and marketing better shoes, not becoming
an expert in supply chains.
Again, this kind of relationship with
another company requires unheard of information sharing and
trust. As Friedman writes, “In many cases, UPS and its
employees are so deep inside their clients’
infrastructure that it is almost impossible
to determine where one stops and the other starts. The UPS people are not just synchronizing your packages—they are synchronizing your whole company and its interaction with both customers and suppliers” (pp 149–150).
to determine where one stops and the other starts. The UPS people are not just synchronizing your packages—they are synchronizing your whole company and its interaction with both customers and suppliers” (pp 149–150).
The UPS chairman and CEO Mike Eskew put it
this way: “We answer your phones, we talk to your
customers, we house your inventory, and we tell you what sells
and doesn’t sell. We have access to your information and
you have to trust us . . . we are asking people to let go of
part
of their business, and that really requires trust” (p. 150).
of their business, and that really requires trust” (p. 150).
SORTING OUT THE WINNERS AND LOSERS . . .
WHAT IS GOVERNMENT’S ROLE?
Tom Friedman has written
a breathtaking book, and it focuses primarily on technological and corporate advances in managing business in a global economy as walls and barriers crumble. But what is the impact on our communities, and why should government officials care about these changes?
a breathtaking book, and it focuses primarily on technological and corporate advances in managing business in a global economy as walls and barriers crumble. But what is the impact on our communities, and why should government officials care about these changes?
It turns out that these changes are
producing winners and losers, that will alter the politics of
our communities and country in ways not yet clear. Take
Wal-Mart. If you’re a consumer, you love it for the low
prices. If you own stock in Wal-Mart you’re also pleased.
If you are a community
leader, you’re happy with the taxes
it produces, but aware of its impact on the mom and pop stores
that often go out of business when another Wal-Mart “big
box” opens.
And what about other employees in the
community who are happy with their current job, in part because
their employer pays good benefits? Wal-Mart pays relatively low
wages and doesn’t cover all of its employees with health
care insurance, and its example is spreading to some other
companies. Some full time Wal-Mart employees live in public
housing, use food stamps, and end up in emergency rooms when
they’re sick (the most expensive way to get treated). And
who picks up part of their hospital tab? All of us. So as
citizens, we have mixed emotions about the impact
of Wal-Mart on our communities and country. Those “everyday low prices” and tax revenues are great. Those everyday low wages and indirect costs to our communities
are lousy.
of Wal-Mart on our communities and country. Those “everyday low prices” and tax revenues are great. Those everyday low wages and indirect costs to our communities
are lousy.
What (if anything) should government be
doing to deal with the many repercussions of this new flat
world without walls? That is the topic of our next column. 
For more information:
Russell M. Linden, PhD
Principal
Principal
Russ Linden & Assoc.
609 E. Market St.
Suite 206
Charlottesville, VA 22902
(434) 979-6421
www.russlinden.com