Al Cleinman's Blog

The Global Economy - Simplified

My friend, former partner, and mentor Tom Schinkel is one smart guy (See June 8, 2009 post).  Tom was my partner and co-founder of Co-Optics of America, the first national buying group, back in 1979.  It was his insight into the forces at work within the optical industry that became the foundation of our business plan; a model which today represents billions of dollars of optical trade world-wide. 

The former Executive Director of the Dutch Wholesaler's Association and a Retail Distribution Expert, Tom has spent the past thirty-five years helping CEOs and senior managers define and implement expansion strategies on an international scale.  Today, Tom is likely the world's leading expert on the office products industry.

Tom has a knack for making the complex simple.  He's a knowledgeable observer of the world of business and has an expert's understanding of the forces at work within the global economy. 

The attached white paper will provide you with some insight into some of the driving forces behind our current economic challenges.  Enjoy!

Download Driving the Economy through Incentives

Why be Thankful?

This is a special time of year, an opportunity for us to consider our lives; and the lives of others.  It's one of those holidays where I tend to wax a bit more towards the philosophical side of my psyche.  I'll apologize up front for that now...but after all it's my blog:)

As I've considered this past year, my thoughts immediately went to August 4th, the day that I was struck down by a vehicle while crossing the street.  While my injuries were likely not life-threatening...although ugly...the event caused me to take a look at my life from a somewhat different perspective.  Perhaps you've had similar situations occur in your life...a moment when you really took a look at who you are and where you are going?  If not, don't wait for a car to mow you down to reflect.

In my particular case, the event simply confirmed for me that I am on the right path.  I love my work. I have countless friends around the country. I have a  wonderful team at Cleinman Performance Partners who really care about the work that we do.  I am so very thankful for all of the many opportunities that I have had during the course my life to contribute; to make a difference in the lives of others.  I am thankful that my parents and grandparents showed me, through their actions, how to work; and to be caring and considerate of others.  I am thankful to have loving children and to have a good relationship with their mother, in spite of being divorced.  I am so very thankful that a multitude of opportunities have shown up on my doorstep and that I've been blessed with the tools to see those possibilities.  I'm grateful for the positive attitude which has somehow become the foundation of my personality and to have been given the gift of persistance; the ability to see through to success in spite of the barriers before me.  I am thankful to have seen so many beautiful places; and to live in an amazing part of our great country.  I am thankful that my readers put up with my poetry; my directness and my sometimes different perspectives.  I am thankful to live in the best country on the planet; one which, in spite of its challenges, has provided so much for all of us.  I am thankful to those who give of their time; their body parts; their mental health; and their lives so that we can enjoy the freedom that many take for granted. Thank you!

Perhaps it's time to take out that pad of paper and jot down all for which you're thankful?  Perhaps, tomorrow, you might do so with your loved ones?  Go ahead...wax a bit philosophical.  You'll be better off for the process.

The Slow Drift From Great to Good

A client and friend forwarded this wonderful article to me written by Doug Fleener.  I'm sharing it with you with permission of the author.  I wish I'd written it.  Enjoy!

 ___________________________

I love a GREAT cup of coffee. For years I began every day by grinding freshly roasted beans to make a rich and full-bodied cup of morning goodness.  There isn't much better than that first cup of the day. About a year ago I begin to tire of having to grind the beans in the morning, so I started to grind them before I went to bed at night.  Everything I've read says the coffee begins to drop in quality soon after grinding the beans but I figured it was a small price to pay for convenience. After a few months I decided that grinding the beans at night was becoming a grind.  I decided to buy my coffee already ground.   I did notice the difference in my morning coffee between my freshly ground beans and the already ground coffee I bought at Peet's or Starbucks but I figured it was a small price to pay for convenience. Now that I was already buying pre-ground coffee I figured that I might from time to time skip the extra trip to the coffee store and buy coffee at the grocery store.  Even though there have been some great strides in the improvements in packaging technology, there is still a noticeable difference in ground coffee bought at a Peet's or Starbucks store and the same brands bought at the grocery store.  But sometimes when I was in hurry I just grabbed some coffee at the grocery store.  I figured it was a small price to pay for convenience. One morning as I drank my "GREAT" cup of coffee I was reading an article in Cook's Illustrated about how to properly brew coffee.  As I read the article I thought to myself over and over, "I used to do that." I realized that my GREAT cup of coffee wasn't really that great any more.  Over time I had slowly drifted away from the small but simple steps required to make a great cup of coffee.  Because each change I made only reduced the quality by a small amount I didn't really notice how much less "great" my morning coffee had become.   Of course it was all in the name of convenience. I'm sure you know where I'm going with this. The same thing can happen in our stores and in the experience we deliver.  One or two of the little things you would once did to make your store a GREAT place to shop fall by the wayside.  It might be to save time, payroll, or inconvenience.  And it's such a small thing it won't make a big difference. It happens often.  A store offers to carry every purchase, no matter what the size, to a customer's car.  Then over time they might only offer if the purchase is big and bulky. But now they only carry purchases to the customer's car when the customer asks. Or maybe it's the practice of offering customers something to drink. The store goes from offering all customers a drink, to those customers they're working with on a sale, to only giving a beverage to the long-time customer who still asks for one. Other areas that sometimes get lost in the name of convenience are gift wrapping, follow-up phone calls, thank you cards, and getting customer contact information. The point is that just like the decline in quality of my morning coffee, these small changes slowly takes the experience away from what used to make it special.  The cost of saving time, money, or just making things a little more convenient for us is a lot higher than we think. Right after reading that article I went back to doing what it takes to brew a GREAT cup of coffee.  The difference is amazing.  Over the last year my morning coffee was good, but good isn't great.  Sometimes good is okay, but we shouldn't fool ourselves into thinking that good is GREAT. So let me ask you as you enjoy your morning coffee, is there anything in your business you've let slip to good even though it's GREAT that is the key to your success?   If there is, what steps will you take today to turn it around? ______________________ You can enjoy Doug's blog about retail experiences at www.retailcontrarian.com

Back to the Future - Goodbye to Money

I think you'll find this short article from TIME Magazine from May 12, 1961 to be fascinating.  Enjoy the read.

_____________

What computers can already do makes any prophecy of future potentialities difficult: it is hard to top the fantastic. But Dr. Simon Ramo, executive vice president of the booming electronics firm of Thompson Ramo Wooldridge (TIME cover, April 29, 1957), last week took a bold peek into the future. At a U.C.L.A. lecture, Si Ramo painted a picture of the coming "age of intellectronics":

LAWYERS: "Two or three decades from now, every attorney might have an electronic connection to a huge national central repository of all the laws and commentaries upon them that he needs." Instead of searching through law libraries for precedents, says Ramo, a lawyer will consult the intellectronics system by means of a typewriter-like gadget in his office which, within seconds, will produce "any information that is available on his particular question."

DOCTORS: Doctors of the future, according to Ramo, will feed their patients' case histories into a medical intellectronics system that will correlate the information with that amassed from thousands of previous cases and then supply "the statistical probabilities of the relative effectiveness of various treatments."

BANKS: The routine chores required to keep money transactions straight, Ramo argues, are "as unsuitable for the human intellect as pulling huge stones to build the Pyramids was for human muscles. Some day, currency and coins will be only for the rural areas. If you buy a necktie or a house, your thumb before an electronic scanner will identify you, and the network will debit your account and credit the seller."

At what risk all this? Well, admits Ramo: "Occasionally, a transistor burning out in Kansas City may accidentally wipe out the fortune of someone in Philadelphia."

Leaders are Never Done!

A member resigned the other day.  It happens.  Sometimes it’s for a good reason; more often it adds up, in my opinion, to a dose of “penny wise, pound foolish.”  Perhaps that sounds arrogant from someone who develops and sells the very service of which I’m speaking.   It’s not my intention to send that message…indeed, I’m humbled that so many professionals seek out our advice and participate in Cleinman Performance Network.  I am also confident that we focus a significant amount of energy and resources on seeking out the means and methods by which to deliver value to our members, just as you do for your patients.  After all, leading the charge is my solemn duty as the CEO of my firm.

 

In this particular case, I was most troubled by the stated reason that came my way; “I’ve accomplished all that I want to accomplish,” this member said. 

 

Think about those words for a moment. 

 

Imagine an employee coming to you and voicing these words.   Imagine your child saying this to you.  Or your spouse?   How might you react? 

 

In my opinion, and I mean no disrespect to this individual, what concerns me is that there are folks out there who think that the job of a leader can be “over.”   That, magically, one can continue down the path of progress without investing in oneself.

 

Someone once said “the speed of the leader is the speed of the pack.”   I believe in that philosophy. That’s why I invest a substantial amount of time and money each year on my personal development (and each member of my team does the same).   I can’t think of a better investment.  For me, investing in my personal development and that of my team has become second nature.  Setting personal and business goals is a way of life.  I will never accomplish all that I want.  I can’t imagine life having done that.  What would I have to live for?

 

Here’s another factoid that you may find interesting:  Readers make more money - a lot more! (Even in tough economic times.)  Several studies reveal business people who read at least seven business books a year earn over 2.3 times more than those who read only one book per year.   Interesting!

 

At the end of the day, perhaps this all boils down to “curiosity?”   I was graced with burning curiosity.  I look to hire people who have this same basic attribute.  And it’s curiosity about how we can do a better job that drives our entire culture.  Certainly, our current economic environment screams for this.

 

My challenge to you is to ask yourself some hard questions and take the time to write down your answers:   Am I curious enough?  Is my team curious enough?  What’s around the bend?  How might I improve?  Where are we going?  How will I get there?  What resources will I need?  What opportunities am I leaving on the table?  Where am I spinning my wheels?  What tasks might I eliminate?  What questions do I need to ask myself?

 

As you’ll soon conclude, the job of a leader is never “done.”   And that makes for both an exciting life and job security.

 

Take a VSP Vacation...You Deserve It!

Just heard from a doctor who viewed the video link to the  VSP employee “Wellness” benefit (see Post November 5th).

He's going to cancel his next 2 VSP exams to give his staff a break.

He says he's going to see a medical visit patient later in the day that will more than make up the difference.

 

VSP's Fight For Your Reimbursement Increases Causing Employee Stress

Thanks to a loyal reader for submitting this video (see comments).

Apparantly, VSP employees, who have one of the best benefit packages in the world (for example: 15% 401k Contribution...twice that of IBM), have been fighting for Provider fee increases.  Yep...it's hand to hand combat out there as they attempt to obtain reimbursement increases for their downtrodden providers.  As a result, employees at VSP are apparantly pretty stressed. 

So, what does VSP do?  View the video below.  Rumor has it that the benefits described (read post of July 14, 2009) will soon be available to the employees of VSP's 26,000 Providers through a special grant; the result of outstanding profits from VSP's various companies who sell their products and services to...you guessed it...VSP Providers.

http://www.kcra.com/video/21532360/index.html

Reality is that I wish I could provide these services to my employees.  And, under normal circumstances, I'd applaude any company that did this for their team.  That said, VSP (and other vision plans) earns its largesse by; a) controlling 55million patients and; b) cramming ridiculously low reimbursements and ludicrous policies down the throats of Providers, many of whom are dominated by VSP patients and scared to say a word. 

What's going on with Vision Plans isn't fair...and sooner or later things are going to change.

At What Stage is VSP?

Recent articles in the eyecare press have reported that the American Optometric Association (AOA) ruffled the feathers of VSP and the National Association of Vision Care Plans by suggesting to a senator instrumental in the currrent health care reform debate that stand-alone vision plans are aiming to "turn back the clock by continuing to segment vision from eye health," and said such plans are "seeking to impose misguided limits on the care that our patients—especially children—receive."

Logically, reaction to those statements was aggressive.  After all, it doesn't take a rocket-scientist to recognize that, with optometry's increased scope of practice and their inclusion in most medical plans, such stand-alone plans may have run the course of their usefulness to anyone but the plans promotors and owners.

A follow-on joint statement issued by the AOA and VSP after their recent meeting said "both organizations are committed to expanded access to eyecare," and that both "recognize the importance of including provider non-discrimination provisions that will safeguard patient access to optometric care in any health-care bill."  AOA president Randy Brooks, O.D. said some statements in the earlier AOA/AAO letter may have been misinterpreted.  Brooks said the AOA would "never do anything to compromise existing vision care," noting "we're not against stand-alone vision plans."

Logically, reaction to the AOA's statement by the the Managed Vision Care industry was strong.  With VSP and their breathren being major contributors to various association activities, it's logical that they used their political clout to soften the AOA's position.  Afterall, money talks.

Yes, consider whether it really matters whether the AOA is against stand-alone plans or not.  Are Providers, who represent the key ingredient of both the AOA's and VSP's success, fed up with low reimbursments and arrogant unilateral actions by the likes of VSP?  Are Providers at the stage where they are sick and tired and near the point where they're not going to take it anymore?  What's really going on here?

Perhaps there's a roadmap for what's been unfolding for VSP over the past number of years.  I find it in Jim Collins' latest volume of management thinking, How the Mighty Fall ... and Why Some Companies Never Give In.  This great read begins with Collins recalling the advice of his mentor, Stanford professor Bill Lazier: "Don't try to come up with the right answers; focus on coming up with good questions." And certainly that describes Collins' achievement in this book. The question of why leading companies, seemingly in possession of every competitive advantage, so often manage to blow it is surely a good one.

Collins provides the five stages of a company's demise:

1. Hubris born of success
2. Undisciplined pursuit of more
3. Denial of risk and peril
4. Grasping for salvation
5. Capitulation to irrelevance or death

I've often said that the questions are far more important than the answers.  Have you read the book?

A Message for our Children...and Ourselves

This great message was passed on to me by a friend...and I share it with all of mine here.  Enjoy...Al Cleinman

A Parent’s Letter
to My Children in School
Written by Jeff Thredgold, CSP, President, Thredgold Economic Associates

To my children and grandchildren…

With your focus on education, I often find myself thinking about how much the world has changed since I was in your shoes. The world is now a much “smaller” place—people of all cultures can communicate and travel with ease. You face great challenges today…just as I did…just as my parents before me. These words of advice might be helpful:

•  Recognize that the only limits you face are those you set for yourself

•  Be the BEST that you can be

•  Recognize that YOU are responsible for your successes and failures

•  You must earn your way

•  Strive for excellence…not perfection

•  See the glass as half-full, rather than seeing it as half-empty

•  Focus on positives, rather than on negatives

•  Look to praise, rather than to criticize

•  Look for ways to succeed, rather than excuses to fail

•  Commit yourself to constant improvement

•  Understand how important education is to success

•  School is the key. Technology rules. You need better skills to succeed

•  Learn what is being taught, but most importantly, learn “how” to learn

•  Develop other information sources to verify, or challenge, what you are being taught. “History” is routinely twisted or rewritten to support a particular point of view. Get other ideas

•  Treat teachers, administrators, and fellow students as you would like to be treated

•  Be the first to say “Hello”

•  Develop your mind in school, but also develop other skills and interests, including music, art, and physical fitness. This is where teamwork develops its roots

•  Be a well-rounded person

•  Resist taking “easy” classes

•  Dig into math, the sciences, and computers. These form the technical foundation for future success

•  Study language

•  Speak and write English correctly

•  Appreciate other cultures by learning another language

•  Be honest in your approach to learning

•  Resist the temptation to cheat—you only hurt yourself

•  Develop a keen interest in the outside world

•  Pay attention to the “news.” The “real” world can be very different from the student world you live in today

•  Avoid the temptations of alcohol, smoking, drugs, gangs, and irresponsible personal behavior

•  Understand the steps you take today have lifelong implications

•  Choose your friends wisely

•  Do what you can to make a teacher’s job easier, not harder. Teaching is one of the most important, most difficult, and most underpaid professions in the world

•  Participate—but don’t be a pain!

•  Be a friend to all. Extend a hand of friendship to all other students, regardless of race, creed, or color

•  Make a special effort to be a friend to those less fortunate than you

•  As you mature and face new challenges, don’t hesitate to discuss with me what is on your mind. You might learn from the mistakes of others

•  Recognize how LUCKY you are to live and be educated in this great country. People from around the world are dying every day trying to get INTO this country…not out

•  Don’t forget to have fun!!

•  School can be a great time in your life

•  Experience it

•  Live it

•  Enjoy it

Many of these suggestions will be useful throughout your life—learn them well. I wish you the greatest success in your efforts and hope you find school both rewarding and enjoyable.

Love,

Dad/Grandpa