Meeting Recap - April 12, 2016

Business consultant Larry Mandelberg’s message was as clear as the title on his soon-to-be released book: “Businesses don’t fail,” said the consultant for businesses across the U.S. “They commit suicide.”

The often cited belief that if a new business can make it five years, it’s a success is not true. Every day, he said, 191 more businesses are failing than starting up. Mandelberg, who has written more than 80 articles for the Sacramento Business Journal, said all businesses have to adapt and change to remain successful. Leading indicators that an organization will not sustain profitable growth is the lack of purpose, the inability to provide consistent performance and the lack of engagement by the work force. “Purpose, performance and people,” is the reason that McDonald’s has had dominance over the fast food industry for more than 61 years.

Mandelberg, who has researched business practices for more than 20 years, said factors in a successful purpose include customer value, long term goals, and the office culture. Maximum performance requires sound operations, business development and goals and responsibilities for the staff. Good staff practices include employees understanding the work flow so they understand their significance in producing a good product or service. Engagement of employees makes work valuable for them, he said.

Businesses age just as people do. He said new start-ups often fail because their purpose is not clearly defined. Middle-aged businesses may suffer a drop in their performance. And, older organizations may be hurt by late-stage bureaucracy that stifles new ideas. “It’s not about being the best or the fastest,” said Mandelberg. “There are only eight things a business can do wrong. This is why businesses don’t fail. They commit suicide.”

President Dave opened the meeting by thanking Randy Friedman (US Navy) for the wine reception, Kevin Williams (KVIE) for the music and John Dannenfelser (JD Enterprises) for the audio visual production. The set-up crew included myself, Tom Bacon (Kidder Mathews) and Frank Quin (Ephraim Ventures). The thought for the day was given by Mik Miklaus (Integrity Mortgage). Greeters included Jaclyn Kirkwood (Children’s Receiving Home of Sacramento) and Don Ellwanger (Sperry Van Ness).

Seated at the head table were Dee Hartzog as chair of the day, Mandelberg, President Dave, Norm Marshall (Headwaters Construction), Todd Koolakian (Sacramento Children’s Home) and President-Elect Dan McVeigh (Downey Brand).

Announcements included John Wood (McGee & Thielen Insurance Brokers) asking for more volunteers for the Pony Express Marathon on May 1; Doug Crumley (Crumley & Associates, Ameriprise Financial) on the Legacy Circle on May 5; Randy Freidman on Networking Night on April 21; Past President Peter Dannenfelser II (Architectural Arts) on the Fireside on April 27; Jim Phillips (The Energy Savers) on the Yosemite Adventure on May 14; David DeRoos on the Nepal wine and dinner meeting on Nov. 1; Past President (“Emperor”) Wes Yee (Yee Dental Care) on the mystery trip on May 7; Past President Skip Lawrence on Rotarians at Work Day on April 30; Robyn DeLong (Coldwell Banker) on the Rotary/Coldwell Banker Fundraiser on April 22; and Roy Alexander (Sacramento Children’s Home) on Motown Theater Night on May 28.

Rotarians who were singled out or volunteered to give money included: Past President Rob Scherer (Dale Carnegie Training) whose picture appeared in Sacramento Magazine, gave $250 to the Pony Express Marathon and asked that the portable potties be named in his honor; Eric Solis (Wells Fargo Advisors) was at the same charity event with PP Rob so he gave $250; Jeff Setzer (Setzer Forest Products) gave $150 in honor of his daughter Callie Setzer (Setzer Forest Products) running her first marathon; Todd Andrews (Andrews Construction) gave $100 in honor of his son’s military school graduation; Dick Noonan (California State Railroad Museum) gave $100 and a banner from his visit to the Panama City Beach, Fla., Rotary club; Ron Crane gave $250 in honor of closing a deal that took more than four years; and Jim Phillips was singled out for his photo at KVIE’s Downton Abbey Champagne Caviar Cocktail Party and everyone who foolishly raised their arms as having attended were asked to give $5 each.