Thursday, March 20, 2008

Chapter9: PERCEIVED NEEDS. Tibet, Lamplight Unto a Darkened World





Chapter 9

Perceived Needs








“There’s a sucker born every minute!” -P. T. Barnam










Sitting at his new desk, surveying his luxurious new office, Tom started to reflect upon the years of work it had taken him to get there. It was something that he did from time to time, at each personal milestone, to reassure himself that his investment in himself had been worth the effort. He made many sacrifices in conforming to the mold of the ultimate corporate executive. While they didn’t feel much like sacrifices to Tom, he was beginning to realize that his life was being guided down an unknown path. The path itself didn’t seem to bother him, but the unclear destination was beginning to nag at his conscience.

“They must be right, I just don’t know as much as they do. I only need to learn more, until I understand everything better,” was his initial belief.

“I can trust these guys to train me right, show me the ropes; guiding me through valuable work experiences,” he reassured himself.....again.

His secretary came to his open door, and peered in while he was deep in thought.

“Will you be needing anything else, Mr. Walthrum?” she asked cheerfully, in a slightly beguiling way.

“No, Alicia. You can go home now. Thanks for all of your help today - getting settled in, and all.”

“No problem, sir, it’s a pleasure. It’s good to have new blood in our division. All of the old guys are so stuffy, and boring. They seem so lecherous at times.....all except Dean, of course!” Her smile merged into a seamless wink.

“Well, we do live in San Francisco......” Tom’s voice trailed off. “He has always been very nice to me.”

“He would be, wouldn’t he?” she countered playfully.

Tom was getting a little uncomfortable with the direction of the conversation, and he wanted to forestall any dead end turns before it was too late to escape. He remembered finding Tim atop Sarah, on the VP’s normally immaculate desk, when he was working late one night. Tom felt very awkward, because they both were married; and it was an obvious statement to use the bosses’ desk for a wild rendezvous. The sex didn’t bother Tom, but the stupidity of having it on the bosses’ desk, and the fact that they were both married, did. Tom couldn’t comprehend why two people would endanger their careers and marriages for a fling. He had said nothing, and reassured Tim the next day that he wouldn’t discuss it. But the cleaning lady did, and both people mysteriously disappeared a few weeks later. They didn’t show up to meetings that they should’ve been attending; and officially, everyone pretended like they had never existed.......even though their mis-adventures were the talk of the office in the coffee room. Tom didn’t want the same thing to happen to him; and he could tell that his new secretary.....who was also the VP’s secretary..... was obviously looking for some play, or possible dirt on Tom. So he changed the subject abruptly, and decided to pump her instead.....for information.

“Hmmm, yeah. Hey, how many new hires will there be this year?”

Called back to business mode, she transformed quickly from sex kitten to the epitome of efficiency.

“Well, most all of our offers were accepted; except for that Harvard guy. He was too self absorbed for me anyway. I guess that comes out to two B.B.A.s, and nine M.B.A.s.”

“Wow, that’s a lot of new folks - even for a company of this size.”

Fighting a slight edge of anxiety, he casually asked her another question.

“Are there enough positions for everyone to stay on, or do they expect high turnover from last year’s hires?”

“Oh, from what I understand, we’re so behind in our finance and accounting areas that we’ll be hiring ten to fifteen new folks each year. A lot of the old guard are ‘retiring’ soon, and management wants a smooth transition,” she said, as her eyes traveled over Tom, his office, and finally his clock.

“Opps, where has the time gone? I have to leave now. See you tomorrow, bright and early!”

“See you Alicia, and thanks again!”

Tom was relieved for her quick departure. Once past her sexual advances, he got more disturbed by her reference to ‘retiring.’ He knew what that really meant, as he was beginning to understand the double entendre of the corporate vernacular - much to his dismay. Unfortunately all of his advances, his proud achievements in his work, were not only seen as accomplishments for him, but heralded as indictments of his predecessors. Tom had no desire to make his mark by climbing over others. He believed his accomplishments should stand on their own; that there didn’t have to be any comparisons......just ongoing joint improvements. He resolved that he wouldn’t be used to run off ‘dead wood.’ The derisive term for those who were out of favor with current management. As an unexpected side effect, these people appreciated Tom’s sincerity, and didn’t see him as a threat.

Additionally the secretaries, like in most organizations, ran most of the day to day activities for their bosses; or at the least, had a major influence on their bosses’ decisions. They found Tom to be handsome, and attractive, in a “Wonder Bread-boy” sort of way. So, it had become an open challenge between them to see who could bed him first. As a result of these two factors, Tom was given valuable inside information on past history, management practices, and office intrigues. He was just being himself, and was surprised that that, as much as his abilities, led to his success.

“We only succeed, if people want us to succeed,” was one of his manager’s favorite sayings. Tom liked his crusty first boss, Robert. He was proud, and hard working; making it to his current position through sheer grit, and excruciatingly long working hours, through years of woeful understaffing. He had given his all to the company, but had reached his upward limit, as an accounting manager. Like many of the others, he lacked the broader exposure and comprehensive perspective that came with a top flight business school education. While he could perform circles around any of the new hires, he was out of his element in sophisticated company. He had been too busy in his life working hard in many grunt jobs, to have the luxury of politically correct manners, and the necessary wit to mingle with the top floor management of the company. He was a work horse that had been nearly used up, and like so many others, he was fighting to just retain his job. He was continually boggled by Tom’s naiveté, and frequently told him so. He didn’t blame Tom for being brought in as heir apparent. He knew it wasn’t in Tom’s nature to learn all he could, then backstab and take. He was just continually amazed at how Tom could be so smart, yet also so gullible. Sensing Tom’s sincerity, he was happy to pass his knowledge of life onto him. It helped his young friend, and was part of his revenge to those on top. He knew that tools can cut both ways. And, that Tom was a power tool that could cut a swath in any direction.

Turning in a smooth, fluid, circular motion, Tom swiveled his $1,500 chair around, to face the wall of glass in his new office. Alicia, and his old manager were soon out of his mind, as he took in the beautiful nighttime view of the Bay Bridge, the Golden Gate Bridge in the far distance, and the glittering jewel of ‘The City.’ It always took his breath away to see the city at night, aglitter with lights that literally sparkled off of the bay waters. One of his buddies in cost accounting told him that the annual cost for their individual offices exceeded their salaries. That was amazing to Tom. The power in that simple fact conveyed authority to Tom; and to all of his subordinates, who were left in the large open spaces and cubicles.

“They want me enough, value me enough, to spend hundreds of thousands of dollars on me,” was his first impression. Now, however, he began to get the nagging sense that his ‘value’ was more esoteric than real. He was only a part of someone’s political empire within the company; a visible indication of his status and then, collectively with others, that of the guy above him.

“I wonder if I’m just not a more expensive piece of furniture, a human computer? Just more efficient, and therefore more productive, than the old models?”

Tom was beginning to get an indication of where their ‘management development’ path was leading......into smaller, but more treacherous, shark pools.

“Right now I’m being nurtured. But eventually, they’ll phase me into their working cadre of sharks. I’m being comfortably converted. Very comfortably converted. Being bred to be dependant upon an affluent lifestyle that they think I’ll do anything to retain. So you’d better just keep that in mind, and don’t get too attached to what you’ll be giving up at some point,” he reminded himself.

“But, that doesn’t mean I can’t enjoy the ride,” he reasoned.

“Anyway, if I’m visibly enjoying myself, they can assume it’s for whatever reasons they desire. If they’re honorable, like I hope they are, then fine, there isn‘t a problem. If they aren’t, well then, I don’t owe them anything,” Tom rationalized.

It was then, as Tom began to recognize that sincerity wasn’t as prevalent as had been portrayed, that he realized that he was amidst the worst sort of people.....those who were clever enough to portray a flawless image of impeccable behavior, while performing the worst of deeds. Appearances weren’t anything like reality. In Tom it was, and that’s what his first boss recognized. While the others, in their twisted states, only saw Tom as a very attractive conversion subject. One that they could ensnare, and turn to their uses. They banked on the idea that his desires for power, money, position, and material possessions would surely supersede any silly attachments to sentimentalities. They mistook his passion for something it wasn’t. They thought it was for their same desires. Not as an idealistic view of corporate business as a logical approach towards bringing order and sense, to a confused, chaotic, and disorganized world. They couldn’t comprehend his level of commitment to sincerity. It was through their complete misjudgment of Tom, that he realized that everyone....no matter how strong or powerful....had his blindsides. As a result, there were things that they couldn’t see, due to their absorption with the world - as they perceived it to be. Their version of reality was so deeply ingrained into their behavior, that they couldn’t see some very obvious things. Being clever, they tried to guard against this through the acquisition of information from various sources. But in time, they were surrounded with those of their same ilk, and therefore their thinking would always become insular and narrow.

“Well, if I’m going to learn, I’ll still learn from the best. ‘Half of knowing what to do, is knowing what not to do,’ right?” he told himself with a laugh. “If I have to dance with the devil to know how to beat him, I will. If I was wrong, and have been tricked, then I’ll have to figure out how avoid getting tricked again,” he reasoned logically.

Tom was embarrassed and disappointed that his view of the world, and his solution towards dealing with it most effectively, was potentially very wrong. He had worked most of his life to get to where he was, “and it might just be an empty prize,” he thought dejectedly. Brightening himself up, he temporized.

“Its probably not as bad as I think it is. And, after all, how can they be so wrong, and look so good?”

But the thought, once raised, lingered in his subconscious - his self protection area, that his mother had so adeptly trained him to respect.

********

As Tom prepared for his big meeting, he was called out of his office by the former receivables and billing supervisor he’d replaced. She was a wonderful Philippine woman, whose only fault was falling for the bait that the other women dangled in front of her. She’d been their supervisor, but gratefully took a demotion so not to have to be responsible for their work, or continuing dramas, any longer.

“Thomas, please come here. These girls no want to work. They lazy!”

"Ok, I’m coming,” he replied grudgingly, as he left his quiet office for the bull pen where his clerks worked. As he approached the two black women and Imelda, he could hear that the current confrontation was well under way. In a way the dramas were comical, and he knew that the women weren’t ever half as serious as they sounded. But he also knew that he couldn’t let the dramas escalate either. He had just fired one employee, a black male Vietnam veteran, for hitting a Chinese woman. She had baited him one too many times, and his fragile emotional state didn’t allow for baiting by women. Tom had inherited a work pool mess that contained five distinct races, none of which got along with the other. Being a male, he spent most of his time playing referee, and curtailing cat fights. He liked and respected all the women, and they respected him. But they didn’t respect each other.

“What do you think of that Flip, calling Mr. Thomas out here, Louise?“ asked the younger black woman, defiantly.

“Ahhh, she’s nothing, and she knows it! Did you hear that her Godmother, Ms. Marcos, got busted for stealing shoes at Payless?”

“No!” the young woman said, with fake surprise; as she played into her friend's joke-in-progress.

“Uggh huh, after they ran that controlling Flip outta the Philippines, they found thousands of shoes she’d left behind in her mansion! By the time she got here, she only had a few hundred pair. The poor thing! Someone took her to the shoe store, and she thought it was a new closet that our government had given her as a refugee. You know, for allowing all those military bases over there. This one here,” she said, pointing at the Philippino woman, “is having a shoe drive this weekend at the mall, to benefit her Godmother’s cause!”

“Ha! You said it, sister! You got her good!“ laughed Shirley, heartily.

“Watch out, Whoopi, cuz Louise was here afore you! And, I ain’t talking no trash, either!” Louise said, as she shook her head and body with an exaggerated movement that ended with her index finger pointing at her desk - with dramatic emphasis.

“Uhhh huh! Now youse talkin!” confirmed the younger woman, laughing.

“What you black girls do? Go back to work now! Lazy hoes...”

“Honey, Louise, you best be hearin this... I know that flip isn’t comin off on me like that.....”

“She right, you lazy....” started the Chinese woman, coming to the defense of the Philippino woman.

“....and don’t even start with me, you slant eyed chink!” the black woman continued.

“All you nigga girls want is watermelons and sex! Baaaah! Go Away!” yelled Imelda, in frustration.

“Ugh ughhh, she didn’t just say that! I know she didn’t just say that! Hold me back Weeze, fore I go killin her sorry pixie ass! Hey? You wanna know where all of Imelda Marco’s shoes are goin, donch ya? Up your tiny little ass! Don’t go callin me no nigga!” screamed the young black woman.

“Ladies, please. Please! Calm down. I know this is just a misunderstanding....” temporized Thomas.

“Its a misunderstanding, alright! She misunderstand how I’m gonna be kickin her ass, all the way down the street and outta our country!

“Stop, Shirley, you git me laughing so hard I can’t do my work! Listen up to our new boss, an get back to work now,” instructed the older woman, winking at Tom.

“You women are going to be the death of me yet! I used to take you all too seriously, now I understand that you’re all just playing with each other. But people walking by from other departments don’t understand your humor. Everyone thinks this department is the dregs of the company. You’all keep this up, and they’ll keep believing it. Then they’ll replace me with some asshole, and you’ll be miserable. So, try to be good, at least for today. I’ve got a big meeting I’m trying to prepare for,” he pleaded.

"Ok, Mr. Tom. We will, just fore you. Right girls?”

“Yeah, you know we just be foolin aroun. Don’t worry, we’ll be good. We don’t want to lose you. Youse the best boss ever, eh Weeze?”

“Uggh huh, we so luuve you Mr. Tom.”

"Ok, don’t shift all the bullshit onto me now, ok?” he laughed. “I swear, you do get me laughing. But remember what happened with Ronald last week. Things can go from funny to ugly really quick, if you’re not careful.”

“See, me eye!” interjected the Chinese woman. “It still black an blue!”

“Now you were deserving that whooping, girl. I heard what you said about his mama...” started Shirley.

“I’m leaving now,” Tom said with exasperation. “Just keep it under a dull roar, ok?” he pleaded.

“Sure will, Mr. Tom,” they said in unison, as they all laughed. It was their standard ending to one of his scoldings. The one thing they all agreed upon.

“You just don’t understand women, yet Thomas,” commiserated Louise, as he lingered by her desk and everyone else returned to theirs. “You still a puppy, and women’s theyse gots you wrapped around their little pinkie fingers.”

“I know, and I guess I don’t care. What I don’t understand is that all of you have suffered through discrimination, and it seems to me, a simple mid-western country boy, that’d mean you all would understand each other’s troubles, and get along better......not worse. It’s been a revelation for me, moving to California, and dealing with so many different cultures who don‘t really get along.”

“We’se just people, Thomas. And people whose hurting don’t always have much patience to give. You should understand that. People’s whose different got enough to deal with, they don’t want to deal with nothing more. And, you know that some are sincere, and some play sincere. I’m not sure you see the difference yet. But don’t you worry, we’ve got your back.”

“Yeah, I know you do, and I really appreciate it.”

“Well, all joking aside, we appreciate you too. But, we also know that you’ll be going soon. All the good ones do. I’ve seen more come and go in my twenty years- you don’t wanna know. So, it gets kind of hard after a while, and we gotta just have a little fun to keep us from going nuts. Believe me, those bitches deserve whatever we dish out. They smile in your face, and stab you in the back. I see it. But, you handling it well. Your doing good. Before long, we’ll be having to be training a new boss, and he’ll not be as good as you....I gar-n-tee it!”

“Thanks.”

“Go get ready for your meetin! I’ll get this mess in line for ya,” she said, as she winked and smiled.

Tom really appreciated Louise. She had grown up in the deep South, and hadn’t a very good education, but she was the wisest woman he had ever met. Her big brown eyes glittered with playful glee, while the depths of them reflected deep wisdom - born from a lifetime of disappointment and pain. Tom had tried to promote her up, but the glass ceilings of corporate America held her down, due to her lack of a formal education. The most he could do was give her a significant raise that put her at the top of her salary range. She understood his efforts on her behalf, and respected him deeply. They all got along well, and things suddenly worked - in a department that had been broken for a very long time.

****************

The meeting started on time, as always, and Tom was ready for his multimedia presentation. As far as he knew, no one but large corporations had the technologies that enabled this kind of presentation...it was 1983. It was yet another sign of supremacy that emboldened Tom into performing at his peak. He had called the meeting to discuss the review of product profitability. Tom felt that the age-old company way of viewing product profitability ignored some important aspects that resulted in distorting the picture for upper management. No one but the accounting groups, brand management and upper management, had access to unit product cost reports. It was a closely guarded secret, the true costs and profitability of consumer products. If the suppliers knew, prices would rise. If an insider defected with the information to a competitor, a highly profitable product line could be lost. Or, worst of all, if the public knew; their price gouging would have to stop. The implications meant losing profitability at best, losing the entire product at worst. Horror stories abounded in the consumer products industry about years of R&D and product development costs being lost to another manufacturer. Industrial espionage was alive and well. Greed kept it alive.

When product loyalty by customers was based upon Brand recognition, and a company wasn’t the first to market.....or the best at marketing....then it lost those products with the highest profit margin. And, they were cash-cow prizes to protect. Tom had first thought that his reports were wrong, the cost figures were so low, and counterintuitive. Now he knew they were factually accurate, but very skewed; and not inclusive of all marketing costs. Tom picked this meeting to bring up the issue; using the company’s mainstay product brand as an example. The company had 39 seemingly divergent products; but a few main products accounted for the lion’s share of income. A few pennies saved here and there, meant millions of dollars a month in extra profits. Tom knew that his target was well chosen. Improvements in this line, provided the greatest impact; and therefore the highest exposure for his success. Once he proved his theories here, he knew that he could go onto anything.

“Thank you all for attending our fact finding meeting today. I’ll make my presentation as brief, and to the point as I can, then we can open up the discussion. I’d first like to introduce everyone. Mr. Alex Jones is the brand manager for EasyKleene. Mr. Allison is the purchasing manager in charge of bulk chemicals, and Ms. Ackworth is the buyer for packaging, labels, and caps. Mr. Max Feldman is the Division Controller, and Mr. Hardrock is the manager of the cost accounting group. Mr. Randall Wihterswerth is special assistant to the Senior vice president of Finance and accounting, and is currently working on a division profitability analysis. So whatever we discuss here today, we can run with it, if need be.....all affected parties are represented.”

Speaking up, right after Tom took a breath, the brand manager’s voice boomed through the room.

“I want everyone to know, from the onset, that this company is run by Brand management. Decisions are not necessarily democratic. There are many other considerations that have to be weighed, other than product cost, for full product profitability.”

“Well,” interjected Tom, jumping into the fray without fear. “Then maybe you should run the meeting. I only called it to bring to everyone’s attention a few points that may have been overlooked; so that you would all have accurate information. That’s my job. Not making decisions, but seeing that you have the most accurate and timely information; in order to make informed decisions.”

“I have to be leaving soon, I have an important meeting with one of our advertising agencies about some new product demo commercials. So Tom you run the meeting, and tell us what you’ve found that you think we may have missed.”

Rising to the thinly veiled challenge, Tom continued, as his friend Patrick blanched visibly.

Tom’s boss, the Division Controller, watched on in amused silence. He was curious to see what Tom’s approach was going to be, and if he would survive the fallout. To him, the gambit was too risky. He could afford to have Tom beat up.....even dismissed, but he wasn’t about to risk taking on Brand management again. He had done that in the past, and been handed his head on a platter. But, he was curious about this quirky guy from the Midwest. This neophyte that he had been forced to take. He held open distain for the new esprit de corps; feeling safer with his little army of battle hardened workhorses. The new hires lacked experience, and were willful. He didn’t quite know how to control them. They didn’t fear loss of jobs, like the old-school workers. They had multiple job offers right out of college; and he had been told: ‘we were lucky to get them.’ So, his normal management by fear no longer worked. The audacity of Thomas to even calling the meeting, only proved his preconceptions. “I’m going to enjoy seeing him eviscerated,” he thought with barely suppressed glee.

Tom, nonplussed, continued. He knew that above all, money and profits ruled. All he had to do was give the Brand manager the information he needed for a great success. Tom’s boss always tried to fry people with his numbers, hence the Brand manager’s defensive stature before Tom had even begun. It was time for a new, and novel, approach. Give them the information, and therefore the power, to fix things themselves. Hand over the victory without thought of personal gain. Reputation building was the key to Tom. He had done it most of his life, and he knew that it worked. It was much better to have others talk good about you, than ever talk about yourself. It took time and patience, but it worked every time. Popularity was so easy to manipulate and control. He had learned that in high school. So long as popularity wasn’t your main objective, and therefore you didn’t get your ego tied into it, it was easy to accomplish. So while everyone thought Tom was as shortsighted as themselves, he was planning for the long term popularity contest. That’s how he came to see corporate politics.

“Well,” started Tom. “You guys haven’t really missed anything, I think something has just crept in, and there wasn’t anybody watching.”

Tom’s opening statement softened the crowd, and did what it was intended to do - change the meeting from a perceived witch hunt to a constructive exercise.

“As these graphs show, our unit cost on EasyKleene, has edged up over the years.”

“We know that, Thomas. That’s normal with the rise in inflation. Our purchase price of materials continues to go up. Except where we vertically integrate, like we did in buying our first bottling plant in Florida,” said the purchasing manager.

“Well, actually, adjusting for inflation as you speak of, your purchasing efforts have kept the prices lower than they have been in the past. Thanks, no doubt to your competitive bidding process, and our increased consumption. That’s shown here, on this inflation adjusted diagram.” Tom replied with complete composure, as if he expected the question.

“Notice, that as the statistical case production increases, material costs declined due to higher quantity purchases. Rail car costs of Chlorine gas stay semi-stable, but caustic soda and surfactants decrease significantly. And even though obtaining the bottling plant seemed like a good deal, and had been presented that way by the plant manager, we’re not very efficient at blow molding. The cost of shipping bottles to Florida from Atlanta is cheaper than making them ourselves. The economies of scale of a large bottle maker far surpass our efforts in a broken down plant. The only reason I can see for keeping that plant is for the ego of the plant manager who is angling for a promotion. It’s very shortsighted, and should be reviewed by the manufacturing department for long-term viability. But, that isn’t the real reason I called you all here today,” Tom completed casually, to build the anticipation.

He was watching the body language and faces of his powerful little audience; it had gone from pained acceptance that they had to even come, to genuine interest.

“I’ve got them now,” he thought. “Now go in for the punch line, cuz you won’t have them long before they start arguing with each other, and it all degenerates.”

“On this third graph, I am showing the percentage of unit cost attributable to freight breaks, cost of caps, price packs, couponing, military pricing breaks, and extended terms and bad debts.”

As the numbers on Tom’s graph sunk into their collective awareness, there was an audible gasp. Without waiting for bedlam to break out, Tom asked a direct question to the Brand manager.

“Did you know, Alex, that the sales reps have combined promotions together to increase stat case sales, and that the net result is that we are losing money on many of their sales?“

“You have to lose on some sales to keep shelf space. Shelf space is critical to new product introduction. We get it because we have power to discount when need be, without making the product look discounted. Its a very delicate balance.“

“Yeah, I’m aware of that, but since I’ve had to clean up the billings department of literally thousands of unresolved invoices, I stumbled upon a few patterns. K-mart, for example. I figure that we lose money on almost every truck load to K-Mart.“

“But the volume K-Mart could purchase is staggering, we need to sell to them cheaper.”

“I agree with you, even though that isn‘t my area of expertise; but I bet you didn‘t know that they don‘t pay for 15% of everything we ship to them. There are literally hundreds of invoices in our ‘problems file‘ that were shipped to one store, but billed to another store. Ten and twenty thousand dollar invoices! They refuse to pay them, because each store is supposed to be independent. But in fact, it’s a very elaborate shell game. They admit it was received at one store, but not at the billed store. So the billed store won‘t pay, and by the time we prove that it went to the other store, it falls outside of their payments guidelines of ‘billings within 60 days.’ We can almost tell that huge orders are made in bulk for promotional pricing purposes, then redirected after the shipments are in the system. The sales rep doesn’t care if we ever get our money, or if every shipment is a loss, he gets paid based upon stat case shipments, not profitability of their sales, just case movement.”

After letting that sink in a bit, Tom continued. “Every shipment to K-mart has special promotion pricing on the invoice. Every one. And, did you know that they have a whole department of people who cut up newspapers and add those manufacturer’s coupons with ones redeemed in the stores; then submit them to us in box loads for reimbursement?”

Alex, then responded to Tom’s statements.

“Tom, I think you have something here that we need to review. We have different sales channels. Sales reps are not our employees, and therefore are not motivated by profits.....just statistical case sales, as you say. This will help me in our efforts to beef-up our direct sales force. Thanks for the heads up. Can you send that information onto my assistant Brand Manager?”

“Sure, but I’m not done yet. I know you have to leave, but give me a few more minutes. ok?”

“No problem, go on please...”

“Can you give me, in a nutshell, what you are trying to achieve in Brand management? I ask that, because it’ll help me look for things that either aid in your efforts or hurt them. Specifically, the price packs, couponing, and special promotional offers. Right now, if I combine them all together, they seem like a very large percentage of unit cost. Essentially, 40% of the unit cost of most consumer goods is marketing, advertising, and promotional expenses. 10% to 15% is freight, and the bottle and labels cost 15%. The cost of the cap on the bottle is 20% of the unit cost, and the actual contents is only 10% of the cost. A statistical ‘unit’ sells for about 99 cents, and our base unit is one gallon. So, a half gallon bottle is half of a ’stat’ case, and a gallon and a half bottle is 1.5 ’stat’ cases. The store gets a ‘stat’ unit for about 84 cents, before couponing. It cost us about 35 cents in total, per unit, delivered to our customer’s door. The largest material cost is the cap, of all things. I have to tell you all, that one got to me. I had to check the numbers over and over on that one. It just messes up my head to think that I buy a gallon of something, and the cap cost more than the contents!”

“Its the same with all detergents, Thomas. Ninety five percent of it is filler,” offered the purchasing manager. “That's why they’re so incredibly profitable. Packaging is where the cost is at; that, and of course, marketing and distribution. It would be a lot more efficient, and incredibly cheaper to the consumer, to sell consumables in bulk with simple packages.”

“But that’s doesn’t make huge profits, does it?” interjected the upper office maven, Randall. “We give people image, convenience, and wonderful intangibles that cost nothing - and, garner everything. We charge according to what the market will bear, not what makes sense. That’s how you get rich, Tom,” he explained in his typically sinister, and condescending, way.

Tom couldn’t stand the guy. He was a tall and anorexic looking man, who had joined the firm the same year as Tom. But being from Harvard, he started on the top floor. His specialty was mergers and acquisitions, and the stock market.

Then Alex joined in the conversation, and explained a few things.

“The concept is not to sell something in quantity, cheap. The idea is to first create a perceived need in the consumers’ eyes, through effective advertising commercials. Some message to the housewife that if she doesn’t buy this fabric softener, that she’s cheating her family out of something good. ‘Nice, soft, clothes that smell good, and are therefore ‘better.’ After the need is established, then you fill the perceived need with a high quality product. So, you have to build the perceived sense of quality. You want them to say ‘no second best for my family, only the best.’ That requires quality brand recognition. You want them to buy ours, because it’s perceived as the best. That assures that they continually buy our product, not some knockoff version. By constantly reinforcing quality brand recognition, we assure stable and steadily growing market share. Since the products are all quickly used, and almost constantly consumed, you have a built-in money machine. Who cares what the cap costs? We are making nearly 300% markup on something that people keep buying.”

“Thanks, Alex. That helps a lot,” Tom managed to say out loud, even though his stomach turned.

The inefficiencies of consumption, and the overpricing that went into nonproductive things like more marketing propaganda astounded Tom.

“But, I can think about that one later!” he told himself, silently.

He had to remind himself to stay on course, and to save his personal disgust for a better moment. “Can’t make any constructive changes if I’m dead, or discredited,” he schooled himself. So he quickly collected himself mentally, and continued to conduct the meeting on a positive note.

“Regardless of the marketing strategy, which seems quite sophisticated and astute, there are a couple opportunities here. I have to say, the depth and sophistication of the marketing wizards tells me that they are capable of making snow into a saleable commodity......and convincing people that they should be happy to be able to buy it!” Tom praised Alex’s profession with a two sided compliment. Alex, with his values of course, only took the outward compliment, not understanding what Tom really implied. He absolutely beamed; despite his earlier contempt of Tom.

“The things I think that the numbers show, is that the caps - unlike everything from plastic bottles to caustic soda- have gone up significantly, rather than gone down in cost. That, of course, was hidden in the numbers that were not adjusted for inflation. Generally, purchasing costs have gone down. A great thing, eh?”

At this compliment, among peers and superiors, the purchasing manager beamed as well. And, so he felt compelled to speak.

“Tom, you point out some very salient facts. Can you get those graphs to me? The ones that show the inflation adjusted costs versus the unadjusted costs?”

“Sure, in fact I thought you might want that, so I had my secretary send on a complete package to your office.....with all the detailed spreadsheets included.”

“Thanks; and, I think I know the problem with the bottle caps. We had to change the caps to incorporate child proof characteristics; and the producer has used that as an excuse to stick it to us with price increases. We’ll bid that cap out next month, and then see what we get, eh Ms. Ackworth?”

“Yessir,” she replied in obvious supplication.

“Yeah,” piped in Alex, “we had to redesign the bottle so that we wouldn’t get as many lawsuits on blinding people from back splashing, and from children drinking it. The handle is now hollow, and the cap is big and impressive looking, so we used that in our marketing,” he said proudly. “We pitched it as another quality improvement characteristic; portraying it as a superior way to avoid accidentally splashing it on your clothes, or the kids spilling it. That is a great example of how we turn a negative thing into a positive thing. It’s all in the marketing, Tom. Remember, create the sense of perceived need, then fill it with perceived quality. It’s a winning combination. It’s made us great!”

“Yep, that’s a sure thing!” Tom replied tersely to cut off the dialogue, and wrap up the meeting. He had all he wanted to know, or hear, today. Feigning a smile, he continued on unchallenged.

“I’ll get some reports to your assistant brand manager on the profitability by distribution channel, and by major customers. I’ll even add in unpaid bills, so that you have something to support your recommendation for direct salesmen,” Tom added with finality.

“Well, that's it gentlemen! Thanks for coming today. I hope it was as helpful for you, as it was for me,” Tom completed succinctly.

Everyone rose at that point, and left the conference room in good spirits. All except the division controller. To make matters worse, the brand manager made a comment to him on the way out.

“Max, I’m not sure where you found this one; but he’s the best I’ve seen out of your department yet. He has the right attitude. You could learn something from him!”

Tom heard the gist of what was said, and saw Max’s face turn its characteristic shade of deep red that signaled the onset of one of his rages. Tom resolved not to take it this time though, and left the room by the side door with his buddy Patrick.

“That was amazing, Tom! How do you have the balls to do something like that? But, you are playing with fire, man. Did you see Max’s face?”

“Yeah, so what? He’s got to learn that our job is to facilitate efficiencies, not attack people. Everyone makes mistakes, or overlooks something. The world would be a much saner place if we just recognized that and worked together; instead of always engaging in the blame game.”

“Whatever, dude. But you had better watch your back. He’ll be gunning for you now.”

“Why?”

“Don’t you get it? You embarrassed him big time by finding something huge that he should’ve seen years ago.”

“What am I supposed to do, act like a fool and ignore stuff? He hasn’t made the time to listen to me one-on-one; so if he isn’t going to do that, then he’ll hear it in a room full of people.”

“It doesn’t matter; you’re getting yourself in deeper than you want to go. Just soft pedal it, and do what you’re told. Remember, he who lives by politics, dies by politics.”

“I wish I could do that, Patrick, but there just isn’t time to get stuff done, and also worry about fragile egos. He’s got to learn to work with people, not try to always jockey for position - like it was a daily battle between people in the same organization.”

“But Tom, that's exactly what it is. It’s just whose team you are on. And right now, you’ve done well, but you aren't in a discernable faction. You have to pick Max’s kingdom, or another, you can’t just go willy nilly pursuing truth and justice. That just isn’t how it’s done!”

“Well if the company isn’t strong enough to handle self examination, then I don’t want to work here.”

“Listen Tom, companies like this survive despite themselves. They produce filler in a box, sell it for exorbitant prices, and throw all their money around. This isn’t some noble enterprise ‘for the betterment of mankind.’ They’re a bunch of greedy guys trying to make themselves powerful and rich.”

“Then why do you stay here?”

“Well, my dad is a doctor in Berkeley, I graduated from there, and I just want a job that pays well, is well perceived, and not too trying on my time and energy. I just want to live life, dude.”

“How boring.”

"Ok, I give up on you......go suicide yourself. See what I care anymore!” Patrick said in frustration and anger, as he quickly walked away.

Tom was puzzled by everything, but happy about his success today. He wasn’t going to let Patrick spoil it through his sour grapes at having no balls. As he reached his office, the phone was already ringing.

“Tom,” said Alicia. “Mr. Feldman wants to speak with you directly after lunch. Be here at 1:45 sharp. Boy, is he pissed. What did you do?”

“Nothing, I just succeeded, where he expected me to fall flat on my face. It was a little surprising, and I daresay it was disappointing for him that I did so well.”

“Well, I can’t help you on this one. Just be careful what you say to him. Let him vent whatever, and just say ‘yes sir’ to everything. Oh, I have to go, he’s coming out of his office now.”

“Thanks Alicia. It’ll be o.k..”

After lunch Tom met with Max. He wasn’t as nervous as he expected to be, but felt like he should pretend to be, so that the inevitable blow wasn’t so harsh.

“Don’t come in here all meek, and shy now Tom. Come on, sit down,” he said cordially, as he motioned Tom to the comfortable couch alongside his huge cherry wood desk.

“So, you want to play with the big boys, eh? Are you sure you’re up for it?”

“Well sir, I’m just trying to do my job the best way that I can.”

“Save the hearts and roses for someone who believes them, Tom. That was quite some act today. What motivated you to do that?”

“Well, as I said, I just thought it was my job to make cost savings improvements, and to utilize the information we generate to do that.”

“That’s my job, Tom.”

“Well, you didn’t seem to care when I tried to bring it up to you numerous times. And, frankly, I was worried that you’d take what I found and turn it into a pissing match. I’m just trying to work along with people, and do good stuff. Really, I am.”

“Unfortunately, I believe you; but, there’s a lot you don’t know. Let us handle what’s done with the information we find. Maybe I underestimated you, but I don’t think I missed one thing. You can say the meanest things to people when they don’t do what you want them to do. And, I don’t think you really care about it.”

“Should I? I learned long ago on the school yard, that bullies can physically hit me, but I can bring them to their knees with a few words. It’s a survival mechanism, and a way to retaliate. If a bully senses weakness of any kind, they’ll run all over you forever. Sometimes you’ve got to kick them in the balls to get them to back off. I don’t run anymore.”

“Well, that’s good that you don’t run. But, you’d better be careful about the fights you pick....because you can’t fight them alone in this environment.”

"Ok, I’ll be careful. Is that all?”

“Yes. Just do the work that Robert assigns you. No more meetings or memos without my review first.”

"Ok, no problem.”

After that, Tom was given interesting projects, and greater responsibilities. Robert was puzzled by Max’s directions, but he followed them and admired Tom’s veracity. Tom worked like a dog, late into the night, and over weekends, to further prove his worth. Before long, his work was going straight to Max for his signature. He barely even changed the phrasing, before he nodded assent, and signed his name. Everything was sent under his signature, and therefore was followed to the letter. It gave Tom unprecedented power, and he loved it. It all seemed to go well, until one portentous meeting.

Max and Tom had been called to an internal audit review meeting, in preparation for an upcoming internal review of Max’s departments. Operational audits were touchy things, but necessary. Tom had no worry, because his division was relatively honest. Max of course was completely defensive, and was acting intractable to the audit director.....effectively stonewalling him. Tom, not so scared, corrected Max in the meeting to save his ass from further embarrassment. Max, in Toms’ opinion, was looking guilty, by acting guilty, and was going down in flames in front of the cool and composed audit director. Max was furious. Tom had never seen him so mad, and he had a reputation for rages. None of which ever scared Tom. Tom had become tired of Max’s continual intransigence, and wanted a change. The next day, the assistant VP of finance, the man in charge of the development program, asked Tom to lunch.

“Tom, would you like another assignment?”

“Sure. What do you suggest?”

“How about a senior auditing position that would involve your EDP skills? An EDP auditor of sorts?”

“Do they want me there?”

“Yes, we’ve been keeping close track of your progress. Everyone is very impressed.”

“Everyone, except for Max.”

“Well, even Max. He just has some bitterness from past battles lost. A change will do you good. In fact it’s another promotion.”

“Oh, go on, you’re going to make me blush!” he joked.

“No Thomas, you have the potential to go to the top.”

“Thanks. But what about this Director?”

“Watch, and learn Tom. Watch and learn.”

"Ok, sure thing. Thanks for all your support and advice.”

“Its ok, we’re working towards the same things.”

“I hope so!” Tom said with a good natured laugh.

The next morning, Tom got a call from Alicia. “You’re on the carpet again, Tom. Be here in ten.”

“Will do,” was his simple reply.

“So you want out of my department?” was Max’s abrupt question, before Tom even sat down.

“No, they just suggested that I get other experience; and I think I can do you more good being your operational auditor, than your defender. Better a non threatening review, than a poor defense, eh?”

“Whatever. Good riddance.”

“I love you too Max,” was all he said as he walked out of his office. He smiled at Alicia on the way out, and she winked in reply. Tom felt that he had graduated.

Robert was characteristically blunt about the whole thing.

“Are you sure you want to move out of this division? You won’t have anyone watching your back there. As bad as Max seems, he does defend his people.”

“Really? Why have you put up with his shit so long, Robert?”

“Better the devil you know, than the devil you don’t,” he said with his characteristic, shit eating, grin.

Tom didn’t know then, how prophetic those words would become in his life.




















Tibet, Lamplight Unto a Darkened World…the American Delusion, a Parody of life ( L'illusion Américaine, une Parodie de Vie); is copyright protected, by author, Patrick Mahoney. Online Internet Reproduction/Propagation/Quotation Encouraged, with this citation. Any Printed reproduction, other than for personal reading, requires written permission by author, patrickm at http://patrickm.gather.com/ or patrick1000000000@yahoo.com




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