Archive for July 2nd, 2007
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Original Ohio.com article: Marshals, furniture group to talk flammability rules
A recent deadly furniture-store fire added urgency to a push for federal flammability standards for upholstered furniture.
Furniture Today, a newspaper that covers the furniture industry, reported Friday that the National Association of State Fire Marshals and the American Home Furnishings Alliance plan to resume discussions toward that end.
The two groups hope to develop a proposal for the U.S. Consumer Product Safety Commission. They expect to settle on a meeting date soon, said Andy Counts, chief executive officer of the AHFA, a furniture-industry trade association.
Upholstered-furniture fires kill about 10 people a week, according to the commission. What makes them so deadly is the polyurethane foam commonly used for cushioning, said John Dean, Maine’s fire marshal and president of the national fire marshals group.
The foam burns extremely hot, he said, and emits a thick, black smoke and toxic gases. It also can cause a room to quickly reach the flashover point, when everything bursts into flames — a situation that’s believed to have occurred when fire engulfed the Sofa Super Store in Charleston, S.C., on June 19 and killed nine firefighters.
Plans for the meeting between the fire marshals and furniture makers were in the works before the fire, but ‘there’s certainly been some urgency applied on both sides’ because of the tragedy, Counts said.
The two groups have discussed the issue on and off for a number of years but disagree on whether the standard should address just smoldering fires, such as those started by cigarettes, or whether it should also address fires started by open flames — lighters, matches, candles, etc. That’s important because it would determine the kinds of fire-retardant methods used.
The furniture industry already has a voluntary standard that addresses smoldering fires, which account for most residential upholstery fires. That standard involves the use of a barrier to prevent the fire from penetrating the upholstery fabric and reaching the foam, Counts said.
The fire marshals favor a rule that would address open-flame fires as well as smoldering fires. Slowing those kinds of fires requires adding flame-retardant chemicals to the foam during manufacturing.
That standard is already mandated in California, so most furniture manufacturers that distribute their goods nationally already comply, Counts said.
However, some flame retardants have been linked to health problems, and a few states have either banned those particular chemicals or are considering doing so. Counts said such bans would limit furniture manufacturers’ options and make compliance difficult.
Dean counters that safe alternatives exist, and that other fire-retardant materials can be used in making furniture.
Those are the kinds of issues that are expected to be on the table when the two sides meet. Counts said the furniture makers are open to learning about new techniques or more environmentally friendly chemicals.
‘Basically it’s a fact-finding session,’ he said.
Even if the two sides reach agreement, however, the Consumer Product Safety Commission can’t act on a proposal until a third member is appointed. President Bush’s nominee, Michael Baroody, withdrew his nomination in May amid criticism from consumer groups.
July 2nd, 2007
Source: Remodeling Online
The aesthetics of younger, hipper homeowners is bringing minimalist design and the furniture look into the bathroom. “Seventy-five to 80 percent of our country still adheres to a traditional aesthetic, but contemporary style is definitely becoming more popular,” says Jody Rosenberg, national sales manager for Sonia. Specifically, bath furniture manufacturers say stand-alone vanities and accessories now make up 20 to 30 percent of the market and are growing in popularity.
Unlike traditional built-in cabinetry, contemporary bath furniture has a sleeker design and open shelving. To maximize the hidden storage, some designs turn vanities’ false fronts into U-shaped drawers to hold grooming items but still accommodate a sink and plumbing.
Read more about the furniture look trend.
July 2nd, 2007
DUBLIN, Ireland–(BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com/reports/c61262) has announced the addition of The 2007-2012 Outlook for Household Furniture Polish and Cleaners in Greater China to their offering.
WHAT IS LATENT DEMAND AND THE P.I.E.?
The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized.
Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if Greater China is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The “market” is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).
The latent demand for household furniture polish and cleaners in Greater China is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a market.
This report does not consider the notion of “unit quantities”, only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends). If inflation rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand.
This study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. In fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be latent demand for household furniture polish and cleaners at the aggregate level. Product and service offerings, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.
For more information visit http://www.researchandmarkets.com/reports/c61262
Contact:
Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
July 2nd, 2007
By VICTORIA LIM
A ruined birthday, an overdue grandmother’s gift, intolerable waits - all the result of the unexpected closing of The Kids Room, a Tampa furniture store.
Customers complained the children’s furniture retailer, at 302 N. Dale Mabry Highway, took their money - ranging from $1,451 to $2,747 - and never delivered.
The doors are locked. On the day we visited, UPS delivery tags dating to the last week of May were stuck to the door.
“This has been a tough year for us, so this is a big blow,” said customer Christine Pedersen of Tampa, who scraped together $2,110.58 for her daughter’s bedroom set. She placed and paid for her order on April 9. She became suspicious after waiting beyond the advised four to six weeks for delivery and visited the store after no one answered the phone.
Patricia King of Tampa paid $2,254.28 for a 12-piece set for her grandchildren that was to be delivered and installed May 27. On June 1, she was “shocked” to read the “Gone Out of Business” sign on the door.
“To say that I am disappointed, sad and angry all at once would be an understatement,” King said.
Complaints Filed With County
Florida Division of Corporations records show Raymond Koenig Jr., Linda Dexter Koenig, Christopher J. Koening and Kimberly B. Koenig - all with Wesley Chapel addresses - as directors of the company.
“They seemed friendly, honest and eager to please,” Pedersen said.
Seven consumers have filed complaints with Hillsborough County, investigator Cindy Anderson said. Anderson is trying to work with the store directors’ attorney, Buddy Ford of Tampa, to determine the status of customer orders.
“If the company has already ordered furniture, and it’s just on its way and it’s just in transit somewhere, we’re going to work with the company and the consumer to try to arrange for delivery,” said Kevin Jackson, chief investigator for the Hillsborough County Consumer Protection Agency.
Jackson said he has seen this type of predicament before, particularly with furniture companies. That’s why he recommends that if consumers can’t use a credit card that they seek a payment alternative.
“It’s not necessarily unusual. Ideally, you pay for half and then half upon delivery. It just depends on the retailer. This is an industry that has had this repetitive problem in the middle of delivery. We’ve had several instances just like this,” Jackson said.
Owners Start New Business
As consumers hope for refunds or the furniture they paid for, state Division of Corporation records show that Raymond Koenig Jr. and Christopher J. Koening intend to open another children’s furniture store in Wesley Chapel, Lazy Boy Kids Furniture Inc., 5229 Strike the Gold Lane. The address is a residence. No one answered the door when I visited recently.
For consumers who paid The Kids Room by credit card, dispute the charges in writing by sending a letter via certified mail to your credit card company. Paying by plastic for big purchases upfront for products and services you receive later offers a layer of protection.
You should also file a complaint with the county’s Consumer Protection Agency by calling (813) 903-3430 or going to www.hillsboroughcounty .org/consumerprotection.
If you have a consumer question, call the help line at 1-800-338-0808 between 11 a.m. and 1 p.m. weekdays.
July 2nd, 2007
By NICHOLAS L. DEAN
Crawford Furniture can now be called a ‘‘Custom Comfort Center’’ as the Jamestown business has partnered with England, a La-Z-Boy company.
Founded in 1883, Crawford Furniture is a manufacturer of solid wood furniture. The company runs both a factory on Allen Street in the city and an outlet store on Fairmount Avenue in Lakewood. On Tuesday, representatives from England visited with Lakewood Store Manager Tracey Heeden.
‘‘Even though we’ve been selling their upholstery for the last year, we just decided to partner with England and become a Custom Comfort Center,’’ Heeden said. ‘‘We will be able to sell for a bit less because we will now be buying in quantity from the factory and there will be other benefits as far as shopping goes.’’
Giving one example, Heeden said a customer shopping at an average furniture store might have to wait six to eight weeks for a special order — whereas Crawford Furniture will now be able to have special orders ready in 21 days.
‘‘It is very, very simple for the customer,’’ Heeden said. ‘‘For example, if someone finds a sofa they like, but it is not in color they want, we will have what they want in as fast as 21 days. And for the most part, there is no upcharge for special orders.’’
Additionally, Heeden said Crawford Furniture will have a wall of fabrics for customers to choose from, decreasing the chance that they may need to special order something from England Furniture.
Previously, Crawford Furniture sold what Heeden called ‘‘scratch and dent’’ items out of its outlet store. However, the company now sells its entire inventory out of the Lakewood location. In the past, Crawford Furniture has worked with other upholstery manufacturers, but now sells England.
Crawford Furniture Outlet Store is located at 185 East Fairmount Ave. in Lakewood and can be reached by calling 763-5543. Crawford Furniture Manufacturing is located at 1021 Allen St. in Jamestown.
Send comments to ndean@post-journal.com.
July 2nd, 2007
Online retailer of nursery furniture and accessories announces launch of new site features and July 4th Week specials.
San Jose, CA ,Online baby nursery furniture and accessories retailer SimplyBabyFurniture.com is pleased to announce the launch of their newly designed site with features that will enhance the customer shopping experience and enable consumers to “design” their own dream nursery.
The fresh new look for the site allows for easier navigation, product reviews by consumers, “seen-it-for-less” price matching capabilities, and the ability to browse by brand name, category, or pre-designed nursery room sets.
SimplyBabyFurniture.com’s signature offering however, and the key that differentiates them from other nursery furniture retailers online, continues to be offering the consumers the ability to choose their own nursery set. Expectant mothers and grandparents alike can browse baby cribs and their related nursery sets on the site or call in to have a specific, cross-brand furniture collection bundled just for them.
Bryan Watson, the company’s CEO commented on the site’s new features, “As parents ourselves, we understand the difficulty in shopping for baby furniture online. We have put together what we feel is an easy and intuitive way to buy your dream nursery. If you want to put together a collection of furniture for your nursery we make that process very easy by providing pre-made matching sets. Whether you are an expectant mother or grandparent, feel free to call us on our toll free number to get free advice from one of our nursery furniture consultants.”
To celebrate the new design and functionality we are offering a 5% off site wide promotion for the week of the 4th of July. Simply enter the following coupon code at checkout to claim 5% off which includes free shipping! Coupon Code: “JULY4OFF5″.
About SimplyBabyFurniture.com:
SimplyBabyFurniture.com is an online retailer of children’s furniture and accessories carrying a full array of JPMA Certified children’s furniture brands including Da Vinci, Storkcraft, Delta, Sorelle, and more. The company is wholly owned by eChannel Solutions Inc, a California based corporation.
Contact Information:
eChannel Solutions Inc
Bryan Watson
877-602-2742 Ext. 103
Website: www.SimplyBabyFurniture.com
July 2nd, 2007
By: Furniture World Magazine
Upscale upholstered leather seating specialist Bradington-Young, a subsidiary of Hooker Furniture Corporation, announced the promotion of four of its key managers.
Ben Causey, who has been with Bradington-Young for 12 years, most recently as Vice President-Finance and Administration, has been promoted to Senior Vice President-Finance and Administration.
Prior to joining Bradington-Young, Causey served as vice president-finance for Henredon and Caraway Furniture, and also served previously as vice president and controller of American Drew.
Craig Young, who has been Vice President-Sales at the company for over 10 years, and with the company a total of 14 years, has been promoted to Senior Vice President-Sales at Bradington-Young.
Conrad Kerley, formerly Director of Leather and Import Operations, has been promoted to Vice President-Leather and Import Operations. Kerley, who has been with Bradington-Young for 10 years, was previously at Emerson Leather.
Dale Smith, who has been Director of Manufacturing for about three years, has been promoted to Vice President-Manufacturing of Bradington-Young.
Prior to joining Bradington-Young, Smith was plant manager for Hooker’s Maiden, N.C. production facility from 1996 to 2004, and before that was a plant manager for Henredon.
“I am pleased to announce the promotions of these four individuals in recognition of their accomplishments and dedication to Bradington-Young,” said C. Scott Young, president and chief executive officer. “Each of them has been instrumental in the growth we’ve experienced in the last several years, and their leadership will be critical in the challenging environment of the industry today.”
July 2nd, 2007
By: Furniture World Magazine
Herman Miller, Inc., announced results for the fourth quarter and fiscal year ended June 2, 2007. Sales continued to grow in the fourth quarter, increasing 9.3% from the year-ago period and resulting in a 10.5% fiscal year increase.
Orders for the quarter increased 7.9% over the prior-year period, driving a 20.9% year-over- year growth in ending backlog. Net earnings for the quarter were $31.7 million, or $.50 per share.
The ending cash balance was reduced to $76.4 million, primarily through increased share repurchases of $71.5 million during the quarter.
Consolidated sales for the quarter were $485.3 million, up 9.3% from the same period a year ago, reflecting growth in both North American and non-North American markets. North American sales increased 7.5% and non-North American sales increased 19.1% over the same quarter of the prior year. Orders in the quarter were $476.8 million, up 7.9% from the same period a year ago and representing the fifteenth quarter in a row of year-over-year growth.
“We experienced a high degree of variability in our rate of orders this quarter,” said Beth Nickels, Chief Financial Officer. “Order rates in the first half of the quarter were slower than we anticipated. Orders in the second half of the quarter gained strength, enabling shipments to fall within our earlier range of guidance, and helping us build a solid backlog for the new fiscal year.”
Gross margin as a percentage of sales improved sequentially from 33.0% in the previous quarter to 33.6% in the current quarter. The gain was driven by the favorable impacts of the recently implemented price increase, combined with improvements in commodity costs. On a year-over-year basis, gross margin declined from the 34.0% achieved in the prior-year same quarter due to inefficiencies in the start-up of new product lines.
Operating expenses for the quarter totaled $118.6 million, or 24.4% of sales, compared to $113.7 million, or 25.6% of sales, for the same period in fiscal 2006. The increased spending was mainly driven by incremental employee compensation and benefits costs. In addition, the higher volumes drove increases in variable selling costs and incentive compensation accruals.
“Demand for the new systems products introduced during the past year was better than we expected,” Ms. Nickels said. “Although higher initial manufacturing costs associated with the new products reduced gross margin and operating income for the quarter, we are confident that our people and our focus on process improvement will enable us to achieve our long-term profitability targets for these products.”
The effective tax rate was 24.4% for the quarter. The lower tax rate was driven primarily from increased foreign tax credit utilization, which occurred as a result of increased foreign sales combined with additional tax planning. Net earnings for the quarter were $31.7 million, an increase of 26.8% from the prior year fourth quarter. Earnings per share were $0.50 for the quarter, a 31.6% increase over the same period last year.
Cash flow from operations for the quarter totaled $46.3 million compared to $48.0 million for the same period last year. Capital spending for the quarter was $12.8 million compared to $16.2 million for the same period last year. Debt repayments totaled $3.0 million for the quarter. In addition, the company received proceeds of $7.5 million from the sale of its vacated facility in Canton, Georgia. During the quarter, the company also repurchased approximately 2.1 million shares of its stock for $71.5 million, at an average price of $34.43 per share. The company’s ending cash position was $76.4 million.
Fiscal 2007 Financial Results
For the year, consolidated net sales totaled $1.92 billion, up 10.5% from fiscal 2006. Orders increased 11.4% to $1.97 billion. The prior-year results include the impact of an additional week of operations over the current year based on the company’s accounting calendar. Excluding this extra week, sales were up 12.5% and orders were up 13.7%.
Gross margin improved 60 basis points to 33.7% of sales, from 33.1% in fiscal 2006. The improvement was driven primarily by leverage of overhead gained from higher volume and the benefit of prior pricing actions. This was partially offset by higher fuel and raw material costs and inefficiencies related to the start-up of new product lines.
Operating expenses as a percentage of sales declined from 24.0% in fiscal 2006 to 23.3% in fiscal 2007. Operating earnings increased by over a full percentage point to 10.3% from 9.1% in fiscal 2006. Net earnings increased 30.1% to $129.1 million, and diluted earnings per share increased 36.6% to $1.98 in fiscal 2007.
Cash generated from operations was strong again in fiscal 2007, totaling $137.7 million compared to $150.4 million in fiscal 2006. Capital spending for the year was $41.3 million compared to $50.8 million for fiscal 2006. During the year the company repurchased approximately 5.1 million shares of its stock for $164.9 million, at an average price of $32.23 per share.
Looking forward, the company expects sales growth to continue and estimates first quarter revenue to be in a range of $480 million to $505 million. This represents a 7% to 12% increase over the prior year. The effective tax rate is estimated to be in the range of 32% to 34%. Earnings per share are estimated at $0.47 to $0.53, an increase of 9% to 23% over the prior year.
Brian Walker, Chief Executive Officer, stated, “We closed the year with a strong fourth quarter. The new products we’ve launched and the new markets we’re entering have us well positioned for the future. While the macro economic environment is moderating in North America, it continues to be positive. Strong attendance and high energy at the recently completed NeoCon tradeshow testifies to this favorable environment. The continued strength in the core business, coupled with our strategic investments to grow outside of the North American office furniture industry, gives us confidence in our ability to deliver future top-line growth. Thanks to the efforts of the employee-owners of Herman Miller, we’re on track to accomplish the long-term
goals we set out three years ago and we remain optimistic about our prospects for the new fiscal year.”
The designs and services of Herman Miller enhance the performance of human habitats worldwide, making customers’ lives more productive, rewarding, delightful, and meaningful. The company’s award-winning products, complemented by furniture-management and strategic consulting services, generated $1.92 billion in revenue during fiscal 2007. Herman Miller is widely recognized both for its innovative products and business practices. In fiscal 2004 Herman Miller was named recipient of the prestigious National Design Award for product design from the Smithsonian Institution’s Cooper-Hewitt, National Design Museum. In 2007 the company was again included in CRO magazine’s “100 Best Corporate Citizens” and was cited by Fortune magazine as the “Most Admired” company in its industry. The company trades on the NASDAQ market under the symbol MLHR. For additional information visit www.HermanMiller.com.
July 2nd, 2007
By: Furniture World Magazine
Every year, thousands of home fires occur in the United States, many of which start in the bedroom. Mattresses that lack flame retardant technology pose significant safety risks due to their flammability when exposed to open flames such as matches, lighters and candles.
The U.S. Consumer Product Safety Commission is addressing this issue by imposing the Mattress Open Flame Standard, otherwise known as 16 CFR 1633.
This federal regulation goes into effect on July 1, 2007, setting new government flammability standards on all mattresses and box springs manufactured in and imported into the United States.
[Editor’s note: A number of industry sources and retailers of “natural and organic bedding” have questioned the long term health effects of some chemicals that can be used to economically achieve compliance with new mattress flammability standards. They contend that these substances “offgas” over time. Detailed information is not generally published by manufacturers, available research is confusing and so this seems to be largely a “grey” area. This note is for general reader information only, and does not relate to Serta or any specific bedding manufacturer.]
Serta Mattress Company says that they have been at the forefront of compliance since the introduction of their FireBlocker(R) system in January 2005, meeting and exceeding all open-flame criteria that is now considered mandatory for mattress brands.
“Serta has long recognized the importance of open-flame bedroom safety which is why we initiated our FireBlocker system over two years ago,” says Kelly Rampson, Serta’s Director of Marketing. “We are pleased that the Consumer Product Safety Commission continues to support high industry standards by enforcing the new open-flame regulations.”
All Serta mattresses and box springs are manufactured with FireBlocker, a fire barrier system made from a proprietary blend of natural and synthetic fibers that helps isolate the impact of a fire and limits its spread. This technology slows the spread of a mattress fire, giving individuals and their families critical time to escape a bedroom fire and call for help.
“Children often run the risk of playing with fire, and likely will do so in the privacy of a bedroom,” said Al Klancnik, Serta’s group vice president and former chairman of the Sleep Product Safety Council. “One way to deter the often fatal effects of a bedroom fire is to own a flame retardant mattress. It’s also as imperative that parents talk to their children about the importance of fire safety,” says Klancnik.
What Serta Says Consumers Should Know
- Hundreds of lives may be saved and nearly 1,330 injuries per year may be prevented with the new government flammability standard.
- Look for the mandatory CPSC label, designating the product’s compliance with the new standard. Mattresses and box springs produced in or imported into the U.S. prior to July 1, 2007, may not comply with new regulations and are at risk of igniting in a matter of minutes if exposed to an open-flame source.
- Purchase both a 1633 compliant mattress and a box spring, to insure that both pieces of the set meet the new federal regulation.
About Serta: Serta is a bedding brand leader and manufacturer. Headquartered in Hoffman Estates, Illinois, Serta has 24 U.S. and four Canadian manufacturing plants. In addition, Serta is distributed internationally in 60 other countries. With its worldwide network, Serta is able to respond quickly to customers’ needs while still preserving strict control standards to ensure the highest quality products.
July 2nd, 2007
by Marsha Lindquist
“Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep.” – Scott Adams, cartoonist, The Dilbert Principle
Business is more a creative art than a science. Unfortunately, such an idea frightens many executives and managers.
As a result, they hold onto the notion that there are only two ways to do things: the right way and the wrong way—the way that leads to glory and success and the mistake that brings failure and shame. No one wants to seem as if they don’t know what they’re doing, and in a leadership role, the pressure to be right 100% of the time feels even greater.
As children, although we’re taught that “accidents happen,” and to try, try again, we’re also taught that mistakes are something we have to “pay for,” and we rarely hear stories of any good coming from efforts that go wrong. Though inevitable, mistakes don’t have to be “fatal.” In fact, making mistakes, and allowing your people to make them, can generate amazing, positive results.
When you simply change your perception of mistakes, you can see any undesired result in a positive light. For example, Thomas Edison, who famously failed many times before his world-changing successes, believed there were no such things as mistakes, only eliminated options that brought him one step closer to his goal. “There is no such thing as failure,” he claimed, “only lessons to be learned.”
With the following tips, you can encourage a culture in your organization that values the good that can come from exploring all options with a mind open to the possibilities that you might ordinarily dismiss as mistakes.
Change your perspective. Mistakes made during creative problem-solving or idea-generation are, of course, different than costly, harmful errors that result from carelessness or incompetence. However, allowing a problem to continue and waiting for a “perfect” solution to appear in order to avoid a mistake is never a good idea, because you still have a problem! Try to see that, in creative problem-solving, there’s no such thing as a screw-up. Wider latitude allows creative minds to reach for new heights and come up with some amazing ideas.
Unless you’re consistently receiving nothing back from problem-solving employees but new and different flops and potentially damaging failures, consider the virtue in their bold action instead of over-thinking, analyzing a problem to death, and spinning their wheels in inaction. They’re charging in, exploring, and taking risks, not wasting time mulling it over and finding new ways to cover their behinds.
Model it. Take risks yourself. Great thinkers, inventors, and entrepreneurs know that many mistakes almost always precede a great success. Albert Einstein said, “A person who never made a mistake never tried anything new.” Allow yourself and your employees to make mistakes. Model risk-taking behavior to others in the organization, and they’ll follow suit.
One CEO made an unintentionally offensive remark in the course of presentation. When he saw the reaction of his audience, he realized his mistake and was able to recover with a humorous, self- deprecating reassurance that cleared the air and restored his personal credibility. Sharing the story of this incident with his senior management, he modeled the value of personal accountability and the idea that mistakes need not be fatal. He showed them how to look at themselves in a similar situation and turn a potential negative into a positive.
Form a Mistake of the Month Club. Make light of some mistakes. To help create a culture in which mistakes are no longer considered the end of the world, hand out monthly humorous awards to your people (and yourself!) for boneheaded moves. Make it a matter of prestige to be in the club’s good company, rather than a source of humiliation. Wait an appropriate amount of time—perhaps a month or so—after the mistake occurs so that the recipient has some perspective on the incident and is amused without feeling ridiculed. Also consider for membership those who were able to turn mistakes from an embarrassment into something positive, or at least something that everyone can laugh about now.
Reward innovation. Ross Perot said, “Punishing honest mistakes stifles creativity. I want people moving and shaking the earth, and they’re going to make mistakes.” Organizations need to take chances in order to move forward. An overly cautious or punitive corporate culture will ultimately suffer in numerous ways from its “safer for now” approach. So consider mistakes to be innovations, and rather than punish talented problem-solvers, let them give it another shot. If they’ve learned from their mistake, they have new insights and have eliminated at least one failed option, so they are more likely to succeed in subsequent efforts. Reward employees’ persistence, rather than ridiculing their failures. Nurture their ideas, instead of rejecting whatever solutions don’t seem safe or conventional.
Explore many facets. There are an infinite number of possibilities, approaches, or solutions in most situations. Open your mind and tap into your employees’ creativity to explore ALL the options. In a brainstorming session, break a large group into smaller groups to generate ideas, and then implement the top three of the many, rather than just one. Assign teams to each option, and you not only encourage healthy competition, but you also empower your people, and you stand to generate two or even three great solutions to the problem.
If you act on as many viable ideas as possible, more of your problem-solvers will feel validated, as if they “won,” instead of just those who supported the one chosen idea. Also, you’re ready when Solution #1 doesn’t work—you don’t need to go back to the drawing board—or when a new, similar problem arises.
Remember, though, that you want all contributors to feel heard. So be sure to explain to those whose ideas were not used that they might be used in the future, and that they’re welcome to continue to contribute ideas for future projects.
Sweep and save what’s on the cutting room floor. Originality and creativity are the natural results of an environment that permits and encourages mistakes in the context of problem-solving. After brainstorming sessions, those ideas that you reject and do not implement may turn out to be, at some point, the most forward-thinking sort of ingenuity that will bring your company forward. If you need a new idea about how to do something, for example, and the team agrees to choose just one of the many ideas generated, the stuff on the cutting room floor may very well become an idea you get behind next year, or that you’ll find out is too avant-garde for today but that might work three years from now when the technology or the customer base is ready for it.
Be a Monday morning quarterback. Chuck Jones, the brilliant creator of Bugs Bunny and other beloved Looney Tunes characters, said, “It’s the stumblings that let us know what we’re really looking for.” Mistakes can be a learning experience, so don’t forget to look at the positive. Review the efforts of those in your organization who took risks and turned out well, rather than only focusing on a mistake’s doomsday potential.
Ask questions after the effort has been made:
What lessons can we learn from our mistakes?
- How can we recover most effectively from this?
- Why didn’t we get the result we wanted?
- What could we do, trying again, to achieve the result we want?
- Did a new opportunity emerge from the effort, different from what we sought but even better?
- How can we apply that lesson to future projects?
The Best Mistake You Ever Made: Great innovations can emerge from creative problem-solving that explores many options in any situation and encourages forward–thinking creative minds to try to implement even far-fetched ideas. When you stop fearing mistakes, and even introduce humor into the process, you’ll learn that the effort is often more important than the end result. Among the many rewards for your organization will be a supportive atmosphere of teamwork, in which you and your people no longer fear mistakes but fearlessly try your best in any circumstance.
About the Author: Marsha Lindquist is a successful business strategist, author and speaker. As CEO of The Management Link, Inc., Marsha has over 20 years experience as a business consultant who works with her clients to transform their organization through her Value Advantage formula. She enhances communication, facilitates change management, and improves overall strategies with companies including BP Amoco, Fleishman Hillard International Comm., and Northrop Grumman.
July 2nd, 2007