List of Lists: Regional Business Rankings

Are you like me and you love reading business lists, especially those ranking businesses by size, performance, and other variables?
If so, here is a list of list of regional business rankings you will find interesting. It is not all inclusive, for example it does not include Crains Cleveland Business' NE Ohio Business Rankings, but it's a good starting point. The best part is that many of the lists provide free information.

Go here to read about Gary Price's List of Lists.

Harvard Business Review on Advances in Strategy

I ran across an interesting review of a new book on strategy from HBR. Here is a clip on the latest trend in how companies are streamlining operations. It's all about new ways to re-work the supply chain to create more value. Is this good or bad news for economic development? It certainly means a new full-court press on productivity and therefore job cuts, but it also means greater global competitiveness for businesses, which is the only way our industries are going to survive in today's innovation-driven economy.

"In an excerpt from the final selection in which Michael Hammer outlines the activities and goals used in streamlining cross-company processes, he breaks down the approach into four stages: scoping, organizing, redesigning, and implementing. “Streamlining cross-company processes is the next great frontier for reducing costs, enhancing quality, and speeding operations. It’s where this decade’s productivity wars will be fought. The victors will be those companies that are able to take a new approach to business, working closely with partners to design and manage processes that extend across traditional corporate boundaries. They will be the ones that make the leap from efficiency to super-efficiency.” This brief excerpt is representative of the quality of thinking and writing which can be found throughout this volume, and indeed throughout the entire series."

Go here to read more at CEO Express.

Best Business Books of 2003

I ran across an excellent review of the top 10 business books from 2003. One of my favorites is the review of three 2003-released books about innovation. Here are a few clips from the reviewer Randy Komisar.

"I tend to think of innovations as breakthrough ideas or game-changing technologies — like the Internet or genetic sequencing. On the other hand, I know there are many hardworking, successful businesspeople who consider new packaging for a breakfast cereal to be innovative. Merriam-Webster OnLine defines innovation as “the introduction of something new; a new idea, method, or device: novelty.” In the thesaurus, the first word that comes up for innovation is change. The combination seems like a good working definition to me: A new idea that effects change. Bigness or smallness is not important. With this definition in mind, I set out to see what the current batch of writers had to teach us about innovation.

Three of the books chosen explore innovation from an analytical perspective; each holds the view that networks are critical to innovation. In How Breakthroughs Happen: The Surprising Truth About How Companies Innovate (Harvard Business School Press, 2003), Andrew Hargadon sees a series of “small worlds” — seemingly distant, disconnected, and disparate populations or actions — that need to be bridged by technology brokers. Henry Chesbrough, in Open Innovation: The New Imperative for Creating and Profiting from Technology (Harvard Business School Press, 2003), sees a diffusion of knowledge that needs to be knitted into innovative solutions, both inside and outside companies. In The Slow Pace of Fast Change: Bringing Innovations to Market in a Connected World (Harvard Business School Press, 2003), Bhaskar Chakravorti sees a network of constituencies that must coordinate if they wish to abandon the status quo they currently support and create a new environment where innovation may flourish."

Go here to read more. (Free registration is required).

Biotech Research Links to Health Institutions Grow

I ran across an excellent article on the relationship between biotech research institutes and health care institutions. This is a very thoughtful case study of how these relationships are forming.

As the economics of R&D evolve, the Salk and other private research institutes become increasingly crucial to health care’s changing value chain.

On an innovation path that begins with a discovery in basic biology and ends with a new drug, independent research institutes play a role that is unusual, often unseen, and more crucial than ever. Labs like the Salk Institute, the Cold Spring Harbor Laboratory on Long Island, and the Whitehead Institute for Biomedical Research in Cambridge, Mass., are vital to a biotechnology industry increasingly in need of their support.

Go here to read more. (Free registration required).

Fixing the Current Blogger Problem

If your blog is hosted by Blogger.com, please note that Blogger is having some troubles that you can fix by following the instructions provided on the Blogger Status page located here. Go to this page for instructions on how to make the necessary change to your hosts file. It works. I just did it.

Biosciences Gets New Push in Minnesota

Minnesota Gov. Tim Pawlenty wants Minnesota to grow into a biotechnology powerhouse, so he designated 1,500 acres as the main fields in which those scientific seeds could bloom.

Minneapolis, St. Paul and Rochester will each have about 500 acres in new bioscience zones, which are meant to encourage new businesses or expansions. Biotechnology and health companies in the zones will enjoy a menu of tax incentives.

The land was chosen for several reasons, but primarily because of its proximity to the University of Minnesota, the Mayo Clinic and other established health care institutions. The university and Mayo, the state's leading research institutions, forged a bioscience alliance in April.

The cities were the only three eligible for the zones. The bioscience zones are similar to the Job Opportunity Building Zones, which were announced for more than 300 outstate Minnesota cities last week. In those, companies can earn tax breaks for adding jobs.

Biosciences include molecular biology, genomics and agriculture processing, among many other fields. Research in those areas can yield ways to combat cancer and heart disease, confront bioterrorism and ensure food safety.

Go here to read more.

California Takes Aim With New Biotech Plan

California is getting more aggressive about economic development. The new governor is intent upon putting the state back on the business investment map in 2004.

For one, California wants to secure its position in biotech. The state is already a major player in the industry with major concentrations in the Bay area and San Diego. A new statewide plan is in the making to ensure California stays in the driver's seat in biotech.

Go here to read all about it.

Ripple Effects of the Parmalat-Archway Debacle

With Parmalat under investigation in Europe and the United States, Archway Cookies finds itself on the auction block. Parmalat Bakery Group, North America confirms that a consultant has been retained for the purposes of reviewing the prospects of a potential sale of the Bakery Group.

Archway, based in Battle Creek, Mich., makes Archway cookies and the Mother's label Original Circus Animal Cookies and also makes private-label cookies. Archway also operates a plant in Ashland, Ohio.

Italian authorities have arrested the founder and several top executives of Parmalat Finanziaria S.p.A. in an alleged multibillion dollar fraud. The U.S. Securities and Exchange Commission also has sued, accusing Parmalat of engaging 'in one of the largest and most brazen corporate financial frauds in history' that forced Parmalat to file for bankruptcy.

Go here to read more.

North Carolina Looks to Incentive Re-Haul

The North Carolina Economic Developers Association believes the State of NC should do more to incent economic development projects, especially after coming up short on the Boeing plant deal and missing a few others that chose to go elsewhere.

In the last 10 years, there has been a dramatic change in the way the state lures companies with incentives. The William S. Lee Act, approved in 1996, divided the state's counties into tiers, encouraging businesses to build in rural areas.

In 2003, in an effort to lure the bigger industrial prizes that were choosing South Carolina and Georgia, the state copied an SC incentives plan that rebates much of employees' state wage withholdings during the first years of a new company's operations

This may be one to watch. Money is still tight in most state budgets, but the economy is picking up steam and there will be more deals out there to chase. Some might not like to hear this, but incentives are going to grow in importance in 2004, especially as more companies turn to offshore suppliers to do business.

Go here to read more.

Mark Twain Institute (MTI)

Here is another valuable resource if you're into economic stats. The MTI sponsors the Service Industry Trend Institute, which I described in my earlier post today.

The Mark Twain Institute is a foundation dedicated to improving the quality of economic statistics that measure the performance and direction of the global economy. The Institute was formed in 1997 to respond to the imperative need to improve those statistics by working with government statistical agencies and other organizations that measure principally the U.S. economy, particularly in the area of trade and, within that, particularly trade in services.

Go here to learn more.

Service Industry Trends Website

Looking for information about the growth of the service sector in America and worldwide. This website is the place you should start your search. Lots of great information, reports, and links.

They Rule Website

Here is an interesting web-based resource for anyone who wants to understand the relationships that surround the people with great power and influence in America's top 100 companies.

They Rule is a cool website that allows you to map the web of relationships that many of our rich and famous maintain.

Go here to learn more. This is one that Cleveland's Valdis Krebs would have more than a passing interest in.

People Profile: Edwards W. Deming

Deming is a man who taught us about quality. His work and its significance has rippled across the world. He is worthy of our attention as "quality" becomes the next revolution in economic development worldwide. Who was this man who had to prove himself to the Japanese first before American business paid attention to his ideas?

Edwards Deming was a statistician and management consultant, who was born in Sioux City, Iowa He studied electrical engineering at the University of Wyoming, worked briefly at Western Electric's Hawthorn plant (outside Chicago), took a PhD at Yale in mathematical physics (1927), and then went to work for the US Department of Agriculture. He developed statistical sampling techniques that were first used in the 1940 US census. He served as a consultant to the US War department during World War 2, and by the end of the war had begun to develop broader concepts of efficient management. In 1947 the American occupation authorities brought him to Japan to lecture the Japanese on this subject. He made such an impression that in 1950 the Japanese business community invited him back, and from then on he became a constant visitor to Japan, preaching the gospel of quality control through the statistical control of manufacturing processes. He is considered to have contributed significantly to that country's industrial resurgence after World War 2. Since 1951 the Deming Award has been Japan's highest honour for the business community, and in 1960 he was awarded Japan's Second Order Medal of the Sacred Treasure.

Although he taught occasionally at New York University and Columbia business schools, major American companies were slow to recognize the value of his techniques, but starting in the 1980s he found himself giving countless seminars to many American businesses. Although he has been called the ‘messiah of management’ and ‘curmudgeon of quality’, his business-card read simply, ‘Consultant in Statistical Studies’.

Source: Biography.com

New Wealth in India and China

New wealth is challenging the established order in India and China. The young educated workers in both countries are increasing their ability to buy both products and services and influence.

While these wages and salaries would be considered pretty average in the U.S. or Europe, the additional rupee and yuan are having a significant clout in India and China.

This is what economic development should be doing. So if that is the case, why is the establishment in these countries complaining? Could it be they fear a loss of power in the near future? This will be one to watch.

Go here to read more.

Midwest Factory Index Falls Slightly

Business activity in the U.S. Midwest expanded in December for an eighth straight month but at a slower pace that was just short of expectations, according to figures released Tuesday. The National Association of Purchasing Management-Chicago barometer showed growth leveled off after November's strong result. The index fell to 59.2 from 64.1 in November.

Go here to read more.

Offshore Outsourcing: All That Glitters Is Not Gold

Here is a good article that says that all that glitters is not gold in the world of offshore outsourcing. It cautions that the price differential is shrinking as costs are rising in India, China and other world locations. It also says beware of the hidden costs associated with having your company's work done offshore. Go here to read the article.

Info Tech 1000

It's a list from June 2003 and lots can change in 6 months, but I think you will find this list and analysis of how the big information tech companies are doing to be quite interesting. Go here to read the related stories and see the company list.

Tale of Two Biotechs

For some really good insights into life in the biotech world at the company level, go here to read this interesting story in Business Week. Bottom line: while there are many similarities in what biotech companies face, there is also considerable variation in the factors driving their business success. Advice: look at the specifics of each company you are concerned about.

Nevada Reels Them in from California

You can't tell the story of California in 2003 without talking business. The Golden State's controversial and costly business climate was at the center of the maelstrom this year as politicians, business owners and workers battled over workers' compensation, health care and other thorny issues.

For many, the debate came too late, and they've moved on to cheaper pastures. While the fact Nevada has no personal income and no corporate income tax no doubt factors into business decisions about expanding or relocating, Nevada did something right: 25 of the 74 businesses that came to Nevada in fiscal year 2003 came from California, according to Nevada Commission on Economic Development records. "The current political climate has made it easier to attract new business to Nevada,'' said Jeanie Ashe, director of marketing at the commission.

Go here to read more.

From New Jersey: Most Jobs in the Burbs

In Newark, the state's largest city, the number of inbound commuters grew by 6,500 last decade. Yet the number of Newark residents who work in Newark plummeted by more than 11,500.

In all, 23 percent of the local jobs held by residents of the state's 30 largest cities were lost between 1990 and 2000, a drop of roughly 60,000 positions. The overall number of city residents who worked dropped by nearly 45,000.

Suburban and rural office parks and commercial properties, meanwhile, added jobs furiously in the 1990s - 128,000 in all.

While major urban areas like Newark, Jersey City, Atlantic City and Trenton still top the list of places New Jerseyans work, towns like Parsippany-Troy Hills, Woodbridge and other suburban job magnets are right behind them and gaining.

The trend has far-reaching implications, hampering efforts to rein in sprawl and furthering the racial and class divides that have long worried advocates of the poor, the courts, sprawl watchdogs and policymakers.

Moving jobs into what had once been bedroom communities, critics say, has allowed housing to push much farther out into the state's last rural places.

Go here to read more.

Central Maine Reviews 2003 Events

Losses of manufacturing jobs continued to dominate headlines in central Maine in 2003, even as retail sales grew and the real estate and health care markets boomed.

Overall, the year will go down as a tough one, with the region shedding hundreds more of the traditional shoe, forest products, and textile jobs that have anchored its economy for generations -- losses blamed primarily on overseas competition. Experts say it is a trend that will continue into 2004.

Go here to read more.

Austin Reflects on ED in 2003

This article provides an interesting review of major economic development priorities and activities in 2003 with a peek at the coming year. It reminds all of us that we have to renew and refresh what and how we do things. Right?

Geospatial and Statistical Data Center at University of Virginia

The Center houses maps, geospatial data, and social science datasets. One of the library's Electronic Centers has specialized software to analyze digital geographic and statistical data, and trained staff to help you find and access the data you need. This is worth a visit. Go here to learn more.

Global Industry Classification System

The financial services industry is eager to see a global system in place for classifying companies and industries. This is important to economic development because it will impact how you define future target industries and clusters.

Standard & Poor's and Morgan Stanley Capital International (MSCI) jointly launched the Global Industry Classification Standard (GICS®) in 1999, which is aimed at easing the investment research and management process for financial professionals worldwide. The system is revised often to reflect company and industry changes.

Effective on April 30, 2003 the Global Industry Classification Standard consists of 10 economic sectors aggregated from 24 industry groups, 62 industries, and 132 sub-industries. All economic sectors have a two-digit identification code, all Industry Groups have a 4-digit identification code, all Industries have a 6-digit identification code and all Sub-Industries have an 8-digit identification code.

S&P 500 GICS® Sectors

-Consumer Discretionary, S5COND
-Consumer Staples, S5CONS
-Energy, S5ENRS
-Financials, S5FINL
-Health Care, S5HLTH
-Industrials, S5INDU
-Information Technology, S5INFT
-Materials, S5MATR
-Telecommunication Services, S5TELS
-Utilities, S5UTIL

Go here to read more.

Looking Ahead to 2004

American Demographics has an interesting article in it December-January issue about looking ahead to 2004. Here are a couple quotes from the article that make us think.

Mark Zandi, economist with Economy.com: "Most people see 2004 as the best economic year since 2000. Very good economic growth is in the cards, if we just don't screw it up."

Cynthia Robbins-Roth, Biotech executive: "Forget the Human Genome Project. Biotech is now figuring out its own definitions of what it does as it goes. There is no roadmap capable of leading us forward. We will figure it out as we go."

Jaya Saxena, 17-year old high school student: "My friends and I like to think we have better things to spend our time other than fashion. Girsl at school get up at 5 am to put on their makeup. I cannot afford to buy the latest fad. I want clothes that are flexible and can adapt to changes in the fashion world. I dress simply and don't try to look like everyone else. That's more important in my book."

Source: American Demographics (Subscription required.)

People Measure Economic Health by the Small Things

A recent Washington Post article discusses the outlook of the Washington DC area's economy. The reporter makes an interesting observation--that people measure the economic health of an area by the SMALL things in their lives. Do they have money to buy the kids' new shoes? Can they afford any type of vacation this year? Can they pay the co-pay on their health care insurance, if they're lucky enough to have health insurance.

This is an important perspective for all of us in economic development to bear in mind as we use sophisticated yardsticks to indicate local economic health.

Go here to read more.

Hispanic Company Index

Looking for a Wall Street play off the Hispanic demographic tsunami? Take a peek at the Hispanic Index that made its debut this month -- the creation of New York investment bank Samuel A. Ramirez & Co. It tracks the 10 largest Hispanic companies in the United States and Puerto Rico, based on market value and trading volume. Go here to read more. We should be giving more attention to Hispanic and other minority-owned companies as future growth targets.

Observations About Arizona's Top 100 Company List

Business reporter Joe Talton from the Arizona Republic makes some interesting and useful observations about Arizona's top 100 company list. Go here to read the article. Here is one interesting observation:

"Wal-Mart and Honeywell, the two top employers on the Republic 100, illuminate two Arizonas. One is the huge service sector, with jobs that often lack full-time security or affordable health insurance. This pushes huge costs onto the public when these workers need health care. Honeywell is an icon of the defense and technology industry that took root here in the 1950s, providing the best jobs. This sector isn't growing and in some cases is shrinking."

Holiday Shopping: Initial Take is Good

Post-Christmas interviews with some of the major retailers suggest this was a pretty good shopping seaon, which is good for many retailers which capture 40-50 percent of their annualsales during the season. Go here to read more.

Corporate Merger and Acquisition Primer

Many communities are faced with the side effects of mergers and acquisitions each year. This primer from the Economist might be informative to you if you are one of those communities.

There are three types of mergers: 1) horizontal integration, when two similar firms tie the knot; 2) vertical integration, in which two firms at different points in the supply chain get together; and 3) diversification, when two companies with nothing in common jump into bed. These can be a voluntary merger of equals, a voluntary takeover of one firm by another; or a hostile takeover—in which the management of one firm a tries to buy a majority of shares in another.

Mergers in America are regulated by the Federal Trade Commission, and in Europe by individual countries (Europe’s competition commissioner scrutinises cross-border mergers). In both places, mergers that are deemed to be against the public interest can be vetoed.

Merger activity generally comes in waves, and is most common when shares are overvalued. The late 1990s saw fevered activity in America, Europe and Asia. Then the pace slowed in most industries, particularly after September 11th 2001. But cross-border deals continue to surge in Japan and some western companies are now eyeing up China, a potentially huge market. Four big merger announcements in June 2003 suggest that the pace is picking up once again as companies that weathered the global recession seek bargains among their battered brethren.

In theory, different sorts of mergers bring different benefits. But the damning lesson of the merger waves of the past 50 years is that, with one big exception—the spate of leveraged buy-outs in the United States during the 1980s—many mergers have failed miserably.

Source: Economist

Holiday Bonuses Few and Far Between

Maybe you already know this from your own experience, but I thought I'd pass this along in any case.

"Did you get a holiday bonus this year? If so, you were clearly in the minority. Hewlett, the big HR consulting firm, says that nearly two-thirds of U.S. organizations decided not to offer a bonus to employees over this holiday season.

Why? For one thing, nearly half of the companies polled in the Hewlett survey have never offered a holiday bonus. Some 17 percent of the organizations "discontinued their program." Of those that did away with the holiday bonus, 52% did so between 2000 and 2003--fairly tough years for most businesses. Another 42% cancelled their bonuses in the 1990s."

Source: Fast Company Magazine