The Autobahn is famous because it generally has no speed limits.  Cars are known to travel as fast as 200 miles per hour.  That can be a bit disconcerting to someone from the U.S., where most highways are limited to 65mph.  As I was driving today at an average of 90 mph, feeling like I was really moving along, I had cars flying by me.  As I thought of how and why the Autobahn exists, it occurred to me that there are some leadership lessons to be learned from the Germans.

In the U.S., our speed is “managed” by a combination of signage, threats, heavy fines and police patrols.  Indeed, on a recent weekend trip, I counted over 15 police cars on a 100 mile stretch of the Massachusetts Turnpike.  These public servants patrol our highways to ensure that no one goes more than about 10 miles over the posted limit.  Performance is measured by the number of tickets they issue.  In the U.S., we “manage” vehicular speed through the application of consequences.

The average policeman’s salary in the U.S. is about $50,000 per year.  If we take the cost of their vehicle, their care and feeding and the cost of administration, it’s very easy to arrive at a conservative cost of $100,000 per year per officer.  Using my Mass Pike experience as an example, if we assume that there’s a patrolman for every 10 miles of highway, then it’s reasonably safe to calculate that it takes about 40 patrolman to cover the Mass Pike (140 miles/10 = 14 patrolman x 3 shifts = 42 officers).  Based on my simple math, that’s a $4 million annual investment (and it’s likely twice that).  This investment is specifically directed at “managing” outcomes.

In Australia, I drove over 500 miles and saw very few police officers.  But we did see many, many signs warning us that our speed was being monitored and we were being photographed.  That had us a bit paranoid.  As a result, we watched our speed carefully.  As in the U.S., the Aussies “manage” compliance using the power of consequence.

By contrast, on the Autobahn, I saw but one police car over my 300 miles of driving.  Just one!  And it appeared that he was simply helping someone with a stranded vehicle.  Removing speed limits certainly seems to reduce the need for police officers.

Cars on the Autobahn drive wicked fast.  And what’s equally as amazing is that the Autobahn is relatively safe. The fatality rate is actually much lower than that observed on the US interstate system.  For every 100,000 people under the age of 24, in the US nearly 20 die in auto accidents compared to only about 7 in Germany.  Even so, one would assume that the “dangerous” autobahn accounted for most German accidents. Not true!  In 2009 accidents on the autobahn accounted for less than 10% of all traffic fatalities in Germany.

So what’s going on here?  No speed limit.  No police.  Fewer accidents!

My observation is that the fundamental difference between the U.S., Australia and Germany is that in the first two, they use laws, consequences and enforcement to “manage” the actions of the populace.  If you step out of line, if you don’t follow our rules, there will be consequences.  And we’re going to watch you so that you don’t step across that line. It’s that simple.  In the U.S. and Australia this amounts to a “quality control system” that’s intended to “manage” speed.  One might conclude that it’s the management of speed that’s the objective and not safe and efficient travel.  Clearly the Germans have proven that the former doesn’t ensure the latter.

In Germany, things are clearly different.  The Germans don’t focus on “managing” to their desired outcome (safe and efficient travel).  They do rely upon consequences but get there by leading to their desired outcome.  For the Germans, it’s not about management, but leadership.

How?

First, in Germany it is illegal to pass a car on the right side. This helps to ensure that the left lane is clear for those cars traveling at high speeds. In the United States, the same is true in concept as the left lane is regarded as the passing lane.  However, there is no law which enforces this practice.  And, certainly, we’ve all experienced that this bit of common sense isn’t practiced by most drivers (see my December 2008 post).

The Autobahn leads users to safe and efficient travel through effective rule-making and the expectation that rules will be followed.  And at 150 miles an hour, the consequences of not complying are obvious.

Second, because the Autobahn is expected to endure cars at much higher speeds, it has much smoother pavement than other interstates or highways. The autobahn pavement is twice as thick as what is found on US interstates and is very well maintained.

Instead of managing through consequence, the Autobahn leads through effective investment.  Instead of investing in police patrols, they invest in the underlying system.

Another factor contributing to the Autobahn’s safety is the quality of the vehicles on the road. The Autobahn has had a significant effect on the way cars are engineered.  The German auto industry has had to create cars with the Autobahn in mind. This makes German cars, as a whole, faster, and safer, than foreign competitors. The Autobahn has helped to ensure German cars are safe in crash testing, high speed maneuverability, and brakes. Even as we rebound from a global recession, German automobiles such as Audi, BMW, or Mercedes-Benz remain in high demand.

The Autobahn leads by helping to make the right tools available to users.

The fundamental difference between the U.S., Australia and German highway systems is that Germany doesn’t attempt to manage its populace; it leads them.

The Germans lead with effective lawmaking.  They place speed limits where it makes sense (like intersections) and then leave it up to the populace to do what most humans are hard-wired to do…protect themselves.  It works!

They lead by improving their roads to ensure that the driving surface is safe.  Instead of investing in police to “manage” their people, they invest in better equipment for their people to use. It works!

And then they made driving something serious…and expensive.  Driving is not whimsical and not for 15 or 16 year olds.  In Germany, driving is considered a privilege.  You have to be 17 to have a license.  It costs over $2,000 for a license after an extensive 25 to 45 hours of professional instruction and 12 hours of theory.  Driving in Germany is serious business and Autobahn drivers take their responsibilities seriously.  It works!

So how does this relate to your business?  Under-performing practices attempt to “manage” their staff in the same way that the U.S. manages its highways.  They share little information about their business.  They keep their staff “in line” by establishing rules and then focus the majority of their non-patient care time looking for those instances where rules are broken.  They “police” their practices like a highway patrol car.  What about the consequences necessary for this system to work?  Well, the majority of my clients are care-givers and conflict avoiders.  Thus, the consequences necessary for effective management aren’t promulgated nor enforced.  They focus their attention on driving down their costs by hiring individuals who have few skills…and then cry out for help when their skill-anemic team fails to deliver success.  These professionals are forever complaining that they can’t find good staff nor will staff do what they desire.  In these practices, leadership has set limitations on what the staff can do.  As with the U.S. highway system, these “speed limits” negatively impact performance.

Contrast that with other owners who invest the time, energy and money to find the very best people.  They pay these individuals well.  They invest in their personal development.  They create a vision for their desired outcome and invest in systems that lead their desired outcomes.  They then give their employees their head…asking that they “manage” themselves.  In these practices, there’s no “speed limit.”  And like the Autobahn, it shows in their performance.

The next time you think about your practice and your frustrations, consider the Autobahn and the difference between managing and leading.  What has the Autobahn taught us?

• Hire good people
• Give them the tools they need
• Set some rules for them to live by
• Expect compliance
• Reward good behavior

Now move over and let them go.

But optometry isn’t dying.

Indeed, the need for optometrists is going to be greater than ever in the coming decade.  Our current population of 315 million will swell to almost 350 million by 2025.  More important, the percentage of our population age 65 or older will increase by 50%, from 12% to 18%.  That’s another 25 million people added to optometry’s primary demographic.  That’s another 700 patients for every licensed optometrist.  That’s more progressives; more glaucoma patients; more diabetics.  Success is virtually guaranteed…or is it?

The reality is that these new market entries will have grown up in the digital age.  They have a very different view of the purchasing process; what experiences they enjoy; what they dislike.  Our industry, as a whole, has failed to entice the consumer into the market.  Consumers invest approximately $145 per year on shoes and only $96 per year on eyecare.  Fully 25% of our population doesn’t use our services at all!  We aren’t effective at increasing what the average consumer is willing to invest in our products and services because we haven’t been effective educating a marketplace.

We’re not ready for the opportunity because we’re stuck in an old paradigm.

My belief is that these market conditions are ripe for the advancement of disruptive technologies; technologies that will turn our world upside down.  We’ll see consolidation of retail.  We’ll experience new entrepreneurial activities.  Consumer friendly technology is on the horizon that has the potential to be perceived as rendering optometry unnecessary.  These “advancements”, in turn, attract financial investment and the required returns that go along with large capital commitment.  Others from inside and outside our industry see these opportunities as well.  In the coming decade, you’ll see ever increasing competition.

For some optometrists, this decade will be their last in practice, one which they will not likely survive in their present form.  For others, the coming decade will be full of opportunity.  But it’s certainly not business as usual.  Out of this turmoil will emerge a profession with a wider scope and deeper services.  Optometrists will become productivity specialists and will assist in engineering technology implementation.  Optometrists will add nutrition services and expanded learning support.

Optometry isn’t dying…it’s evolving.

Now is the time to expand your thinking about the profession.  What new consumer technologies can you adopt?  What new learning, outside of optometry, must you engage?

What will take place in the profession reminds me of Yellowstone in 1988.  In that year, the Yellowstone wilderness experienced the largest wildfire in recorded history.  Thirty-Six percent of the park was wiped out and the event prompted a world-wide debate.  Should we control these fires?  Should we step in the way of nature?

The aftermath clearly establishes that we shouldn’t mess with Mother Nature.  What’s fascinating about the fire, and I was in Yellowstone in 1990 to witness the aftermath, is that without such events, many types of pine cones do not release their seeds.  It is because of fire that new growth occurs.

Out of the ashes of destruction comes a renewed vibrancy.

Is the same not true for optometry…that without marketplace crisis real change never occurs?  I think so.

Abba Eban, the great Israeli politician and diplomat, once said:  “History teaches us that men and nations behave wisely once they have exhausted all other alternatives.”  As we look at history and project certain events to the future, it’s clear to me that there are forces at work of which we must pay very close attention.

It’s not about survival of the fittest, but survival of the adaptive.

The real question is whether you’re ready for the challenges…and the opportunities?  Will you adapt fast enough?

The Problem with “Warby Parker for X.”

The internet will play a significant role in our eyecare world going forward.  But my belief is that it will be much like Pearle, Lenscrafters and Walmart…folks we can thank for expanding the market.  What do you think?

For over two decades, I’ve predicted that one day, an eye exam would be dispensed like so much gum…from a vending machine.  Technology is sometimes cruel and forces are at work to bring such a possibility to reality.

Consider:

a) Auto-Refracting Technology is pretty darn accurate.

b) The regulatory line has been crossed.  Since 2010, in British Columbia, a consumer no longer needs a doctor’s Rx to obtain eyewear or contacts.

c) In that same province, last year, optometrists were prevented from charging for a PD measurement.  It’s part of the eye exam.

d) It’s no secret that now, some 3% of eyewear is delivered through internet channels.  People are getting used to self-serve technology.

e) apps exist to do exams and measure for lenses.

f) SoloHealth, a firm that has developed and is installing screening kiosks in store, now has locations in over 1,200 retail locations around the U.S., including Sam’s Club and Walmart stores.  The company plans to expand to more than 2,500 store locations by mid-2013 and 4,000 by 2014.   An advertising partner is J&J.  An investor is WellPoint.  WellPoint controls over 35 million lives.  They acquired 1-800 Contacts last year.  Their published objective is “To Create the Best Health Care Value in Our Industry.”  Get the connection?  Coincidence?

So, it comes as no surprise to read this letter:  Defense (1)

My advice to optometry…wake up and smell the coffee.   Get out of vision plans to reduce your risk of concentration (too many customers from one source).   Who do you think will be the first folks to send their patients to a kiosk for an exam?  Who do you think wants to sell contacts without an Rx?  Those with the most to gain…vision plans.

And you’d better be supporting your associations and PACs.  They’re the only ones that can fight this fight on your behalf.

This Thanksgiving, as we consider all of the wonderful people and experiences in our lives; as we sit around our dinner table and enjoy all the abundance for which we’ve worked so hard; and as we consider the less fortunate; I ask you to step back and take stock.  And I ask you to consider the choices that you’re making on a daily basis.

I have spent the majority of my career as an advocate for private practice optometry; a profession to which I owe a huge debt of gratitude.  While not an optometrist myself, I have immersed myself in the business of optometry for the past forty years.  I am truly thankful for all of the wonderful experiences that I have had and the many friendships that I have developed. I am thankful to have been provided an opportunity to work on so many challenging and important projects for my clients. 

It is based upon my gratitude to the profession that I continue to sound the bell for reform; which I’ve done since the inception of this blog in 2008.  It’s no longer “business as usual” and what follows should explain why I see dramatic change in your future. 

The following is an excerpt from my closing remarks to the members of Cleinman Performance Network during our most recent series of meetings. 

Abba Eban, the great Israeli politician and diplomat, once said:  “History teaches us that men and nations behave wisely once they have exhausted all other alternatives.”  As we look at history and project certain events to the future, it’s clear to me that there are forces at work of which we must pay very close attention.  Let’s look at some pieces of the puzzle.

• Back in 1955, a group of California Optometrists decided to create the first pre-paid, not-for-profit vision plan.  Over the ensuing 40 years, VSP evolved into every state and then consolidated into a single company.  In the 1970s, VSP opened their first lens laboratory, followed by the creation of their frame line in the early 1990s.  Then, in 2001, VSP launched Eyefinity to provide e-commerce solutions.   Four years ago, the 800# Gorilla acquired Marchon, then the 2^nd largest U.S. frame distributor.  As part of the Marchon acquisition, VSP also acquired the leading optometry office software system, Officemate, the platform upon which almost 40% of optometry relies.    In the past two years, VSP has opened facilities of their own to directly handle the employees of such firms as Cisco and just recently announced its plan to sell eyewear directly to members via their Eyeconic website.  Today, VSP is almost completely vertically integrated and claims control over 56 million of your patients.

• In the early 1990s, two of Pennsylvania’s Blue Cross/Blue Shield licensees consolidated to form a company now known as Highmark.   Shortly thereafter, the firm acquired Davis Vision, then one of the largest providers of Vision Plans.  To control costs, critical to their low-end insurance product, they built their own labs and imported their own frames.   The firm went on to acquire the third largest U.S. frame manufacturer, Viva, in a vertical integration move and deliver total control over their eyewear product. In 2006 they followed with the acquisition of Eye Care Centers of America.  Today, Highmark’s Vision Works has 400 units and is the 3^rd largest U.S. retail chain while Davis is the third largest vision plan delivering services to 35 million Americans.

• Back in 1995, just seventeen short years ago, a frame manufacturer by the name of Luxottica acquired Lenscrafters, then the high cost mall-based provider of eyewear with a brand based upon one-hour delivery.  One year later, Cole Vision, which, at the time, operated about 1000 tenant stores within major retailers like Sears and Penneys, acquired Pearle Vision, to become the largest U.S. eyewear retailer.  Luxottica went on to acquire Cole and began the journey, through vertical integration, to move from being the high cost producer to the low cost leader.  Today, the world’s largest eyewear retailer, with 5500 U.S. optical and sun locations, can deliver eyewear direct to the consumer from the manufacturing level, at costs fractional to yours.   Luxottica Retail and its EyeMed vision plan now claim control over 100 million consumer members.

• Back in June, Wellpoint, an independent licensee of Blue Cross/Blue Shield, closed on its acquisition of 1-800 Contacts.  Wellpoint is known around the country under such brands as Anthem, Empire and Unicare in addition to its Blue Cross moniker.   What makes this acquisition interesting is not that 1-800 has a new owner, but that its new owner provides general health insurance to 62 million Americans…many of whom will buy their contacts direct from their insurer.

• Recently, Humana, which covers more than 11 million mostly Medicare lives (read “medical eyecare”), announced that it was going to “bring doctors in-house.”  Humana is going to directly provide health care by placing over 2,600 physicians directly on its payroll.  According to Humana’s CEO, “We are completely convinced that integrated health care, as far and as fast as we can take it, is critical to the next chapter of what happens—especially for the Medicare business but potentially for the entire business.”

Is not the writing on the wall?  This situation reminds me of another piece of history experienced first-hand by my father.  During the night of June 5^th, 1944, my dad, together with 156,000 other soldiers and sailors on hundreds of ships, lined up below the horizon off the cast of Normandy.  Then, in the early morning of June 6th, under cover of fog, the beaches of Normandy swarmed with U.S. troops.   Within the week, 5000 ships and hundreds of thousands of soldiers followed in their footsteps, creating the greatest invasion in history.  The Germans didn’t know what hit them…they didn’t see it coming and actually thought it a diversion…they got caught flat-footed…and less than a year later it was all over.

Are we not at the dawn of a new Normandy?   While this one won’t involve bloodshed of the usual sense, it potentially involves annihilation for some and opportunity for others.   Here’s what I see:

Health care in the United States represents almost 20% of our Gross Domestic Product, the highest in the world and almost 33% higher than our nearest benchmark, Switzerland.  While the U.S. spends the most on heathcare, life expectancy in the U.S. is lower than that of 50 other countries.   Not one week after the Supreme Court upheld Obamacare, I received notice that my health insurance plan was going to increase its premiums by 19%!  Healthcare inflation is out of control.

Combine this with a total national debt that exceeds the GDP of the rest of the planet…in other words, as a society, we owe more than the rest of the world produces.  That says that something’s gotta give.  Healthcare is the number one expense category with the highest inflation rate.  Does that not add up to the need for healthcare cost containment?  Does that not speak to lower reimbursements and legislative intrusion?

What’s driving these out of control costs?  In simple terms, much of our health care cost increases are driven by systemic inefficiency, malpractice concerns and greed.  While, overall, vision plans are a small part of the health care pie, because they are owned by for-profit institutions, they are going to continually seek cost-containment as a competitive attribute.  And of every dollar spent by full service vision plans, near as I can tell, approximately 60% of those dollars are for eyewear.   Frames, lenses and contact lenses.  For VSP alone, this amounts to well over $1 billion.  $1 billion sent your way to buy eyewear for their members…through you.  Is it not clear what the next strategic step will be?

Let’s look at the picture.

•  Eyewear represents at least 50% of every dollar of vision plan expenditures.
• The three major players in vision plans currently purchase eyewear from you, effectively, and, as paltry as the reimbursements seem, they provide you with the lion’s share of the profit margin in these transactions.
• Two of the three major plans are vertically integrated all the way to the retail level.  Luxottica controls 5500 locations in the U.S. while Davis controls 400.  And what of VSP?  One might make the claim that they actually control over 25,000 locations in the U.S. and they do so without direct ownership or capital investment in bricks and mortar.
• Each of these players has a delivery system that’s tied together electronically.
• Each of these players has already developed web-based delivery of eyewear.
• Together, these players have relationships with the majority of the U.S. population.

In simple terms, this picture begs the question…what do they need you for?   While vision plans need some of you to deliver an eye exam, the reality is that they do not need your involvement in the delivery of eyewear.  Ladies and gentlemen, as I see it, the forces of D-Day are clearly lined up beyond the horizon, preparing to storm your beach at the proper time…removing your eyewear profits for transfer to their own accounts.  They do so under the cover of darkness…the fog of PR initiatives designed to make you feel that they’re out their fighting for you.  I cry “bunk.”

Mark my words…the day will come when VSP and other vision plans say “thank you”, perhaps provide you with a small exam fee increase…and remove eyewear from your vision plan income stream.

Now, it is not my intent to paint a picture of gloom and doom.  I’m not here to scare you or suggest that you seek an alternative profession.  I’m not suggesting that the end is near.   Indeed, I believe that the coming decade will be full of opportunity for those optometrists smart enough and assertive enough to think strategically and execute against the opportunity created by market disruption.   During the coming decade, market turmoil will be the norm…giving rise to opportunity.

Forewarned is forearmed.

                                                                    Forewarned is forearmed!

40 years ago yesterday, I dialed an optometrist’s office for the first time to attempt to sell the practice eyewear “on approval.” I was 16.  At the time, I worked for Dr. Bill Lusk, an optometrist (who still practices in Oneonta, NY), for whom I was his yard-boy. For whatever reason, Bill believed in me and gave me the chance of a lifetime. I spent 7 years with his firm, selling, marketing, managing and learning business. From there, in 1979, at the ripe age of 23, I launched Co-Optics of America, the first national buying group for optometrists and a business that would change the face of an industry. I followed Co-Optics with 24 other businesses and scores of product launches…so far. Each of these enterprises and efforts are built on that single action of Dr. Bill Lusk.

I know of few people who would give a 16 year old such a chance as did Dr. Lusk. I am eternally grateful to him. Thank you, Bill, for believing in me.

The photo of me presenting Dr. Lusk with the Cleinman Performance Partner’s “Founders Award.”

As the CEO of my firm, I consider myself an investor.   Like any other business owner, I control balance sheet assets in the form of cash, equipment, facilities and inventory.   Like others, I also employ off-balance sheet assets in the form of my team.  My job as CEO is to invest my cash in the right way; to take care of my assets such that they’ll be around for the long haul, both in terms of deploying and maintaining hard assets but also in terms of properly developing and leading my most important assets, the individual members of my team.  The bottom line is that the CEO’s role is to manage assets in such a way as to realize a return on investment (ROI).  It’s a big job and a big responsibility.  Not only are our respective livelihoods dependent on our investment success, but so too is the well-being of all of the individuals and firms who have hitched themselves to our respective wagons.

 Like any investor, my primary tool for deciding how to best utilize my firms’ assets is information.   As the saying goes, “information is power.”   Over the years, I have invested heavily in my information systems; be they accounting or benchmarking oriented.   In our firm, financial management is a vice-president level responsibility.   As a result, I know the current and projected financial performance of my business at the touch of a button.  I’ve learned long ago that most stress is the result of a lack of information.  Even in tough times, it’s easier to work with the known vs. the unknown.

 Now, I’m pretty good with numbers and I know accounting and financial management.   Indeed, I’ve operated as a Chief Financial Officer in the past.  But, even though I’ve a solid financial background, I rely upon others to do the work.  Said another way, I think of the financial management role in my business as you likely do with patient care…your job isn’t to collect data, but to interpret it. 

 But for most of my readers, I’m confident that your financial control system is seriously lacking.  Many of you have poorly organized books; and many of you do your own bookkeeping.   Many of you are stressed and struggle with cash flow; even as your business thrives on paper.  Most of you operate on cash basis accounting, which distorts your reality.  And many of you don’t have a clue as to how profitable your business really is; since you operate your business like a personal bank and focus your financial management on the avoidance of taxes.  And now, with ever-more anemic profit margins resulting from the further penetration of vision plans, some of you are operating in crisis mode. 

 As the CEO of your enterprise, it’s time to get out of the bookkeeping business and into the investment business.  Your business activities must be built on solid financial information and that information comes at a cost.   At Cleinman Performance Partners, we invest approximately 3% of our current revenue on our accounting and financial management functions.  That investment, as a percentage, will dramatically reduce as we grow, but it’s a significant investment for a small company. As a result, my entire team manages for bottom-line performance as their bonus structure is directly tied to the economic performance of our enterprise.  Every single member of our team has an understanding of how their individual function impacts our bottom line.   In order to be able to manage their responsibilities, they have to have information.  Good information.  In my opinion, this investment is money well spent.   Indeed, I believe that it’s the best investment I’ve ever made.  As a result, I don’t stress about financial matters because I have a clear understanding of from where our revenue comes and to where our expenses go.   I not only know what happened, but more importantly I know what tomorrow looks like.  I have good information at my fingertips and the support team to develop it. 

 Most eyecare retailers are experiencing eroding profit margins, the result of increased penetration of vision plans.  In this environment, having a rock-solid financial control system that delivers the information you and your team need to manage for profit is increasingly critical.  The time is now to make a change. 

As I have stated in the past and in other venues, the time is way overdue to invest in your financial control system.   Indeed, I believe that investing in your financial control system should be your top priority.  Yes, building and maintaining an accurate financial control system involves an investment of both time and money.  But the information that you glean will provide you with the necessary accurate and timely data from which you can make better, more effective decisions.  The investment will provide an outstanding ROI and you’ll dramatically reduce your financial stress levels.  

 Here are some actions to consider:

As I thought about this message, I considered the theme of our current session of Cleinman Performance Network, “Leaving a Legacy.”  Defining Legacy as “that which we leave behind,” I’ve thought about achievement, mine and others.  I’ve considered the differences between the “haves” and the “have nots.”  I’ve contemplated the qualities of those professionals whom I consider super-stars and of those for whom the struggle seems never-ending.  What has emerged for me is a sort of formula…I’m calling it an equation…for the journey of achievement; the attaining of abundance.

Business and life, in general, is tough.  As the saying goes, “Dying is easy…it’s living that’s hard.”  Just when you think you’ve got things figured out, something changes.  When the moment arrives that you feel that you’ve got the right team doing the right things in the right way, a key player resigns.  Almost to the day when you finally achieve the cash flow that you desire, some disaster hits.  There are never enough resources and every plan has at least one hiccup; more often many.  Every day, in scores of ways, each of us is challenged by both outside influences and our own “head trash.”  Like the ocean’s waves, the challenges keep coming and coming.  Business, and life, is never done until it’s “done.”

On the flip side, opportunities appear almost daily to those with open minds.  At the point where one seemingly has few options, the answer magically appears.  You meet someone on a plane with a solution.  You come across an article that provides a key learning.  When the bank account is running on fumes, along comes more “petrol.”  Reality is that, just when you think that nothing more could go wrong…the tide turns.  I know this for a fact.  It’s happened to me on countless occasions.  With an open mind, the answers always appear.  Always!

As I’ve thought about the trials and tribulations of being an entrepreneur; of running a business; of leading people; of innovation and my own legacy, it has become clear to me that there is really an equation for success.  I share it with you for your consideration.  I’m calling it “An equation for Abundance.”

• You will always have change in your life.  Change is your friend.
• You will always have more challenges than resources.  And that’s OK.
• You will always have more opportunities than energy.  Choose wisely.
• You can’t go it alone.  Don’t burn bridges.
• You will always have assistance available.  Look for it.
• And you will always achieve success if, and only if:
  • You don’t give up.
  • You celebrate your blessings
  • You never stop seeking to understand
  • You never take anything for granted
  • You never take yourself too seriously; and
  • You express gratitude to those who have helped you.

It is my core belief that the difference between those who are truly successful and those who are destined for mediocrity can be distilled down to a factor of a few percentage points of extra effort.  These individuals exhibit a little more patience and a bit of additional intestinal fortitude.  They ask one more question, turn over one more rock.  They believe that persistance, as Calvin Coolidge once said, is “omnipotent.”

Truly successful people never arrive.  Why would you want to?

Jessica is the niece of Cleinman Performance Partners’ Vice President of Finance, Pamela Miller Sparaco.  Pam shared with me Jessica’s Valedictorian speech from this past weekend’s graduation ceremonies at Andrew S. Draper School in Schenevus, New York.  Schenevus is a teeny tiny school about 15 miles away from our headquarters in Oneonta, New York.  Jessica’s class of 22 individuals is not atypical for schools in our area.  While hailing from a small school (as did I), Jessica’s words are those of a giant. 

 “Good afternoon and thank you all for coming today as the Class of 2012 of Schenevus Central School begin the next chapter of our lives.  I’m going to start with a bit of honesty, and let you all know that this speech was extremely difficult for me to write, not because of a lack of topics, but because Schenevus Central School has taught us so much over the last thirteen years. For example, Mrs. Green taught us that Huckleberry Fin IS full of insightful life lessons, providing you have the will power to stay awake while reading it.  Mrs. Bliss has taught us that even the right answer with the wrong work is wrong, and Mrs. Anderson has taught us that you should invest in the stock market in May if your plan is too lose exponential amounts of money.

 Now it goes without saying that these things are all valuable lessons that we will use in college and beyond.  But I want to dig deeper than that today as I address my fellow graduates one last time before we turn the page and begin our lives post Schenevus central school.  There are nine billion people in this world.  What besides obvious hard work and dedication sets successful people apart from the rest? Over the past thirteen years I’ve concluded that the answer to that question is courage; more specifically the courage to be yourself and follow your dreams.

 Courage to be yourself.  The words sound simple, much simpler than the hours of studying and hundreds of tests I have taken that have brought me here today. But in reality it’s not that easy, because it takes a great deal of strength to grow up and become who you really are in a world that’s constantly trying to mold you into what it wants you to be. After years of looking at myself, my classmates, teachers I admire, and public figures that inspire me…I’ve observed that successful people are, for lack of a better term, weird. They are the students who will stay in on a Saturday night reading when everyone else is at the movies; the teachers who will jump across the front of the room singing to help their students learn a lesson; and the men who say the world is round when everyone else says it is flat. They have the courage to venture outside of their comfort zone, and rule out failure as an option, even when probability says otherwise.  We live in a world that has proven time and time again to be resistant to change.  And if it weren’t for brave individuals challenging the accepted and laughing at remarks such as “you can’t” or “that’s impossible”, there would be no progress. Successful people go against the conventional way to learn, teach, invent, and inspire, and when met with resistance, they are not afraid to explain the method to their madness. In addition to this, successful people pursue their dreams, no matter how wild and outlandish they may seem. Sometimes this means disagreeing with a friend, standing up to a boss, or being left of out the group. Having the courage to be yourself and go after what you believe in is not always comfortable or easy, but for those who trust in the beauty and the power of their differences, it is fundamental to success.

 That being said, I would like to thank the teachers, coaches, and staff here at Schenevus who have supported my classmates and me throughout the journey that has led us to this day. Thank you for believing in our talent even when we didn’t.  Thank you for accepting our differences, even when others didn’t.  And thank you for supporting our crazy ideas for our future, even though they may seem impossible now.  I would also like to thank all of the parents and community members who have encouraged us to be courageous and bold throughout our lives. Your effort and caring has made all the difference.  

 Finally, to the class of 2012, it is through the ups, downs, laughter, tears, and the myriad of memories that you truly have become a second family to me. Although I’ve said countless times over the last four years that I cannot wait to graduate, I wouldn’t trade a second of that time for anything, because we as a class were something different. We didn’t fight, we didn’t put each other down, we joined together when necessary, and occasionally we got a little crazy. I can also safely say we were, and undoubtedly will remain, the only group to put on a flash mob in Miss Bliss’ calculus class without some type of punishment. Jokes aside, I know that because of this you will all go far. As we walk out of these doors today and begin the next chapter of our lives never forget where you came from, always keep an eye on your dreams, and most importantly, never lose the courage to be yourself. It is the best gift you will offer the world.

 I want to conclude this speech today with a quote from a man whose ingenuity and courage to follow his dreams linked an entire world through communication and technology in a way that had never been done before. Prior to his unfortunate death in 2011, CEO and founder of Apple, Steve Jobs, released a poster with a special message:

Thank you!”

Jessica is off to the University of North Carolina to study chemical engineering.  It’s clear that she has a great future.  Well done, Jessica!  Best of luck as you pursue your opportunities with courage.