Business Forecosf: 1972 Money management keynotes conference

A twenty-first birthday is always fL a special occasion, and the twenty - first annual Management Conference of the Lumber Assn. of Southern Cali{ornia was no exception to the rule.

Outgoing president John Lipani opened the conference, one of the largest in the association's history, on an upbeat note, pointing out the success of the education program, the regional meetings last fall on the wage/price freeze and a quick run through on the many activities of exec. vp. Wayne Gardner and his accomplishments for the association.

Elected new president was Leon Lauderbach, Orange Coast Lumber;

AI MEEIIIIGS (l) ar,e Lloyd 0lson, Jim Pottrats, (2) Max Garma4 Blake Blakey. (3) Bob McBrien. (0 Jim Martindale, Don Swartzendruber. (5) LMA prexy Bob Kimble, LASC immediate past pres. John [ipani, Harry Mendenhall, LMA exec. vp. (6) Seth Potter. 0) Jim Pottratz, George Clough. (8) Jim Kahler, Ken Raney. (91 Jerry Abraham, Chris Christensen, Jeny Holdren. (10) Lou DeRose, Mark Meyers,

Gordon Woolard, Burns Lumber Co., vp.; Seth Potter, American Forest Products, secretary; and Frank Purcell, treasurer.

PACE, personal and corporate effectiveness, themed keynoter Michael McCaffrey's talk on common denominators among high achievers. Through a series of case histories, he illustrated attitudes and habits that can either impede or accelerate an individual seeking business success.

Then it was out to the El Mirador Hotel's poolside for an outside lunch and a look at Palm Springs' unseasonably cloudy sky.

An in-depth examination of finan- cial statements was presented at the afternoon session by Ed Driscoll, vp., Bank of America, Santa Ana and his asst. vp. Dick Agnello.

Wayne Mullin. (11) Jim Adams and friend. fl2) Leon Lauderbach, Ralph Cardwell. (l$ Gordoqr Woolard. (14) lVayne Hull, Hal Anawalt Wally Hull. (15) Gordon Beech, Don Stobaugh. (16) John Suverkrup, Walt Smith. (17) Mike and Dick Learned. (18) Buzz Miller, Joe Contestabile. (19) Bob Ransom, M. A. Garthier. O0) Pete Parrella.

Driscoll talked the group through the ins and outs of a sample balance sheet, weighing and evaluating and explaining the difierent factors such as assets, total current assets, liabilities, current total liabilities, reconcilement of net worth or earned surplus, and contingent liabilities. He confirmed the layman's impression that despite the importance of the foregoing that, yes, the bottom line is still the one that really counts.

The techniques of working on a projection for a five year period was presented through another sample illustration on how the various components reflected on a financial statement can give a valuable, financial overview. Accurate current records enable one to manage his store, rather than be managed by it. The projection can help the owner spot potential trouble areas in time to act. He pointed out they encounter seemingly prosperous operations that are, in reality, headed for serious financial difficulties.

Among other topics, Dick Agnello spelled out the significance of the ratios between various items on a balance sheet, starting with current assets divided by current liabilities through cost of sales to inventory on to net pro6t divided by the owner's equity which, of course, is that

Story dt d Glonce

One of the biggest conferences ever . strong program was well received Leon Lauderbach elected as new president tor I97L-72.

especially vital one, return on investment.

Un-banker like, he stressed the importance of the intangible re. returns of operating one's own business, things such as sense o{ accomplishment, pride and independence that should be weighed against the headaches, long hours and extra work that are the invisible partnel of any business owner.

That evening kept the social side of the convention on the beam with the board of directors' cocktail party, followed by an excellent dinner-dance.

Gordon Woolard chaired the next morning's panel, Critical Points

ALong the Critical Pali, moderating a strong foresome that gave valued insight from their experience.

Miles Davidson, Sun Lumber Co., on setting performance standards, related their methods, how they control input into the decision making function and the balance they seek to achieve between various parts in their operation. Collin Lovesee, Boyd & Lovesee Lumber, related his techniques of inventory control, especially the success they have had with "eyeball" control. His qualifications to speak on the topic are best explained by noting he turns his inventory in excess o{ l0 times.

Return on Investment, examined through mathematical formulas and expressed a variety of rvays, was presented by Bill Baugh, Southwest Forest Industries vp. He noted that all too many firms operate at such a low R.O.I. that they might be better ofi seeking new investments for their capital. Bill Cowling, Jr., Dixieline Lumber, told of his firm's successful increase of cartage charges and their elimination of discounts on certain lumber items. He stressed the importance of a competitive wage scale in keeping good people in an organization.

Earlier that a.m., Blake Blakey, Anawalt Lumber, reported on the success of the LASC training program to upgrade employee skills and better educate newcomers to the industry. King McKee, Forest Lumber, reported on the latest meeting of the national and the changes that resulted. (For lurther d,etails, see Wge 34 ol this issue.)

Lowry Wyatt, senior vp., Weyerhaeuser Co., spoke at the president's luncheon of the danger ecological extremists present to sensible managemept of the nation's forest reso'urce: He noted the importance o{ every citizen being informed. He urged all to contact their representatives in an efiort to stave ofi the threatened wave of ill-advised legislation resulting from misinformation on conservation.

He related the long history of good conservation efiorts that American industry has achieved and pointed out that hasty, ill-researched actions had produced some new rules that made a bad situation worse, rather than better. He noted phosphate detergents as an example.

The last day, Saturday, was given over to golf, tennis and general reflection and recovery,

WEYERHAEUSER exec. vp. {1) Lowry Wyatt speaking at conference. 0) John Lipani, Leon Lauderbach. (3) Wayne Gardner, Jim Martin' dale. (4) Paul Sause, Gordon Woolard, Frank Purcell. (5) Collin Lovesee, Bill Baugh. (6) Pete Speek, Jim Frodsham. o) Gordon Woolard, John Lipani, Bill Cowling. (8) Miles David- son. (9) Doug Maple. (10) Jack Milliken, Don 'Derbes. (11) Tom Melin, Paul Sause, John Weston. (12 Don Stobaugh, John Weston, Chuck Jenkins. (13) Arnold Smith, Arlin Beal, John Weaver. (14) Walt Taylor, Pete Ganahl, Wally Swanson.