Our New President- A Significant Day in History

Yesterday was a historic day in the history of our nation. The election of Barack Obama as our next President is truly a turning point in history. In a nation founded on principles of liberty and equality, the election of an African-American President truly signifies the realization of those principles. Just in our lifetime, a nation divided by race and injustice, has suddenly become energized in proving to the world that we are truly a successful model for a government of the people. And, a people represented by every race, ethnicity and religion. We are a nation of tolerance and perseverance; a nation of free thinkers and creativity, a nation sets an example for human rights and justice.
While yesterday was a landmark, today brings the reality of difficult times ahead. We have chosen a new leader to face those challenges. We need to take those same energies evident in the election process into a far more difficult process of consensus-building in finding solutions that instead of being politically expedient provide our children and their children with a sustainable model for success.
Let’s be similarly involved and engaged in making a difference at home, in our work place and in our community in re-building the energy and spirit of being great Americans, together in purpose, grounded in the values of life, liberty and happiness.

Should we Dwell in the Doldrums of the Economy or....

This is a time of unprecedented increases in food and energy costs, coupled with lowered consumer confidence and declining stock and real estate markets. Add international terrorism and instability, we've got quite a challenge in front of us. In my opinion, a lot of what we see today is the result of irresponsibility. Not to name names but, what have our political leaders done to address long term energy issues, health care costs, unwise lending AND borrowing practices. Critical issues go unaddressed due to the political expediency of getting re-elected and the electorate let our leaders get away with it. When was the last time you wrote a letter (or email) to your Congressman, your President, your Governor? When was the last time you got personally involved in voicing your opinion to those you entrust with your future. Unless our electorate becomes more pro-active in forcing our leaders to address real issues and come up with consensus for real solutions, yes, we will become the victims. So, in the next few months leading up to the election, probe the candidates on issues important to our long term future. Vote with your minds, not your hearts. Take action to minimize risk in the short term. Look for long term opportunities as markets bottom out and keep a pro-active, positive attitude.

Our Philosophy on Giving Back to the Community

As our company has grown, so has our presence in the community. Since part of our Vision is to be the "supplier and employer of choice in our marketplace", a higher profile in the community helps us move closer to meeting our vision. That is the positive result of a higher profile. One of the negative aspects of being known, is that we receive a plethora of charitable solicitations that are disproportionate to our ability to satisfy even a small percentage of the solicitations received. The causes are all worthwhile- many are personal requests, some are customer related charitable requests and most are local community-based. Our company's culture is grounded in giving back to the community we serve, but how do we approach giving so that we give and stay profitable.
Here's what we try to do: First, each of our manager's is encouraged to be involved in some community activity. Giving of one's time and the company supporting that commitment, will reap rewards for the individual, the company and the community. Second, the company has adopted a primary charity- The Children's Cancer Foundation. This organization meets several criteria: 1. Locally based; 2. Low overhead so over 90% of dollars donated go to the root of the cause; 3. Many of those involved are food industry based (the grocery industry is the major supporter of this organization). 4. The cause is noble and touches families and children.
By choosing a primary charity, we are able to devote the majority of our charitable time and resources and make a more significant contribution to one cause rather than have a very minimal impact on many causes. That is not to say that others are totally neglected or ignored. The rank criteria for other than our primary cause is as follows: 1. Support for our people's causes. 2. Support for our customer's causes. 3. Support for local community causes. 4. Support for causes that will help the company expand its presence.
In the last several weeks we demonstrated our commitment to the community. The Saval Foodservice Children's Cancer Foundation Golf Tournament gave us an opportunity to spend the day with our vendor and customer community in an environment of comraderie and professionalism. We also raised over $10,000 for the Foundation. The week before, we sponsored the Maryland Hospitality Educational Foundation golf tournament. They raised a significant amount of money for scholarships for those pursuing an interest in the food industry.
The more we are part of our trade community, doing good things, the more we will be recognized as a team player within the industry. Tangible business related results are continually borne from these involvements. I can give countless examples in past years and even over the last two weeks, which directly resulted in our company just giving a little of ourselves. These activities may seem like a lot of work and expense, but giving back to the community and being involved in our trade is an integral part of our vision and is just the right way to be.

My Perspective on my Trip to China

I'm back after 12 days in Hong Kong, Xian and Beijing. When I left diesel fuel cost us $3.87 per gallon. Yesterday it would cost $4.57!! There is no doubt that many of our customers are feeling the double whammy of higher costs and lower head counts. We need to keep plugging away (and I know I sound like a broken record) but we need to continue to prove our value to our customers in helping them with battle the effects of the economy.

Traveling to another country truly gives you perspective on what we have here. My travels to China were a confusing mix of contrasts. Great wealth in Hong Kong, a booming economy in Beijing, the innate poverty of the masses, the overabundance of labor, the human tragedy of an earthquake, the sense of tradition politically and religiously, the desire to learn, the desire to prosper, the unique culture, the Westernization of a Communist country. I left China barely able to comprehend the future of this huge country.
What I do understand is that unlike in the US, when a dictatorship wants to flex its muscles it does so in an instant. The immediate prohibition of all foreign entertainment channels taken off the air during the period of mourning, the candor of the guides that they "could not talk about that" when a sensitive issue was questioned, reminded me of the totalitarianism. Yet, the anarchy on the roads, the aggressive capitalism, the construction cranes everywhere, made me wonder how even a dictatorship was going to control this crazy growth without losing their grip on a population with raised expectations.
All I know is we are so lucky to live here in this country at this time in history. In China, I heard again and again, the admiration and curiosity of what it’s like to live in America. Our appreciation of what we have, and the way we work to preserve our democratic society will determine our destiny.

Why do we avoid conflict? It's easier in the short run. We like to be liked. We feel bad when we hurt people's feelings. We hate having our feelings hurt. We need to protect our feelings. We don't want to stir the nest. We can still get around the issue and have a more pleasant environment.
Are long term relationships at work and/or home successful because we let things go? Is it easier to accept things as they are rather than changing them?
Even as leaders we struggle with these questions. We say we pick our battles, keep perspective, prioritize the issues we want to confront and solve.
I look at our President and question our foreign policy, yet keep coming back to the above questions and understand why conflicts need to be confronted.
What do they say- "let sleeping dogs lay". Well, that is only true if that dog doesn't prove to be a threat to our life and liberty once awakened. Do we let terrorists bent on our destruction, assemble, train, buy arms, bomb our cities, our ships and our embassies? Of course not, action needs to be taken and our country certainly has.
In our own lives we are constantly met with potential conflicts. Most we avoid since the consequences of confrontation are greater than the cost of avoidance. But, many of the conflicts need to be confronted, since the long term costs of avoidance are resentment, distrust and unhappiness. The question then becomes how do we handle conflict. How do we confront conflict and assure a resolution that will enhance rather than destroy a relationship?
In my next blog, I will discuss conflict management and the lessons I have learned the hard way and the lessons I am still learning to this very day.

I’m excited about what’s happening at Saval's two operating entities. Despite the doom and gloom about the economy, we continue to do the right things in growing our business. While increased energy and food costs negatively impact consumer decisions on eating away from home, there are opportunities for Saval’s two operating companies that should pay big dividends. First, if consumers eat out less they will be buying more at the grocery store, hence helping grow our business at the major grocery chains we serve. Second, if consumers who do go out decide to spend less, they may decide to go to California Tortilla instead of TGI Fridays, or eat pizza instead of shrimp. Again, many of our customers are carry-outs, delis, diners and pizza shops that cater to this consumer value proposition. Third, the upscale segment we have had recent success at penetrating is largely recession proof, as wealthy and older consumers still eat out and spend. And, fourth, many of our customers buy from the big three national distributors and Saval, so there are many opportunities to pick up additional items for customers looking for alternative suggestions in maintaining profitability. If we continue to work harder, with integrity, and provide value to our customers we can continue to grow our business even in tough times.

Conscious Business

I am excited to have the opportunity to better the lives of the people I work with, while working on making myself a better person and leader at the same time. I have become a devotee of the principles set forth in Fred Kofman's book "Conscious Business". To date we have had all of our senior leaders read the book and have followed up with discussions, email summaries and presentations to reinforce and practice his teachings. We are now ready to share Conscious Business with our next set of managers and the future leaders of our company. Our senior managers are taking on the task of mentoring our next group of "learners" over the next year through a similar process of reading, discussing, practicing and reinforcing. Our goal is to continue to develop the unique culture we have here at Saval through the personal development of our people in going to the work place with integrity and responsibility, trusting their fellow employees in an environment of honesty and authenticity, so that we can communication, negotiate and share commitments in creating "success beyond success" in both our work and life. My excitement comes from the shared commitment of my senior managers to take on the humbling task of facing their own personal truths and in helping others face theirs, resulting in a very special place here at Saval Foods.

How will consumer's respond?

Every day seems to bring more daunting economic news. Fuel costs have reached unprecedented levels, loans are scarce, food prices have skyrocketed, houses won't sell, and stock prices fall almost every day. As the economy spirals downward, how will the consumer respond? Will we cut expenses, drive less, go out to dinner less, buy only what we absolutely need? My theory is that for the typical middle class consumer whose job is relatively secure, little will change. If companies start to sputter and unemployment begins to rise then job insecurity will lead to drastic changes in consumer behavior. Until then, in my opinion, there is a tolerance for rising prices and a slumping housing market. Our economy had a good run for 5 years, it's time for a leveling off, even time for a slump. For the next few years, we will see a glimpse of reality- things run in cycles, good balances bad. That's the way the world turns. We'll be just fine.

Paul's Rules of Courtesy

There are a couple of things that I think are just common courtesy. First, answer your phone and emails within 24 hours. Now blind solicitations are the exception, but if you know the person call or message them back. Second, cell voice mails should not be full. If you really don't want to talk to someone, its better for them to leave you an unanswered message then for them to have to call multiple times with no assurance to receive a callback. Third, if you arrive or leave the office for the day and pass by someone's office, say hello or good bye. It really won't bother the person on the receiving end even if they are busy, it will make them feel good that you care. Fourth, when you make a mess, clean it up. This is for the coffee drinkers who unintentionally spill, but intentionally don't clean up. Fifth, (and I'm getting better at this) when you pass someone in the hall always acknowledge with a smile or friendly hello. And lastly, if you expect to have a conversation, don't start it on email. Have a great day!