Sage Lewis

December 29, 2006

Joomla Installation @ WebMarketingWatch

Filed under: Business — sage @ 8:09 am

I wanted to put together some notes for the installation that I’ve done recently of Joomla

  • Joomla_1.0.12-Stable-Full_Package
  • tutorial_template
  • com_sefpatch_1.011.zip - I had this emailed to me because the downloaded version had some errors with _1.0.12 - .12 worked on Greg’s server.
  • plugin_jw_allvideos_2.4.zip - it’s a mambot
    • I am starting to embed my own videos into my sites. I’ve found the the allvideos player is great for this. I’m using “Flash Video MX” to make the videos for this. With the version of allvideos I’m using now(early June 2007), I found a fix to allow me to add a start image.
    • This is the tip:

      If you want a preview of your video, you can solve this problem for flv-files.

      1. You have to make little change in the php-file plugin_jw_allvideos.php
      You can find the file in the directory “mambots/content”.
      You must add to line 53 and 57 (where the values of the flv-array are set) :

      &image=$mosConfig_live_site/”.$video_folder.”***code***.png

      just after :
      file=$mosConfig_live_site/”.$video_folder.”***code***.flv

      and just before :
      $showdigits=true”.$autostart.”\”

      2. You must place the preview-image in the directory where your video is placed and give it the same name as the video.
      If you don’t want to use a preview-image, there is no problem; you just have the usable black background.
      The image that you use will be the background for your video, therefore it is best it has the same size as your videoframes. The image must be in the png format (otherwise you have to change ‘png’ in the code added, for instance in ‘jpg’ if you want to use jpg-files)

    • http://forum.joomlaworks.gr/index.php?topic=383.0
  • AkoComment_Tweaked_Special_Edition_unzip_me - this is a mambot, component and module
  • Don’t forget to rename htaccess.txt
  • Make configuration.php writable… probably 755
  • In Administration, make it seo friendly
  • SEF_advance.zip - this costs about $30
    • I have licenses for webmarketingwatch.com and sagerock.com
    • You can get a new version here: http://www.sakic.net/support/download/5/
    • sef_advance_tester - run this to see if you need ioncube (you probably do)
    • ioncube_loaders_lin_x86_ipf - run this on your local windows computer and it will upload the necessary files to the root folder of your web site. Then run sef_advance_tester again.
    • Installation of SEF_advance
      —————
      If you are using Joomla! 1.0 or Mambo 4.5.1 or higher follow these steps:

      1. Make sure you have built-in SEF enabled and functional
      2. Replace your htaccess with the one found in SEF Advance zip package
      3. Install SEF Advance by uploading the SEF Advance zip file in admin (Components > Install)

  • Single column home page: In the Administrator, I went to the main menu panel, clicked on home and changed it from 2 columns to 1 column.
  • mod_faves.zip - This creates a link for social sites for each page. I’ve added it to “bottom” so it appears at the bottom of each page.

I’m going to put all of these files in: I-Marketing-WebMarketingWatch-Joomla

Joomla! Help Site - Installation Guide

December 10, 2006

On Che Guevara

Filed under: Business — sage @ 6:17 pm


Che Guevara - Wikipedia, the free encyclopedia

“I will perfect myself and accomplish whatever may be necessary in order to become a true revolutionary.”

It was during this period that he acquired his famous nickname, “Che”, due to his frequent use of the Argentine interjection [[Che]] (pronounced /t?e/), which is used in much the same way as “hey”, “pal”, “eh”, or “mate” are employed colloquially in various English-speaking countries.

Author Christopher Hitchens, a supporter of the Cuban revolution in the 1960s, summarised Guevara’s legacy thus: “Che’s iconic status was assured because he failed, His story was one of defeat and isolation, and that’s why it is so seductive. Had he lived, the myth of Che would have long since died.”

On Karl Marx

Filed under: Business — sage @ 4:56 pm


Karl Marx - Wikipedia, the free encyclopedia

Religion is the sign of the oppressed creature, the heart of a heartless world, and the soul of soulless conditions. It is the opium of the people.

Those who must sell their labor power are “proletarians.” The person who buys the labor power, generally someone who does own the land and technology to produce, is a “capitalist” or “bourgeoise.” The proletarians inevitably outnumber the capitalists.

He believed that were the proletariat to seize the means of production, they would encourage social relations that would benefit everyone equally, and a system of production less vulnerable to periodic crises.

“between capitalist and communist society there lies the period of the revolutionary transformation of the one into the other. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat.

Yet he was aware of the possibility that in some countries, with strong democratic institutional structures (e.g. Britain, the US and the Netherlands) this transformation could occur through peaceful means

November 14, 2006

I Just Had Dinner With the president and CEO of Summa Health System

Filed under: Business, Uncategorized — sage @ 10:00 pm

So I have this thing for CEO’s. You might want to have dinner with Jennifer Aniston. But I’d throw her over in a heart beat for Jack Welch. Sorry Jen.

Well, today, I just had dinner with the president and CEO of Summa Health System, Tom Strauss. It was all quite by mistake. But that didn’t make it any less exciting.

On top of that, the speaker of the dinner asked to share with the person next to you (that would be Tom for me) about a coming together moment in your life.

I told him about when our company went from 3 to 5 people and we almost crumbled. But through endless change, faith and energy we developed an entirely new pricing model and way we sell our services. It has completely turned around our company and made us stronger than ever. It was all because of having a great team focused on one goal.

He told of a story where he merged two hospitals together. He said it was the hardest thing he ever did. He talked about the difficulty of merging two executive groups. That’s crazy intense.

But the best part was… before he sat down, the speaker for the night who was also sitting at our table said he was coming over to join us. She said that he was the greatest leader she had ever met. She would walk over hot coals with him. I asked her why. She said it was because he lead by his values and ethics.

That’s exactly what I want people to say about me when I’m not at the table.

It was completely thrilling.

Leslie A. Yerkes SMEI Akron Presentation

Filed under: Business, Uncategorized — sage @ 5:44 pm

Here are notes from a meeting I’m currently at. The meeting is titled: “Beans: Four principles for running a business in good times or bad.” That’s also the name of her book.

Her background is: education, marketing and now organizational development. She says that marketing pervades through all of her thoughts. I’m down with that.

She tells a story about an espresso cart that started in Seattle. It’s been around for a long time and is still known as the finest cup of espresso you can buy. There is always a line at this outdoor coffee stand. What creates that level of loyalty. It’s called “The El Expresso”. I couldn’t find the company online. She had been there at 2002. But here is a link to her book and reviews at Amazon. I guess “The El Espresso” is a parady name of the company. That’s why I can’t find it online. If I can deduce what the real name is I’ll put it up here.

Apparently the employees act like owners.

She mentioned that she has the largest business book library in Cleveland. She says that they are all the same. That sounds about right.

She is going to discuss:
4 Universal Principles that generate customer loyalty.

1. Passion: You gotta have it or you gotta get it. These people will outsell and outmarket all people that don’t have passion. (The flip side of that is Exhuberance leads to mistrust.) The owners were stewards with Continental Airlines. She has nicknamed them “Jack and Diane.” They had to leave Continental and wanted a job “to make people happy.”

They met a guy who had a European Espresso Machine. He had been there 30 days and hadn’t broken even. They asked him to hire them. They asked if they could give it away for free for a day. “The puppy dog close.” They got to know the people who came over, called them by name, etc. At the end of two weeks they had regulars. People came over because so much was happening. The owner learned that Jack and Diane like people and he didn’t. In 1981 they bought the cart for $5000. Passion was the driving force.

1. Passion
What is your passion? Helping create a work environment that adds value to our team.
How do you bring it
When it goes into it’s low ebb how do you restore it? That I don’t have an answer for. Right now I’m trying to just plow through it. But I’m close to the edge of burn out. They guy next to me suggested I take a day or two and just go away… no phone, email or family. I’m going to consider it.

When they hire people they ask them what they are passionate about. Then they ask how they will apply that passion to the coffee shop.
They hire for attitude and train for skill… Southwest does this too. I believe this is key to our success too. Herb Keller of Southwest says: Hire happy people and they will take care of your customers.

What is the reputation you want to earn with your coworkers, customers and colleuges?

And how will you need to behave today to make this reputation a reality?

The “how” is just as important as the “what”. Your own personal code of conduct assures your future.

You won’t have the level of trust to take you through the tough times if you don’t know the “how”.

2. People

What makes The El different to make people stand in line? They simply made it personal. They pulled their espresso with love. [See, LOVE. The "L" word is not one that people like to use in business. But it's truly the secret. The HBR all time best salesman said that he loved all of his customers. He said at his car dealership, "I thank you and my family thanks you. And I love you."]

“People taking care of people.” People feel wanted.

3. Personal
How do you make the interactions with your customers personal? How do you show care, concern and respect? [My focus is all on the team as far as I'm concerned.]
Make it personal without making it personal.

4. Product
Organizations where the product quality varies,
Have high standards. If you don’t the moral of your team will deteriorate.

“How can you create an environment where consistent product excellence can be sustained?”
The customer determines what is the excellence. [That strikes me as a bit simplistic. I don't believe a customer always knows what is excellent.]

If you don’t know where you’re going, you won’t know when you get there.

What do you want from your work? What do you want to bring to your work?

What’s one thing you took away from this that you either knew or will put into action? “Go to a milk farm for a couple days.” The guy next to me gave me that idea and I’m really grooving on it. It’s not to say the presentation was good. It’s just his get away idea is better.

October 1, 2006

Financial Class Notes

Filed under: Business — sage @ 1:50 pm

The Nonfinancial Manager’s Guide To Understanding Financial Statements
Larry Holmes Huston Texas

Separate your profession from your business.

The Cash Flow statement was created in 1988. Income statements are 500 years old.

1000
40
1000
30
1000
20
1000
10
total: 4100

Investorwords.com - financial words.

Generally Accepted Accounting Principals: GAAP

Sales=Revenue

THE ACCOUNTING EQUATION:
Assets = liabilities + equity (capital)

Cash balance is found on the top line of a Balance Sheet.

The reason a business exists:
To maximize the profit of what is invested in the business.

Return on invested capital is the most important way to measure success of a business.

Securities and Exchange Commission(SEC): has 5 commissioners who serve 5 year terms. They are there to protect investors.


The difference between: Finance and Accounting.
Accountants have a different job than finance people. They record info.
Finance people take info accountants give them and put it to work. They analyze, plan and execute the financial health of an organization.
Your accountant doesn’t help you with financial planning because that’s different work.

Balance Sheet is a point in time.
Income Statement is more like a movie. It’s over a period of time. Can also be called a: P&L, Operating Statement.
Cash Flow Statement: Covers a period of time showing inflow and outflow of cash.

“Quality Earnings” -

Cash Basis: When the cash changes hands is when it is recorded. This gives you wild swings on your cash. Doctors use it. Small service businesses use cash basis.

Accrual Basis: We recognized revenue when it is earned and not when it is received. Recognized expenses when they are incurred and not when they are paid. Most people use accrual because it’s considered superior. It’s based on the “matching principal.”: I want to match my income and expenses when they happen.

“Full Disclosure Principal” When accountants are aware of something going on that might have a material financial impact on the organization, they will tell about it in the footnotes of a financial statement. So, read the footnotes.

Historical Cost: Assests on a balance sheet are carried at the original cost and not the market value of assets. This is more objective… who’s to say what the market value is.
Conservatism: Says accountants should not overstate or understate a situation. However, if they can error on one side or another… they will error on the convervative side.
Going Concern: I am going to assume you are going to be around for years.
Materiality: Accountants only have to correct mistakes that are material. What’s material? The size depends on the size of the company. “If a lender or investor knew about this, would it effect there decision?”
Industry Practices: If this is the way your industry does things, it will be acceptable.

If you aren’t doing things like discussed today: 1. you haven’t had your statements audited. 2. you have a industry practice that is different.
Cost/Benefit: The cost of providing financial information has to equate to the benefit it provides.

Balance Sheet
A Snap shot
It shows you on that day:
Assets must equal the Liabilites plus the Equity.
Assets =  Liabilities + Equity

Assets are the wealth of the business:
Current Assets: Cash, Accounts receivable, inventory
Fixed Assets: Equipment, building, land
Prepaid Insurance Premiums
Intangible Fixed Assets: copyrights, patents, trademarks, goodwill (This is brand value, The premium you would have to pay for a business over and above the net market value of the assets on a balance sheet.

Liabilities

Assets - Liabilities =  Equity

Balance Sheet:
If there is too much cash, you aren’t using it to grow your business.
What is too much cash
Look at it as a Percentage of total Assets: Guideline should be about 10%.
Compare cash as a percentage of annual revenue (about 5% of annual revenue).
For small businesses: Determine how much cash you need for current liabilities and interest on debt for about a year.

Accounts Receivable
Compare it with revenue on income statement.
Red Flag: A/R growing faster than revenue. When you see a big increase in A/R but not in revenue… they probably aren’t paying their bills.

Land, building, equipment on a balance sheet is the original cost.
Depreciate buildings and equipment.
You want to depreciate something for the length of time you are going to use it. “Straight line depreciation” depreciates the same amount every year.
When you buy something… you take that amount of money from “Cash” and add it to “Fixed Assets”.

Book Value This is the total stockholder equity. It’s usually a lot less than market value.
Net worth It implies how much that business is worth. It doesn’t consider good will, market value of assets.

Dividends
Common Stock has voting rights
Preferred Stock has no voting rights. They have a priority over owners in the payment of dividends and bankruptcy. If you can’t pay them, it is put in the footnotes as “dividends in arrears.”


Using a percentage of total assets let’s you quickly compare one period to another, and to compare 2 different sized companies.
“Common Size Analysis of a Balance Sheet”

You want to see 10% of total assets to be cash.

If your accounts receivable and inventory is too high and cash is too low… they might not be able to pay their bills.

2 things to know from a Balance Sheet:
Are they liquid and are they solvent?
Liquid: how much working capital they have: Current assets - Current liabilies

Are they solvent:
Debt to equity ratio
total liabilities divided by total stock holders equity
The percentage shows the percentage of liabilities they have.
An average is about 100% - about same amount of total liabilities as total stock holder equity.


Income Statement / Profit and Loss

Sales - COGS = Gross Profit
COGS can be inventory.
Service businesses: COS Cost of Sales.

Operating Expenses:
rent, travel, utilities, cars.

Key Elements

  • Sales/Revenue
  • COGS
  • Operating Expenses: Selling, General & Administrative(S,G&A).
  • Other Expenses
  • Net Income (Net Profit, Earnings, Bottom Line)

Income Statement:
Sales
COGS
gives you Gross Profit

Operating expenses
Depreciation expenses
Interest Expense
Income tax expense
Other expense
Total Expense
Net Income

EBIT (operating income):
EARNINGS BEFORE INTERest and taxes.
EBITDA: earnings before interest taxes depreciation and amortization. Used on the organization level.


Characteristics of a Captital Asset

  • Physical substance
  • Useful life over one year
    • IRS Publication 946 will give you useful life.
  • Minimum dollar threshold
    • $500-$5000
    • Know this for budgeting for capital assets.
  • Not for resale


6 Elements included in a Capitalized Cost

  • Net purchase price
  • Plus installation cost.
  • Plus Shipping cost.
  • Plust insurance cost on shipping.
  • Plus sales tax
  • Plus Costs that extend its useful life. If you upgrade it, you should add that time to the life of the capital asset.

4 Elements Not Included

  • Service contracts
  • Start up
  • Insurance after shipping
  • Employee training.


Depreciation Methods:

Straight-Line Depreciation:
Equal periodic charges for depreciation less the anticipated salvage value.

Double Declining Balance - 200% declining balance.
Use double declining balance until straight line is more… then use double declining balance.

Sum-of-the-Years Digits
The years of the asset’s service life are added together.

Big companies use Straight Line on financial statements and Declining balance on their tax statement.
Declining balance looks better for tax purposes.

Zero Base Budgeting
The budget is based at zero. All expenses must be justified each new period. Go down every line item in budget:

  1. What can we eliminate?
  2. What can we fund at a reduced level?
  3. What should we fund at the same level?
  4. What would help us fulfill our mission to fund at a higher level?


Gross Profit Margin:
Gross profit divided by Sales… compare this from period to period.
Are you paying more or less for cost of goods sold. It also lets you compare two businesses… A higher profit margin means they are more efficient. If I have a higher profit margin I have a big competitive advantage… because I can cut my prices while my competitors can’t.

Net Profit margin - most industry specific margin.
Net Income / Net Sales
Software: 20%
Microsoft: 30%
Grocery: 2-3%Financial Class - Writely

Cash Flow Statement
The bottom line of the Income statement goes to the top line fo the Cash Flow statement

  • An increase in assets decreases cash flow
  • A decrease in assets increases cash flow

Oposite is true with liabilities:

  • An increase in liabilities increases cash flow
  • A decrease in liabilities decreases cash flow.


Most important aspect of this statement:
How much “Free Cash Flow” do they have:
CF from operating activities minus capital expenditures.
Cash flow from operating activities -  land, building and equipment
This is the amount of cash they had complete discretion over.
You can’t have too much free cash flow.

Annual Reports

  • A letter from the CEO… look for candor
  • Sales and Marketing - Is it clear what buseinss they’re in?
  • 10 year summary of financial figures - are they growing?
  • Management Discussion and Analysis - is there a discussion of industry trends?
  • Auditor Report
  • Financial Statements.
  • Subsidiaries.
  • List of Directors and Officers and major shareholders.
  • Stock Price History - what is the trend? Dividends?


SEC reports:

  • 10-k - like an annual report but much more detailed.
  • 10-Q - quarterly
  • 8-k - for special events that happened at that company… bankrupticies, acquisitions, spins off a part of company.

www.sec.gov/edgarhp.htm

Liquidity Ratios
Current Ratio:
Current Assets / Current Liabilities
You might want to see 2:1
A 1:1 ratio means they can just meet their financial obligations.

  • Low Current Ratios: restaurants: 1:1, soft drinks: 1:1
  • High Current Ratios: Furniture: 1.9:1, general manufacturers: 2.4:1
  • S&P Average: 1.3:1


Acid-test (Quick) Ratio - Service businesses should use this.
(Cash + Marketable Securities + Receivables) / Current Liabilities
This doesn’t include inventory.

  • Low Quick Ratios: restaurants: .5:1, soft drinks: .6:1
  • S&P Average: .9:1

Solvency Ratio

  • Debt to Equity Ratio
    Total Liabilities / Total Equity
  • Low Debt/Equity Ratios: software: .2:1, advertising: .1:1 - Don’t need debt. They have plenty of cash.
  • High Debt/Equity: real estate: 3.3:1, banks: 2.3:1 - they are in the business of barrowing money.
  • S&P: 1:1


Having a bad current Ratio witha bad Solvency ratio means these people are in trouble.

Profitability Ratios

  • Gross Profit Margin
    Gross Profit / Net Sales
  • Low GP Margin: construction supplies: 19.1%, computer hardware: 23.5%
  • High GP Margin: software: 77.4%, major drugs: 74.6%
  • S&P: 35.3%


  • Net Profit Margin
    Net Income / Net Sales
  • Low NP Margins: retail grocery: 2.2%, auto & truck manufacturers: 3.4%
  • High NP Margins: banks: 17.1%, internet information: 21.4%
  • S&P 10%


  • Return on Assets
  • Net Income / Total Assets - what kind of return they are getting on their resources.
  • Low ROA: electric utilities: 3.5%
  • High ROA: software: 18.8%, online schools: 20.4%


Return on Equity - most important
Net income / Total Equity
This is industry specific based on how the industry is doing.

  • Low ROE: airlines: 9.8%, long-termcare: 7.5%
  • High: oil & gas: 29.1%, personal computers: 46.9%
  • S&P: 18.1%


Return on Invested capital: a better view of how well you are doing.
EBIT / (working capital + net fixed assets)
A good business will have 50%.

Efficiency Ratios:

  • Days Sales Outstanding (DSO)
    Accounts REceivable X 365 / Net Sales
    This should be based on credit terms.
  • If you are too strict on who you give credit to, you are probably missing business.
  • DSO should be about 10 days above credit terms.
  • wholesale trade: 27 days
  • personal service: 74 days
  • S&P: 48 days


Inventory Turns
Cost of Goods Sold / Average Inventory

  • Low inventory: computes: 5.1 days
  • High inventory: appliance and tools: 60 days


Inventory Levels
Inventory Turns X Gross Profit Margin
Anything above 100 is usually to high of an inventory level.

If you know how to read the financial statements, and you know how to apply the ratios, you will be able to see your strengths and weaknesses.

  • finance.yahoo.com
  • reuters.com
    • investing
    • industries - his averages came from here.
  • Moneycentral.msn.com
    • stocks
    • investing
    • key ratios
  • bizstats.com
    • good for private company.
  • magicformulainvesting.com
    • for personal life.
    • Shows: Highest return on invested capital
    • Great book too.

IRS says a computer lasts 5 years. If you want to upgrade more often than that, you might want to lease. Cash conservation and technology are the biggest reasons to lease.
2 kinds of leases:

  • Operating lease
    • shows up as an operating expense and you give it right back to them after the lease. You want this: this wouldn’t effect debt to equity ratio and won’t effect barrowing power.
  • Capital lease
    • The value of the lease will show up on the balance sheet will be an asset…
    • It’s a capital lease if any of these apply:
      • The lessee owns it at the end of the lease
      • The lessee has an option to buy that is a bargain price.
      • The lease covers 75% or more of the useful life of the asset.
      • The present value of lease payments is 90% or more of the fair market value


Capital Evaluation Analysis

Payback Period Method

  • asset cost / annual quantifiable benefits
  • $10,000/$2000 = 5 years
  • It’s a very simple formula so it’s easily communicated.
  • It doesn’t give you a rate of return to compare other things.

ROI

  • annual quantifiable benefits / asset cost
  • $2000 / $10000 = 20%
  • It gives you a rate of return to compare other things.

Best Method: Net Present Value Analysis (discounted cash flow)
I’ll give you $2000 today or I’ll give you $2000 5 years from now. But you can’t spend it. Any amount of money you can expect to get in the future is that money less the interest rate they lost for that time period.
Excel Function: Net Present Value Analysis function: Have it go out the life time of the product. Use an interest rate that you think you can get for that money.

Break-even Analysis: Used in initial stages of making decisions… should we hire more people, should we get into another business, should we buy a building.

BE = Fixed Costs /Profit Margin Per Unit
$1000 / $2 = 500 hot dogs (page 25)

How many hot dogs do I have to sell to make a $500 profit
(FC + PG) / PM per unit
($1000 + $500) / $2 = 750

If we sell 400 hot dogs at $3 each we’ll loose money. How much do we have to charge to break even:
Break even price
FC / Units + VC per unit
$1000 / 400 + 1 = $3.50
total revenue equals your total cost (your fixed cost + variable costs)

This is a “what if” tool.

Anybody can be in any business as long as nothing goes wrong. It’s knowing what to do if something goes wrong.

September 28, 2006

Turning Against Shareholders

Filed under: Business, Uncategorized — sage @ 10:15 am

I’m seeing a consistent trend of companies getting tired of shareholders.

In this week’s The Week, “Issue of the week,” they write, “Investors demand short-term results and “sustained growth”.

It’s almost like corporate America is just catching on that all that sweet sweet money they got from shareholders had more strings attached than they thought.

Shareholders just care about short term money… and then they move on. They don’t care in the least what effect that has on the business model, the organization, or the overall economy. It’s 100% short term greed from a disinterested party. And that’s the guy running your business.

September 14, 2006

CEO Forum at the Practice Court of Quicken Loans Arena

Filed under: Business — sage @ 2:10 pm

I’m at the “CEO Forum” in the Practice Court of Quicken Loas Arena. I thought’s I’d blog the notes that jump out at me.

First Speaker:
Len Komoroski, President, Cleveland Cavaliers
Here are some live notes of his as I’m hearing him speak.

The title of his speech is:
“Creating a Winning Team Through Leadership”
He starts talking about Culture. His slide says: “It all starts with and ends with Culture”

“Always raise the level of awareness”
He talks about misspelling in signs, typos, the Toyota Arena has some lights out.
The jist is that there are details that people overlook that are causing a larger disconnect.

These are all coming from the new owner of Quicken Loans, Dan Gilbert.
There are two video clips in his presentation about a pumpkin patch that has a sign with an arrow pointing the wrong way. They come back a year later and the sign is now pointing the right way. The guy at the pumpkin patch goes on to say that this is the best year of pumpkin sales. This video series is done by the owner of Quicken Loans.

The concern here is really the obsession of the Quicken Loans owner. This presentation is all about mistakes and how they are the secret cause of your failure. Granted, these small mistakes don’t help. But the importance of this is overstated. This seems OCD to me.

“It’s not about WHO is right, it’s about WHAT is right.” is the next point. “No ‘Yes” Men around here.

“A penny saved is a penny.” He’s saying you should focus on revenue and not expenses.

“Innovation is rewarded. Execution is worshipped.” He talks about changing the color of the seats has had drastic effects on the whole feel of The Q. They’ve added “The Diff” to the scoreboard and how this is great execution. This really is not insightful to me.

They are in the Top 100 best places to work. That’s awesome.

I’m sure Dan Gilbert is a smart guy. But the fact that the points presented are his foundation are really mundane and unimpressive. But on the othe rhand, I’m just not a detail obsessed guy.

My battery is dying. This is all you get from me unless I can find a power outlet.

I’m back and should be networking now. But here’s a quick rap up.

Mark Kornegay was from Microsoft. It was just a big commercial about Microsoft. “Technology drives growth.” I don’t really believe that but it’s a convenient catch phrase for Microsoft.

While both key note speakers have impressive titles, neither was particularly interesting or “innovative.”

That said, I sat in on a session with Cathy Panzica, “Awakening a Sleeping Economy: Leadership Styles that Drive Change.” She had some great things to say.

She had 10 points that she went over. But what really struck a chord with me was her thoughts on leaders being in tactics. Her point was that leaders involved in tactics loose passion, get caught behind the eight ball and eventually die. “Concept not Content.” When you loose passion, you loose being a visionary… you loose your mantra… YOU LOOSE YOUR PASSION. When the head of an organization looses passion the entire organization is vulnerable.

I probably like that just because it strongly supports my belief that I need to get out of tactics. It resonates because I really do get passionless when I’m barried in tactics.

Alright… there you go. I’m off to get a Diet Coke and I think I smell some weinies.

September 10, 2006

Joe Abraham Evaluation

Filed under: Business — sage @ 10:54 am

Tomorrow is Joe’s evaluation.

There are so many things he does right. I just want to make sure I don’t forget any of them.

  • The greatest thing about Joe is that he is the epitome of a team player. If he has the slightest availability he will happily volunteer to help anyone. No one at SageRock (myself included) is as eager to help anyone in any area. It’s so powerful. That kind of attitude is extremely powerful and will serve him well for his entire career. He helps with the booth, with invoicing, with stats, with marketing, with ppc, with business growth, with finances. There isn’t anything he won’t help with. I could just go on and on about this.
  • He loves SageRock. He wants to make sure SageRock succeeds, not just so he keeps his job, but so SageRock continues to thrive. This kind of care for the orginization helps me keep on the fight. It means a great deal to me.
  • He has a great attitude. He rarely is in a down mood. He’s happy, funny and great to be around.
  • He is super competent. His smarts enable him to handle any job.
  • He has endless potential. He is young, open, excited and eager. This gives him tremendous power. He literally can do anything he wants.

I’m sure I could go on and on… but I have to run.

In a nutshell, Joe is great.

September 7, 2006

Paul E. Werner - Werner Printing and Lithographing Plant

Filed under: Business — sage @ 7:25 am

I have been facinated by the life of Paul Werner… a major contributor to the business history of Akron. The reason I’m interested in him is because he was a man of values… values which ultimately caused the ruin of his company.

As a business owner you have to hope that your values will not be the demise of your creation. But when push comes to shove what do you wish more: the death of your business or your integrity? He chose the death of his business and I respect that.

He built one of the more interesting buildings in Akron. You can see a picture of it here http://www.jfgood.com/. It’s on the corner of Perkins and Union here in Akron.

It’s on the register of historic places:

Werner Company Building (added 1976 - Building - #76001533)
Summit County - 109 N. Union, Akron
(less then 1 acres, 1 building)

And here is an article from the Beacon that gives a great rundown of his life:

Posted on Mon, Sep. 05, 2005
No longer in print
Grand castle is towering reminder of Paul E. Werner’s vanquished publishing empire in Akron
By Mark J. Price
Beacon Journal staff writer

Every few months, almost like clockwork, the question arrives. By phone, letter or e-mail, Beacon Journal readers make a familiar request at the cluttered desk of “This Place, This Time”:

• “I would like to know the history of the red brick building on the corner of Perkins and Union in Akron. Do you have any information?”

• “I have always been curious about the castlelike building on the corner of Perkins and Union. Do you know its history and what it is being used for now?”

• “When I come downtown, from the north, I’m always fascinated by the brick building at the corner of Perkins and Union. Do you think it would be possible to do an article on this building?”

Well, today is the day.

Many have ventured guesses about the origin of the structure. To set the record straight: It was never a mansion, school, church or fire station.

It was an office building.

Not just any office building. It was “the most complete and perfect office building in this city.”

The brick castle at Perkins and North Union streets is a towering reminder of a publishing empire. It is all that remains of an 11-building complex that was once “the world’s greatest printing plant.”

Before the rubber industry gained traction in Akron, the Werner Printing & Lithograph Co. — with about 1,500 workers — was the city’s largest employer.

German native Paul E. Werner was 16 years old when he immigrated to America in 1867. He worked as a clerk and bookkeeper at several Akron stores until he found his calling. In 1873, he entered journalism as an editorial writer for the Akron Germania newspaper. His editor was a Jewish rabbi.

The German-language publication was popular in the growing town. In those days, nearly one-third of Akron’s population was fluent in German. Werner liked the print business so much that he bought the

newspaper a year later and became publisher.

An empire grew. In the 1870s, he founded the Sunday Gazette and Akron Tribune newspapers. He also launched a commercial printing enterprise that soon occupied most of his time.

In 1884, Werner quit the newspaper business — although he would return a decade later as the financial backer of the Akron Journal in 1896. (He is credited with proposing the Journal’s successful merger a year later with the Summit County Beacon.)

Werner preferred to concentrate on making high-quality books. He built a printing plant in 1886 at the northwest corner of Union and Perkins, and established sales offices across the country. Eventually, he opened branches in 20 countries.

Among the gold-leafed titles the Werner Co. published in Akron were Webster’s Dictionary, Encyclopaedia Britannica, Encyclopedia Americana, the Waldorf Cook Book, the White House Cook Book and World’s Best Literature. By the mid-1890s, the plant was producing 10,000 volumes a day, or enough to fill six train cars.

Werner’s reputation spread throughout the world and he became acquainted with such diverse luminaries as President William McKinley, Buffalo Bill Cody, French painter James Tissot, German Count Ferdinand Zeppelin and Queen Victoria.

One of them served as a convenient excuse to build offices.

Werner announced in October 1896 that the company was planning an administration building on the northeast corner of Union and Perkins, directly across from the printing plant.

“The office structure will be started immediately after the election of McKinley for the simple reason that we know that confidence will undoubtedly be restored and business prosperity will be the result,” he announced. “We will be then justified in making important changes of this sort, and undertaking new ventures and enlargements of business.”

McKinley won.

Ground was broken Feb. 4, 1897, on a $25,000 building (about $685,839 today). Hugin Brothers of Cleveland constructed the three-story German castle, a red-brick structure with white sandstone trimming, gable roofs, wide stone steps, an arched entrance and large oak doors. A four-story clock tower stood at the corner.

Work was done by August. A staff of 150 men and women moved in that September.

“The lobby is magnificent,” the Beacon Journal reported Sept. 25, 1897. “It is finished in oak, stained to a dark color, but still showing the natural grain of the wood. The floor is of mosaic tile. A centerpiece attracts attention. It is a design showing various emblems of the primitive printing art. A motto reads `Knowledge is Power.’ ”

Oak beams formed square patterns on the ceiling, which was decorated in gold and silver leaf and depicted coats of arms from nations of the world.

The first floor contained offices for President Werner, Treasurer George C. Berry, bookkeeping, printing and lithographing, the book department and the phone exchange.

An oak stairway led to second-floor offices for auditing, collections, magazines and encyclopedias. The third floor was an attic. The basement had the mail room, supplies, stenography department and a boiler that provided steam heat for the building. There were also fireproof vaults to protect books and plates.

“The structure is withal the most complete and perfect office building in this city,” the Beacon Journal declared.

Life was going well for Werner, who was by now a multimillionaire. High society turned out for extravagant parties at his West Market Street mansion. A great benefactor of the city, he led downtown parades and set up fireworks displays on his lawn to entertain crowds.

In 1904, he built the Deutsches Haus, better known as German-American Musical Hall, at 44 E. Exchange St., the present site of the Beacon Journal.

But the Werner empire began to crumble in 1908, when Encyclopaedia Britannica filed a lawsuit alleging trademark violation. The London company claimed that Werner had lost the rights to encyclopedias but was still producing volumes. It demanded a permanent injunction.

“It is a case of malicious prosecution,” Werner said. “All of the charges are absolutely untrue, and will be answered in due time by the Werner company.”

Britannica sued Werner in all 20 of the nations in which he did business. He hired high-profile attorneys and won virtually every case, but the litigation cost him more than $1 million.

In 1910, his business collapsed. Werner filed for bankruptcy and was forced to sell the 11-building complex in Akron.

Superior Printing & Lithographing Co. moved into the plant and remained there until 1940. The Pflueger Corp., famous for making fishing tackle, occupied the factory until it closed in 1969. Famous Supply Co. used the building until it was destroyed in a 1977 fire.

Meanwhile, the old office building served as the home of the Fred Reese Post of the Veterans of Foreign Wars from 1957 until 1972. In the mid-1970s, it served as the Haunted Castle at Halloween.

Today, it’s the corporate office building for Famous Enterprises, a wholesale distributor for plumbing, heating and cooling and construction industry supplies in Ohio, Pennsylvania and West Virginia. The building is listed on the National Register of Historic Places.

Paul E. Werner left Akron in 1915 and opened a rubber factory in Kansas City. The German native lost his financial backing, though, when he announced his opposition to the U.S. entry into World War I. The business folded by 1925.

In 1927, with most of his wealth lost, he returned to Akron and received a hero’s welcome. F.A. Seiberling held a big party for him at Stan Hywet.

“It’s nice to be back home,” Werner told the crowd.

Seiberling arranged one more surprise. He purchased the Akron Germania newspaper and reinstalled Werner as editor.

The publisher’s life had come full circle.

Werner was 80 years old when he died Feb. 6, 1931, of Bright’s disease. Akron’s elite packed the funeral. The industrialist was buried in the Werner vault at Glendale Cemetery.

Only a few weeks earlier, Werner gave a final interview to journalist John A. Botzum.

“If you ever have to write the story, put two different columns side by side,” he told Botzum. “Let one of them be for the good things Paul E. Werner has done. The other for the foolish things.

“I believe the column of good things will be longer than the other column.”

The castle at Union and Perkins is one of those good things.
Mark J. Price is a Beacon Journal copy editor. He can be reached at 330-996-3769 or send e-mail to mjprice@thebeaconjournal.com.

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