SKUs

I used the term SKU in an email today to a client.

The response I got was "SKU?"

It was my mistake for using the seller's term. I should have simply said "item number." I got to thinking more about that. Maybe we should be more precise and always use the term SKU. "Item number" to a customer means that it is something the customer wants. Maybe the customer does not know what they want and so they do not know the item number.

I was at the annual Convention and Trade Show of a long running organization. There was an open Board meeting. It made sense as it was a non-profit organization. I could see a private company restricting attendance to stockholders.

At this Board meeting there was a presentation by two of the Executives that would depict the firm as having three distinct parts. One would be the annual Conference and Trade Show. Another would be the leading fee for service product group. The third would be everything else. There was even the suggestion that there be three separate legal entities. I watched the Board members. Zero interest. And both of those executives are now departed from the organization. Plain and simple the first two parts are the cash cows that keep the third one, and all of the bureaucracy, employed. The mission was buried.

What if each if us, individually and in our businesses, had defined SKUs for what we do?  We would not call them "item numbers" because our customers would not have to know them. An item number is something that provides us money. A SKU is something that we must define and give. Yeah I know. It's a fine line. It does not have to be a fine line.

That organization could see fantastic growth if it formed the three organizations. The surplus money from the first two parts would allow them to have some real growth. Everything in the third part would have to learn to perform. The second and third leading fee for service product groups have no reason for being. Under the present model they have no need to perform. They get their share of the total budget and can hide out. Top management does not care because their salary and bonuses are justified by having a large staff.

That organization is imploding. It is not just the decline of total revenue. Adjusted for the value of the dollar over time, it is rapidly going downhill. It stays alive with annual layoffs. The ones laid off are often the only real producers. Others are simply inventory that can later be dumped. They are like sand bags on a balloon. When there is a need to regain altitude they are cut loose. That organization has a ways to go yet like the buggy whip manufacturers it will eventually disappear.

A feature of Cowboy Safety is to make sure that the strategies are black and white. Strategy parts either achieve the mission or they do not. The operation model can reduce overheads by eliminating or outsourcing indirect functions. Initially it is done with tweaking the bookkeeping systems. Budgets are structured to the mission. Users begin to see what can be reduced and what needs to be increased.  Eventually the organization becomes known for its work and not for its bureaucracy.

David Sneed

Semi Crash on Black Ice

A good reason not to drive in the left lane. Watch this semi cross the median when it hits black ice.

Many states now have made it illegal to drive in the left lane on a high speed highway unless passing or making a left turn such as a left exit or on a high speed non limited access state highway where there are legal median access turn areas.

Wyoming does not yet have the law. Colorado defines it as any four-lane highway with a speed limit of 65 mph or higher unless passing or making a left turn. I have noticed many states now have signs about that law and also about moving over when approaching any emergency or maintenance vehicle on the shoulder.

Another reason not to drive in the lefty lane is that head-on crashes occur in the left lanes of divided highways. Someone driving the wrong way, impaired or disoriented elderly, may think they are driving to the right. They will in fact be in your left lane.

A good rule at night is not to drive in the left lane if you cannot see any taillights ahead of you. During the day time cresting a hill in the left lane can be bad on a divided highway.

On any highway looking ahead as far as possible is always a good idea.

David Sneed

Facebook is the Antithesis of Cowboy Safety

The value of Facebook has its origin in two fairly well-known quotes: 


"No one ever went broke underestimating the intelligence of the American public." H.L. Mencken. 


"If you want to get rich, you start a religion." L. Ron Hubbard.


Who would have ever thought that in 2012 it would be possible to get a billion people to devote large amounts of time to writing private details of oneself or to reading private details of others? Who would have thought that a billion people would openly allow themselves to become a product? 


Just today I was explaining to one of my daughters the effective function of "like" in Facebook. Yes it is to give assurance to someone who needs assurance. It is also a way to get data for the purpose of soliciting advertising. 


Facebook may not have set out to become a business, and certainly not one where the raw material has no cost, yet it has certainly become one. Not only is it a business it is now one where the stock is publicly traded. The only thing that could be better would be if it was a religion. And it has done that. 


Facebook has become not just a business but a religion. It is a religion that is the antithesis of Christianity, Judaism, Islam, Buddhism and possibly all others. Salvation comes from the sacrament of daily communion with self and with telling the world about oneself. All written in digital format in the eternal cloud, heaven if you will. No more meditating and seeking a Higher Power other than self. Not only does one not have to die to self, on Facebook there is honor in living to self.

Cowboy Safety is not a business or a religion. Yet Facebook is also the antithesis of Cowboy Safety. Cowboy Safety is a way to protect oneself. Ultimately Facebook is a way to destroy oneself.


Facebook is the newest form of the religion of Narcissism. And with an altar that is a far better one than a mirror. PsychCentral says that "at the core of extreme narcissism is egotistical preoccupation with self, personal preferences, aspirations, needs, success, and how he/she is perceived by others." Facebook exactly. Egotism is egoism with a "t," talking about self. 

Facebook, the religion, is only a threat to the religion of materialism. The other religions have embraced narcissism and many of their churches are on Facebook. As a threat to materialism, Facebook is a timely aid to a society that may have had too much growth. 


Who needs to make money and accumulate money when there is no longer a need to "keep up with the Joneses?" Facebook is a much better alternative. 

Facebook is a democratic religion. No longer does one have to be wealthy in money and make big donations, endow chairs at colleges, or to fund buildings named for oneself. The only wealth needed to build monuments to self in Facebook is time and that asset is more plentiful among those who lack money. In turn that time is converted to money for the stockholders of Facebook the company. 


I am not running down Facebook. Facebook does not create narcissists. Facebook provides the place for worship of self.  It has done a great job of that and will do it even better in the future. Maybe it is good that we know how many narcissists there are.


David Sneed

Cowboy Safety Idea from Mark Zuckerberg

Startups today are not like in the past. Here is a comment from Mark Zuckerberg of FaceBook:

"An idea today can be implemented right away. There is a fundamental protocol for a business that is for the most part standardized."

New development today is in the arena of how to plan for a business to self-finance with only a small amount of seed capital or maybe none. Flow-through taxation is a disadvantage with the new type of businesses.


David Sneed

Salvation Army Thrift Store Cheyenne Wyoming

The Salvation Army Thrift Store in Cheyenne Wyoming closed about two years ago. I don't have the details but I believe that the labor cost was greater than the revenue. Most o=if not all of th staff was paid. There may also have been some other reasons but a net loss is a good enough reason.

The store is back in business with a different operations model.

The two buildings are owned free and clear of debt. Possibly the only fixed cost is insurance on the buildings.

The items sold are all donated. The staff is all volunteer. The only variable cost might be the utilities.

For all practical purposes the net profit is equal to the revenue.

Because of limited inventory the store is now open one day a month. As donations pick up, rather than have "percent off sales" the store can add days that it is open. This part is only my speculation. It is true that the operation is more sustainable.

That store now is similar to an internet experience or information business. Once the website is set up the incremental cost of a sale is zero.

The lesson to be learned is that if the economy has a no growth recovery, competitive advantage will come from new operations models like the Salvation Army Thrift Store.

In the late 60s when supermarkets went to Sunday opening and then 24/7 the others had to do the same for competitive reasons. What if for competitive reasons shortening of hours was necessary for survival?

Sustainability may stem from reduced revenues rather than from growth. Minimization of fixed costs will be necessary. There will be reduced risk of all kinds and related reduction of expenses.

Shortening hours is only one way to reduce revenue and costs. There are some other options. We are dealing with them on a case by case basis. The American way of work is unfortunately being forced to change.

David Sneed

Cowboy Safety Design Process by Richard Rodgers

Cowboy Safety Design Process by Richard Rodgers? Do you mean the Richard Rodgers of Rodgers and Hammerstein? Yep!

Here it is.

"Our first meeting on the project that eventually became known as OKLAHOMA! took place at my home in Connecticut. We sat under the huge oak tree and tossed ideas around. What kind of songs were we going to write? Where would they go? Who would sing them? What special texture and mood should the show have?

We had many such sessions until we became thoroughly familiar
not only with every aspect of the play but with each other's outlook and approach as well. Fortunately we were in agreement on all major issues, so that when we finally did begin putting words and notes on paper - which didn't occur until we'd gone through weeks of discussions - we each were able to move ahead at a steady pace.

The first problem was, appropriately, how to open the show. We didn't want to begin with anything obvious, such as a barn dance with everyone a-whoopin and a-hollerin'. After much thought and talk, we simply went to the way Lynn Riggs had opened his play, with a woman seated alone on the stage churning butter. For the lyric of the first song, Oscar developed his theme from the description that Riggs had written as an introduction to the scene.

This was all Oscar's poetic imagination needed to produce his lines about cattle standing like statues, the corn as high as an elephant's eye, and the bright golden haze on the meadow. When I read them for the first time I could see those cattle and that corn and bright golden haze vividly. How prophetic were Oscar's words I've got a beautiful feelin'/Everything's goin' my way.

By opening the show with the woman alone onstage and the cowboy beginning his song offstage, we did more than set a mood, we were in fact, warning the audience, 'Watch out! This is a different kind of musical.'"

I cannot imagine what the play would have been like if Rodgers and Hammerstein had used the technical approach used by most safety plan designers.

David Sneed

How to Build a 30 Story Hotel in Two Weeks

This hotel in China was built in 2 weeks

365 Days in the Life of a Bicycle in New York

If a picture is worth a thousand words, then  365 pictures must be worth 365,000 words. thought that this was a neat safety graphic. Think through what that could mean. Parts being stolen is not the issue. Think in terms of time and change.

B. Schackman & Co, Favors, Novelties

B. Schackman & Co, Favors, Novelties was founded in 1898

http://www.shackman.com/

New Challenger Amateur Video has Surfaced

Here is a new video that has surfaced of the Challenger disaster. Basically what had happened was that the weather was too cold and there was a problem with a large o-ring. There had been warnings that the flight should have been postponed.

It is interesting that the people watching are not aware that something has gone wrong.

At the time this happened I was attending the White House Conference on Small Business. President Reagan sent a message to all the state meetings to please continue the work that day.

David Sneed

Old Vinyl Tarps

Freitag from Switzerland has developed some good sustainable ideas. They take old vinyl truck tarps and make handbags and computer bags. This year their estimated sales are $32 million (in US currency.)

Freitag is a good example of safety through quality.

It is interesting from an historical standpoint that from the outset they were focused on getting the job done not on the methods used. They washed the tarps in their bathtubs at home. Anything capital intensive was approached from actual labor savings and not from some kind of best practices that required large initial funding. Management grew not from a business plan hierarchy but from actual need when it was needed. Too often businesses build a management team before building product.

1. No advertising. Word of mouth.
2. No lifestyle change as business grows. Modest salaries for owners.
3. Minimal loans. They started with $2,500 from savings for an industrial sewing machine.
4. Niche market. Urban professionals in the creative industry.
5. Experience marketed: "People seem to appreciate the patina of wear and feel good about buying something recycled."
6. Old rented facility
7. The market allows labor-intensive products with high cost Swiss labor.
8. They do not own most of their retail distribution though they do have nine stores.
9. Biggest barrier: access to raw material. They have three people always looking that includes hanging around truck stops.
10. The two owners are also the Board.
11. One owner focused on business;the other on concept.

David Sneed

Cowboy Safety Choices

This photo was taken during the snowstorm in Lincoln, Nebraska on February 4, 2012. Up to 20 inches of snow fell. There were many vehicle crashes. Smart drivers stayed off the road.

Is a bicycle a valid transportation alternative in a snow storm? I really wish the photographer. Jacob Hannah of the Journal Star had gotten the rest of the story about this bicyclist.

I suppose that ideally we should watch weather reports. If a snow storm is coming we should plan how we could avoid being out in the storm at all.

David Sneed

Amateur Video from Sinking Costa Concordia

The link below is to an amateur video from the sinking Costa Concordia. The video has been made private for some reason. I am leaving the link in case the owner makes it public again.

The video shows water coming down the carpeted stairway in some lobby area. A lot of water but only an inch or so deep. The ship is listing. People are running around in all directions and screaming. There seems to be no crew member present though this location would seem to warrant one. People are reacting to abnormalities rather than calmly looking for a way out. Ultimately the record shows that most did get out so the conditions there did not result in lack of egress.

I can identify with that photographer taking the time to make a video. Once I was at a birthday party for one of my youngest son's friends. It was at a lake and was a cook-out camp-out. The birthday boy had a large gash in his leg. His leg was cut to the bone but there was no bleeding. The child was screaming to be left alone to die. There was panic. There was no plan. When some calm set in I told the father how to get to the nearby hospital. I had a first aid kit yet elected to not clean and dress the wound in this case. All worked out well.

There was a recent 28 second security camera video of a mugging at a store entrance. A woman comes out of the store with her bags and was talking on a cell phone. A man comes up at high speed, pushes her, and knocks her down. There is some resistance and she holds on to her purse. The man does get her cell phone. Rapidly he is gone. She was lucky. She could have been knifed or shot. The distraction of the cell phone could have cost her life.

Does your safety plan, business or personal, formal or informal, anticipate the conditions that could occur in an emergency?

Most formal plans are laughable and most informal plans do not exist. If someone can get to the locked filing cabinet on the third floor how will they read it if the power is out and there is no nearby flashlight?

Are you secure knowing that you have a cell phone in your car for an emergency? If your car rolls a few times, is upside down in a creek, and you are having from your seat belt will your cell phone be available? Or is your cell phone location where it is most accessible for expected calls during normal driving?

In a cartoon one time, I believe it was Doonesbury, there was discussion of a government safety plan. Federal employees were to report to the nearest post office. A hand was raised. "What if the post offices are all gone?" I thought of 9/11 when the New York City emergency response center was located in the World Trade Center.

The Cowboy Safety solution is to ask What would Clint Eastwood do in his western movies? Forget about the hotel exit plans that would have you crawl down a hallway when your room is on the first floor and has a sliding glass door to the outside. The hotel cannot tell you about doing that or the law would make them build a sidewalk and have a wheelchair ramp. It is better for them that you be found dead of smoke inhalation in the hallway.

Don't get me started.

David Sneed

Explosion on Italian Ship

Rescuers in Italy have blasted four holes into the cruise ship that went aground and capsized on February 13. Divers have had increasing problems with safe access while searching the ship for survivors and the dead. This video shows the blasting of one hole. It is still unknown what will happen with the ship. The fuel will be removed from 17 tanks over the next two to four weeks. A computer model will be made to see if the ship would break in two if it was righted. The worst case scenario would be to have to cut it apart.

David Sneed

Au Pair Care

Au Pair Care is an example of a business that is concerned about safety and makes it a critical part of their business. Au Pair Care provides affordable live-in child care services. They found that safety is the moist important concern of their customers.

Au Pair Care has created a mission critical product called "Safety Care" and has trademarked the name. There is a four day training program for au pairs upon arrival in the United States.

The au pairs receive American Heart Association First Aid and CPR training. There are many first aid programs. American Heart Association and Red Cross are especially good because they have so many trainers around the country that consistent refresher programs and first time programs are available just about anywhere in a classroom setting at a reasonable price.

The au pairs receive driver training and household safety training.

Au Pair Care is a member of the National Safety Council. Members of the National Safety Council have access to plenty of material on a variety of safety topics.

What I have liked most about the National Safety Council is their library. I have spent plenty of time in the library in Itasca researching various subjects and have duplicated many of their publications in my library.

David Sneed

Woman Shoots and Kills Intruder

There are several points of note in this incident in the following video.

1. She had weapons for protection and knew how to use them.
2. She was aware of a possible stalker.
3. She called 911 for help with the specific situation.
4. She took action in a pre-emptive way.

There could be debate about alternatives. Could she have shouted through the door and told him to go away? He might have ignored her and been better prepared for when he came in the door. If he had left he could have planned a way to catch her off guard in the future. We do not know his plan but we do know that he was coming into the house without permission. Her only real choice to protect herself and her child was to shoot to kill.

Some might say that he was not equally equipped as he had only a knife. An intruder with a knife can often overcome someone with a gun. It is a matter of timing. There are certain steps needed with a gun that are not needed with a knife. This woman did not wait for him to actually come after her. That took place when he came through the door. She acted defensively. 

For home defense advance preparation is needed along with an understanding of different weapons. Handguns are not the best choice. For one they can fire through walls of houses and kill or injure an innocent person several houses away. This woman used a 12 gauge shotgun. A 20 gauge might be better for home use. Firing even a 20 gauge down a hall way is not likely to miss. Six shots from a handgun might result in no hits.

It is truly amazing that in the name of safety there are bans on weapons with no plans of what to do if someone comes in with a gun or other weapon with intent to do harm.

I am not a gun nut but do know realities.

David Sneed

On January 3, 2012 Massachusetts police cited their Lt Governor for speeding 108 MPH in a 65 MPH zone and for not wearing a seat belt.




Several years ago the head of the Massachusetts State Police was stopped for speed in excess of 100 mph on the Mass Pike west of Boston shortly after midnight. No action was taken until the next day when the newspapers asked questions. The Governor finally ordered the state policemen who stopped him to issue a citation for whatever he thought was appropriate and the Governor suspended him for two weeks.  Colonel Henderson had been at a retirement party and said he only had two beers all evening.

In other incidents a state official was doing over 100 in a 55. Another one was stopped and when  he got out of his car, fell and was too drunk to get up. Another was drug k and driving the wrong way on a divided highway.

Maybe Massachusetts could do two things.
1. Stop giving officials Crown Victorias with Police Interceptor engines. Political power mixed with engine power and maybe with some alcohol does not make a good recipe.
2. Make a work rule that state officials not drive drunk. It is great that they are saving on the cost of chauffeurs but that should not be at the risk of death for us lowly taxpayers.