Time is up for short-term thinking in capitalism

Time is up for short-term thinking in capitalism

By Al Gore and David Blood

Published: November 26 2009 20:53 | Last updated: November 26 2009 20:53

Why do investors and business leaders continue to focus on the short-term and ignore the fact that businesses that think long-term end up more competitive and profitable? Behavioural economists believe they have the answer: our brains are hard-wired to think short-term because evolution has rewarded serial short-term successes such as avoiding predators and other dangers that faced our ancestors. Their survival ensured our existence – but predisposed us to the same kind of short-term thinking. As a result, even though our world is very different from theirs, long-term decision-making remains the exception, not the rule.

The global financial crisis had its origins in short-term, unsustainable strategies and actions. Before the crisis and since, we (and others) have called for a more long-term and responsible form of capitalism – what we call “sustainable capitalism”. Yet despite our collective best efforts, one year on, the capital markets seem to be reverting to business as usual.

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Change

Change has a considerable psychological impact on the human mind. To the fearful it is threatening because it means that things may get worse. To the hopeful it is encouraging because things may get better. To the confident it is inspiring because the challenge exists to make things better.

Author - King Whitney Jr.

As I complete what is less than 4 weeks of 2009 I reflect on the need for change. I have spoken with individual buyers of branded merchandise and discussed the changes they feel are necessary to adapt and progress in 2010. All have confirmed it will be a time that will involve considerable change as it relates to promotional spend management.

I too feel the need for change. We have implemented a platform that will encourage brands of all sizes to work together and bring upon a new change in how promotional products are purchased. A change never seen. A change that is sure to cause a ripple that have a great impact on promotional spend management.

Please take a moment and comment the changes you and/or your company will be managing this change. I appreciate your time and look forward to the reply.

Best Forward,

Mike Kaczmarek

IMPORTANT: Details you need to know while doing business with Promo Buying Group in 2010

Good Morning,

I thank you for viewing. This year has been nothing short of WOW! I have been talking to hundreds of companies throughout this country and the world. Buyers of Promotional and branded solutions have detailed the challenges they are facing in this economy and as it relates to their promotional and branding spend. In 2010 we will be rolling out a program that allows benefits to the entire supply chain of promotional and print spend management. This may sound familiar, to some, for we have put some awareness out mid year. We are calling it PBGDirect and it WILL be the only way one can do business with Promo Buying Group.

PBGDirect offers a great deal of benefits. The program will run off the picnicraid.com platform and extend and guarantee savings upwards of 65%-73% depending on product & total quantity purchased. As we conclude this year I ask you to take a moment and contact me so we can analyze the immediate positive impact this will on your budget resources in 2010 and beyond. This savings will provide your "savings floor". The ceiling will stretch as far as the number of buyers purchasing a given product and the number of products actually purchased. That being said it is beneficial to tell others you know about the tool so we can add more "Ants" to the picnic. I am aware there will be questions and I am available at any time to discuss. My advice is to forward questions through email, this blog or Linkedin for I am certain there will be a great deal of interest, therefore phone calls.

In closing I ask you to consider some valuable points and reflect on those challenges you faced this year with your personal budgets and the time I feel was used inefficiently looking for the best product and best deal. Consider...

• How much time you expended managing bids & vendor quotes looking for the "Cheapest price"?
• How Wal-Mart model works - Many of you have to prove your pricing to Wal-Mart or confirm to their pricing model. Many of us buy products there. If I am correct it is based on volume purchasing. You deserve someone working for you in this manner
• Do you shop sales? Shop at Costco? Sam Club? If so this will provide the same and more value.
• The benefits of having a personal Relationship Manager there to assist you when needed. No chasing or leaving vmails
• Other uses for the savings. God willing we can invite our friends, family and neighbors back to work and watch our brands thrive once again.

I have much work to do to prepare. I thank you for your time, loyalty and I am excited to work with you in 2010 and beyond. Together we can and will change the most important component of your brands presence and just as important put your community, as well as mine, back to work.

Although it speaks to Supply Management I thought this article was valuable. I am confident that if the buyers of Promotional and branded merchandise followed some of the highlights the Marketing budget would NOT be one of the first areas to be scaled back. Take a moment and read. I look forward to your thoughts.

Best Forward,

Mike

Procurement Aerobics for the Agile Organisation:

The pace at which a company, is able to adapt and evolve is dependent upon the number of new strategic options that it is able to generate and test. The agile organisation is therefore one that captures more than its fair share of new opportunities, successfully balances risk with reward and is in a state of constant renewal by redefining its “core business” in ways that open up new avenues for growth.

This definition supports procurement well in its drive to embed Supply Management as a core competency (SMCC) within the organisation. In agile terms CPO’s can distinguish between rigidity and agility within their own organisation:

Agile or Rigid?

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