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the examiner Friday Dec 1979 Consultin fit rbusinesso eration Management planning gives direction By ALISON MERKEL Of The Examiner Im certain that MBO will be the key to small business success in the future So says Les Cooke speaking of the critical problems that beset businessmen as we near the end of the 1970s Typically Cooke doesnt stop to reflect at length on the problems he is too busy working on the solutions WI1114 Newbury Transport and Supplies is the most re cent acquisition of Cooke Cartage and Storage Ltd An international business whose potential has been described as based on problem solv ing Newbury has been Canadas largest flower Cooke started out in the depression four decades ago cutting ice on Lake Simcoe and hauling pianos through second story win dows Today he is chairman of the board of Cooke Cartage and storage Ltd successful business complex operating internationally He is also dedicated missionary for the principal of Management by Objectives or MBO Government continues payment Bilingual workers get bonus OTTAWA CP The federal government will continue to pay bonus to public servants required to be bilingual although many of these em expense ment ployees do not use second language learned at taxpayers Sources within the and Public Service employees govern Future of newspapers unsettled no firmbid TORONTO CP The future of PP Publications Ltd remained unsettled Wednesday as financier C0nrad Black contin ued his pursuit of majority ownership in the countrywide newspaper group Arrnagh Price daughter of Victor Sifton whose family trust owns 225 per cent of PP stock confirmed Wednesday that talks regarding possible takeover of the group have continued but no firm bid had been made By RALPH ALEXANDER Dear Sir As am nearing retirement and will soon have to live on fixed income am very concerned about the level of inflation At present note that based on the Consumer Price Index in the United States hope to retire to Florida prices are rising at rate of about 12 per cent annually In Canada the Consumer Price Index is increasing at about 10 per cent annually While these rates seem high believe could survive that level of inflation However as these rates are provided by the governments and the politicians have vested interest in things looking better than they really are am skeptical of the accuracy of these figures Is it possible that these figures are understating inflation WS Dear gt think your skepticism towards governmentproduced statistics is very healthy attitude However in certain cir cumstances politicians have an interest in things appearing worse than they really are At present the Consumer Price indexes in North America are substantially overstating the rate of inflation While dont believe the books are being deliberate cooked in neither the US nor Canada is the government attempting to explain this overstatement to the public In both the US and Canada the federal governments have designated inflation as public enemy No and if inflation is overstated it helps them to persuade the public to accept whatever sacrifices they are asked to make in the battle against inflation The Consumer Price Index CPI is based upon the assumption that hypothetical average citizen purchases each month fixed basket of goods and services These include housing cars food clothing travel and others The amount of each com nent is assumed to remain constant rega less of the price In other words if it is assumed that Mrs Average Citizen buys 10 lbs of beef and lbs of pork the calculations will be made based on those volumes even if It was learned Friday that Black chairman of the powerful Argus Corp Ltd of Toronto as well as honorary chairman and principal shareholder of Sterling News apers Ltd of Vancouver is considering bi for interest in the FP group which publishes eight news papers Ottawa Journal Toronto Globe and Mail Vancouver Sun Winnipeg Free Press Calgary Albertan Lethbridge Herald Victoria Colonist and Victoria Times Dollars and Sense CPl overstates rate of inflation Alliance of Canada bargaining government said Wednesday cabinet has agreed that the swoavear bonus will be ex beet increases substantially in price one month and pork decreases Suddenly Mrs Average doesnt sound so average to me any more In reality if the price of one item in creases dramatically shopper will decrease the purchase of that item and in crease the purchase of something that has increased less or even decreased Therefore unless prices are increasing across the board the CPI will overstate the price increase in the monthly cost to feed amily The CPI is calculating that the average Citizen will purchase car of given size and purchase gallons of gasoline month These amounts were establish in 1901 when the basket was last revised The substantial increases in gasoline prices since then have lead people very rational ly to purchase smaller cars and drive fewer miles As result they are purchasing less gasoline The CPI does not take this in to account and therefore overstates infla tion The factor in the CPI currently leading to the greatest overstatement in the inflation is mortgage interest rates The CPI is calculated on the ridiculous assumption that each month Mr Citizen purchases house and finances it at current mortgage rates When mortgage rates are increasing as rapidly as they have recently this leads to huge increase in the CPI In October the US CPI indicated an inflation rate of 12 per cent Of this amount almost per cent was due to the increase in mortgage interest rates Of course all these factors work both ways During 1960 beef prices will likely fall as they usually do during recession and mortgage rates will drop dramatically The CPI wil fall very impressively in time for Jimmy Carter to get reelected and Joe Clark to brag about in case of fall 1980 election Inflation will continue to be long term problem but at the moment it is not as bad as advertised Kn emphatically decisive man he gathers facts analyzes and acts In this way he found himself resigning from his own firm at the age of 50 Premature retirement was natural response to this from some sectors Make room was Les Cookes reasoning He envisioned the younger management waiting around for me to get out of the way and plant trucker for the past ten years These highly specialized carriers transport citrus fruit cargoes and return to the south with less per ishable commodities such as Christmas trees Examiner Photo tended beyond Dec 31 likely until 1983 Walter Baker revenue minis ter and government House leader described the bonus last year as discriminatory wasteful and wrong in prin ciple Other Progressive Con servative MPs also attacked the Liberals for introducing the bonus but have changed their attitude Perrin Beatty minister re sponsible for public service bili ngualism was to make an offi cial announcement this week on continuation of the bonus the sources said The previous Liberal govern ment had first promised to pay the bonus until 1983 but last year in costcutting measure announced it would end March 31 1979 Some public servants threat ened to speak only one lan guage on the job during the election campaign so the gov ernment extended the bonus un til Dec 31 1979 About 47000 government em ployees receive the bonus cost ing the government $38 million annually The results have been good there is four times the energy and the company is twice the size today as result he says OPENED ANOTHER DOOR Resi nation opened another door for Cooke Today carries what he believes to be win ning formula MBO to small and medium sized companies People get into direction and they get cemented there they get caught Cooke analyzed this penomen as major in hibiting factor in business success and resonded by forming new operaton LECA LECA stands for LE Cooke and Associates and functions as managment consulting firm to small and mediumsized business opera tions Cooke defines the company size as representing perhaps 40 to 100 employees LECA brings the principals of management by objectives to beac on the problems of the client MBO is used by some of the outstanding orporations But the consultants available to large corporations would be too expensive for smaller business Cooke says Management by objectives is future focused concept by which managers and cor porations tke the resources for which they have res nsibility and achieve pre determin results Cooke states It is setting co orate goals to use precious resources ysical and human to achieve the highest and best use SEVERAL RESOURCES He says that resources include personnel money and energy Objectives include stan dards of service profit goals and the develop ment of potential in the personnel both as part of the business and in their own personal fulfillment Asked what would be the opposite of management by objective Cooke replied management by reaction primary step in M80 is situational analysis Cooke directs managements at tention to what we have and where we are today The strengths and weaknesses of that posi tion are examined critically Then attention moves to the future Boobyprize toy winners WASHINGTON AP Toys being sold this Christmas season include goo that might ruin rugs and furniture racetrack that will take parents eight hours to assemble and music machine that makes no music consumer group says These are among the toys awarded booby prizes Wednesday by the Consumer Affairs Committee of Americans for Democratic Action in its annual toy ratings The group singled out smaller number of toys for praise Some of the toys arent worth buying said Ann Brown head of the committee She said the selections were based on safety good play value realistic packaging and ad vertising sturdiness and durability Children of various ages were given the toys to see their reactions There was no immediate response from the makers of the toys that were criticized Among toys criticized were The Ork Egg by Mattel retailing for $1 to $2 This is slimy substance contained in an egglike container the consumer group said in report You could end up ruining your floors your furniture your hair and your clothing it said of the substance HARD TO ASSEMBLE Raceway Pit Stop 812 by Brumberger selling for $10 to $15 This is one of those toys that is likely to strike terror into the heart of any parent who is forced to put it together the re rt said There are seemingly hundr of white plastic parts whole package of tiny nuts and bolts which would probably scare anybody who isnt mechanic another package of numerous steel pins and many sizes of steel rods Disney Mickey Mouse Music Machine by FJ Strauss CoStrasco selling for less than Topping oft Workers place the final sections of structural steel for the new Ford engine plant at Windsor The $533 million plant now 35 per cent com plete will begin producing Fords new fuelefficient V6 engines in April l98i Together with new $44 million aluminum casting plant being con structed nearby total of 2800 new jobs are being created This is where we could and or should go The opportunities and threats in projected ac tion are analyzed Cooke says It is necessary to have definite sense of purpose to know where your priorities are LECAC functions in manner that can be utilized by profit and nonprofit organiza tions About every five years company is liable to revise its goals and objectives Cooke Cartage and Storage is an excellent example of operation by MBO Not even the casual visitor to the com panys offices can be unaware that there is string sense of direction Statement of Pur pose is placed on the front desk to greet every visitor AWARE OF DIRECTION basic principal of MBO is that manage ment employee and customer should all be aware of what the direction is and why Cooke Cartage and Storage delineate aims of best possible service at lowest possible cost while insuring fair return on capital invest ment and continuation of the business Their statement also asserts that each person employed by the firm should be properly compensated for meaningful work share the responsibility and profits The statement includes the aim to provide opportunity for personal growth and achieve ment of our people The final section deals with community Cooke notes that the companys thrust is not complete without becoming good cor porate citizens at all levels of community He says that the Cooke Cartage firm has not always been quiet or uiescenl in respect to government One the firms newlystated objectives is to make represen tation to government in such fields as transportation and safety He defines this kind of action as cor nerstone of M80 Being other directed might describe large part of management by objective This is also demonstrated in Les Cookes at titude toward what qualities he would look for in job applicant Before look for qualities have sense of no limitations dont think there is anybody who is fullydeveloped look at anybody coming in the door He may be an Abraham Lincoln or Winston Churchill want to break down my prejudices But one thing if you want to benefit youve got to give If someone doesnt think that want to unhook pretty fast Cooke Cartage and Storage Ltd which this year acquired Dell the Mover Ltd and Newbury Transport and Supplies has had program of prof itsharing since 1976 M80 is utilized in each of these operations with quality performance training of personel fully integrated business notes Apartment opening The grand opening of Sunnidale Place classified as luxury rental apartment homes is to take place Saturday from 11 am to pm Sunnidale Place is located at 12 Kozlov Street in Barrie The building will be located close to two malls Bayfield and Georgian and there is easy access to Highways 400 and 27 There is adequate underground parking available along with two raw cedar saunas and landscaped recreational park McDonalds sale The owners of the McDonalds Restaurants in Barrie Midland and Orillia Mr and Mrs Ted Gorski announce that the three restaurants have been sold effective Dec to McDonalds Restaurants of Canada Ltd The couple were among the first licensees in Ontario eight years ago and have been involved in the expansion of McDonalds Restaurants in Simcoe County and Ontario press release says the couple will seek new challenges where they can put to work the management skills acquired in running their own successful business McDonalds Restaurants of Canada Ltd will emplc existing staff at the three locations the release says and no interrup tion of business is expected to take place during the changeover of ownership Majority find jobs About 84 per cent of all older workers who register with Golden Opportunities Employment Agency find jobs says Harold Small coordinator of the agency Once job order is placed with the agen Another look By DOUGLAS GREENWOOD Its occurred to me that maybe should try to explain why always seem to be agin the government Why for example am against all those things that seem to be on the side of the angels Things for example that are called Equal Rights environmental pro tection occupational safety metrication antiracism foreign aid Welfarism price controls wage controls excess profit whatever that is laws government grants truthinadvertising town planning seatbelt laws consumer protection the United Na tions big unions big government and so on and on And on Call them Judas goats What you ask is wrong with all those things What do you want to do you may ask me go back to the days when children work ed in factories from dawn to dusk Put people in the workhouse if they dont have any money Is that what you want may be ask ed No of course dont What sort of red neck Neanderthal reactionary extreme rightist etc are you May splutter the lib left doctor of philosophy from the hallowed depths of his MarxistFabianistKantian NietzcheistGalbraithianKeynesian book lined campus sanctum Or from the progressive politicians platform may come the same questions in more resounding oceans of demagogic rhetoric Or What are you some kind of fascist capitalist lackey oppressor of the workers May shout the pickeeline thug Exactly or yea how about that challenges the cocktailparty or the barroom politician BOTTOM LINE All right Let me tell you The bottom line is Because essentially all those things am against are part of deliberate attempt to br ing about the final downfall and virtual ex tinction of civilization from the face of the earth All right hold it Hold it It sounds crazy But told on it was the bottom line Now let me add the explanations as any good ac countant does in footnotes to his balance sheet that shows an apparently crazy figure For start wouldnt be against any of those controls and pieces of legislated protec tionism if they were merely exam es of er rors of political and economic ju gment If they were just weIImeaning mistakes If thats all they were you see it wouldnt be long before their restrictive nature would be seen as worse than the ill they purported tc cure Not only that theyre mostly not even necessary in the first place For example do cy agency workers consult their tile or registered applicants to compare that ap plicants skills and abilities with the skills and abilities required by the job order After selecting the client the client is phoned to determine if they are able and willing to fill thejob order If willing and able an interview is ar ranged between the employer and the pro posed client After successful interview the client begins to work The agency funded by the Canadian Employment and Immigraton Department and sponsored by the Greater Barrie Chamber of Commerce was opened Oct 26 1977 Earn excess revenues From the Ottawa Bureau Of The Examiner OTTAWA The AntiInflation Board has released its final report and cited almost 800 Canadian companies for earning excess revenues during the life of the wage and price control program The board claims that the companies col lected total of $19 billion in apparent ex cess revenues but trimmed that figure to $521 million after allowable deductions over the control period from Oct 14 1975 to last April 30 Companies listed by the board for earning excess revenues in the Barrie area included Kaufman Furniture Collingwood Ltd MansfieldDenman General Co CR Snelgrove Co Ltd HayesDana Ltd and the Collingwood Real Estate Corp The board did not divulge the amount by which the companies exceeded the guidelines Board administrators claim that total of $3231 million in excess revenue was retum ed to the marketplace through various com binatons of price reductions consumer rebates and cost absorption Whats really behind government controls you really suppose children would still be slaves in the West if it hadnt been for child labor laws Nonsense For the same reason that any enterprising man with capital would soon have seen the profit to be made by in creasing wages and building nice houses for workers to live in and then cutting working hours to allow more time for workers to spend money and buy shiny new cars toasters washing machines and so on But starting about 200 years ago or earlier deadly sickness of antihumanism took hold of small group of men it was call ed Illuminism It soon spread and took on other forms of antimankind such as Marx ism Fabianism Socialism Babouvism Syn dicalism and so on It as even responsible for the terror of the French Revolution and now the holocaust of Communist Cambodia among other bloodseas of horror Under the guise of compassionate causes this psychosis of Mattoidism its clinical name set out to erase mankind from the face of the earth by first creating prisoncamp of total govern ment until the soul and spirit of mankind died to be followed by his physical death Even though the planners of this Satanic thats the word for it apocalypse perish themselves that was their real aim ALL ON RECORD Where do get this crazy stuff from Well believe it or not its all on record Murder will out you know For example in 1789 Babeuf Reign of Terror leader said of the final cataclysm he envisaged One can die happily after witnessing it He also worked out plan whereby phony food shortage would allow the government to seize total control Substitute food for energy and ouve got modern rerun of an old plot An if you think thats going back into dead history Ill tell you what Dr Ralph Audy of the Sierra Club said recently Hes top member of that powerful outfit it prefers that mosquitoes and snale darters live even if man should die It wields mighty 0power in legislatures He said Man is viousl some kind of planetary disease and inference must therefore be eradicated from the face of the earth And by the way ask yourself how come identical Judas goats of protectionist legislation come to be enacted by all the dif ferent gavernments in the West Somebody is ifiure pulling strings no matter who you vote or Got to stop ce But you see what mean Scary say But hope you begin to see that its not me thats agin the human race