Why Competition is So Great and What Chicago Needs to Learn

P1000253Note from Art: I love the city of Chicago.  I love the people, the energy and I love the feel of the restaurants and museums and the theaters. However, I don’t love the knuckleheaded political and union wrangling that blares from every news channel in a constant drone of finger pointing and accusations and bone-headed moves. We’re battling insane ex-governors and ridiculous retail sales tax increases in the face of a recession.  One of the latest issues is the backlash and the stream of excuses for the loss of several major conventions due to complaints of usurious pricing and strong-arm tactics.

After losing major conventions to different venues, the local politicos and the brass that run McCormick Place in Chicago are back-pedaling so hard in defense of their labor and service costs that they are contributing to the wind velocity in this already “Windy City.”

It is shameful to watch the officials and local union leaders attempt to defend or deny their usurious pricing and their strong-arm tactics. If you’ve been involved in setting up a show on the floor at McCormick Place before, you would be flabbergasted to listen to the union official on the news blatantly denying that exhibitors are bullied and denied simple things like the right to put a plug in an outlet without union help.

Bull!

I’ve been on the receiving end of having an employee mistakenly plug in a device only to have the union workers complain…stop work and call over a union official to give the booth manager heck.  Additional fees were incurred and the service went from bad to really bad.

Another year, same incident…slightly worse outcome.  There must be something about plugging things in when you work for an electronics company, but yet another well-intentioned employee crossed the union line and was observed pushing a plug into a receptacle.  Same union crap storm followed by a week of suspicious, intermittent power outages and shockingly slow response times. (OK, that was a bad pun!)

  • The reported stories of $50 per gallon coffee…3 gallon minimum, $50 delivery, 20% gratuity and extra handling and service fees are sadly all true.
  • As reported by ABC News, “A plastics exhibitor vented on a trade group website that when he ordered four cases of Pepsi for his booth, McCormick Place hit him with a bill for $345.39.”

The defense from McCormick Place, “These are the industry standards.”

In another example: “The sticker price of soda aside, it’s the labor costs at McCormick Place that rile most exhibitors.  One exhibitor at the recently departed Health Care Information show said the electrical services bill in Chicago reached $40,000. In Orlando, the same work costs $4,000.”

Mayor Daley’s response: “McCormick Place has had a difficult chore in getting and keeping shows unless they get their costs down. It’s as simple as that,” said Daley.

In true Chicago fashion, the head of the Union responds, “We’ve stepped up.”

Keep stepping, buddy.

The Bottom Line:

It’s a big competitive world out there and the good news is that businesses and in this cases marketers and convention-going firms have options.  If I’m Orlando or Vegas or any one of a dozen other venues, I’m all over the Chicago-conventions that have had enough of the expense abuse.

Sad for Chicago in the short-term, but maybe good in the long-term.  A big dose of competition and a shock to the system will either result in the right improvements or things will just deteriorate.  There are few venues that can offer the menu that is Chicago for a conference destination.  Here’s hoping for a great response.  After all, we’ve solved the Governor-picking problem…errr, I mean the sales tax problem….err…. . Oh heck, I hope we fix this one.

Good for free enterprise. Now if only there was an airline (aside from Southwest) that gave a crap about customers.  But that’s another rave for another day.

A Remarkable Display of Lousy Leadership in the Land of Lincoln

I am one of 13 million or so people in the state of Illinois who along with another few hundred million around the country and perhaps the globe, are watching in horror and fascination at the saga unfolding around the state’s (for the moment) leader and Governor, Rod Blagojevich.

In case you’ve missed the news for the past few days because you’ve been out holiday shopping or lobbying congress to bail out your finances, the Governor was arrested on a variety of conspiracy charges, not the least of which was that he appeared to believe that he could use his appointment power for the newly vacated senate seat of President-elect Obama to secure money, jobs, money and jobs for his wife, a cabinet appointment, a 501C3 Charity to be funded by Warren Buffett and Bill Gates, and so forth.

Oh yeah, if he didn’t get what he wanted, he was going to appoint himself to the vacant Senate seat, a right that is within the Governor’s power. To say that this man has a slim hold on reality is putting it mildly.

If you’ve followed this story, you’ve undoubtedly heard or read the transcripts of the wiretaps on “Hot Rod” as he has been called, indicating how he was going to use his power for gain.  The profanity strewn conversations, several of which have his wife in the background joining in and strewing profanities on top of her husband’s colorful language.

Rod was also going to use his power to fire editorial members of the Chicago Tribune, block the sale of the Cubs by Sam Zell, and fill his campaign coffers for a run at the presidency in 2016.  Again, slim hold on reality.

Growing up in the state of Illinois and around the city of Chicago, one gets used to rough and tumble politics.  The Chicago machine is perhaps not as visible and powerful as 30 or 40 years ago, but still very much quietly in control in the City that Works.

Governors in Illinois don’t have a good track record.  Rod has been charged, although he showed up for work today with his usual perfectly coiffed hair and that stupid frozen smirk on his face.  Our last Governor, George Ryan, is in jail right now for corruption.  As a teenager during the seventies, I remember watching as former Governor, Dan Walker, famous for having walked across Illinois, took one last jaunt, a Perp-Walk in handcuffs.

Well, we are the Land of Lincoln, so we have one great leader to our credit.  Now we’re the Land of Obama, and people around the country and world are hoping that he follows in Lincoln’s very deep footsteps.  If ever the U.S. needed a citizen of Illinois to stand up and do a great job, it is now.  Just as long as that citizen has not held the Office of Governor.

Due process will play out.  Rod will go to trial and have his day in court.  Maybe he’ll go to jail…or maybe he will fade into the sunset as another leader that lost his grip on reality, forgot that leadership was not all about him and tried to grab as much as he could grab and thought that he was invincible.

Lousy leaders are great teachers.  Grab a front row seat here in Illinois and get ready to feel outraged at how low a leader can go.   Remember to file this chapter under “leadership approaches almost certain to earn a new orange suit.”

Help Wanted: Great Leaders to Solve Vexing World Problems

This is what I describe as a boil-over post—short on useful advice and long on observations about the obvious.  I usually shy away from commenting on the world scene, however, I’m breaking form today. 

As is my habit on gorgeous Mid-Western U.S. mornings (that’s for all of you folks all over the globe that love to point out the temperature differentials to me in February!), I rise early, grab a quick cup of English Breakfast Tea, glance at the Wall Street Journal and then jump on my bicycle for my wake-up workout.  I suppose this morning’s paper is not much different than every other paper for the last few months, but as I said, this is a boil-over post: it’s been simmering for a while.  My positive spin on the over-abundance of miserable news is that this is a great time for leaders everywhere to ply their trade and show the world what they are made of.

Just a few of our very visible and very important “leadership” opportunities:

The Economy.  The Federal Reserve Chairman, Ben Bernanke has perhaps the worst job on the planet right now.  In what is looking more and more like a perfect storm, the Chairman must simultaneously deal with the still-unfolding housing crash, the implosion in mortgage financing, the wholesale failure of some of the planet’s alleged smartest financiers to do anything right (think Bear Sterns), record oil prices, a record low dollar value, the specter of inflation and general weakness in many U.S. and global markets.  Perhaps the only thing more complicated than the macroeconomic environment is the weather.  Oh yeah, if Chairman Bernanke’s daily dilemmas aren’t tough enough, spend a few minutes listening to the windbags in Congress posture while they attempt to blame him for everything, including the ’29 crash.

U.S Auto Manufacturers.   The headline I want to see is: U.S. Auto Executives Fired En Masse for Arrogance, Idiocy and Forgetting to Diversify their Product Portfolios.  What is galling to me is that these executives had clear visibility into competitor strategies as well as the bigger picture of energy and oil.  Did they really expect to live on the profits from the SUVs and Trucks of the ’90′s forever?  Killing an industry should be a crime punishable by ample jail time.

U.S. Airlines (except for Southwest).  Most of my work is in the Chicago-area, so I’ve avoided flying for a while.  A good friend of mine described his recent experience on a major carrier as: “something out of a movie shot in a third-world country.”  In a bold stroke, most major U.S. carriers (except Southwest) have decided to bet their survival on making an already lousy experience miserable.  I wonder what happened to the memo that said that if we serve our customers and give them great reasons to use our services, they will help us weather the storm.  Jail time for these execs as well.  It’s time for some fresh approaches from new leaders interested in running businesses that serve customers.

Iraq.  Absolutely no joking here…U.S. soldiers and Iraqi civilians are losing their lives.  This situation has serious repercussions for the U.S. and for the Middle East for years to come.  The next President will be saddled with resolving (hopefully) this nightmare.  There are encouraging signs, but it is a complex situation.  Kudos to the military leaders on the ground and the brave citizens that are working towards a self-governing, democratic Iraq.

Iran.  Hmmm, if this situation wasn’t complex enough, the leaders in this country seem to relish their ability to destabilize. 

I could keep going, but I won’t.  It’s time to stop, with just one other light by comparison leadership dilemma: Brett Favre.  As I’m writing this, my oldest son is listening to ESPN reporting on the Brett Favre saga.  Put yourself in the shoes of the Packer’s GM, Ted Thompson, who has to decide whether to fire this remarkable Wisconsin (via Mississippi) hero or bring him back and let him play in spite of having moved on once Brett announced his retirement a few months ago. 

I do have some advice for Ted Thompson, and it is based on the track record of Jerry Krause, the former Chicago Bulls General Manager who once indicated that one of his major goals was to build a championship team without Michael Jordan.  How did that work out, Jerry?

The End of the Rave For Now:

Tough times and challenging circumstances provide outstanding opportunities for leaders at all levels to test their mettle and gain valuable experience.  There have been few times in recent history with this number of complex challenges staring at us in everything that we do.  As individuals, we cannot solve these issues alone, but we can hold our leaders from local politicians to congress and the next President accountable.  We can make good decisions with our finances, demand accountability from our elected officials and challenge the leaders in our businesses to do more than focus on the short-term.  We can support our troops even if we disagree with the policies, and we can cast our vote this November.  It’s a great time for leaders everywhere to stand up and be counted.

The Raw Marketing Power of Passionate People in the Workplace

For those of you drawn to this post in the hope of finding something juicy about workplace romance, keep on clicking.  This is about romance of the professional type.  It’s about the powerful impact that someone with passion for his or her job has on the working environment and ultimately on the success of the enterprise.

A passionate employee is like rocket fuel for your organization.  These rare and valuable people build your brand, strengthen client loyalty, stimulate repeat business and energize your workplace just by their daily participation in your business. 

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