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Times Change: Embracing a Path with No Fork
My friend Mark can’t help musing over how times have changed.
Three years ago, he had his pick of positions when he was ready to jump from Giant Corporation X to Smaller Company Y. Recently, he decided it was time to get back to a large company. He put his résumé out and made contact with the recruiters who had helped him over the years.
My how times have changed.
Georgia Unemployment Rate Highest in 15 Years
By MICHAEL E. KANELL
The Atlanta Journal-Constitution
The jobless rate in Georgia leaped last month to the highest level it has reached in May since 1993.
The official rate rose from 5.3 percent in April to 5.8 percent in May, paralleling the large leap taken by the national unemployment rate.
“Georgia’s May unemployment report confirms that we are facing an increasingly difficult economic environment,” said Michael Thurmond, state labor commissioner.
Higher unemployment rates often mean that the labor market has weakened. However, economists consider the rate to be a lagging and somewhat inexact indicator.
A slowing economy typically does not immediately shove jobless rates much higher. On the other hand, an improving economy is often accompanied by rising rates as more people seek work.
Critics often argue that the official jobless rate understates problems. It does not include people who are out of work and have not been looking for a job. And it does not include
Heraclitus, Change Management, and Innovation
If you are up on your Greek history, you know who Heraclitus is. If not, here is the CliffsNotes version. Heraclitus was a Presocratic philosopher who lived circa 530 to 480 B.C. Whereas history credits him with penning over 100 proverbs, he is best known for one basic idea: Heraclitus believed the universe is in a perpetual state of change.
Whenever Heraclitus chose to elaborate on his unique philosophy, large crowds gathered. On one occasion, Heraclitus illustrated his belief by going to a stream’s edge and stepping into and then back out of the water.
He asserted that if he stepped back into the stream, it was not the same stream, because of the change brought about by his initial step. Although it is unclear to what extent his audience was convinced of his belief, his insight has stood the test of time. In fact, if alive today, Heraclitus would be the poster boy for modern business. As Fishman (1997) notes, “ It’s not that the business environment is changing. Change is the business environment. And it’s not that every company is undergoing change. Change has overtaken every company” (p. 64).
Given this fact, business leaders have two options: react to change or initiate it. Let’s consider both alternatives. First, adept managers acknowledge that change is a fact of life. As a result, they routinely identify which changes have the greatest impact on worker productivity and satisfaction, and ultimately profits. They then develop plans to manage change as it occurs. Second, adept managers initiate change by recognizing the role of innovation to business success. Innovation involves improving a product, process, or service (Robbins, 2003). Innovations can impact internal (e.g., improving the assembly of a product) or external (e.g., serving customers more efficiently) aspects of a business. In both options (i.e., react to change or initiate it), outstanding companies are characterized by managers who seek out (e.g., in meetings), value, and reward employee input to manage change. Does your company do this? If not, change is in order.
Given the perpetually shifting global marketplace, Heraclitus was right: the universe is in a perpetual state of change. According to Fishman (1997), creating, managing, and surviving change is the agenda for anyone or any company that aims to make a difference. Master change, and you will stand out from the crowd.
The Tipping Point: Energy forecasters predict $12 to $15 for a gallon of gas
by Dawn Turner
Senior Energy Advisor, Robert Hirsch recently told CNBC that the today’s gas prices will soon be referred to as “the good old days”. He, and other energy watchers, are predicting that the price of a gallon of gas could rise as high as $12 to $15 a and there is no solution in sight. Energy forecasters further predict that once gas prices reach those levels, gas rationing will need to begin. Don’t think it could happen? It did in the 70s. Yes, the 1970s, just a few decades ago. During that time OAPEC decided to penalize countries, namely the U.S., Japan, and Western Europe, because they were supporting Israel during the Yom Kippur War.
After the OAPEC embargo took effect in the 1970s, consumers in the U.S. bought gas when the government “said they could”. If your car’s license plate ended in an odd number, you were allowed to buy gas on odd numbered days. If your license plate ended in an even number, you were allowed to buy gas on even numbered days. Sounds pretty easy, doesn’t it? Well, it was, if your local service station had gas that is. It wasn’t unusual to drive up to a service stations and see a “No Gas” or an “Out of Gas” signs. The U.S. government never implemented gas rationing coupons, although they had printed during 1974 and 1975, in anticipation of a prolonged gas shortage.
The recent news about fuel prices, may be the kind of scenario that Malcolm Gladwell was referring to in his book called”The Tipping Point”. The premise of his book is that “little things can make a big difference”. The tripling of gas prices, that experts are predicting, will undoubtedly change life for all of us in a very, very big way.
“We live in a world where there is only about 1.2% more oil available each year, not enough to keep up with 1.5% annual demand growth.”- Charles T. Maxwell, senior energy analyst at Weeden & Co., known as the “dean of energy analysts.”
Imagine for one moment,
Adoption Benefits = Family Friendly
Are you thinking of expanding your family through adoption?
If so, check out the adoption benefits at your company or at any company you are considering as a future employer. Do this early on, even before you start tackling the mountains of adoption paperwork, so you can lobby for change if your company doesn’t smile on adoptive families.
Adoption-friendly workplaces treat adoptive mothers the same as women who give birth, by allowing paid maternity leave to bond with the new family member. Some companies at least allow partially paid leave or make it easy for employees to use accrued vacation and sick time to bond with their adopted child. An adoption-what’s-that-never-heard-of-it workplace, and unfortunately there are a lot of them out there, does not recognize mothers who bring an adopted child into the family as mothers at all, offering no paid leave or unpaid leave beyond FMLA.
Meetings Done Right
Let’s be straight; most people do not like meetings. When asked why meetings are so distasteful, the typical worker’s response often goes like this, “Don’t get me started with meetings. Our company’s meetings are a complete waste of time.” Indeed Roger Mosvick and Robert Nelson (1987) found that employees commonly dislike meetings for a variety of reasons; these reasons include the leader was not prepared, the meeting was irrelevant, and a certain group of people kept getting off the subject.
Since meetings are a must for successful companies, it is helpful to periodically review the principles of high-quality meetings. These principles include: First, the effective manager masters time. John Cragan, David Wright, and Chris Kasch (2004) recommend that meetings are purposeful and take no more time than necessary. To ensure this, a manager should distribute an agenda in advance so that employees know what to anticipate in the meeting and can prepare to participate in it.
Second, the effective manager gives attention to employee satisfaction. Meetings are excellent opportunities to boost morale. Managers should take the time to recognize employee accomplishments and seek feedback. Once a meeting has finished, a manager should send a short email reiterating what was accomplished in the meeting to reinforce its value. This is especially important for groups that meet once a week or less.
Third, the effective manager seeks consensus. Consensus occurs when employees arrive at a decision that everyone can support. Research indicates that employees are more productive when they’ve been a part of the decision making process (Keyton, 2002). Consensus works best when it develops from group interaction and is not forced by a manager. Moreover, consensus tends to encourage future collaboration. Keep these principles in mind, and your employees will benefit from, and recognize the importance of, company meetings.
Compare Offers, Do the Math
Mark was satisfied with his senior management job in the telecom industry, but when an opportunity came to interview with another company, he couldn’t pass up the possibility of a salary bump.
He researched the company and liked what he saw. Even though the company had struggled, it had a sound business plan and a new team of heavy hitters to turn things around. His interview with the CFO went well. He returned for a second interview. The company wanted James, and James wanted to make the move. The offer represented a 10 percent raise. Or so it seemed. The base salary was 10 percent higher.
The offer came on Friday, giving Mark the weekend to think it over. He told the recruiter he needed to run some numbers and talk to his wife, but he was pretty sure he would accept.
On Saturday, he set up a spreadsheet that looked his current compensation as well as the offer: base salary, bonus, healthcare, 401K, options, restricted stock, commuting and parking.
The tally left Mark disappointed.
Astute Leadership Wisdom from a... Rockstar?
by Rick Houcek
Had a thrilling experience last Thursday. My wife and I were in Nashville attending an annual marketing and business-building conference … and met Gene Simmons, the ‘god of Rock ‘n Roll’ and founder of KISS.
He spoke to an audience of 1200, and to put it mildly, I was stunned, shocked, and amazed.
I love rock music. Always have. And like many people, I’ve got my favorite bands. KISS, though, has never been among them. I don’t dislike them, they’re just not my style.
But I’ve respected their longevity and success immensely.
What blew me away, though, was Gene Simmons the man … and Gene Simmons the entrepreneur. Both threw me for a loop.
He was invited to speak on the success of KISS and impart his savvy wisdom in business. What I was expecting, to be blunt — and in true rock star stereotype — was an egotistical, wacky, incoherent speech from an aging, drugged-out rock star who has a popular band, made millions in concert revenues, probably blew most of it, has an attitude that he’s too good for us common folk, and who may have a few good ideas to share, but not many.
What I got instead was … well, the dead opposite on all counts. And frankly, blown away to boot.
First, Simmons the man.
He immigrated to the U.S. from Israel at age 8, knew no English, and spent his early teen years in stupefied wonderment over the freedoms, the possibilities, and the success potential that every American possessed. “I could be anything I wanted here. There are no barriers,” he came to realize. He was mesmerized by American culture, TV shows, comic book heroes, Walt Disney characters, and later the Beatles and their following.
Value Matching and the Right Job
In recent years the internet has dramatically changed the dating industry. Whereas match-making services once had candidates pick-a-date from a photo album, companies now have clients complete a lengthy questionnaire to determine actual—rather than perceived—compatibility. A client is then paired with someone of similiar test results. As different as successful online dating and job-seeking may seem, they have one noteworthy commonality: value matching is central to both processes.
Social psychologist Milton Rokeach (1973) defines values as core human beliefs. For example, you may value creativity more than money or prioritize job security over personal recognition. In short, your value system makes you unique. Interestingly, companies also possess distinct value systems. Not surprisingly, when an employee’s values match a company’s values, the employee tends to be productive and happy. Conversely, when an employee’s values do not match a company’s values, the opposite is true (Morley & Shockley-Zalabak, 1991) .
This information is valuable if you put it to use when seeking employment. Here is how to do so: First, know yourself. Determine your values. Better yet, rank them. Prioritizing your values is useful since it influences how you respond to an interviewer (or your recruiter). Second, know your potential employer. Ask the interviewer questions that clarify what a target company considers important. These questions show a sincere interest in the company and help you gain crucial information for making the best decision regarding employment. Third, determine if your values and the company’s values are similar. If they are, you’ve got a match; you need only say yes to the impending job offer.
"The Double-Edge Sword of Layoffs"
by Rick Houcek
Two big news items emerged from my fair city in the last 48 hours. Both have dramatic implications and lessons for leaders everywhere.
Atlanta Mayor Shirley Franklin has announced a $140 million budget shortfall, resulting in expense cuts that include the termination of about 440 government jobs. The first wave of dismissals was announced yesterday; the second wave comes later today.
And Atlanta-based Home Depot has announced 15 store closings nationwide, due to lagging performance. 1300 jobs will be lost. It’s the first time the retailer has ever closed even one flagship store, let alone 15.
Layoffs and store closings are nothing new in business. Been happening forever.
Nor are the backlash and criticism leaders get when they occur.
It’s understandable. Heck, if you’re an employee facing a layoff, it would be human nature for you to throw accusations of “mismanagement” at those in senior positions — primarily at the top dog.
And at times, it’s dead-on accurate.
Take Enron. When that story broke, and news crews started interviewing employees for their reaction, turns out they were