Gross Taxable Retail Sales - April
- The "Top Ten" represent 45% of the Statewide
- The "Top Twenty-Five" represent
2/3rds of all retail sales.
- The "Top 20%" gainers
- Lehi +63.8%%
+31.2% (IKEA opened May 23rd!!)
- Midvale +29.6%
- South Jordan +26.4
- Vernal +17.6%
- The "Bottom 10%" include:
- Taylorsville -
- West Jordan -0.7%
April 07 Retail Sales - Top 25 Cities
(Large Monthly Filers Only)
||City||April 2007 (000)
||% Change 07/06||Mkt Share
April 07 (% of State Total)|
The "Top 5" Major Sectors
represent 50% of the market.
- The "Top 5"
- Construction +67.4%
- Public Admin
- Manufacturing +26.6%
- Fin, Ins, & Real Estate +24.7%
- Retail - Misc.
- Categories with declining sales were led
- Electric & Gas -19.9%
- Apparel & Acc -3.3%
- Transportation -1.5%
- Food Stores -1.4%
Source: Utah State Tax Commission, June 2007
Is Your Workforce Strange
Enough to Guarantee Competitive Advantage?
What characterizes successful
companies these days?
"A strikingly different,
obsessively focused" workforce, one that -- compared
to competitors' workforces -- is "downright strange."
To get the best results, companies have to build a
workforce "that is extraordinary in a way that
customers care about."
Performance Drivers: What Must
Customers Notice About Us So That We Win?
- Performance Drivers are what cause your
Organizational Outcomes to move; they specify what
customers need to notice and think about your
organization in order to make them choose you over
your competition. You should literally build your
measuring and gaming your Performance Drivers,
which results in a strange workforce. Developing,
measuring, and enacting your Performance Drivers
will not be easy (fortunately!), but it will give you
incredible insight into what your organization is
creating and not creating in order to differentiate you,
attract customers, and win. It will bring discipline to
the words and ideas that are your strategy, and you
will be able to track and manage the extent to which
your strategy is being enacted. You know you want
this; the only question is how hard are you willing to
work to get it?
Games People Play
- As the Dean of a business school, you decide that
the best reflection of winning is BusinessWeek's
rankings. These are prominent reputation scores
created by a third party that directly pits business
schools against each other every two years.
Essentially all MBA applicants know about the
BusinessWeek rankings, and the smartest MBA
applicants with highest motivation try to go to the best-
ranked schools. If you attract really smart, motivated
people to your school and simply don't mess them up
too bad, there is a very good chance they will go out
and succeed in their careers. And then guess where
they will want to hire their future MBAs? In fact, loyalty
aside, most successful companies want to recruit
MBA students from schools with the best public
reputations. And who can command the highest
salaries and the best jobs from these great
companies? You've got it: MBAs graduating from the
top-ranked programs. These virtuous cycles are why
you picked BusinessWeek's rankings as your primary
- Do you want to know what your Performance
Drivers are? Then you need to call BusinessWeek.
Because once you selected these particular rankings
as the evidence that will let you know that you are
winning, the only way to learn your Performance
Drivers is to figure out how BusinesWeek creates the
rankings. So you call up BusinessWeek and learn the
formula. Forty-five percent of the ranking is based on
what your MBAs say about your school after they have
been in the program a year. Forty-five percent of the
ranking is based on what the companies that hire your
MBA students say about your school. That leaves
10% -- what is that extra 10%? That's just a little
remainder, hardly worth thinking about too much, but
that is your school's "Intellectual Capital." But
Intellectual Capital sounds sort of important for a
university, right? How is that measured? There is a list
of 18 business publications that are considered
important by BusinessWeek, and each time one of
your faculty members publishes a paper in one of
those, your school gets a point.
- So now that you know the determinants of
winning, how do you want to go about gaming these
Performance Drivers? One thing is sure: You have
little need to worry about the intellectual contribution of
your professors. Even though intellectual contribution
and academic publishing is the coin of the academic
market, and it's what most of your workforce currently
is chasing, it just doesn't move the needle. If you are
going to try to tweak performance through intellectual
contribution, you should steer faculty toward those 18
- To really affect your Organizational Outcome, you
need to make students and recruiters really happy
with your school. The question is what you are willing
and able to do to satisfy these customers that other
business schools are not? For student satisfaction,
you might achieve good scores through compelling
teaching, but all your competitors are doing this too.
Could you differentiate by building a strange workforce
that truly pushes the MBA teaching envelope? Hire
professors who skip the research since it's not
important to winning anyway, and instead use their
time networking with industry leaders who they can
bring into the classroom? Maybe you could hire
professors who really show students the love by
inviting them over to their houses for picnics and
volleyball, or meeting them out at the bars. This
workforce might just be strange enough that other
schools wouldn't imitate it and MBA students would
view it as remarkable, giving you the highest marks on
the BusinessWeek survey.
- What about the recruiter evaluations of your MBA
program? How can you drive those numbers? You
could produce well-trained grads who have the basics
down cold and are confident but not pushy. Sounds
just like what the competition is trying to do -- good
luck displacing schools ranked better than you with six
times your endowment. What could you do that would
be strangely and noticeably valuable? What if you got
your faculty members to wine and dine company
recruiters when they come in for interviewing? On one
hand, it's blatant gaming because you're just creating
interpersonal goodwill so that recruiters rate your
school higher when they get surveyed by
BusinessWeek. On the other hand, professors might
just learn what recruiters are looking for in MBA
students that they aren't currently getting and then
build this into their classes. For example, recruiters
want more statistics and analytic ability from MBAs,
and professors could add cases with datasets and
make students run regressions and interpret output.
Professors could make the cases and the classes
compelling to MBAs by saying, "This is what Goldman
Sachs told me they are looking for in job applicants."
This could differentiate your school, and it would
game your two most important metrics
simultaneously. Sure, lots of professors wouldn't like
the idea of using their personal time wining and
dining recruiters; they might say that's not why they got
a Ph.D. But what if you located and hired a strange
breed of professor who liked hobnobbing with
recruiters and building what they learned from
recruiters into their classes?
- In developing this example, I'm not actually
suggesting that BusinessWeek rankings provide a
valid reflection of business school success. For
example, what would happen if BusinessWeek
suddenly increased the weight on intellectual
contribution for ranking schools? What if
BusinessWeek loses relevance in ten years because
the world really thinks universities should be judged
by their intellectual contribution? Then your school
could be in trouble because you built a strange
schmoozing-type organization that was not equipped
to contribute in intellectual ways. Listen, choosing a
strategy is risky (it better be!), and my point here is not
to suggest good versus bad strategies.
- My point here is that if you want to know what your
organization's Performance Drivers are, you need to
first identity Organizational Outcome metrics that
provide a valid reflection of what you think your
organization exists to create. Then, literally find a way
to make these metrics move in a way that your
competitors are not willing or able to pursue. That's
why we started with making sure your Organizational
Outcomes were strategic and reflected what winning
truly means to you. Once you choose Organizational
Outcomes and begin to take them seriously, they will
affect everything you do as an organization. They will
affect what seems reasonable and what seems
valuable. In the MBA school example, if you as Dean
had chosen a slightly different metric -- say the U.S.
News and World Report's rankings -- you would be
placing your emphasis on MBA admissions because
entering-class GMAT scores drive this metric, but
student and recruiter opinions are not included in
these rankings. Organizational Outcomes help
expose and pinpoint your Performance Drivers. By
building an organization around gaming and
measuring your Performance Drivers, you can build a
strange, noticeable organization.
- So here is what you need to do to figure out your
own organization's Performance Drivers:
- Hold your Organizational Outcomes meeting,
described in the last chapter. You and your top
leadership team distill your strategy into three to four
antagonistic metrics that let you know that you are
winning in the way you want to win. Remember, each
of your Organizational Outcomes must be a metric --
actual numbers that you collect and store in a
- Soon after your Organizational Outcomes event,
hold another meeting with the same group. This
second meeting, or series of meetings, is going to be
at least as long as the first one, probably much longer.
The timing of this second meeting is important but
difficult. You want to meet as soon as possible after
the first one so that people still remember the
Organizational Outcomes conversations and there is
some momentum left. On the other hand, the second
meeting can't be so soon that people are burnt out
and frustrated and feel the need to "get back to their
real work." They need to believe that this is their real
work. These discussions and decisions will
determine whether or not your organization wins over
the next three years and whether it is still alive in ten.
- For each of the Organizational Outcomes that
you have developed, build consensus about three
sets of questions:
- What produces this Organizational Outcome
number? Literally, what makes it go up or down?
- What are the two most important things our
customers have to believe about us relative to our
competition in order to affect this Organizational
Outcome? How do we measure our progress toward
creating these beliefs in our customers' heads?
- How can we influence this Organizational
Outcome in a way that is valuable, rare, and hard to
imitate? What are we willing and able to do that the
competition is not in order to drive this Organization
- Let's dig deeper into these questions so that you
know what you are looking for when you meet again
as a leadership team.
Continued Next Week
- City Retail Sales Rankings
- Is Your
Workforce Strange Enough
- Monday Report Survey Comments
- Economic notes
- This weeks leads
|Monday Report Survey Comments
Thanks to all of you who
#9 What can we do to improve the Monday
Report to make it more useful to you?
- Tidy it up. Make it printable. The tax data
(scorecard) is excellent. Featured articles are too long.
Thanks for sending it each week.
- nothing that I can think of right off
- Resume city rankings on retail sales.
- just keep it going
- Change the layout to make it easier to read.
- I'm interested in reading more about retail. Our
Mayor and Council focus on retail/sales tax. We have a
strong industrial/job base but could always use more.
I'd like to see what individual cities in Utah are doing
to attract business. Are they keeping current city
profiles, what does their website look life for
business, things like that.
- I appreciate being able to scan one source for
information on the Utah economy as well as trends in
business or business management. You provide a
- Not much, I really enjoy it.
- Add more Utah economic data
- It is already very useful to me.
- Perhaps have a summary index with links to
articles to make it easier to scan for relevant
What would you like to see in future Monday
- Demographic info. is great and very useful.
Retail and business trends, notice of upcoming
issues relating to doing business in Utah.
- more housing information more general
information (what cities are doing what studies....what
are the big events that everyone is talking about and
get some general details for each)
- The scorecard information on sales, growth,
demographics, etc. is very interesting and useful.
- continued current local trends
- Continued benefits from great information
collection. I enjoy and use your data frequently.
- More of the same great information
- Completed deals
- Utah economy and demographic info...
- As much local or regional news about the local
consumers and real estate market as possible.
economic information about what is happening.
Information about cities and counties in the state, IE
demographics, building, happenings, comparison
- The great information you include each issue.
- Reporting on the nonprofit sector.
- Great work. Thanks for providing this service.
- Global Business Confidence
- Global business sentiment edged up across the
globe last week, although it remains within a narrow
range that has prevailed since mid-April. Weighing on
sentiment are lackluster sales, but businesses are
feeling better about the outlook. Financial services
firms and South American businesses are the most
upbeat, while construction and real estate firms and
European businesses are the most nervous.
Business confidence is consistent with an economy
that is expanding at the low end of its potential, and
there is no indication in the survey results that the
stronger global growth experienced in the second
quarter of 2007 will accelerate further during this
- Investor Optimism
- Investor optimism edged slightly lower in July.
The UBS Index of Investor Optimism slipped two
points to 87. Despite this month's modest decline,
investor optimism remains within the range that has
prevailed since the beginning of this year. Weakening
housing markets and rising energy costs took a bite
out of investor confidence in July. The key supports
are tight labor markets and rising equity prices.
- US home resales lowest in nearly 5
- Sales by Americans of their homes declined to
the lowest level in nearly five years last month amid
fresh signs of a two-speed economy as household
activity moderated and business expansion picked
up. The National Association of Realtors said sales
of existing homes dropped for the fourth straight
month in a row with a slide of 3.8 per cent as
purchases fell fastest in former bubble markets in the
west and south of the country.
- MBA Mortgage Applications Survey
- Mortgage demand decreased 3.6% in the week
ending July 20. Purchase applications decreased
5.0% and refinance applications decreased 1.4%. The
fact that the index is down this week and down from
one month ago is clearly a negative signal, particularly
in the current climate where increases in applications
do not necessarily translate into sales, but declines
surely indicate less activity.
- Existing Home Sales
- The housing market remains mired in weakness,
with June's existing home sales numbers coming in
even worse than expected. Sales declined 3.8% from
May to 5.75 million annualized units. The inventory-to-
sales ratio remains high at 8.8 months. The one
bright spot is an uptick in the median existing price,
although this may result from a shift in the mix of
homes being sold. There is little good news for
financial markets with this report.
- New Home Sales (C25)
- The new home sales data further confirm that the
housing market is stuck in a downturn. June sales of
new homes declined to 834,000 annualized units,
6.6% below May, a larger than expected decline.
Moreover, May data were revised downward. Months of
supply moved up to 7.8, while the median sales price
is down by 2% from one year ago.
- Apartment Vacancy Spiking
- The nation's multifamily vacancy rate shot up in the
second quarter to an estimated 5.1%, 110 basis
points higher than a year ago, according to preliminary
survey results published this month by Torto Wheaton
Research. The Boston-based research subsidiary of
CB Richard Ellis will revise its conclusions with further
data in August, but a researcher says vacancies are
clearly climbing quicker than expected in many cities.
- Chain Store Sales
- Chain store sales fell 0.2% in the week ending
July 21, ending a string of three consecutive small
gains. Year-over-year growth dipped to 3.0% as sales
rose modestly in the comparable week last year.
- Durable Goods (Advance)
- New orders for manufactured durable goods rose
a less than expected 1.4% in June following an
upwardly revised 2.3% decline in May (previously -
2.4%). Shipments fell 1.1% in June, more than
reversing the 0.6% increase seen in the prior month.
Durable goods inventories were up 0.2% in June.
- Oil and Gas Inventories
- Crude oil inventories fell by 1.1 million barrels for
the week ending July 20, according to the Energy
Information Administration, in line with expectations.
Gasoline inventories increased by 0.8 million barrels,
slightly above expectations. Refinery activity improved
for a fifth consecutive week, increasing 0.7 percentage
points to 91.7%. Distillate supplies rose more than
expected. This report will have little impact on oil
- Weekly Natural Gas Storage Report
- Underground storage of natural gas increased by
71 billion cubic feet during the week ending July 20.
Underground natural gas inventories currently stand
16.1% above the five-year average. This report is likely
to have a slightly bearish effect on natural gas prices.
- Jobless Claims
- U.S. initial jobless claims fell slightly, dropping
2,000 to 301,000. Given the recent volatility in the data
due to auto-related shutdowns, this was not wholly
|This Weeks Leads
- Dippin' Dots
- Dippin' Dots Franchising, Inc. trades as Dippin'
Dots at 300 locations nationwide.
- The ice cream
shops occupy spaces of 100 sq.ft. to 1,500 sq.ft. in
freestanding locations, malls, lifestyle, outlet,
specialty, strip and tourist centers.
- Plans call for
90 openings nationwide during the coming 18
- Preferred cotenants include Abercrombie
& Fitch, Gap, Limited, Limited Too and Old Navy.
- For more information, contact
- Dippin Dots Franchising, Inc.,
McCracken Boulevard, Suite 100,
- Paducah, KY
- Web site: www.dippindots.com.
- The Vitamin Shop
- The Vitamin Shop, a 291-unit chain, operates
- The stores, offering
vitamins, minerals and supplements, occupy spaces
of 3,000 sq.ft. to 4,000 sq.ft. in freestanding locations,
endcaps and pad sites.
- Plans call for 50
openings nationwide during the coming 18 months,
with representation by Bialow Real Estate.
- Corey Bialow,
- c/o Bialow
- 60 Wells Avenue,
- Newtown, MA
- Web site: www.bialow.com
- Slim and Tone
- Slim and Tone, a 150-unit chain, operates
locations nationwide in 31 states.
- The fitness
centers occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in
specialty and strip centers.
- Growth opportunities
are sought nationwide during the coming 18 months.
- Typical leases run five years with a five-year
- A vanilla shell and specific improvements
- Preferred cotenants include grocery
- Competition is cited as Curves.
- Preferred demographics include a population of
40,000 within five miles earning $60,000 as the
average household income.
- The chain targets
women between 25 and 64 years of age.
company is franchising.
- For details, contact
- Mark Camara, c/o Ape Realty, Inc.,
West Whitewater Avenue,
- Weston, FL 33332;
- Web site: www.slimandtone.com
- James Avery Craftsman
- James Avery Craftsman, Inc. trades as James
- The 44-unit chain operates
locations throughout CO, GA, LA, OK and TX.
jewelry shops occupy spaces of 2,600 sq.ft. in malls,
lifestyle and strip centers.
- Growth opportunities
are sought throughout the existing markets during the
coming 18 months.
- Typical leases run 10 years.
- A vanilla shell is required.
- Preferred cotenants
include Ann Taylor, Chico's, Jos. A. Bank, Neiman
Marcus, Nordstrom and Talbots.
demographics include a population of 300,000 within
20 miles earning $70,000 as the average household
- Competition is cited as David Yurman
- For details, contact
- James Avery Craftsman, Inc.,
- Kerrville, TX 78029;
- Web site:
|BONNEVILLE RESEARCH - People, Passion & Pride
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