and consistent message.

Disconnects are like little pebbles in your shoes. They cry out for attention but too often we choose to alter our walking style to let them remain with us. Try to embed a healthy “seek and destroy” process in your operation. You’ll feel better and your organizational gait might turn into a gallop. Hi Ho Silver!

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

strategic planning: innovation: management:success

AN ADVISORY BOARD

King Arthur had his Knights of the Round Table. Shouldn’t you have a similar team of sage advisors? Keep in mind that even Tiger Woods has a coach.

Most business owners have an aversion towards a formal board of directors and in today’s litigious society, formal board members are harder to entice. But there is an attractive alternative. It’s called an Advisory Board. The informality and flexibility give it it’s power. Here are some suggestions to consider in the formation and continuance of such a group.

Teamwork is essential. It allows you to blame someone else. – Finagle’s Eighth Rule

EIGHT TIPS FOR YOUR TEAM OF ADVISORS

1) Expand your network. You can expand your organizational reach by leveraging the talent and connections of a diverse group of advisory board members.

2) Choose with care. Choose with care. As you assemble the advisory team, focus on the areas you need to bolster expertise. Do you need technical experts for legal, accounting, engineering, banking, marketing or other important advice? Do you want key customers, prospects, industry experts, community leaders, or collegiate experts on your team? Should you engage a facilitator for the sessions?

3) It’s usually economical. Many candidates are flattered to serve and can be enticed with a warm invitation for assistance. You should be prepared to cover meeting expenses and a modest stipend can go a long way towards fostering a motivated participant.

4) Launch wisely. Think through the role you wish for your advisory team. Clarify their role as well as yours at the inception of the process. It sets the proper tone and increases the likelihood of a productive and pleasant relationship.

5) Maintain control. The group is advisory in nature and has no formal power. You maintain control but get the benefit of valuable expertise and an external perspective.

6) Share what you like. You can determine what you share with the group. You can focus on areas where you need advice and you are not forced to disclose information you’d rather keep private. If however, you want a group to hold you more accountable for organizational performance, that can be a powerful role for the group to play.

7) Meet when you like. You control the frequency, format, duration, and content of the sessions. You might want sessions on a regular schedule or you may only want to convene the advisory team in times of crisis or major organizational opportunity. Today’s technology gives you the ability to convene powerful electronic meetings when a face-to-face session is impractical.

8) Pick and choose. You can use the advisors as an entire team or you can just call a specific member when you need his or her advice. It’s your call.

Managing an organization in today’s complex and dynamic environment can be extremely challenging. But you don’t have to go at it alone. Consider expanding the reach of your organization with a valuable and seasoned team of advisors. You can learn a lot in the process, develop rich personal relationships, and dramatically increase your prospects for organizational success.

“Many receive advice, few profit from it.” -Publilius Syrus (1st century B.C.)

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

strategic planning: innovation: management:success

ARE YOU READY FOR A HABIT AUDIT?

We all have habits. Some good and some not so good. It’s the same for our organizations. Some foster organizational progress and some detract from it. Are the ingrained habits at your organization working to benefit the company or are they aiding and abetting the competition?

Old habits die hard. That’s why they are called habits. But when habits prevent fresh thinking, become out of date routine patterns, or become mindless repetition, habits can become disruptive.

THE SIX QUESTIONS FOR A HABIT AUDIT?

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” -Aristotle

It’s a good idea to occasionally review the habits that become part of every organization. The six inquiries for such a Habit Audit are:

1) What are your organizational habits? Do you know what they are? Can you compile a list of them? Are there any “unspoken habits” that are not generally acknowledged?

2) Is the habit supportive of your culture, vision, mission, strategies or objectives? Or does it detract in some fundamental way?

3) What drove the formation of the initial habit? Does it continue to make sense?

4) Does the habit give you a competitive advantage or does it put you at a serious disadvantage? Times change and sometimes our habits need to adjust. Dynamic organizations are always evolving.

5) What behaviors are driven by the habit? Do they move your organization in the desired direction?

6) Are the benefits of the habit greater than the cost? What resources does the habit consume and does it contribute to organizational growth?

Is your organization habitual in the things that matter? Be sure to acknowledge and evaluate the habits that permeate your organization. It’s a healthy check-up process and “a good habit” to boot.

A PRODUCT COSTING HABIT EXAMPLE

A specialty manufacturer asked me to evaluate a product cost model it had been using for 40 years. At one time, the model’s concepts were cutting edge, but they had grown obsolete as manufacturing changed over the years.

The company had evolved from a labor-intensive to a capital-intensive operation, and this had major implications for the underlying allocation assumptions in the old model. However, despite convincing information about the model’s shortcomings, the management team held on to it. Their emotional attachment to a piece of company history was more powerful than the facts – a problem that could undermine the company’s productivity and bottom line. The habit of the “old model” became a threat to the future of the company.

“Motivation is what gets you started. Habit is what keeps you going.” – Jim Rohn

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a big proponent of The One Page Plan approach to managing the day to day performance of an organization. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com/

management: internal communications

KEEP THE DISCOURSE CIVIL AND PRODUCTIVE

Polarization, whether intentional or unintentional, can acerbate a situation and make a healthy and productive dialogue difficult. Once people feel insulted, they do not make very good listeners. As we are well aware, these are chaotic times. Opinions differ and passions can run extremely deep.

So, how do you get from tension to solution?

DEFINE HOW YOU TALK

Successful organizations need to have frank and serious discussions. It’s important to have a robust and healthy debating process that resolves issues and enables the entity to move forward.

FOLLOW THE FIVE STEPS

1. Balance logic and emotion. Evaluate with both your brain and your heart. Take the time to diligently review the logical pros and cons, and then, seek the guidance of your gut feelings and emotional response. Contemplative logic and passionate emotion are both good tools. Use them both.

“Truly successful decision-making relies on a balance between deliberate and instinctive thinking.” – Malcolm Gladwell

2. Be aware of your bias. We generally are drawn (in some cases pushed) to one side of the equation. Take the time to consider your natural predisposition and be prepared to challenge it.

3. Do not demonize either side. Integrity, objectivity and a search for truth are ideals for inspirational leaders. Reasonable people can disagree on the issues. Assume the integrity behind each option and opinion as a reflective viewpoint of what is inherently best for the organization. Virtue is not the sovereignty of either side of the debate.

4. There will be unintended consequences. Regardless of the collective decision, there will be unforeseen ramifications, pro and con. Acknowledge this is a part of the decision process and the imperfect world in which we live.

5. Unite behind the decision. Be prepared to move forward together as a team. The ability to productively debate serious issues is a vital part of organizational growth and development.

The challenge is to harness the creative power of varied perspectives while preserving organizational focus and alignment with a motivated and unified team.

I submit the framework is even more vital for us as world citizens striving to improve the condition and potentiality of mankind.

A BRANDING EXAMPLE

At the turn of the decade, it was my honor to serve on the Governing Council of the American Institute of Certified Public Accountants. Towards the end of my three year term, the membership was being asked to vote on whether to approve the expansion of the CPA brand by adding a more comprehensive certification credential. Feelings ran deep on both sides of the issue. I was surprised to see how passionate beliefs began to fuel some unproductive discourse within the membership. At the time I wrote an e-mail to the AICPA Chair Kathy Eddy, suggesting some ground rules for the debate. Kathy, who is one of the most talented and caring people it has been my privilege to meet, articulated the above decision framework to CPAs across the country to remind them of the importance of reaching a decision in a responsible fashion that respects the organization and its participants.

Remember the formula: DEBATE – DECIDE – REALIGN – UNITE – ACT!

Greg Pashke , CMC is  President of Pashke Consulting and provides business mentoring, strategic and tactical planning, and financial modeling services. Greg is a frequent contributor to managerial and financial publications. He is committed to continuous learning and skill development. Greg’s mantra is “to get a lot done & have a lot of fun”.
Website: http://www.pashkeconsulting.com

Gated real estate development 3 miles from Ibarra Ecuador: 1,130 sq. ft. 3 bedrooms, 2 1/2 bathrooms on a 1,200 sq.ft. lot – $49,760 – Gary Scott

WHERE ARE YOUR BUSINESS OPPORTUNITIES?

More and more of our clients are looking outside the box for near and mid-term opportunities. For many, that is to the south.

The real and massive changes now beginning to occur in the global economy have always intrigued us, and now are critical, but we rarely find the answers we look for in mass media sources.

Reading the Wall Street Journal, Investor’s Business Daily, or Financial Times may have made for a pleasant cup of coffee until this September. Now investors and business managers look for one bright ray amidst the daily articles at any of these excellent, staid publications.

We look to these and other sources to understand yesterday’s global finance and corporate news. But we leave investment news, projections and advice to others more competent. Our focus is marketing, research, planning and technology.

So today’s discussion touches on where some businesses are finding opportunities, along with a ferw marketing communications observations that you can apply today. Here are a few of many clues to follow.

ARCHITECTS SEE STRONG DEMAND SOUTH OF THE BORDER

Clue #1: Architectural Record today has a brief article titled Architects Head South to Weather the Economic Storm. In brief, while most of the world experiences recession and stagflation fears, U.S. architects are finding considerable work in Central and South America. Ecuador [Wikipedia] [map] and other countries have experienced multiple economic downturns, and have a perception that they will ride this one out. These countries have also experienced significant growth recently.

Our perspective: More and more in the coming 6 to 24 months, entrepreneurs and corporations in various industries will look for revenue and growth opportunities to offset losses in the U.S. and elsewhere. Parts of Central and South America remain vibrant and not fear-driven. Construction in Mexico, Ecuador, and other countries will offer opportunity to businesses driven by owners with personal interest in those areas.

DEVELOPER INTEREST IN BELIZE

Clue #2: For the past few years, Curt Brooks, owner and CEO of Mirage Advertising, a design, video and interactive company in Monroeville, PA, has worked with partners to develop real estate in Belize [Wikipedia] [map]. They continue to see much opportunity in the country.

DEVELOPER INTEREST IN MEXICO

Clue #3: A developer client who has invested in and managed large commercial and residential construction projects throughout the United States and elsewhere is now acquiring land and building homes in Mexico. He believes the opportunities are much stronger in regions of Mexico than in the U.S. for the coming few years.

If you haven’t decided yet to learn Spanish to communicate with the rising Spanish speaking population in North America, consider doing so to do business in South and Central America.

GARY SCOTT’S ECUADOR

Clue #4: One of the highlights of my day is reading global investing advisor Gary Scott’s free eLetter. Here’s why.

Gary and his wife shuttle between their rural North Carolina farm and their Ecuador hotel and properties. They have built multiple businesses around their lifestyle, professional experience and passions.

They follow the weather in their seasonal travels between two beautiful locations. In addition to providing multinational currency and financial trading observations, they offer in-depth paid eLetter subscriptions, seminars at both locations, Ecuador real estate advice and seminars, Spanish language classes, and more.

Gary openly shares his approach and income from their online businesses, discusses their personal and business ethics, and integrates their mutual interests into business opportunities. He supports export of products made by Ecuadorian people and flowers, and builds a comfortable bridge for Americans looking for waterfront condos at amazing prices of $45,000 to $90,000.

His description of his daily eLetter is indicative of his business practices – “Stimulating ideas and useful resources to help you live a healthier, more affluent and fulfilling life.” Browse his site. It’s always fun to read, because of his knowledge, openness and passion.

Sometimes simple is better. Instead of fancy newsletters, Gary’s daily missives are simple, one sentence text with a link to the daily article, such as “Learn about Cotacachi health at http://www.garyascott.com/2008/11/12/2929.html. Gary”

IS LATIN AMERICA A BED OF ROSES?

Clue #5: Of course not. No rose patch comes without thorns, and no country or region is idyllic at present. If you don’t bring your own assets with you, credit availability can be a challenge. For example, the Financial Times yesterday published an article titled, Economists warn on LatAm credit squeeze.

“Huge volumes of US Treasury bonds issued as part of an effort to reverse an economic slump threaten to stop access to credit by Latin American governments facing financing needs of an estimated $250bn next year, a group of prominent economists from the region has warned.

“The risk that Latin American and other emerging market borrowers may be “crowded out” from credit markets by a US fiscal deficit that could exceed $1,000bn next year has not been much emphasised in the scramble to save the US economy. But the economists said “powerful and innovative” new mechanisms were required to deal with the threat in order to direct money back into the region.”

Of course, despite the massive financial industry bailout we are now saddled with, businesses small and large in the U.S. are seeing the same liquidity challenge. And those small businesses who have relied on credit cards for some of their non-traditional financing are in for a major squeeze of their own. Our suspicions on this were collaborated on December 1 with the Reuters article, Credit-card industry may cut $2 trillion lines: analyst.

“The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said. The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted. ‘In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent.’”

The loss of credit card liquidity would be a shock to the economy comparable to the housing bust. I hope that someone with responsibility has a plan in place to prevent or offset this. But our charge is to act with personal and corporate responsibly, not to expect a magic bailout.

While the U.S. dollar has lost relative value against most currencies, there remain some places where you can obtain wonderful value. If you have the opportunity for flexible travel in the coming months, consider Costa Rica, Ecuador, Mexico, or Belize. Or maybe Venezuela, where tango aficionado friends of ours travel yearly and enjoy beautiful dinners for $5.

Always explore business opportunities wherever you go. Be respectful to the folks who live there and make new friends. Depending on your business, investigate the opportunities for agriculture, development, export, import or services. They are everywhere.

ARE YOU EXPLORING TO THE SOUTH? LET US KNOW WHAT YOU FIND.