ZachEvans

Believer. Husband. Dad. Coach. Healthcare Thought-Leader. All-Around Good Guy.

Miscellany

The Downside of Success

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All parents hope to give their kids a better life than the one they experienced growing up. This is not a knock on their own parents, but an aspiration born out of love and the desire to succeed for the benefit of their kids. I feel this way about my own children. Mandy and I have had several conversations over the years about what this could look like for our kids and how we would manage to not raised spoiled, self-centered children while working to out-do our own childhoods.

I began working at a very early age. I worked full-time in the summer starting about the age of 13 (in a machine shop, no less!). My parents were able to meet all of my financial needs growing up but there was never a lot of extra money lying around so I knew that I needed to earn some money of my own both to pay for the normal expenses of a teenager as well as to save what I could for college. I worked hard in high school, got accepted and worked hard in college, and started my career by working hard to uncover my first job (along with several internships along the way).

I am a driven person that enjoys to work. I have been blessed to enjoy several successes in my career. I am able to give money to charity, provide for my family and put my children in some of the best public schools in America. But I struggle with the question of how I pass along these blessings to my children while also instilling in them the same drive and work ethic that I have.

This dilemma is one of the downsides of success. I also think it is one of the reasons that only 15 percent of people think today’s children will be better off than their parents. Some may believe that our children will not be better off than we are because we have, collectively, set the bar to high or that the barriers to success are to great to be overcome by so many. I, for one, do not agree with this viewpoint. I believe that people believe this because we have created (and continue to create) generations of young people that feel they are entitled to success rather than needing to work hard to succeed.

We see it all around us. In the college grads that display a shocking lack of professionalism in the workplace. In the young people that want their parents to take on tens-of-thousands of dollars in debt to pay for a college degree that has no chance of delivering a meaningful return on the investment. In the twenty-somethings that have no idea what discipline is or how satisfying it can be to practice delayed-gratification and, instead, rack up mountains of credit card debt funding their lifestyle.

I am not exactly sure when I became the old man complaining about the out-of-touch young people but I am pretty sure it started happening when I had kids of my own. It started happening when I felt like I needed to start developing a plan to raise children that have the drive to succeed in whatever it is that they do with their lives. It started when I decided not to give in to one of the downsides of success.

Random Acts of Kindness

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There was a time when Waffle House did not accept debit cards. There was also a time when neither Mandy nor I carried much (if any) cash with us. If we needed cash we would stop at an ATM and take out only what we needed and we would use our debit card for everything else. These two facts collided on Easter Sunday in 2000 and resulted in me being on the receiving end of a random act of kindness.

Mandy and I had been married less than a year and decided not to visit family for Easter. We were living in a fairly small apartment and did not feel like cooking so we decided to go to Waffle House for lunch–on Easter Sunday (we both agreed). The Waffle House in Brentwood must be the nicest, cleanest Waffle House in the country and there always seems to be a wait on Sunday mornings after people get out of church. We had already waited in line and been shown to our table when we realized that we only had about $9 between us in cash for our meal and tip for our server.

A few furious minutes of negotiating ensued as we both gave up something we had originally wanted and agreed on what we could share so that our total bill would be about $8 with $1 left over for a tip. We then proceeded to order our food an enjoyed our meal and, more importantly, our time together.

After finishing our meal we asked our waitress for our check. She proceeded to tell us that a regular customer of this particular Waffle House had paid our bill for us and that we did not owe anything. We were shocked. Blown away. Who does that? Why would a stranger do that for us? My best guess is that we were seen as a young couple (22 and 23), eating at a Waffle House on Easter Sunday, that had little money given that we were attempting to eat on $8. We must have been a pretty pitiful sight to behold.

The individual that paid our check did not know that we had money in the bank to pay for the meal, just not cash in our pockets.

That is not the point, however.

The point is that a total stranger felt compassion in their heart and decided to help someone out that had less than they did (or at least appeared that way). We were the recipients of a random act of kindness and the story of our first Easter Sunday together at Waffle House has become one of our favorites to retell. I was even presented with an opportunity to play the role of the generous stranger over a decade later when I saw a young couple in the same Waffle House trying to decide what to order because they did not have much money to spend.

I felt privileged to be able to be able to quietly pay their check and leave without ever being noticed.

It is all to easy to get caught up in the big efforts that we want to contribute to. The kind of efforts that take a great deal of time, energy and resources to complete. These efforts are worthy and should always be a part of our service to others. Just do not let them be the only service that you render. Keep your eyes open for those times when you can display a random act of kindness to someone else that may need just a little bit of help. Do not do it to be seen or recognized. Simply do it because it is the right thing to do. The good thing to do. The kind thing to do.

I promise that you will feel plenty good about your actions when it is all over, even if you are the only one that ever knows what just took place.

Airlines and the Fundamentals of Finance and Economics

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I travel a fair amount for my work with HCA. I am fortunate not to have to travel every week but I probably fly somewhere two to three times a month. Over the past two years I have become a fan of Delta Airlines because of their standing as a preferred airline with HCA but also because of their service and the availability of flights (connecting mostly through Atlanta).

When Mandy and I traveled to China this past summer to pick up our daughter, we also flew on Delta. Our decision was based on price, flight availability and the fact that they had a direct Detroit-to-Hong Kong option all on their planes (which was discontinued in August). We purchased two round-trip tickets for ourselves and a one-way ticket home for our daughter.

When we booked our flights the price differential between coach and business class was about $5,000 per ticket, which most certainly put a business class seat out of our reach. I watched the seat availability online closely as our trip approached and noticed that there were only three or four seats sold in business class as of the day before our flight. Knowing that most people do not book a trip to China the day before a departure I decided to get to Detroit and then inquire about upgrading.

I waited until about two hours before our departure (the flight was 16-hours non-stop) and approached the gate agent, who was very polite throughout the entire exchange. I asked about the cost to upgrade to business class and I was told that we would have to upgrade our tickets to a full-fare business class seat at a total cost of a little more than $10,000.

When I asked why the cost was so high given the fact that the seats would be flying empty otherwise I was told that Delta did not want to upset the passengers that had, in fact, paid full fare for business class by selling the remaining seats at a lower cost.

My pledge to keep silent on the matter was not accepted. I guess I looked like someone that could not keep a secret. Mandy and I ended up having a pretty comfortable flight to Hong Kong but I was still shocked by the airline’s basic understand of the fundamentals of finance and economics.

When considering costs, most businesses will classify their costs in to one of three large buckets: Sunk costs, fixed costs and variable costs.

Sunk costs are those costs that have already been spent and cannot be recouped or saved. For an airline, an example of a sunk cost would be the cost of the plane (I will not worry about the concept of plane leasing for the moment). Regardless of whether or not Delta flew that flight to Hong Kong, the company had still purchased the plane. Yes, they have a fixed asset that has value, but the money spent to purchase the plane is gone and most financial professionals would advise them to ignore any sunk costs when making future financial decisions.

Fixed costs are those costs that are known in advance of operating the plane. Examples of these types of costs would include labor, fuel, meals and landing fees. Once a plane takes off these costs are known and unavoidable. In the case of labor costs, Delta was going to incur the costs for the flight attendants in the business class cabin regardless of whether there was one passenger in that cabin or if it was sold out. The only uncertainty is the average costs per passenger in the cabin. The more passengers in the cabin, the lower average costs and vice versa.

Variable costs are those costs that can be forecasted in advance but change in relation to the demands of the business or customers. An example of a variable cost for an airline would be water in the restrooms and alcohol (some of which is free on most international flights). The costs incurred by the airline would grow in direct proportion to the consumption of the passengers. Water not used to wash hands could be used on the next flight. Similarly, alcohol not consumed could be served on the next flight. (Meals are different because they have more near-term expiration dates and cannot typically be carried over from one flight to the next.)

So Delta had sunk costs that should be ignored, fixed costs that would be incurred regardless of how many passengers are in each cabin, and incremental variable costs that are extremely limited based on a handful of storable consumables. Additionally, Delta had already agreed to fly the plane for a certain amount of revenue. It would be nearly impossible for the airline to lose additional money on the flight but they certainly could have made additional money on the flight.

Why not hold an auction one-hour prior to boarding for the remaining business class (or even first class) seats? Start the bidding at $500 per seat and let the passengers decide if they are willing to pay that or not. If someone chooses to upgrade, the airline stands to gain additional revenue for virtually zero incremental variable costs. Conversely, if no one chooses to upgrade, the airline still flies the plane with the expected—and accepted—cost and revenue figures.

Granted, there are risks associated with this approach in terms of upsetting passengers that did pay full-fare for an upgrade. Most likely, however, the individuals flying in business class were either flying for actual business (and, therefore, did not actually pay for the ticket themselves), used frequent flyer miles to upgrade to business class, or were flying outright on frequent flyer miles. Only a select few individuals would spend over $7,000 of their own money on a business class ticket so the risk of upsetting these individuals by selling the remaining seats at a lower cost would be limited.

I will continue to choose Delta whenever I can, (and, in fact, Delta provides upgrades to first class based almost exclusively on frequent flyer status on domestic flights at zero incremental costs to the passengers) but an idea such as the one I have outlined above for international flights does not sound difficult me. What do you think: Am I off-base and missing something or does this idea make sense to you too?

Favorite 80s Movies

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As Mandy will readily attest, I am a movie junkie. One of my favorite leisure activities is to watch a movie (especially on the big screen in the theater). I can watch almost anything and enjoy it. From action/adventure to drama to a romantic comedy (yes, even those), I am a big fan of the silver screen.

While streaming License to Drive on Netflix, I had the urge to make a list of my favorite movies from the 80s, which can be found below. I saw many (if not most) of these movies when they came to my local video rental store (remember those–we did not even have a Blockbuster where I grew up) or, better yet, when they made it to network TV.

I have listed my favorite movies by year with my top pick for each year listed first. The remaining movies are listed in alphabetical order.

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

Do you agree with my list, think I should have listed a different movie as my top pick, or think I left a key movie off? Comment below or contact me.

When Did I Get Old?

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When Mandy and I were in China we had a moment where we both sort of looked at each other and asked, “When did we get old enough to be half-way around the world on a journey to adopt a little girl? Shouldn’t our parents be here with us making sure that we are OK?” It was both a humorous and humbling moment in our lives.

Another event happened when I was having lunch with a college professor who is also a valuable mentor to me. We were talking about my career and I questioned when I became the person with the experiences to draw on to help others think through an issue rather than the one seeking out the experience. When did THAT happen?

I have struggled at times with the thought of getting older. My 30th and 35th birthdays were not happy events for me. I do–from time to time–however enjoy having stories and experiences that I can use to make decisions or relate to others to help them make a decision. I guess getting older is not all bad.

Why Pay More or Get Less?

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I have been known–from time-to-time–to be an impulse buyer, especially when it comes to gifts. When I want to purchase a gift for Mandy or the kids, price is often the last thing on my mind (although I have always spent within reason). With larger purchases, or purchases for myself, I often try to do a bit of homework before handing over the cash.

Now, I understand that people are busy, but I am fairly confident that I have the same amount of free time (if not less) than the average American, yet I still find time to find good deals. I know that it is a choice, but it feels like such a simple one to me, which is one of the reasons why I do not understand why Apple Stores are the most profitable retail floor space in America.

Case in point: My recent purchase of a MacBook Pro.

I wanted to see, touch and feel what the 13-inch MacBook Pro looked and felt like in my hands so I visited my local Apple Store after reading up on the available models. The salesperson that greeted me was friendly and knowledgeable and was not pushy at all when I left the store without making a purchase. The model I wanted retails for $1,499 both on apple.com and in the Apple Store. Add in the nearly 10 percent sales tax that I pay in Tennesse, and my total, out-the-door price would have been nearly $1,650.

Within 10 minutes of being home, I found the exact same MacBook Pro on Amazon for $1,454.99, with no sales tax and free shipping thanks to my Amazon Prime membership. Total cost savings to me: Nearly $200. I may have been able to save even more money if I had taken the time to look at some other, less known online retailers.

If we all have the same number of hours in the day (24 for those of you counting at home) and time = money, then why do more people choose not to do a little research to save what may be a significant amount of money? Is the experience of shopping in the Apple Store really worth an extra $200 to me? I know that they employ Geniuses, but something tells me I would not have gotten equal value for what I was paying.

[Disclosure: In my house are two iPhones, one iPad, and one MacBook Pro so I am not just beating on Apple.]

Inbox Overload

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Ask most people what the top two or three challenges in their day-to-day work lives is and it is likely that somewhere on that list will be: “I just get SO MANY emails. I really do not know how to deal with all of them!” As an individual that averages between 150 – 200 emails a day, I can certainly understand this feeling (of course, my iPhone 4 checks three different accounts: H2U, Lipscomb and Gmail) but, do be honest, I rarely ever get to the exasperation stage.

One reason for this is that I set a personal goal that, at the end of any given day, I will have fewer than 20 emails in any given inbox (that would be a total of 60 between the three that I actively manage, for those of you counting at home). How do you do that, you ask? It is simple: I do not use my inbox as a filing cabinet.

Outlook, Eudora, Thunderbird or whatever your desktop email solution of choice is simply was not designed to be used in this manner. Most people, however, try to manage their email this way. They keep hundreds (or thousands) of emails in their inbox and then try to remember who sent what when if they need to find a particular email.

You actually become less productive when you keep all of your emails in one place instead of creating folders (Outlook) or using tags (Gmail). You may think that you will do better with everything in one place but it is simply not true. You just have to take a peak in your home junk drawer to understand how true this is.

Managing Stress

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When I teach my Principles of Management class at Lipscomb University I spend at least part of a lecture talking about stress. My students are often surprised when I state that part of a manager’s job is to proactively manage the amount of stress their employees are feeling so that it is being felt at an optimal level. Optimal, they ask? They often think it is the job of the manager to minimize the stress level of their employees.

As yet another article points out, however, stress can propel you into “the zone” and leading individuals to perform at their peak performance. Stress does need to be appropriately managed and can be damaging if not (I twice ended up in an emergency room in college with hives as a result of not managing my stress level). Although I am still not perfect in managing my stress level, I do a pretty good job overall. How do you manage your stress?