Conference Board Finds Widening Productivity Gaps

Via ABC News/Money

By MARTIN CRUTSINGER

The Associated Press
WASHINGTON

The gap in productivity growth between the United States and Europe widened sharply as U.S. businesses were more aggressive in laying off workers and pushing their remaining employees to be more efficient, according to a business research group. Growth in productivity is the key factor in rising living standards.

In a new report, the Conference Board estimated that productivity — the amount of output per hour of work — rose in the United States by 2.5 percent in 2009 while productivity was falling by 1 percent on average in the euro area, the 16 European nations that use the euro currency.

The Conference Board said in a report to be released Wednesday that the gap would narrow in the current year but the United States would still outperform much of the euro area. Conference Board economists forecast that productivity would strengthen to 3 percent growth in the United States in 2010 and return to positive growth of 2 percent in the euro area.

"These are unusually large differences in productivity growth between the United States and Europe," said Bart van Ark, chief economist for the Conference Board, a New York-based research group. "U.S. employers have reacted much more aggressively to the recession than their European counterparts in terms of cutting jobs and hours."

The United States normally has enjoyed stronger productivity in recent years than Europe, an increase many economists attribute to fewer U.S. restrictions prohibiting layoffs than in Europe.

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The Reward is in the Eye of the Beholder - The Un-Comfort Zone

THE UN-COMFORT ZONE with Robert Wilson

In the early 1970s I was a young teenager who was completely caught up in the Zeitgeist. I admired the long-haired rebels and radicals who were engaged in protesting the establishment and developing the counter-culture. I didn’t really know what any of that meant, but to me it was all about empowering youth and declaring our independence from the adults. My parents in particular.

As with any normal teenager, I was trying to grow up as fast as I could. And, because it annoyed my parents, wearing my hair long was its perfect expression. That, and it was de rigueur among all the teenagers who wanted to be cool. So, the longer the better – or in the immortal words from the title song to the 1968 Broadway Musical HAIR, “Oh, say can you see, My eyes if you can... Then my hair's too short!”

It drove my parents completely crazy. They could not understand why any male would want to wear long hair. We fought about it all the time.

Meanwhile, I was in my first year of high school and the transition to a new school was causing my grades to drop dramatically. My parents saw an advantage, and the law was laid down: keep my grades above a certain minimum or cut my hair. It worked. I brought home a dismal report card, and it was off to the barber shop. Not surprisingly, my next report card met the minimum.

The formula is simple: if you can find out what is valuable to someone, then you have the key to motivating them. For me, at age 13, the length of my hair became the coin of the realm.

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Robert Evans Wilson, Jr. is a motivational speaker and humorist. He works with companies that want to be more competitive and with people who want to think like innovators. For more information on Robert's programs please visit www.jumpstartyourmeeting.com

Does Office Temperature Affect Productivity?

via The First Facility Management

As winter sets in across the country and companies turn up the heat, they may need to readjust the thermostat to keep their workers productive. According to a new CareerBuilder survey, when asked if the temperature at work affected their ability to get work done, more than one in five (22%) workers said that a “too hot” work environment made it difficult to concentrate. Eleven percent of workers said the same about a “too cold” work place.

Overall, more than a quarter (27%) of workers describe the temperature at their work place as “too hot.” On the flip side, 19% reported that the temperature was “too cold,” while 54% said it was “just right.”

Differing opinions on what is too hot or too cold for the office can sometimes cause conflict among cubicle mates. In fact, 10% of workers said they have fought with a co-worker over the office temperature.

Worker disputes over temperature aren’t the only thing affecting work place climate; the economy is also playing a part. In an effort to save money, nearly one in five (19%) workers feel that their company has turned down the office temperature this year.

“There are many factors that can affect work place productivity,” said Rosemary Haefner, vice president of human resources for CareerBuilder. “Everything from morale, burnout, and as our survey finds, temperature, can have an impact on workers’ ability to get their work done. If temperature is a concern, workers and employers can easily work together to find common ground so productivity does not suffer.”

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European Competitiveness Report 2009

via European Commission Enterprise & Industry

European competitiveness report 2009
07/12/2009

European competitiveness is at the centre of analysis of the yearly competitiveness report of the European Commission. Its main focus is on recent changes of the EU's productivity growth, which is the key driver of competitiveness in the long run.

The 2009 edition of the European Competitiveness Report looks at the possible implications of the economic downturn; in particular for productivity and for some of the determinants of future EU competitiveness: the evolution of the BRIC countries (Brazil, Russia, India and China); the role of high-skilled migration; the extent and conditions under which training can boost productivity; and the role of product and labour market regulations in influencing ICT (Information and Communication Technologies) investment.

Complete Article & Report Downloads

Volume 1 includes Chapter 1 'Competitiveness and the crisis' and Chapter 2 'EU and BRICS: Challenges and opportunities for European Competitiveness'. Volume 2 contains Chapter 3 'Migration, Skills and productivity' and Chapter 4 'Training, education and productivity' and volume 3 Chapter 5 'ICT, regulation and productivity' and Chapter 6 'Statistical annex'.

The Buck Starts Here - The Un-Comfort Zone with Robert Wilson

by Robert Wilson - The UN-COMFORT ZONE

Recently I participated in a Murder Mystery weekend at a bed and breakfast lodge. Every guest was a given a role to play. There were eight suspects; each of whom had one or more of the following: Means, Opportunity and Motive. Having the Means and Opportunity was very important, but having the right Motivation was the key to solving the puzzle. We interviewed the suspects, collected clues, then presented who we thought was the killer and why. It was great fun, but I failed to figure out who done it. I was very logical and surmised that a suspect with a monetary motive was the one. But, it turned out to be one with the emotional motive of anger and revenge.

Never-the-less, money is a powerful motivator. It is the original carrot dangling from the stick.

My friend Bill, the computer wizard, told me years ago, “I always follow the money.” Meaning that he would learn those computer skills that paid the best. I did the same thing in my early years as a writer. I found journalism fun, but that advertising paid better. Subsequently, I pursued advertising work and honed my skills in motivating people to buy.

The exciting thing about money, or more specifically: prosperity, is that it is a great equalizer. Prosperity has a way of eliminating envy, hatred and bigotry. Increased wealth makes people more tolerant and giving. The formula for prosperity is simple: economic freedom plus property rights. In other words, minimal regulation and the right to keep what you earn.

Clearly we all know that money is a reliable method for motivating people. But, if you ever want to discover the motivation behind an action that appears to be random, backtracking the money trail is frequently a good way to find it. For example, have you ever noticed one of your favorite products disappearing from the store where you buy it? It probably means that there were not enough customers for it and the store quit carrying it. If, however, you can’t find it anywhere, then the lack of users is widespread and the manufacturer discontinued it.

Sometimes, however, the money trail is even longer, and more convoluted. I recall a hot summer day, back in the late 1980s, when, after mowing the lawn, I popped open an ice cold soda pop and drained it in one long gulp. Moments later I was on the floor with a painful spasm in my back. It lasted nearly half an hour, and when it was over I made an appointment with my doctor. It turned out that I was allergic to the corn syrup in the soda.

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Robert Evans Wilson, Jr. is a motivational speaker and humorist. He works with companies that want to be more competitive and with people who want to think like innovators. For more information on Robert's programs please visit www.jumpstartyourmeeting.com

Be More Productive

Via The Wall Street Journal

By ALEXANDRA LEVIT

If you want to learn how to squeeze more out of a single day, ask someone trying to change careers.

Heather Huhman of Washington wakes up just after 4:00 a.m. and hits the gym. Before Ms. Huhman walks into her office at a national health-care association, she writes a column for local news site Examiner.com. It's something the 27-year-old does to help build her platform as a career expert -- a necessity for the success of the company she has founded on the side, Come Recommended (comerecommended.com), a site where people can solicit professional references. And it's this fledgling business that gets a majority of her attention outside business hours.

Ms. Huhman may sound like a workaholic, but she says she regularly makes time to eat meals with her husband and watch college football on weekends. How does she do it?

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Manufacturing Troubles Remain a Drag on Recovery, Trade & Jobs

via The Seattle Times

by Jon Talton


Top of the News: The Institute for Supply Management's manufacturing index seems consistent with recovery, coming in at 53.6 for November; any number above 50 signifies expansion in the sector. Unfortunately, the reading sagged from 55.7 the month before, tripping up what economists had hoped would be a steady climb out of recession.

A deeper look shows that the index provides no relief for the biggest immediate problem facing Americans, unemployment. Only six of 18 manufacturing industries reported growth in employment. Only 11.7 million Americans worked manufacturing as of October. That compares with 17.3 million in October 1999.

Not only do manufacturing jobs pay better than their counterparts in service industries, they tend to add real value to economic activity (as opposed to selling mortgage swindles). They are also twined with our trade issues. Even fewer manufacturing jobs are now in industries that export, a key part of our huge manufacturing trade deficit.

Unfortunately, this phenomenon was happening even before the Great Recession. A report from the Economic Policy Institute shows that manufacturing employment between 1965 and 2000 never dipped below 16.5 million. This even as manufacturing shrank as a share of the economy (take out Boeing and it would be much smaller). This changed as imports surged after China joined the WTO and other Asian factory centers upped their game. By 2004, the number was lower than any time since 1950.

"It is often claimed that declines in manufacturing employment stem entirely from productivity growth," according to EPI economist L. Josh Bivens. "However, rapid productivity growth is the norm, not the exception, in manufacturing. What is new about the manufacturing job crisis of the last four years is the sharp downturn in the ratio of domestic production to demand."

Indeed, American steelmakers are shrinking yet again.

The Back Story: The official unemployment rate including discouraged workers and part-timers seeking full-time work is 17.5 percent. But Shadow Government Statistics, a provocative and reliable site, argues even this underestimates the problem. Try...22 percent.

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CEOs Cautious on Rebuilding Staff

Via The Wall Street Journal

By JOANN S. LUBLIN and ROGER CHENG

WASHINGTON—U.S. corporations remain hesitant to give the gift of a new job this holiday season, except for a select few.

That's the sentiment among chief executives gathered here at The Wall Street Journal's CEO Council. Leaders from across the corporate landscape spoke of cautiousness in rebuilding work forces reduced severely during the worst economic downturn in generations.

"We aren't close to needing to hire people in a significant way," said Mike Splinter, chief executive of semiconductor equipment maker Applied Materials Inc. The company now employs about 15% fewer people than two years ago, largely as a result of layoffs, Mr . Splinter said.

Other companies also are waiting to hire. As of October, the U.S. unemployment rate—at 10.2%—was the highest since April 1983, and the percentage of those who are unemployed, marginally attached to the labor force or working part-time because they have no other option stood at 17.5%.

Stephen P. MacMillan, chief executive of orthopedic product maker Stryker Corp., isn't optimistic. "I don't see the employment picture changing much over the next year," he said.

Any improvement may not come from large business, said Rupert Murdoch, chief executive of News Corp., owner of The Wall Street Journal.

"You've got a huge number of unemployed here in the United States, and we're not going to get that cured or people re-employed until we get the formation of small business on a big scale," Mr. Murdoch said, adding that the lack of jobs remains the biggest short-term obstacle.

Meanwhile, Thomas Glocer, chief executive of Thomson Reuters Corp., called unemployment "a serious economic and political issue" because some jobs aren't coming back as they have been eliminated, sent overseas or replaced by technology. He said the U.S. would see a "slow climb back."

The hesitancy of companies to hire comes despite a surge in productivity in the third quarter, possibly indicating that existing workers are being stretched to do more.

Mr. Splinter said that in Applied Materials' case, the company's recruitment plans depend "on how fast our customers see improvement." Similarly, he didn't foresee an imminent end to the company's cost-cutting efforts that are part of a broad efficiency drive.

"We want to become more efficient because we will be stronger" once the economy fully recovers, Mr. Splinter said.

Those companies that are hiring are doing so strategically.

"Selectively, we're hiring on certain projects," said John Chambers, chief executive of networking giant Cisco Systems Inc. While most of the hiring is being done in the company's 30 new business ventures, he said some new jobs still tie into the core routing and switching business.

Job creation usually lags capital investments by a few quarters, Mr. Chambers said, noting that the company has done its investing through several recent acquisitions.

The theme of selective hiring was echoed by CEOs from companies as diverse as food maker Conagra Foods Inc., communications-chip supplier Broadcom Corp., and power companies Progress Energy Inc. and Calpine Corp.

Nearly 100 chief executives were attending the annual WSJ CEO Council meeting Monday and Tuesday in the nation's capital to discuss business and political issues and meet with top policy makers. Participants scheduled to attend included White House Chief of Staff Rahm Emanuel; Health and Human Services Secretary Kathleen Sebelius; and Council of Economic Advisers Chair Christina Romer.

To be sure, not all chief executives attending the meeting halted hiring during the downturn. Among them is Surya N. Mohapatra, chairman and CEO of Quest Diagnostics Inc.

"I never stopped hiring," Dr. Mohapatra said. "Every year, we hire almost 2,000 people," including engineers, scientists and managers. The company also avoided significant layoffs, he noted.

How soon Quest Diagnostics accelerates its current pace of hiring is unclear, however. A big uptick "won't happen overnight," the CEO said.

—Jon Kamp, Mark Peters, George Stahl and Paul Ziobro contributed to this report.

The Examined Life - The Un-Comfort Zone with Robert Wilson

THE UN-COMFORT ZONE with Robert Wilson

The Examined Life

“Hola!”
“Hola. ¿Qué tal?”
“Bien. ¿ y tu?”
“Bien.”

Paul and I were sixteen years old and had taken highschool Spanish for a year. We called each other every night on the phone and spoke to each other in our new language. More than anything we wanted to test our skill with a real Spanish speaking person, but we did not know any. Then we got the idea to have dinner at a Mexican restaurant. For two boys who had never dined out without their parents, this was a big adventure. We were so motivated that when we made reservations, we asked to be seated with a waiter who could not speak English.

What motivated us? Knowledge. We made the same discovery that led Sir Francis Bacon to make his famous quote in 1597, “Knowledge is power.” We were empowered by what we had learned, and it gave us the confidence to take a risk we would never have taken before.

By the end of dinner we found out we didn’t know nearly as much as we thought we did, but the important thing was that our knowledge, albeit meager, moved us to action.

It is the same reason that we find seminars and lectures so motivating -- because we acquire new insights in a relatively brief period of time that we can act on right away. If the information is good, we can’t wait to put it to work making our lives better and our jobs easier.

Knowledge also motivates us because it enables us to be more inventive. Many new innovations are the result of two or more existing ideas synthesized into a new one. Creative thinkers regularly expose themselves to new learning experiences, and to different viewpoints. With each new experience, they create new synapses – electrical connections between the nerve cells – in their brains. This gives them more data to draw from when they are looking for solutions.

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Robert Evans Wilson, Jr. is a motivational speaker and humorist. He works with companies that want to be more competitive and with people who want to think like innovators. For more information on Robert's programs please visit www.jumpstartyourmeeting.com.

To Do More With Less, Governments Go Digital

Via The New York Times

By STEVE LOHR

IN government, as in business, crisis can fuel creativity. These days, the pressure to rethink things is particularly intense for state and local governments, which have far less leeway than Washington to borrow in bad times.

“The economic pressures will force us to be more efficient and change how we deliver government services,” says Sonny Perdue, the governor of Georgia.

Mr. Perdue was one of more than 500 government officials, business executives and academics who attended a two-day conference in New York this month. Under the theme “Smarter Cities,” the meeting was sponsored by I.B.M. in partnership with the Brookings Institution, the City University of New York, the Urban Land Institute and other nonprofit groups.

That a giant technology company underwrote the gathering suggests that there is money to be made in helping governments tackle thorny problems in traffic management, energy use, public health, education and social services — and that technology has an important role to play.

Local governments, like many businesses, are struggling with a data glut. Agencies collect huge amounts of information about topics as diverse as building permits, potholes, Medicaid cases and foster-child placements. Technology, according to computer experts and government officials, can be a powerful tool to mine vast troves of government data for insights to streamline services and guide policy.

“The mistake people make is to think that collecting the data is the endgame,” said Michael R. Bloomberg, the mayor of New York. The real payoff, he said, takes another step. “We actually use the data,” he noted.

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How Cool Are You? - The Un-Comfort Zone with Robert Wilson

THE UN-COMFORT ZONE with Robert Wilson

How Cool are You?

My sons recently started talking about being cool, and I recalled my own teenage years and the need to be cool. That driving desire dictated the clothes I wore, the music I listened to, and what subjects I became conversant in. And, yet despite all my motivation and effort, it remained elusive.

When I look back, I can see that all I really wanted was to be accepted, liked and admired. But, whatever I tried, I never quite felt cool enough. The problem was that I didn’t really understand the term until I’d spent a few years living and working in the real world.

So, I explained to my kids, “Cool is when there’s a problem and you do not get upset by it. When everyone else is panicking, rushing around and over reacting, the cool person is the one who stays calm, assesses the situation, then makes a reasoned decision on what to do.”

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Robert Evans Wilson, Jr. is a motivational speaker and humorist. He works with companies that want to be more competitive and with people who want to think like innovators. For more information on Robert's programs please visit www.jumpstartyourmeeting.com.

Global 360/The Bureau of Labor Statistics

FROM THE CHAIRMAN … Robert A. Jacobson, MPS


Global 360/The Bureau of Labor Statistics reported today in the USA Today that on average “Workers spend 1.7 hours a day doing nothing, costing businesses $4.4 USD billion a day.” Now can you imagine what that is on an annualized basis???? And can you imagine how damaging that is to the bottom line and to profitability around the world???