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<br /> CORNER OFFICE
<br /> • 4,0
<br /> iar ¢
<br /> - M
<br /> By MARK SHEFFERT
<br /> Winning = Innovation -Whining
<br /> HOW CAN MANUFACTURERS MAKE IT?
<br /> Asked to facilitate a roundtable discussion recently with 70 manu- process side—which is how to do it faster,
<br /> better, and cheaper. But so what! Nobody
<br /> facturing CEOs, I said I'd be glad to do it. I suggested that we call the should underestimate our ability to innovate."
<br /> I thought I had permanently alienated myself
<br /> session "Winning in Today's Global Manufacturing Environment." from this group by calling them whiners,but
<br /> the room was abuzz for the rest of the session.
<br /> The association president agreed,and when manufacturing in the federal government, Then guess what? I was invited back some
<br /> the day came, I began by asking the CEOs telling you what products to produce, how weeks later to pick up where we left off. Be-
<br /> what issues they are dealing with in light of many to make,and at what price to sell them, fore they all got on the whining bandwagon
<br /> the global operating environment. To my as the government does for farmers?" again,I'suggested that we make a list of the
<br /> surprise,they all stared at their shoes. Boy,that got their combative juices flowing! things out of their control.It was an exhaustive
<br /> • With more encouragement,one CEO mus- But I went on,"How many believe that it is the list,including items from the previous session.
<br /> tered up the courage to talk first. Soon they CEO's job to create jobs in America?"Nobody When we were done, I tore the list off the
<br /> were all discussing why they can't compete on raised a hand.I asked,"How many believe it's easel,ripped it into pieces,and stomped on it.
<br /> a global level because of excise taxes,foreign your job to make a profit for your company?" "There.These issues are out of our control,
<br /> exchange rates, NAFTA, the unpatriotic use Hands went up all around the table. and we're not even going to talk about them,"
<br /> of cheap overseas labor. One even said our I continued, "Isn't the average pay for I said. For the remaining three-and-a-half
<br /> country needs a secretary of manufactur- hours,we had a fruitful discussion about
<br /> ing, like the secretary of agriculture, to the thin•s wit '. • •• • 'a ud' •
<br /> protect manufacturing in America. The best innovators start marketing,selling,developing new prod-
<br /> After what seemed like an eternity(al- with an existing product rather ucts and applications, and making
<br /> though my watch said it was only 13 min- than free-for-all brainstorming. process improvements. We also dis-
<br /> utes)I said,"Time out.I think you've got cussed strategic alliances, partnering,
<br /> - the wrong guy to lead this discussion." and merging to leverage strengths, all
<br /> "What do you mean?"they asked. skilled labor in the U.S. about $2,200 per under the umbrella theme of inn�ovation.
<br /> I replied,"Well,when your president asked month, while in China it's about $100 per
<br /> what I thought our discussion should be month? Why should I as a consumer be la ow don't get me wrong; I have a heart-
<br /> named, I said `Winning in Today's Global forced to buy your products when I can buy ill felt respect for this group of hard-
<br /> Manufacturing Environment.'But there must theirs cheaper?What the hell is so unpatriotic working entrepreneurs. They simply needed
<br /> have been a typo in your invitations. You all about that? America is all about free enter- to hear the message that they will go the way
<br /> seem to think it said`whining'not`winning'!" prise,isn't it? of family farming and smoke-stack industry if
<br /> Many present were gray-hairs and no-hairs, "Can we conclude that in the next 10 to 20 they don't innovate.
<br /> as mature as myself. "Let me ask you folks years, the government is not going to inter- We had a productive session, but usually
<br /> some questions," I said. "Most of you will vene, and cheap foreign labor is not going to when the word"innovation"is mentioned,im-
<br /> probably not be running your companies in 10 go away,but that your responsibility to create ages of out-of-control brainstorming sessions
<br /> or 20 years. How many of you believe that profits will stay?"Heads were nodding. ' at off-site meetings come to mind. You know
<br /> our government will intervene to equalize for- "So let's stop this stinking thinking, and fo- the ones—everyone is supposed to think"out-
<br /> eign currency rates during that time? Or im- cus on what you can do instead," I said. side the box" or of"new paradigms." After
<br /> plement protectionist measures against unfair "America is the land of innovation. Recently a few days of brain frying, though,everyone
<br /> excise taxes?And do you really want a czar of we haven't always been the best on the returns to the same old routine. A few ideas
<br /> • JULY 2003 TWIN CITIES BUSINESS MONTHLY
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