Phil Hauck's TEC Blog

Wednesday, July 24, 2019

About the Power Outage This Past Weekend

We were out for 32 hours … from 11:30 AM on Saturday until Sunday evening.
It’s a wakeup call to how much we depend on electricity being there!
No hot coffee when I woke up.  Only cold water for washing dishes in the sink.  Couldn't wash or dry dirty, sweaty clothes.
When I walked into a darkened room, or went to the basement, I flipped on the switch, and NOTHING!
It was hot and muggy.  But all I could do was sit there … no fan to turn on, no air conditioner to turn on.
No computer … where I do much of my reading.
Couldn’t watch the British Open!!!
Freezing shower!  Quickest one I’ve ever taken.  No hot water.
When I went to bed, completely still.  No fan to get the air moving.  Muggy.
Then, the freezer food and refrigerator food began to melt/heat up.  Spent Sunday afternoon taking food to three friends who had room in their freezers.
And then, five hours later, the electricity went back on.

On FoxConn

I belong to the Independent Business Assn. of Wisconsin, a Milwaukee-based group, and at a recent monthly breakfast meeting they had as speakers on the current status of FoxConn two people from Mt. Pleasant, the municipality in which it exists.  One was the economic development manager, and the other was their hired, very experienced project manager for the FoxConn project.
I wanted insights into what is really happening there, and I think they provided it.
Keep in mind that FoxConn is already assembling TV screens there for a number of customers (not manufacturing them, assembling them).

       1.  Yes, they will no longer make the 65" TV screens there, but rather the ones up to 36”.  The market for the larger ones is slowing, and they already make them elsewhere.  (Note:  There currently are NO manufacturing facilities for TV screens left in the U.S.; this will be the only one here.)
       2.   Mt. Pleasant has purchased the 3,000+ acres that make up the FoxConn footprint … and FoxConn has first option on any purchases.
       3.  They are currently developing a southern 850-acre property, on which the million-square-foot slab has been poured.  They have one building up, primarily used right now to warehouse equipment and product.  They expect to have all their buildings up by late fall, and completed and ready for operation beginning in Fall 2020.
       4.  The project manager meets weekly with every major construction manager to review progress against the timetable.  It includes representatives of the interested state agencies:  DOT, DNR, etc.
       5.  The only water that will leave the property will be for storm and sewer drainage.  All of the water used in production processes, which will also include hazardous metals, will be processed in a self-contained facility.  Some of the materials will be re-used, others will be appropriately land-filled, and the water will be re-used.  The cost is $30 million for the facility, and about $7 million of annual operating expenses to do this.
       — All state and federal environmental regulations are being complied with.
       — Mitigation of wetlands was done at 2X the required amount.
       6.  He cited the incredibly impressive numbers regarding the amount of dirt moved, size of electric substations, and other infrastructure development.
       7.  State ubsidies will be provided only after the agreed numbers are in place.
       8.  While the cost of the subsidies is large, yielding a lengthy payback period, the amount of additional development in Racine County will be very impressive … currently estimated at $750 million.  Example:  Three hospitals are building along Hiway 20 near the project.  Property values are already increasing.
In other words, a lot more positives than we hear in the media.
One other thing:  Be aware that there is no longer a TV screen manufacturing plant in the U.S.  This will bring this type of manufacturing back here.  The rumor is that FoxConn has a huge contract with GM to manufacture at this facility the dashboard screens and panel screens for their cars.

On Succession Planning: It’s NOT Hard, so why doesn’t everyone do it?

One of my Vistage groups has formed a group of their OD/HR people, meeting semi-monthly to share ideas on topics of interest.
At the most recent one, I shared my frustration as to why every company isn’t formally, with a process, doing both Succession Planning and its related counterpart, Employee Development.
So, what’s the trigger to stimulate it being embraced, since it’s not the “obvious rightness” of it?  They said …
  •  Turnover … important leaders and future leaders are leaving.
  •  Outsiders telling the CEO the company isn’t competitive.
  •  Low morale/engagement based on Employee Engagement Surveys.
Another question:  What’s the process for getting Succession Planning started?  They said …
1.  Retain/Appoint someone to be take on administration/championing of Succession Planning as part of his/her job.
2.  Work with the Unit Mgr. and direct reports.  Analyze the current person in each position for “seeable” events like retirement.  Also, think about the organization structure 3-5 years hence … will expansion add additional positions, and when.
3.  Assign two people as the successors for each position.  Are two available?  Ask them if they are interested in being groomed/developed for that job.
4.  Knowing the Competencies needed for the job, at a performance level of 7-8 on a 10-Pt. scale, develop a Development Plan for each person laser-focused on reaching an acceptable performance level to be promoted to the job.  How many years away from “acceptability” is each person.
5.  At least semi-annually, the Unit Mgr. and direct reports meet to update the chart regarding each person, and to make revisions as needed.  If there aren’t two people in development, begin recruiting.

Some Selling Tips

Tony Hoslet, who owns a Sandler Selling Training franchise in Green Bay, spoke to a Training Camp session of the Packers Mentor/Protege program recently.  
      Sandler has an excellent, detailed, structured process.  Among his points:
  •  Set an Up-Front Contract
We can stop this conversation at any point.
"At the end, let’s decide on the next step:  1.  No next step.  2.  Maybe … I’ll get back to you by (date).  3.  Let’s keep talking … set a date."
Why I’m here:  I’m seeking your pain explanation, your goals, your vision, how you’ll decide on your next step.  We may or may not get to money, to your budget.
Also:  To learn your agenda.  What do you want out of this meeting?
•  Build a relationship … a meeting of shared values, including business values.  Transparency will be a very important result; otherwise, the prospect will hold back information.

Effective Performance Management

UWGB business professor Dianne Murphy, made this point about a key element of effective Performance Management to a recent Packers Mentor/Protege Training Camp session:
A KEY is more frequent use of Check-Ins with each of your direct report leaders, WEEKLY!  “I don’t have time to do it this often.”  “Yes, you do.  This is a key, too-infrequently-used component of Leadership.”
A Check-In is a 5-7 minute informal conversation that goes like this:
Ask:  What are you working on, with emphasis on your three most important objectives?
Ask:  How can I help?
Provide any coaching advice.
AND:  Tell me what and what each of your direct reports worked on last week?  It lets the person know you care and are noticing.
For more, go to:

On Politics: Rise of the Senior Class, Wage Stagnation Fake News

•  In less than a decade, the U.S. population under 30 will be majority non-white. (Source:  University of Minnesota research)
From Phil:  I saw this in spades during a recent trip to NYC … we were clearly a minority wherever we went, except expensive restaurants, where we were barely a majority, and the service crew was definitely non-white.
•  Regarding the mammoth Generation X and Millennial generations that will be voting in 2020, the rising tide, more progressive in their values and more Democratic in their voting habits.  Not completely true, notes a WSJ column.  The old are the future.  The largest increases in voting by age groups in the past few elections have come from those over 65.  In 2016, the number of voters over 65 out-numbered those between 18-34 for the first time ever.  In 2020, it will be by an even greater amount.   And they still vote in larger percentages than do the younger voters.
•  More Fake News:  The Myth of Wage Stagnation
In a WSJ article, a former U.S. Senator and a former BLS honcho said that the contention that wages have stagnated misrepresents the full truth.  Yes, BLS data show that production/nonsupervisory employee average hourly earnings peaked in October 1972 are were at the same inflation-adjusted level in March 2019.  But … the authors contend the effective buying power of the March wages is at least 70% higher.  It certainly feels like that.  5% of the difference is due to additional worker benefits, which comprise 30% of wages and aren’t counted in the earnings calculation.  Most of the rest is due to the higher efficiency and quality of what is bought at the same price.  There have been major increases in productivity value in air travel and the market basket of goods, an additional 27%.  Then there’s the greater value of new products like the smart phones and other smart technological gadgets, or of better medical devices and drugs, or of better houses, or cars, or ....  There are additional factors, too, that get warped by different methods of calculating price increases relative to value.  In essence, they say, what we get for the average wage today is vastly greater than what we got for a comparable wage back in 1972.

Quotes from TEC/Vistage Guru Pat Murray

Nothing happens without taking risks
People never resist their own ideas
Look into your assumptions when it’s not going right
To assume you know what’s best for someone else is insulting
Coaching without permission is abuse
The chief cause of problems are (previous) solutions
Most people can only see what they already know
If you want clarity, be slow to understand
One thing to remember in managing risk, never ever violate yourself