October 24, 2007

Self Insuring Your Home or Neighborhood

Tonight I get to unpack the car and put the important papers back in my unit. The wind has died down and I am far enough away to be safe from my local Orange County CA fire. My apartment would have likely survived because of location and construction. We do not back up to a canyon nor have woods surrounding us. But the closeness of the disaster and my cousin evacuating in San Diego has me thinking about protecting your home or business. In the western US, we have fires every year ore so.

Your home or business is a big investment. Firemen can get overwhelmed during a big fire. They can’t be everywhere. You don’t want to be one of those heroic people trying to save their property against a 50 foot wall of flames with a garden. Your life is not worth the risk. Evacuate when you are told to!

It would be great buy the right house or pick the right business building. Get a fire proof roof if possible. Tile and metal roofs are best choices. If you have a shake roof, replace it! You can get modern tiles that look like a shake roof.

You want the walls to be Stucco, Cement or Brick. These materials will resist burning best, and should be good long term investments.

View homes have wonderful appeal, and living trees are great shade for summer comfort. I want a home like this too, but fires love to climb hills and travel through treetops. Location will affect your risk.

Most homes burn from the fire getting into the attic. The fire licks the side of the house, and the embers find their way through the vents or eves. Make sure you clear brush, woodpiles, and other fuel away from the house. At least 30 to 100 feet are recommended.

Some experts recommend sealing under the overhangs. I am not sure how to let air circulate and block the embers, but this is worth investigating. Would love to hear from someone how.

Have or install a sprinkler system. Make sure the attic is covered. Water will keep the fire from expanding although I would expect some water damage.

Above is wonderful advice if you are choosing a place, but what if you already own property? So what else can you do? Invest in a fireproof foam system. The fire is nearby and you have to start packing your important papers. Close the windows and doors. Park the car in the driveway with the engine running, get out your hose and ladder and start spraying under the eves, over the walls and windows. Spray trees too close to the house, the tank on the barbecue, and any car or truck to be left behind. Leave the sprayer tool soaking in a bucket of water. Then leave as soon as you can or you are told to.

The firemen will not have to risk their lives to save you home. If the fire comes too fast, your place is still safe.

Find out more by going to the following websites:

Barricade Gel www.barricadegel.com
No Char www.nochar.com
Thermo Gel www.thermogel.com

There is some downside to these products. Your outside walls will probably discolor and the foams can remove oxidized paint. So you may wind up repainting. If the fire isn’t right there, you have to water them to keep them moist and effective. The foams are very slippery, so you have a good chance to fall while applying the foam.

Kits start around $300 and neighborhood associations can protect ten to twelve houses for $2,000 to $3,000. The chemical does age and have to be replaced.

Note: I have no financial interest, nor am receiving no reimbursement for writing this. Just want you to be aware foams are available. I heard about Barricade Gel in Florida a few years ago when visiting family in the Daytona Beach area.

Consider investing in foam to insure yourself. Who wants to lose all those memories inside?

October 16, 2007

Real Strategy Versus Planning

Too many companies do their year end planning and call it strategy. Often the discussion at these meeting is simply how to incrementally improve the business. Everyone predicts they will sell slightly more product this year. It is a good business practice to have long term resource plans, but that is not strategic business development.

Real strategy is focusing your business. Strategy is finding potential opportunities, and enabling your resources to produce and sell new products, and services to grow.

Continuing operations have to be profitable and products updated. Equally important is to discontinue or outsource products and services no longer key to your success. The important idea is to concentrate your resources where the profits are. Work less and make more.

The best opportunities are market disrupters. All innovation flows from the unexpected combination of two or more things. You need to spot and exploited a change whose time has come. Not necessarily being the first mover, but be the first to get it right.

Steve Jobs says, “I am going to wait for the next big thing." Then he develops a position to take advantage of the opportunity. Look at the iPod. Lots of people in and out of the industry knew about music downloading, and people knew that MP3 players were coming along. The music companies and the music retailers had asset positions that were being threatened, and didn’t want to act. It was not a fantastic leap of imagination into the far future. He found a set of ideas that needed to be quickly and decisively acted upon.

A value denial is a business opportunity. Every change and innovation creates new value denials. These are products or services that are both desired and feasible but are not being supplied to the market.

What makes a business unit healthy? Operating efficiently and having a good strategy. A good strategy, in turn, is one that is responsive to change and that builds, builds upon, and stretches the resources that yield competitive advantage. Be focused on going after changes.

How do you actually plan strategy? For that, you need a small group of smart people. Strategic insight is essentially the solution to a puzzle. Puzzles are solved by individuals or tight-knit teams. With big groups and complex processes you can select the better solution to the puzzle, and you can get consensus and buy-in and even commitment. But that comes later.

Start with a SWOT analysis. It is time to look at your strengths, weaknesses, opportunities and threats. Basically as a group evaluate your business internally and externally. Where do you have advantages, and where do you have to improve? What opportunities are there and what weaknesses do you have?

Write three coherent paragraphs about what is changing in your industry and why. Having to link your thoughts, giving reasons and qualifications, makes you a more careful thinker and a better communicator. No bullet points.

Other questions to ask include: Where are the profits too low? Are the margins low? Can we increase margin with a new design? Can we partner with a competitor? Does someone else do it better? Can we minimize expenses on mature products? Do we just raise prices and give up market share? Do not underestimate the inertia of buyers. Can we sell part of the business without damaging the whole unit? How will the customers react?

Speculative judgments are the essence of strategic thinking, and they can be the starting points for taking a position. Strategic thinking is essentially a substitute for having clear connections between the positions we take and their economic outcomes. You have to determine where to invest in projects with a goal.

Companies create competencies by making bets, and putting the right resources in place to develop those competencies. Companies get good at something by doing it, and that give you a sustainable advantage.

You job is to figure where your resources are best spent. The most important job of any manager is to break down a situation into challenges that subordinates can handle. Absorbs a lot of the ambiguity in the situation and gives less ambiguous problems to others. That is the heart of strategy.

This article is based on the research and studies of Richard Rumelt.

October 5, 2007

Miserable at Work

You spend massive time at work, work gives you status, your income comes from your work, the income supports your family, and most of your problems come from work.

You work with demanding customers, coworkers of all cultures, political persuasions, religions, strange foods, irritating manners, and all types bosses that range from smooth salesmen to irrational dictators.

Most people do not get fired from jobs for incompetence. They wear out their welcome. Poor attendance, regularly coming in late, leaving early or at the minute, maintaining the welcoming attitude of an ogre or at least the neighborhood grouch, and eventually being left out of the daily give and take. Job performance of course follows this attitude with missed deadlines, sloppy work, and others beginning to take over your workload.

How We Get Miserable

First of all, remember when you got the job? You wanted it, begged for it and said “Pick me, Pick me! I will do a good job.” Think how thrilled you were to get your job? Were you ecstatic? Proud? You told everyone about your new job and company.

Gradually thing are not as new and fresh. There are problems. Grumpy coworkers, complaining customers, poor suppliers, and a ton of attitude. After a while, you’re now complaining about the alarm, the commute, the grind, the workload, his mess, her perfume, the weather (even though you work inside), the politics, the decisions, the demanding customers and the boss. What don’t you complain about?

Now you are in the rut that leads to getting passed over for new assignments, raises and promotions. The downward spiral gets worse when others are getting ahead and you stay right where you are. Be honest, are you thrilled with your performance.

You can be Happy at Work

Look for where you can make a difference. How are the customers happier? How are sales increasing? What you accomplished?

Fall in love with your profession again. Read business journals, magazines, and websites. Compare your products and services with competitors and see where you can improve. The difference between top performers and the average is top performers often give 1% more. Brian Tracy points out the difference is less than you would think. Persistence, service and a little extra often make all the difference.

Mentor coworkers, especially newer employees. They will appreciate the help and you will not believe how much you learn teaching.

Create business relationships. Let other people be right. Respect their contribution and ignore their unimportant shortcomings. Who is perfect? Learn about your coworkers and find out what you can respect about them. The biggest donor to charities at a small plant I worked with was a third shift machine operator who had adopted four kids. Would have never know him if I did not volunteer to help a charity drive. Take pride in where you work, and who you work with.

Have a little humor when things don’t go right. Humor often makes the daily trials livable. Laugh at yourself. In this politically correct world, you can always make fun of you, and others will love you for it.

You will be surprised in a few months how much more fun and productive work is with the right attitude. So go and enjoy work, and start looking forward to Mondays.

Wolfgang Christoph, Brian Tracy and Dr. Roberta Shaler deserve credit for the ideas presented in this article.

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