Category Archives: Impressions

Cocktail Party Etiquette

Last night I attended a cocktail party or ‘vernissage’ at a downtown gallery.

The art was interesting, huge canvas’ with portraits – an interesting juxtaposition of old and new styles.

The crowd was extremely mixed from the very wealthy with their private cars and drivers at the door, the parvenues,trying to show everyone how ‘cool’ they are, and desperately fluttering around seeking the attention of the rich and famous. Lawyers, fashion designers, media types, business executives, a singer, and a fairly large contingent who couldn’t possibly afford even the smallest item for sale, who, I can’t possibly imagine how, were invited.

The food, which I must say, was excellent, wine was flowing freely, and the crowd so dense that the party finally spilled into the street as the gallery couldn’t hold them all.

A couple of wags were overheard between mouthfuls of food which they were absolutely shovelling into their mouths, that they adored coming to parties such as this one as the food was excellent, an  overabundance of wine, and their supper was well provided. They served themselves to several platefuls of food, and endless glasses of wine, one was staggering and showed no signs of slowing.

By the time I left, the group of them must have each consumed at least 4 glasses of wine, 3 platefuls of food, and were going back for more.

So, what is the correct etiquette at this sort of function?    I was brought up not to be pushy and aggressive when it came to free food, that to savagely attack food at a party is the sign of extremely bad manners.  I had one plate of food, nothing whatsoever to drink, not even water.

The question is,  inasmuch as it is being offered, should you feel free to eat and drink as long as the food continues to be served, with the absolute knowledge that you have no intention whatsoever, or even worse, no means to make a purchase in an art gallery??

Personally I find their behaviour quite appalling and would be embarrassed at exhibiting such behaviour……thoughts???!!!

Food Allergies

This blog is not directly related to day to day business, however it is being posted as a reminder to people that food allergies go way beyond peanuts and other nuts. It has become increasingly clear that a lot of people are not aware of a couple of other allergies which are equally dangerous, being shellfish such as lobster and shrimp, and blue cheese.

Unfortunately a lot of people add blue cheese to hamburgers, cole slaw, cheese plates, salads and even chocolates. As it is not easily visible, and mixes easily it is extremely dangerous.

If you are among lucky people who have no food allergies, I can only say I am extremely jealous, as food allergies are tiresome, irksome, and generally a total nuisance, however, they can also be the difference between life and death.

Shellfish luckily tend to be more obvious, as due to their bright colour they are harder to disguise, and most people will proudly announce a seafood plate.

I was recently reminded of an incident which occurred at a party over 10 years ago where one guest brought a salad with blue cheese dressing and didn’t bother to tell anyone. It was placed on a serving table with no explanation, and we were invited to help ourselves. I made the mistake of taking some, as one would presume that salad was a healthy option, not this day. I took one bite and my mouth lit up …..it is hard to describe, the best way is to say very unpleasant tingling…..luckily I was near a sink and I quickly spit it out and rinsed my mouth, then I gargled. To say I wasn’t elegant is an understatement. From there I quickly took an antihistamine and hoped that I had been lucky enough to get it all out of my mouth. I announced to the room loudly that Blue Cheese could be fatal to me, so that in the event I passed out  and they called the paramedics, it would be clear of the problem, and could be properly ventilated. I was extremely lucky.

It would appear that I offended someone at the party, and as the expression goes, couldn’t give a rat’s aXXX about their feelings. As they put my life and the lives of others at risk through total ignorance. So to all you readers,  this is a reminder to be extremely careful about planning group meals. Inquire about nuts, peanuts, shellfish and blue cheese. Anyone allergic to mould or Penicillin is violently allergic to blue cheese. If it touches the back of their throat they will choke to death within a few short minutes.

Hallowe’en will be here in a matter of days. Leave out the Peanut butter cups, leave out the candy bars covered in peanuts, and save a life. Children are very careless, and don’t tell the truth when it comes to candy.   Some people I know actually had a child die at their party because one child snuck  peanut butter and chocolate candy In their backpack and then shared it when the parents weren’t around. The child was dead before the paramedics arrived.

Somehow I think having one person’s feelings hurt is preferable to a dead dinner guest or a dead child.

Your thoughts?!!

How to read the newspaper

As with many things, my comments and observations have been twisted beyond recognition, so for those who have heard a mis-interpretation of my actual words, I am publishing this article on my blog for all the world to see. There are a couple of people out there who will certainly recognize themselves out there, and a few who will certainly remember a couple of lively evenings ! Unfortunately vocabulary and personal attitudes can easily blind one from the ability to open one’s mind and enjoy the musings of others.

Arrogance comes in all shapes and sizes.

As of today’s date, we have been in a global financial recession for the last 4 years. Every day you open the newspaper and are virtually attacked by a variety of headlines, some researched, but many unfortunately, paid for. As newspapers are a business, they tend to conveniently omit to mention that many of the ‘articles’ or ‘headlines’ are in fact paid articles.   Disturbingly, many publishers don’t realize that they are contradicting themselves sometimes within the same section on the same day of the same newspaper.

“ABC Company’ closes an important deal in Illinois for $386 million, creating 1000 new jobs. Sounds absolutely wonderful doesn’t it??    However, several pages later in a thumbprint size notice, is a mention that the same company is laying off 1500 people. WHAT?  The reality is that for every ‘new job’ they create, they receive 37.5% of the first year’s salary from the Quebec Government, for ‘job creation’ . Net gain, minus 500 jobs. Appearance in the press, awesome. …. And as with many things, first appearances tend to sway those who aren’t really listening or paying attention, but are naïve enough to believe everything they either read or are told.

“XYZ Bank” just declares a loss of $650 million…..sounds horrible…….but buried on page 4 is a summary of their most recent acquisitions and write-downs. In fact, if one was to put the two articles together it was actually brilliant business……but unfortunately making a headline was more important for the junior reporter than doing his homework.

“Office space being hammered by the recession’ …yet once again, a few pages later, we read that premium office space is fully leased……so are we describing prime space, B space,  what exactly?   Hard to know…as the two  articles are totally contradictory.

I am not pinpointing any city, any newspaper in this commentary, as I happen to regularly purchase newspapers from London, New York, Toronto and Montreal not to mention no end of business and fashion magazines from around the world.  My observations are extremely broad, and what essentially I am saying, is that before you quote a fact gleaned from a newspaper, reference the source and the facts. Things are not always as they appear.

Open letter to L’office de la Langue Francais and our blind Quebec Politicians

Have any of you been to Ottawa or Toronto over the last few years?

Did you drive or simply fly on a government jet, be picked up in a limousine subsidized by the Quebec taxpayer, and taken directly to your destination?

Did you actually look out the window?

Did you SEE what is happening?

Did you actually pay attention, or was it just so much noise?

Did you see the skyline in Toronto?

Did you walk on the streets?

Did you hear the multitude of languages being spoken?

Did you see the International Big-Name designer shops lined up along Bloor Street, all full with paying clients, or notice that they are moving into larger and larger premises to accommodate the booming local market?

In looking out the windows from my corner unit on the 34th floor at the corner of Bay and Bloor, my view is increasingly blocked by the sea of mind-numbingly expensive condos being built on every street. Many start at the staggering amount of $6 million, and go up exponentially the higher the floor, and the larger the unit. There isn’t one, but a multitude of them, and more being started as far as you can see, and I can see for miles and miles in several directions, as I look out over the north and western parts of the city.
The city is awash with massive construction cranes, some areas such as the Harbourfront are wall to wall construction cranes and massive new towers.

Walking on the street in Montreal one hears what has to be some of the most appallingly spoken French in the world, yet we continue to pass restrictive laws to protect it, all the while, business is following the path of least resistance, and is heading to Toronto in droves, where it flourishes in a multitude of languages, without the constant cost and aggravation imposed by the ludicrous and restrictive language laws in Quebec. Why on earth should a Chinese company employing Chinese speaking people be legislated to do business in French because they employ over 50 people? Well, not in Toronto, they are open for business, and language is NOT an issue.

I am in Toronto monthly, and due to the nature of my business, find myself constantly in a new area of the city. Every time I am amazed at the exponential growth and wealth in the city. Coming back to Montreal all one sees is decaying bridges and roads.

The shops on Bloor are so populated at times, that they actually run out of stock of the ‘hot’ items, yet these same shops no longer have a presence at all in Montreal which speaks volumes as to the disappearance of wealth from the province.
Montreal used to be the Banking centre of Canada, and now all the head-offices have relocated to Toronto, not having to worry about protectionism, and free to do business. Instead of French, one goes to an ATM and sees Cantonese, Mandarin and a variety of other languages, to serve their clients, depending on the area of the city. It can just as easily be Portuguese as anything…

Tourists and residents in Quebec are treated poorly by surly public servants and obnoxious shop clerks who want to assert their right to speak French, yet don’t think that the person in front of them could be a wealthy tourist, or even better, a wealthy individual looking at the city with an eye of moving and investing in it, opening a business, creating jobs. This short-sighted behaviour has them all scurrying down the 401 to more pleasant climes, and cities that are ‘open for business’ regardless of the language. As the old adage goes, money talks and money walks, and it hasn’t just walked but run away from this province.

When is someone going to wake up and make Quebec a pleasant, happy, multilingual place to live and do business, where we encourage new business and innovation, without outrageous and outmoded language legislation?
Why can’t we follow the EU model, and have a population speaking 4 languages…..or even more….multilingualism certainly hasn’t harmed the hundred million or more people in the European Community….

Do you REALLY know how your employees represent your company to the outside world?

There appears to be a serious lack of interest in many Senior Executives in finding out exactly how their employees interact with the outside world.

A simple telephone call from a blocked phone and a series of questions to people in various departments will yield a fast and effective way of determining current attitudes.

How many times have your called  ‘customer service’ and had someone in a hurry try to get you off the phone?

Or the human resources clerk who doesn’t listen to what you say, screams that she is not interested in you, or worse, before you have said a thing says she has ‘preferred vendors’. That has become an oxymoron as it usually means she is doing business with her friends. If she speaks to a total stranger like that, with no knowledge of who they are, who they know or what they do, how on earth does she behave with employees who require assistance, or heaven forbid, come for an interview?

The receptionist who answers the phone with ‘one moment’ and puts you on hold for 5 minutes to listen to bad music, comes back on the line, says ‘one moment’ again, puts you BACK on hold, without any consideration of who you are or where you are calling from……if your call is costing a fortune per minute, it is highly unlikely they will get your business.

Does anyone actually want to do business with a company who is so totally disrespectful..?

Then, of course, is my favourite. The phone solicitor who, upon having a female answer the phone, berates her, insists in a rude voice that he needs to speak with the President, and who exactly does this pathetic person think she is to question him?    Over the years, this is something which has happened to me a lot, as I answer the phone regularly, at all sorts of weird times, and inevitably find myself with one of these ‘treasures’ on the other end of the line. The call usually goes something like this, ‘may I help you?’ ‘What can I do to help you?”  “Could you please tell me the purpose of the call?” As the caller gets ruder and ruder and more belligerent and eventually barks that he wants the name of the ‘rude’ receptionist he is speaking with as he is going to report her to management.

Hello?    Seriously?    He just called and is speaking to a total stranger like that as he tries to elicit information?   Really? What planet does he come from?

Does this type of intimidation really work?

As the President of the company, it certainly makes for some interesting conversations ,but also ensures that we log the name of the individual and the company and ensure that we and our friends do not do business with this firm. Any firm who hires people that arrogant and disrespectful will never get any referrals or business.

Or another one of my favourites, the rude, snarling clerk in a store at the check-out counter,  when you have the audacity to wish to pay for merchandise which in turn pays for her salary. I mean, really, disturbing her very important conversation with a co-worker and having the gall to want to pay when she is in the middle of a conversation?

Or then there is the one who dismisses you because she doesn’t think you can afford to purchase the merchandise she is selling.

Then, of course, there is the truly condescending clerk who sniffles at you, and asks if you have any idea what you are looking at, removes it from your hands, and replaces it on the counter, as if you couldn’t possibly appreciate such a valuable piece.

Naturally, in Quebec, there is the never-ending language debate which ensures many clerks feel that their right to speak French supersedes the right of the PAYING client to be addressed in their language as they are paying for merchandise. On a couple of occasions, I have actually witnessed clerks criticizing  English clients , in French,  about the fact that we are in Quebec and everyone should be speaking French, and that they should go elsewhere.  In my case, interestingly, my French is inevitably better than theirs, and they have no idea that I understand every word coming out of their mouths.

How on earth do these people have jobs?

How can the owners of these businesses continue to employ them?

Are management really that ignorant of what is going on in their businesses?

The exercise of client relations is to ensure that the client is served in such a positive fashion that they want to come back to your establishment, not to tell 10 friends to never set foot into the shop.

All this makes for interesting and amusing anecdotes, but if no one is paying attention,  the competition is waiting out there with a smile on their face and multilingual staff to take your cash in a pleasant fashion.



 

EGO is ALL

‘Now it’s all about ME”

Andy Warhol once spoke of everyone having their 15 minutes of fame. Today many people are running their lives to have the exact opposite effect. Privacy is now becoming the new ‘in thing’ with the elite while the rest spend their lives  concerned about social networking and how many ‘friends’ they have.

I can’t imagine why anyone in their right mind would care to read a ‘tweet’ every few minutes from some ostensibly famous person brushing their teeth or going to the grocery store.

We see grown men stomping their feet and throwing major temper tantrums when they don’t have their way, and then bullying in order to have their way. Not cute. Not funny. Yet, for some indescribable reason it is acceptable by some people, and given the feeble excuse that the perpetrator is ‘charming’. Unless one is the recipient of some kind of generosity or recognition I can’t imagine why this intolerable and belligerent behaviour could be socially acceptable.

One woman, desperately seeking a wealthy husband so that she never has to work again, and can have the lifestyle she believes she deserves, exclaimed to a group of friends that ‘now it’s all about me’ and went on to explain that unless her friends were going to introduce her to rich, available, single men, that she no longer wishes to spend time with them, since they aren’t promoting her cause.

Well, I guess that leaves no room for doubt!

Young people are spending hours on Facebook, photographing themselves and posting the photos of their latest greatest coup, bragging about their newest bestest friends, yet, do they actually know how

To make and retain a real friend which will endure a lifetime?

The superficiality of many people is obvious, and actually quite frightening. Constantly seeking out their ‘new best friend’ , or who can help advance their career or social life, and giving little or nothing in return, and thinking that this is perfectly ok.

What had once been described as the ‘ME’ generation has now expanded to include adults who should know better.

It used to be that one aspired to see their name in print only 3 times in their lifetime, birth, marriage and death, and it was considered as ‘common’ to have one’s life detailed in the public eye. There are some people today who are such publicity hounds that they will do practically anything to appear in print, and a film clip on the local news, well, priceless.

Walking down the street has become a new sport dodging the rude people furiously texting and talking on their telephones.

And WHY when you just left your apartment, do you need to get into the elevator texting or making a phone call? Should the rest of the people in the elevator be somehow impressed that you actually know someone you can call? Do you really think your conversation is so important that we all need to hear it?

We have to deal with small town politicians with delusions of grandeur deciding who is important and who is not, as if somehow, they consider themselves the arbiter’s of good taste. The mere act of characterizing people they actually don’t know, denotes that they are in fact practicing extremely bad taste and extremely low class.

If one doesn’t actually take the time to get to know people, who to say how important they are or are not.

But cruelness in order to aggrandize oneself seems to becoming the social norm, ruthless social climbing while demeaning others only works for so long.

Don’t they realize that the people they criticize actually speak to one another?

At some point this offensive behaviour becomes common knowledge and once the proverbial cat is out of the bag, it becomes like an unstoppable avalanche.

At the end of the day, why on earth would anyone want to be friends or even acquaintances with someone who has such a large ego that there is no room for anyone except for those who are on bended knee to them? There is no excuse for cruelty.

When reality finally sets in they will find themselves well and truly alone…….as they richly deserve.



 

The Demise of “Nice”

In an age when one’s public image seems to be overly important, it is fascinating to observe the sheer numbers of people who along the way have lost all sense of courtesy and the ability to recognize or appreciate someone who is genuinely ‘nice’.
People with good manners are being treated as ‘weak’ to the extent that some kind and gentle souls are being mocked in public and spoken of as doormats for the simple crime of being nice.

There are no end to the number of self aggrandizing bullies out there who are rude, arrogant, and publicly dismiss others without even the most modest knowledge of who they are. They seem to feel that unless they are like them, constantly bragging about who they are, who they know, and what they do, then the others are of no value. They gossip, insult people with no reason, and  interrogate people publicly in order to ‘put them down’ . Nothing worse than a group of aspiring ‘socialites’ who have the audacity to think they can decide who is ‘in’ and who is ‘out’. Ironically, most of the same socialites who are living off the largesse of their husbands who pay for the designer clothes, memberships in posh clubs, and pay for their meals in expensive restaurants. Their ego’s are so far out there, and attitude towards others who have not married quite as well as them, that they forget they are only the ‘wives of’ and not the actual successful individual. Even when their husbands decide they have had enough of being married to a bitch, and ditch them for someone younger and kinder, these individuals continue along the same path of criticism and condescension.

We hear people constantly complaining about the younger generation’s lack of common sense and good manners, but unfortunately it seems to cross all socio-economic paths, and has exploded to a point that the pendulum is about to switch sides.

Employers are now actually seeking individuals with ‘soft skills’, ie, the ability to work in a team, and to be able to cross all levels in an organisation. Potential hires are being taken out to meals in restaurants so that their manners in public can be measured. If they are rude with the help staff, then it goes without saying that they will be rude to underlings. If they have no table manners, they have no manners.

When a gentleman holds the door open for a ‘lady’, the correct response is ‘thank you’, however, for some bizarre reason, some women actually snarl at the men that they ‘can open their own *&^ door’

Sending a ‘Thank You’ note to some socialites seems to provoke mockery.

Saying ‘Please’, ‘Thank You’, and ‘I Beg your Pardon’ seems to illicit some people to be intolerably rude.

Peer pressure on girls who are teenagers or in their low twenties to be promiscuous, strangely enough, by other girls their own age, who are promiscuous, forces them to have low self esteem ,which is ludicrous. Since when is being loose the sign of being a loser?!!

From shop clerks who spend hours admiring themselves in the mirror fussing with their hair or lipstick, speaking or texting on mobile phones, cashiers who chat with one another while clients are 5 deep in queues, service staff who are intolerably rude, bullies on the playground or work, receptionists who leave the phone ringing incessantly while they chat with their friends, people interrogating others to see if they are ‘important enough’, people out in restaurants texting while ignoring their hosts, good manners and ‘nice’ seem to have momentarily been displaced.

But don’t fear, manners have always been in fashion, and they are coming back with a vengeance.  Nice is appreciated by people who are nice,
And increasingly by those who are tired of being spoken down to.

Nice is never really out of fashion. 

Copenhagen, December 2009

Aislin did a wonderful cartoon in the Montreal Gazette showing all the jets circling Copenhagen.

In another article we read that every Limosine in the city, and from elsewhere was booked solid for the entire period of the meetings, and were seen with their engines idling for hours to keep the inside of the car warm for the guest.

Protesters came from afar to be heard, wave their flags, and with any luck be seen on national television, but they never openly mention the fact that they also flew on jet planes and took taxis and limosines, stayed in hotels, and consumed coffees and food in restaurants, creating more garbage.

The newspapers and television reporters all had their own commentary on the state of the world and global warming, printing thousands of pages of newsprint.

Several thousand banquet meals were served over the duration of the conference, creating no end of garbage, laundering of tablecloths and napkins.

All the restaurants and hotels in Copenhagen were full, creating more garbage and laundry.

Thousands of gallons of fuel were consumed.

Another unsuccessful meeting where nothing was decided, but the participants all felt they were the ones who would make the changes in the world.

Meetings in Bali, meetings in Copenhagen, meetings all over the world to discuss “How to be Green”.

Other than a totally insane media spewing out hype about being socially and ethically responsible, whatever that means, and stop using plastic garbage bags, so that we now we pay for them, further fattening the pockets of the grocery stores by thousands of dollars weekly for a product which we need, nothing has really changed. Most people I know don’t plan to go to a store to purchase necessities, they see a store and remember that they need some items and go shopping. No one walks around during their business day with pockets stuffed with bags on the off chance that maybe they will need a few greens and milk. What a thought, a Senior Business Executive with a plastic bag
In his back pocket in case his wife calls and asks him to pick up milk and bread on the way home….!!!

People are having more children than ever, buying huge homes and cottages, buying more than one car, living further away from city centers, necessitating more driving, and having what ever the latest pet of the month is ostensibly for their children. One couple in London England, actually have the nerve to print a magazine about being green, but they are in their 20’s, have 4 children, numerous pets, several homes, and jet around the world on vacation regularly, sometimes commercial, but very often on private jets. It is about ‘do what I say, don’t do what I do’ …somehow they think their children are special.

The statistics on the family dog are actually staggering, each 30 pound dog creates the same amount of garbage as a human.

China no longer has the one child per family legislation, and there is still no push in the third world to stop over population, even though many of the people are dying of starvation.
India has a population explosion, and is growing exponentially with no discussion of limits of children per family.

A lifetime of rhetoric, and yet at the end of the day, the only thing which has truly changed is that the world population continues to explode and fanatical religious leaders are continuing to tell women to have babies, some of whom have over 10 children and are continuing to breed.

The only way to get serious is to STOP encouraging people to have children, and instead of paying women to have children, to pay them if they get sterilized. The current economic models are at fault, and to date, no one has actually come up with a model which encourages full employment and the promotion of innovation in order to reduce carbon emissions and garbage in order to clean up the planet.

It CAN be done.

It MUST be done.

We are losing our forests, our oceans, our fish, and much of our natural wildlife due to over-population and urban sprawl.

The biggest contributor of all the problems the world is facing regarding pollution, global warming and potable drinking water is that we have TOO MANY PEOPLE and TOO MANY PETS. Period.

The biggest creator of pollution are humans, followed by unneeded animals. Yes, I love animals and have had pets a good part of my life, but we are speaking reality here.

There is an arrogance among people that their children will somehow be special and change the world, but the harsh reality is that we need to start looking for new ways to grow the economy than multiplying.

Investment in cleaning rainwater, cleaning sewage, heating homes without fossil fuels, not wearing clothes made of synthetics, not using Styrofoam containers, re-cycling, re-use of car tires, cleaning of used oil products, re-cycling of products like paint, are but to name a few.

Encouraging people to live downtown and walk to work. Educating the people already on the planet, and putting them to work, instead of allowing high school drop-outs, high-school pregnancy, facilitating adoption of already existing
Children instead of making the process hideously long and arduous.

Cynical yes, fed up of being lectured to, yes, fed up of hypocrisy, absolutely.

Let’s change the economic models to stop encourage growth and encourage re-use and investment in new technologies.

Social Animals

A few months ago, I wrote about social climbers, and received some interesting feedback from some of the readers. In speaking with people, just when you think you have heard everything, someone comes up and knocks you off your feet with the latest faux-pas.

It is interesting how some people decide who is in and who is out based on their decision of whether or not they like the person or think there is something to be gained from being their friend. They ostracize people ruthlessly, spread malicious gossip, and spend an inordinate amount of time being negative towards someone, who in many cases, is not what they expected. Some of the put-downs are really quite something….telling someone that ‘you are the only one …..’ , ‘how did you get into this private club’ …, ‘who invited you?..’ as if by some feat of magic, they are the only ones in the room of any importance. The best of course, are parties where the guests are told who is being excluded, and the reasons why. One business man held a party for his single friends, and told everyone not to breathe a word about it as his rich married clients would be offended that he held a cocktail party and didn’t invite them, another businessman, who is the worst name dropper ever, actually had the audacity to hold 2 Christmas parties, one day after the other, and labelled one ‘losers night’.
The question MUST be asked, if his guests were losers, why on earth did he invite them? Word spread around the city like a brushfire, and he succeeded in offending a lot of very important people, The worst thing is, apparently he served the leftovers from one party to the guests at the second party…..and they heard about it. Did he really think people wouldn’t talk?

In one gesture, he rendered everyone speechless, and ensured that he was removed from a great number of lists himself, although he still doesn’t really understand what it is that he did wrong. He actually thinks that it was socially acceptable to humiliate his guests.

What must go through the mind of these people that somehow they actually believe that they are special? A bigger house, a better car, more money in the bank?
There is always someone better looking, more popular, richer, more connected and more. The only thing they are succeeding in doing, is making themselves lose credibility. In the eyes of their little circle of friends they may be entertaining in telling their stories, but for anyone on the outside their behaviour is acutely embarrassing. They always have a terse word about others, but they never find the time or the energy to actually find out who people are before they speak ill of them.

Life plays funny games on people, and cruelty eventually catches up . There is nothing to be gained by humiliating someone, it is not sweet, cute or even remotely entertaining.
Think about it, and think how many people are richer, better looking or more successful than you are……and think about the fact that the ugly duckling often turns into the swan. You never know where you will end up in life. The person you insulted could be the one who could ultimately save your life.

Preferred Vendors: Competition and Kickbacks

Are you the CEO or CIO of a publicly traded company?

Then you want to read this blog and think seriously about it means to you.

Over the last few years there has been a move by certain companies to reduce the number of suppliers as a way to save money and simplify the purchase process. Along the way a great number of excluded companies have seen their opportunity to propose innovative solutions decline as they have been unable to respond to “members only” RFPs (request for proposals). We have heard no end of excuses in the marketplace as to why this is a good idea. However, the reality is that it removes competition and introduces opportunities for dishonest employees to show favouritism to suppliers who claim to be offering better prices based upon ‘partnership’ or volume-based price reduction.

How can anyone determine if they are getting the best product if they are eliminating any chance for competition? Even if you manage to short-list the top ten best vendors in the market today, by tomorrow there will be another company born that offers superior solutions.

A quick review of today’s media makes evident that during the current recession there are thousands of individuals who have taken their know-how and created new opportunities. Economists recognize that start-ups and small companies are the engine that drives economic recovery and economic growth, which benefits everyone including large corporations. In a phrase, their growth is your growth. So why not include them more directly in your success?

But even more pernicious effects are resulting from the restrictive preferred vendor list and the close vendor-client relationships that ensue. A level of out–right fraud has escalated in recent years to a point where it is no longer a matter of accepting a free lunch or two. Every day one reads about another scheme where some ‘highly innovative’ individual has found a way to work around the system and walk away with substantial ill-gotten gains. There are middle level managers in large corporations who earn very average wages driving new Mercedes, owning country homes, going on lavish holidays and drinking fine bottles of wine.

And how have they arrived at this unearned lifestyle? After skilful positioning and self promotion about how they are saving the enterprise vast sums of money by reducing the number of suppliers and negotiating significant discounts, their actions are no longer scrutinized leaving them free to personally benefit in any way they can arrange. Ironically, in many cases the same companies are insisting that new employees have extensive background checks and police file verification prior to being hired.

Examples of preferred vendor policy effects and “under-the-table” transactions abound; here are just a few:

1. An approved vendor representative conducts special meetings at a strip bar where cash stuffed envelopes are dispensed to his ‘best’ clients.

2. An middle-level executive of a large corporation has an $80,0000 golf club membership, has gone cruising in the Greek Isles with his family, played golf in Florida, and is regularly taken out for lavish meals to thank him for his “patronage”. A preferred vendor list decision was made once and his employer has never questioned vendor invoices since.

3. A middle manager, after ‘streamlining’ the number of suppliers to his department, miraculously went from living in a modest home to inhabiting a million dollar mansion with an in-ground pool, period antiques, and a new Mercedes, not to mention taking amazing golf trips during the winter.

4. A multi-million dollar contract is awarded. A few days later five executives receive shipment from a local art dealer of signed, large, gilt-framed, original art work. After a week on the walls, the art, being recognized as far too valuable and obvious, is removed to the homes of the executives.

5. A handful of people in a very large multi-national have eliminated most of the suppliers to its technology initiatives, initiatives which count in the hundreds of millions of dollars. Although some middle managers question the economic benefit of such an approach, they nevertheless adhere to the ‘initiatives’ under threat of losing their jobs during the recession. No employee is willing to step forward and challenge why, in such a large corporation, with such diverse needs, they are not allowed to have contact or do business with those not on the restrictive ‘approved’ list. Kickback rumours abound, morale is low, and the department is operating well below its capability. The hidden intimidation is unethical at the very least, the threats to whistle-blowers very real, and the productivity impact incalculable.

Within the supplier community, the facts are obvious. In fact, they are openly discussed and the perpetrators well known. In many cases even the “kickback” amounts are discussed freely. The only people who seem to be totally unaware of this behaviour are executives in corporations where this behaviour occurs.

As a responsible executive you should ask yourself:

1. Is anyone in my organization guilty of this behaviour?
2. When is the last time we did a ‘lifestyle’ audit on those individuals making substantial purchasing decisions?
3. Do I believe that the new million dollar home that my employee purchased is due to an inheritance … from a rich aunt?
4. Can I really afford to have this illegal behaviour occur on my watch?

Simple First Steps (RCE)

Rotate Personnel: Individuals who make major purchasing decisions should be rotated on a regular basis. If the same people occupy these roles for too long, it is just too tempting for them to accept the gifts on offer.

Conduct Internal Audits: Unannounced, fully authorized, and executive committee supported internal audits should be SOP.

Expand the Vendor List: Open up the bidding process to more competition. The innovative ideas and cost containment may surprise you and will please your stakeholders.

“Unintended consequences” and “collateral damage” are two phases that came to this blogger’s mind when researching this article. In an era of increased regulatory oversight, think about the consequences of a corporate policy that could place you in the cross-hairs.

Copyright 2009 roslyn-on-the-go