Friday, January 25, 2013

The Strategic Plan

It’s been an interesting week here in the heart of the Rust Belt.

On Tuesday, I joined my wife as being laid-off from the same employer. Nearly 65 years of loyalty, wiped-out six months apart. With no insurance for either one of us beginning in February it’s been a race to take care of a three-month pharmaceutical supply and look into a surgery I put-off for a year or more.

Good News/Bad News

After visiting a physician (who now practices with a different healthcare system) for what I believed was a meniscus tear, the x-rays and MRI came back normal. The bad news is: I have a rare bone disease that causes my knee to buckle invariably while walking. Which equates to a bigger problem- who will hire a 56-year old male that walks like a crippled person at times?

Watcha’ Gonna’ Do?

The best option all along was to hire myself. I’ve gotten several ideas in mind to generate my own income and no longer be “someone’s cog in the system.” I am amazed in the short time I’ve been unemployed with the ideas I’ve gotten and hopefully a couple of those projects will pay the bills. We are only limited by the constraints- we place upon ourselves.

Being the Best

I was blown away by the accommodations the physician and his staff attempted to arrange after explaining my insurance would expire in a week. My former employer’s orthopedic department nearly laughed at me on the phone when given the same opportunity. Not quite the “expert care” advertized! My co-payment would have been less if the surgery and physician care was done in-house.

Upon explaining our situation to the physician, his jaw dropped and his comment was: “Unbelievable.” It was pleasant to learn his views and thoughts were exactly the same as mine. He truly sympathizes with the employees affected by the Strategic Plan and layoffs. I overheard his nurses say: “I’ve never had to arrange a standard procedure so quickly.”

You and your staff have my loyalty, trust and heart. I knew you would come through on such short notice and I am so grateful for your efforts! I will never forget your integrity, passion and commitment towards your patients.

The Theater of Pain

We were told less than 1% (25 or so) of the employees would be affected by the layoff, but judging from reports I am hearing, it could have been more. The organization did not file a report with Ohio WARN for a mass layoff (of 50 or more employees) so It's possible another layoff could happen. During my travels around town today, I am hearing word on the street of their partnership deal has already been signed and the average citizen can’t understand why it is being kept secret from the employees.

My thoughts are it makes the partnering party look like the good guy once the deal is announced and the layoffs are already done. I have yet to hear of any management or administration positions being eliminated. My wife believes around 14 LPN’s will be affected after providing advice to that group. Sadly, I learned of another couple who was/is employed and signed mortgage papers for a house the night before her spouse was laid-off, Wednesday.

Many of us had decades of employment and are over the age of 50, some folks affected have spouses or children with disabilities and their former employer was the only source for affordable insurance. Some of those people are single mothers with children. My heart and prayers go out to all of those families.

My Pride and Joy

Last night, I wrote the introduction to my new forthcoming book. I thoroughly enjoyed it. This weekend I will focus on laying out the chapters. For me, writing is the most therapeutic exercise possible.

It shouldn’t take but a month or two to finish this expose. My original idea was to wait until I retired to write the book. Thanks to my former employer that day will likely be February 1^st!

Until We Meet Again,
Jim Carver

Author: The Legacy of David A. Wells- The Lexington High School “Band of Gold”
Something Meaningful that Matters!
www.successthroughmusic.com

http://jimcarver.blogspot.com/

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Sunday, September 30, 2012

The Problem of Mass- Just ask General Motors!

We’ve seen the history of mass during the Industrial Revolution. It has taken the form of: production, factories, transportation, food, retailers, riots, consumption, marketing, start-ups, dotcoms, healthcare, layoffs, moving overseas and closures. Anyone see a mass pattern here?

During the 1960’s, it was common to find several gas stations at any major intersection in the United States. They attempted to offer free drinking glasses or soda (6 packs, 12 packs, or even a case) to compete for your business. Many offered full service car repair. The service stations paid employees to wash your windows, check your oil and pump the gasoline.

Near the end of the long tail, service stations offered free 2-litre for enticement, but the auto services and attendants began being replaced with mini-market stores inside the business. Check your own oil, wash your own windows, pump your own gas or air into your tires (no longer free). The money was being made from the food and merchandize sold inside the market, not the gasoline product.

Gas card have become the only form of enticement and serve as a form of customer tracking, while some outlets feature a car wash. Few gas stations offer any type of mechanical service.

Slowly gas stations in cities became less prevalent. The economics of the industry changed. Retailing to the masses was no longer sustainable.

Many of those street corner businesses have been replaced by drugstores. Where you find one pharmacy, you’re likely to see another close by.

The same with big box stores replacing grocery stores, hardware and retail stores. Businesses designed to market to the masses by offering one-stop shopping.

Healthcare is another industry falling into the mass trap. Many healthcare businesses are expanding, merging systems to reduce cost and increase services. This reduces the competition and one company is committed to serving the masses.

The biggest problem of scaling to mass is- it just doesn’t last. One large change in economics, technology or market share can bring a giant to its knees. Just ask General Motors.

The problem of mass:

· Lower wages (unless unionized).

· Loss of personalized service. Mass is about numbers, not people.

· Customer service suffers. Familiarity is gone. Nobody knows you.

· Quality becomes lost in the focus of mass (replaced with a chant).

· Lack of standardization of employee roles becomes a morale issue.

· Consistency from employees between roles, location and businesses differ.

· Growth is all that matters.

The biggest problem with mass is once the threshold of growth is met, the scale of the business becomes about reduction. Then the pain begins. When you cheapen something to obtain mass acceptance, offering less at the lowest price is the only option. The race to the bottom is all about someone else doing something cheaper!

It’s far better to offer services of exceptional value with customer and employee satisfaction to sustain or grow a business. Natural growth built on a sound business foundation is far sturdier than scaling to mass.

It’s no secret.

Just ask General Motors!