Archive for 2009

For the "Common Good"

Tuesday, December 29th, 2009

By Dean Whittaker

Coming together for “the common good” has long been one of the Holland/Zeeland, Michigan area’s strengths. Rather than asking ourselves the question,”What’s in it for me?” I found our community asking the question, “What’s in it for us?”

I have seen many instances of this “common good” over the years that I have lived here. A few examples include The Holland/Zeeland Foundation, the snow-melt system, the new International Baccalaureate Degree, and our hospitals. Further, our well-run municipal governments, the Macatawa Area Coordinating Council, our Chambers of Commerce, and our economic development effort, Lakeshore Advantage, also convey the sense of this collective well-being and of a caring community.

In his book “Out of Solitude, “ Henry Nouwen describes what it means to care. He says to really care is to enter into someone’s pain. It means to sit with a friend while they grieve the loss of a brother or sister, wife or husband, child or parent. It means to be there while they go through and experience the pain. Currently, we are facing some of the most difficult and challenging economic times that we’ve seen in our lifetime. A decline in our manufacturing base, retail vacancies, family stress, and layoffs has been our shared experience of the past few years. Together we share the pain, but together we also create the “common good.”

Through our community’s collective effort, several new initiatives have been launched. A few years ago, I witnessed 50-60 community leaders sit in what was then the Pfizer auditorium and hear an opportunity regarding the possible donation of the former Pfizer R&D; Laboratory facility to Michigan State University. Out of that community effort came the MSU Biomass Research Institute.

Diversity of thought is critical to new ideas and innovation. Our economic future depends on our ability to compete in a global market place of ideas. A continuing effort is underway to promote our community as an open and accepting community for new ideas. By showing that our community can have a conversation around controversial issues without fear of losing our moral compass demonstrates to the world that we have the capacity to openly discuss ideas, even those that may challenge our belief system. It lets those with view different from ours to share them and to provide a culture in which new ideas are valued, shared, and developed further.

The NewNorth Center for Design in Business was formed this year for the benefit of all of us. Its objective is to teach us a new way of thinking that will stimulate innovation in our products and services. This new non-profit organization is structured to provide West Michigan companies with unprecedented access to new concepts in design thinking in order to give them a competitive advantage as they compete globally. This innovative effort will help transform our local economy in ways we have yet to imagine.

Lastly, while attending the Lakeshore Advantage Annual meeting, I heard a story about how over the past year more than 50 people came together to put our best foot forward in the highly competitive effort to attract new business to our area, providing much needed jobs. While the outcome of that effort has yet to be determined, the fact that people in our community came together for “the common good” was evident in the selfless way in which each person played a role and gave of their time and talent that we all might live a more prosperous life.

Together, we will overcome the challenges of these economic times. “This, too, shall pass” by caring, sharing, trusting and risking. Let us all be mindful of sharing what we have for “the common good.”

Blue Ocean Strategy – For High-Impact Companies

Tuesday, December 29th, 2009

By Dean Whittaker

Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne is subtitled, How to create uncontested market space and make the competition irrelevant. The primary premise of the book is that one is better off innovating rather than competing. By using their value curve, a company can deduce what the client values and emphasize those elements of the product/service the client holds in highest esteem while reducing those that are less important to them. The key to a blue ocean strategy is innovation — creating the new and applying it to the market place. In addition, it is about maximizing the value the client receives by creating a high-value proposition through higher quality and lower cost.

One of Whittaker Associates best competitive advantages is our ability to create and innovate, which is why in the face of competition, we put the Blue Ocean Strategy to the test. Our efforts resulted in a new approach for targeting high-impact companies. This new process allows us to offer this dynamic database of fast-growing companies for 80% less than other firms, including the cost of data. We’re also using the most current data as data from the last couple years has become irrelevant with the rapid fluctuations of the economy. The net result is a high-value proposition for our client with better quality at a much lower cost. By using the Blue Ocean Strategy, we’ve been able to innovate and develop new technology to differentiate ourselves from firms imitating our old processes.

What if states, regions, and communities did the same? What would it take to create a Blue Ocean Strategy for a geographic place? Let’s first look at the issue of place. Does place matter in our digital, connected, innovation-driven, global world? Yes, I think it does, and here’s why. Place matters because people matter. People make the biggest difference from place to place. The skills they possess, the micro culture they support, and the world view they hold all contribute to the value proposition offered by a place. Granted, geographic location has cost advantages, but if cost were the only factor there would be no New York City, Chicago, San Francisco, Tokyo, London, Rome, or Paris. Among the people, it is their relationships with each other that propel a local economy. How supportive are they of each other, and how frequently do they ask What’s in it for us rather than What’s in it for me? How much do they focus on the common good by pooling resources to advance their place?

So as we approach the end of 2009, I want to wish our clients, partners, and friends a prosperous 2010. Share what you have, and remember, we are all in this together for the common good.

Smart Growth Achievement Winners

Tuesday, December 29th, 2009

By Jami Miedema

Earlier this month, the Environmental Protection Agency awarded four entities with the National Award for Smart Growth Achievement. This honor is to recognize remarkable approaches to development that promote smart growth through economic and environmental benefits. Within the realm of smart growth, four categories were examined: Overall Excellence in Smart Growth; Policies and Regulations; Built Projects; and Smart Growth and Green Building.

And the winners are:

Overall Excellence in Smart Growth: Envision Lancaster County, Lancaster County Planning Commission (Lancaster County, Pennsylvania)

Envision Lancaster County is a comprehensive plan to promote growth while maintaining the region’s extensive farmland. Investments will be made in the existing communities to provide more housing and transportation choices which will, in turn, protect the natural resources and direct growth away from the open spaces. The plan also outlines several other steps for enhancing the quality of life and preserving the distinct culture of the area.

Policies and Regulations: The City of Charlotte, Charlotte Department of Transportation (Charlotte, North Carolina)

The city of Charlotte has undertaken extensive plans to improve street design. Roads are being redesigned to improve traffic flow for vehicles, while bicycle lanes and pedestrian islands are being added. In addition, appealing streetscapes are being planted to create a scenic environment.

Built Projects: Parkside of Old Town, Chicago Housing Authority/FitzGerald Associates Architects/Holsten Real Estate Development (Chicago, Illinois)

Parkside of Old Town used several run-down mid- and high-rise towers and redeveloped them to create mixed-income housing, parks, shops, and restaurants. The residences and parks are joined by pathways and playgrounds that are located in visible areas to provide safety. The buildings also have community rooms, meeting spaces, and a fitness center.

Smart Growth and Green Building: Tempe Transportation Center, City of Tempe/Architekton + Otak (Tempe, Arizona)

Tempe’s Transporation Center has become the transportation hub of the city. The new building was constructed with sustainability in mind and includes a vegetated roof, solar shades, and solar hot water heaters, among several other green amenities. The multi-use facility integrates the city’s bus station, a bike station, and a light-rail stop and also has community gathering space and a public plaza. The Center replaced a parking lot that had an area of nearly 3 acres.

How does your community’s amenities and infrastructure stack up to these developments? Perhaps your community’s strategies could win you a Smart Growth award in 2010!

If you’d like to read more about these projects, visit the EPA’s website at this link: http://www.epa.gov/dced/awards/sg_awards_publication_2009.htm#overall_excellence.

2010 Economic Outlook: Will it be a recovery with jobs?

Tuesday, December 29th, 2009

By Vidhan Rana

Most economists agree that the economy in 2010 is going to be better than it was in 2009. But how much better will things really be? Will we see job growth? Will firms continue the massive layoffs that we saw in 2009?

According to some economists, the U.S. economy began recovering in the second half of 2009. However, the jobless rate has continued to increase. Some have called this a jobless recovery. The video below shows the progression of unemployment across the nation from January 2007, when unemployment was just 4.7%, to the most recent number available for October 2009 when the unemployment stood at 8.8%. As we go through every month in that time period, the increase in unemployment virtually spreads like a plague across the country.

The chief U.S. economist at Barclays Capital predicts that the economy will grow by 3.5% in 2010. Barclays predicts that the recovery will be similar to past recoveries with the American consumer pulling the country out of the recession. Economists at Barclays also believe that the recovery in the stock market since March 2009 and the low gasoline prices will boost consumer spending in the United States, which will drive the economy.

On the other hand, economists at Goldman Sachs predict a much more curtailed or subpargrowth. They believe employers will be reluctant to hire and tread carefully for most of the year. Unlike the classic V-shaped recovery pattern that we normally see after downturns, with growth accelerating as the economy recovers, economists at Goldman Sachs are predicting a more tapered-off type of recovery, where the rate of growth slows as the year progresses.

We don’t expect a V-shaped recovery; in fact we think that 2010 is going to be a bit slower in terms of annualized GDP growth than the second half of 2009, Goldman Sachs Chief U.S. Economist Jan Hatzius said during a recent speech in New York City.

After witnessing a near banking and financial collapse in 2008-2009, many consumers and regulators alike have doubts over the stability of our financial system. Though home sales and prices have picked up, many believe government incentives are the only thing holding those up. With the massive government spending and the resulting budget deficits, fears about inflation are at their highest level ever. Despite these concerns, Goldman Sachs identified the following bright spots in the economy:

The stimulus seems to be having its intended effect ” one reason the odds of a double-dip recession remain remote.

The U.S. housing market, a crucial element of the consumer sector, is showing signs of bottoming out.

The weak U.S. dollar is making U.S. exports highly competitive, giving a much-needed boost to American manufacturers.

With their reluctance to hire, businesses are clearly operating in a highly cost-conscious zone “ a reality that could bode well for corporate profits and for stock prices.

And the overall outlook for the U.S. economy is much better than it was 12 – 18 months ago, and actually continues to improve “ albeit slowly“ a reality that can feed on itself to further bolster growth.

About 60 to 70% of the U.S. economy is based on consumer spending. Even though the housing prices have stabilized and consumers have recovered some of the losses they incurred in their stock portfolio, the sticky job market will dampen economic growth. If we in fact witness a jobless recovery, economic growth may be much lower than the anticipated 3%.

Although the official unemployment rate hit 10.2% last month, the employment outlook is actually much worse. If you factor in part-time workers who’d prefer a full-time position, and people who want work but have given up looking, the real unemployment rate is actually a record-high 17.5%.

A panel of 48 economists surveyed by the National Association for Business Economics (NABE) in November 2009 showed gross domestic product (GDP) in the United States will grow by 3.2%, but job losses won’t bottom until the first quarter of next year. A previous NABE forecast said employers would add 12,000 to payrolls in that quarter.

Most economists agree that the recovery so far has been the direct result of the massive government stimulus package. However, will Corporate America take up the burden in 2010?

Small businesses, which account for about half of all the private sector jobs and have generated about 65% of the new jobs in the nation, are still hurting. In fact, 16% of small-business owners surveyed by the National Federation of Independent Business in November said they are planning to cut jobs in the next three months “ nearly double the number of those planning to add jobs.

A survey of 1,537 chief financial officers in the latest Duke University/CFO Magazine Global Business Outlook Survey showed that most large U.S. companies do not plan to increase capital spending in the near future. Furthermore, 56% of U.S. companies say they are still being adversely affected by credit-market conditions.

According to a Global Outlook Survey, most firms will take several years to return to pre-recession employment levels and some expect to operate with permanently reduced workforces. Unemployment could reach 10.5% before leveling off in the third quarter of 2010, further cramping consumer spending.

Based on consensus, the recovery in 2010 will not really recreate the jobs that have been lost over the last 18 months. Though things may improve, hardships are likely to continue, and consumers are likely to remain skeptical.

Mashups in “The Age of the Unthinkable”

Monday, November 30th, 2009

By Dean Whittaker

No, it is not a car accident but rather the combining of two or more ideas to create a new idea. Mashups are about the innovation that occurs at the intersection of ideas. A good example of a mashup is www.TED.com, in which a conference is held each year around the concept of “ideas worth sharing” and consists of ideas from the domains of technology, entertainment, and design. The creation of the iPhone is an example of a mashup that came about from a “TED talk” in which an MIT professor shared his idea of moving computer objects around on a computer screen with his hands.

What I would like to share with you this month is a mashup of two books that I read. The first, Living in Love with Yourself by Barry A. Elsworth, is about learning to take care of oneself, and the second is The Age of the Unthinkable by Joshua Cooper Ramo. It is about why the new world disorder constantly surprises us and what we can do about it.

Both books challenged my belief system. Living in Love with Yourself challenged my belief about fear. It focused on both the good and bad aspects of fear. Some of the good aspects are that it helps us avoid injury when we are in physical danger, it causes us to go slow when we are uncomfortable about something, it teaches us where we lack trust, and it shows us when we are working with a faulty belief system. Elsworth points out seven downsides to fear. First, fear separates us from ourselves and the knowledge that we create our own reality. Second, it paralyzes us, limiting our ability to respond. Third, it perpetuates the past by causing us to repeat it. Fourth, it is addictive in that it stimulates that production of hormones such as adrenaline on which we become dependent. Fifth, it accommodates the games we play with ourselves and others through manipulation. Sixth, it fuels our blockages and inhibits our creativity. And, lastly, it separates us from the Love in our life. So, my challenge is this: Do I believe in fear and thereby make it real (realize it), or do I believe and trust in Love? Can I see that fear is an illusion and Love is the only thing that is real? Can I forgive myself for having been lost in my fears and for the pain that this faulty belief system has caused me and others?

Similarly, In the Age of the Unthinkable, Ramo is also asking us to challenge our belief system. He strongly suggested that the way in which our foreign policy has been shaped is the result of our narrow thinking in which we focus more on the content rather that the context of what is happening in the world. As a result, we miss the intuitive shifts taking place and are constantly surprised when our direct approach is thwarted by a few rebels living in the mountains. Our view of the world and our belief system about it is only from our perspective. We need to learn to empathize as he did when interviewing those with another point of view. For example, the Hizb’allah leader who Ramo interviewed has a perspective that is hard for us to imagine, let alone accept. How can we hope to bring about a managed peace when we don’t understand their point of view or, more importantly, their belief system? “Seek first to understand and then to be understood” is one of the seven habits of highly effective people that we need to put into practice.

So, mashing these two books together, I realize I am being asked to examine my belief system and to overcome my fears so that I don’t bring about the very things I fear. To achieve the security I seek, I must help create a resilient country, community, company, family and self capable of absorbing and adapting to the rapid unpredictable changes taking place in the Age of the Unthinkable.

Diversity and Stability The Key to a Fast Recovery

Monday, November 30th, 2009

By Jami Miedema

As the country slowly emerges from our economic meltdown, many are wondering where we’ll find the first signs of economic recovery. Which cities will begin to feel the return to prosperity first? And what factors will play a role? Only time will tell, but Forbes has already attempted to answer these pressing questions.

Forbes compiled a list of 100 metropolitan areas, ranking them on their potential for a fast recovery from the recession. The variables that were taken into account were unemployment rates, gross metropolitan product (GMP) growth, foreclosures, home prices, and sales rates. Here are the top 10 metro areas poised for a speedy recovery:

1. Omaha, NE
2. San Antonio, TX
3. Austin, TX
4. Pittsburgh, PA
5. Harrisburg, PA
6. Dallas, TX
7. Rochester, NY
8. Houston, TX
9. Raleigh, NC
10. Baton Rouge, LA

Now you may be asking yourself what makes these areas so resilient, especially when a few of them haven’t had healthy economies in quite some time. The key seems to lie within their diversified industries and stable housing markets that haven’t experienced wild price fluctuations like other parts of the country. These factors have meant less home foreclosures, fewer lost jobs, and an increased GMP for some of these areas.

For instance, Forbes noted that Omaha, home to Berkshire Hathaway’s headquarters, experienced 1.3% growth in GMP (the national average is .8%) while maintaining a low foreclosure rate and low unemployment rate of 5%. Further, four Texas metro areas made the top 10 due to their booming tech industry, energy sector, and chemical manufacturing capabilities coupled with their steady housing market.

Another factor that has stabilized cities such as Pittsburgh and Rochester has been an increase in public-sector jobs. While this may provide a quick fix, the article stresses that this relief may only be temporary depending on future government spending.

While no area has gone unscathed by the recession, digging a way out may be easier and faster for the aforementioned MSAs, given their position relative to areas hit harder by the economic downturn. The lesson we can take away from the Forbes article is this: To secure your future in an economically healthy place, treat your site search as you would a portfolio investment look for diversity and stability.

Find out where your metro area ranked by visiting this link: http://www.forbes.com/2009/11/19/cities-recovery-unemployment-lifestyle-real-estate-top-ten-chart.html

Source: Levy, F. (November 2009). America’s fastest-recovering cities. Forbes. http://www.forbes.com/2009/11/19/cities-recovery-unemployment-lifestyle-real-estate-top-ten.html

The Sun is Shining on the Solar Industry Despite the Economic Slowdown

Monday, November 30th, 2009

By Vidhan Rana

If you ask any real estate broker or a site selection consultant today where some of the green shoots in the economy are located, renewable energy sectors will be at the top of the list. As the economy comes out of the recession, many brokers are reporting that they are busy as ever. However, digging deeper reveals that most of the activity is generated due to consolidation efforts rather than growth. The solar energy industry, however, is one of the sectors where growth is taking place.

The first 10 months of 2009 recorded 17 projects in the United States, with a total investment of $2.3 billion, creating 5,500 jobs. In 2008, we saw 29 projects with a total investment of $2.2 billion, creating 5,500 jobs. So investment in the solar industry in 2009 is expected to outpace that of 2008. The figure below shows the number of direct jobs created by projects in the solar industry since 2003.

Most of the recent growth in the industry is attributed to the favorable policies towards the industry from various local and state governments and funding provided by the stimulus package passed earlier in the year.

In September 2009, an old Ford manufacturing plant in Wixom, Michigan, began its clean technology makeover, assisted by Xtreme Power Systems and Clairvoyant Energy. These two companies are expected to invest $725 million in converting the Ford plant, creating over 1,000 new jobs. The Wixom Assembly Plant was one of Ford’s largest and oldest manufacturing sites, producing 6.6 million vehicles during its 50 years of operation. It employed about 5,000 during its peak and was closed in 2007.

In July 2009, PowerFilm, Inc., an Ames, IA, based thin film solar product manufacturer, announced plans to expand its current facility with an investment of $33 million. The investment is expected to create around 80 jobs in the community.

Such investments are not only delivering hope to communities like Wixom, MI, devastated by the plight of the auto industry, but are also bringing great high-paying jobs to communities all across the nation. The map below shows the locations of the 17 projects recorded in 2009. The size of the bubble denotes the size of the investment of each of the projects.

Social Media is Important, but Don’t Forget to Call

Monday, November 30th, 2009

By Todd Smithee

It seems like everything we read today emphasizes the importance of social media. We constantly read and hear about Twitter, Facebook, LinkedIn, and other forms of this new media. We are told about the importance of social media and how critical it is to create your own community. While I use social media, I want to challenge the level of importance being placed upon it. Think about it. You are a busy executive with potentially hundreds of contacts at different organizations. Are you really going to sign up to receive Tweets from each of these companies? I highly doubt it. So how much time should you spend on social media?

I would propose using the complexity of the transactions your organization is trying to generate and the size of your company as guidelines. If you look at the development of online sales over the last decade, there is little room for doubt that more and more complex sales are happening online without human intervention. Think back to when you purchased your first book from Amazon.com. It might seem like eons ago, but it was probably only ten to twelve years ago. Today, online commerce has evolved to the point where people buy cars, computers, and other big ticket items without human intervention. Another thing that has evolved in the last decade is email marketing. How many emails do you delete every day without even reading them? Probably quite a few if you are like most people.

Now, let’s assume your company generates complex transactions. If your organization is large enough to support a marketing team, you will definitely want to dedicate resources to social media. It is becoming part of the requirements of even being in the game, similar to websites and business cards. However, what if your company is smaller and does not have a multimillion dollar marketing budget? You will still want to dedicate some resources to social media, but be very careful to measure your results. It is easy to get excited by the latest technology and take off with it. Remember though, you are selling a complex product or service (or location). These complex sales are closed through relationships. Close relationships. Do not fall into the trap that you will Tweet (or email) your way to a deal. These large transactions require trust that must be built through live forms of communication such as phone calls, face-to-face meetings, and the old-fashioned business lunch.

So go ahead and take advantage of social media. There is a good chance you can generate and nurture some leads. Just don’t forget that complex deals are usually struck between people who know and trust each other. There is an old commercial that says it best: Reach out and touch someone.

Todd Smithee
616-897-4325
tsmithee@conrin.com
http://www.conrin.com/

Unfinished Business

Friday, October 30th, 2009

By Dean Whittaker

As I sat beside the hospital bed of a friend who had suffered a heart attack this week, I reflected on our friendship and what it has meant to me. Although we haven’t known each other a very long time, I felt a brotherly connection to him. We had gone to New Orleans together after Katrina to lend a hand to the local economic development agency. We are both sailors, have a keen interest in learning, and have a passion for understanding economics. When the prognosis was that open heart surgery would be required, we both became more concerned. Following a lengthy surgery (seven hours) and multiple bi-passes, he is now in recovery.

For me, this situation was another reminder of the fragility and brevity of life and the importance of taking care of unfinished business those relationships that were strained or broken through no one’s fault and often the result of fear pushing love from our heart. This month I reconnected with two former employees (and friends), each of whom left Whittaker Associates to start their own competing firms. Initially, when they left, I felt betrayed and hurt by their actions. But, as it has been said, Time heals all wounds. Eventually, I realized that they each did what they needed to do. Most companies have their origin as spin-offs from other companies. It is just painful when it is your company from which the birthing takes place.

It was gratifying to learn that the two firms are still in business (one for five years and the other for over a year). I winced a little when they mentioned former clients which are currently their clients, but that is to be expected too.

As my friend recov

Economic Development Marketing Master’s Webinar: Rick Weddle

Friday, October 30th, 2009

What is the surest way to advance your career?

Simple, learn from the best.

Not everyone has access, until now. The Marketing Master’s Webinar Series will bring you three of the very best economic development marketer, beginning with Rick Weddle.

Rick Weddle, CEO of the Research Triangle Foundation, NC will lead off the series. Mr. Weddle blazed trails that changed the way economic developers are recognized and paid. He held titles like President and CEO before almost anyone in economic development. He broke pay scale barriers with every new assignment.

Why? Rick is an ace marketer! He made economic development marketing sexy! Now, developers are regularly recognized by titles like President and CEO. Plus, economic developers are often paid more than they ever could imagine for a dream job.

Join us for a conversation with Mr. Weddle on economic development marketing past, current, and future. Learn from the best! Tuesday Nov. 17th, 2009, 1:00 pm 2:00 pm CST
Register Now

Mr. Weddle’s Bio: http://www.rtp.org/files/Media/rick_weddle_bio_2009.pdf

Series Information: http://www.blanecanada.com/webinars.html