Common Sense … again

October 30, 2011

I’m concerned about our country.

I’m concerned …

… about the hyperbole dominating our dialogue

… that politicians right and left offer “solutions” only
when situations reach crisis levels.

… that some of the “cures” seem to be worse than the malady

… that private interests control so very much of what we
see, hear, and what happens in government.

I’m concerned that the voice of people, the interests of
the common man has been drowned out by the hyperbole; by the shouting; by the
brinksmanship

I’m concerned that the wisest of us about how to address
our own challenges is being discounted, disregarded, and has become disengaged.

I’m concerned that the very solutions we so desperately
need in America today are locked away in the heads and hearts of the average
American …who is and remains amazingly silent.

It’s time for the Average American to show up.

It’s time for the Average American to speak up.

It’s time for the Average American to find his or her
voice and take back your country.

Democracy demands it; we deserve it.

America needs it … desperately.

Mike Stockwell writes
this blog for his clients, friends and frankly, for his own entertainment.  Mike is the Founder of The Pacific Group –
Business Advisory Services and works with owners and executives small and
mid-size businesses in California and Hawaii, helping them to take their
business to the next level. 

Find out more about Mike
and his business at:
www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

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(I wrote this Blog in September of 2010 but forgot to publish it.  And though some of my outrage has subsided … I still want you to know this. Undoubtedly there will be more to talk about when it comes to professional politicians and public servants.) 

I must warn you that I am feeling particularly spunky today.  If you cotton to professional politicians you might want to skip reading this entry.  If you are a public servant … thank you for your service.  And if by chance you are reading this AND you are a professional politician who is dishonest or you’ve forgotten whom you serve … a pox on you!  I fervently hope that there is such a thing as Karma.

OK.  So it doesn’t take long for a tiger to show its stripes, and politicians to forget who they serve.  It takes longer for a Fed Chairman to screw things up; but they’re all probably just as inevitable.  But they are minor players in this entry.  This is the story of a for real public servant, and the story of others who hold themselves out to be serving the public, but fail miserably.  I was able to glean a great deal of this from a PBS special which is footnoted below.  I also did a little of my own research lending to the veracity of the “facts” presented in the video and now here.

Brooksley Born graduated from Stanford University in the 1960’s and went on to Stanford Law School, becoming the first female to graduate at the top of her class and first female President of the Stanford Law Review.  Bill Clinton considered her for the Attorney General’s position ultimately given to Janet Reno.  Some say as a consolation prize, Brooksley Born was appointed to head the Commodities Futures Trade Commission (CFTC).  Now I was taught by a Yaley that when the President of the United States taps you on the shoulder, you step up and serve.  Though we don’t run in the same circles, I suspect that Brooksley Born must have learned that too.

As head of the CFTC she called attention to the existence of a market in Over the Counter Derivatives; in essence, risk instruments that various players on Wall Street enter into to protect themselves from unforeseen calamities.  At that time, around 1993, it was a completely unregulated $27 Trillion market operating in a “black box” environment.

Brooksley Born testified at least four times to Congress concerning the dangers of this fast growing, unregulated and highly secretive financial market.  She was concerned because the market was utilized heavily by the banking and financial services industries and involved huge “bets” by well know financial players such as Bank of America, Lehman Brothers, Bankers Trust, and Long Term Capital Markets.

In 1993 one player, Bankers Trust, was sued by a client alleging that Bankers Trust sold derivatives to the client and intentionally took advantage of the client.  That client was Procter and Gamble.  The CFTC found out about the frauds occurring in these markets because P&G filed its lawsuit against Bankers Trust alleging, among other things, millions of dollars of fraud.  With a little sniffing around, the CFTC could see that a calamity in this unregulated and secretive market had the potential to take down the entire American financial system.  Brooksley Born issued a warning and a call to action.

Not really a politician and without significant political capital, Brooksley Born had few supporters and, promoting the idea of tougher regulation provided her with some significant detractors; specifically Federal Reserve Chairman Alan Greenspan, Secretary of the Treasury Robert Rubin and his lieutenants, Tim Geithner and Deputy Treasury Secretary Larry Summers.

Brooksley Born got a phone call from Larry Summers who said he had 13 bankers in his office who had informed him of what the CFTC was contemplating.  Summers read her the riot act and told Born this talk of regulating the derivatives markets had to stop.  The well oiled and highly financed Washington D.C. lobby for the financial industry was up in arms.  Congressional members were inundated with calls and visits demanding that Congress get Brooksley Born off their backs.

The standing committee known as the President’s Working Group, was an influential collection of the “finest minds” to advise the president on matters economic and financial.  Members of the group headed and steered by Treasury Secretary Rubin also included Greenspan, Summers, and Arthur Leavitt, Chairman of the SEC.  By executive order, Brooksley Born was commanded to attend the meetings too.

An emergency meeting of the President’s Working Group was called to address were called together to find a way to address what was now a political hot potato … the topic of the Concept Release, the draft of the CFTC approach to regulate the derivatives markets.  Each of the titans, Rubin, Summers, Greenspan and Leavitt took their turn at trying to convince Brooksley Born to bury the Concept Release and any further contemplation by the CFTC to regulate this “dark” market of derivatives.  Born listened but would not relent.  Two weeks later Born ordered her staff to publish the Concept Release document.

At her own personal and professional peril, Brooksley Born took the steps she thought were necessary to protect the interest of the American public.   What happened next in the ensuing days, weeks, and years speaks volumes for how corrupt the highest levels of government are in Washington D.C.  Brooksley born was crucified in congressional hearings, and in the press by the powers at be in the Washington establishment.  Member of the President’s Working Group published a memo expressing “grave concerns” over the CFTC actions and warning of dire consequences that such regulation would bring. 

Rather than continue sharing facts, I will use this opportunity to express my own opinion.  And in case you are one of those titans of Washington or Wall Street, since this is my blog , we play by my rules here.  Get your own blog if you disagree! 

Now, let’s recount for a moment the titles of the people involved in this story. 

  • Chairman of the Federal Reserve Board of the United States of America,
  • Secretary of the Treasury,
  • Deputy Secretary of the Treasury,
  • Chairman of the Securities and Exchange Commission,
  • Senior Advisor to the President of the United States of America. 

Most notably, allthese people are feeders at the public trough; … all sworn protectors and preservers of the Constitution and, in turn, fiduciaries supposedly serving the best interest of the American people.  Yet who’s interest  did they really serve from 1993 to the summer of 1998 and beyond? 

Well, as Paul Harvey used to say, “and now …  the rest of the story.”  Excuse my French; but in 1998 the shit hit the proverbial fan.  Throughout a ridiculous number of congressional committee hearings, Greenspan, Summers, Rubin and Leavitt lobbied heavily against Born and the CFTC.  Brooksley Born was ruthlessly pummeled and then publicly eviscerated. The CFTC was rendered effete as it relates to regulation of the derivatives market.  Congress saw to that. 

Brooksley Born tendered her resignation.  Then, six weeks later, rocked by a financial crisis in Russia, Long Term Capital Markets, the hedge fund placing market bets using derivatives had leveraged $5 Billion into $1 Trillion in derivatives was on the verge of going belly up.  The meltdown which subsequently occurred in 2008 probably would have occurred ten years earlier. 

Everything that Brooksley Born had worried about … had warned Congress and the Administration about, had begun to come true.  It was only because the Fed and the Treasury forced Bank of America and a baker’s dozen of other financial institutions to pony up $400 Million each to keep LTCM solvent that the debacle did not occur in 1998.  $3.5 Billion later the crisis had been temporarily averted; Greenspan told Congress that the incident was an anomaly, and thus felt comfortable sticking its Medusian head in the sand.

Now, with Brooksley Born out of the way and the CFTC rendered powerless to regulate; both unfettered and unregulated, the derivatives market continued to grow to nearly $600 Trillion (yes … that’s right … $600 Trillion).  Then … it all hit the fan … again.  Lehman Brothers filed for bankruptcy.  AIG, GM, Chrysler and many of America’s biggest banks were technically, if not actually insolvent.  And the American taxpayer was about to become the victim of the one of the biggest heists ever foisted upon a population of peoples who freely, blindly and naively elect those who represent them in Washington D.C.,  …. and then pick the pockets of those who they pretend to represent.

Brooksley Born represents to me a conscientious professional who served the public well during her tenure, and who was chewed up and spit out by the politicos of D.C.  She understood who it was she was obligated to serve, and whose interest she was there to protect.  Brooksley Born was the kind of public servant we need.   Arthur Leavitt ,the SEC Chairman eventually did an about face concerning Brooksley Born, calling her, “one of the most capable, dedicated, intelligent and committed public servants that I have ever come to know.  I wish that I knew her better in Washington.  I could have done much better.  I could have made a difference.”

Formerly known as the Wizard, even Allen Greenspan, the laissez-faire Fed chair eventually in 2008 admitted to Congress that he was wrong about the markets being self correcting.   He went on to admit that regulation and enforcement is a necessity for the financial industry.

But what about the rest of the players, Robert Rubin, Larry Summers, and Tim Geithner.  They seemed to serve someone other than the people whose welfare they had been entrusted as a fiduciary.  Bob Rubin left government with a $100 Million taxpayer subsidized dowry payable to his new employer, Citibank.  No one ever said he wasn’t bright!

Both Summers and Geithner have been given places of honor at the Obama table. In my humble opinion each has failed miserably as public a servant and ought to be thanked for whatever service they have provided, patted on the butt, and allowed to go lead some hedge fund or think tank.  “Tim, Larry … thanks guys.  Now hit the road … and don’t come back!”  And if they don’t go voluntarily, there’s always the pummeling and public evisceration they so solidly endorsed and participated in for their colleague.

So I ask you now … What’s really changed?  We didn’t heed the warning …  … the financial reform legislation that was passed doesn’t really reform or correct much of anything.  Banks and financial service companies will continue to charge usurious rates to consumers, change the rules at will, and get away with … whatever they damn well please.  And naturally, they will also continue to contribute to the re-election campaigns of those who serve the interests of the financial service companies and forget about their constituents.  And professional politicians and other feeders at the public trough will continue to pick the pockets of all of us, so long as we allow them to put their own interest before their fiduciary obligation to first serve the interest of their constituents.  Sounds pretty bleak … right?

Watch for more on this later.   I have an idea!

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the Founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to take their business to the next level. 

Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

For more on Brooksley Born, Link to the PBS Program: FRONTLINE — The Warning http://www.pbs.org/wgbh/pages/frontline/warning/view/?utm_campaign=searchpage&utm_medium=videosearch&utm_source=videosearch

For more on the current economic malaise, Link to the PBS Program: FRONTLINE – Inside The Meltdown http://www.pbs.org/wgbh/pages/frontline/meltdown/?utm_campaign=homepage&utm_medium=bigimage&utm_source=bigimage

P.S.:  I just found out that John Boehner (Do you think that’s a spray on tan or is it from some recent sunny junket 🙂 ) said the same thing recently about Tim Geithner.  Apparently Mr. Boehner and I agree. Excuse me while I go shoot myself !

From where do you derive your good news?  What do you see or read that recharges your batteries and gives you a lift out of the muck and mire of the daily news, the tabloids, the gossip magazines and TV shows that spew the negative news of the day?  A how do you think that this colors your disposition and your outlook.  Does it color your attitude, your demeanor, your performance at work?

Wait!  … don’t change anything yet!  Instead, just observe for one more day.  Allow your “silent observer” to notice what you hear and see from the media, from friends, from family and, if you can, observe your own self talk.  Just watch and listen … and be amazed at how much negative news, words, and emotions that we are exposed to and endure daily; two wars, terrorist acts, murder, kidnap, lost jobs, deficit, and the partisan politics and babble that emanates from Washington, D.C.  Once you’ve had enough, don’t despair, don’t curl up and hide, don’t shut out the world; but rather, know that antidotes to this plethora of negativity do exist.

We’ll talk about some of those antidotes soon.  But first, let’s first talk about how to lessen the toll that negativity takes on our psyche, our emotions, our disposition, and on our physical health.  Consider these few simple ways to lessen the impact of some of the negative coming your way:

  1. Be Selective … about what you watch, what you read, what you listen to and what and who you surround yourself with.
  2. Remain in Awe … of life, of grace, of nature, of human resilience, of our ability to grow and learn, and of our ability to alter the path we travel and the attitude we bring to that journey.
  3. Slow it down and step aside … recognize the overwhelming amount of negative news for what it is … a way to sell air time, newspapers, magazines and tabloids.  It is not the norm.  Turn off the bad news after you’ve heard what you needed to hear.
  4. Recognize … that there is more good that we as humans do than bad; and that, unfortunately, in our society good news is generally not news.

While this list is neither exhaustive nor complete, it may provide you with a different perspective and a few ideas about what might work for you in mitigating the negativity that we are inundated with every day. 

Mitigating the effect of negativity is a first step.  Counterbalancing it is an important next step.  Here are some proactive steps that I have found helpful in protecting me from the toxins of negativity.

  1. Start the day with some quiet time … Early morning is the perfect time to gather your thoughts, reconsider recent events, reflect and process.
  2. Read something affirming or positive … There are many enriching writings that you can lay your hands on.  Some good examples are the Bible, Daily Bread, the Tao Te Ching, or any work that is broken up into small segments, verses or poems that can be read in 5 minutes or less and then considered for another 5 minutes.
  3. Get some form of exercise every morning … even if you plan on a vigorous workout later in the day, move, stretch, walk, yoga, tai chi; treat your joints, muscles and circulatory system to some daily gentleness for 5-10 minutes every morning.  No need to break a sweat … just move.
  4. Consider the spiritual you … whatever your belief; nourish and align; come back to your center.  Whether it is reconnecting and re-engaging your spiritual self, exploring and stretching, or searching and finding that which resonates deeply with your core beliefs, integrating the spiritual you into your life can enrich relationships, improve outcomes, and change lives.
  5. Stop … observe … appreciate this moment before it is gone.  Throughout the day, allow your silent observer a voice; taking note and enjoying extraordinary, emotional, or even mundane moments as you work, as you relate to others, and as you accomplish.
  6. And I’ll finish with this … whenever you are faced with a choice to be right or to be kind… choose kindness.  Both the recipient and you will derive benefits from your choice.

As a business owner we are counted upon to lead, to be right, to make good decisions, to serve, and to move our organization in a right direction.  To the extent we can, controlling the outside forces that shape and influence our day and finding our own balance is not only wise; it is our responsibility.

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to bring balance back to their lives and take their business to the next level.  Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

 

Copyright © 2009-2010 by Michael Stockwell

All rights reserved.  No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, or digital, including photocopy, recording, or any information storage and retrieval system or search, without permission in writing from the author.

What Have We Learned Dorothy?

December 27, 2009

Note: I actually wrote this on December 20th, but with the holiday rush, neglected to publish it …  Whoops!

“Get ready for a year-end rally”

“The market is poised to move lower”

“The market has no direction.”

“Now is a lousy time to expand.”

“I know I can make this business grow … I just need to do it”

Even in these difficult times, though we may be short on capital, there never seems to be shortage of opinions about what you should (or should not) do.  Take for instance one of my clients in Hawaii who decided he wanted to expand his business.  We’ll call him Jerry.  Jerry did his homework.  It was back in 2007, I sort of forced him to prepare a plan that he could present to the bank to obtain the capital he needed to grow.

Though he didn’t like it, Jerry did exactly as I asked.  Admittedly, the plan was optimistic. The bank took a look at it.  The first answer was “We need more info.”  The second answer was “No.”  And no matter how we asked or what we showed, the answer was still “No.”

Now this is not an indictment of the Bank.  This particular Bank is known for being conservative in their lending decisions … and, truth be told, even I had my doubts about whether Jerry should be expanding at that particular time.  The good thing is, Jerry never did have a doubt; or if he did, he never let on.  In spite of the No’s he was hearing from all around him, he decided to add a store on Maui.  Shortly thereafter, when he learned a large “competitor” was folding their tent in Honolulu he added yet another store.  His sales skyrocketed and, in no time at all, his profits did too. 

There will always be naysayers and doubters; and when you’re down … expect them to bring reinforcements!  But know this.  Jerry knew with every fiber of his being that he was right.  He knew his business, his customers, and his unique niche in the marketplace.  Jerry believed in himself.  When the time came to place his bet, Jerry was “all in” and his wager paid off handsomely.

 A friend of mine (whose name is not Dorothy) muses aloud to herself as she learns life’s lessons … “OK now what have you learned Dorothy?”  … referring to the Dorothy in the Wizard of Oz.  That question is particularly apropos here.  So … what have we learned Dorothy?  We’ve learned that we need to bet on ourselves and have the courage of our convictions.  It may be the best bet of all!

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to bring balance back to their lives and take their business to the next level.  Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

 

Copyright © 2009-2010 by Michael Stockwell

All rights reserved.  No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, or digital, including photocopy, recording, or any information storage and retrieval system or search, without permission in writing from the author.

Yes, I’m way overdue to write this.  I actually started but never finished a June 15th article entitled Birthdays, Bikinis, Buchwald and the 109th Bead.  I don’t remember how bikinis were germane, but I do remember that I was going to lament another birthday, and then say thank-you to syndicated columnist Art Buchwald, whose satirical articles I grew up on.  So consider yourself fortunate that you don’t have to listen to me whine about getting older … and as for thanking Mr. Buchwald … “thanks Art for a lifetime of thought provoking satire.” (The 109th bead is the “give thanks” bead on the string used by millions in meditation and prayer)

So now to the subject at hand; if you are not connected on Linked-In or some other social network, you are missing a HUGE opportunity.  Recently I experienced that power in trying to connect with someone internally at a large local company.  For the sake of preserving privacy, let’s call her “Margie” at a company called “Colossal.”  I did not know anyone within Colossal and I sue didn’t know Margie.   For business reasons, I wanted to connect with someone inside the company immediately.  Here comes Linked-In.  A search of Linked-In for Colossal produced several names, including Margie’s.  Low and behold it just so happens that Margie was acquainted with two people in my grad school class at UCI. 

I made emailed both my classmates and asked if they felt comfortable introducing me to Margie.  I learned out that one of my classmates, Angie Swartz (www.linkedin.com/in/aaswartz) is good friends with Margie.  By mid afternoon both classmates had contacted Margie. Well that’s all it took.  By the end of the day I had a 30 minute conversation with Margie and was able to learn exactly what I wanted to know about Colossal.  I now have a friend there at Colossal.

As it also turns out, my classmate Angie is somewhat of an expert on the topic of social networking.  If you take a look at her profile through the link provided above, or go directly to her company website at www.squaremartinimedia.com you’ll see that she and a colleague work with business clients to establish a web presence and take advantage of the power of social media. 

As we humans in business work hard to connect and sometimes struggle to find ways to gain access to a particular business prospect, it’s refreshing and, for me a relief, to discover the power residing within these relatively new tools as avenues to connection.  And since we’ve already explained the reference to the 109th bead, “thanks Angie,” “thanks Margie,” and “thank you Linked In.”

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to bring balance back to their lives and take their business to the next level.  Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

 

Copyright © 2009-2010 by Michael Stockwell

All rights reserved.  No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, or digital, including photocopy, recording, or any information storage and retrieval system or search, without permission in writing from the author.

Well, the results of my last blog are in … I was contacted by many of you who were pleased that I was able to effect the termination of the CEO of that dastardly organization I mentioned in my last writing.  (Would that I were that influential !!)  My sister-in-law, Viki, noted that the CEO “really got his comeuppance.”  I couldn’t help but think that his leaving with a $23 Million golden parachute was a pretty cushy comeuppance. 

One terrific result of the last edition is it allowed me to reconnect with many friends and colleagues who I had not talked with for as much as 25 years.  It’s amazing how disconnected we get from people we care about, or those who were an important part of our lives for a significant period of time.  I heard from one friend, Barb, who I’ve known for every day of my 55+ years.  Another, Jerry, retired from SRPD and now lives in Napa and is working as a security consultant for a software company he affectionately refers to as “Lo-jack for laptops.” (Absolute Software Corp.)  Hey Jerry, why hasn’t everybody heard of “Lo-jack for Laptops?”  It’s a catchy phrase capitalizing on a bit of alliteration; everyone should know instantly what the product is about.  Come to think of it, maybe everyone does know about it and I’m the only one that’s clueless!

We all know about the elevator pitch right? … the essence of your business articulated in 15 to 20 seconds, purportedly the time it takes to ride the elevator to your destination.  In grad school, UC Irvine had very slow elevators, resulting in much longer pitches.  (You know the pitch where you’re sorry you asked and you wished that your office was on the 2nd floor; or that you had taken the stairs!)  I think Absolute Software Corp. now holds the world record for the shortest elevator pitch.  I tried to say it and time myself at the same time.  My tongue and eyes don’t work well at the same time (I stumbled and couldn’t even focus on the stop watch) but I think it was under two seconds.  As we move to smaller, lighter more portable technology, I’m thinking that Lo-jack for Laptops is a product whose time has arrived. 

So this begs the question.  Do you have your “elevator pitch” down pat?  Is it 15-20 seconds? Does it roll off your tongue without even having to think about it?  Do most or all of your employees know it? 

If the answer is “No” to any of the above questions, please put it near the top of your Things to Do list.  Those of you who are my consulting clients (yes … you know who you are) expect that I will be asking about this during our next conversation.

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to bring balance back to their lives and take their business to the next level.  Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

 

Copyright © 2009-2010 by Michael Stockwell

All rights reserved.  No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, or digital, including photocopy, recording, or any information storage and retrieval system or search, without permission in writing from the author.

It won’t be often that you find me whining about something that happened to me.  Fortunately for you, today is no exception.  However, I will share that the last 6 days have been less than stellar in terms of things going right.  So you don’t think this is going to end up as simply a litany of complaints or simply a “bitch session,” know that the ultimate lesson here has to  do with customer service and its ultimate effect on customer retention.

That I’m writing this entry while in Panama is germane because the last 6 days has been all about moving from Hawaii back to the mainland.  In the course of preparing for the move Johanna (for those of you who don’t know Johanna, she has been my indispensible “right hand” for almost two years.) and I completed the packing and shipping of everything.  Johanna obtained quotes and we went with the “low bid” relocation company.  That’s another story not for today.  But the relocation company neglected to tell us that we needed a lien holder’s authorization to ship the car from Hawaii to California.

When I learned of this early last Friday morning, I got right on the phone and took care of it with my vehicle lessor, GMAC … or so I thought.  I was assured that I would receive the necessary authorization Friday night or, at the very latest, Monday.  Monday noon arrived and passed with no authorization.  My next call to GMAC provided yet more reinforcement of the importance of customer service in retention of good and faithful customers.  This time I was told that they could not provide the requisite authorization because I failed to provide the required proof of Shipboard Insurance coverage.   I won’t bore you with the myriad reasons I presented to this poor Philippina why GMAC was going to be responsible for my car not make its shipboard debut.  Instead I’ll tell you that she apologized and said the she could do nothing to resolve the matter. 

Of course, being my mother’s son I insisted on talking with her supervisor, who she insisted was also powerless.  So on the way to her supervisor I got routed to Muzac hell … for 20 minutes!  Needless to say I was not happy.   But then I met Alyson Kitaoka, my angel at AAA Hawaii.  I explained to her my dilemma and she smiled and said “No problem Mr. Stockwell (hey that’s my Dad’s name … not me!) I’ll take care of this in 5 minutes.  Sure enough, within 5 minutes Alyson had faxed a copy of the pertinent page from my policy along with instructions to please issue the lien holder’s authorization to GMAC and copied me.  Problem solved!  … Not so fast buster; GMAC wanted one more crack at providing lousy customer service.

When I was selling life insurance for Mass Mutual, some of my colleagues (never me) referred to the underwriters (the men and women rating the risk on each life insured) as the “sales prevention department.”  It seems that General Motors has their very own Sales Prevention Department right there in what GMAC calls “Customer Service.”  If you don’t believe me, call (800) 200-4622.  Serena (her name is changed here to protect her from my relatives) there at GMAC decided that she didn’t like the format in which AAA provides Proof of Insurance to a lien holder.  So she derailed the issue of the lien holder’s authorization until AAA got it right.  Never fear … I have Alyson on my side!  Alyson even apologized for what was occurring, even though she had no responsibility.  She then apologized and said that it might take longer than 5 minutes this time because underwriting had to provide a copy of the “Dec” (short for declaration page – the front page of your policy with names, dates, amounts, loss payees, etc.).  I’m sure underwriting at AAA is not a Sales Prevention Department because 20 minutes later Alyson had faxed the “Dec” page to Serena at GMAC along with a polite recommendation that GMAC issue the required letter of authorization immediately.  I guess even GMAC thought they had done enough damage at that point.  I got the letter the following day.

Since it’s possible that only people who are really close to me are reading this blog, I’ll address this learning to my two kids, Jenn and Isaac, both of whom are in responsible leadership positions at firms who recognize the importance of exceptional customer service. 

  • AAA Insurance: YES!
  •  GMAC Financing: NO! 
  • Alyson Kitaoka: Priceless J

If I can get anyone at GM or GMAC to read this please take note:  There is nothing particularly special about your car, its price or performance that makes me want to drive another one.  Your finance and leasing arm, GMAC lost a fairly good customer for you.  I wonder how often that’s occurred before?  I’m betting at least once or twice … per day.  Let’s see … two per day, at 365 days per year, at roughly $30K per car, multiplied by maybe 6 car purchases in an adult lifetime … hmmm;

·         2 incidents times 365 days = 730 lost customers

·         730 lost customers x $30,000 per car = $21,900,000 lost revenues at next customer purchase

·         6 purchases per adult lifetime x $21,900,000 lost revenues per purchase = $131,400,000

That comes out to over $131 Million in lost revenues because your Customer Service representatives are not empowered, or incented, or expected to provide customer service. 

I feel better already!

 Wait!  Hasn’t GM just asked me as a taxpayer for money to bail them out? Aren’t they supposed to figure out how to fix what’s broken before they get the money?  Okay, let’s think about this.  Hell!  I don’t have to think about this one at all.  Maybe we should just let the markets work … you know … reward excellent performance … don’t reward lousy performance?  Hmmmm. 

Dear Mr. Obama ……

 

Mike Stockwell writes this blog for his clients, friends and frankly, for his own entertainment.  Mike is the founder of The Pacific Group – Business Advisory Services and works with owners and executives small and mid-size businesses in California and Hawaii, helping them to bring balance back to their lives and take their business to the next level.  Find out more about Mike and his business at: www.TPG-BAS.com and contact him at Mike@TPG-BAS.com

 

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