Life at 7 Knots
By Dean Whittaker
Experiencing life at 7 knots (8.4 mph) for two weeks on a sailboat gave me a chance to ponder. So why cast off the dock lines, leave one of the best, if not the best, marina on the Great Lakes and make myself vulnerable to the uncertainties of wind and weather? Why not stay put and enjoy the hot tub, swimming pool, marble restrooms and showers, washer/dryer facilities and the friendship and camaraderie of my fellow “crazy” dock mates? The reason is adventure, going into the unknown, chasing the dream over the horizon, curiosity, overcoming obstacles and above all else, having fun. A world without time was created when two days into my annual sailing sabbatical, my battery-powered electric watch quit working. It was the perfect symbolic manifestation of my desire to get away and think, unencumbered by the usual day-to-day. Sometimes it’s important to slip our moorings and get away from the dock.
Meanwhile, back on the “hard,” I am getting used to driving at 70 mph and seeing the world zoom by without giving the flower along the road a second look. My melancholy about the end of the trip is waning as I return to my semi-conscious state to await the next opportunity to cast off the dock lines and head out for another adventure in the world of business and/or on the Great Lakes.
In one of those business adventures, I’m continuing my learning by attending the pilot design workshop conducted by the Design Academy, a program of Design West Michigan, a WIRED-funded experiment in the use of design by local firms as a global competitive advantage. Hats off to Lakeshore Advantage, one of our local economic development organizations, for introducing many West Michigan companies to the use of design as a competitive strategy.
My take-aways from the two-day session, in which several companies told their stories about the use of design in their product or services, were 1. design is a problem-solving process done within constraints; 2. design engages our emotions through our senses; 3. design can be a VERY effective tool in creating a competitive advantage (as several of the case studies proved); 4. everyone thinks they are a designer (and they are); and 5. the combination of the engineering (left brain) with the design (right brain) produces outstanding, globally competitive products and services.
The Whirlpool Case Study of the creation of the “Duet” Washer/Dryer illustrates many of these points. A collaborative effort of enthnographers, demographers, graphic designers, product designers, photographers, etc., the creation of the Duet relied on in-depth research for the basis of the design. But a folksy observation that someone had placed a washer/dryer on blocks in order to reduce back strain resulted in the crucial “pedestal” concept on the Duet. Further design work not only elevated the front-loading machine to an easily accessible level, but provided storage, a patented look, and even sound signals for the visually impaired. Applying design to the product also solved an economic dilemma. Until the advent of the “Duet,” only 5% of washers and dryers were purchased together. But 60% of Duets are sold as a pair.
Clearly, adventures can be had without leaving the desk, especially if we manage to unmoor our thinking from the everyday.
Time to Think
By Todd Smithee
The amount of “noise” in our lives is increasing at a staggering rate. Instantaneous access to information is not only available, but forced upon us. Email, cell phones, podcasts, text messaging, and news alerts not only interrupt our lives, they invade them. If we are not careful, simply managing that daily influx of information will become a new form of unskilled labor.
Managing data, forecasts, reports, and figures are important. You cannot run a business without critical day-to-day information. But expanding and growing into new markets, creating new products and services, and thriving in the new economy requires something more – time to think. Yes, that is correct: quiet, uninterrupted time to think. Increased profitability and lowered operating expenses can be achieved by analyzing reports and spreadsheets. And yes, in today’s competitive economy, efficiency is a must. But the benefits of increased efficiency are fleeting. What would have happened to IBM if it had simply continued to look only at operating expenses and production schedules? Would IBM have had any chance of competing with offshore competitors that manufacture computer hardware and peripherals? I think not.
To remain competitive and thrive in the long-term (and “long-term” is not what it used to be), you need to take time to get outside of the echo chamber of weekly and quarterly reports and look for opportunities to add new value and innovation for your customers, both present and future. To grow and thrive today takes more than constantly cutting cost and maximizing efficiency. You must innovate and bring new ideas to market. You do this by thinking, talking with customers, and thinking some more. Deep thinking does not necessarily have to take place in a library, office, or den. It can be camouflaged as an enjoyable activity, such as riding a bike, fishing, or going for a drive. Don’t feel guilty if you actually enjoy your thinking time. That is what an economist might call a “positive externality.” Quality thinking cannot be done, however, with constant interruptions from your cell phone. So be sure to take time to shut off the computer, cell phone, ipod, and all of the other electronic interference encroaching on your life. Take some time and really think hard and long about how you can do things better and differently for your customers--and yourself, while you are at it.
Website Users Study 2008
By Joel Burgess
This morning at the UEDA (Utility Economic Development Association) Summer Forum in Cleveland, Audrey Taylor, President of Chabin Concepts, Don Schjeldahl, Vice President and Director of Austin Consulting, and Mark James President of ED Solutions, Inc., lead a session entitled, New Standards for Economic Development Websites. The session aimed to provide insights about how economic development companies can make their websites more effective.
Chabin Concepts, Austin Consulting, and First Energy (Akron, Ohio) recently conducted a Websites Users Study to determine how site selectors, corporate real estate professionals, brokers, and other interested parties actually navigate the web to get their information. The goal of the study was to establish guidelines for developing a business recruitment website that meets audience expectations for content and functionality at all phases of the site location search process.
The study was implemented in two parts:
1) Exploratory user testing of four site selectors performing assigned tasks on economic development websites.
2) Online survey completed by 67 respondents, roughly half of whom were site selectors. All but two had worked on a business location project in the last year.
The final report is due out in the coming months; however, the executive summary can be viewed by clicking on the link below: If you are in economic development, real estate, and/or site selection you need to check this out - extremely useful information in building a web presence!
http://www.utilityeda.com/Summer2008/SessionThu1.pdf
Spend Smarter
By Jami Miedema
I never considered myself a frivolous spender. A daily chai tea from the corner coffee shop is a necessity, right? And the fast food meal that I grab every so often when I’m in a rush is only $4. But, with the increasing prices of food and gas piled on top of other monthly bills, some “essential” items are turning back into the perks they once were. Consumers across the nation are forced to choose between commodities as they receive “less bang for their buck,” so to speak. This can be seen in the Consumer Spending Report released last year by the Bureau of Labor Statistics that showed a decrease in entertainment, apparel, and services spending while healthcare, housing, and transportation spending increased significantly (2007).
Therefore, to keep myself on track as costs increase, I’ve created my personal budget. It was amazing to see how little expenses that cost a dollar here and a dollar there add up to be quite considerable amounts over a few months. My inexpensive morning tea could have set me back over $700 per year! I know that I’m not the only one who has squandered money away on frequent purchases of low-priced items. According to an article released by bankrate.com, the top ten money traps are:
- Coffee
- Cigarettes
- Alcohol
- Bottled water
- Manicures
- Car washes
- Lunches out
- Vending-machine snacks
- Interest charges on credit cards
- Unused gym memberships
Budgeting has opened my eyes to the wasted money that results from unnecessary spending. Items such as the aforementioned ones have the potential to set people back hundreds, even thousands of dollars per year. When that money could have been better used to make a car payment or for a weekend getaway, suddenly the $4 that I hand to the individual working at the drive-thru means something to me.
Although creating a budget may seem like a daunting task, it is really helpful to see where the money is being spent, and how it may be reallocated for a better purpose. Trust me…your wallet will thank you!
Sources:
Consumer expenditures in 2006. Bureau of Labor Statistics. Retrieved from www.bls.gov/cex.
Bankrate.com. (2007) 10 little expenses that add up fast. Retrieved from http://moneycentral.msn.com.
A Tutorial on DDAs
By
Jim Bruckbauer
Main Street USA and the downtowns all across North America are under a growing trend of revitalization and growth.
This trend has followed years of urban decay and mismanagement of city resources. During the 1960’s, many modern architects and city planning officials were influenced by a management style that stressed efficiency, and with that came a “renewal” of city functions. Buildings were created to stress function over design. Municipalities sometimes tore down vibrant civic centers, creating instead single–use buildings that lacked aesthetic value, along with highways that separated urban communities. This “progress” helped lead to the growth of suburban communities and the decay of our once-essential urban cores.
During the late 1970’s, some planners understood that these urban epicenters were in fact very vital to the synergistic, creative energy and economic growth of a region. But while our downtowns were recognized as important to maintain, aging infrastructure and the buildings that remained made that maintenance expensive. Private investment into downtowns rarely happened, since infrastructure and utilities added so much more expense to the equation. As business and residential areas moved to the suburbs, urban districts spiraled further into decay.
To address this issue, many states created a new legislative Act, allowing municipalities to create Downtown Development Authorities. The Authority would be a separate entity from the municipality and would use Tax Increment Financing to invest in the revitalization of downtowns.
Tax Increment Financing is a tax leveraging tool that “uses future gains in taxes to finance the current improvements that will create those gains.” To better understand this picture, imagine a piece of vacant land in an urban environment. The authority, or board, will agree to fund the necessary infrastructure improvements to the land if a private firm invests in the redevelopment of the land. The increase in value of the land (and surrounding lands) then generates increased tax revenues. This increase is called the “tax increment” and is “captured” by the Authority to be used to finance the debt issued, and also fund future investment and improvements to a predefined area. Often the investment is made to land where development would not otherwise occur.
Tax Increment Financing represents creative thinking and a powerful way to leverage the funds needed for proper reinvestment. I think future policy makers must be thinking about policies similar to ones used by Downtown Development Authorities and somehow tie them into future trends in land-use and even economic development. Are there ways we can leverage funding for projects that attract talent or just a solid return on investment? The people of a region need to get creative if they want to attract creative talent; otherwise, we’re left to watch our aging spaces, along with our old policies, lose their vibrancy.
High Gas Prices, Changing Economic Dynamics
By
Vidhan Rana
With gas prices hovering over $4 a gallon in recent weeks, almost everyone is changing their economic behavior and trying to save money in any way possible. We see more people riding public transportation, more motorbikes and scooters on the street, businesses talking about 4-day work weeks, people quitting jobs because of their commute time; the list goes on and on.
According to the American Public Transportation Association, in 2006, only 5% of workers commuted to work using the public transit system around the country, even though about 20% of households have easy access to buses and trains. This scenario is changing fast, though. APTA data shows that rides on public transit rose by 3% during the first quarter of 2008. Light rail systems, with a rise in ridership of 10%, saw the biggest jump in usage. Public transportation is widely accepted in big metro areas like New York, Chicago, Boston, or San Francisco, but with rising gas prices more people are going to use, not just approve of, public transit. This means city officials in smaller cities need to come up with a plan to deal with a sudden surge in demand for public transportation systems.
You may have noticed a number of brightly colored scooters whizzing on the streets. Scooters generally get between 75 to 120 miles per gallon, based on their weight and engine capacity. In terms of cost, you can find scooters as cheap as $800 and as expensive as $8000. However, regular name brands cost around $2000-$3000. Based on their mileage, scooters can pay for themselves in fuel savings in one to three years. With such numbers, scooters sales are rising phenomenally. Sales of name-brand scooters such as Honda, Yamaha, Vespa and Suzuki rose 24 percent in the first quarter of the year, said Mike Mount, spokesman for the Motorcycle Industry Council. This month, city officials in Columbus, Ohio, opened the city’s first scooter parking. They estimate that around 3,000 scooters operate in the city already, and the number is expected to rise. On the other hand, parking officials in Hartford, Connecticut, have banned scooters from public garages, stating that scooters are dangerous for riders and other patrons. These are certainly challenging times for city officials!
A recent Gallup Poll asked Americans to react to eight possible ways in which families could in theory cope with rising prices. In response, an overwhelming 81% reported that they have made more of an effort to find the cheapest prices for the products they buy. 73% said that they have cut back on spending on entertainment, recreation, or eating out. This is not good news for those in entertainment, recreation and restaurant industry and for communities that depend largely on its tourism industry. United Airlines recently decided to cut 7,000 jobs and decrease the number of flights it operates to fight higher fuel prices.
Some are using creative ways to deal with changing economic circumstances. Come August 1, Utah is instituting a mandatory four-day work week for most state employees. The change will apply to the state’s 17,000 employees, roughly 80%of state workers. Governor Jon Huntsman of Utah says that the state is expected to save $3 million in annual energy costs, in addition to the 20% saved in commuting costs by workers.
If energy costs rise further, or even stay at the current level, we are likely to see many changes in consumer behavior, leading to more changes from businesses and governments.
The New Look of China
By Karla Helvie
China is enjoying a position as a popular news and conversation item. Whether people are discussing the outsourced jobs, the importance of studying Mandarin, or the Olympics, China is on everyone’s mind.
As the U.S. and Europe are experiencing economic downturns, Asia, and particularly China, is still booming. One way this is evident is through the amount of mergers and acquisitions that are taking place in Asia compared to the rest of the world. While the world’s volume of M&A was down 30% the first six months of 2008, Asia’s rose by 5%. China has so far announced 133 overseas M&A attempts this year, compared to 164 for all of 2007. These deals are worth $42 billion, a number equivalent to all takeovers by Chinese companies from 2000-2006.
On top of the economic news, one is also inundated with information about the summer Olympics: which heads of state will attend the opening ceremony, whether or not the Chinese promise of no rain for that ceremony will hold true, whether the traffic and emission restrictions in and around Beijing will cut down on pollution for the month that the Olympics and Paralympics take place.
One reflection of China’s soaring economic growth and the Olympics being hosted by Beijing is the plethora of new buildings in China. As China is reaching out in the world, its cities are growing and expanding. This can be particularly seen in Beijing as the city readies itself for the Olympics. A new airport terminal has been created to serve a newly mobile society and is expected to receive 50 million passengers a year by 2020. A new National Theater has been constructed on the Avenue of Eternal Peace, a road lined with many Socialist landmarks and on which very few buildings have been constructed in the past 30 years. A new, very unique, building for CCTV, the state television authority, has also been built. Along with these three cultural buildings, a new Olympic Stadium and National Aquatics Center have been built.
One common theme that links these buildings is the discussion of public space in the city: should everyone be allowed to walk in the park that surrounds the Olympic Stadium (as the Western architect desires), or should a fence be built around it (as the state government desires)? The CCTV building, designed by another Western architect, is built with public space in mind: cafes and galleries are placed throughout the building. But, should the public roads that currently run through the CCTV site be shut down or remain? The line between the public and private sphere is often blurry, especially in China, and one goal of the architects of the new buildings is to help break that line and create buildings that can be part of a new society.
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