"Downsizing" ramifications - Evaluating and Interpreting the News

[Wes Bucey]

This is just a little FYI for folks to apply Deming's System of Profound Knowledge (SoPK) and a type of Failure Mode & Effects Analysis (FMEA) to what they read in the news each day and use a little mental energy to extrapolate and see how that may affect them, personally, as well as their organizations.

This news item is an example of "specialized news" (in this case from a journal specializing in news affecting professionals in the real estate investment community.) It demonstrates how these professionals extrapolate employment layoff news to ripples and ramifications in the real estate market. It is an excellent example of SoPK in real life and demonstrates how news and events outside your immediate area of responsiblity nevertheless can affect your activity. I expect to see other followups in how these mass layoffs will also affect the single family and rental real estate markets as family shrinking income affects ability to continue paying high rentals and mortgage payments.

One of the things you should contemplate each time you read some tidbit or see or hear a passing comment on TV or radio is NOT
"Thank God, it's them and not me!"
but,
"Wow! That's interesting! What can I do to protect myself from something similar or, better yet, profit from this news?"

Last updated: January 29, 2009 02:29pm
Boeing Ups Layoffs to 10,000
By (broken link removed)
CHICAGO-Boeing on Wednesday more than doubled its headcount reduction to 9,900. In conjunction with lower than expected fourth quarter earnings the Chicago based aerospace company said it is adding 5,500 layoffs to the 4,500 it announced it would shed from its Seattle-based commercial jet business earlier this month.

The 5,500 new layoffs are expected to be shed from other parts of the company, including its hefty defense division, which is expected to take a hit as the new government’s focus on economic stimulus shrinks defense budgets. Boeing’s defense and other divisions occupy space in the Los Angeles, Seattle and St. Louis MSAs as well as in Chicago; Philadelphia; San Antonio, TX; Huntsville, AL; Mesa, AZ; Wichita, KS; Houston, TX; Greater Washington, DC.

Boeing occupies some 84 million square feet in the US, including 16.1 million square feet of leased space, according to its latest annual report. Its commercial jet business occupies 35.9 million square feet of Boeing-owned space and and leases an additional 4.75 million square feet. Its integrated defense systems unit occupies 30.83 million square feet of owned space and 10.5 million square feet of leased space. Other divisions occupy 5.2 million square feet of owned space and 871,000 square feet of leased space.

Pfizer, Home Depot, General Motors Corp. IBM and Starbucks this week announced tens of thousands of layoffs, some in addition to previously announced cuts. So far this month more than 125,000 layoffs have been announced. More than 2.1 million people lost jobs in last year’'s mass layoffs, the Labor Department reported Wednesday. The total is expected to be similar in 2009.

I don't consider it my role to connect the dots for you, but I do consider it my role to tell you that the better your ability to connect the dots and apply them to your individual situation, the better will be your chance for survival and even excellence when others are failing and falling by the wayside.

This is not brain surgery or rocket science, just plain logic, exemplified by two of Deming's credos:

1. Drive out fear (mostly of the unknown, by increasing your pool of knowledge on a regular basis)
2. The first of his 14 points: "Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. "

Why not follow up by reacquainting yourself with Deming and his teachings? Start here:
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