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EDSR INFORMATION 07-14-2003 ` !.c w.f . kl,,..,,.. ' -- ---.- __ -_- -- --- — - - — -- - - — A .41,,.....a�.,,x :'.`' CORNER OFFICE • 4,0 iar ¢ - M By MARK SHEFFERT Winning = Innovation -Whining HOW CAN MANUFACTURERS MAKE IT? Asked to facilitate a roundtable discussion recently with 70 manu- process side—which is how to do it faster, better, and cheaper. But so what! Nobody facturing CEOs, I said I'd be glad to do it. I suggested that we call the should underestimate our ability to innovate." I thought I had permanently alienated myself session "Winning in Today's Global Manufacturing Environment." from this group by calling them whiners,but the room was abuzz for the rest of the session. The association president agreed,and when manufacturing in the federal government, Then guess what? I was invited back some the day came, I began by asking the CEOs telling you what products to produce, how weeks later to pick up where we left off. Be- what issues they are dealing with in light of many to make,and at what price to sell them, fore they all got on the whining bandwagon the global operating environment. To my as the government does for farmers?" again,I'suggested that we make a list of the surprise,they all stared at their shoes. Boy,that got their combative juices flowing! things out of their control.It was an exhaustive • With more encouragement,one CEO mus- But I went on,"How many believe that it is the list,including items from the previous session. tered up the courage to talk first. Soon they CEO's job to create jobs in America?"Nobody When we were done, I tore the list off the were all discussing why they can't compete on raised a hand.I asked,"How many believe it's easel,ripped it into pieces,and stomped on it. a global level because of excise taxes,foreign your job to make a profit for your company?" "There.These issues are out of our control, exchange rates, NAFTA, the unpatriotic use Hands went up all around the table. and we're not even going to talk about them," of cheap overseas labor. One even said our I continued, "Isn't the average pay for I said. For the remaining three-and-a-half country needs a secretary of manufactur- hours,we had a fruitful discussion about ing, like the secretary of agriculture, to the thin•s wit '. • •• • 'a ud' • protect manufacturing in America. The best innovators start marketing,selling,developing new prod- After what seemed like an eternity(al- with an existing product rather ucts and applications, and making though my watch said it was only 13 min- than free-for-all brainstorming. process improvements. We also dis- utes)I said,"Time out.I think you've got cussed strategic alliances, partnering, - the wrong guy to lead this discussion." and merging to leverage strengths, all "What do you mean?"they asked. skilled labor in the U.S. about $2,200 per under the umbrella theme of inn�ovation. I replied,"Well,when your president asked month, while in China it's about $100 per what I thought our discussion should be month? Why should I as a consumer be la ow don't get me wrong; I have a heart- named, I said `Winning in Today's Global forced to buy your products when I can buy ill felt respect for this group of hard- Manufacturing Environment.'But there must theirs cheaper?What the hell is so unpatriotic working entrepreneurs. They simply needed have been a typo in your invitations. You all about that? America is all about free enter- to hear the message that they will go the way seem to think it said`whining'not`winning'!" prise,isn't it? of family farming and smoke-stack industry if Many present were gray-hairs and no-hairs, "Can we conclude that in the next 10 to 20 they don't innovate. as mature as myself. "Let me ask you folks years, the government is not going to inter- We had a productive session, but usually some questions," I said. "Most of you will vene, and cheap foreign labor is not going to when the word"innovation"is mentioned,im- probably not be running your companies in 10 go away,but that your responsibility to create ages of out-of-control brainstorming sessions or 20 years. How many of you believe that profits will stay?"Heads were nodding. ' at off-site meetings come to mind. You know our government will intervene to equalize for- "So let's stop this stinking thinking, and fo- the ones—everyone is supposed to think"out- eign currency rates during that time? Or im- cus on what you can do instead," I said. side the box" or of"new paradigms." After plement protectionist measures against unfair "America is the land of innovation. Recently a few days of brain frying, though,everyone excise taxes?And do you really want a czar of we haven't always been the best on the returns to the same old routine. A few ideas • JULY 2003 TWIN CITIES BUSINESS MONTHLY survive,but are eventually mangled and Orville Wright,but few realize lyzed and categorized more than While there's obviously a lot to death when people fight over that their competition, Glen Cur- 200,000 patents, identifying corn- more to their process, the point is who gets credit,become scared that tis,was the first to sell an airplane, mon templates in the creative that these researchers start the in- change will make their jobs obso- to fly from one city to another,and process.His students further Bevel- novation process with an existing e or require them to learn a new to obtain a pilot's license. The oped his ideas and today the TRIZ product, rather than a free-for-all ' ,or argue over whose budget it Wright brothers spun their wheels technique (that's a Russian acro- brainstorming session about cus- should come out of. for five years, being so afraid to nym for "theory for inventive Comers and their unmet needs.The Besides, innovation doesn't just share ideas that they wouldn't al- problem solving") is widely used researchers have found that peo- happen overnight or once a year at low anyone to see theirs. Curtis by engineers throughout the world. pie work best within the con- some mystical off-site manage- believed in shared success and col- Altshuller's templates of innova- straints of a defined problem.Fac- ment meeting. It is the CEO's re- laborated with others to solve tion are the basis for work done by ing a blank slate with the label of sponsibility to create an environ- problems and make improvements researchers in Israel, who have "innovation"paralyzes most of us. ment in which innovation is just to his airplane, eventually becom- found that most successful product So let me challenge you, like I part of what people do. CEOs can ing more commercially successful innovations fit into at least one did my manufacturing CEO do that by communicating a clear than the Wright brothers, of five patterns: 1) subtraction- friends: Solve your problems by picture of some Tufure state of the In the same manner, people in removing components or attribut- forgetting the things you can't con- organization, and helping every- organizations today hold their in- es from a current product;2) mul- trol. Instead,limit your efforts to one understand how their job fits novations tightly to their chests, tiplication—copying one or more the things you can control by bein into the bigger picture of the corn- fearing that sharing them will rob existing components and altering more innovative. And stop whin- pany's goals and mission.If all em- them of recognition. Unmeasured them in some way; 3) division— ing so you can start winning! ■ ployees are in touch with the big damage is done in terms of lost op- dividing an existing product into picture,they'll be able to come up portunity. its component parts; 4) task unifi- Mark Sheffert (mark.sheffert@ with better ways of doing what cation—assigning new tasks to manchestercompanies.com) is they do,strengthening the innova- 'recently read about some inter- components to unify their func- chairman and CEO of Manchester tion process. esting research conducted by tions;and 5) attribute dependency Companies, Inc., of Minneapolis CEOs should also promote tak- Ge .ch S. Altshuller (1926-1998), change—creating new dependen- which provides corporate-renewal, ing realistic risks and sharing a Russian engineer who formalized cies between a product and its im- investment-banking, and manage ideas. History is kind to Wilbur a process for innovation. He ana- mediate environment. ment-advisory services. 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I understand that section 11 of our lease agreement on page 4 precludes any subleasing within the portion of the facility KnowledGenetica is currently leasing from EDA, Genesis and Mr. Hickman.We would like to formally request a waiver of this rule on behalf of Michael W. Geatz of Intellipatch, Inc. Michael is an enterpreneur, referred to us by Harlan Jacobs, who needs a small amount of space for a limited amount of time to get his operations going. KnowledGenetica would like to sublet a cube with electrical current, heating, cooling and lighting so he can plug in his computer and work at building up his company until he requires more space. Here is the information on Intellipatch, Inc.: Intellipatch, Inc. 13570 Grove Drive,#155 Maple Grove,MN 55311 CeIVOffice: 612 310-5246 Emergency: 763 494-8898 Thank you for your consideration. Sincerely, 2Jo h C. Roushar President,KnowledGenetica 1110 Ii{ www.knowledgenetica.com