THE ENTERPRISE
-----A SAD IRONY
The year was 1991. I was President of Huffy Bicycles and was visiting China to assess the strength of our emerging competition. While I was there, I saw a hilltop that dominated the nearby landscape. Atop that hill was a huge , impressive array of new buildings that were the Shenzhen China Bike Company's (CBC) new plant, (just outside the wall around Shenzhen city, where labor was cheaper and more plentiful). It was believed that CBC would be the most fearsome Chinese competitor of all. Note: It is the company that ultimately "crushed" Schwinn! How ironic that late last year Huffy, the reason I was in China , filed Ch. 11 and will be owned by Chinese debtors, AND very recently, it was announced that Shenzhen China Bicycle Company is facing bankruptcy as well.
I'm not sure what to conclude from this except that the bike industry seems to be a good place to be "from”--because it seems that no one in it is making much money. It is suffering from a lifestyle-change driven loss of salience and a rampant case of retailer-driven commoditization. Unfortunately, this is a fate that is not unique to the bike industry. Beware.
-----CAN'T FIND THE WORDS?
Dismayed? Appalled? Disgusted? Sad? I'm trying to find the right word to describe what seems to be happening to our country. The media creates celebrities out of poor misguided and/or grief stricken people (Cindy Sheehan, Beth Holloway and Terry Schiavo's family). The news coverage blows these events out of all proportion to their relative importance to the country, and makes these everyday people into larger than life figures. With our sadness for their plight, we have very mixed emotions about what they say and do, and how it turns into a sad and misguided debacle. Meanwhile the American public is fatigued over Iraq as the media pumps out only the bad news day after day--and none of the progress. If you can find someone who is or has been over there ask them about how different the reality is from what is being reported. Does anyone else think there is something wrong with these pictures? Our soldiers over there sure do.
-----BIG ISSUES OF THE DAY
That said, there are other things plaguing our country right now. Fortunately the US economy is chugging along in spite of record oil prices and gas prices that make even the strong wince in pain at a $40+ fill-up. It is starting to pinch! Consumers will slow down their spending--there is only so much disposable income to spend. Inflation will rear its head too. Commodity costs have risen and oil prices show no signs of abating. Most companies have raised prices (some of them several times) in the past year. Those increases are hitting the consumer level just as gas prices take a bite out of their disposable income. These factors will be a serious "speed bump" for the economy, but probably not derail it from its growth track...at least not this year.
The two more problems are both rooted in human nature and the fiercely competitive global environment we are now living in.
-----The UN Oil-for-Food Debacle .
Enough has been written about the Oil-for-Food scandal's flagrantly illegal and illicit schemes, the bribery, skimming of huge "profits" and abuse of the trust of the organization I now refer to as the "Useless Nations." Kofi Annan and many others in the UN bear the blame for the Oil-for-Food scandal. Their collaborators were such people as Saddam Hussein and our staunch non-ally, the French (with some help from the Russians). These criminals need to be punished, not retired with their ill-gotten gains. If they are not, what point is there in having laws and consequences? But then, what point is there to the United (whoops, Useless) Nations. It has lost its way and outlived much of its usefulness. President Bush's recess appointment of John Bolton may have been a last gasp attempt by the US to find someone with enough guts to force the UN to seek some return to credibility and usefulness. We'll see.
-----The 9/11 Commission's "Able Danger" Cover-up
The larger issue, which is surfacing in spite of the mainstream media's desperate attempt to ignore it, is the "Able Danger" cover-up. I thought hard about a few of the more liberal readers I have left, and what they might think about this. The legacy of the Clinton, Janet Reno, et. al. regime just gets more and more evident. "If it isn't favorable, bury it." Why did the 9/11 commission ignore this, then lie about it? More importantly, why was this critical information suppressed by the government agencies in power at the time--the Clinton Administration's people? Here is a government fiasco that may have been a direct contributor to the death of thousands of Americans on 9/11. It also caused the grief of many loved ones, the shock of a nation under attack and the loss of billions of dollars of value in country and our economy.
It is now clear that the 9/11 Commission WAS BRIEFED--on two occasions--about the findings of the Pentagon Intelligence unit known as "Able Danger". It had located and identified Mohammed Atta and two more of the terrorists that later hijacked planes on 9/11 and tried to report them to the FBI to be picked up and detained--or deported--for good reasons. It is entirely possible that this could have led to actions that would have disrupted the entire 9/11 attack. But Able Danger's efforts to alert the FBI were blocked by "government lawyers" whose identities and affiliations are conveniently unavailable.
I will resist the urge to go on further here, but here's the link to Gary Halbert's newsletter in which he covers it very well. Please go see it.
http://www.investorsinsight.com/forecasts_va_print.aspx?EditionID=175
THE BIGGEST ISSUE
-----Can America Compete? Will Americans Compete?
This final topic is one that will appear in future editions of THE ENTERPRISE. Geoffrey Colvin wrote a captivating, if disturbing article in the July 25, 2005 issue of FORTUNE, entitled, "America Isn't Ready." The questions he posed and the points he made go to the heart of the matter. Everything we read or hear is about China or India or the "outsourcing" of America.
But if America is so bad, why is the Foreign Direct investment (FDI) in the US up 25% over the prior year at $120 Billion? What do those investors see that we are missing (or the mass media is missing)? Europe is still, by far, the largest source of FDI, but emerging/developing countries' share doubled in the past year and is now at 13% of the total. Where's it going? Telcom, Heavy industry, Food Processing and Generic RX Drug manufacturing are four of the largest places. Do they see something more clearly than we do?
But back to Colvin's questions and my topic. He stated "America Isn't Ready." He's right, but there is ,much more to it. His subtitle was [Here's What To Do About It]. I am a fan of his writing and his intellect, but his "solutions"--what to do about it--were the distinctly weaker part of the article. I want to dwell on some questions he posed, and add my own question.
The headline question is not whether "America Can Compete" although that is what most seem to ask. Colvin contends it might better be stated as "Can Americans Compete?" This is a still more relevant way to ask it--one asks the ultimate headline question.
"WILL Americans Compete?--Do Americans have the desire, the will, the passion and the perseverance to compete?"
In my not-so-humble opinion, it is not just a matter of IF can we do it; it's a matter of whether we, in our comfortable, affluent and largely apathetic America lifestyle have the WILL to compete. We used to. But the question is, do we still have it, and at a sustainable level? I agree with Geoffrey Colvin. As a country, we are far from ready to compete. But if we want to get ready, can we? Will we? And will we persevere until we win?
As most managers and leaders know, "where there's a will, there's a way." BUT do we--Americans--have the will and the desire to compete against the 3 billion ambitious, hungry Chinese and Indians (a large number of which are increasingly well-educated)? That's a big subject to tackle...so stay tuned. We'll chip away at it.
Best, John
PS: For those who want a dose of reality from the "front lines", there is a lengthy, first hand report from Afghanistan attached below. It is not fiction, and it "blows away" all of the big media's mass-marketed, sensationalized hype about what our men and women on the ground over there are doing, how they feel about it, and the risks they take so we can freely exchange these kinds of emails. May God bless and watch over them.
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FROM THE FRONT LINES:
From [name deleted] via The Special Ops Assn and a "Warrior" named [name deleted].
---- "We sleep soundly in our beds because rough men stand ready in the night to visit violence to those who would do us harm" ....George Orwell
Sent: Friday, August 12, 2005 8:44 PM
Subject: Deaths of the Navy SEALS in the Afghan mountains in June
Final Update… Hello every one, I am heading home soon. Here is my final update.
Let me start by telling you that I am in excellent health and in good spirits. I apologize for not keeping you informed these last few months but our operational tempo was too high and our operational security did not allow me to share with you what missions we were conducting. When I return home I hope to sit down and write about our spring offensive here. However I will share with you that my team in Farah captured Mullah Sultan who was a mid level Taliban leader and a target that we had been searching for several months. He is still being interrogated in Afghanistan but should be making the long journey to GITMO (providing it is still open) very soon. I will be home in a couple of weeks and plan to have a party around Labor Day weekend so please mark you calendars because I would love to see you there.
This update will be extremely short but I do want to close it by telling you some insight about the SEAL Team and Night Stalker tragedy that occurred a few weeks ago. By now you have heard a lot about what happen but I really want share how significant that event was to the soldiers on the ground here and to explain in my opinion why I feel it is important that all Americans continue the fight for freedom.
Before I explain what happen to the SEALs, I want to thank you all for your prayers, emails, care packages, yard work and all the things that you did for me in my family while I have been deployed. The support from my friends and neighbors has been incredible and humbling. Your support has helped me to endure this incredibly long year and to concentrate on what I was doing here with minimum worrying about Pam and "A". Thank you all from the bottom of my heart.
The Naval Special Forces (NAVSOF) team that was involved in the operation in Kunar Province had been traveling throughout Afghanistan conducting apprehend or kill missions against Al Qaeda and Taliban operatives. They had worked with us for two weeks, three weeks before the events on June 28. While working with our teams, they attempted to take out a high value Taliban target and missed him by hours. This operation was conducted in the Zerico Valley, which has been one of our hot spots. We provided the outer ring security for the SEALs with Afghan National Army soldiers and ETTs while the SEALs conducted the compound assault. We missed the big target but did get some mid level guys so the mission was not a total bust. The NAVSOF guys are the best of the best, not cocky simply professionals in every way, we call them operators.
On June 28 a four man SEAL reconnaissance team was trying to locate Taliban in the dense mountainous and forested area of the Kunar Province of Afghanistan. They were trying to identify routes that the bad guys use to enter from Pakistan. The targeting information would be used to direct U.S. and Afghan forces who would interdict and destroy those enemy forces.
The SEALs were spotted and engaged by a large force of Taliban some where between 25-50 insurgents. The Taliban who are still alive and fighting in Afghanistan are very good combatants. Unlike Iraq Arabs, they are not suicidal and they use good small unit tactics. The bad guys used Rocket Propel Grenades (RPGs), mortars and small arms to attack the SEALs. The team set up a 360-degree defense and called in Hornet Nest (troops in contact) back to their operational base. The command and control headquarters for U.S. Forces in Afghanistan moved a Predator unmanned drone over the battle location. The SEALs were located by the predator by their locator beacon and the inferred camera system of the drone.
The headquarters could see that the TEAM was encircled by bad guys and that the enemy was too close to the SEALs to use Air force close air support. A weather front was rapidly coming into the area and the SEAL Commander a Lieutenant Commander ask permission to launch his quick reaction force to go rescue his men.
The commander of TF 160th (the Night Stalkers) agreed to fly the mission. The Night Stalkers are the Army's Special Operations air wing. They specialize in high-risk insertion and extraction at night. It was not nightfall yet and the command hesitated because sending the special operation birds into the area in the light was very risky. The Generals look at the screen that was giving a live feed of the fire fight, they saw that the SEALs were surrounded, they did not see a way for them to escape, a weather front was coming, it was dusk but not dark yet and time for the trapped men was running out.
Leadership requires having the guts to make a decision, based on analysis and forethought. You must totally recognize the risk and be ready to accept the results. The general in charge made the right call, he had to try to rescue the operators, we as American soldiers cannot leave our people on the battlefield, every Airman, Marine, Sailor, Coast Guardsmen and Soldier has to know that when you go down range and things go wrong keep fighting and help will come.
The decision was made, two CH 47 Pave Hawk helicopters headed toward the SEALs. The CH 47 is a large aircraft but it is fast for a helicopter, able to fly at 170 knots. The aircraft entered the mountains flying at 50 feet above the ground with 16 men aboard. All four SEALs were still alive and fighting an unbelievable battle. As the lead bird approached the landing zone they started to slow down and the air speed dropped under 100 Knots, another group of Taliban, not engaged in the initial firefight but in the area saw the aircraft and open fire with small arms and RPG's. The lead aircraft was hit by a RPG but the aviator kept the bird in the air. They were in the mountains; therefore there was no clear place to land. He flew for about a mile and saw a ledge that he could try to put the bird down on. The CH 47 landed on the ledge hard, they almost made it. The hard landing and the palpitations of the rotors were too much for the small landing zone and weak ground. It was their time, the aircraft rolled off of the ledge on to its side and down the mountain into the valley below. 8 SEALs and 8 aviators from TF 160th were gone.
The other aircraft could not land in the hot landing zone and were called back. There was not enough time to try to secure the area because the weather front moved in and nightfall fell. The SEALs kept fighting and used the cover of darkness to crawl out of the initial enemy lines. The SEALs were engaged again and had a running gun battle for over two hours. The SEAL that survived was knocked unconscious by a mortar round and found that he was alone when he woke up. Two of his team members were dead close by, and the last team member was missing.
They had dropped all none essential gear during their escape therefore all contact with them was lost. Eventually the surviving SEAL ran into a villager who took him to his house. That shepherd, at great risk to himself, protected the SEAL until he could be moved six hours away to the nearest U.S. forces that the villager was aware of.
The loss of the operators really broke the hearts of all us deployed down range. Losing men of that quality and dedication is bad enough one at a time, but to lose so many, so fast was hard to comprehend. But after the shock had worn off and we got the true story of what happen we took solace.
You see every one did what they supposed to on that day, the SEAL recon team kept fighting, the SEAL commander went to get his shipmates, the Night Stalkers volunteered to fly in to harms way to rescue their brothers in arms and the generals had the guts to make the right decision. That is all you can ask for out here, it is what it is and everything else is God's will.
I have had the pleasure of serving with some unbelievable men and woman in the last year. Folks from 18 to 59 (yes 59). It has been an honor. I really appreciated America before I came to Afghanistan but this experience has truly opened my eyes to how bless my life has been.
Folks I know this is a cliché, but freedom is not free.
Embrace it, respect it and don't ever stop fighting for it. These people over here are far from free, but we have given them a taste of it. We need to ensure that we don't give up the fight because to do so would be to dishonor all the men and woman who have died to ensure we remain free. Freedom is contagious, with it, out goes tyranny. The evil people that attacked America on September 11th were not free because if they were, they would not have cared what another's person's beliefs are they would simply accept them for what they are and moved on.
Please continue to pray for all the soldiers in Afghanistan and Iraq, don't stop praying for me because I am still here, and your prayers have been working so keep it up, I don't to mess up a good thing.
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