Archives – Apr-Jun 2008

The Evolving Game

Keith TanakaLikening himself to the statue of King Kamehameha, Keith Tanaka of downtown’s Roots and Relics stands outside his shop greeting people, six days a week. However, he is a far shot from being as serious and unchanging as his bronze counterpart fronting the old Judiciary building. With a good-natured laugh and lots of smiles, Tanaka has become a friendly icon of the local golfer’s community, and his shop has offered new and used clubs to eager golfers for years. This local boy from the Makiki- Manoa area had his away-from-home experiences first in Ohio, then San Diego, Washington, and then London for law school. He returned to Honolulu to work in the attorney general’s office, but after 18 years of local law he made the change. “I’ve never been the adversarial type of guy,” smiles Tanaka. Roots and Relics started as a way to sell unwanted items lying around the house and first opened in 1989. With no more than 300 sq. ft. to occupy, Tanaka’s original second-floor Queen’s Plaza location was small and often, empty. Tanaka remembers the days of sitting and reading books, waiting long hours for customers to appear. “I’d have days when no one would walk in and I’d ask myself a lot of questions like, ‘What are you gonna do?!’ He used to hang a “Will Return At” clock on his door, but found no one waiting after his lengthy breaks. These days, the man who got into golf so he could play more golf, craves free time. Laughing, he continues, “There’s no way I could take a lunch break now.” In the beginning, he was a frustrated novice golfer looking for equipment to improve his game. “I discovered there were a lot of people like me!” He started concentrating on old clubs in people’s garages. He found an especially good market with Japanese visitors who wanted American clubs from the 1950s and 1960s like the ones used by golf tour generators such as Jack Nicklaus. Before long, local tour guides were bringing their Japanese tours to check out his store. Inevitably, the golf game continued to evolve and so did Tanaka’s business. “At that time, nothing changed in golf,” Tanaka recalls. “Maybe the coloration (of the clubs) but there was hardly any technical advancement. All of a sudden, the technology changed from wood to metals.” As golf gear grew more and more specialized, new equipment sales became essential. While change can serve as a challenging obstacle for many, Tanaka embraced it. “The key to business,” he says, “is having the flexibility to keep up with the times.” Even big- name companies could have used his advice. “Popular manufacturers from the ’40s through the ’70s fell by the wayside because their products were only for the ‘serious’ golfer and they wouldn’t change. But, most of the golfers out there are just hackers. They’re not out there trying to get on a tour.” Recognizing the golfer’s need to constantly search for the next best thing, Tanaka enjoys helping pros and hackers alike find their “holy grail,” either with a new purchase or a trade-in upgrade. Without hesitance, the Roots and Relics owner deems meeting customers as his favorite thing about doing business, “from the guys who spend three-to-four hours inside, touching every club and talking about the old days, to the kids who have never golfed before and it’s like they’re walking into a museum.” His advice to novice golfers out there? “Have fun and don’t get so upset and serious about it. It’s supposed to be a recreation!” And where would he be, of course, if not in front of his shop on the corner of Merchant Street? “Playing on the PGA tour — I could be last on the PGA tour, I don’t care!”

The Death of Champagne

Wine RecommendationsThe price for a nice bottle of champagne these days is absolutely outlandish. Designer names, the strength of the Euro, and the general snobbery of the wine business have all contributed to even pedestrian champagne running around $30. If you plan on drinking the bubbly at a restaurant, you might want to bring an extra credit card. Not to worry, your savior has arrived: non-champagne champagne. Official champagne is the stuff from the champagne region in northern France, complete with the name recognition of Veuve Clicquot, Moet & Chandon and Cristal, and the requisite price hike involved. In order to receive the same quality for a fraction of the price, one need only to look toward Spain, Italy, and yes, even California. Among the wine cognoscenti, Spain is a go-to region for all types of quality vino. Sparkling Spain, called cava, is one of the best values in wine showbiz. Cava is created using a host of grape varieties not easily pronounced by even the most knowledgeable sommelier. Grapes like parallada, macabeo and xarel-lo are blended and vinified in an identical manner to true champagne. The result is a wine with a very similar taste profile to the French version; with a touch more forward fruit on the palate and a lot more cash in staying in your wallet. A café in northern Italy, even at noon, would appear naked without bottles of prosecco dancing everywhere. This delightful, semi-sparkling (frizzante) wine named after the grape quickly becomes a favorite for even the most veteran wine snob. The flavors of prosecco are reminiscent of green apples and white peaches, creating an addictive alternative to the stoic champagne.Italy’s second contribution to the bubbly revolution is moscato d’Asti. As with prosecco, moscato d’Asti is frizzante and created differently than champagne. Its uniqueness, however, stems from a certain cream soda sweetness that has been described as “crack for young women.” This fluffy candy has caused more than one moscato virgin to swoon like she was just asked to the prom by Mr. Popular. Both prosecco and moscato d’Asti have amazingly low alcohol content (some as low as 7%). Finally, California throws its hat into the ring with champagnemethod sparklers that rival the best in the world. Akin to Spain, these warmer climate versions lessen the earthy biscuit aromas and maximize fruit character, qualities appreciated by young wine drinkers. Many famous champagne producers have purchased property in California for the purposes of producing New World bubbles. The result is high quality without the high price tag.

6-8 Glasses a Day

Dr. Shiu reccomends more waterGrowing up, we were told that we needed at least six-to-eight glasses of water a day to keep our bodies healthy and doctors have not changed that recommendation for as long as I can remember. But, the question that comes to me is a concern for many. Is that really enough water for my body? This rule of six-to-eight glasses a day would be great if we were all the same. However, everyone has a different body type. A child will definitely need less water than an adult. Therefore, the best rule of thumb to follow is this: people should drink according to their body weight. For every 50 pounds, a person weighs, one liter of water (approximately four and one quarter cups per liter) should be consumed. Given this, an average person weighing around 200 pounds will want to drink one gallon of water. Keeping urine a light-colored yellow is a good indicator of hydration. Thirst is your body’s final indication that it needs water. When we are born, our body is comprised of approximately 90 percent water, but over time, our bodies lose about 20 percent of that initial amount. As we go through the daily grind of breathing, urinating, sweating and bowel movements, we lose water and look for something to quench our thirst. For everyday drinks we choose coffee, sports drinks, sodas, alcohol, juices, and teas as alternatives. Unfortunately, most of these choices are not the best for our bodies. Coffees and teas can act as diuretics and actually cause the loss of more water. As for sports drinks, they build up higher levels of sugar that most of our bodies do not need. Sodas also induce high levels of sugar, and because of the carbonation, they prevent proper hydration. An elevated sugar level releases a surge of insulin, which makes us feel tired. In the United States, 75 percent of people are chronically dehydrated. Many ailments can arise when a person loses one-to-two percent of their water body weight, such as fatigue and slower critical thinking, etc. Water is the body’s most important nutrient and we need to keep properly hydrated to perform our best. Drinking water is also a great way to rid the body of metabolic wastes. A high level of metabolic wastes can lead to premature aging. To keep yourself productive throughout the workday, stay hydrated by having a 16 ounce bottle of water with you at all times (two 16 ounce bottles = 1 quart). You should be urinating at least every two-to-three hours and be monitoring the color of your urine. Symptoms of DehydrationAs for athletes, make a schedule and drink accordingly. You can weigh yourself before and after an event to approximate your water loss (16 ounce of water/pound lost). Don’t use thirst as a reminder to drink because as your body ages, it loses its ability to sense dehydration. If you are still unsure of how much water you should be drinking or have problems due to a medical condition, contact your doctor or dietician. They can assist in determining the correct amount for you. Drinking water is something that is easy to do and can prevent many ailments that may be mistaken for a different cause. If you know you don’t drink enough water, try increasing by a liter and see what it can do for your body and your mind. Why would you want to pass up something practically free that’s going to keep your body working and functioning efficiently?

Management

Mike Hulser and daughter Jessica - The Biz MDIn our first editorial, which appeared in the last issue, we summarized the “focus points” of Driving Business Results, the first of which was “management.” We will explore management more fully in this issue.

The MONEY Business

Management must clearly understand that, regardless of what business it is in, it is in “The MONEY Business.” Whether a for-profit, a nonprofit, a sports franchise or a branch of the military, it is always about the MONEY. The organization continues to exist and pursue its mission if it is able to attract, secure, or earn at least enough MONEY to cover its operating expenses. MONEY is the fuel that an organization “burns” as it operates.

Profit and Cash Flow

These are the primary measures of MONEY for the business, therefore Management must understand that these are the primary objectives —to earn a profit and generate cash. Everything the business does—every program, key initiative, investment, etc.—must be focused on or “linkable to” driving profit and cash flow.

Responsibility

Management must understand that it is fully responsible for the results of the business. Poor business results cannot be blamed on competitors, the government, the economy, the weather, the employees, etc. When things are not going well, the first place management needs to look is in the mirror. That is where the problem is.

Alignment

Management must be aligned, period. There can be only one plan and it must be “owned” by every single member of management. Each manager must personally buy into “making the plan come true”. A key to driving this management alignment, of course, is making sure that all members are invited to participate in the shaping of the plan. All voices need to be heard, all options evaluated. Vigorous debate is encouraged. In the end, however —there is only one plan—and each manager is expected to work hard to make the Plan successful. No spectators. No “I told you so(s).”

Decision Making

Many times I have seen small businesses grow to what I call the “tipping point,” the point at which the owner or top manager cannot stay on top of all the issues and make all the key decisions, and then the performance of the business begins to decline because the rest of management is not equipped to “make decisions”. Managers must be expected to make decisions – to gather the facts, solicit inputs, weigh the pros and cons and “lay it all on the line”. People who cannot do this, particularly after a degree of attempted development, cannot serve as managers.

Process

Superior business results will be tough to achieve if the business does not employ an effective “Management Process”. By this I mean “who in management comes together and how often, to review what facts and data as to the operating status of the business and make key decisions.” We suggest a weekly management process with the “Management Whole Brain” (all key functions represented, all the players required to make key decisions) in attendance, utilizing a screen of key metrics (the subject of a future editorial). The keys to effective management— The MONEY Business, Responsibility, Alignment, Decision- Making and Process. Employ them and your business will have a better chance of “getting results.”

Scientific 3P Success

Dustin ShindoPassion, performance and persistence! In other words, the 3 P’s, is what Dustin Shindo uses to describe himself. “Passion because I believe in what I’m doing. I have to for it to be worth all the sacrifice. Performance because I have to deliver the results, and persistence to overcome the hurdles, never giving up,” explains Shindo. “Though while growing up I believe my mom called it hard headedness,” he states with a laugh. Dustin is the chairman and CEO of Hoku Scientific, an energy technology company. While the original focus of Hoku had been on fuel cells, the company has moved into solar installations and is also in the process of developing a polysilicon plant in which they will manufacture polysilicon, the raw materials used to make solar modules. The manufacturing plant is being built in Idaho and is projected to cost $400 million. Even though this will be brand new at Hoku, Shindo says that they already have customers with contracts totaling $1.6 billion. Plans for completion are scheduled for 2009, with its first order shipped in the first half of the year. “Generally speaking, work is my life.” In last year alone Shindo flew more than 400-thousand miles, being away from his family for weeks at a time. “There’s an incredible amount of sacrifice that goes into being an entrepreneur. You have to really invest yourself in your business.” Shindo founded Hoku Scientific with a team of people back in 2001 and went public in 2005. He is proud to say that despite all the changes that Hoku’s has been through, the company still has the same executive team since the IPO. Shindo says that the company has a “family business meets Silicon Valley feel.” Even though Hoku is a publicly traded company, and has offices in two states, Shindo describes it as a very unique business culture. “The people I’ve been able to work with are a large part of the company’s success,” Shindo adds. Recently Hoku scientific moved from Kalihi to Kapolei and all the workers helped out in the move. “We worked our jobs until 10 P.M., then from 10 until 2 we helped move. Everyone from assistants to PhDs.”
“I’ve committed all of myself to build this company.” In last year alone Shindo flew over 400 thousand miles, being away from his family for weeks at a time. “There’s an incredible amount of sacrifice that goes into being an entrepreneur.
Team building and helping the community are definitely a part of Hoku. They have car wash days, cannedfood drives and even managed a Relay for Life at the University of Hawaii to raise money for cancer research and support services. Also, when Hoku went public, Shindo and the executive team decided to give shares to the University of Hawaii Foundation as well as the Entrepreneurs Foundation of Hawaii. Shindo says that his past experiences helped teach him many lessons that he applies to the business today. Shindo was born and raised on the Big Island of Hawaii where his family owned a soda distribution company out of Hilo. “My parents used to make me work on Sunday mornings when all my friends were sleeping,” he comments. The hard working values of his parents paid off. At age 21, Shindo opened his own beer brewing company, Mehana Brewing Company. Since then Mehana Brewing Company has turned into a family business and Shindo is listed as the president, yet with little extra time, is not an active participant. He also helped found the medical device company Kai Sensors, where he is the Chairman of the Board. Shindo says of his business enterprises that even though a lot of people are supportive, there are more that doubt, and overcoming that doubt was a big hurdle for him. When Dustin does manage to get some downtime, he spends it with his wife Jamie and 15-month old daughter, Brooke. “Jamie is very understanding of my schedule and that really helps out a lot. Brooke is also supportive, but since she’s only 15-months old, she doesn’t miss me yet. I like to spend time with them whenever I can,” adds Dustin.

Where there is vision, there is development

ccamp-250.pngFrom teenage runaway to President and CEO of Avalon Development Company, Christine Camp’s story is one of vision and development. “I was very lucky,” says Ms. Camp with a bright genuine smile. “I was able to do something with the opportunities I was given.” Christine Camp was 15-years old when she ran away from home. Living in the poorest of conditions, she rented a small room that didn’t even have hot water for about $175 a month. It was the bottom of the economic social cycle. She worked three jobs while still cheerleading at her high school. Though Camp had to endure many hardships, she accredits this experience for teaching her the biggest lesson of her life. “I started to really appreciate hard work. Being faced with a lack of opportunity makes you work harder than ever, promising yourself you will never forget these people.” At the young age of 17, Christine started her career in real estate with a developer who was willing to teach her everything about the business. Ms. Camp always carried the vision of starting her own company; but she explains that she used to feel inferior to others who had gone to college full time when she was only going part time – not to mention being a woman in an industry where the majority is male. “I realized I was just as good if not better.” Christine says that when you are young, your greatest enemy seems to be yourself. ” It’s about building your confidence and giving it all you got.” Finally, she had proven to herself that she could do it on her own. She was standing with the best of the best in the industry knowing more about the unique Hawaiian real-estate market than most. Now in the ninth year of business at Avalon, Ms. Camp is still pushing herself to do her best. Avalon’s focus areas are brokerage, market and financial consulting for land development, and existing property redevelopment, or conversions. Currently, the company has about 100-million dollars worth of projects. Camp starts her day around 7 a.m. and ends around 8 p.m. From 7 a.m. -5 p.m. is the “face to face” time; acquiring partners, phone calls and meetings, and building good relationships. Between 5 p.m. – 8 p.m. is what she describes as her thinking time. That’s when she gets her correspondence and paperwork done. “It’s my quiet time, when I get to put it all together, and it’s quite enjoyable.”
“They all saw something in me, they believed in me. I didn’t want to let them down.” How she gives back to the community is also a way of reaching out to people who are in similar situations she used to be in.
The biggest challenge in business Ms. Camp says, is communicating her vision. “I never knew it would be so tough. When I was younger I just thought can’t you see it! Now I realize the importance of communicating my vision so that the other person can see it and feel it.” Having already established her business, Christine spends a lot of time building up her managers and getting them to understand that vision. Explaining that you have to be a salesperson selling that personal vision to partners, investors and even your employees. Currently, Christine Camp sits on 11 different boards, spends a third of her time in community service, and runs her company. Throughout her career Ms. Camp has also insisted on mentoring interns. Mentoring up-and-comers in the field is her way of paying it forward. “I know what an impact it can have.” Ms. Camp gives a lot of credit to the mentors that took her under their wings. “They all saw something in me; they believed in me. I didn’t want to let them down.” How she gives back to the community is also a way of reaching out to people who are in similar situations that she used to be in. She donates to a lot of places like Goodwill where she was a former customer. Exuding confidence and happiness, Christine Camp shares a quote that truly embodies the driving force in her life, “All I need is an opportunity I’ll never let you down.”

Putting the Aloha in Art

Mark Swanson photoLike the overlapping layers of his paintings, Mark Swanson’s philosophies on life, art, and the future run deep. “It’s not about the medium. It’s not about the material; it’s about how [art] it makes you feel. For me the thing that is interesting is finding a way to catch that, capturing something of a spirit.” (more…)

Hawaii’s Brighter Future

Gov. LingleWith the 2008 session in full swing, my Administration is working closely with the State Legislature to advance 180 bills that would improve the quality of life in our island home. While my Administration strives to lead by example when it comes to finding innovative solutions to the challenges we face, the fact is we need the involvement of every citizen, including business leaders, to reach our state’s fullest potential. (more…)