Industrialization of groceries

My first visit to a super walmart, located in Orlando. Wow! Everything is on wheels in their grocery area. And they bin every thing in the fruit/vegetable area, so reduced labor. I can see why grocery stores in California are afraid of walmart. They also have ready to eat stuff too!

Why are these type of efficiecies not seen in grocery stores in the los angeles area? The video on the checkout stands is a change at albertsons, which is why I only shop there when I have to. Versatel machine at their store in Rowland heights isvso low I need to bend down to use it (both machines).)

I remember peter Drucker's point of looking outside your business. Are grocery stores?

Hiring Ethnical and Projects

A friend of mine just went through a grueling interview and was asked to do a design for the company to show his skill in the area. Unfortunately the company did not ask him to come in to explain his design, and did not pay him for the time to do that.

This happened to me, where I developed a business plan and gave a presentation for a company that was supposedly looking to hire a person. No offer, so the company got some very good free consulting. I heard later they hired no one for the position...

So when I later got in a position to do hiring, when I asked a person to do some analysis I actually paid them for the hour they spent doing it if they did not get the job. I felt it was ethical to do, I wish more companies did this.

Drucker and Verizon SPAM Calls

I just received a call from Verizon. It went like this.

1. Can I talk to the person in charge of your phone plan.
That's me...

2. What is your name
Ray

3. This call may be recorded.

4. This call is to discuss your phone plan options.
Please put me on your do not call list.

Drucker's three questions:

1. Who is your customer
Me

2. What do they want.

a. Be treated with respect.
b. Save money.

3. What can you provide of value

a. Lower prices
b. Treat with respect (Calling me up with an unfriendly call, you may be recorded, which caused a bit of anxiety)

3+ How do you measure this?

I would treat the call as a failure since I asked to be put on their do not call list.

Billboards and the Economy

Internet Bubble
In 1998 I graduated from the Drucker School and got a job up in Silicon Valley. Lots of billboards of Internet and Technology firms along Highway 101. The company I was with, Amdahl, was so proud when the got a billboard. All the billboards were taken by technology companies.

Silicon Valley Today
Apple has a great billboard off the 101 Freeway for the iPod, I can't think of any other technology companies when I visited Silicon Valley a couple of months ago. More consumer companies.

San Gabriel Valley Last Year
At the 605 and 60 Freeway, a big billboard advertising home loans and the current interest rate.

San Gabriel Valley Today
At the 10 and 605 Freeway, a billboard advertising bankruptcies for $799.

Dell Customer Service

Dell is an amazing company, but in the area of customer service I have been surprised at how inefficient they are. They seem to just throw resources at a problem in my two experiences with them, one still ongoing. I appreciate how they are focused on fixing problems, but if I was a Dell shareholder I would worry about the cost.

First Incident
The first case was with a laser printer I bought. The printer crumpled the paper, so Dell sent another one. This one the door on the side would not close I think. So they sent another one. Finally my Mother just took the part from one Dell Printer and switched it out with the part on the original printer to fix the problem. While I was going through the Dell Tech. Support, I asked about my laptop that had been having three issues, I figured why not ask since I was already on the phone.

Second Incident
The three problems were silk screen on the keyboard had come off (minor, but since I was on the phone. My IBM think pad did not have this issue), the track pad was not 100% working, and while I was on the phone, the computer shut off due to heat issues. A band aid on the heat issue was put something under the computer on the back to improve the ventilation to prevent over heating. So Dell sent a box to return the laptop and finally I returned it.

Double Checking:
Before returning it I chatted with Dell tech support to make sure they knew about all three issues. I was assured they did. Then inside the box it said include the HD, but the tech. said not to. So again I did a chat and was told I did not need to include the HD. So finally after finding the right size screw driver I removed the HD and dropped it off at FedEx.

Checking Status Problem:
So I went online to Dell.com to find out the status. Spend a while looking around and can't find anything. Do another chat and find out the unit arrived, but there is no way for me to find out online the status directly.

Redundant Communication:
Then I get an E-Mail unit is being returned. Then I also get a call saying the same thing while I was on the phone with a customer (wonders of call waiting).

Units Arrives Home:
Then today the unit finally arrives back. I get the repair sheet, and all the had been check marked was the keyboard and track pad. So I call up and ask what had been worked on. My answer was only those two items were noted. Argh!!! I looked and found my chat transcript where I had contacted Dell to make sure of the three things. I was told the Dell person did not have access to this. But I should check out my Dell and see if it has a heating problem, and they would call back tomorrow morning. So I install the HD, and find out for some reason Dell used two different size screws for securing the HD.

3 Failure Points:
My opinion there were at least 3 failure points on this:

1. Original contact with Dell, Technician should have typed in Heat Issue.
2. When I contacted Dell to double check it should have been entered.
3. Ability to see issues on my laptop online could have caught this in time.

Future:
Now to see if the laptop overheats tonight or not.

IBM Service
My one interaction on my wife's ThinkPad, when it was still IBM doing the service was amazing. We had bought the laptop used ad the CD Rom on it failed. I called up IBM, they took the S/N and mailed out a new part. Amazingly smooth operation. I wonder how the support is with Lenovo, and if they still have the quality on the ThinkPads that IBM did (wonderful keyboard).

Why a Microsoft Physical Store?

Peter Drucker has 3 famous questions that I would suggest Microsoft should apply to it's project to open 25 Physical Microsoft stores.

1. Who is your customer (everyone selling through reseller channels).

2. What do they value (something that helps them do what they need to do effectively/efficiently).

3. What can your provide of value (good products & reseller support).

My guess is Microsoft is copying Apple's stores. Apple had the challenge that few resellers were carrying their product limiting their distribution
channel.

Store Opportunity

Opportunity	Apple	Microsoft
Distribution Channels	Few resellers and poor distribution channels.	A+ distribution channels and reseller network
Profit Margin	High on Hardware and Software	High on Software, poor on PC Hardware
Channel Issues	Minimum since Apple produces Hardware and Software	Challenge which PC Manufacturer to have in store. Hp, Sony, Dell, Gateway, Toshiba, Acer, Lenovo, or ? Any decision will upset part of Microsoft's channel.
Brand	A+	Poor
Revenue Potential	Excellent	Poor (what are they selling and they are competing with their existing reseller channel).
Reseller Channel Power	Low	High including hp, Dell, etc.
MP3 Players	iPod	Zune
Mobile Phone	iPhone	Windows on phones for other manufacturers.
Games	iPhone	XBox

SWAT Teams and Totalitarism

Deadly Force - Washington Post.

A SWAT Team invaded the house of the mayor of a city, broke down the door after the mayor's wife screamed, shot their two dogs, ransacked the house, and then claimed it was the fault of the mayor's wife for screaming.

What would Peter Drucker say about SWAT Teams that act in such a totalitarian manner?

Claiming their actions are justified by the "war on drugs" for their actions. This reminds me of how totalitarian regimes justified their actions that everything had to be given to the nation, including freedom. By protecting our nation from drugs, the SWAT teams with their paramilitary culture act against it.

The key here is the incentive that police get for the war on drugs, anything they confiscate goes to fund their department. So if your found guilty of being a drug dealer, the police can seize all your property. The police department that did the raid last year got $2.5 Million dollars from drug related property seizures.