Cycling SIG - Meeting 6/22

Cycling Industry,

As a follow up on our Cycling Special Interest Group (SIG) meeting held at Bill Walton’s house in February, we wanted to invite you to the next meeting focusing on actionable rider safety items – something we can all get behind.  This will be held at California Bicycles in La Jolla on Thursday, June 22nd at 6:00 PM and will feature Nathan Fletcher as a moderator and cycling advocate. 

Please RSVP to me and feel free to pass along to other industry peers who might be interested

One suggestion that came out of the last meeting was a request to share email addresses with other attendees – by default we will NOT share contact info, but if you would like to share it to better communicate with industry colleagues please let me know and I can send it to the RSVP’ed attendees after the event.

Thanks, we hope to see you there!

Attention SDSI Soccer Fans

As you are probably aware, this was a big week for San Diego soccer fans, business people and citizens (tax payers!) The SoccerCity initiative was certified by the City… the 112,000 signatures put it over the top. Mayor Faulconer (a friend to SDSI) and Councilman Sherman both endorsed the project.

It is not our place at SDSI to get involved in politics, but it seems to me, that this project deserves our attention simply because of the soccer components. I am all for anything that helps get kids off their mobile device and on to the field of play, especially in large numbers. I believe the SoccerCity proposal will help do that, so I am on board. It also has so much more, including river park space and access to the trolley.  And can be done without taxpayer subsidy, which we know the public should and does care about.
 
The Council has two choices: approve the proposal outright or place it on a ballot. Here’s the tricky part: in order for San Diego to actually be considered by the MLS for an expansion franchise, action will be required this year, before the MLS board votes. The SoccerCity folks want this to go to a special election in November of this year. There is plenty of push back on this by those who oppose the opportunity. Delay past the MLS deadline means the end of this effort, and that would be a shame. The people should have a chance to vote on this...when it matters! So, whether you endorse the project or not, we should all care about the rights of the voters and the over 112,000 people who signed the SoccerCity petition. 

So what can we all do to help?  Here goes: 

• Get in contact with the Council and let them know how important the vote this year is and that you support it and the project.
• If you can contact your councilmember (either the councilmember where you live or where your place of business is) with this message, it will be very important to the success of SoccerCity.
• Calls, emails and letters are all good ways to communicate, and the more personalized the better.  Remember to include your name and address (anonymity isn't valued in a political world)
• The email, phone and mailing address for all Councilmembers can be found here. If you need to know which district you're in, please go to this link and look for the "find my council district" button. 

-Bob Rie
Executive Director, SDSI

Read the rest of the newsletter HERE

SDSI ---THE DREAM CONTINUES ---May 18, 2017, RIDE YOUR BIKE TO WORK DAY,

I used to play basketball…It was a long time ago…Some of the endlessly pleasurable elements of the game that I loved so much are self-expression, passion, commitment, sacrifice, discipline, teamwork, purpose, mission and goals…

The entire time-period of my life that I was able to play, I was fully convinced that this most perfect of games was the essence of life itself… And that if I was somehow unable to play, that my very reason for existence would disappear…

With the way things have played out in the real world---I couldn’t have been more wrong…

I grew up in a non-business environment…My dad was a social worker, adult educator and music teacher; my mom--- our town’s librarian…

The other guiding lights in my glorious childhood---they beamed for life, not silver…

As my physical capabilities have changed over the last 64 years, so have I…

Today, my life is all business, and it is remarkable how little has changed, other than I don’t end up in the hospital nearly as often…

I had no choice in this transition…My body stopped cashing the checks that my mind so freely wrote…

Fortunately, but inexplicably, I have found the same satisfaction and joy in the business of life as I had in the sport of my dreams---the dreams that became my religion…

A bit more than seven years ago, just as I was beginning the latest, hardest and most serious of the long hard climbs back up from yet another physical and emotional bottom (this time my spine failure and collapse) I knew I had to change my approach…

What I had been doing was clearly not working, or sustainable…

I sought a fresh start in the innovation economy that defines my perfectly wonderful hometown, San Diego…

That quickly led to Duane and Ted Roth, Connect, and to what has now become SD Sport Innovators---a non-profit business-accelerating organization whose purpose and mission is to bolster the sports and active lifestyle industry that we proudly claim as our own in San Diego…A lifestyle that many of us simply took for granted…It is who were are…    

I am the volunteer executive chairman of this group of business-veteran serial entrepreneurs whose lives have evolved to where their greatest joys and rewards now come from the successes of others…

Started before I arrived by Marco Thompson, nurtured by the now-passed Duane Roth, and sustained today by it’s members and like-minded philanthropic supporters, SDSI has come a long way---mimicking the game-plan forward towards a better tomorrow well established by our San Diego sister organizations: Connect, Bio-Com, Clean Tech San Diego, and Evo-Nexus…

And while those other economic clusters are doing great work in the life sciences, biotech, sustainability and technology sectors---we are the world of sports, health, lifestyle, consumer products, and cool…We are right where we want to be…

San Diego is the sports participation capital of the universe…Everybody who can live here does…And the rest of the world is constantly trying to get here…People come here to chase their dreams…Dreams of playing---outdoors, everyday, forever…

Shortly after getting to the paradise that is San Diego, they realize that they better get a job, so that they can stay---forever…

Athletes and entertainers are the ultimate entrepreneurs---they start from, and with nothing, except a dream, every day…

The freedom and independence that is such an allure to a competitor in full flight, quickly translates to the business world…

And all of these champions of the human spirit and physical achievement, eventually become the champions of tomorrows economy…

Today, San Diego boasts of more than 1200 sports-related businesses, generating a positive economic impact of $2.2 Billion annually throughout our region…

More than 32,000 local people work in our companies…

SDSI represents them all…Whether it is surfing, skating, golfing, cycling, sailing, tennis, running, rolling, swimming, stand-up-paddle-boarding, water-biking, wake-boarding, team sports or individual endeavors, equipment, products, gear, apparel, technology plays, business support, or whatever, including things that we don’t even know about---YET--this is our space… This is who we are, and like any true team, we are all in this together...

Sports, business and San Diego are all synonymous with the spirit of collaboration that always permeates success…

SDSI is led daily, like the rising sun, by the guiding radiance of our Executive Director Bob Rief, his staff of Renne Catalano Gussman and Nick Roth, Industry Chair John Sarkisian, and the network of roughly 100 member companies and 40 volunteer mentors who selflessly donate their time, talent and treasure to ensure that our San Diego remains the best of the best—well beyond the narrow confines of our own individual lives…  

Our job at SDSI, and far past the horizon, is to help---and do whatever it takes to solve the problems, find the money, overcome the obstacles and adversity, provide the much needed leadership and mentoring, and to be there to illuminate the path forward to those who are trying to get to where we’ve already been…

One of our SDSI signature programs is Springboard—the vehicle we use to catapult our rising stars on their own great leap forward…It is our heart and soul…

SDSI Springboard is a 20-week business accelerating training and mentoring program that helps creates sustainable and scalable businesses…It is based on a demanding but proven curriculum and professional guidance from people who have been there and done that…

We are most proud of our successes…Over the years, 87% of our Springboard companies are still in business…We have helped to start and build more than 70 different companies…We have helped those companies raise more than $50 Million in business-building capital…And we have helped create hundreds upon hundreds of real jobs…Jobs that are the bedrock foundation of our community…     

In another one of my lifetimes---as a basketball player—I was fortunate to be on some of the greatest teams is sports history…Teams whose legacies survive today, 50 years after I started on the grand stages of this planet…

The nicest thing that anyone ever said about what I did in that world, was that I helped my teammates play better ball…

I’m proud, honored, privileged, and humbled to be on my next great team and stage…

I’m the luckiest guy on earth…I get to volunteer for SDSI…

SDSI Newsletter April 27, 2017

SDSI BOARD OF DIRECTORS EXPANDS WITH PILLARS OF SAN DIEGO BUSINESS COMMUNITY

SDSI is humbled to welcome five prominent members of San Diego’s Business community to its Board of Directors: Emilie Cotter (FleishmanHillard), Melissa DeVita (Qualcomm Technologies, Inc.), Michael Lawrence (Morgan Stanley Wealth Management), Eric Northbrook (Voit Real Estate Services) and Roger M. Spatz (Reef/Eagle Creek.)

Read the full newsletter HERE

MARCH MADNESS...IT'S NOT JUST BASKETBALL, HOW ABOUT SOCCER?

“The times, they are changing.”  Maybe at no time ever in history has this been more true. The evolution of consumer buying patterns and the new found boundless technology found in our mobile devices has turned the world on its ear. From pizza to medicinal marijuana, it’s all there at a click and delivered in a click. But it's not just consumer buying that has been impacted, it's practically every aspect of our life. Do you use printed instructions or do you use YouTube?...gotta ‘nest’ at home?…is Siri finding what you need?…is Uber at your door?…Amazon Prime? OMG!

Change is impacting sport as well. I don’t know if it’s good or bad, nutrition, or living too close to San Onofre, but a fairly large percent of the kids in the U.S. aren’t physically elite…if you are 12 years old, male and 6’1”, you gotta shot at the NFL or maybe the NBA. If you are 12 years old, male or female and “right sized” for your age, physically elite sports are probably not in your future. Do not move from San Diego to Green Bay, no matter what your Dad thinks. And PS, your MOM absolutely hates the idea of contact sports…who wants their child to risk a head injury that could cripple for life?

Do not underestimate the real power of Moms! In my age group, driving with moderate levels of alcohol was “ok” as long as you did not have an accident or get caught by the police. As drinking escalated, more police did not counter the horrible trend...but MADD stopped the activity cold at the social level. When a majority of Moms decide something, well, I think that's what is gonna happen. NFL take note.

I realize this is a goofy lead in, but as a consequence of social trends, many of us see a great future for soccer. I am one of them and I believe the MLS/SoccerCity SD proposal as positive for the City and County of San Diego. Soccer is an aspirational GLOBAL sport for boys and girls. We have about 100 leagues and 3,000 teams in San Diego County alone. That’s arguably more to 50,000 local athletes touched by soccer each year. If San Diego is the home of healthy living I cannot think of a much better activity for our kids. Are there details? Of course. Are there good local San Diegans behind the effort? Yes. Is SoccerCity SD for profit? Yes. Is it 100% privately funded? Yes.

Good enough for me...good for the City and County…good enough for our kids…let’s make it happen!

-bob

See the full March SDSI Newsletter HERE

MLS in San Diego? Let No Good Deed Go Unpunished!

Of course we want an MLS franchise! In spite of the many objections on the project that Mike Stone’s group has proposed, we are:
A:  for all things that enhance healthy living in San Diego
B: for all high minded business opportunities in our sport space

Seems to me that about covers it.

Are there details? Yes, of course. For instance a group of San Diego’s community leaders have decided to try to do something really good for San Diego, all of San Diego, namely take our very ugly, no longer useful gigantic parking lot called Q Comm, and turn into high density housing, park land, space for S.D. State to add student housing and an athletic facility for a co share with an MLS team… to the benefit of all…except competing developers who don’t like the idea that another team of Community leaders and investors have taken the hardest step, the first one!

Oh, all this at the public cost of zero.

Of course there is push back. After all, San Diego is comprised on San Diegans. Everyone needs a voice…but with the voice comes the responsibility to provide constructive criticism so that we can actually make something happen. Tilting at windmills with statements like “we can do better” or “lets not rush to action” all fall into the “delay and pray” category.

I guess “praying” is a strategy but not a very effective business strategy. Look, we are a world class city. A small minded, self serving, PR catastrophe of epic dimensions, our NFL owner, elected to leave town. This hurts me, but honestly the NFL is really on the slide. Mothers are opposed to football... who wants their child to be exposed to brain injuries in a physically elite, brutal sport?  The antidote to football …”football,” known as soccer here. Soccer is an aspirational sport, safer by far, embraced by boy and girl athletes at every level. Its GLOBAL, its big here, and we need it as a badge of our dedication to our life style.

But it cannot succeed in a vacuum. The MLS franchise in Carson has low support because it is in the middle of an industrial area... no hotels, no restaurants or bars, no reason to be there.

The opposite is true in Seattle and Portland…those franchises are robust and healthy because they are where the action is.  I can easily see Mission Valley and the Q-site easily becoming a hub of life and with it all the benefits of a growing and active community.

There is a time frame and some constraints. We are moving along a time frame imposed by the MLS expansion calendar. Its easy to imagine that the timeline is imposed by the developers…”if we hurry up and rush this through, we can put one over on San Diego”…really?

So my belief is that's it time for our community elected officials to step up and throw their support behind the total effort to bring MLS San Diego. Lets make the deadline, get the signatures, get started, and enhance the effort as we move forward. “Pray and Delay” will just put QComm into the perpetual motion machine, where no one wins, in fact all San Diegans lose!

What's up in the SDSI 'hood?

Too much! The pulse of our business cycle seems to be associated with the school calendar. Summers are nice and low key. Fall is much busier… Spring…craazzy!

Last week we had one of our four annual Leadership Dinners at the Estancia La Jolla Hotel & Spa. This one, sponsored by long time SDSI supporter Procopio, featured David Wells, Yankee perfect game pitcher. What an extraordinary night. David related some MLB memories and shared the amazing story of growing up a “gym rat” in OB. As you can imagine there were plenty of questions related to playing in the Majors, throwing one of only 21 perfect games, playing for Sparky Anderson (his favorite) and Joe Torre (his least favorite). I think it would be fair to say all were transfixed, including guests Mayor Faulconer, Bill Walton, Peter Ripa from the Farmers Insurance Open and other assorted San Diego VIP’s. We all went home with an autographed ball…under my pillow at home! These Leadership events are a rare chance for SDSI to bring forward our value to the Business Community. Many thanks to Procopio for making this happen.

OK, trivia “bar winner” question from David Wells: What is the only high school in America to produce two Perfect Game Pitchers? …Point Loma High! Please send 10% of all trivia bet wins to us asap!

MLS coming to town?...There’s too much to detail here, so let me be lazy and add a link with the latest on these efforts. But there’s no doubt about our position: 100% FOR. Let’s be honest… head injuries in football are a huge concern for all players. The NFL is working on solutions but there is no way back for those who have suffered traumatic head injuries, unfortunately. But from a U.S. societal point of view, I believe it’s fair to say that more and more parents prefer their children find an alternative sport, and in most places, that is Soccer. It’s not perfect either. Headers remain a challenge, but in general it is safer and far more inclusive - little boys and girls to adults. Having a MLS franchise will be a bellwether for youth soccer here in the county and a great rallying point. Hopefully SDSU will soon see the value and get emotionally on board. It’s been a while since a group of San Diegans have stepped up and made a proposal so fantastically good for San Diego. Two SDSI members, Surf Cup and soccerloco are very active and enthused…us too!

Omni Channel CEO Conference…SDSI members wrestle with the conundrum of modern business every day. The advent of social media and wireless communication has shifted the epicenter of purchasing from the hands of the industry into the hands of the consumer. Balancing selling efforts and protecting branding across all channels is a tall order. SDSI, through Red Door Interactive, Quiverr and Wells Fargo Capital Finance, is presenting a forum next week featuring L2 Digital Partners and guest speaker David Kahan, CEO of Birkenstock. The topic…Omni Channel Strategy of course. This event is “sold out” but I will make a decent report for the next newsletter.

View the whole SDSI Newsletter for Feb 23, 2017 HERE

"2017," can that be true???

Well, it seems like lots of crazy things are happening, so why not? There is no alternative fact: 2017 is here!! Hard to believe but this is the beginning of SDSI’s 9th year of supporting entrepreneurship in the Sport and Active Lifestyle (SAL) space. In fact, SDSI used to be ASI, Action Sport Innovators, but it was too limiting, hence SD Sport Innovators and our SAL acronym. And of course, with the expansion of our name, came the growth to include what are basically companies active in the "San Diego Lifestyle". We have grown in membership to nearly 100 companies. So, Happy New Year!

Ever try to start a business? I think there is universal agreement among Founders that starting one business is about the hardest thing an individual can attempt. SDSI’ Springboard program has helped jump-start 61 companies…think of what that number means in terms of dreams, jobs and the benefit to San Diego. Think of it in terms of mentorship hours given freely…over 7,000 hours since 2009…approximately 3.5 working years of free guidance, advice and encouragement! It’s an amazing number, all courtesy of a group of amazing San Diegans who give so willingly of their time and expertise. Let’s start 2017 with a BIG Thank You to them, our Springboard Mentors!

The SDSI Springboard Class 9 Application period is now open. We will have approximately 10 slots available. Typically, we receive at least twice as many applicants. If you have a company that can benefit from the SDSI Springboard curriculum, by all means contact Renne and get the process going now.

Our 2017 calendar of events is extensive. Special thanks to K2 Insurance Services for the title sponsorship of Springboard 2017, to Voit Real Estate Services for sponsorship of the Founder’s Skill Set Series and Procopio for their continuing support of our Community Leadership Dinners.

Read the rest of this month's newsletter HERE

San Diego Sport/Cycling Showcase Spotlights Local Brands in Expo and Fashion Show with Local Professional Cycling Teams

SAN DIEGO — January 15, 2017 — The San Diego Sport Innovators (SDSI) and Padres Pedal the Cause have teamed up to spotlight the breadth and diversity of the local bicycling industry by hosting the second annual San Diego Sport/Cycling Showcase on Saturday, February 4th at 350 10th Avenue, San Diego.

San Diego cycling and sport brands participating in the Showcase include an exclusive group of brands and partners: 2XU sportswear, SAGE Titanium Bicycles, Lumos Helmets, San Diego Mountain Biking Association, Cuba Bike Travel, Belgian Waffle Ride 2017, GQ-6 nutrition, Assos clothier, SDSI, Padres Pedal the Cause, to name a few. The highlight of the Showcase will be a Fashion Show featuring the newest men’s race clothing by team Jelly Belly p/b Maxxis, and women’s styles worn by Skyflash Racing.

Announcements will be made about the 2017 Amgen Tour of California, as well.

This is the second time the sport community has come together for a cycling brand showcase, or localized Interbike, into the local culture in support of the active living/healthy lifestyles. This event will introduce the top cyclist riding for Team Jelly Belly p/b Maxxis and Skyflash, both based in San Diego County; their team clothing, gear, bicycles, sponsors, and provide interviews. “I am excited to support all local companies that support cycling here in San Diego - our home base for 18+ years of competition. Being a part of the 2nd annual San Diego Sport/Cycling Showcase is a first for the Jelly Belly P/B Maxxis cycling team and which we plan to participate in for many years to come,” Danny Van Haute, team manager

“We are excited to host this event for the second year reaching worldwide audiences, online viewers, sports fans and followers of professional cycling. And providing an experience for sport and active lifestyle communities that is unique to San Diego spotlighting the economic impact local professional teams, sport industry manufacturers and causes make on every day lives,” said organizer Ed Clancy, chairman of the Amgen Tour of California San Diego Organizing Committee.

About SDSI

SD Sport Innovators (SDSI) is a non-profit, business accelerator that connects and drives the growth of Southern California's vibrant sports economy by offering elite level networking, and innovative programs and services for start-ups, mature companies and service providers. For more information, visit www.sdsportinnovators.org.

About Padres Pedal the Cause

Padres Pedal the Cause is an annual cycling fundraising event with the mission of creating a world without cancer.

The San Diego Padres and Pedal the Cause have joined forces! The two organizations, which first partnered in 2015 and raised $1.3 million for cancer research centers here in San Diego, have partnered to make an even larger impact and pave the way for a cure. For more information, visit www.sandiego.pedalthecause.org.

About Amgen Tour of California — San Diego

2017 San Diego Tour of California Local Organizing Committee (SDTOCLOC) is the lead organizer for unify vast interests from the San Diego cycling culture to promote active living locally while integrating itself within the largest professional cycling race in north america – a designated world tour.

The SDTOCLOC includes a vast coalition of San Diego County business owners, stakeholders, politicians, developers, organizational and community leaders to promote our region as the premier host for world class events. For more information, visit 

E-Commerce Challenges Lead to 'Melee in the Marketplace'

Please take a look at this snippet from the SDBJ article on the 2017 Economic Trends on the Sports and Active Lifestyle industry

Springboard Outreach - YOU can help!

Happy New Year! We are back here at the office and 2017 is looking very good with some exciting announcements coming out of SDSI.  K2 Insurance Services has stepped up as our Lead Sponsor for SDSI Springboard 2017!  A Big Thanks to Pat Kilkenny and his belief in the positive good Springboard brings to the entrepreneurial community in Southern California. 

“I think it’s fantastic that SDSI puts this amount of effort into helping San Diegans create successful businesses,” said Pat Kilkenny CEO & Chairman of K2 Insurance Services. “It’s an organic part of K2 so we are happy to support SDSI”.

We know you are already believers but, as a reminder SDSI Springboard is a really good thing! This program helps 10-15 companies each year become better positioned for success and our mentor community collectively donate more than 2,000 of hours of their time and expertise to make this program possible this year.  And all this essentially for no cost to the participants, only the price of a General Membership to SDSI.  

Here is how you can help: Help us spread the word about the application period which is now open through February 13. Please post the pre-written posts below. Attached is a graphic ready to be included with your posts.  Or you can share/tweet the SDSI posts on Twitter, Facebook and LinkedIn.

We are also always in need of good mentors.  If you know any experienced Entrepreneurs that could make impact on a growing business, please refer them to Renne.

--

Social Media Posts

Twitter
89% of #SDSISpringboard Grads R Still in Biz. Do u have what it takes? Increase ur biz's chanc for success Apply now goo.gl/zteH6f

Facebook
89% of #SDSISpringboard Graduates Are Still in Business! Do you have what it takes? Apply to Southern California’s only SAL Business Accelerator to increase your business’s chances for success. https://goo.gl/zteH6f.

LinkedIn
Think about this…9 in 10 companies fail. SDSI Springboard Sports and Active Lifestyle Business Accelerator Now Accepting Applications! Put your business on a path for long term success. Our graduates have an 89% success rate.  Learn more, apply today https://goo.gl/zteH6f. Or tag an entrepreneur. 

Happy Holidays - SDSI Holiday Hours

SDSI's world headquarters will be closed December 24th through January 2nd for the holidays. We wish you all a safe and happy holiday season and a prosperous 2017!

Bill Walton's Broadcast Schedule

People often ask "When is Bill going to be on TV?" (usually after one of his off-topic tangents makes headlines... to the chagrin of his broadcasting partner(s) - it's Dave, right?) Print out your Bill Walton Bingo cards and play along at home.  Here is the schedule we have... subject to change

SDSI Newsletter

Click HERE for the October 20th Newsletter (sorry, forgot to post this earlier)

SDSI's 100th Member!!!

Solana Beach’s San Diego Sport Innovators (SDSI), the nonprofit business development organization dedicated to the Sport and Active Lifestyle (SAL) Industry, announced today they have signed their 100th member, Surf Cup Sports.

“It's a big day for us for two reasons,” noted Bob Rief, Executive Director, SDSI. “Reaching 100 members is really a threshold for SDSI. Our focus is on the SAL community, basically the companies whose products or services constitute the San Diego lifestyle. Bringing together 100 of these companies to promote San Diego and our business category is really fantastic.”

Surf Cup Sports is a significant business generator for San Diego, bringing $139 million in associated revenue annually. Their facilities in Del Mar and Oceanside collectively provide 44 fields of play for the community. Over 200,000 athletes compete on their fields each year. More than 2,000 college coaches attend Surf Cup Sports events to recruit players, resulting in millions of dollars in scholarship awards.

“Secondly, my guess is there is not a more well-known name in North American youth soccer,” continues Rief. “To share our 100th member celebration with Surf Cup Sports is especially rewarding and really a perfect fit for SDSI.”

"As one of the top sporting event organizers in the country with deep roots here in San Diego we are excited to join SDSI to participate in the collaborating and networking opportunities provided by the organization,” says Mike Connerley, President of Surf Cup Sports. “We want to continue to grow and improve our business as well as support other San Diego sports companies, and we see SDSI as a vital part of that process."

About SDSI

SDSI is a nonprofit business development organization focused on the Sport and Active Lifestyle (SAL) industry. Working with Executive Chairman and NBA great Bill Walton, our 100 company membership represents the “San Diego Lifestyle” and includes leading sports and technology brands, nutrition, yoga, surf, skate, cycling, golf, retail and more, as well as some of San Diego’s bests service companies. We focus on relevant and actionable C-level content that benefits our member companies. SDSI’s award winning SDSI Springboard business accelerator program features a 20-week mentor-led curriculum whose graduates have raised $47.5 million and have an 89% success record. For more information, visit www.SDSportInnovators.com. 

About Surf Cup Sports

Surf Cup Sports is one of the most influential and recognized youth sporting event organizers in the nation. Originally formed as a local soccer club for San Diego's best youth soccer players, Surf Cup Sports is now recognized nationally for Surf Soccer Club and globally for Surf Cup, which draws the "best of the best" players from all over the world to compete in "America's Finest City."

Got Jobs?

Maybe it was the full moon or some other phenomenon, but lately I have been in several meetings where the topic of Jobs has come up in a significant way.  In the last 8 years we have been adding about 250,000 jobs per month around the USA. Unemployment is the lowest its been in years. San Diego is particularly successful. Nationwide, things in general are good…for instance, the stock market has risen from 8,000 to 18,200.

Seems like our focus has focus has moved on; in general, things seem good.

Unless of course you are looking for a GOOD job. University grads are taking positions that pay less than their tuition and are racking up big loan debt. Students in the process are worried about their opportunity come Graduation Day.

And as I found out recently, a very large number of members of the military are exiting service every day. More specifically here in San Diego a large number of Navy SEALS are mustering out and transitioning forward into new careers.

I was invited last week to “audit” a session of The Honor Foundation at UCSD. Please Google it for more detailed info, but let me tell you that this is a Not For Profit organization dedicated to making the transition from SEAL life to civilian life as successful as possible.  There were 38 men and women at this particular meeting. They meet twice a week for 27 weeks. The Foundation underwrites the cost…which is substantial, approximately $65,000 per person.

The curriculum is amazing: the premise is preparing for the second half of life.  It is a significant program. I set in on a Life Coaching session. While the attendees are preparing for the second half of their lives, it occurred to me that I better prepare for the last few minutes of the fourth quarter of my life.  The process was equally valuable for young and old.

But the point of this is that WE as an industry do very little to help these amazingly qualified people get into our industry. Trust me all you gnarly surfer types, a basic Navy SEAL has water skills that make us look like, uh, rookies. But that's not their real asset. These people are skilled, focused, team players and highly experienced in all the things it takes to make a very big operation (US government) work. We need their skill sets in our business.

So what are we doing about it? The San Diego Economic Development Corporation as a significant JOBS program. Sea World has a very significant “First Jobs” program with an emphasis on Operating and managing a huge facility like theirs.

And what do we have in our SAL world? Really, nothing cohesive. If you work in a bigger organization, you probably have an HR Director. Did you ever try to get a job through an HR department?  I have a friend who was a senior Executive in a major company. He made a “pro forma” resume up and applied for a job through his own HR department, and then waited for a response. Nothing. He placed a call and a VM, nothing. After a reasonable time he convened the HR Team and laid it out. “people want to work for our Company, probably because they like our mission or product. They get the courage to try to make the first steps. We meet their enthusiasm with indifference. We don’t respond. They try harder and we still do nothing. At the end of the day we have converted someone who likes us and buys our product into someone who really dislikes us and thinks we are fakers or worse. From here on, we will answer every single job seeker without fail. That's the mandate. Please understand what that means for you!”

We small biz guys are not much better. It’s hard to imagine there might be talent beyond our immediate network. But trust me, I met 38 people ready and able to help any company succeed.

So here’s the SAL industry challenge. Let’s do the basics : add a Jobs section to your web site. Treat it seriously. Post all your jobs. Respond to all inquiries and treat candidates seriously.  If you can hire one of the Honor Foundation graduates, all the better.   Make it happen, your company will be the beneficiary!

b

Cross Border Manufacturing

“ I am sorry sir, there are no upgrades. All aisle seats and window seats from LA to Shanghai are filled. I am sure the middle seat will be ok.”

“Sure I thought, 15 hours wedged in the middle seat will be fine, if you are a sardine.”   

Every time I started off on the China trip, I promised myself I would look into cross border manufacturing. I mean, the Cali-Baja region has a wide spread manufacturing base. And the products are not striped donkeys or piñatas… far from it. Forty thousand people are employed in Medical Device manufacturing in the region. Not to mention Toyota, Samsung (no batteries!), etc. And… big AND…  the region is 15 time zones closer…the aisle seat is right behind my steering wheel. It takes less than 45 minutes from San Diego to Tecate for instance. Over and back, on any mission, in a day.

Finally I decided its time to get informed. We looked around San Diego to see if anyone involved in the Sport or Active lifestyle industry might be willing to share some experiences with us.  When you think about San Diego lifestyles I think about the Beach, maybe beer, and music…that's how we came up with Taylor Guitars.  A call to Taylor was all it took.  Bryan Bear and Victor Villaneuva came to our Board meeting and really gave us all a primer on manufacturing in Cali-Baja. It was an eye opener, to say the least. 

At the end of the presentation they invited us to come to their new Tecate facility to see the execution of a really good plan to expand manufacturing.  Approximately 20 of us took up the offer and made a field trip to the new facility. It was far more than a tour. Taylor’s VP of Product Development, Ed Granero, shared the factory and showed us how it can work.  There’s too much to relate here, but let me say, this was far more than a “tour.” I am not too sure how to describe it…but we saw a state of the art, 110,000 sq ft factory in operation, met many (happy) employees, gained a lot of business insights, made connections with the Business Development staff from Cali-Baja, had a cordial “only in Mexico” lunch and came home with a head crammed full of ideas for our industry.

By the way, 20 people traveled to and from Taylor ‘s factory in less time than 1 person can get to China in that middle seat…just sayin’.

FYI:
•    Security. My guess is that this is your first reservation. No one can deny some issues in the region. If you are a drug smuggler you may encounter those people, but probably you are not.  Renne, Nick and I are frequent Mexico travellers and never have encountered any problems. Pacific Beach? Much scarier!
•    Border wait: The Tecate foot crossing could not be easier. No wait in, no wait out. Good parking in on the US side. Easy public transit on the Mexico side. 10 minutes to Taylor guitars for instance.
•    Visas: both governments have fast pass programs and visa arrangements to allow easy crossing for citizens of both countries. The Taylor employees are cross trained in both the El Cajon facility and Tecate. They cross easily, daily.
•    Bureaucracy: Not sure we Nortes should be lecturing anyone about this, but yes there is a process. The rules are clear, but complex enough to require careful investigation. See the Contacts list below for expert guidance.
•    Facilities: State of the art Industrial space is readily available.  Space costs are more than Competitive. Facility build out can suit your need.
•    Labor: Adjust your thinking. Did you know there is  2.5% unemployment in Cali-Baja? That Mexico majority population is under 30 years old? Or that they have a fast growing, well educated middle class looking for careers? The blended cost of labor per hour, all industries is competitive with China, running less than $4.00/hour. In our sector, the price will be higher depending on the skills needed for construction.
•    Economic Incentives available? Absolutely!

Some more photos of the day can be found here

Well there is much more. But if you are curious about possibilities of manufacturing in Baja, by all means call us. We can help. But here are the contacts for the people who are really expert in the region:

Barbara Ruelas: Director of Investment and Project Management (Northern Baja). bpruelas@baja.gob.mx. 52 686 558 1137

Carlos Uribe: Business Development. curibe@iamsa.com.mx. 52 664 211 0707

Adrian Hernandez: Business Development Executive, Tecate EDC. Adrian.hernandez@tecateedc.org. 619 503 7282

Ismael Soto Dominquez, Investment Promoter, Secretariat of Economic Development. isotod@baja.gob.mx. 52 665 103 7530

Bob
SDSI

The Power of Knowledge

Caught your attention? Well I want to relate an experience I had in my business life that centers around the knowledge of your range of responsibility and your fiduciary obligations. I decided to change the names to protect the innocent, but the events are close enough to claim it as the “truth.”

Once upon a time, there was a foreign parent company with a wholly owned distribution unit in the USA. As time passed the Distribution unit became significantly larger than the parent. Of course this set in motion all kinds of corporate events, like, “should we buy our parent company,” or the opposite, “no way we would sell to our employees.”  It created drama in the executive suite.

In an attempt to resolve the issue in the favor of the ownership, the Chairperson summoned “us” to the HQ office in Switzerland. The conversation went like this:

Chairperson: “gents I have asked you to my office to present to you my choice for back up CEO in America.”

US CEO: “that’s interesting, but I have no plans for retirement.”

Chair: “Well you cannot work forever. I thought it would be wise to put someone in place who can be slowly trained up by you to take over when you do decide to retire.”

(As an aside, you can imagine? Our internal cerebral wheels were spinning. We want to buy the Company; we surely don’t want a “spy” from the homeland in our offices…the guy is obviously a “Trojan Horse.”  We want to put in place our own succession team. This is a brilliant strategy on their part.. how can we counter?)

A few minutes ensued. It seemed like an eternity.

US CEO: “hmm, let see if I can understand. This person is hired by you, but reports to me.  I will give him appropriate reviews. I do want to ask you to define my responsibilities. I understand that you will want me to make reasonable efforts to train him up, but if those efforts fail it will be my duty to take appropriate action. For instance, if I find your new candidate deficient, I assume that I will have the full authority to terminate the relationship, and that it is my sole responsibility.

Chair: “yes, that's correct. But I have chosen him for his very excellent background and he is a personal friend as well.”

US CEO: “well that is interesting but I am running a business based on talent alone. You understand that he will be judged on merit, not friendship, and that I will be the sole judge of that?”

Chair: ”Yes, of Course.”

Can you guess what ensued..?

US CEO, “Well, please ask Mr X to meet us at our hotel. Lets get the process going right now. It seems like the perfect time.”

So we went over to this charming little Swiss hotel, met the candidate over lunch and started his first review with an intro to his vc and background. After spending an hour in discussion it turned out he had no experience in our field and actually was hired solely as a “friend of the owner.”

US CEO: “well, Mr. X this has been very informative. We could indeed use some additional hands-on executive assistance in the USA, but to the best of my ability I have been unable to extract any information that would lead me to believe that you have any talent you can bring to bear in our business, other than being a friend of the owner and wanting to relocate to the USA.  As a consequence, I have to say that based on your interview today, you are fired from your position. I know this is a shock, but you are not a good fit, and this will save all the consequences that are so obvious if we continue.”

With that Mr X jumped up and returned to the HQ to report and complain. We too jumped up and headed back to the US with no further communication.

Needless to say, this was not the end of the conversation, but it was the end of Mr X and any further back-up CEO Candidates.

It was also a great strategy lesson for. Affirming the chain of command and understanding the limits of your responsibilities is a very good thing to establish in the beginning. A mutual understanding among the Corporate players can help avoid these very types of conflict. And if they happen, having the presence of mind like the US CEO is a great skill!  It's the power of Business knowledge…get some!

Oh, it takes some courage as well!

b

Mr. Palmer, The Inspiration and SDSI Newsletter September 29, 2016

The passing of Mr. Palmer is a sad time for all who knew him personally, and also for the millions of people worldwide who knew of him or followed his career. His achievements…PGA Tour wins, Majors, IMG, Golf Channel...they are now all well documented across the internet, especially this week.

Like some of the other SDSI members, I too had many chances to be around Mr. Palmer as he was well known. I cannot say that I ever felt comfortable enough to call him “Arnie,” not because he was unapproachable or formal, in fact he was the opposite. No, the more you knew him the more likely you were to call him Mr. Palmer, all based on respect for this enormously successful man.

My most memorable interface was at the 1998 Masters. It was the first Masters that Mr. Palmer missed the cut. That Thursday evening, Joe Moses, our Nike Golf Sports Marketing Specialist, had a random encounter with “Arnie” inside the Club House Members’ Pavilion. After some small talk, Joe told Mr. Palmer that he was here with our Golf execs and Phil Knight. Phil had not met “Arnie” and vice versa. “Arnie” suggested that we drop by his house in Augusta that Friday morning for breakfast, early in fact, so that he could get his jet airborne for the trip back home.

To be honest, we had a pretty amazing evening the night before our breakfast appointment. Phil had invited some notable guests over to our rented house for a lively dinner. Dawn Friday morning came early, really early. The Nike team, Phil included, rallied as best we could, and set off for the Palmer House. Looking a bit disheveled and embarrassed we knocked on the door. Winnie Palmer, perfectly dressed as always, answered the door and greeted us with those wonderful Southern manners. “Oh you must be the Nike guys, come on in. I am going to make you a wonderful breakfast... Arnie will be out in a minute.”  I often wondered what she thought at the sight of us…

Well, the conversation was private and I don’t want to share it, but let me say that Joe, Rod and I saw two giants, two sport legends find common ground and share the immense dose of humanity and charisma they both had. Its no wonder Mr. Palmer was so loved; he was 100% real and interested in people. His concern and attention was evident in his handshake, his memory for names and faces, and the twinkle in his eye he shared with everyone.

Phil, as always, was prepared to meet Arnie. His homework was done. They had a memorable and personal conversation; the rest of us stood on the sidelines, stunned by greatness. 

Thanks Mr. Palmer, you are the MAN!

Bob Rief, SDSI Executive Chairman

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