Bruce Nordstrom’s recent book, Leave It Better Than You Found It, contains one of the best development policies for the local economy. It is full of simple economic principles that created one of the most sustainable and remarkable companies to bless the local economy. John W. Nordstrom, along with his fellow Klondike Gold partner Carl Wallin, founded their company in 1901. The mission statement was to create “the biggest and the best shoe store.” Nordstrom was not spared the economic hardship of the Great Depression and the many recessions that have occurred in the decades since. So what enabled this startup business to grow from its first-day sales of $12.50 to over $9 billion in annual revenue?
Here are five simple elements that are just as valid today as they have been throughout the 109 years of the company’s history. As the founders go, so goes the company, so goes employment, so goes the local economy, and so goes the community. In the statistical science this is called conditional probability − one event based on another. Specifically, the founders and family members who continue to live here keep their companies grounded in the community. This is the case with four founders of Costco, who continue to live on the Eastside. The same applies to Bellevue Square with the Freeman family, Mutual Materials with the Houlihands, Microsoft and so many of the nation’s best companies.
“Where your treasure is there will be your heart, also.” (Matthew 6:21). These founders and families not only generate equity for their companies, but also contribute back to the community by supporting the arts and local non-profits. Estate and other taxes may have a potential for increasing public revenues, but more likely will result in corporate and family relocations. A recent local example is the relocation of Food Services of America’s corporate headquarters and executive leadership from West Seattle to Scottsdale.
“Expand first locally” is a principle based on the ability to grow within the local market versus the desire to grow. Based on Hebert Research’s current research findings, 83.9 percent of Eastside businesses plan to expand within the local market area first. Among businesses with a corporate headquarters established locally, 94 percent have a high probability of retaining their current location. Quality of life, in terms of retail, recreation and education, continues to be a strong attribute for business retention.
Good communication between local government and local business is essential. There is a strong relationship between business satisfaction levels with government and the overall business outlook.
JIM HEBERT
Bellevue Reporter Columnist
Jun 03 2010
Monday, August 23, 2010
The Economy at Home
Along with consumer worries about employment and healthcare, housing is one of the top three. The largest single line item of the average Seattle-Eastside household is housing. This comprises 31% of household income including mortgage payment or rent, taxes, insurance, utilities, and maintenance. For many, housing is not just shelter but a long term investment. Home building involving labor and materials has one of the highest economic multipliers (2.8x) and provides a major basis for local government and education tax revenues.
As part of the national economic recovery programs both the auto and housing industry were targets. The results, however, are quite different. Much was learned about this program. During this period, vehicle sales sharply increased and then, following the tax credit sales, immediately declined, but then recovered. The major long term economic benefit was that millions of older cars and trucks were removed permanently from returning on the used car market.
This has not been the case with the tax credit for home buyers which expired on April 30, 2010. Sales had declined in local and national housing to nearly the market lows during the September 2008 to March 2009, before the 2009 8000 tax credit program began to respond. In effect, the home buyers program, while similar to the auto program, had a strong casual effect but sustainability is very different. Previously owned housing did not get physically removed from the market.
Housing and employment have .86 correlations between these two variables. In other words, as employment growth changes so does housing sales. The hope was that employment growth would return but it hasn’t.
The economy is essence about balancing a set of complex independent variables. When the economy is not working as expected, political intervention often occurs, which sometimes works and other times there are unintended consequences. The fact does remain that with government policies influencing changes in interest rates on mortgages and underwriting standards, or tax polices, there almost always is a market response.
Here is the economic result. First of all 64.5% of the major markets in the U.S. have experienced an increase in median sales prices since a year ago. Unfortunately, King County declined 6.4% during the same period. The reason lies largely within the increases in active listings especially at the higher price points. The number of month’s supply under $749,999 is 7.1 months and then increases to 8.7 months under $999,999. It then moves to 13.9 months for homes over one million. What is especially important is that the tax credit program prior to the April 30, 2010 expiration resulted in reduction to the months of active listings--a low point of 3.1 months. This is especially evident within the affordable home prices.
The decline in median home prices locally is a function of the continued high number of foreclosures and heavy discounting. It is also the further decline in consumer confidence, increased worries about the federal deficit among those home buyers able to purchase, willing - but increasingly fearful that the economy recovery will be delayed.
Jim Hebert
8-16-10
As part of the national economic recovery programs both the auto and housing industry were targets. The results, however, are quite different. Much was learned about this program. During this period, vehicle sales sharply increased and then, following the tax credit sales, immediately declined, but then recovered. The major long term economic benefit was that millions of older cars and trucks were removed permanently from returning on the used car market.
This has not been the case with the tax credit for home buyers which expired on April 30, 2010. Sales had declined in local and national housing to nearly the market lows during the September 2008 to March 2009, before the 2009 8000 tax credit program began to respond. In effect, the home buyers program, while similar to the auto program, had a strong casual effect but sustainability is very different. Previously owned housing did not get physically removed from the market.
Housing and employment have .86 correlations between these two variables. In other words, as employment growth changes so does housing sales. The hope was that employment growth would return but it hasn’t.
The economy is essence about balancing a set of complex independent variables. When the economy is not working as expected, political intervention often occurs, which sometimes works and other times there are unintended consequences. The fact does remain that with government policies influencing changes in interest rates on mortgages and underwriting standards, or tax polices, there almost always is a market response.
Here is the economic result. First of all 64.5% of the major markets in the U.S. have experienced an increase in median sales prices since a year ago. Unfortunately, King County declined 6.4% during the same period. The reason lies largely within the increases in active listings especially at the higher price points. The number of month’s supply under $749,999 is 7.1 months and then increases to 8.7 months under $999,999. It then moves to 13.9 months for homes over one million. What is especially important is that the tax credit program prior to the April 30, 2010 expiration resulted in reduction to the months of active listings--a low point of 3.1 months. This is especially evident within the affordable home prices.
The decline in median home prices locally is a function of the continued high number of foreclosures and heavy discounting. It is also the further decline in consumer confidence, increased worries about the federal deficit among those home buyers able to purchase, willing - but increasingly fearful that the economy recovery will be delayed.
Jim Hebert
8-16-10
Better health care needs an 'empowered patient'
By JIM HEBERT
Bellevue Reporter Columnist
Aug 06 2010
Aug 06 2010
This year’s healthcare reform debate primarily addressed funding issues. However, even after the bill was signed into law, questions remained about the ability to fund national healthcare reform.
Here's one idea that which will both reduce costs and improve patient quality. It's called the "empowered patient."
During a recent study of hospitalized patients conducted by Hebert Research, 63 percent of patients surveyed expressed a “want to know” more about being involved in their personal health care decisions. No difference was found for patient demographics or whether the patients used private insurance or Medicare.
The survey found that, while patients use a broad base of information sources, empowered patients rated the internet as their primary source for healthcare information. The research also found that 60 percent of patients had a clear expectation as to the amount of time that would be spend on their care. They also did not believe that reducing the number of patients seen per hour is a real solution to controlling healthcare costs. Misdiagnosis and potential litigation offset the additional time cost of more time spent with patients.
One of the solutions supported by the research was use of a Patient First Health Record (PFHR), which provides the physician with prior medical history and medications, treatment and lifestyle information such as exercise and diet. Even though patients continue to have concerns about privacy abuses, they want their physicians to know them better. This was reported among 55 percent of the patients surveyed.
Over half of those responding reported that they have a strong desire for a patient advocate, a partner in healthcare that is present during meetings with the physician, during treatment and in-patient or out-patient surgery. Such an advocate takes notes, makes observations, asks questions, and especially knows the patient’s rights. The advocate does not interfere in medical procedures or treatments.
Patients who had an advocate reported much higher levels of medical care than those who did not. The research also found strong support for the practice of using a team. This involved the physician as the medical leader, an empowered patient to make the right decisions for their medical treatment, and the patient advocate. This medical team should have a goal, a medical plan and a measure of the outcomes that are agreed by all team members.
From the Bellevue Reporter.
Here's one idea that which will both reduce costs and improve patient quality. It's called the "empowered patient."
During a recent study of hospitalized patients conducted by Hebert Research, 63 percent of patients surveyed expressed a “want to know” more about being involved in their personal health care decisions. No difference was found for patient demographics or whether the patients used private insurance or Medicare.
The survey found that, while patients use a broad base of information sources, empowered patients rated the internet as their primary source for healthcare information. The research also found that 60 percent of patients had a clear expectation as to the amount of time that would be spend on their care. They also did not believe that reducing the number of patients seen per hour is a real solution to controlling healthcare costs. Misdiagnosis and potential litigation offset the additional time cost of more time spent with patients.
One of the solutions supported by the research was use of a Patient First Health Record (PFHR), which provides the physician with prior medical history and medications, treatment and lifestyle information such as exercise and diet. Even though patients continue to have concerns about privacy abuses, they want their physicians to know them better. This was reported among 55 percent of the patients surveyed.
Over half of those responding reported that they have a strong desire for a patient advocate, a partner in healthcare that is present during meetings with the physician, during treatment and in-patient or out-patient surgery. Such an advocate takes notes, makes observations, asks questions, and especially knows the patient’s rights. The advocate does not interfere in medical procedures or treatments.
Patients who had an advocate reported much higher levels of medical care than those who did not. The research also found strong support for the practice of using a team. This involved the physician as the medical leader, an empowered patient to make the right decisions for their medical treatment, and the patient advocate. This medical team should have a goal, a medical plan and a measure of the outcomes that are agreed by all team members.
From the Bellevue Reporter.
Wednesday, August 11, 2010
Hebert Research Inc. Announces Executive Team Expansion
Press Release
[For Release on August 11, 2010]
T. Ron Davis appointed Senior Vice President, Marketing and Sales
(August 11, 2010) BELLEVUE, WA – Hebert Research Inc., a leading provider of consumer, government and retail market research services announced the expansion of its executive team with the appointment of T. Ron Davis as Senior Vice President, Marketing and Sales. Davis has also been appointed to Hebert Research’s Executive Committee joining Jim Hebert, CEO and Cynthia Sullivan Hebert, COO as the company positions itself for future expansion.
“Ron brings extensive marketing and sales experience from top international companies including Microsoft, American Express and Digital Equipment Corporation in Europe, Asia and the United States. Throughout his career, Ron has demonstrated success in building global brands and positive market presence through strong creative and business skills. I have had the pleasure of working with Ron for over 15 years as his research provider. I am extremely pleased that he has agreed to now come on board with us and help launch the next generation of Hebert Research – said Jim Hebert, CEO. "
As SVP Marketing and Sales, Davis will be responsible for strategic direction of all marketing and sales efforts including marketing strategy, branding, productizing, advertising, client experience and external communications.
Davis was the Director of Fortune 500 Marketing at Microsoft where he established the Corporate Account Marketing group. Later, as Microsoft’s Director of Sales Training, Ron transformed the US Sales Training department into the Worldwide Sales Training Group and played a principal role in growing F500 revenue from $25M to $1B.
After leaving Microsoft, Davis became an independent marketing consultant and was founder of three privately held companies. Davis focused on start-up and early stage technology companies involved in providing consumer information, publishing, eCommerce and interactive media. Most recently he was responsible for developing retail brand, product and distribution channel strategies in the clean tech industry. Davis spent nine years with DEC (Digital Equipment Corporation) in marketing, sales, and management roles. Ron started his career as a technologist in international systems and telecommunications at American Express.
Welcome to the new Hebert Research Blog
Hebert Research, Inc located in Bellevue, Washington was founded in 1978 and since that time has become one of the leading full-service market research groups in the US providing market, product, consumer, public policy and economic research to over 7,000 organizations. Hebert Research provides research services to such clients as Costco, PepsiCo, Toyota, Kraft Foods, Starbucks, Microsoft, T-Mobile, Weyerhaeuser, Paccar and others. More information about Hebert Research is available at: www.hebertresearch.com
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