Finally posting another blog
I know it's been awhile but I really didn't have much to say for public consumption. In short, I find it interesting how, even in a bad economy, our company continues to succeed. Maybe not up to expectations, but still, we seem to continue to move forward in a positive direction strategically and financially. It is a testament to our hard working people. They refuse to play the role of victim and fight the good fight in doing whatever they can to build our company. And,they do it in the right way. As the leader of this great group of people, it makes me proud!

What's Going On Here?

I've been doing a lot of reading lately. Much of what I've been reading is pretty depressing- Collapse, The Nice and Accurate Phrophecies of Agnes Nutter Witch, Jefferson Project, Atlas Shrugged, Fountainhead. All of these books talk about human and societal frailty. When the earthquake shook our building yesterday and with a hurricane heading our way, I thought again about what is beyond our control and what we can do with the things we can control. History has shown, that when man acts or, for that matter fails to act, in his own self interest that society will suffer. I believe we are at a tipping point now- that unless we begin to take responsibility and do the right thing- promoting learning and innovation, rewarding achievement and work ethic, disincenting unproductivity and incompetence and showing fiscal prudence, our society as we know it will continue to decline.

A Great Bonding Experience

As I age, I still learn more about myself and others everyday. Last weekend I was blessed to join my son, his 10 good friends and 2 brothers (my other 2 sons) at his bachelor party weekend. I felt lucky to be invited but a little uneasy about fitting in. In summary, the weekend was great fun, the guys were terrific and I think I fit in just fine- both as a parent and friend. The weekend will be a positive memory that all of us will hold for a lifetime. My son and his friends and brothers are lucky to have such a strong bond so early in their lives. They have already shared so much together and, I believe, observing them, that they will continue to share a bond as they move forward in their careers, marriages and parenthood. Their disparate paths may lessen the time they spend with each other, but their obvious love for each other (although they have a strange way of showing it some times) will provide them with an authentic and meaningful base of support for the rest of their lives.

It's a New Year

While I don't believe in New Year resolutions per se, I am a goal setter and the New Year does mark a time of the year to plan for what I want to accomplish over the next year personally and professionally. While I always get excited by the year ahead, I'm always humbled by the fact that another year of my life has passed. Our lives are so short with so much to accomplish in such a short time span. So I better get started on 2011- Have a Happy, Healthy and Successful New Year.

Thanksgiving

This is a great time to thank everyone in my life for your support, love and friendship. I've been blessed with good health and a great wife and family. And, I've surrounded myself with a very talented and dedicated team of people at Saval.
I truly appreciate how blessed I've been in life and I hope I show that appreciation to all that have helped me become a better person. Just about everyday I say a little prayer, "Please God keep my family happy, healthy, safe and secure." I wish those things for everyone during the upcoming holiday season.

The lessons of golf. As a relatively new player, I am trying to master the game. Unfortunately, the only thing I am really mastering are my emotions. We teach emotional mastery at our work place and I really get to practice it on the golf course- over 100 times per round! And, that's the second lesson, just like anything, you're not going to get better at anything unless you practice. Golf, school, life skills, work skills all take an inordinate amount of practice to achieve success.
Both mastering your emotions and practice require a balance between patience and peristence. One of the keys to my life is learning that balance. To push forward, yet pull back when appropriate, provides a life long challenge in both leadership and the game of golf.

The Weather May Have Improved But Has the Political Climate?

While the weather has me feeling great and business is picking up, the swirling anti-business climate has me deeply concerned. Should the small business owner stand still and keep taking punches. From increased unemployment taxes to the new health care mandates to back office administration moves in appointing anti-business advocates, I am appalled that we are letting this happen to us. We are taking every step we can to take responsibility for what we can control, be it wellness programs, employee loan programs, extended credit for customers, value-added customer services, we are fighting upstream, but the current keeps pushing back stronger. I pledge, on behalf of my people, to start fighting back. Our country needs strong, independent, family-owned companies to thrive. It's time our political leaders stop giving us lip service and poorly designed programs that sound good but have no real impact (ex. Maryland's tax credit for the unemployed) and start actively helping businesses grow, prosper and employ more people for the betterment of our nation.

If you read my end of year post, you read that one of my goals for 2010 is to "not worry about the things I have no control of". I sit here at home on a Wednesday afternoon looking out my back window and seeing nothing but a huge mound of white snow and above the mound a sliver of light blurred by swirling falling snow. By the time this snow ends, we will have over 3 feet of snow on the ground. When I wrote the last blog I couldn't have imaginged my goal would be put to the test so soon and so tangibly.
I could spend my idle time calculting our losses from 3 lost sales days. I'm trying not to do that. Rather I'm trying to plan out the next couple days so that our employees stay safe, we minimize customer disruption and begin normal operations as quickly as mother nature will allow us. In actuality its not much different from my normal mind set- employees are our first priority, customer service is second and operational efficiency to minimize costs would rank third. And, thank god, we're talking about a few snow storms, not a devistating earthquake, a personal loss or any of a myriad of horrible challenges many in this world face each and every day.
So as I "enjoy" the day off in our winter wonderland, I will try hard not to worry about the things I have no control of.

Year End Message

It's over! 2009 was the worst economic year since the Great Depression and Saval is still standing strong- profitable and with our most talented team ever. Thanks to pro-active expense control, we project a substantial increase in profitability over 2008. This is quite an accomplishment in the face of declining restaurant traffic and commodity price deflation. Our top accomplishments in 2009, in no particular order, are:
Implementation of a fully automated Warehouse Management System
The acquisition of an interest in Baltimore Eats magazine and launch of BaltimoreEats.com
4th Generation Saval Family member joined Saval
Investment in new slicing technology at Deli Brands
Over 200 new customers at SFS
Over 14 new customers at Deli Brands
I am very proud of these accomplishments, all of which lay the groundwork for a strong future for Saval Foods.
So as we move into 2010, here are my short term goals (resolutions) for the New Year:
1. Continue to exercise at least 3 times per week and try to cut out snacking at night.
2. Make sure that all of our Saval entities beat their bottom line budgets and stay true to their strategic objectives.
3. Worry only about the things I can control.
4. Keep working on improving the relationship I have with my family, work mates and friends.
5. Continue involvement in the community.
6. Treat people how I'd like to be treated- be nice!
7. Stay authentic and show more humility.
My hope for everyone is that you stay happy, healthy, safe and secure and in doing so fulfill your goals and dreams in 2010!
Happy New Year

Nice People

I don't know if I'm just conscious of this now or I'm just hanging with the right people, but over the last few years I have met and become friends with some incredibly nice people. At work, I work with people who really work hard, are passionate about what they do and just really know how to treat people well. I am blessed to have such great people who I truly like and admire.
In the community, I can't believe how many special people I have come across lately.
Maybe I am nicer now than I used to be so I am engaged with nice people, but I feel so good and fulfilled being involved with just plain good people.
So I guess it comes down to treating people how you want to be treated- it comes back in spades!

Focus Doesn't Mean Opportunity Avoidance

Just about every thing I read on leadership discusses focus, especially in a bad economy. The experts advise leaders to stay with your core strategies, not straying from your mission. I would agree with that advice except for one thing- a leader shouldn’t confuse focus with avoidance of opportunity. In a bad economy, opportunity abounds. Furthermore, even in a bad economy, society continues to change rapidly. A leader, looking to just survive in the short term, may compromise a company’s survival in the long term if he/she does not look for opportunities. My advice- look for opportunities that will improve your company’s long term ability to sustain its competitive edge. Shake things up, a little unorthodoxy might excite your people to try new things, stretch their abilities, and set your company up for great success once the economy turns around.

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!