Congratulations Box Springs Business Park!

Friday November 30^th at 8:00 marks the grand opening of Costco at the Box Springs Business Park. While the opening of another ‘box store’ may not be significant to some, it is in my opinion a small piece of a much larger puzzle yet to be completed, that will only serve, to make Medicine Hat a better place to live and do business. For that Box Springs Business Park deserves to be congratulated.

Leadership, vision, and passion are just some of the adjectives that could be used to describe Spencer Lacey, John Hashem, Darren Skovmose, Albert Stark, and Warren Stark who are the five partners involved in BSBP. Years ago they took it upon themselves to purchase the land that today is known as BSBP. They knew in their hearts and in their minds that Medicine Hat is a great city and proceeded to go out and attract new corporations to Medicine Hat.

What is truly amazing, is the entire process they had to go through to get to this stage. It was not a simple transaction of purchasing land, finding a buyer and reselling it. The land had no services; roads, sewer, gas, electricity, nothing. In order to make this land commercially viable the group had to make significant investments to get the land to the point where it is usable and sellable.

The BSBP group had to have unwavering faith in this community that their large personal investments would be not go up in smoke and that they could convince other corporations what most of us already know, Medicine Hat is a fantastic city. In this case they had to convince a company that does 60 billion a year in sales that Medicine Hat is a place they needed to be doing business.

I am proud and grateful that that this group of entrepreneurs has the necessary fortitude and determination to reach their goals and make Medicine Hat a better community today and for years to come. Congratulations Box Springs Business Park, take a bow, you have earned it.

Changing the way I think, I think…

My objective is to make more of a commitment to fair-mindedness.

I don't think I would define myself as egocentric , however I think it is important that I realize that it does play a role in the way my mind works. I had to start at looking at how my identity was self-centrally shaped. For example at young age our parents instill into us particular beliefs about a wide variety of topics such as religion, politics, family, relationships, and schooling to name a few. We are a product of these influences and through understanding this I am able to be more than a product of those influences.

Before I continue I want to make it clear I am not bashing my parents, it is just an example of a type of influence, it could be teachers, television shows, or even newspapers. I.E I choose to read the Calgary Sun as a youngster because it was an easier less bulky paper to read than the Herald. The Calgary Sun, even more so years ago than today, are very politically conservative and I let a lot my thoughts and formations of opinion (which I believed to be correct) be influenced by the Sun's political views.

When I examined my attitudes I often found that unconsciously I often referred back to these influences to justify my beliefs (mostly belief that I am right). Some of these falsehoods are;

• It's true because I believe it - I tend to agree with people who believe the same things I do and not question them and conversely feel people are wrong because they don't have the same belief.
• It's true because we believe it - It's easy to believe something is true because a group of us believe the same thing and of course because we are a group we must have unique insight.
• It's true because I want to believe it - It is easy to believe, even to the point of absurdly that a point of view is correct because I badly want to believe it. Therefore I don't question it.
• It's true because I have always believed it - We automatically assume a long standing belief to be right. Man I have never been so wrong.
• It's true because it's in my selfish interest to believe it - If it serves to make me happy, wealthier, it is a lit easier to believe it to be true and not question it.

Basically I am trying to consciously recognize these tendencies and deliberately try to overcome them and think fair-mindedly.

The only caveat is if I am having a few beers I am still go to believe the Flames are the best hockey team, the Stamps the best football team, and my hole in one was all skill. I will argue that I am right until I am blue in the face even it does go against everything I just said. :-)

Burgernomics – The Canadian Dollar

Our company does a lot of business in the US and the exchange rate plays a significant role in our operations. Often friends and family ask me about the Canadian Dollar. Some want to head south and go shopping, others are going on vacation, some may want to buy currency based on speculation for a future holiday or event. I am not an economist or expert by any stretch but I thought I would share with you a theory.

A couple of years ago I taught an International Business course for Athabasca University. A portion of that course had to do with foreign exchange, money markets, and purchasing power parity (PPP). I had three hours to teach this ‘science’ the best that I could. We spent a lot of that time reviewing Burgernomics. So for those of you looking for advice here is a quick overview on Burgernomics and the value of our dollar.

Burgernomics is term used to describe the Big Mac Index. Essentially you want to predict exchange rate movement. The theory behind this is the rate between two currencies should naturally adjust so that a Big Mac should cost the same in both currencies. The Big Mac was chosen because it is available to a common specification in many countries around the world.

The Big Mac PPP exchange rate between two countries is obtained by dividing the price of a Big Mac in one country (in its currency) by the price of a Big Mac in another country (in its currency). This value is then compared with the actual exchange rate; if it is lower, then the first currency is under-valued (according to PPP theory) compared with the second, and conversely, if it is higher, then the first currency is over-valued.

For example (numbers as of January 31^st, 2007), the price of a Big Mac is $3.63 in Canada and $3.22 in the United States; thus, the PPP rate is 3.63/3.22 = 1.13 The actual exchange rate was 1.18 the meaning our dollar was undervalued by 4%. From this data you might speculate that our dollar will gain value against the US dollar, obviously we have gained much more than 4% in the last 5 months.

If you want to see how our dollar stacks up today, go to your local McDonalds check out the price of the Big Mac, call a McDonalds in the US and ask for their price of the Big Mac, use the formula above to determine the PPP. For those of you going to the UK the same principle and formula works as well.

It is a quick overview and I know it can be difficult to ‘digest’. Don’t come back to me with an ‘beefs’ about the formula if it doesn’t work for you. Sorry, I couldn’t resist.

Sweet Technology

Working in technology has its pros and cons just like any other field of work. One of the most significant pro’s is being able to see technology unfold and envisioning how it will impact our lives 6 months through 6 years from now. One of these technologies is Microsoft Surface.

Picture a surface that can recognize physical objects from a paintbrush to a cell phone and allows hands-on, direct control of content such as photos, music and maps. Surface turns an ordinary tabletop into a vibrant, dynamic surface that provides effortless interaction.




Microsoft Surface puts people in control of their experiences with technology, making everyday tasks entertaining, enjoyable and efficient. Imagine ordering a beverage during a meal with just the tap of a finger. Imagine quickly browsing through music and dragging favorite songs onto a personal playlist by moving a finger across the screen. Imagine creating and sending a personal postcard of vacation pictures instantly to friends and family, while still wearing your swim suit.



If that intrigued you visit the Microsoft Surface website at http://www.microsoft.com/surface/

There are three other demonstrations that I am sure you will enjoy.

Ramblings

Part 1

I thought it was time I share with everyone some of the changes you may have witnessed with me. I know some of my friends have commented that my actions or words are somewhat different than what they have come to expect from me. I guess that is good thing? I am not sure you tell me.

There are three (3) areas I have been spending a considerable amount of time re-focusing my attention on. These are;

1. Pay it Forward
2. Friendships
3. Changing the way I think


Pay it Forward – I really was inspired by my wife Celina on this philosophy. She got me started and for it I am very grateful! Most of you are probably very familiar with the term Pay it Forward but to recap; pay it forward is a philosophy that incorporates a more general flavor of social responsibility and desire to help others in recognition of the help one has received for one's self. It is also sometimes described as being "good for a favor", meaning a willingness to help others (even strangers) on the expectation that it will all come back around in the end.

For me, I don’t practice this when I receive a good deed or for the expectation that it will come around in the end.Typically I practice this philosophy with strangers. I have been very fortunate in my life to have a great family, great friends, fantastic mentors, and wonderful career opportunities. I practice this philosophy because it makes me feel good. It makes me happy to make someone else’s day a bit brighter.

At first I thought ,what can I do to make a difference? Some of what I have been doing turns out to be really simple. I would clean off the snow on the car next to mine in the parking lot, buy the persons coffee who is behind me in line, give a stranger a lift home when they are waiting at the bus stop with bags of groceries. Recently I was at a conference where I was given some free shirts, hats, a gift card, and some other miscellaneous items. A couple of miles from my hotel I noticed a few homeless people and thought what a great opportunity to help a couple guys out. I gathered the gifts I received and gave those items to them.

Now that I have been doing this I remembered a conversation with my Aunt Maryann, many years ago when I lived in Calgary. My aunt is an amazing human being and I will dedicate an entire post to her in the future as anything less would be an injustice. Anyway it was near Christmas and every place you went it was as busy as you could imagine, people everywhere but everyone was so nice because it was Christmas time. My aunt says to me why can’t people always be this nice. Why does it take Christmas to bring this out in people? I always remembered this conversation around Christmas but forgot about it the rest of the year. So a long story short, the pay it forward philosophy while it makes me feel good, I hold out hope that someday everyone will treat others as though it is the Christmas season.

Part 2 on friendships to follow.

JOBS - Positions Closed -Thank you

Hi, I just wanted to drop a note to let you know we are looking to fill a couple of positions at Auto-Star.

The first position is;
Technical Support Analyst / Network Administrator (Full Time)

This position focuses on end-user and second level support, technical training, system troubleshooting and product demonstrations along with secondary network administrator duties.

The second position is;
Administrative Assistant (Full Time)

The Administrative Assistant is responsible for providing administrative services to assist the company in performing its functions in the most efficient and effective manner.


If you know of anyone who might be interested send them to http://www.auto-star.com/company-careers.htm for more detailed information.

If you have any questions drop me a note.

Thanks

Tommy Land

Just finished reading Tommy Land - The Tommy Lee biography co-written with Anthony Bozza.



I have never read a book like this. That's not necessarily a good thing but not a bad either. It was very unique. The book opens with Tommy's most famous attribute writing the first chapter and adds his comments throughout the rest of the book.

While Tommy and I live VERY different lives, I found myself understanding and relating to various insights and experiences throughout his book.

I have always been a fan of his musical talent but I now have a better appreciation for the man and his goals and dreams.

If you want to borrow it let me know.

Cash Flow & The Retailer

Here is my article for the upcoming Auto-Star Newsletter. Let me know what you think.

Cash Flow, is the most serious issue retailers struggle with. Poor cash flow management is the #1 reason most businesses fail.

There are numerous items that can impact cash flow for retailers. These include loss prevention, debt management, tax planning, receivables management, and inventory management. Typically the majority of retailer’s assets are tied up in inventory, and while it is critical to generating cash, it also has a knack for consuming large amounts of available cash. The focus on this segment will be inventory management.

I have been through thousands of retail sites; some for personal shopping, and some for professional business. In about 5 minutes of walking through the store and the receiving area I can tell which retailers have too much cash tied up in inventory. The aisles and shelves in the store are cluttered and product maybe dusty. In the receiving area there are boxes of inventory stacked to the ceiling and possibly an offsite storage facility for more inventory. How much margin is lost renting storage space?

A few years ago I had a retailer who wanted to put me and our software system to the test. We chose the stationery section in his store as a starting point. There was about 8 feet of shelf space dedicated to this category and he had no idea if that was the appropriate amount of space. In addition, once a year the vendor allowed the store to return unused inventory for a 10% restocking fee. We counted the inventory, ensured his costs were correct, assigned bin locations, and started the analysis. We found 18% of the inventory in that category was driving 90% of the revenues. Usually you will see closer to the 80/20 rule but this was really an eye opener for the retailer. He returned over 70% of his items and reduced the shelf space to 4 feet for that category offering.

We monitored that store for a full year after the changes had been made. We found that sales in that stationery category jumped 200% with only half the shelf space allocated. Inventory turns shot way up and no longer was cash tied up in dead stock. Since then, the retailer has taken that process and applied throughout his store with great success. Cash flow has improved so dramatically they are now looking at building another store.

If you are overwhelmed with inventory and the process to get it under control, start small. Focus on one category at a time. Using vendor returns or markdowns, move that dead stock and create space for the money makers.

It is easy to get caught up in increasing revenue, achieving better margins, etc. Ultimately the goal is to make money by increasing net profit, while simultaneously increasing ROI and cash flow. Any of these three on their own are simple to achieve. The challenge is to ensure you do all three simultaneously. Increase your sales, decrease inventory and operating expenses and increase cash flow. If you achieve this you cannot fail.

Lights, Camera, AAaaaction

That title sums up my first experience with an on-camera interview. I stuttered and slurred my way through the whole piece.

The local TV station was in my office today filming for a two piece news story. The first had do to do with our purchase of another company in the United States. It will be aired tonight on the local news station.

They also filmed some pieces for a spot for next week that celebrates our company's 25 year anniversary. There will be more filming next week for that piece at one of our customers locations. Thankfully, for everybody involved, I delegated that assignment to someone else.

If you get a chance to see the piece please leave some comments. Let me know if I got the message across and feel free to leave any other comments or suggestions. I have heard that they got a great shot of my bald spot so no need to share those comments.

PS
Also look for the story in the Medicine Hat News. I am not sure when it will run, hopefully the message is a little clearer.

Cheers
Robert

My wife is heading to Jail

It is that time of year again. The Canadian Cancer Society's Annual Jail-N-Bail event. For those not familiar with the event, I have included a short description.

The Canadian Cancer Society's Jail-N-Bail® involves a mock jail set up in a high-traffic public area, such as a shopping centre. Citizens are "arrested" by off-duty police officers or other Society volunteers.

The event begins with someone calling the Canadian Cancer Society requesting the "arrest" of their boss, spouse, a politician, friend or co-worker. An off-duty police officer or volunteer "arrests" the unsuspecting participant, serving them with a warrant. He or she is then whisked off to "jail".

When the participants arrive at the "jail", their bail is set by a judge. With telephones and telephone books provided by the Society, the jailbirds make pledge calls to friends, relatives and co-workers to earn their bail. Most incarcerations last for one to two hours. All bail donations over $10 are tax-deductible.

If you want to help Celina out you can donate securely on-line at:

https://secureccs.ca/jnb/?inv=b29a3d3a-3fb1-45f5-be27-b3d857dd2110

At the rate she is going she is going to be in Jail for a very long time! If you are interested in bailing her out, let me know what you plan to donate and I may match it for you withholding your donation. :-)

B - List Celebrity Spotting & History

In early December I hit the road again. I was off to Toronto for a couple business meetings and then off to Chicago and Savannah, Illinois. It was a unique trip in that I had dinner with b list celebrities and got little history lesson as well.

Toronto
I got into Toronto Sunday and went to the Outback Steakhouse by the Airport for some dinner. I was seated beside a group of ten guys, most who made me look small. You know how difficult that is. Well as it was it was a group of professional wrestlers.
I only recognized three as I haven't watched wrestling in years but the most vocal and the one who stood out the most is wrestler known as Edge. His real name is Adam Copeland and apparently is from Toronto.



Another wrestler that I recognized is Christian. His real name is Jason Reso and my understanding is that he is from Kitchener, ON.



The other wrestler was 'Spike Dudley' I don't know much about him, he was the one I was sitting nearest to and was fairly silent.

Chicago - Dixon
Once I was done my meetings in Chicago I started heading to Savannah and ended up spending the night in Dixon. I had never heard of Dixon but it is famous for Ronald Reagan's Boyhood Home.



This is the home that the Reagan Family first lived in, when they moved to Dixon in 1920. President Ronald Reagan's boyhood home has been restored to the 1920s period. Tours are available but were not running when I was there.



Dixon - continued
The last fact I run into that was interesting to me was that Dixon is where Chuck (Charles) Walgreen lived and opened his first pharmacy. You got it, Walgreens. Walgreens today has over 5,500 stores across the US.

That is about it for the B-list celebrity spotting and history. I did want to share with you the great rental car I had. After waiting 90 minutes for a car the rental agency upgraded me to a Jeep Commander.



This was an amazing vehicle. For a 4X4 it was a really smooth drive. More power than you could ever need and the stereo system shook the vehicle. I can't wait for my next 90 minute wait!

Freakonmics

I purchased this book about 6 months ago but never got around to reading it until I flew to Chicago a few weeks ago. I wish I had started reading it earlier. A fascinating book that changes the way you look at many facets of your everyday life.

You think a book about economics and numbers is going to be a dry read. Rather, it was an eye opening interesting approach to just about everything in life.

The book dissects everything from the organizational structure of drug-dealing gangs (very similar to 'corporate America') to what a baby's name says about their opportunity for success in life. There is also a more serious controversial link between the legalization of abortion and a reduced crime rate two decades later.

I highly recommend it to anybody. If you would like to borrow it, let me know. Right now another colleague has it but they should be done soon.