Saturday, June 18, 2011

Creating Jobs!

Sometimes when I read the news, I stand amazed at how little our government officials seem to understand real life. Especially business life. Our unemployment rate is above 9%. Our growth rate in the U.S. is expected to be less than 2%. Millions of Americans have been cut out of any modest "recovery" and the projected "new normal" will be 7% unemployed forever. Really?
 Of course the governments solution is to throw money at the problem. (Money we don't have, by the way, and will be forced to borrow) Governments don't create wealth, they consume it. We should learn from Greece, Spain and others. The public sector employees, unions government programs with cradle to grave hand outs which are killing the future for my friends in Greece. Their debit to GDP is 127%! I recall working in Athens just a few years ago and talking with a group of union employees, who worked for a small government establishment. I told them how to approach a cooperative, inclusive management process how it could be accomplished and offered to coach them through it. My statements concerning working together was received with stiff necked resistance from both sides. Now I watch the battle grounds being waged in that beautiful city on TV and am truly saddened to watch countrymen fight one another as the enemy. It could have been avoided. It would have required some major changes which they were unwilling to consider. Now they are going to experience changes which are much worse than they could have imagined. Their standard of living will decrease for years to come. The unrealistic unsustainable debt will be devastating to ALL.
Our own U.S. government may provide a "job" for some people like TSA agents (and yes, it's a government jobs program and not a security program) contracts and bail out money to protect public sector unions and of course more IRS agents to make sure we are paying our taxes to pay for the jobs programs. But it won't create wealth. Lately the Obama administration has suggested we have more training programs paid for by the government. But what good does it do to train people for jobs that don't exist?


Creating jobs must equal creating wealth for a healthy company and country. And creating those kind of jobs is ALL ABOUT the customer! The only way jobs will come back to American workers is by "Creating Customers." In addition they will need unusual cooperation on both sides of labor and management becoming true partners in growth and profitability. For my friends in Europe, Asia and Russia who have small businesses, it's the same mindset. Building a business that causes customers to seek you out is how to survive the economic pressures. I know first hand because in my own company we have made adjustments, not only to survive, but thrive. People buy because of a WANT or a NEED. Good sales people are able to convince reasonable people that their WANTS can become NEEDS.


                                  Creating Jobs/Wealth


> Have a strategic plan for at least the next 3 years. Do this with a holistic view of your business.


> Reduce waste that has become a way of doing business in your company. ( I can give examples if you like.)


> Build true partnerships in and with your business.


> Find ways to set yourself apart from the rest...even if you provide a commodity product or service.


> Sell what you do best i.e. Quality, Service, Time, Flexibility or Price.


> Do Jack Welch's 20/70/10 rule EVERY year. In different areas of your business.


> Practice sound financial disciplines.


What role does government have? Simple. Get out of the way!! How?


Get rid of those agencies that are not supporting the free market enterprise. Stop building more oversight regulations, committees and departments like the EPA, NLRB etc. Reduce the corporate tax rate so organizations can spend their money on Marketing, R&D, new equipment and new product development. Allowing companies to keep more of the profit will encourage jobs to stay here and not go overseas. Confidence in the economy will only happen when people are spending again. They will only spend when they have confidence that government is not going to mess things up and that we are on the right track for growth.

Saturday, June 11, 2011

Hope and Change?

The Obama presidential campaign ran on the "slogan" of Hope and Change. Well we got the change, but not what most Americans were thinking it would be. What we got was a fast talking empty suit who's entire life had been built around asking the government to support his "community organizing" job. He saw the U.S. as one big community to organize and to continue to get government to pay for the troubles of the world as he saw it. When he became president he gave away leadership to the House and Senate majority to carry out his anti- business, pro-government agenda which has driven an already troubled economy further into disaster.

As a business coach I encounter unrealistic expectations and "hope's for change" in the business world over the years... And yes, I've met some empty suits who got their jobs in top leadership by means other than being leaders.. I see similar actions and attitudes as with the government officials. One of the predictable things they do is throw money at "hype" motivation programs. And, just like people dealing within the political setting, they want instant result's with little to no CHANGE to their lives. For many people, change is more of the same just better. But...that's not what change is or how it happens. It is thinking differently and ACTING differently.

Real change requires:

> A clear and well thought out vision and direction.

> A well defined strategy for the long haul. It is a process not a program. Training programs do little to nothing to cause behavior change. Why companies pay for one time "trainers" for the quick fix and no on-going follow up baffles me. What a waste of money!

> Clear, open, honest and consistent communication to the masses.

> A commitment of time and money to complete the process. (People want it to happen over night. It doesn't happen that way.)

> Making the tough decisions necessary for growth and positive change.


Making more money, attracting more customers, having your employees "engaged", improved quality, higher production requires a concentrated effort to those items listed above. It does not happen by wishing it, or saying you want it to happen. Slogans won't get it. It takes leadership to "cause" change to happen.

Yes, it is hard work, and yes it must be coached consistently. But... those who have really embarked in REAL Change Management (the way it should be done) have experienced positive "pay off's" beyond their imagination.