Wharton / LMC Advanced Business Acumen

Wharton / LMC Advanced Business Acumen by Steve Thielman

 

As you’ve read Nick’s notes, a lot to absorb.  I’ll be breaking down this information in bites to reinforce the comprehension.  Do not mistake this as a ‘what we did in Philly’ as much as real education for all of us to share/use/discuss.

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The dealers attending spanned from the west coast to the east coast.  Supplying Clint Eastwood’s house, regularly leveling a $4 million dollar home to put up $10 miilion dollar home on Cape Cod, Jewish communities building sukkahs (look it up), supplying $20 million in engineered lumber to one client, 80 LLCs connected to one lumber company, wood gutter actually exists (Boston gutter), growth over 10% considered crazy talk, culture perceived as a case study vs reality, supplying 40 story apartments (1 bedroom $4000.00/month, seriously), timberframed direct ship barn packages with six figure profits,  payment on account with multiple sacks of cash….the stories outside of the classroom provided a lot of perspective to how/where we stand, what to learn from and what to strive for in profitability.

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Thanks to our ownership for the vision of development and the Drexel group for making these educational opportunities possible.

 

 

How the Best Get Better:

 

The pros that say I made mistakes all the time are the best.   Reflect on your SELF, embrace the truths.

 

Cal Ripken:  100 games to correct his swing.  100 times to truly develop a change into natural habit.

 

JFDI:  Ulitmatley nothing happens unless we act upon the decisions to improve.

 

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Finance: 

 

I’m in marketing or delivery, why do I need to know?

 

  1. Knowledge permits participation in resource allocation.  Where do we spend.
  2. Professional welfare tied to financial performance.  What we earn.
  3. Help de-politicize strategic decision making.  Smart spending.

 

ROA:  Return on Assets (2 drivers)

 

  1. Profitability.  How much we earh on each sale.
  2. Efficiency:  How much we earn based on our resources (equipmet, people, processes).

 

Opportunity Cost:  What is it?  Think in terms of quotes and no sales to show for the work.  This is opportunity cost.

 

I’ll leave this installment with a case study discussed.   Ask Nick, Paul or myself what the actual outcome was…answer will also be provided in a future blog.

 

Negotiation Test:

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Roosevelt’s campaign manager produced a pamphlet with a copyrighted photograph on its cover.  3 million copies of the pamphlet had been produced.  It had to be used and there was no time to re-do it.  The cost of using the photograph was $1.00 per pamphlet.  The campaign was short on funds.  The photographer, a man named Moffet, was hard up for money and hard to reason with.  As the campaign manager,  what did you negotiate?

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