A Line in the Sand

Hilton Head Island is a great place to Vacation

It is however, a better place to live!

Perfect for drawing lines in the wide sandy beaches. Like from the example yesterday.

So, get back out your piece of paper... the one with the line down the middle, and the list of UDEs on the left side. The UnDesirable Effects of your existing efforts. Items like "We cannot increase production without adding more personnel."

Adding more people can be a good thing. But it also can destroy your small business. As Jim Collins teaches, it is the RIGHT people that are your greatest assets. The wrong ones are huge liabilities!

Cost Accounting

Recently, I had lunch with one of my heroes: Dr. Howard Meeks. Of Iowa State University. At one point, he interrupted himself to share a thought: "Reporting is not decision making." Cost Accounting (and I would suggest GAAP) was designed to report on past activities. Not make decisions, which by definition are based in the future. It is too late to 'decide' about choosing a course of action for events that have already occurred. Does that make sense?

Without knowledge of the items on the left side of your paper, I can tell you that more than one item, perhaps as many as 50% of the items (or more!) that you have identified as holding your business back from significant growth, are a direct result of cost accounting.

Example

Supply chain. Business owners that do not know better, select (or insist that the purchasing department select) the low cost provider. They demand three quotes, and then pick solely based on price. Almost regardless of the delivery time table.

Regardless of the past performance of that vendor.

How stupid

What decisions like this example have crippled your ability to respond to opportunities?

Next Step

Take your list of items. In no particular order. And go out into the shop. Or out on the store showroom floor. Ask the "front line" individual that represents your company to the customer. Or performs that actual work that gets shipped to your customer. Ask them to review the list. Ask them if there are any other UDEs that you did not think to capture. If they are secure in their position, and/or genuinely concerned about the company, they will be able to offer twice as many items as you.

W. Edwards Deming said ask the guy (or gal) on the production floor why a problem occurred. But only if you want the real answer. The truth hurts. Lies hurt more. Stop lying to yourself. Make a decision to make a difference. That is the simple part. But it is not going to be easy.

Until you can consistently do more with the existing info-structure, more sales would only push you into bankruptcy. Make the decision that you will never again layoff employees. Why should their families suffer for your mistakes?

Too intense?

Sorry. Jump to the next blog. I assume you are here because you need help. Some idiot (sorry) well meaning individual told you that a recession is coming. Or worse yet, they told you it is here already! Wrong. Better yet, so what? Simply decide not to participate.

Logic

IF you have the right people on your payroll,
AND you think holistically about your company,
AND you value your customers and their requirements,
THEN you have little to fear.

Will it be easy? Of course not. Simple? Yes. Easy? No.

I really do think it is time to buy my book, if you haven't already. Then, we can intelligently discuss your options.

Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Jeff SKI Kinsey. All rights reserved.

There is no Recession

Every Friday. Just like clock work...

I get Wally's "Three Star Leadership Letter" eBlast. This week, he explained the lack of a recession:

If you're a leader ... the way you present a situation to your people has a big impact on how they will evaluate it and deal with it. To quote Shakespeare's Hamlet:

"there is nothing either good or bad,
but thinking makes it so."

I oft tell the joke about the media predicting ten of the last two recessions. It is more like twenty-seven of the last two... and recall that a recession is when your neighbor is out of work. A depression is when you are out of work.

Three financial facts that I know to be true beyond a shadow of doubt at this moment in time:

1. There is no recession
2. There is no inflation
3. Richard Milhous Nixon is the most popular question on Jeopardy

How is Nixon a "financial" fact? When in doubt (if you are ever on Jeopardy), simply guess, "Who is Richard Nixon." Your monetary score will increase! But I digress...

None of my neighbors are out of work

Almost all of the requests that I know of for jobs, are from folks who have one that they no longer want. Recently, Yahoo! had a feature on folks "swapping" homes, as the market is so depressed. Would that work for jobs?

Speaking of Yahoo!

I am moving all my mail to my corporate email identity: ski@throughput.us in case the hostile take over happens. Plus, I started using gmail as it works much better on my iPod touch. But I am still way off topic...

You can quote me: There is no recession in America

It is simply a decision. Nothing more. Or less. Time to move on. Time to address the real problem facing your business.

Cost accounting

Look, we have one of the weakest dollars (in the world) ever. We should be exporting like mad! We should be sending stuff to Europe night and day. 'Stuff' is a technical term for "goods and services". Many years ago, my eCommerce business used programmers in New Zealand because the exchange rate was like forty-two cents on the dollar!

Why are we still exporting jobs overseas?

Cost accounting

Until you change your vantage point, and look at your business through the eyes of your customers (or prospects), you are going to be subject to the whims of the idiots that write headlines for a living. Sorry, editors are not idiots. I love mine like a sister (hi Thayer)... by the way, I do not take the time to have her edit my blog posts (as much as she would like to!).

Editors of the news get paid as a direct result of viewership. Recession headlines sell.

But you do not have to participate.

Lets do an Exercise

Consider drawing a line in the sand. Yes, that is much easier for us with an ocean in our backyard (well, to be honest, it is actually two miles away). So, take out a piece of paper. Draw a vertical line from the top of the page, to the bottom of the page, right smack down the middle of the page.

On the left, write down the word "DR" and on the right, "CR".

Oops. Sorry. We just made a huge T account (inside joke for all us bean counters out there!).

On the left, write "Internal" and on the right "External".

Now, consider this simple question: "If your business were to double in sales today, could you produce the required 'stuff' to meet this new demand?"

In others words, if you did $100k in sales in March 2007, and you do $200k in sales for March 2008, can you produce the necessary product to meet this demand? Without adding personnel? Without adding on to your store/building? Without buying more equipment? Without upgrading your computer?

Down the left side, right down all the roadblocks to doubling sales. List only the items that you control, or what we call internal constraints. Eli Goldratt gave us the term UDEs (undesirable effects). As in, we cannot double production of the XYZ Widget because our Mazak CNC lathe is already operating 24 hours a day! As in, both our inside sales reps are on the phone 7+ hours a day now!

You must identify your weakest link. Those that own my book know where this is headed. For the rest of you, more tomorrow.


Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

©2008 Jeff SKI Kinsey. All rights reserved.

Wednesday :: February 27th

The Big Red X Marks the Spot

Better project models while you wait? Not really. Some assembly required.

What is the value of knowing which link in your business processes will break next? Priceless? Absolutely. Unless you have given the circumstances surrounding managing projects in our matrix driven world as much thought as Tony Rizzo, why try to reinvent the wheel?

Eliyahu Goldratt gave us the vantage point of the "constraints oriented" mindset. First, in his first book "The Goal". Among his breakthroughs in the years following, the Critical Chain project management (CCPM) approach.

CPM (Critical Path Method) advanced the ability of teams to focus on the proper steps to create successes otherwise impossible. Think U2 spy plane. Critical Chain showed us that few organizations have unlimited resources. Our toolbox ought to reflect this fact. Tony Rizzo took CCPM to the next level... an order of magnitude (at least) beyond any thinking on the problems facing multiproject environments: Total-Matrix driven organizations. Like yours!

Do you have just one boss? Or, just one direct report?

Of course not.

So why (try to) manage your projects as if you do?

WEDNESDAY :: FEBRUARY 27TH :: 2PM EST

We all have the exactly the same problem: "We don't know, what we don't know." Hence I am pleased to offer an hour's worth of interaction with the master of all things "project".

Revelation in three parts:

1. Introduction to the Total-Matrix Planning process (PowerPoint)
   
2. How To Use TMx (a gotoMeeting session)
3. Free Fully Functional TMx add-in for MS-Excel (30 day eval)

Seats are limited, get yours: ski@throughput.us

Requests for private (and confidential) demonstrations will gladly be considered. Again, contact SKI and make your curiosity known.

Already using TMx, but struggling with the rigors of such a highly efficient process? One on one tutoring is available in 3.5 hour sessions via gotoMeeting. I am embarrassed to share the price of this offering (it is that low)... but I digress.

Have a company that needs turned around? TMx might just be the required catalyst.

Call me.


Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

SKI TV Infomercials

SKI TV Infomercials

• 1/2 hour (28.5min) Format
  
• One 60 second TV commercial Spot
• Two 30 second TV commercial Spots
• 25 minute Podcast (audio from Infomercial)
• Licensing and Royalties available

I need your content! SKI TV is looking for business gurus that want to share their expertise with the world via TV and streaming Video over the internet.

Call me for details. Reserve your production time now.


Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

TMx Demo slots available

Wednesday, February 20 at 9:00am EST

Thursday, February 21 at 2:00pm EST

Only Eight slots for each session. First come, first signed up.

Requirement: Hi-speed internet. Using gotoMeeting dot com, you will "dial in" to Tony Rizzo's computer for a one hour overview of TMx.

Contact me to register: ski@throughput.us

-ski

VLJ Show in Charlotte

Very Light Jets Show March 7 & 8, 2008

Sponsored in part by jetpool, LLC of Charlotte, NC. Last year's event drew over 600 attendees. Now that Eclipse Aviation has shipped over 100 VLJs and the HondaJet is nearing takeoff, the timing seems perfect to learn more about affordable personal or small business jet ownership.

I have added the event to my calendar, although it would appear that ownership is outside my budget this year. However, never say never!

-ski

P.S. The CEO of jetpool received a great write up last year. Check out this feature story.

Purple Curve Effect :: The Paperback

Trade Paperback version still available

As much as I love the convenience of selling PDFs, hard copies of my book are still available. In fact, recently, a customer of the PDF version bought a hard copy. I remember Dr. Howard Meeks buying the PDF after buying the hard copy. I asked, "Why?"

"So that I can search it faster!"

Great answer. I wish I had the PDFs to all my books. It would make up for Eli Goldratt not creating indices for his business novels.

So, just a quick reminder, PCE is still available in paperback. Let me close with this unsolicited review from a reader in South America:

"First let me thank you for your extraordinary book, Purple Curve Effect. I bought it through GMG ... with other books. Well, to make my story short, I dedicated myself to studying the other four books (Wrap Speed Manufacturing, Management Dilemmas, Synchronous Management, and Deming & Goldratt). Then took a three week trip and decided to pick up your book and read it.

"Well, I must be honest with myself. It is an extraordinary book.

"For me, in only two days my perspectives have change dramatically with your book. All the other four books are excellent books, but yours has made the most impact on me."

That is exactly why I took the time to write it! To make a difference in the world.

Need results?

What are you waiting for?

Purple Curve Effect — SKI's Throuhput on Command

-ski

P.S. As mentioned, it is available from Goldratt Marketing as well as amazon dot com...

P.P.S. Did I mention the foreword by H. William Dettmer?

SKI TV ramps up

gNooze (The g is silent)

During a conversation pitching SKI TV to a possible business partner, he remarked that I needed a news source for a successful TV channel.

So I found one: gnooze

This is both entertaining and informative.

-ski

P.S. Need to get your message professionally produced and ready for TV or the Internet? Call me: (330) 432-3533

Faster or Not

I love the business of business. It is rarely dull or boring. However, there is a penalty for taking on too much business. Or trying to rush through the business of business.

How do you approach business?

For me, it is all about relationships. When I launched eDivision dot net in 1998, an eCommerce business with the tag line, "The power behind the Submit Button", I expected my virtual organization would allow me the freedom to never have to meet face to face with a client.

Yes, one of the advantages of our lean structure was the freedom to eliminate the time consuming function of actually engaging the client in person.

How stupid!

Fortunately, light dawned over marble head, and I quickly realized that my business structure provided the freedom to spend almost all of my time with my prospects and clients. An international network of talent, bidding on my various projects, provided the perfect business model for true success. Then comes the events of 911... and I decide "life is too short"... and close eDivision.

Well, after five years of wondering around these United States of America on various motorcycles, spending winters in great places like Ft Lauderdale, Myrtle Beach and Britt, Iowa, I have rejoined the hunt. The hunt for business nirvana.

Success

Due in large part to the connection of Constraints Management gurus that I had met during my adventures at the helm of TOCreview magazine, one of the business ventures funded by eDivision in 2000 and 2001.

Last night one of those gurus, Tony Rizzo, called with a business idea. Tell me that you recall he is the world's leading expert on Project Management. Rizzo was the first to implement multiproject Critical Chain Project Management. His TMx offering could save your business millions, and because your gross annual revenues might only be a couple million dollars, you have already dismissed this fact.

Shame on you

But I digress. The point I want to make, and that I made to Rizzo last night (and many times to him in the last six months), is simple: "Its relationships." Period.

Often we are so close to a given situation, that we cannot see the trees for the forest. We get moving, and moving faster and faster, stuff happens and we loose focus. We loose our ability to maintain focus or to properly select the best focal (or leverage) point.

Shame on us

Today, I seek to help one person at a time. Just one. Yet your reaction may be, "How could that work?" The money you can make from helping just one person, is huge. In part, because everyone you know, knows at least one other person. Every business in America is part of a much larger system. And every country, part of the world's system.

There is an expression in sales that goes something like,

"I do not want to close every sale, just the next one."

Which does in fact imply that you really do want them all! Your answer is simple, in fact they even made a movie about it: Jerry Mcguire. The beginning of the movie shows the creation of a great mission statement: Less is More. Cuba Gooding, Jr. took home the Oscar for his "Show me the Money!" character.

Life is simple. (I did not say easy.)

Want an Oscar? Focus on the money. One client at a time. Solve just one problem. For one person. In one business. And within 90 days, you will be amazed at your throughput. Which I define as "more money in YOUR pocket."

Need help?

Download TMx. Then call me. Do I expect everyone in the world to call? Of course not. I just expect you to call.

Enthusiastically,


Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC
(330) 432-3533

P.S. I had to pass on Rizzo's latest offer to participate in a new adventure. As I explained, until TMx is used in every business in America, I still have a lot of work to do...

Levers, Vantage Points and Advantages

"I cannot believe this post is two years old!" Talking (via email) with a friend the other day, we started talking about supply chain issues... and like I oft do, I searched my blog for anything on suppliers. Sure enough, this great post by H. William Dettmer popped up. It helps to have friends smarter than you are... makes you look like a genius. Thanks Bill. Concept of Leverage -ski

TMx :: Part II

Tony Rizzo presents TMx

SKI endorses TMx

Throughput.us LLC requires TMx

Disclaimer: Tony Rizzo is a client. I profit as a direct result of each and every copy of TMx that is licensed. Forever. And when big brother buys TMx, I get my pound of flesh, without any blood loss.

Now that the small talk is out of the way, lets get down to business.

Last week (actually January 31st) I was in Las Vegas for the surfaces2008 event. Earlier in January I was in Minnesota. Now, write this from Ohio. And tomorrow, the good Lord willing, I will be back on Hilton Head Island. But I digress...

Show of hands, how many of you know the name Warren Tyler?

He was one of the reasons that I braved yet another shoeless adventure and over 5 hours of flight (each way).

If you have been in the flooring business for more than about two minutes, you should. And, if you are in a retail environment involving sales to consumers, you should. Tyler is good. As good as Zig Ziglar, in his niche. Almost as good as me. And, he gets it!

Including a reference to Good to Great by Collins, and his "the right people" being your greatest asset assertion. But I digress.

One of the many topics during Tyler's presentation: tools. Giving your team the tools that they need to be successful. But more than just successful, effective. Are you sitting down? This is profound:

"Does your team have the proper tools for success?"

No small matter. Not a random thought. Not for the faint of heart.

Somewhere in the recent past (last few days or weeks), I commented on a time study that I did many years ago for a manufacturing firm. Two operators on basically identical machines, performing the same operation on the same lot of material. One operator completes the task in five "turns" of the material. The other just four turns.

One operator had better fixtures.

Better tools.

And so it is with TMx.

If you work with projects, in most any enironment, you need Rizzo's TMx. Work from an Apple Mac? Buy the cheapest PC you can find, get MS-Excel and download TMx.

Recall Stephen Covey? And the lumberjack story? If not, basically, it talks of the need to stop in order to sharpen your saw. You can only go so fast for so long. No matter how good your skills. The race does not go to the swift. It goes to the smartest, swift contestant.

I guarantee that if you download the 30 day evaluation copy (a fully functioning copy) of TMx, schedule a free one demo session with Tony Rizzo, and spend just eight (8) hours learning how to use TMx, you will save at least one full 40 hour week on your very next project.

YES. YOU WILL SAVE ONE FULL WEEK!

Or your money back.

Did you catch that? You are going to download TMx for FREE. Schedule one (1) hour with the brightest mind in the world of projects for FREE. And tackle your next project with an unfair advantage. What is the risk?

Yes, for the Eli Goldratt fans listening in, this is all about local optima. But it is more than that, it is your ticket to that corner office. The one with the fake rubber tree. Membership in the local Country Club. Court side seats at the next NBA game that your company supports.

Better yet, let me ask a simple question:

"What is going to take, to get your attention?"

What is it going to take to get you to download TMx?


Jeff 'SKI' Kinsey, Jonah
Throughput.us LLC

TMx: Bullet Proof Project Plans

P.S. Please be sure to share your success stories.

P.P.S. If you are somehow unaware of Tony Rizzo's "Total Matrix Planning Process" and its use within TMx, Rizzo offers half-day sessions (3.5 hours) that are one on one, web based, for just $1000. In other words, get the exact training that you, and you alone need to be successful.


(c)Copyright 2008 Jeff SKI Kinsey. All rights reserved.

Mazak Oriented Job Shop Wanted

WANTED: Machine Shop

I am looking to purchase a Job Shop that is equipped with Mazak CNC Turning and Machining Centers. Owner may be looking to retire. Or facing a mid-life crisis.

LOCATION: Prefer South Carolina. Would consider Las Vegas or Ft. Lauderdale.

PRICE: Must be willing to sell for less than $1 million USD.

CRITERIA: Must be more than five years in business. Profitable in calendar year 2006.

If you are a principal, please contact me directly. I am not interested in talking to business brokers representing clients with businesses for sale. Life is too short.

I made the mistake (once, and only once) of buying a home through a realtor that was not the listing agent. What a mess. I understand that over 80% of the homes in America get sold that way. What a shame. But I digress.

Of course, I have looked before. And have yet to close on acceptable terms.

If you are a motivated seller, then lets talk. Call me.

Jeff 'SKI' Kinsey
(330) 432-3533

Eli Schragenheim post

Clarke Ching caught up with one of my heroes:

Eli Schragenheim

Short. Sweet. But golden.

-ski

Here are the links to the MP3 podCasts:
[Part One]
[Part Two]