With all the news about the auto industry, I thought it appropriate to comment on why they are in such a tenuous position. The reasons are simple, failure to look ahead and poor customer service. Enough has been said about their failure over the past twenty years to plan for the long term. But what about customer service? I’d like to share an experience I had with GM.

A few years ago, I drove a Chevy Blazer. It was a fun to drive, except when something needed to be fixed – which tended to be quite often.  On one particular occasion, my fuel gauge went out and I took it to my trusted mechanic. After checking the car I was told… “No problem, the fuel sensor just needs to be changed and the part costs about $30″. Great… I thought. My mechanic then told me…. “Oh by the way, GM put the entire sensor in the fuel tank. So, we’re going to have to drop the fuel tank, empty it out, replace the sensor and then put the tank back on”. Total cost…. $700+! My mechanic suggested not having it done and just use my odometer as my fuel gauge.

I felt…. abused. My mechanic told me that part of the sensor (the part that usually breaks) could have been placed on the outside of the tank. Why then would someone at GM put the entire unit IN the fuel tank? I don’t know for sure… but what I thought was… it was a convenient way for them to make some money when it needed to be replaced. Unfortunately, this is not the excepetion. Ask your mechanic about how GM cars were designed, and you’ll get an earful. I hesistated to write about this, but found this to be a common problem for the Blazer that was well documented in user forums on the Internet.

Bottom line…. never, ever – try to take advantage of your customers. Give them the absolute best product you can, and don’t look to nickel and dime them on every little thing that you think you can get away with. Bad practices will catch up to you eventually. It did for GM, Ford and Chrysler!

All the best!
All the time!
JT

While surfing the internet, I came across an interesting website hosted by Carl Icahn. For those of you not familiar with him, he is listed at number 20 on Forbes’ list of richest Americans. He has a reputation, some of it not so great, as being greedy and arrogant. The Wall Street Journal (WSJ) today called him a Corporate Hell Raiser. I can’t speak to the past, but I believe Mr. Icahn now “gets it” (I’m sure he’ll sleep better knowing that I approve).

In the interview with the WSJ, he says that most company boards are dysfunctional and have been for some time. He is now calling for more corporate accountability in how companies are managed, and I think he may be on to something. Being who he is, he has a better chance of bringing about change than you or I do – at least at this point in time.

I hesitate to write this, because no one can tell the future. I also don’t want to be a doomsayer. However, I think things are going to be worse, much worse, for our country. I don’t think that Paulsen or Bernanke quite understand what has happened, mainly because they are too far removed from the financial situation of the average American.

What has happened?

1. Over the past 5 years, the average American saw their wealth, their financial self-worth, sky rocket… then plummet. As an example, a house worth $200,000 in 2000, was worth $600,000 in 2005. Now, it is probably worth about $200,000 again. People lost a LOT of money. If not in actual dollars, in their psyche – they became destitute.

2. People used their equity to live a lifestyle they couldn’t afford and went into debt based on home equity loans and credit cards. Now they have negative net financial worth.

3. The stock market crashed and people lost 30-50% of their retirement savings (It’s not over yet!). Yeah… I know, it’ll bounce back. BUT – with baby boomers losing that amount of money, and with a compressed retirement timescale to make it up, they are going to be very very very risk adverse. This money is not coming back into the stock market because of #1, #2 and this point #3.

4. Deathspiral – American consumers cut back on spending (Look at October’s numbers on consumer spending. It was the largest decrease EVER recorded) causing investors to hold back capital, causing corporations to close stores/factories/offices, causing loss of jobs which causes American consumers to stop spending. You get the idea.

5. Local and State governments will flounder financially. Lack of consumer spending and urban growth is causing shortfalls at the State and Local Government levels. We will be seeing some of these start to file bankrupcy next year. Then the bonds that people thought were safe, will no longer be safe and there will be another crisis. As an example, many cities and counties took out bonds 5 -10 years ago to accomodate the growth of suburban America, fueled by the housing boom. Now, those homes are either empty or not built. The revenue that they were expecting in property taxes and water, sewer, electrical fees is not coming in because of this, and many are going to have problems paying their bonds due to the lack of funds. This will cause further problems in that government will shrink, causing layoffs, causing more Americans to cut back on spending….. see #3.

6. Lack of Leadership in Congress at both the State and Federal levels. These guys and gals just don’t get it. In California, they are taking irresponsible, untenable positions. The hard lines of no new taxes (Republicans), and no cuts to benefits (Democrats) are anti productive. We need to do both. The quabbling by these supposedly smart men and women is going to delay any real action from happening. It is going to take TRUE bipartisan support to put something in place that will help to avoid financial melt down at all levels of government.

7. Wrong focus of the bailout package. I don’t understand this. Well, I do – and it makes me sick. I remember the package being sold to Congress with the cry of Chicken Little. Paulsen said in October.. if we don’t have this package by next week, the world will end. Banks will freeze, lending will stop. Well…. of the $700 billion, we’ve only spent a small portion of it AND – in ways that are completely different than originally intended. While Paulsen will tell us the crisis was avoided, how can that be when it took over a month to spend the money, and only a small portion of it? What did the Feds actually do that made a difference? Which tells me that they didn’t really understand what was going on at the time, and panicked. They wanted a slush fund of $700 billion (1/10th of our National Debt!!) to fix something they didn’t understand. Just this week, they gave some money to American Express (Are credit card companies the next victim to the cycle?) and are thinking about bailing out the auto industry.

8. Failing Healthcare system. I have a friend who is undergoing treatment for cancer. She told me, one… ONE… chemo treament costs $9,000! That is a lot of money. Even though she only pays a co-pay, someone is footing this bill. How is the average American going to afford healthcare… AND continue to spend on the luxuries that we used to in the past. There are some that suggest all Americans have to do, is spend more money to get us out of this financial mess. That may have worked in 2001, but it won’t this time. Times have changed.

8. Same bat channel, same bat time (for you Batman fans). Ok… when are we going to get serious about holding managers and leaders accountable for their actions. Which brings me back to my original point about Carl Icahn. Capitalism, our way of life, is at stake here. I certainly don’t have a problem of people making money. Lots of money. However, it is a crime.. really… for CEOs AND upper management to walk away with hundreds of millions of dollars EACH when their companies are going down the tubes. Think of it this way, my lone consulting busines… me… John… made more money than GM, Chrysler and Ford combined. I don’t think I’m taking home a $200 million bonus this year. We need to hold people accountable.

I can’t predict how all this will play out, but I do know that poor corporate and government leadership got us here. We need to do more to help insure that this doesn’t happen again. Check out Carl Icahn’s Website and join his United Shareholders of America.

Some 33 years ago, I left home for the US Naval Academy filled with lofy ideals and a true desire to protect the democracy that our country stood for. Although as a young teenager of a middle class family in America, I certainly did not understand the complexities of global politics and the different strategies that could be undertaken to shape our world. Having said that, looking back with what I hope is the wisdom of age, my reasons for joining the Navy seem as vital now as they did back then.

As a young man, I believed in the dream that America stood for. Freedom. Equality. Civility. A place where all people were welcomed. I held a deep belief in what our founding fathers wrote in the Declaration of Independence:

IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–

Powerful words. Powerful thoughts. I know our forefathers were not perfect and many of them owned slaves and led less than noble lives. While unjust, if that is all we remember I think we would be missing the point. What is truly remarkable, is that these men gave America a dream. Without this simple document and these words of inspiration, our country would have nothing to set it apart from others. Nothing to aspire too. Nothing to hope for. Perhaps they had a vision of what could be… of a place where all are equal, regardless of the color of their skin, their sex or their status in society.

As a young man these were the ideals I hoped our country would grow into. However, as I grew older I began to realize that all was not so simple. As I journeyed through life over the years, this belief… began to falter. As I took more interest in what was going on in the world around me, I began to see chinks in what I thought was America’s shining armor. Our country has mades many mistakes over the past 30 years. Some of them pretty drastic.

And yet… the American dream, the American phenomena lives on. The presidential election of 2008 restored my faith in America. Yes, it is inspiring to see that America has grown above the bigotry and racist attitudes of the past, but more imporantly – America woke up. America took an interest in what she was doing to the world and also how the world was impacting her. People began to care again. When people care, great obstacles can be overcome. When millions of people can come together to vote on the direction of our country with no bloodshed afterwards, that is a great thing indeed.

Again – I believe! Perhaps I never should have stopped. The reason I served is still important today, just as it was 33 years ago. To protect America – the land of opportunity, the land of the free, the land of the brave.

A heartfelt thanks to all the men, women and their families for serving our country. To ensure that one place in the world keeps the dream alive… that all are created equal.

All the best… All the time
JT

I’ve been blessed with never having to file for bankruptcy, but I’ve come awfully close to running out of money. When I left active duty from the US Navy in 1992, I was college educated, had 8 years of great leadership experience and was accustomed to being in charge of missions where if you make a mistake… people die. Much like today, the economy in 1992 was in a recession. Despite all my best efforts, I could not land a job before my separation from the navy, and it was well over a year before I finally found a job… as a file room clerk. During this time we went through all our savings and were living on vapor (as the jet jocks – pilots – would say in the Navy as they were low on gas while flying over the endless ocean).

Of course, lack of money caused all sorts of problems for me… both internally… and externally. It was a tough time for my marriage… my self-esteem… my self-worth (pardon the pun). But… I did make it through this experience and here’s how I did it.

1. Realize that this is just part of life. It happens. It happened to Donald Trump… so you’re in good company.
2. Realize that it will end – as long as you don’t give up.
3. Get Help. Don’t be shy… go get unemployment if you lost your job. Check out your local and state resources to see what is avaialbe to you. I didn’t file for unemployment for over six months, and then when I did, the state clerk who was doing her job said I didn’t qualify because I voluntarily left the navy. Go figure.
4. Change your spending habits. Cut back wherever possible – NOW! Don’t wait until you have to. Try to extend your cash for as long as you can. I didn’t do this, but if you can’t control your spending, cut up your credit cards. As my dad taught me…. never… ever… charge what you can’t pay back at the end of the month. Your credit card is there for convenience, not for a loan.
5. Change… Change… Change. Folks, I hate to be the bearer of bad news, but the world is changing. GM, Ford and Chrysler should have saw it coming 30 years ago. They chose to stick their heads in the ground and look where it got them. If you are in a profession that is no longer valued, change your career track. Your country does not owe you a living. It owes you the opportunity to live a fruitful life. You have that opportunity. Buckle up and take advantage of that opportunity. If you really are at $0, you have nothing to lose (literally) and all to gain. For me, that meant going to Haldane to get some perspective on what I was doing and to explore what other options I had. I thought I would end up in the defense or airline industry. I ended up in Healthcare and IT.
6. Do whatever it takes. For the first three months of my unemployment, I pounded the pavement, but didn’t have any income. Looking back, I would recommend that you get something part-time right away to bring in some income and give you a sense of self worth. Holiday season is here, and although the economy is pretty bad, there are probably some stores who will be hiring seasonal help.

I eventually worked as a telemarketer (please forgive me!) and did data entry for a few weeks at a law firm. My entry back into the workforce… as a file clerk for a 22 year old at an HMO. A rather long story in itself. Bottom line, despite my college education, experience as a US Navy Lieutenant, and age (I was 35)… I ended up working in a file closet the size of a small pantry, and my immediate supervisor was a 22 year old secretary who was a high school graduate. But… it was what I needed to do and eventually led to my promotion within 6 months back into management.

DO WHAT IT TAKES

I could write volumes on my experience… but know this.. you will survive. The Japanese have a word called Gambate (Gaum-bah-tay), that means hang in there… with spirit. It means don’t give up. Press forward… Move on. Conquer.

Gambate!

JT

Based on my reflections over the past few months, I have come to more fully realize (and appreciate) that to successfully reach your dreams, you must pay a price. Now, I know there are the “lucky” few who somehow win the lottery, but these are definitely exceptions, and based on many of the stories we hear about these instant millionaires, I would argue that the price they pay comes after they win, not before  – and in the end I’m not so sure they’re the lucky ones.

What does paying the price mean? Well, it means a four letter word called w-o-r-k. Whatever your dream is, it requires dedication, sacrifice, and yes…. work. If you want to get that promotion at work it might mean getting some education, a certification, or just staying late. If you want to be something like a chef, coach, artist, musician, or anything that requires some kind of skill… you probably need to get training, no matter how good you are!

If you want better relationships – yes – you must work at it. After 24 years of marriage, I can attest to the fact that marriages and relationships take work. Sometimes lots of it.

I write this posting today because of comments I am hearing more often lately. People are saying – “well – I suppose this is as good as it gets” or “I’m getting used to the idea that I’ll never achieve the life I want”. No! No! No! Now, don’t get me wrong, sometimes we can strive for too much, at the expense of our peace of mind and happiness. However, if you have a dream… you have to work at it. If you run into obstacles… so what. How badly do you want your dream. If you aren’t willing to pay the price…. well, get used to the life you have, because… that’s as good as it’s going to get…. unless…. you go out and do something.

All the best…

All the time…

JT

Over the past two months, I’ve been reflecting on life and have done some housekeeping. It’s been interesting to say the least. Between the craziness of the global economy and the steady pace of life, it was a good time to slow down and just reflect. Robin Sharma calls this doing a clean sweep. Taking the time to get things off your “to do” list and to reevaluate your life goals and re-aligning who you are with what you are doing.

Work has  been steady, but I cut out a lot of extras. For the first time in a long time I am not preparing for a presentation, speaking event or class. I am not pursuing a degree or certification and have slowed down just a tad to reflect. The result? Clear focus and a rededication to living life in the moment.

Live life in the moment. Plan for the future, but live today like it will be your last.

All the best,

All the time…

JT