Capitalism 2.0: Time to Upgrade The Way We do Business

Is Small the New Big?

2011-06-12T01:46:00.004-04:00

Cancer has slowed down my CAP2.0 posts, but my spirit for a rebirth of capitalism in America is still alive and well!

My buddy Daniel and partner in CAP2.0 day dreaming sent me to a blogbost that tells me that we aren't very far away from young and new companies that will be launched with an opportunity to redefine how the bottom line is calculated.

Also, my dad who worked at a Fortune 50 company for 36 years continues to explain to me how new, young and agile companies are going to quickly emerge and compete with large corporations.

The barriers to entry in starting a business are lowering very rapidly. The young minds of today have a huge opportunity (and I would add responsibility) to shift the way we do business.

I want to be part of this movement that is about to MOVE!

Be the change you want to see in the world and let's not way for politicians to implement the change they talk about during election time every 4 years. WE can do this America!

Concious Capitalism...could it be the birth of CAP2.0?

2009-12-12T07:17:00.000-05:00

Few weeks ago we highlighted some fascinating quotes from John Mackey, CEO of the 8 Billion Dollar Retailer Whole Foods. Fast Company just published another article online. A fascinating take on his idea of what he calls "Conscious Capitalism"... Be sure to click on the link below and read the full article.

Just to be clear, John Mackey isn't Moses. "It's not like you go up to the mountaintop and God talks to you: Here is your purpose -- execute," he says.

"It is something you discover and also create." Mackey, founder and CEO of Whole Foods Market, is riffing on the gospel of what he calls Conscious Capitalism. It has been a brutal couple of months for Mackey, who simultaneously became both the punching bag of the progressives and the poster boy of the right wing late last summer, after writing an op-ed in The Wall Street Journal that railed against a government health-care option. Liberal Whole Foods customers organized nationwide boycotts, while self-described "radical conservative" Tea Party types rallied around Mackey, calling for Whole Foods "buycotts." Now, sitting in a soulless beige conference room in Whole Foods' Austin headquarters, with Mount Bonnell looming beyond the window and two protective publicists at his side, Mackey finally starts to relax.

"You see, Conscious Capitalism is a fairly new idea, but it's going to have a huge impact," he begins, describing the philosophy he developed as he built his tiny natural-foods store into an $8 billion retail beast. "I do believe it will become the dominant paradigm of business in the 21st century." Conscious Capitalism, Mackey insists, moves corporations to refocus on purpose instead of profit. In theory, it underscores the importance of all of a company's interdependent "stakeholders": employees, customers, shareholders, suppliers, community, and the environment. When all of those constituencies' interests are factored into the company's decisions and aligned, his thinking goes, all -- including, not incidentally, the bottom line -- will flourish. Read the full article on the Fast Company Website.

Tie everyone to the bottom line

2009-09-03T16:02:00.003-04:00

It hit me today why CAP 1.0 company’s underperform. There is no incentive to work harder than the status quo unless you are in sales. Why is it that sales is the only commission based position in a company, excluding high paid execs who get huge bonuses if they “hit their numbers” which is probably more a juggling of the books than anything.

Take me for example. I come in every day to work and then leave. What I do between those two points will determine only one thing, whether I keep my job or not. Yes, there is a possible salary increase, but typically it is only significant when you are promoted (i.e. you receive a new job title) which at my company is probably every five years.

So why does sales get to have all fun? If a company wants to be customer-centric, should not everyone be compensated every time a deal is closed?

I think it a CAP2.0 company you need to find a way to tie everyone to the bottom line. As mentioned in previous posts, the bottom line is something different in CAP2.0, but you still need to incentivize folks to grow the bottom line. Even in my current role at a CAP1.0 company I think I would be more excited about helping work on a new proposal if I was going to get a $1000 bonus if the deal closes. On the flip side, I think I would be more willing to focus hard on a customer issue if I knew I would lose $1000 if the customer ended up not renewing their account this year.

It's Happening....sort of

2009-05-26T12:13:00.007-04:00

Over a year ago I added Tom's Shoes to the CAP2.0 blogsite as a representation of a solid CAP2.0 company. Just a year later Tom's shoes is nationally known thanks to a national commercial provided by a CAP1.0 company. My closest friend Daniel just got his first pair of Tom's shoes and I don't consider him a trend-setter in terms of fashion. This is just the beginning....

Even today as I logon to my hotmail account I see an add by Brita that is titled "FilterForGood." I don't know if I should be excited about this new found love for doing good by CAP1.0 companies or not because the fundamental economics that are driving these companies are the ability to grow the bottom line. The bottom line being calculated in numbers. It kind of reminds me of the frat boys at U of M. Once they get to college they rush the fraternities as they trade their pocket protectors for the latest from Abercrombie and Banana Republic. They literally redo their image over night. But is that a bad thing...?

Let's wait and see. I am leery, but it may just because I wasn't a frat boy and I despised the like because they were more about getting the cheap hookup, then any sort of lasting relationship. But some frat guys mean good. They are truly seeking community and male companionship. So maybe these companies are truly having a change of heart. Although, I will be the first to pull off the sheep's clothing to find the big bad wolf.

One thing we can say objectively is that the CAP2.0 movement is under way and this couldn't be a better time for us to upgrade the way we do business. America is scoffed at for her consumeristic and egocentric ways. This is a time for lady wisdom to take the ear of american business. Are we listening, do we see the writing on the wall with the current way of business? Are we willing to risk what has "worked" in hope to create something new?

Let's upgrade the way we do business and never turn back. This would make great-grandma proud...no doubt.

The Heart and Blood of CAP2.0

2009-04-25T14:24:00.003-04:00

The current state of CAP1.0 is fueled by money and motived by greed. Investments in future growth evaluate the risk to the bottom line, not the health of the individual, community or environment. That's just plain fact these days.

Where CAP2.0 companies will differ.

The blood of CAP2.0 companies will solely be empathy, moved to do good for another. It will not be acceptable to harm another, a brother, a competitor in hopes to increase organic profits by 8% annually. CAP2.0 companies don't measure success by simply numbers in a corporate balance sheet or financial statement. Rather, CAP2.0 companies look to bring out the best in the world. Actually, CAP2.0 companies look to empower others to find the best in themselves. Empathy. Empathy. Empathy.

Capitalism 1.0 looks to find value in attempt to monetize those assets. It's quite simple. You put a dollar in and you hope to get a $1.10 back. The math used to define a good return in CAP2.0 companies happens to be much more complex to measure. You put a dollar in and you hope to get a smile in return. The greatest satisfaction is that with just one dollar you were able to raise hope and joy in another. If that joy can be passed on to two others and then 4 and then 8 and then 16 and then 32....you see, the investment is so much more and the return can not be beat by any high tech stock that gets bought out by Oracle or Google.

Empathy. Empathy. Empathy. According to Wikipedia: Empathy is the capability to share your feelings and understand another's emotion and feelings. It is often characterized as the ability to "put oneself into another's shoes," or in some way experience what the other person is feeling.

Empathy. Empathy. Empathy.

Greenfield Village Anyone?

2009-04-22T22:56:00.004-04:00

I am sick and tired of being sick and tired. What do you think the percentage of adults wake up every day to dread their job. Probably a large majority. That deserves a good old: What the CRAP?!?!?

We're leveraged my friend, leveraged. It's kind of like the american dream has us gripped by the balls. We aren't happy. Let's be real, we are NOT happy. Happy is definitely a yuppy word, but I think even Ocean (my now 3 year old) can distinguish between times when he his happy and times when he is not. So why the crap dude, what's our problem?

Here's my current theory. Community has been turned up side down thanks to the spread of the American Dream. Someone got smart and decided to print a lot of paper money and issue debt to people like it was water. What that allowed was for more random Joe's to go to that big college and buy that big house and have a couple of big cars. What Joe didn't know was that to live that sort of life he has to have a big paying corporate job. So most of the guys I hang around with fall into that category.

What is it that we gain a home and lose our soul? For those out there with homes, what were the top three things you and your real-estate advisor focused on while looking at homes? Number of bedrooms, floor plan, style, cost...etc? Do we find it odd that we don't at all consider our neighbors? I know we do from a socio-economical perspective because there is a concern for resale. How many people do you know moved next door to a friend and living next to that friend was more important than whether it had an attached garage or not?

So college, to career, to home, to kids, to dead end....or at least a lot of daily grind which seems far from the abundant life we all want to experience. I hate to harp on a poor condition, but I think understanding the root cause of this suffering will open our eyes to a renewed way of life that is right around the corner. The thing that is right around the corner is called community. We all want it, but few are finding it these days. We are more transient than ever and the place we called home is quickly being erased from our memory bank.

So where to brown cow? Back to the farm? Maybe to a different planet? I suggest we give up what we thought was the dream and invest it in what we know to be the dream...community. I am not talking socialism, I am talking good old fashion doing life together. I think churches are understanding the power of gathering, but naming your place of gathering "Insert Tree Name" Community Church doesn't assume you got it figured out. Your building may hold 5,000 and your budget may be larger than the state of Texas, but are people communing? Are they simply doing life together?

I like MLK, have a dream. My dream is to see the dreams of those around me realized. I think this will not happen until we get back to doing life together. We need to learn to be a village people again. We need to regain the soul of community. We need to give up our lots to enter into the promise land. My house is listed on the market right now and I am eager to take a step in the direction of doing life together with others. None of this say hi on Sunday after church and once a week in a small group session for an hour. None of this fake relationship building over the internet that helps up grow in knowledge of one another, but miss out on working the fields together.

Is anyone else sick and tired of being sick and tired?

That’s not what companies are about!

2009-02-20T11:58:00.005-05:00

Near the end of the following clip the news anchor quote “That’s not what companies are about!” illustrates a fundamental difference between CAP1.0 vs. CAP2.0. Please Note: I borrowed the term "fundamental difference" after hearing it in every other sentence during the presidential debates....lo siento.

http://www.youtube.com/watch?v=EncwVVJ4-GU&NR=1

Correct; companies are not about the benefit of it's employees today, but its founders would say otherwise. Today, they are about greed (i.e. maximizing shareholder value which means the stock price going up) and that is not working and will not work if we want to grow in terms of sustainability. Americans, I plead you, do not allow this greed mentality grow in your hearts and minds. Companies are institutions that should provide for its members. Think about it this way, would you send your kids to a school that ONLY cared about your daughter’s score on her math test and her ability to find the verb in a sentence? Or how about joining a church, temple or any other religious institution that is only concerned with making sure that the religious law is enforced and followed by every member?

Please Americans, let this spirit of greed pass you buy, do not get sucked in, pray against it. Henry Ford laid it out like this: “There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.” Ford was about generating wealth in America through wage distribution, not through a rising stock price. As the company prospered, so did the workers. And if the workers prospered, the company was successful. The current attitude is that prosperity is determined by a stock price, not wage increases. What if major news outlets started reporting annually the average pay increase within each company and that was an indicator of the health and current prosperity of each company. What would that look like?

CAP2.0 Companies will rule the world. Why am I so confident?...Well, it’s because people make up the equity in a company. They are the ones creating, handling and delivering the goods. My theory is that once a CAP2.0 company joins the market it will suck up all the good talent because it treats its people well; leaving the others to suffer or plea for government bailout. It lives out the principles that make up a CAP2.0 company and will deliver on nothing less. Pepsi took 40% of the soda market from Coke when they joined the market just by offering more volume of soda for the same price. How simple. CAP2.0 companies will look to profit “its people” and the environment and community it lives in along with those who are less fortunate around the globe. The goal will NOT be to grow the stock price on 666 Wall Street, because I am not even sure if a CAP2.0 company would want to buy real-estate on such a corrupted (in terms of greed) block as wall street.

Growing the bottom-line is a CAP2.0 will look different. The purpose of growing profits will be to pour more resources into the ultimate mission of the organization which will be rooted in love, hope and peace. For example, I envision a CAP2.0 water bottling company investing 10% of all revenue (not profit) in building wells in Africa so families there can have easy access to clean drinking water. CAP2.0 companies aren’t satisfied with the status quo and until we have prosperity for all, CAP 2.0 will keep burning the midnight oil to accomplish its mission.

Like this post or not – Start sharing your thoughts!!!! Dialogue is the key to confession, redemption, healing and moving on! Let's continue to dream dreams and share them with another. From there we can start living them out.

Was Ford a CAP2.0 Business gone greedy?

2009-02-18T12:11:00.004-05:00

I was shocked to learn of some well known Henry Ford quotes which now have me rethinking whether the CAP1.0 companies of today are just CAP2.0 companies gone wild and greedy?!?

Here are some quotes from Henry Ford that got my world a rockin' this morning:

A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.
A business that makes nothing but money is a poor business.
An idealist is a person who helps other people to be prosperous.
Time and money spent in helping men to do more for themselves is far better than mere giving.
There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.

I think bullet #2 is probably my favorite for the week. Henry Ford was able to see that money was just a result of providing a product or service that the customer desired. Henry understood that money aimed at serving men and women to do more for themselves was very important and I would go as far to say as a key part of the bottom line. Henry even said that a business should be focused at growing the pocket book of the employees which would seem to today's CEO as directly opposed to keeping the lowest cost possible. But if your bottom line is bringing benefits and security to the people that make up the organization, then yes, that should be the focus.

Where "they" have gone wrong.

(1) Large corporations have decided that wages and benefits (like pensions) are are cost that is expendable and should be minimized. This has lead to 3% raises and lackluster bonuses. The long-term security provided through pensions have been replaced by 401(k)'s that many people don't even invest in. Even if they did, look what Wall Street has done to all that money.

(2) They forgot that there role is to serve the customer; not take advantage of them. Rather that creating products and services that strengthen individuals and build up community, we have been led astray to create plastic products, food that is made in a lab and better yet, these companies allow you to charge this on a magical card that has an interest rate that not even God could charge.

(3) They didn't listen to Henry Ford when he said, "A business that makes nothing but money is a poor business." I think the greed in the market is starting to erode from the inside and out and we may be better off letting it die, so that we can renew with thoughts and ideas of those offered up by Henry Ford.

I'll close with one last Henry quote that I think should be posted throughout every cubicle and office at GM, Ford and Chrysler: "Failure is simply the opportunity to begin again, this time more intelligently."

CAP2.0 Leaders need to get some Jesus

2009-02-08T13:59:00.000-05:00

CAP2.0 leaders need to get some Jesus like MLK, Ghandi, Mother Theresa got them some good old fashion Jesus. A great place to start is to turn to the four gospels (Mateo, Marky-Mark, Cool Hand Luke and Johnny Boy) and get a bible that has the words of Jesus in Red. That way you can cruise through all the gospels in probably under an hour.

I am not saying CAP2.0 leaders start going to church, and I am surely not saying they get one of those christian fishes for their back bumper. I am not even saying to find religion so you can be a "servant leader."

Go find Jesus and study his business of bringing people into his corporation, the one that he refers to as simply the "Kingdom of Heaven (or God)" (KOH, Inc.). And as you are reading, repeatedly ask yourself some simple questions:

(1) How did he interact with his core 12 employees (the disciples) and how did he lead and mentor them?

(2) How did he communicate and guide the mission of Kingdom of Heaven (KOH), Inc.?

(3) How did he take on those who opposed his way of doing business (these people were mostly the Pharisees, but also the Romans)

(4) How did he look to grow KOH, Inc.?

Believe me, I am no genius in saying that Jesus can model a new way of doing business and taking on the current strongholds of today. Many people have used his words to guide their opposition to the status quo and to fuel their promotion of a new way of life.

I'll keep this short and sweet so you can start reading the words of Jesus as documented in the four gospels. I hold true to the words of Jesus in Johnny's Book (10:10): "..I have come that you may have life, and have it to the full." I live for the day that CAP2.0 companies take over the marketplace and the CAP1.0 companies fall faster and harder than the temple in 70AD. I will shout jubilee..jubilee!

I see a possible book title founded on this post...Jesus for CEO.

CAP2.0 is going private...sign up now!

2009-02-07T06:22:00.003-05:00

I am not sure who follows this blog other than Daniel and Jeff, but I have decided to take my thoughts a little more private. I have spoken to several people over the last week and they said they share similar views, but just aren't that open to expressing them publicly, especially through a blog that everyone and their mom can get to with a simple google search.

So, if you would like to follow this blog let me know ASAP so I can add you to the list. I think I may need your email address to make you a viewer. Post a comment to the blog post and I will add you. I plan to make this blog private next Saturday, Feb. 14.

I encourage everyone who wants to change the way we do business engage in the discussion. I have very few answers, but collectively I think we can start painting a different picture that is motivated in doing good....for all.

-Phil

One Difference between CAP1.0 vs. CAP2.0

2009-02-03T20:47:00.003-05:00

CAP1.0

- Executives are the ones who have been there the longest and if you are good, you end up in middle management

CAP2.0

- There's no titles, but there are clearly defined roles that are based on people's strengths and passions...which usually go hand in hand.

Back to CAP2.0...baby steps

2009-02-01T07:34:00.008-05:00

So I have been a little distracted by what I see as blatant disrespect and irresponsibility by CAP1.0 companies (as expressed in my last few posts), but I think most people have grown to expect very little more than that from big corporations.

I think the more we look to the past and current state of our economy, the more distracted we will be as we search for a much needed better way of doing business. Today's blog consists a list of steps or actions for those who are looking for a new way of doing business.

Step 1: in pursuing CAP2.0 is turning off NPR and start some day dream believing.

The old constructs must go, but there will always be a temptation to hold on to what at one time "worked". We must dream dreams and try to bring them down into our tangible reality.

Step 2: Understand that Obama is not the answer. (although he did get my vote over McCain)

I think this became clear in a phone conversation with my wise Father yesterday. He basically said that this strategy of "buying ourselves out of a recession and into prosperity" is the same old, same old. Don't you recall Bush's statement after 9/11 urging citizens to put on their consumer hats and go out and shop. Let's be real, Obama's plan is to have the Federal Gov't put on the consumer hat and go spend/build. His administration would rather entrust the Federal Gov't with our tax dollars, than us, the citizens. Just a side comment, if the Fed wants to go green and save green, don't build anything new which is the worst environmental practice and tough on the wallet. So first they gave bail out money to the corporations dying in the Financial Services and Auto Industry and now they are going to give the Government a crack at being the savior to our economical woes. This could prove to be a great strategy in getting stock prices back up and putting people back to work (or keeping them there), but I think it may do little for changing the type of work and the bottom line, is still the bottom line.

Step 3: Put your money where your mouth is.

We can bitch and mown (pardon the strong language) all day on how we don't like what we see and we can dream up cool new ideas, but the time is now and there are simple ways for those seeking CAP2.0 to start voting for a new way of doing business. I propose (actually my bro-in-law Chip told me this 5 years ago) that each dollar bill spent is a way of casting your vote. Here's an example: I can keep expressing frustration about Dow Chemical's horrible environmental practices which may be the root cause of my cancer, but how many plastic products do I consume every year? You see, capitalism is a two way street and ultimately the consumers determine the traffic flow; albeit corporations have no problem adding some lipstick and a pushup braw to their product to lure us in. Let's not be fools and let's think before we cast our vote each day; spend those benjamins wisely!

Step 4: Think BIG, act small.

If you are like me and are married with a couple of munchkins running around at home; quitting your corporate day job to take on the "next big idea" just isn't possible. But I think it's important to follow Step 1, but in little bite sized chunks. Although this pace of doing things doesn't jive with my go, go, go personality; it's a healthy, realistic approach; it only took me three years and a wife to figure that out. Another personal example for how I have been able to think big and act small is starting a ministry at the Ann Arbor Vineyard that is aimed at encouraging and practicing environmental stewardship within the church and community. I'll admit, I first was a little distracted by wanting to make the church carbon neutral, but two years in and I think we are gravitating towards the sweet spot of biting off just enough to chew. Coming this summer we will be investing in growing an organic garden together.

Maybe CEOs can be our Lords and Saviors?!?

2009-01-30T15:29:00.003-05:00

Today I read an article that had me shaking my head...again. The article mentioned that the world's business leaders and policy makers were going to gather to quote: "...discuss how to minimize a recession and ensure global prosperity and stability..."

I am so thankful to know that my company's CEO will be there to come up with a game plan to ensure that the world's prosperity stays in tact.

Are you kidding me?!? So the same CEOs who bankrupted many companies, continue to lay off a standard 10% of their workforce, who ask for government loans so they can go even more in the red...these people have the power and know-how to bring prosperity to all?!?!?

I say it again, are you kidding me?!? How are 50 to 70 year old white men (mostly) who are more concerned with upholding the plummeting bottom line of their corporations so that their majority shares have some value before they sail off into retirement going to save the economy?

I say it again and again, are you kidding me?!? If we are going to talk global prosperity, here's an idea. Cancel this very expensive event and send all that money to Africa to build wells which cost $7,500 a piece. You know how much clean water you could bring to the world? Let's talk about global prosperity, not Western prosperity for the rich people of the world; me included. Instead: the airlines, expensive hotels and nice restaurants are going to get the cash from the event and the CEOs get to grow their egos as they contend to be the problem solvers of this "economic crisis". We don't need smooth talkers and big ideas, we need calloused hands and softened hearts aimed towards those who need in the most.

I say it again^3, are you kidding me?!?

Thanks for nothing...see you never!

2009-01-21T14:42:00.003-05:00

I feel like my life is like red hot lava lying beneath a fragile thin surface and just about to explode. How's that for starters?

Yesterday I learned that my dad was "forced" into retirement at his current employer (a fortune 50 company) last week.

So my Dad who just turned 60 last month headed to work at his usual time (6:45am), like he has done for the last 30+ years and counting. After chipping off the the ice on the windshield he headed down Saginaw road for roughly 4 miles, passing through about 10 traffic lights. This was a route he traveled an estimated 20,000 times (my math may be a little off).

After about 8 minutes he entered the plant, parked his truck and headed towards his office. When he got to his office he noticed that all his belongings were nicely packed in boxes and there was a gentlemen standing in office awaiting his arrival so he can escort him back out to his car. This was his employer's nice way of saying thanks, but no thanks. So just like that, over 30 years of service to a cause and an organization that he has given his heart, soul and time to, and it's over. No celebration, no saying goodbye to work colleagues, no wishing anyone well, no balloons, no cake and definitely no collecting $200 when passing Go. It's all over.

Are you effin' kidding me? How can you devote your whole life to something and then when that something decides it's time for you to move on, there's no thank you, no party, no nothing! And if you were to ask his boss or the VP or the CEO, I bet their response over this unapologetic lame departure of a dedicated employee would be: "No hard feelings, it's only business." Does anyone else see how ridiculous this is!

I am sure many will argue that you need to look at the bright side. Employer F.U. provided your dad job security, health benefits and income that provided for a family of seven for many decades. You should stop being selfish and just be happy...be thankful. Just take a look at your education, it was largely impart to the industry and the wealth Employer F.U. brought to your town.

I will admit, my words are being driven by an attitude of distaste and disgust, so time will tell whether my honest response to my dad's parting from his life long employer is justified. I don't want to wait to age 60 to find out for myself.

God Bless and Get out (of Corporate America)!

I was saddened today...

2008-12-22T17:03:00.002-05:00

I was saddened today by the voice of my father during a phone conversation I just had with him about his long-term employer, Dow Chemical. To give you some context, when I was a kid, and even as recently as last year, my dad always had a huge smile on his face when he spoke about his work/job. Man, if you asked him one simple question about his job, he would give you an ear full on how much he enjoys what he does every day. You would have a hard time not smiling back at him because he would reflect so much joy.

You see, my dad's job satisfaction never seemed to wilt; it was never fickle. Ever since joining the corporate world at age 23 I remained hopeful that one day I could share in the same joy that my father has continuously experienced throughout all these years. For me, albeit my career has brought much growth it terms of knowledge and skills and even compensation; I still couldn't use the words that I have heard my dad use for the last 30 years, the words: "I love my job....I just love what I do."

Still today I can recall two characteristics of the self portrait that I drew in a book in 1st grade of what I thought I would look like at age 25. One, I had a mustache, like my dad had at the time (1987). The other thing that I recall drawing is a black hat with a red diamond. The red diamond being the logo for Dow Chemical. I wanted to be just like my dad, I wanted to have a big family and have a job, but not any job, one that I could tell my own son every day without flinching that I love what I do.

My dad's exact words today went something like this, "It's just not fun anymore. I can't take it anymore." From my dad's perspective the company has lost its focus as a family business, and transitioned to a shareholder business. It's no longer about the people who make up the company, it's the people who own the stock, who have stock in the company. So really, the few people at the top with the bloated salaries and even more bloated bonuses and stock options that have the most stock in the company.

So I guess the reason I am saddened today is that the very smidgin of hope that was cultivated deep inside of me having witnessed my dad's love for his job over the years, the part of me that remained hopeful that I too could find satisfaction in corporate america; well, it just got trampled on. The most difficult part about this whole story is that tomorrow I have to go to work.

Balanced Budget: The Starting Point

2008-10-27T07:41:00.003-04:00

What is the driving factor of our economy? Simple, just recall one of President Bush's charges after the tragic 9/11 events. Answer: SHOP. By Shopping, goods and services are exchanged for the blood of our economy...dollar$. The problem with all of this is that most households don't even have a family or personal budget. So it's a free for all. We all have more access to credit than we could even spend, and our Federal government is doing a great job of leading by example with their billions of dollars they are borrowing from China to finance things we don't have the cash for.

It will be very difficult to grow the concept of CAP2.0 in the hearts and minds of people if we do not first take individual responsibility over our own finances. I am by no means an expert on debits and credits, but I was very fortunate to meet a great friend (Daniel McCollum) during my Accenture days. Daniel has challenged me over the last three years to give up on living an ordinary life that leads to lack of passion and discontentment. I am far from arriving and I have become more discontent over time....so the jury is still out on whether we are heading in a better direction; but I have to believe that I am getting closer to the treasure buried in the field of Capitalism and that by not changing paths things will be very devastating.

Since hashing over topics of life with Daniel the past few years, mainly over coffee, I learned that a key to living an extraordinary life means that I need to remove this big boulder of debt in my life. The reality is many Americans have two cars, a mortgage and some lingering low-interest college loans. These are the people who have "Made it in America." I am one of them, so is Daniel, and you may be too.

The problem with this system is once you have been given the luxury of taking out debt to buy your two cars, house and college experience, you are indebted to your lenders. It appears that you own two cars and that beautiful home in the suburb which took your parents 15-20 years to get, but you don't. Once you finally own your cars they will probably be worth 20% of what the purchase price was and about your home value...that's another beast to tackle in a different blog post; but the recent recession has made it clear that we shall not trust in equity appreciation in the real-estate market.

I recently heard that Jesus talked more about money than he did heaven or hell combined. Interesting... How much are you and your wife, you and your friends talking about money matters? Start with a baseline of money coming in (green) and money going out (red). I have a great budget template that Daniel and I have refined over the last three years to get you started...just ask for it. I will admit that I am not a quickbooks type of guy who tracks every receipt; I am quite the opposite. I probably review my budget twice-a-year. Actually, March 2008 was the last time a reviewed my budget.

BUT, I can tell you that this budget combined with a good friend who has been willing to challenge my financial perspectives has in the last 3 years lead me to pay off both my cars, save close 30k in my 401k and ultimately bring security to my family in a time when things are shaky for most. I must add that my wife stays at home with our two children and we have been living off my salary since we married 4 years ago. We are definitely blessed, and I attribute a lot of it to having a budget, averting debt and keeping faith that God has a plan for us, not to harm us, but one that will allow us to prosper into the creatures we were created to be.

Let's tackle our debt..together!

-Phil

It's almost over...

2008-10-24T06:38:00.005-04:00

"It's almost over..." was my pitiful sigh of excitement about the workday coming to a close which I shared with an elevator acquaintance and probably work colleague. The reality is that it's NOT. It's 6:40am on Friday and unless there is an unforeseen illness that strikes my wife and kids or possibly me in the next 30 minutes, I will be heading off to work...again.

Ever since I stepped into the business world commonly referred to as Corporate America, I have not heard a single soul say "I love coming into work every day." Actually, I hear quite the opposite. I too am on that side of the spectrum although I try to squeeze out the good in my job and remain positive...to little avail as most of my close friends know. I will tell myself repeatedly that this job provides for the well being of my family with a nice home, good healthy food and great place to live. I feel so ungrateful....

I think the reason why people do not like their jobs (i.e. roles in our society) is because we (not everyone) have yet to break free from the curse of toiling the land. This curse has left us pursuing things that will not last while we unfortunately neglect the talents and passions we were freely given, and when they are used, will bless others and thyself.

The weekend is almost here (Hooray!!! No work!!!)...but again, it too shall pass come Monday morning when I will have to ask myself if those sniffles I am experiencing could be contagious and maybe I should just stay home and play it safe.

Bottom Line: We need to upgrade how we do business

2008-10-13T06:34:00.001-04:00

Doesn't it seem every year everything is upgraded? Every January in Detroit there is the annual Auto Show that unveils each new car model presented by all the big automakers. I happen to be in software where I manage the release of our flagship product where we have two version upgrades a year....assuming we can get through QA. Every product sold and service provided seems to reinvent itself almost every year; if not minimally get a facelift with a bunch of new slogans thanks to marketing. So I think the first question we should be asking ourselves is why have we not seen a change in our capitalistic way of life...in how we do business? We have definitely seen a change in the value of the dollar due to an annual inflation rate, but it doesn't seem to have impacted the way businesses calculate the bottom line.

The charge of this blog is to engage with a community of folks who want to see a new way of capitalism and economics emerge that will not be satisfied with the current status quo. The topic of conversation will be discovering CAP2.0 and how it is to be played out. After having witnessed what was considered almost 8 years of economic growth evaporate in a matter of 7 sessions on Wall Street, I think there is no better time than now to challenge the systems of today in hope to stumble across a better way of doing business. I believe the prophet Isaiah when he says young men (and I add women) will dream dreams...I just hope that my generation and others are willing to share those dreams and push forward to live them out. Come...push forward with us as we look to seek out a new way of doing business here on earth...as it is in heaven.

Let's dominate together, Phil