Archive for December, 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.