APS Productivity Blog

The First Million - The Un-Comfort Zone with Robert Wilson

2010-07-20T16:52:00.002-04:00

THE UN-COMFORT ZONE with Robert Wilson

The First Million

Until I was thirty years old, I wasn’t much of a fisherman. I’d take a rod and reel along on a camping trip, but I never expected to catch much of anything. In my mind, fishing was a relaxing past time you enjoyed with friends and beer. Then my buddy Brian asked me to go fishing. I took him to a lake I knew that was hidden in the woods; and he taught me how to fish for bass. He showed me how to cast my lure along the edge of the lake; how to give the line a couple of tugs to “jig” the lure and attract the fish; then to reel it back in quickly.

I accepted his instructions affably, but with little faith, then popped open a bottle of beer and started to get into the rhythm of relaxation. Cast, tug, reel. Swig. Cast, tug, reel. Swig. Cast, tug, reel... Whoa! Something hit my line. Hard. Really hard! I’d never felt anything like that before. My line started spinning out of the reel with a high-pitched whining sound. I cranked it back in as fast I as could, but the drag was set too low and the fish was pulling it back out faster than I could turn the handle.

Suddenly, a hundred feet in front on me, a bright green monster burst out of the lake. It was a large-mouth bass that came full length out of the water. Shimmering in the sunlight, he shook his head back and forth in an attempt to break free from my hook, then splashed back beneath the surface. I couldn’t believe it - it was just like I’d seen on television - and it was happening to me.

Afraid that I’d lose the fish, I yelled at the top of my lungs, “Brian, Help!” He was nearly halfway around the lake, but he dropped his own rod and charged toward me; yelling instructions all the way. I tightened the drag and reeled the fish in a little, then let him pull the line back out to tire him. It felt like an hour, but was probably less than ten minutes, before I finally got him in. He was 18 inches long and weighed eight pounds. The bass wasn’t the only one to get hooked that day; I was too - I couldn’t wait to go fishing again!

For the first time in my life, I had experienced fishing success. Success in anything is very motivating. It builds confidence and encourages you to keep pursuing that particular endeavor.

Complete Article

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

On My Honor - The Un-Comfort Zone

2010-05-10T15:46:00.002-04:00

THE UN-COMFORT ZONE with Robert Wilson

With the morning mist still on the Hudson River, and the sun just kissing the cliff tops of the New Jersey Palisade, Aaron Burr, Vice President of the United States shot and killed former Secretary of the Treasury, Alexander Hamilton. Political opponents for years, the duelists faced each other after Burr sent these words to Hamilton: “Political opposition can never absolve gentlemen from the necessity of a rigid adherence to the laws of honor.”

Once upon a time people were motivated by honor. Acquiring it, maintaining it, defending it. Bitter duels were fought in its name. I don’t hear much talk about honor anymore.

Could it be the concept of honor is too difficult to understand? Is it truly ineffable - impossible to define - to the point that no one really knows what it means? As a virtue, it has certainly taken a beating when some cultures identify the murder of family members as an “honor killing,” and when criminals such as the Mafia call themselves “men of honor.”

I looked it up in the Webster Dictionary and found the words “reputation” and “integrity.” But, honor seems to be more than that. It is similar to the definition of character which is: “what you do when no one is watching.” Again, it must be more than that. So, I researched what some historical figures said about it. Most of them described honor by what it is not.

Thomas Jefferson said, “Nobody can acquire honor by doing what is wrong.” OK, we’ll assume he means you must do what is right or good. The problem may be that by today’s standards those are up for debate.

Complete Article

Robert Evans Wilson, Jr. is an author, humorist, and coach. He works with people who want to achieve more without sacrificing life balance. Contact Robert at www.jumpstartyourmeeting.com

Productivity in the U.S. Probably Cooled, Labor Costs Dropped

2010-05-07T11:12:00.001-04:00

Via BusinessWeek

By Shobhana Chandra

May 6 (Bloomberg) -- The productivity of U.S. workers probably rose in the first quarter at the slowest pace in a year as employers took on staff to meet growing demand, economists said before a report today.

Employment may keep growing as companies such as Timken Co., which slashed payrolls and relied on becoming more efficient to lower expenses and protect profits during the recession, now look to expand as sales improve. The drop in labor costs is also helping limit inflation, giving Federal Reserve policy makers room to keep interest rates near zero.

“Productivity is still pretty good, but we’re likely to see it moderate,” said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “Labor costs are going to remain very modest. The Fed will be on hold for quite some time.”

The Labor Department’s productivity figures are due at 8:30 a.m. in Washington. Economists’ estimates ranged from gains of 1.5 percent to 3.9 percent.

Labor expenses adjusted for the gains in efficiency fell at a 0.7 percent rate after dropping at a 5.9 percent pace the prior quarter, according to the survey median. For all of 2009, labor costs plunged 1.7 percent, the most since records began six decades ago.

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Manufacturing Grows for 9th Straight Month

2010-05-05T09:32:00.002-04:00

Via CNNMoney.com

By Annalyn Censky, staff reporter

NEW YORK (CNNMoney.com) -- The manufacturing sector grew for the ninth consecutive month in April, and at its fastest rate since June 2004, according to a report released Monday.

The Tempe, Ariz.-based Institute for Supply Management (ISM) manufacturing index rose to 60.4 in April, from a March reading of 59.6. Any score above 50 indicates growth in the manufacturing sector.

April's number is slightly better than expected, driven by increases in productivity, new orders and manufacturing jobs. Economists surveyed by Briefing.com were expecting a reading of 60.

"Overall, the recovery in manufacturing continues quite strong, and the signs are positive for continued growth," Norbert Ore, chairman of the ISM's survey committee, said in a release.

Of the 18 industries surveyed in the report, 17 reported growth. Apparel, non-metallic minerals and wood products were among the industries showing the strongest growth.

Complete Article

Volcanic Ash May Weigh on European Economy

2010-04-20T10:46:00.002-04:00

via The New York Times

By JACK EWING

FRANKFURT — The past weekend was definitely not a good time to be a Kenyan flower grower, an Israeli avocado farmer, a package tour operator or anyone else trying to run a business that depends on air transport to or from Europe.

Consider TUI, the largest travel operator in Germany. With all the country’s airports closed because of the danger posed by a cloud of volcanic ash from Iceland, the company, based in Hanover, had to take extraordinary — and costly — steps to bring customers back from Mediterranean vacations.

Late Saturday, TUI flew 540 of its customers from the Spanish island of Mallorca to Barcelona. After staying overnight in hotels paid for by TUI, the vacationers boarded a dozen buses for a 20-hour trip to Frankfurt. From there they continued home by train.

Economists have begun considering when, and to what extent, the extra costs sustained by companies like TUI — not to mention the airlines — will start to damage Europe’s already shaky economy.

Most say the effects will not be catastrophic if the skies clear soon.

There were signs of hope Sunday as airports in Frankfurt, Berlin and some other European cities reopened on a restricted basis, at least temporarily.

But a longer spell of airport closures — or intermittent disruptions in the coming weeks and months as the volcano continues to erupt and winds carry the ash to Europe — could start to take a toll.

“Given that the recovery of the euro-area economy is anyway so weak, it might have an impact,” Daniel Gros, director of the Center for European Policy Studies in Brussels, wrote in an e-mail message.

While most economists are not predicting that the volcano will push Europe back into recession, there is a risk of unexpected consequences that could amplify the economic damage.

Complete Article

Attaboy!!! The Un-Comfort Zone

2010-04-12T10:05:00.001-04:00

THE UN-COMFORT ZONE with Robert Wilson

Seventeen years ago, I became the president of my community association. It was a lively organization with scores of activist members who were busy gentrifying an inner city neighborhood. One of my responsibilities was to deliver a monthly speech and conduct a formal meeting with a loud and raucous crowd.

Over the course of my two year stint, I always spoke from behind the lectern with my hands firmly attached to the sides in a white knuckle grip as I read from my notes. When my term ended, I felt that I might have been a more effective leader if I had some real speaking skills, and if I wasn’t so afraid of being in front of an audience.

So, I joined a Toastmaster’s club and began my training as a public speaker. A year later, I had completed ten speeches and the basic program, but I was still firmly attached to both the lectern and my notes. My mentors encouraged me to work without notes and to move away from the lectern. “At least stand to one side of it!” they cajoled. But I was not about to leave my comfort zone. I was plenty uncomfortable just giving a speech. Besides no one could see my legs shaking behind the lectern.

Then the club held a speech contest. A humorous speaking contest. Now, I can tell jokes, so I was game! Four of us entered the competition, and I managed to win the third place ribbon without venturing an inch beyond the safety of the lectern. I can’t recall who placed second, but I’ll never forget the winner. Les Satterfield talked about an airplane flight and he soared about the room with his arms spread wide and the audience roared in laughter at his comic yarn. Later on, as I watched him receive his shiny gold statuette for First Place, I knew I had to have one. I was motivated... but not quite enough.

Complete Article

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

Compelled by an Idea - The Un-Comfort Zone with Robert Wilson

2010-03-11T11:54:00.004-05:00

Compelled by an Idea by Robert Wilson

I was leaving my last class for the day when I saw my friend, Ken Frankel, working out in the hallway with one of those pistol-grip label makers. I stopped and asked what he was doing.

"The Dean asked me to put the room numbers up in Braille so the blind students can find their classrooms."

As I watched Ken work, I thought of some of the blind students I knew there at Georgia State University. Suddenly the devil got into me and I asked, "Does that thing do the alphabet as well?"
"Yes." Ken replied.

"Excellent! Let's take it over to the men's restroom in the Student Center and put up some graffiti in Braille!"

So we did. The next day we made a point of running into our blind friends, and asking them if they had been keeping up with the graffiti that people were putting up in the stalls.

The typical answer was, "Come on man, why are you asking me that when you know I can't see it?"

So we replied, "Next time you're in there, feel above the toilet paper dispenser."

They did, and within 48 hours every blind student on campus had heard about it. Then they were after us to put up some more! They told us, "This stuff is great!"

Feeling obligated to get some new material, we hit the bars for inspiration. One night we found the mother lode: the men's room at Moe's & Joe's, a 50 year old pub where they never painted over the witticisms scrawled on the walls.

Several mugs of beer and several trips to the restroom later, we filled several sheets of paper with funny bathroom graffiti to take back with us. As we looked at our collection, we came to two conclusions: first that we'd had way too much beer, and second that we should keep collecting graffiti until we had enough for a book.

Little did we know how long that would take! After a few days of active searching we had little to show for our efforts. Somewhat frustrated, we made a decision to just collect new material whenever we happened upon it.

A decade passed, but it was an idea I couldn't forget. It still made me laugh every time I thought of it. I kept the idea alive, and we kept collecting. Finally, 15 years later, our collection was big enough and we found a publisher who agreed with us that it was a very funny idea.

Complete Article

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

Trading Away Productivity

2010-03-08T09:26:00.002-05:00

via The New York Times

By ALAN TONELSON and KEVIN L. KEARNS
Washington

FOR a quarter-century, American economic policy has assumed that the keys to durable national prosperity are deregulation, free trade and a swift transition to a post-industrial, services-dominated future.

Such policies, advocates say, drive innovation, which leads to enormous labor productivity and wage gains — more than enough, supposedly, to make up for the labor disruptions that accompany free trade and de-industrialization.

In reality, though, wage gains for the average worker have lagged behind productivity since the early 1980s, a situation that free-traders usually attribute to workers failing to retrain themselves after seeing their jobs outsourced.

But what if wages lag because productivity itself is being grossly overstated, especially in the nation’s manufacturing sector? Then, suddenly, a cornerstone of American economic policy would begin to crumble.

Productivity measures how many worker hours are needed for a given unit of output during a given time period; when hours fall relative to output, labor productivity increases. In 2009, the data show, Americans needed 40 percent fewer hours to produce the same unit of output as in 1980.

But there’s a problem: labor productivity figures, which are calculated by the Labor Department, count only worker hours in America, even though American-owned factories and labs have been steadily transplanted overseas, and foreign workers have contributed significantly to the final products counted in productivity measures.

The result is an apparent drop in the number of worker hours required to produce goods — and thus increased productivity. But actually, the total number of worker hours does not necessarily change.

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Sometimes You Have to Rip the Cover Off the Book

2010-02-11T12:29:00.003-05:00

THE UN-COMFORT ZONE with Robert Wilson

On a summer weekend in 1977, my friend Tony and I made plans to go waterskiing. When he picked me up there were two people in the car that I did not know. He introduced his new girlfriend Sue, and her brother Bubba.

Bubba was the quintessential redneck. Within minutes of getting on the boat, he stuffed a wad of chewing tobacco the size of a baseball in his cheek, then chugged several beers. In less than an hour we were dealing with an irritable drunk. He belched loudly, spit constantly, complained incessantly, and couldn’t string two words together without inserting a profanity. In short, Bubba made our visit to the lake completely unpleasant. Eventually he passed out in the back of the boat and we enjoyed the rest of the day.

My opinion of Bubba’s character, talent and intelligence could not have been lower. I looked upon him as a total loser. A dimwit who would never amount to anything.

At the end of the day, Tony drove Sue and Bubba home first. When we arrived at their home, Bubba was awake and somewhat sober. Sue asked Tony to come inside and see the new dress she’d bought. Then she turned to Bubba and said, “Why don’t you show Robert your chickens?”

Complete Article

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.

Conference Board Finds Widening Productivity Gaps

2010-01-21T15:18:00.004-05:00

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

2010-01-12T16:25:00.003-05:00

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.

Complete Article

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?

2009-12-23T10:49:00.001-05:00

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

2009-12-21T10:34:00.002-05:00

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

2009-12-11T08:40:00.006-05:00

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.

Complete Article

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

2009-12-07T10:59:00.002-05:00

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?

Complete Article

Manufacturing Troubles Remain a Drag on Recovery, Trade & Jobs

2009-12-07T10:10:00.002-05:00

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.

Complete Article

CEOs Cautious on Rebuilding Staff

2009-11-17T12:37:00.002-05:00

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

2009-11-11T08:54:00.003-05:00

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.

Complete Article

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

2009-10-12T14:19:00.002-04:00

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.

Complete Article

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

2009-10-12T14:06:00.002-04:00

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.”

Complete Article

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

2009-10-02T14:19:00.001-04:00

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???

Swiss Topple U.S. as Most Competitive Economy: WEF

2009-09-16T14:04:00.001-04:00

VIA REUTERS

By Sven Egenter

GENEVA (Reuters) - Switzerland knocked the United States off the position as the world's most competitive economy as the crash of the U.S. banking system left it more exposed to some long-standing weaknesses, a report said on Tuesday.

The World Economic Forum's global competitiveness report 2009/2010 showed economies with a large focus on financial services such as the U.S., Britain or Iceland were the losers of the crisis.

The U.S. as the world's largest economy lost last year's strong lead, slipping to number two for the first time since the introduction of the index in its current form in 2004.

"We have been expecting for some time that it may lose its top-position. There are a number of imbalances that have been building up," said Jennifer Blanke, Head of the WEF's Global Competitiveness Network.

"There are problems on the financial market that we were not aware of before. These countries (like the U.S. and Britain) are getting penalized now," she said.

Trust in Swiss banks also declined. But in the assessment of banks' soundness, the Alpine country still ranked 44th. U.S. banks fell to 108 -- right behind Tanzania -- and British banks to 126 in the ranking, now topped by Canada's banks.

The WEF bases its assessment on a range of factors, key for any country to prosper. The index includes economic data such as growth but also health data or the number of internet users.

The study also factors in a survey among business leaders, assessing for example the government's efficiency or the flexibility of the labor market.

Complete Article

The Un-Comfort Zone - Leadership vs. Power

2009-09-15T15:38:00.002-04:00

THE UN-COMFORT ZONE with Robert Wilson

King George III asked Benjamin West, his American painter, what George Washington would do if he prevailed in the Revolutionary War. West replied, “He will return to his farm.” The British monarch incredulously said, “If he does that, he will be the greatest man in the world.” On December 23, 1783 Washington did just that and retired to Mount Vernon – despite the encouragement of many to stay in power. Despite the willingness of Americans to crown him king. Thirteen years later, he would do it once again.

In 1787, Washington was coaxed back to Philadelphia to attend the Constitutional Convention. While there he provided the leadership necessary to get the fractious delegates to settle down and complete the work of designing a new constitution. Afterwards, in 1789, he was elected the first President of the United States. He reluctantly ran for a second term in 1792. He refused to run for a third term, setting a precedent that lasted 150 years, and retired once again to his farm.

Abraham Lincoln said, “If you want to test a man’s character – give him power.” George Washington passed that test. Twice in his life he walked away from power and proved that he was indeed the greatest man in the world. He demonstrated that leadership is something that you give – not take – and that power should be used responsibly.

Washington died in 1799, the year that Napoleon Bonaparte became the ruler of France. In contrast to Washington, Napoleon could not acquire enough power. His legendary lust for command drove him to take over much of Europe. “Power is my mistress,” he once claimed, “I have worked too hard at her conquest to allow anyone to take her away from me.”

Years later, having lost all power and living in exile, he lamented "They wanted me to be another Washington."

Complete Article

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

Thrown Into The Driver's Seat - The UnComfort Zone with Robert Wilson

2009-08-10T12:49:00.003-04:00

By Robert Wilson

On June 29, 1863, a 23 year old First Lieutenant received an unexpected promotion. The freckle faced, strawberry blonde, who graduated at the bottom of his class at West Point, was elevated directly to the rank of Brigadier General in the Union Army. He completely skipped over the traditional ranks in between of Captain, Major, and Colonel. As you can imagine such a promotion was met with skepticism, dismay, and envy by his former peers and superiors. Especially at a time when the South was winning against the North during the American Civil War.

Major General Alfred Pleasonton, who promoted the boy, saw his gamble put to the test just four days later in the Battle of Gettysburg. The young general was put in charge of the Michigan Cavalry and tasked with keeping Confederate General Jeb Stuart from attacking the Union Army’s rear.

Was he up to the task? Could he keep that dubious star on his shoulder that so many wanted removed? Motivated by the desire to prove himself, George Armstrong Custer, his gleaming saber outstretched in front of him, led the cavalry charge and held the Union line. His successful leadership served as a crucial contribution to the battle that was the turning point in the North winning the war.

When leadership is thrust upon us, many of us are motivated to rise to the occasion. Sometimes, however, leadership must rise in a vacuum. What motivates us to become leaders when there are none?

Complete Article

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.

Turn Off Outlook's New-Message Alerts

2009-07-24T11:39:00.001-04:00

Via PC World

by Rick Broida

Wait, did you read that right? Turn off Outlook's you've-got-mail alerts? Why on Earth would you want to do that? In a word: productivity.

Think about it: New messages are constantly flowing into your inbox, and by default Outlook alerts you to each and every message.

That's not much different from a co-worker popping his head into your office every five minutes to ask a question. Talk about productivity-killing interruptions!

Consequently, you might want to try life without the alerts. Disabling them is easier than you might think:

1. Choose Tools, Options, and click E-mail Options.

2. Click Advanced E-Mail Options.

3. Uncheck the box next to Play a sound.

4. Uncheck the box next to Briefly change the mouse cursor.

5. Uncheck the box next to Show an envelope icon in the notification area.

6. Uncheck the box next to Display a New Mail Desktop Alert.

Click OK and you're done! Outlook will continue to fetch (or receive) new mail at regularly scheduled intervals, but without any of the usual interruptions.

In other words, you can review your inbox on your schedule, not Outlook's. Give this a try, then let me know if you prefer working this way.

Complete Article

More Powerful Than You Know

2009-07-17T15:18:00.004-04:00

THE UN-COMFORT ZONE with Robert Wilson

“Writing is not a job; it’s a hobby!” thundered my father when I told him my plans for college. “You need to get a profession: medicine, law, engineering or accounting.”

I cheerlessly acquiesced and enrolled in a Pre-Med program, but at the end of my first year, after struggling through Chemistry, I changed my major to Philosophy. When I told Dad, he grunted, “That and a dime will get you a cup of coffee.” He passed away shortly after that but his words echoed in the back of my mind for years.

After graduation I searched for a job in writing. At the same time, I wrote short stories like crazy, and sent them off to dozens of magazines. Years passed and I failed to find a job in writing, so I supported myself by waiting tables and bartending. Meanwhile, rejection letters from the magazines began piling up, and I was beginning to get discouraged.

Then one day, I met a friend for a beer in a bar near the campus of my alma mater. When I visited the restroom, some graffiti written on the wall with an arrow pointing to the toilet paper dispenser caught my eye. It read: “Bachelor of Arts Degrees – take only one, please!” Rather than laugh, I grimaced and thought, “Boy, does that sound like my Dad.”

Five years had gone by, and other than a few freelance jobs writing advertising copy, I had not made a penny from writing. I was beginning to re-think my life, when I recalled the encouraging words from my ninth grade English teacher.

Complete Article

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 Sleep, Perchance to Analyze

2009-07-16T09:27:00.001-04:00

Via The New York Times

By DAVID POGUE

In the last nine years, I’ve reviewed nearly 1,000 products for The New York Times. Can you guess what every single one of them has had in common?

All of them were intended for use while you’re awake.

Today, the exception.

Studies show that about half of all Americans don’t get the recommended amount of sleep. ( For adults it’s seven to nine hours.) And as we stumble our way through each day, groggy and cranky, we pay a terrible price in our relationships, productivity and health.

Science has learned all kinds of things about sleep. We now know, for example, that during the night, we experience several cycles of different kinds of sleep. There’s REM (rapid eye-movement) sleep, which restores and refreshes our brains. There’s deep sleep, which restores and refreshes our muscles. There’s light sleep, which is better than nothing. And there are all those times we wake up but don’t even remember we slept.

Now, to find out why you feel so wretched in the morning, you could go to a sleep lab, pay thousands of dollars, and spend the night hooked up to wires and sensors. Or you could pay $400 and get yourself a Zeo alarm clock.

That’s expensive, sure, but this one does a few things your basic Wal-Mart special doesn’t do.

Complete Article

Shock! Offices Lose Productivity to Facebook - study

2009-07-15T14:47:00.005-04:00

Via Reuters Blogs - USA

Posted by: Yinka Adegoke

We think you saw this one coming: Employers are losing a whopping 1.5 workers per 100 in employee productivity to the social networking phenomenon that is Facebook.

This number was uncovered by the clever folk at Nucleus Research, who surveyed 237 randomly selected office workers. They discovered that some of you spend more time than you probably should poking, adding and making inane comments on friends’ pages.

In fact some of you may be horrified to learn that Nucleus is advising corporations to consider restricting Facebook access at work to reclaim that productivity — all the more important in a global recession and rising unemployment they say.

Among the findings from Nucleus’ interviews with said randomly selected workers:

•Nearly two-thirds of those who have Facebook access visit the site during working hours.
•Those who visit Facebook at work do so for an average of 15 minutes each day.
•87 percent of those who use Facebook at work couldn’t define a clear business reason for using it.
•Of those who do visit Facebook at work, 6 percent never use it anywhere else, meaning one in every 33 workers built their entire Facebook profile during work hours.
•There are also serious security concerns as IT departments can’t monitor Facebook messages.

It wasn’t immediately clear if Nucleus’s survey took lunch-break time into account (some people might only visit Facebook during break-time). Either way, one imagines if a survey of 237 workers can ever be used as an adequate sample, then there will be a lot of unhappy workers out there in the office world, should all those IT departments take Nucleus’ advice. As Nucleus concludes in its press release:

Companies should evaluate their Facebook policy and the cost to the organization in allowing access to Facebook, as today blocking Facebook may actually result in a 1.5 percent gain in productivity.

In other words blocking Facebook will give you 1.5 more workers for every 100 workers. Nice.

The Hawthorne Effect

2009-07-08T09:57:00.001-04:00

Via Poker News

By Dr. Tim Lavalli

The Hawthorne Effect describes an actual mistake discovered by some researchers. The original study was attempting to discover the relationship between worker productivity and working environment. The first variable introduced was lighting. The question was: would better lighting mean higher worker output, and then would poorer levels of lighting reduce worker output?

At first the data was all over the board, there was higher productivity with less light and then more with more light and then even more with normal lighting. It began to seem like lighting made no difference, yet the worker productivity was up and then down based on something else, or was it nothing at all? This sort of information is not uncommon in research settings because researchers have not controlled for all of the elements in the environment.

At some point one of the junior assistant researchers noticed that the productivity levels of the workers went up when the researchers were observing them. It didn’t matter what the level of lighting was, it was the attention of the researcher — even the mere presence of the researcher — that was affecting the productivity of the workers. Hence, we have the Hawthorne Effect, which is defined as changes in behavior3 by test participants related to the attention they are receiving from the researchers.

Complete Article

What's in Pogue's Travel Bag? Literally.

2009-06-26T10:22:00.002-04:00

Since Efficient Traveling is Productivity and vice versa, I thought this article was great for our APS Blog. Happy Traveling!! Bob

Via New York Times

By David Pogue

I'm always surprised at how many people seem to like reading about what hardware and software I use. Last week's "Pogue's Productivity Secrets" e-column, for example, got blogged and passed around far more than I would have expected.

On a plane yesterday, I was flipping through an in-flight magazine and saw one of those "What's in your bag?" photo features, where they have some celebrity dump out her purse and provide little descriptions (no doubt after careful pruning and arranging by a PR person).

Want me to dump out MY bag?

I travel a ridiculous amount, so I've thought a lot about, and spent a lot of time refining, what I carry and how I carry it.

It starts with a Timbuk2 bike-messenger bag, which I sling over my shoulder whenever I have to dash out. The inner wall is padded on both sides for a laptop; since the bag's flap flips right open, it's extremely easy for me to get to the laptop when, for example, I need to look up my frequent flyer number.

I keep this bag preloaded and ready to go. In the main compartment, I carry:

Complete Article

US Manufacturing Must Drive Recovery, Summit told AFP

2009-06-17T11:39:00.001-04:00

via AFP

DETROIT, Michigan (AFP) — A revived manufacturing sector is critical to leading a recovery of the slumping US economy, underscoring the need for new policies, business leaders told a national economic summit.

The second day Tuesday of the Detroit, Michigan summit seeking an economic strategy offered more comments on the critical importance of the industrial sector in view of the global crisis.

"One of the lessons we have learned from the crisis is that you cannot create create wealth in an economy simply by spinning things around and around," said Jayson Myers, president of the Canadian Manufacturers and Exporters Association.

"You create wealth by building things people want to buy."

Those comments were echoed by others.

"Prosperity comes from building, creating and producing," said Chip McClure, CEO of auto parts maker ArvinMeritor.

"Can we sustain commerce based on financial engineering over real engineering? Simple answer, no way."

Complete Article

U.S. productivity Growth Points to Higher Profits

2009-06-15T12:12:00.002-04:00

via National Post

By Jacqueline Thorpe

We have commented that the one thing the U.S. economy has going for it that many others don't is its ability to churn out strong productivity growth — even in the face of a brutal recession. In the first quarter, the United States achieved productivity growth, or output per hour per worker, of an annualized 1.6%, as companies slashed costs and jobs in reaction to the downturn. Painful for sure, but essential to lay the groundwork for recovery.

In report on Thursday, Barclays Capital says that productivity growth is the silver lining of this recession that will lead to wider profit margins and help sustain the recovery in equities.
Tim Bond, head of global asset allocation at Barclays Capital, says the 4.8 million Americans that have lost their jobs in this recession are unlikely to be hired back in one fell swoop. As is usually the case, employment will lag output, resulting in the typical early-cycle phenomena of rising productivity growth and falling unit labour costs.

While many analysts say the U.S. recovery will be weak, Mr. Bond argues that given the epic scale of inventory liquidation, the rise in output could be quite smart. Productivity will increase even more and labour costs will fall. He forecasts annualized productivity could rise as much as 2% in the first few quarters of recovery.

"Since unit labour costs are the main component of business profit margins, the outlook is strongly biased towards an unusually extensive widening of profit margins," Mr. Bond said in a note. "The early cycle revival in profits should therefore be stronger than is typically the case."

On the basis of consensus earnings forecasts, the S&P 500 currently trades at a 14.5 12-month forward PE ratio (using a four-quarter moving sum of earnings).

However if he revises earnings forecasts to take into account stronger productivity growth and wider profit margins, the forward PE ratio falls to 12.5, from which he infers "the market may have further immediate upside of 15-20%, as the more benign outlook for profits begins to be discounted."

U.S. Economy: Jobless Claims Fall, Productivity Rises

2009-06-05T11:26:00.002-04:00

Via Bloomberg

By Shobhana Chandra & Bob Willis

Fewer American workers filed claims for jobless benefits last week, signaling that the worst phase of the employment slump has passed.

Initial applications for unemployment insurance fell by 4,000 to 621,000 in the week ended May 30, in line with forecasts, figures from the Labor Department showed today in Washington. Another Labor report showed worker productivity rose more in the first quarter than previously estimated.

Greater efficiency is contributing to an improvement in profits that will likely lead to fewer job cuts in coming months, analysts said. Companies such as United Technologies Corp. are among those that have slashed payrolls to control labor costs and boost earnings, a step that may help get the economy out of the worst recession in half a century.

“Employers are far advanced in the pace of job cuts,” said John Herrmann, president of Herrmann Forecasting in Summit, New Jersey. Firings “should slow materially” in coming months, he said.

The claims report also showed the number of people collecting unemployment insurance fell to 6.74 million in the week ended May 23 from 6.75 million the prior week. It was the first decrease in almost five months, breaking a string of 17 consecutive records.

Complete Article

Engaging Gay Workers Increased Productivity, study suggests

2009-06-04T11:09:00.002-04:00

Via CANADA.COM

by Amy Husser, Canwest News Service

Corporate Canada can improve productivity and decrease turnover if more active steps are taken to engage gay workers, results of a study suggest.

According to research released Wednesday by Catalyst — a non-profit organization that promotes diversity in the workplace — "invisible" lesbian, gay, bisexual and transgender (LGBT) workers are likely to be less engaged than their openly gay counterparts because of the time spent "self-editing" and an associated general lack of authenticity.

"When employees are working in an environment where it doesn't feel inclusive . . . that creates a situation where there is invisible diversity within an organization that an employer may not even be aware of," said Deborah Gillis, vice-president, North America of Catalyst. "(The employer) then doesn't have the opportunity to tap into that diversity and support those employees so they can contribute fully to the success of the business and advance in their own careers."

The study found that LGBT employees working in organizations with effective and inclusive diversity practices reported better workplace relationships, greater organization commitment and greater career satisfaction.

Complete Article

Ahead of the Bell: Productivity and Labor Costs

2009-06-04T11:04:00.002-04:00

Via FORBES

WASHINGTON -- Worker productivity, the key ingredient to rising living standards, likely grew at a faster pace in the first quarter than the government previously estimated, while labor costs increased less.

Productivity, the amount of output per hour of work, is expected to increase at an annual rate of 1.2 percent in the January-March period, according to economists surveyed by Thomson Reuters. That's up from the government's estimate of 0.8 percent last month and much better than the 0.6 percent drop in last year's fourth quarter. The Labor Dept. is scheduled to release the report at 8:30 a.m. EDT.

Higher productivity is crucial for rising living standards because workers that produce more can earn higher wages without forcing companies to raise prices.

Productivity grew in the first quarter even as economic output plummeted, because the number of hours worked fell even faster. The government estimated in May that nonfarm business output fell by 8.2 percent in the first quarter, while hours worked fell by 9 percent.

Complete Article

Does It Pay to Reduce Pay?

2009-06-01T15:04:00.001-04:00

Via Business Week

By Jena McGregor

Once considered off limits for salaried managers and professionals, base pay reductions are becoming increasingly common in today's brutal recession. Many human resources experts believe the recent moves by major companies—household names such as FedEx (FDX), Hewlett-Packard (HPQ) and Saks Fifth Avenue are all trimming salaries—could present perils when the economy turns back up again. They argue that star performers could bolt to other companies and that morale and productivity could suffer.

But others see an upside to reducing pay rather than making more layoffs. One of them is Dan Ariely, the author of the popular behavioral economics book Predictably Irrational, and a professor at Duke University. He believes that in the right environment, pay cuts can even boost morale and loyalty. He spoke recently with Management Editor Jena McGregor. Below is an edited excerpt of their conversation:

You're a behavioral economist. How do you think people will respond to pay cuts when the economy turns back around?

People hate pay reductions as a procedure. We don't want to think that as we get older, we get paid less and less and less. Then our productivity will go down and down and down. But [the current salary cuts] are supposed to be a one-time thing, and that's more acceptable.

It also helps that salary is very much what we call a positional good. At some level you care more about how much money you make compared with other people than the absolute level. For people who struggle, of course, the absolute level of how much they make is important. But for people at high positions, it's basically a chase to the top. We see other people making more, we feel bad—not so much because we need the money, but just because it tells us something about who we are. So if you reduce pay at the whole company, you in a sense keep the relative position the same.

Complete Article

Impact of Overactive Bladder on Work Productivity in the United States

2009-06-01T14:45:00.002-04:00

Via Uro Today

By Chris Sexton, Center for Health Outcomes Research
United BioSource Corporation

Little research has focused on the impact of overactive bladder (OAB) on work productivity. Consequently, the impact of OAB and other lower urinary tract symptoms (LUTS) on work productivity was evaluated in employed men and women aged 40 to 65 in the United States.

Data from a population-based, cross-sectional Internet survey were used to examine the impact of OAB symptoms on work productivity. US participants aged 40 to 65 working full- or part-time were included in the analysis. Participants were asked about the incidence of OAB and other LUTS and a series of questions about work productivity.

Descriptive statistics and linear and logistic regressions were used to evaluate outcome differences for men and women by the OAB groups of no/minimal symptoms, continent OAB, and incontinent OAB.

The response rate was 60%, and a total of 2876 men and 2820 women were analyzed. Men and women with incontinent OAB reported the lowest levels of work productivity and highest rates of daily work interference. Storage symptoms associated with OAB were most consistently associated with work productivity outcomes; however, significant associations were also found for other storage, voiding, and postmicturition LUTS.

In this large US population-based study, OAB was highly prevalent and was associated with lower levels of work productivity. These findings add to the literature documenting the burden of OAB and other LUTS, underscoring the need for increased screening and treatment.

Need Urgently: More Creativeity from the Business Class

2009-05-29T14:05:00.002-04:00

Via The Globe and Mail

by Jeffrey Simpson

Canada has a serious productivity problem. The statistical evidence is unambiguous and of long standing.”

Heard that before, or versions thereof? Probably not, unless you're a policy wonk. Productivity is a word editors dislike, television disdains, politicians fear, and from which the general public recoils.

It's the great Canadian bore, right up there with Senate reform, equalization and the latest iteration of Quebec secession, tedious for readers, too complicated for television, abstract as a concept, and scary for citizens who think productivity improvements will mean working more for less, or working not at all.

But there it is, again: another learned group telling us that we've got a productivity problem. This time, it's the Council of Canadian Academies (from which the opening quote is taken), warning and cajoling the country, or trying to, about this Achilles heel of our future.

Without productivity improvements, future economic prospects will be, well, middling, especially not exclusively because as the population ages a smaller share of the population will be working to support the larger share in retirement.

Then there's the competition with China, India and Brazil, and the uncomfortable fact that we have hitched our star to the United States, whose own productivity is slumping. That our productivity consistently lags that of the U.S. is now especially ominous, given that country's massive economic problems.

In Ottawa today, a clutch of university presidents, corporate types and civil servants will put their heads together to ponder the role of research and innovation in Canada's economy. The presidents will want more money for their institutions - they are paid to make this pitch, and it is a good one - but the Council of Canadian Academies report points the finger of blame squarely at Canadian business.

Complete Article

Getting Healthy, With a Little Help From the Boss

2009-05-26T09:59:00.002-04:00

Via The New York Times

by Lesley Alderman

Once upon a time, corporations offered generous health benefits as a way to woo employees into their ranks. Now, most companies have turned from amorous suitors into stern parents — shifting more costs, and more responsibilities, to their employees.

According to a January survey by the benefits consulting firm Hewitt Associates, nearly two-thirds of large employers planned to transfer more costs to employees. At the same time, one-third planned to put greater emphasis on wellness plans — programs that encourage employees to adopt healthier lifestyles. (So long, Big Macs).

Congress is climbing onto the wellness bandwagon, too. Senator Tom Harkin, the Iowa Democrat who is a leader of the Congressional health reform movement, recently proposed giving tax incentives to companies that offer comprehensive wellness programs to their employees.

The focus on healthier lifestyles makes sense. Unhealthy employees use significantly more medical services than healthy ones and cost employers more money.

Complete Article

Decline in American Mining Productivity

2009-05-22T09:57:00.005-04:00

Via Reliable Plant

Labor productivity, defined as output per hour, fell 6.4 percent in the overall United States mining sector between 2006 and 2007, the U.S. Department of Labor's Bureau of Labor Statistics reported.

This drop was led by a large productivity decline of 15.4 percent in metal ore mining (NAICS 2122), where hours rose rapidly.

Unit labor costs rose in all of the mining industries in 2007. Unit labor costs represent the cost of labor required to produce one unit of output.

Can we end the recession simply by trying harder?

2009-05-21T15:13:00.003-04:00

Via Newsweek

The Avis Economy - Can we end the recession simply by trying harder?

by Daniel Gross

What's it going to take to get the economy out of its rut? Tax cuts, says the right. Public investments, says the left. Some of both, says the center. But after listening to a recent discussion about the recent and distant history of innovation and growth between White House economic adviser Lawrence Summers, former Fed chief Alan Greenspan, and Harold Evans, author of They Made America: From the Steam Engine to the Search Engine, I began to think that tax cuts and stimulus spending may be secondary. If history is any guide, in order to get the economy back to the level of growth that we'd all like to see, we're going to need a substantial boost in productivity. And prolonged periods of high growth have always been spurred by a game-changing megatrend that ultimately touched every segment of the economy: the steam engine, electricity, railroads, the availability of credit, the microchip, and most recently, the Internet, globalization, and cheap money. Finally, when you're dealing with an economy the size of the United States, you need a pretty powerful lever to create meaningful growth. Having a boom in a few sectors likely won't be enough.

So it looks like we're in trouble. Right now, it's difficult to sense the Next Big Thing. (Of course, that's usually how it goes. Back in 1992, when the economy seemed mired in the mud, President-elect Clinton summoned the nation's best economic minds to a summit in Little Rock, Ark. In the voluminous briefing papers prepared for the event, the words the Internet likely appeared rarely, if at all.)

Complete Article

Labor Productivity Rose in two-thirds of Industries

2009-05-21T15:07:00.001-04:00

Via Reliable Plant

Labor productivity, defined as output per hour, rose in 66 percent of the detailed service-providing and mining industries in 2007, about the same as in 2006, the U.S. Department of Labor’s Bureau of Labor Statistics reported on May 20. Unit labor costs, which reflect hourly compensation and productivity, rose in 70 percent of the industries, compared to 76 percent in 2006.

Over the longer period, 1987 to 2007, labor productivity increased in 86 percent of the industries studied. Unit labor costs rose in 78 percent of the industries.

Productivity and cost measures for three industries are presented for the first time: support activities for mining (NAICS 213), accommodation (NAICS 721), and reupholstery and furniture repair (NAICS 81142). The addition of labor productivity measures for accommodation (NAICS 721), along with the previously published BLS measures for food services and drinking places (NAICS 722), completes coverage of the accommodation and food services sector (NAICS 72). Measures for NAICS 72 are also published here for the first time.

Complete Article

Information Source: The World Economic Forum

2009-05-19T12:29:00.006-04:00

by Robert A. Jacobson, Chairman, Board of Directors
Association of Productivity Specialists

The World Economic Forum is an independent international organization, the source for competition and economic information on countries around the world, committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests.

The World Economic Forum

Be A Copy Cat from The Un-Comfort Zone

2009-05-18T11:53:00.002-04:00

THE UN-COMFORT ZONE with Robert Wilson

Last month I wrote about Self-Efficacy which is our belief in our ability to achieve what we set out to accomplish. I wrote about how it is the biggest part of achievement, and that we acquire a sense of self-efficacy in four ways: personal experience, observation of others, a positive mental attitude, and from the encouragement of others. This month I'd like to expand on how observing other people achieve motivates us to accomplish more.

Some of our goals require us to reach a mental threshold; some are more physical; while others are a combination of the two. One of my favorite forms of exercise and recreation is mountain biking. I get out once a week and hit the trails. Some of the trails have obstacle course-like obstructions called technical features; they are basically log and rock piles you ride over for an additional skill challenge. One trail has several advanced features including a seesaw.
I rode past this particular challenge for weeks; wanting to do it, but frankly too scared to try.

Complete Article

"Tell me and I forget; Show me and I remember; Involve me and I understand."

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 call 404-255-4924 or visit www.jumpstartyourmeeting.com

Competiveness: The Common Language

2009-05-18T11:48:00.002-04:00

Via Times of Malta

from Vince Farrugia's blog

“ Today it’s essential we manage our economy in a measured way. This is my gospel ”
Measuring the Maltese economy's performance against our competitors is very important. The world Economic Forum Global Competitiveness Index provides the instrument to enable us to make this comparison. Unfortunately, in Malta we tend to compare with our own performance in a previous period. This is not enough as we might, in practice, be moving at a slower pace when compared with our competitors.

Competitiveness is something we have to work on all the time. Government must have this as its basic philosophy. It is not acceptable that the World Economic Forum places Malta at 52nd from 131 economies, and within the list of the most problematic factors for doing business in Malta we continue to find areas that are within the capabilities of the public service to resolve. Topping the list of issues that are hampering Malta's global competitiveness is the inefficient Government bureaucracy. Access to finance is a high second. Tax rates, restrictive labour regulations, inadequate educated workforce, tax regulations and inflation are also prime issues. These are issues that we must resolve. It's time someone starts using the hard stick. Small steps forward are not enough.

Complete Article

Labour Productivity Slides as Economy Turns Down

2009-05-15T08:44:00.003-04:00

Via Canada.com

By John Morrissy, Canwest News Service

OTTAWA- Canadians were spending more time at work, yet the country's productivity fell in 2008, Statistics Canada said in a report Wednesday.

Nationally, productivity fell 0.5 per cent over the course of the year despite the volume of hours of work rising in every province.

``What you're seeing over the course of 2008 is some slacking off in capacity utilization,'' said Finn Poschmann, vice-president of research at the C.D. Howe Institute, referring to the effect of plants reducing shifts to meet lower demand.

``Productivity is closely tied to where you are in the business cycle, so as the cycle turns down, your productivity turns down.''

If, for instance, worked rises five per cent and output rises four per cent, the country would still log a one per cent decline in productivity.

Declining commodity prices weighed in, as a reduction in the value of goods produced also lowers productivity levels, Poschmann said.

As well, as prices declined, so did the volume of commodities produced, particularly in Alberta, where natural gas prices plummeted, he said.

Complete Article

Germany Fears Competitiveness Gap Within Euro Area

2009-05-01T10:22:00.004-04:00

Via Guardian News and Media Limited

Reporting by Paul Taylor; editing by Stephen Nisbet

BERLIN, April 29 (Reuters) - Germany is worried at a growing gap in economic competitiveness among member states of the euro single currency area, Finance Minister Peer Steinbrueck said on Wednesday.

"The good news is that we are not losing competitiveness in Europe but we fear that other countries are losing competitiveness in Europe. We fear this because it could lead to economic divergence in Europe and within the euro zone," he told visiting European journalists. Steinbrueck was speaking on the day Berlin officially forecast that the German economy would contract by a record 6 percent this year and grow by a mere 0.5 percent in 2010.

The huge slump, by far the deepest recession in Germany's post-war history, was not surprising since the country was so dependent on exports, which accounted for more than 40 percent of gross domestic product (GDP), he said.

The minister did not name countries that were becoming less competitive but European Commission studies have highlighted how countries such as Italy and Greece have lost competitiveness in the decade since the euro was launched while German unit labour costs have remained stable due to wage restraint and welfare reforms. Steinbrueck said Berlin was making progress towards setting up a system of bad banks to remove toxic assets from banks' balance sheets and allow for losses to be covered over time by a mixture of provisions by the banks and taxpayer guarantees.

Complete Article

China Edges Up On UNIDO's Rankings Of Industrial Competitiveness

2009-04-29T11:56:00.004-04:00

Via China View

BEIJING, April 27 (Xinhua) -- Singapore led the world in industrial competitiveness while China rose five places up from the 31st in 2000 to the 26th in 2005 in the rankings of the competitiveness industrial performance (CIP) index, according to the Industrial Development Report 2009 released here on Monday by the United Nations Industrial Development Organization (UNIDO.

The Industrial Development Report 2009 said China's CIP has overtaken the Philippines and is approaching Thailand. In 2000, China ranked the 31st place by scoring 0.387 points in CIP index value. The value rose to 0.418 points in 2005, when data collection ended.

The UNIDO said the CIP index, which measures the ability of countries to produce and export competitively, was used to help assess national industrial performance in the global economy.

Complete Article

Staffing Up, Productivity Down

2009-04-20T14:04:00.003-04:00

Via Inside Higher Ed

by Doug Lederman

Colleges' enrollments have risen dramatically in the past 20 years, so it's not surprising -- and arguably is even appropriate -- that the size of their staffs has grown, too. But the rate of growth has come among support staff employees rather than instructors and has outstripped the enrollment growth, resulting in a decline in productivity over that time, a new report asserts.

The report by the Center for College Affordability and Productivity, "Trends in the Higher Education Labor Force: Identifying Changes in Worker Composition and Productivity," analyzes federal employment data from postsecondary institutions showing that that higher education workforce grew by about half from 1987 to 2007, or a little over a million jobs. More than 60 percent of those jobs were in instructional staff, but the vast majority of those jobs were part time.

So in the center's analysis, the number of full-time equivalent instructional positions grew by about 53 percent, while the number of support staff jobs grew by 100 percent, fully doubling, over that time. The number of full-time equivalent management jobs grew by about half, while the number of clerical and maintenance positions actually shrunk over 20 years.

The number of full-time employees relative to the number of students increased slightly in all sectors except for four-year nonprofit colleges, but when the center looks specifically at "back office" (management and support) as opposed to "front line" (instructional) employees, the growth is much sharper -- increasing by at least 30 percent in every sector.

Complete Article

Productivity: Yes, we can (go paperless)!

2009-04-16T09:07:00.005-04:00

Via Canadian Business Online

From PROFIT magazine, May 2009

Achieving the paperless office is no longer just a dream — it's a real competitive advantage.

By Laura Pratt

It would have been a ridiculous job posting: “Security firm seeks person to keep track of paper.” But three years ago, such a hiring seemed inevitable for Michael Jagger, CEO of Vancouver-based Provident Security. That’s because in the 10 years since starting his one-man security guard operation in 1996, the firm had exploded into a full-service security provider with more than 200 employees and 4,500 customers. In the blink of an eye, it seemed, Jagger was drowning in paper and administrivia when he should have been focusing on business strategies.

“If you don’t have control over every aspect of your business when you have a few thousand clients, what will happen when you are 10—or a hundred—times bigger?” asks Jagger. “To replicate the client experience we offered when we started out, we knew we’d need to spend our time and money on customer service, not administration.” So, in 2006, he began pulling the plug on his photocopiers, fax machines and printers.

When the “paperless office” buzz first sounded in the mid-1970s, office computers were clunky and the law didn’t recognize digitally signed documents. But today, it is possible to run a business sans paper: most offices thrum with network-linked computers loaded with software that lets users create, read, duplicate and distribute digital documents, the latest scanners are modern miracles and the digital signature is ratified. Yet, more than ever, we live in a world that encourages hard-copy proof, proliferated by the rock-bottom prices of printers. In the eyes of most businesses, operating without paper is impossible; but a handful of entrepreneurs are discovering that such a corporate change in today’s economic climate is not only possible, it’s preferable.

Complete Article

Hong Kong Still Most Competitive Chinese City

2009-04-15T08:35:00.001-04:00

Via People's Daily Online

Hong Kong has retained its position as the most competitive Chinese city in 2009, according to a report by the Chinese Academy of Social Sciences (CASS) published on April 14, 2009.

The report, entitled the "2009 Chinese City Competitiveness Blue Book: A Report on Chinese Cities' Competitiveness," compared the all-round competitiveness of 294 prefecture-level and above cities around the country.

The ten cities with the strongest competitiveness in descending order are: Hong Kong, Shenzhen, Shanghai, Beijing, Taipei, Guangzhou, Qingdao, Tianjin, Suzhou and Kaohsiung.

The top 10 cities are situated in four regions, with three in the Pearl River Delta, two in Yangtze River Delta, three in the region around the Bohai Sea, and two in Taiwan.

The report was completed by a group of experts led by Dr. Ni Pengfei, from the Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences.

The group was made up of competitiveness experts from four places on either sides of the Strait, as well as hundreds of experts from renowned domestic universities, authoritative statistical authorities and local scientific research institutes. Reporters learned that the blue book will be published in Hong Kong on April 15.

Complete Article

Communication Key Productivty Factor: Study

2009-04-14T10:55:00.004-04:00

via Trade Arabia News Service

Communications barriers and latencies can cost small and medium businesses (SMBs) up to 40 per cent of their productive time, according to a Siemens-sponsored global study.

On average, 70 per cent of employee respondents of SMBs with up to 400 employees said they spend 17.5 hours each week addressing the pain points caused by communications barriers and latencies, according to a global study sponsored by Siemens Enterprise Communications and conducted by SIS International Research.

The research also showed that while SMB awareness of unified communications as a solution is rising, nearly 60 per cent of SMBs do not currently employ one based on the sampling.

In addition, researchers at SIS International Research determined that the time spent per week dealing with communications issues was more than 50 per cent higher in companies with more than 20 workers.

In hard costs, the study concluded, companies of 100 employees could be losing more than $500,000 each year by not addressing their employees’ most painful communications issues.

Key findings

The Siemens-sponsored SMB study ascertained the top five pain points to be, in order of their estimated expense to an SMB: inefficient coordination; waiting for information; unwanted communications; customer complaints; and barriers to communication.

Specifically, they obtained the following responses to each of these pain points:

1. Inefficient coordination: Sixty-eight per cent of respondents have trouble coordinating communications among team members, affecting their ability to respond quickly to time-sensitive customer requests. They also average 3.7 hours per week attempting to coordinate communications across team members, slowing the realization of goals and deadlines.

Complete Article

Alcoa Banks on Chinese Growth Amid "Lousy" Prices

2009-04-09T14:40:00.006-04:00

Via Bloomberg Press

By Rob Delaney

Alcoa Inc., the aluminum maker that just reported its first back-to-back losses in 15years, is counting on productivity gains and China’s economic-stimulus plan to prop up results as demand keeps falling throughout 2009.

Chief Executive Officer Klaus Kleinfeld said yesterday that the company will save $400 million a year by reducing its payroll and trimming other costs. China will be the only market where demand for the metal doesn’t drop this year as the nation’s $585 billion economic stimulus takes effect, he said.

“If they can continue with the cost reductions, their earnings should be significantly better” in the second quarter, Chuck Bradford, a metals analyst at Bradford Research Inc., said in a telephone interview. Still, Alcoa may post another loss because of a “huge inventory overhang” that is depressing aluminum prices.

World aluminum consumption will drop 7 percent in 2009, and sales may decline as much as 15 percent in global building markets and 18 percent to automotive customers, the company told analysts and investors in a presentation yesterday.

Complete Article

"Meetings on the Move" Can Increase Workplace Productivity

2009-04-09T14:33:00.003-04:00

Via EHS Today

by Laura Walter

In celebration of Public Health Week April 5-11, researchers at Washington University in St. Louis challenge employers to try a “Meeting on the Move” to improve health and productivity in the workplace.

"Forty percent of the population are absolute couch potatoes," explained Debra Haire-Joshu, Ph.D, professor of social work at Washington University and director of the Obesity Prevention and Policy Research Center at the Brown School. "That's almost a learned behavior. You learn to sit at school; you learn to sit at work. What 'Meetings on the Move' really does is get us active like we used to be when we were kids. We can learn then to bring activity back into our daily life, just like we learned to take it out."

According to Tim McBride, Ph.D., associate dean for public health at the George Warren Brown School of Social Work at Washington University, these meetings present an “inexpensive, easy way” to get employees on their feet and out of the office environment.

Complete Article

U.K. Manufacturing Output Sinks

2009-04-08T11:24:00.003-04:00

Via The Wall Street Journal

By JOE PARKINSON

LONDON -- U.K. manufacturing output declined for the 12th straight month in February, while the quarterly measure recorded its steepest drop since records began in 1968, the Office of National Statistics said Tuesday.

Manufacturing output fell 0.9% on a month-to-month basis in February, compared with a revised 3.0% drop in January, marking the smallest monthly drop since August 2008. Transport-equipment output -- specifically the production of auto parts -- contributed most to the decline, although basic metals and nonmetallic-mineral products also weighed.

On an annualized basis, manufacturing output dipped 13.8% in February in the largest year-on-year drop since January 1981, compared with a revised January fall of 12.9%. The ONS originally reported that January manufacturing output fell by 2.9% on the month and by 12.8% on the year.

A Dow Jones Newswires survey of economists had forecast manufacturing output would slide in February by 1.6% month-to-month and 14.3% on the year.

Economists said the slower-than-expected monthly decline suggests the worst is over, but cautioned that the sector remains in bad shape. "February's better-than-expected industrial production figures tentatively suggest that the drag on output may be easing," Capital Economics said in a research note. "However, the sector's still in pretty bad shape."

News that the decline in output slowed in February chimes with separate surveys that suggest the pace of decline is easing. According to data from economics research group Markit Economics last week, the U.K. purchasing managers index for the manufacturing sector improved significantly in March from a record low in February.

However, according to ONS, the less volatile three-monthly measure fell 6.5% in the three months to the end of February, which was the steepest drop since records began forty years ago and lower than the 6.4% drop in the three months to the end of January. That points to another sharp contraction in U.K. gross domestic product in the first quarter, following a 1.6% decline in the final quarter of last year.

"The extremely sharp decline in industrial production in the three months to February reinforces fears that U.K. GDP contracted at a rate close to the 1.6% in the fourth quarter," said Howard Archer, an economist at IHS Global Insight.

Meanwhile, ONS reported that the wider industrial production measure fell 1.0% on a monthly basis in February compared with January's revised 2.7% drop. On the year, the index slumped 12.5%, the steepest drop since records began in 1968 and compared with a revised 11.6% annual drop in January. ONS previously said that industrial production fell 2.6% on the month and by 11.4% on the year in January.

Business Books - "Instant Turnaround"

2009-04-06T12:11:00.003-04:00

Via The Dallas Morning News

By JIM PAWLAK / Special Contributor to The Dallas Morning News

Instant Turnaround

Harry Paul and Ross Beck (William Morrow, $22.99)

"Instant" may be overstating the case because management must change its decades-old view of employees as expendable assets and build through trust, not fear. Building trust takes time.

The authors point out that managing strictly by the numbers makes the numbers more important than the people counted on to drive results. That's the wrong message; as far back as the late-1920s, studies have shown that the big-stick, command-and- control approach leads to unhappy employees, low productivity and costly, high turnover.

What approach increases productivity and lowers turnover? Engagement. Make employees a real part of the team. Asking, not telling, acknowledges that there are many smart people in the room – and you want, and value, their input.

The authors believe customers come second; employees come first. Why? Employees treat customers only as well as they are treated.

Another message to senior managers: Get involved with the frontline people. Spending time in the trenches reinforces the employee-first message, and provides a broader, unfiltered perspective of how the business works.

Jim Pawlak reviews business books for The Dallas Morning News.

Complete Article

Competitiveness and Productivity

2009-04-02T15:53:00.002-04:00

by Bob Jacobson, APS Chairman

All too often there is too much information from too many sources to go through, but the two best sources for competitiveness information by country come from the World Economic Forum in Switzerland

http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/index.htm

and

the National Competitiveness Report by the Institute for Industrial Policy Studies at Seoul National University

http://www.ips.or.kr/site/IPS_english/research/
download/NCR2009_01_e.pdf

If you are trying to determine where in the world you might want to look to set up a place of business, either of these tools is extremely helpful.

China Factory Data Suggest Recovery "Still in First Gear"

2009-04-01T16:31:00.004-04:00

Via The Wall Street Journal

By Liu Li

BEIJING -- Manufacturing activity in China declined in March for the eighth consecutive month as prices and new orders continued to weaken, according to the CLSA China Purchasing Managers Index issued Wednesday.

The index, a gauge of nationwide manufacturing activity, fell to 44.8 in March from 45.1 in February, CLSA Asia-Pacific Markets said.

The data, the first broad economic indicator published for March, likely mean that the world's third-largest economy hasn't yet managed to reverse its sharp downturn in growth. Government statistics for March are due to be issued in coming weeks, but data for the first two months of the year show some encouraging increases in bank lending and investment.

"Although China's proactive monetary and fiscal policies are yielding positive results, the country's economic recovery is still in first gear," said Jing Ulrich, chairman of China equities with J.P. Morgan Chase.

A PMI reading below 50 indicates that manufacturing activity is contracting compared with the previous month. March was the eighth month below that level, but it followed three months when the index had risen, a trend that had raised hopes that the rate of decline in manufacturing was starting to bottom out.

"A worsening of domestic manufacturing orders lies behind the drop in the PMI and accords with what we are seeing on the ground in the steel industry," said Eric Fishwick, CLSA's head of economic research. He said he expects further weakness in production in April.

Complete Article

Dubai Ranked 16th Most Competitive

2009-03-31T10:11:00.007-04:00

Via Gulf News

By Suzanne Fenton, Staff Reporter

Dubai: Senior officials have said Dubai must focus more on capital-intensive business practices rather than depend on foreign labour in order to become more competitive in global markets.

Dubai was ranked 16th out of 65 global economies in the National Competitiveness Report for 2009 - the first time the emirate has featured in the eight-year-old report.

The report is published annually by the Institute for Industrial Policy Studies at Seoul National University.

Hani Al Hamli, secretary-general of the Dubai Economic Council, said that in a changing world, countries were competing in various sectors to benefit from globalised markets.

"From there arises the role of the Dubai Competitiveness Council & that aims to enhance Dubai's competitiveness in global markets through enhancing local economic growth.

Complete Article

An Orderly Office? That's Personal

2009-03-26T10:59:00.004-04:00

Via The New York Times

By SARA RIMER

BY the time I started looking for someone to help me organize my home office, where I work when I’m not out reporting stories, it was not a pretty sight: notebooks, papers, bills, cellphone chargers, books, digital cameras and tape recorders, batteries, stamps, magazines, Sweet’n Low and Splenda packets (where did they come from?) were piling up on my desk, the floor and the filing cabinet.

I found a few professional organizers on the Web and made some calls, without much success. One woman charged a minimum of $250 an hour (because, she said, “I can get it”); another suggested I consider going paperless, putting everything on the computer (not an option, in my mind).

Then one day Liz, the daughter of my longtime boyfriend, Lou Ureneck, came to visit us in our small two-bedroom apartment in Brookline, Mass. Liz, a struggling actress in New York who pays the rent with odd jobs — waitress, party caterer, freelance cupcake baker — hadn’t spent much time with us before, but I quickly noticed her extreme tidiness.

When she went into the kitchen to make a cup of tea, she never left the box of tea bags out for more than a minute; the used tea bag would disappear instantly into the garbage. And then, since she was already in there, she’d just clean everything, washing the dishes Lou and I had left in the sink, unloading the dishwasher, scrubbing down the counters for good measure.

I tried to thank her, but she shrugged it off. It was the just way she was.

I was awed, I was grateful. Liz was the one.

“Liz,” I said, leading her into my office, which was also the guest room in which she was staying, “do you think you might be able to help me with this?”

Within two days, she had waded through everything, consulting with me over what to toss and what to file under which category. We came up with dozens — Education Story Ideas, Bills, Manny Ramírez, Poems I Love, Expense Receipts, Letters from Mom and Dad — and she created a place for each, writing the headings onto manila folders that she dropped into hanging files in the double-wide, teak-finish filing cabinet I had bought at Ikea five years earlier, but had never made much use of.

Complete Article

Happy Workers' Productivity Shows Up On The Bottom Line

2009-03-24T15:08:00.003-04:00

Via Ventura County Star

By Diane Stafford, McClatchy Newspapers

Does it matter if workers are happy? Only if an organization wants to do well.

One academic study found that managers with average salaries of about $65,000 cost their organizations roughly $75 a week per person in lost productivity if they are “psychologically distressed.”

Multiply that at large businesses, and the financial whammy is big.

Research shows that employee well-being is inextricably tied to higher performance, which is inextricably tied to the bottom line, said Thomas Wright, the Jon Wefald Leadership Chair in business administration at Kansas State University.

Complete Article

Boosting Employee Productivity

2009-03-23T10:31:00.001-04:00

Via Business Week

How companies can deploy managers to fight waning employee productivity

By The Staff of the Corporate Executive Board

The magnitude of the economic downturn for mid-sized organizations has been significant. Profits are down, workforces are shrinking, and employee engagement levels are tanking. According to new research by the Corporate Executive Board (CEB), there has been a substantial decline in employee engagement, resulting in as much as a 5% reduction in employee productivity.

In a survey of more than 140 organizations, the HR Leadership Council, a CEB program for HR professionals at mid-sized organizations, found that mid-sized companies are undertaking typical cost-cutting measures. However, while most organizations might concur that lay-offs, hiring freezes, and reduction in compensation are the right ways to manage costs in a down economy, they may also be underutilizing the very thing that can successfully combat the waning productivity and disengagement that typically accompanies the state of "survivor syndrome" among remaining employees: the actions and influence of managers.

Maximize Manager Impact While in Cost-Cutting Mode:

#1: Communicate compensation changes through managers, not HR
#2: Task managers with spearheading low-cost reward and recognition programs
#3: Don't hold on to dead wood—trade up on talent
#4: Fight declining productivity with performance management compliance

The Corporate Executive Board (EXBD) drives faster, more effective decision-making among the world's leading executives and business professionals. Powered by a member network that spans over 50 countries and represents more than 80% of the world's Fortune 500 companies, the Corporate Executive Board offers the unique research insights along with an integrated suite of members-only tools and resources that enable the world's most successful organizations to deliver superior business outcomes.

Complete Article

Productivity Madness

2009-03-20T10:14:00.007-04:00

Can you imagine if this is happening in America with just one sports tournament and if this is indeed true, what the costs would be if you added costs from Soccer, Rugby, Australian Rules Football, and so on and so forth. The cots are astronomical!!! ... Bob Jacobson

Via Slate

by Jack Shafer

The NCAA Tournament gets under way on Thursday, and it's reportedly luring diligent workers away from their desks to manage office pools and watch their favorite teams—to the great detriment of the U.S. economy. In a 2006 "Press Box," reprinted below, Jack Shafer revealed that speculation about how much the productivity of the U.S. economy suffers during March Madness amounts to nothing more than fuzzy math and hype. Also, in a 2006 "Dismal Science," Jeff Merron explained how those workplace-interruptions calculations are taken out of context.

If you believe what you read in the press, fan devotion to March Madness could cost employers $3.8 billion or more in lost productivity as workers slip away to check NCAA Tournament scores, participate in office pools, read stories about the contests, or avail themselves to CBS' free streaming videocasts of the games on their office computers.

Complete Article

Utah is Most Economically Competitive State in U.S.

2009-03-19T12:13:00.003-04:00

Via Workers Independent News

Economic Report:

When it comes to economic competitiveness Utah ranks number one out of all fifty states. In an index created by the American Legislative Exchange Council Colorado, Arizona, Virginia, and South Dakota all join their fellow Western state in the top five. At the bottom are the northeastern states of New Jersey, Maine, Rhode Island, Vermont and New York. Utah closed a $1 billion budget gap without raising taxes.

Productivity Should Entail Investing in Tomorrow

2009-03-19T10:37:00.003-04:00

via The Kansas City Star

By DIANE STAFFORD

Nancy Hart Kline, counselor at Leawood Middle School, sent letters to 63 companies and professional associations, asking them to participate in an educational career fair at the school.

She heard back with a “yes” from two. One of them was her own Blue Valley School District.

Deborah Goodall, interim president of the Metropolitan Community College-Business & Technology Campus, hoped to have a hundred employers attend a career exploration event at the school.

Fifteen signed up.

It’s not too hard to understand why companies and nonprofits aren’t leaping to send representatives to educational career fairs. These are hard days in many cost-cutting, do-more-with-less businesses. Anything that isn’t revenue-producing or productivity-enhancing isn’t a high priority.

But let’s talk about that productivity part.

“In a global economy, where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity — it is a prerequisite.”

Can you identify the speaker?

That was President Barack Obama prefacing his remarks to Congress on the education component of his stimulus plan.

He didn’t sugarcoat the need for America to do better — far better — in preparing students for the workplace. We are falling behind other countries which “out-teach us today” and will “out-compete us tomorrow,” he said.

From her vantage point in the middle school, Kline is afraid that the business community is missing that point. In her own words:

“This is an opportunity for them to let students know what they want in future workers. One company said they would not come since they are currently not hiring! These are students that will not be in the work force for another six to 10 years, depending on post-secondary schooling. …

“I’m a little discouraged, as I’ve read for years that employers are wanting young people to have a better understanding of both the work ethic and the skills needed to contribute to the work force, but given the opportunity, I’m not seeing much employer follow-through.”

That’s where my point about productivity comes in. Taking three hours out of a busy workday to attend a school career fair may be the most productive thing a business or professional organization can do in the month.

That small amount of time may be what plants the seed to nurture future engineers, gerontologists, teachers or computer programmers.

The president acknowledged that it’s one thing to channel funds, design programs and set policies to “open the doors of opportunity for our children. But it is up to us to ensure they walk through them.”

The doors may be stuck on economic thresholds, but it’s no less crucial to shove them open for workers of tomorrow.

Productivity Up - But Not Enough

2009-03-18T15:22:00.002-04:00

Via Radio New Zealand News

New Zealand's productivity record is showing signs of turning around, but experts say more needs to be done to bridge the gap with other countries.

New figures show productivity - a measure of a country's resource utilisation - improved by 0.9% in the year to last March.

The Council of Trade Unions says big improvements are needed to bridge the wage gap with Australia. It says more investment in skills and infrastructure is needed to make workers more productive.

However, the Business Roundtable says New Zealand's investment record has been good. It says businesses need a freer economic environment to recapture the good productivity performance of the 1990s.

Canada Labor Productivity Falls in Q4, 2008

2009-03-18T15:12:00.002-04:00

Via Reuters

Reporting by Louise Egan; Editing by Theodore d'Afflisio

OTTAWA - The labor productivity of Canadian businesses slid a sharper-than-expected 0.5 percent in the fourth quarter of 2008, leading to the first annual decline in productivity since 1996, Statistics Canada said on Tuesday.

The gross domestic product of the business sector shrank 1.3 percent in the quarter while the number of hours worked dipped just 0.8 percent, Statscan said.

"Wholesale trade, manufacturing and finance, insurance and real estate accounted for much of the decline," Statscan said in a report.

Analysts in a Reuters poll had forecast a 0.2 percent decline in the quarter. Productivity rose 0.1 percent in the third quarter, according to Statscan's revised figures.

In all of 2008, Canadian productivity fell 1.1 percent, the first annual decline since 1996.

The performance compares unfavorably to that of the United States, where productivity fell 0.1 percent in the fourth quarter and grew 2.7 percent in the year.

Complete Article

Labour Productivity

2009-03-16T09:31:00.004-04:00

Via The Economist

Growth in global productivity, measured as output per person in work, fell to 2.2% in 2008, according to the Conference Board, a business-research firm. It expects labour-productivity growth to drop to just 1.4% this year. The most dramatic declines are likely to be in rich countries. Labour productivity is expected to stagnate in America, following growth of 1.6% last year. Productivity in Japan is set to decline by 1.8%. It is likely to fall in “old Europe” (the EU excluding its newest members) as well. The outlook for the biggest emerging economies is more encouraging. Chinese labour productivity is expected to rise to 9.1% in 2009, up from 7.7% last year. Brazil’s productivity growth is forecast to pick up to 4.4%.

Complete Article

The Secret for People Who Don't Believe in VooDoo

2009-03-13T12:38:00.000-04:00

THE UN-COMFORT ZONE with Robert Wilson

The latest fad in motivation is the Law of Attraction or more popularly The Secret after the motion picture and book by Rhonda Byrne. The idea being that if you use the power of The Secret you will attract health, wealth and friends to you in abundance.

The Secret takes an old idea and repackages it for our today’s society. The core idea is that your thoughts control the world around you. If you have positive thoughts, good things come your way. If you have negative thoughts then bad things come your way. In other words, if you wish hard enough for the things you want -- you will get them. Simple. Or is it? If it were simple, then countless people throughout history would have figured it out over and over, and it would not be much of a secret. Perhaps it takes a little more effort than suggested – or perhaps it is just a pipe dream.

We, as modern educated people, need more proof. In order to make it palatable to the skeptic in us, The Secret adds an element of science. We are told that quantum physics has identified that all things at the sub-atomic level exist as both particles and as waves – constantly shifting between being solid matter and being pure energy. It is then proposed that our thoughts create brain waves which in turn influence the sub-atomic waves of the entire universe. The Secret claims that the more intent you are in your wish the faster the universe will act upon it. Is it real, or is it VooDoo.science?

If real, it sounds wonderful! Now, if I understand correctly, if I wish real hard I can become a concert pianist and play to a sold out audience in Carnegie Hall? I only see one hitch: I’ve never had a piano lesson in my life.

The Secret also presents the Law of Attraction as if it had been intentionally kept hidden for centuries. That it was suppressed and held by a few conspirators so that they could control all the wealth of the world. Unfortunately, that notion is nothing other than a marketing ploy to generate interest in the book. It also contradicts the concept of Law of Attraction. The idea that a select group of people have kept it away from the masses intentionally preys on the destructively negative emotion of envy.

To the contrary, people who have understood the Law of Attraction have made numerous attempts at sharing it with the world at large. The best example is Andrew Carnegie, who was one of the most successful so-called “Robber Barons” of the Industrial Age. Carnegie hired Napoleon Hill to research the most successful people in the world, how they got that way, and then record his findings in a book. The book is Think and Grow Rich and was published in 1937.

The best thing about Think and Grow Rich is that it takes the mysticism out of the Law of Attraction. So, for those of you who find wishing on a star a bit difficult to swallow as a method for acquiring wealth, here is the real secret:

Identify your goal. Make a written plan to acquire that goal. Work your plan persistently. Give it your time, attention and energy. The more time and effort you give, the quicker you will achieve it. Visualize it coming to fruition. Draw it, illustrate it, photograph it, then keep it in front of you. Revise your plan as your knowledge grows. Be open-minded to opportunities that arise that may deviate from your plan, but still move you toward your goal.

The world’s most successful people were extremely focused on achieving one goal. They focused to the exclusion of everything else including family, friends, lovers, recreation, entertainment, vacations and hobbies.

Next, tell everyone you know about your goal. Spread the word, so that people who can assist you are aware of your intentions. I truly believe that positive minded people attract more opportunities to themselves because they are so pleasant to deal with.

The formula is simple, but most of us compromise our goals because we want to enjoy a full balanced life. A life filled with friends, family and good times. We focus on our goals when time allows, and in turn, our goals take much longer to achieve. The true secret is staying focused on your goal.

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.

German Factory Orders Plummeted in January

2009-03-13T12:28:00.003-04:00

Via The Wall Street Journal

By ANDREA THOMAS

BERLIN -- German manufacturing orders fell for the fifth straight month in January as demand crumbled, especially in countries outside the euro zone, data released by the economics ministry showed.

Orders dropped a seasonally adjusted 8% from December, turning the slump, which began in September, into "the deepest five-month fall since Germany's reunification," a ministry spokeswoman said.

Compared with a year earlier, orders were down 37.9% in January, following a downwardly revised annual drop of 28.2% in December. "That was the biggest annual drop since 1991," the ministry spokeswoman said, referring to the January data. Germany started compiling joint data in 1991 following the reunification of the country.

The data bode ill for industrial production in coming months, with the ministry saying the outlook "remains very depressed."

Analysts echoed the warning. "These data are truly terrible. They imply continued sharp falls in output," said Dominic Bryant, economist with BNP Paribas. "Even before today's release, output was likely to fall for the next two or three months. Now those falls will probably be sharper and extend further into 2009."

Alexander Koch, economist with UniCredit Research, called the short-term outlook for Europe biggest economy "absolutely ugly."

German manufacturing orders have been falling since December 2007, with the exception of a rise in August, according to the economic ministry. In December, orders fell a downwardly revised 7.6%, compared with a previously reported 6.9% decrease. January's manufacturing-order data would have been even worse if they hadn't been boosted by an unusually high level of big-ticket orders.

Foreign orders in January dropped 11.4%, while domestic orders fell 4.3% from December, the ministry said. Orders from countries that share the euro currency fell just 1.2%, while demand from states outside the euro zone plummeted 18.2% on the month.

Orders for investment goods showed the strongest decline, down 9.1% from December as orders from countries outside the euro zone tumbled by 24.1% on the month, while demand from euro-zone countries was up 7.8%.

The German economy fell into recession in the fourth quarter, contracting 2.1% from the previous quarter. The economy will shrink at least 3% in 2009, the Bundesbank warned Tuesday.

Balancing Productivity With Quality

2009-03-13T12:17:00.004-04:00

Via Multichannel Merchant

by Kathryn E. Jackson Ph.D.

Many people speak of quality measurement and excellence in the contact center. But few attack the topic of productivity measurement. Even fewer people want to discuss how to measure an agent’s productivity. I’ll admit, it can be a dangerous road to travel – a road full of potholes. But maneuvering this road with excellence is simply a matter of balance and optimization.

I’ve heard agents say, “If you want me to provide higher quality, I’ll have to talk longer with my customers.” But did you know that quality does not necessarily get any better with longer talk time? In all of our research, we’ve never been able to prove any significant correlation between talk time and quality.

Complete Article

Boosting Productivity and Reducing Costs In Tough Economic Times

2009-03-11T11:32:00.004-04:00

Via Industry Week

By Gregg Gordon

Unprecedented economic challenges are driving manufacturers to find new ways to cut costs and boost productivity. Many have already taken steps to identify inefficiencies and improve supply chain, design and production processes. Unfortunately these changes are not always enough.

Because labor often represents a manufacturer's most significant controllable expense, a big opportunity for reducing operating costs and increasing productivity lies in more effective workforce management that help achieve quick bottom-line results.

The following six tips offer ways to manage your workforce more effectively for higher productivity and lower costs -- even in these tough economic times.

1. Put Systematic Controls in Place to Ensure Fair, Accurate Employee Pay

Without sufficient timekeeping controls, you may be paying your workers too much -- or too little. Overpayment eats into profits and underpayment puts you at risk for legal penalties, union grievances and employee dissatisfaction. Manual timekeeping processes require managers to remember complex pay rules -- overtime, government regulations, union agreements, and more -- an approach that too often results in payroll errors.

An advanced time and attendance system eliminates costly guesswork by capturing company, union, and regulatory rules up front and automatically applies the rule for consistently accurate pay calculations.

Complete Article

How Will AG find New Productivity Gains?

2009-03-11T11:19:00.004-04:00

Via FARMONLINE

by Matt Cawood

It was hard to find a speaker at Outlook 2009 who didn’t mention productivity.

Federal Agriculture Minister Tony Burke opened the batting, observing that productivity improvements will be a crucial factor in agriculture's response to the three great global crises: the financial meltdown, food shortages and climate change.

ABARE director Philip Glyde agreed, arguing for more effective research and development supporting a more efficient farming sector.

They didn't get any argument from graingrower David Brownhill, who with his brother Gordon and their families, farms 4700 hectares across five properties on the Liverpool Plains of northern NSW.

At an Outlook session, Mr. Brownhill outlined an approach to productivity that didn't aim for a single big hit, but the cumulative effect of many small gains.

"We've tried to take the best ideas we've seen and incorporate them into a family farming business," Mr. Brownhill said.

Complete Article

Europe Signals Steeper Slump

2009-03-11T10:58:00.004-04:00

Via The Wall Street Journal

by Ilona Billington & Emese Bartha

Europe’s three biggest economies started the year with early signs of a steepening slump.

Industrial production crumbled during the first month of the year in France and the U.K. But many economists focused on the sharp drop in Germany’s exports as spelling trouble for the region’s biggest economy.

With Europe’s big manufacturers and exporters starting the year badly, hopes that receding economies will find a bottom are being pushed back to the summer at the earliest.

The services sector is faring little better, with a February survey released last week hitting a new low as firms across the currency bloc slashed more jobs than at any time in the survey’s 12-year history.

The European Central Bank, which expects a 2.75% fall in gross domestic product in the 16 countries sharing the euro currency this year, already is signaling another cut in interest rates to rekindle demand.

Complete Article

Team Up to Improve Team Productivity

2009-03-10T11:12:00.004-04:00

by Holly McCarthy

I love to play racquetball, and if I’m allowed to blow my own trumpet a little, I’m pretty good at it. But I don’t know how I would perform in a team sport, because it’s a different ball game altogether – if even one member does not pull their weight, it’s a losing proposition. It’s easy to improve productivity in an individual, but when it comes to a team, it demands a more cohesive effort. It’s not enough if just a few people are efficient; what matters is the output of the entire team. Here’s how you can improve your team’s productivity when you find it flagging:

> Root out the weeds: When I say weeds, I’m referring to those people who are a part of your garden, but who don’t contribute in any way to its usefulness. In fact, they’re more of a hindrance by just their presence. Most teams have at least one member like this; they’re usually ignored and the rest of the team makes up for their unproductiveness by doing a little extra. But when the cumulative burden gets too much to bear, the stress starts to show, and there’s friction within the team. This leads to a decrease in productivity. It may be hard to remove members who don’t perform, but when it’s in the larger interest of the team, that’s exactly what needs to be done.

> Less talk, more action: I know meetings are a part of every organization’s daily schedules, but don’t call meetings just for the sake of them. There’s more to be gained in actually getting down doing the project rather than just talking about it. Lay more emphasis on the act rather than how you’re going to do it.

> Outline responsibilities: Make sure that each member of the team knows what’s expected of them and that they’re aware of their responsibilities. They may be part of a team, but they have their own tasks to do. This makes it difficult to pass the buck when something does go wrong.

> Don’t micromanage: The best way to kill productivity is to peer over someone’s shoulders when they’re working. So don’t supervise and inspect every tiny detail of your team’s work and make the feel jittery and uncomfortable when you’re around. Let them work the way they’re used to, and as long as you get the desired results in the desired time, that’s all you need to concern yourself with.

> Encourage creativity: You may have tried and tested methods to complete certain tasks, but if a team member comes up with an innovative idea that takes care of the same in less time and more easily, don’t dismiss it without a second thought. Innovation is the lifeblood of an organization, and the more you stimulate an employee’s creativity, the more you gain for your company. Your employees are motivated to think differently and provide new ideas to enhance productivity.

This post was contributed by Holly McCarthy, who writes on the subject at http://www.matchacollege.com/ She invites your feedback at hollymccarthy12@gmail.com

Recessions Are Self-Correcting

2009-03-09T13:38:00.002-04:00

Via Forbes

by John Tamny

Banking giant JPMorgan Chase announced Feb. 23 that it would be cutting its quarterly dividend by 87% to a nickel per share. At face level, this sounds bad, but the savings will speed the process by which it repays TARP funds in order to avoid problematic government oversight; plus, the extra capital cushion puts the firm in a better position to make acquisitions of flagging competitors, should difficulties in the banking sector drag on.

The JPMorgan example is important for reminding us that both individuals and companies frequently respond to economic difficulty in ways that ensure recessions are short-lived. To put it simply, when left alone, recessions tend to correct themselves.

Broken down to the individual, there's a fear factor that is part and parcel of downturns. First off, whether employed or unemployed, we save more and our savings very often flow, through bank lending, to capital-starved businesses eager to grow. There are no profits without saving first, and recessions induce us to save.

Complete Article

U.S. Productivity Plummets, Mortgage Defaults Up

2009-03-06T10:23:00.002-05:00

Via REUTERS

By Lucia Mutikani

WASHINGTON (Reuters) - U.S. business productivity plunged at the end of last year despite massive job cuts, which show little sign of abating as the 14-month recession deepens, data showed on Thursday.

With job losses mounting, households came under increased pressure and one in eight homeowners fell behind on mortgage payments or slipped into foreclosure as the year drew to a close.

While the Labor Department said new claims for jobless benefits fell last week, they remained at levels consistent with a severe recession.

"The economy and the job markets are still in a free fall. Things will get better eventually in the second half of the year, but in the first half they will get much worse," said Nariman Behravesh, chief economist at IHS Global Insight in Lexington Massachusetts.

The weak data, coupled with a warning of a potential bankruptcy at General Motors (GM.N), hammered U.S. stocks. The Nasdaq .IXIC ended down 54.15 points at 1,299.59, a six-year low. Government bond prices and the U.S. dollar rallied as investors dumped risky assets in search of a safe-haven.

Complete Article

Productivity Shrinking

2009-03-06T10:13:00.004-05:00

Via The Chosun Ilbo

Korea's productivity grew more slowly in the 2000s. The Knowledge Economy Ministry and the Korea Productivity Center on Thursday said analysis of the productivity increase rates of major countries between 1981 and 2005 shows that Korea's total factor productivity increased by 0.12 percent between 2001 and 2005. That is a mere third of 0.39 percent in 1981-2000.

Total factor productivity is an index that accounts for effects in total per unit output as a result of all factors being used, such as capital, labor, energy, raw materials and services.

In the same period, the U.S. saw its productivity increase from 0.26 percent to 0.95 percent, while Japan saw almost no change from 0.27 percent to 0.25 percent. That means the Korean economy has grown not so much through increased productivity but chiefly through increased input of production factors such as capital, labor and energy.

A KPC official said, "We have to change growth structure by improving the quality of labor force, using capital efficiently, and enhancing quality of raw materials."

Complete Article

An Empty In-Box, or With Just A Few E-Mail Messages? Read On

2009-03-05T09:26:00.003-05:00

Via The New York Times

By FARHAD MANJOO

SINCE e-mail became a fixture in our professional and personal lives, many academic researchers have investigated the complex mix of feelings brought on by the technology.

We feel guilty about being late in responding, about our in-boxes being disorganized, about the tens of thousands of unread messages that we’re sure we’ll never get to. What is it about e-mail that consumes us — that invades every corner of our personal space, demands ever more sophisticated methods of organization, and makes us wish for extra hours in the day to deal with the deluge? More important, how can we overcome it?

In the last few weeks, I set about finding a cure for e-mail anxiety. It was not the first time I’d done so; I’ve been looking for better ways to handle my mail since shortly after logging in to my first in-box.

Complete Article

How to Use Effective Time Management To Increase Productivity

2009-03-03T10:57:00.003-05:00

Via The Complete Lawyer

By Diane Costigan

With the downturn in the economy, many lawyers have some extra time on their hands. What a perfect opportunity to work on establishing stellar time management practices that will help increase productivity when it is back to business as usual.

Although the suggestions in this article are simple, they are not always easy to implement. In fact, many are challenging because they often require a change in mindset—or even more difficult, a change in behavior.

When it comes to effective time management, you need to plan, plan and then plan some more. Not planning your time is like going food shopping without a list—you end up wasting time and money by buying things you do not need and forgetting things that you do.

Work As You Shop

Super-organized shoppers create a strategy that minimizes their time while maximizing their output. Based on previous experience and exact knowledge of what they need, they sort their coupons, know the best times to shop, and can locate the items on their list. By bringing a laser-like focus to their task, they’re in and out of the store in record time. Their approach is similar to that of a heat-seeking missile—they are unstoppable in zoning in on their target.

The same strategizing can be done with respect to our day-to-day lives. How? By becoming an “efficiency expert” in training. The operative word here is “training”—an ongoing process of committing to be more efficient with your time. This can be difficult since it requires a generous helping of the “D” word—discipline.

Complete Article

Snow Job: How Much Does A Snow Day Cost?

2009-03-03T10:12:00.004-05:00

Via Daily Finance

by Bruce Watson

As millions of Americans stay home from work today, analysts are already trying to calculate the overall economic cost of a few inches of snow. The trouble is, even the most apparently straightforward calculations use assumptions that can be hard to justify.

The most common method for calculating the economic cost of snow day is to divide the predicted productivity of that day by the number of workers who will be unproductive. However, while this appears pretty simple, there are numerous immeasurable factors that render even the best calculations laughably inaccurate. In the end, the best that one can do is take a good look at the variables involved and sigh meaningfully while imagining the economy taking yet another hit.

In the United States, when analysts talk about the cost of a snow day, the conversation usually starts with the price of snow removal. Unfortunately, even that relatively straightforward calculation is fraught with peril.

Complete Article

Sign of the Times

2009-03-03T09:52:00.005-05:00

IF ONLY ALL COMPANIES AROUND THE WORLD WERE AS FAR THINKING AS THIS ONE, PERHAPS WE WOULD NOT BE IN THE FISCAL CRISIS WE ARE AROUND THE WORLD.
Bob Jacobson, APS Chairman

Embracing a Life Without the Roller Bag

2009-02-24T10:36:00.003-05:00

Via The New York Times

By JOE SHARKEY

WILLIAM A. ALLEN III has deplaned, returned the rental car and unpacked the suitcase he always kept ready to roll at home in Raleigh, N.C.

Mr. Allen, business traveler extraordinaire, is off the road. “I don’t want to do it anymore. I’m going to be 61 in April, and I’ve had it,” he said.

Mr. Allen is a consultant who often flew 200,000 miles in a year. He enjoys top-level elite status at airlines, hotels and rental car companies. I first met him four years ago at a Hilton Garden Inn across the road from Los Angeles International Airport.

Back then, I noticed that the hotel manager treated him like visiting royalty. Would you like a drink, Mr. Allen? How is your room? Is there anything we can do for you?

Complete Article

What Managers Need Now: CONFIDENCE

2009-02-20T13:07:00.003-05:00

Via The Wall Street Journal

By JOHN BALDONI

In a December appearance on "Meet The Press," Michigan Governor Jennifer Granholm identified a critical trait our leaders need now: Confidence. Leaders, she said, "need to be evoking this: 'We're going to be all right. In fact, we're going to be magnificent.'"

She hit the nail on the head. Never is this truer than now, when economic uncertainty has caused a massive loss of confidence among consumers and managers alike. A recent study by Booz & Company revealed that nearly half of senior managers lack confidence in their own CEO to lead their organizations through the current hardship.

Confidence is a vital leadership attribute. Yet so often executives get bogged down in operational issues that they overlook what their people need in terms of uplift. Management focuses on operations; leadership focuses on inspiration. It's essential to encourage followers. If the leader cannot project a sense of accomplishment, then who wants to fall in behind? No one.

We can look to past crises to find leaders who projected confidence. One who stands out is Franklin Roosevelt. In the wake of the shock of Pearl Harbor, as Doris Kearns Goodwin writes in "No Ordinary Time," Roosevelt projected the deepest sense of inner calm. Just after Pearl Harbor, Roosevelt's unruffled demeanor reassured those around him and allowed them to focus on doing their jobs.

Can you exert too much confidence? Of course. We call it bravado. Or worse, buffoonery. Former Illinois Governor Rod Blagojevich's determination to fight corruption charges are a prime example.

So what exactly is the right kind of confidence, and how can leaders project it? From what I observe with executives who I coach or speak to in corporate gatherings, I define confidence in terms of three key attributes:

Realism. Confident leaders are those who can look reality square in the face and deal with the consequences it may have on their organizations. A leader needs to assess whether everyone on the team can perform the task at hand. If not, the leader must find ways to develop or train them, or find other positions for them. At the same time, a leader must make tough assessments of his products or services, to make sure they're really delivering what customers want.

Reassurance. Leaders need to share their sense of confidence with their people. That does not mean telling employees everything is rosy. It means offering them ways they can improve the situation. Managers can reassure staffers at meetings by talking about what the company and its people are doing well. At the same time, managers should talk about things they'd like to improve, and invite suggestions for improvement and other feedback.

Resolve. The strength to persevere is a form of confidence. In tough times, managers may need to resolve simply not to lose ground, such as limiting a slide in sales. Experienced executives realize that pushing people to achieve unrealistic goals will de-motivate good people; leaders should focus on getting their people to persevere towards realistic targets.

Realism, reassurance and resolve all inspire confidence. And that is something leaders should try to project every day, especially when times are so tough.

Worst Isn't Over for Japan

2009-02-16T13:14:00.004-05:00

Via The Wall Street Journal

By YUKA HAYASHI

TOKYO -- The worst isn't over for Japan.

The world's second largest economy contracted at its sharpest pace in nearly 35 years during the last quarter of 2008. Now, it's likely to continue to underperform other major nations early this year as demand for its manufactured goods collapses all over the world amid a deepening global economic crisis.

Japan's gross domestic product shrank by an annualized pace of 12.7% during the quarter, the government said Monday, a steeper decline than a contraction of 3.8% reported earlier for the U.S. and 5.9% in the euro-zone for the same period. A big reason was an unprecedented 14% decline in exports on quarter and sharply lower capital spending by companies.

Exporters including Toyota Motor Corp., Nissan Motor Co., Sony Corp. and NEC Corp. have all warned of hefty losses for the current fiscal year ending March, and unveiled restructuring plans that would together eliminate tends of thousands of manufacturing jobs over the coming months. This could further dampen consumer spending.

Already, data point to further deterioration in the economy. Industrial output is expected to drop by around 20% during the first quarter, a government survey says. After tumbling by a record 35% in December, exports sank 46% from a year earlier during the first 20 days of January. In this environment, the jobless rate could climb to an all-time high of 6% or so later this year, from 4.4% in December, economists say.

"It's very likely we'll see another double-digit decline for the current quarter," says Yoshiki Shinke, an economist for Dai-Ichi Life Research Institute.

The latest GDP data highlighted the vulnerability of a nation that for years relied on global trade to fuel its growth. Even though Japan has escaped a housing bubble and crippling credit losses that now weigh on the U.S. and Europe, its overall economy is shrinking much faster because it's exposed so much to consumer demand from elsewhere. Until the economy started shrinking in the second quarter of 2008, Japan had enjoyed six years of steady growth thanks to sharp increases in exports bound for the U.S. and fast-growing economies like China. Domestic demand, meanwhile remained static as workers' pay was kept low.

Exacerbating the economy's performance in the latest quarter was a rapid cool-down in exports bound for China and other Asian nations that had previously propped up Japan's economy long after demand for Japanese autos and high-end electronic products began to falter in the U.S. and Europe.

After growing 12% during the first half of 2008, Japan's exports to China began to erode in October, and fell a steep 36% in December. Japan was among the few developed nations that had previously boasted a trade surplus with China. That was because of shipments of high-tech materials and production machinery used by local manufacturing facilities owned by Japanese companies. Many of the finished goods were then shipped back to Japan or sold to other markets like the U.S. and Europe. Now that demand is shrinking both within China and for exports, such trade is suffering.

"Our sales in China began to falter around July, collapsed in October and are still dropping," said a spokesman for Union Tool Co., a Tokyo company that makes drills used to make holes in printed circuit boards, a critical component in electronic equipment from cellphones to personal computers. After reporting a 19% drop in its net profit for the year ended November, Union Tool, which derives nearly a half of its revenues from Asia including China, foresees a net loss for the six months through May, the first half-year loss in its history. To cope, the company recently said it would cut executive pay and reduced operations at its production facilities. Its factory in Shanghai operated only 15 days in January, compared with 28 to 29 days previously.

The economy is facing "without a doubt, the worst crisis since World War II," said economic minister Kaoru Yosano. He signaled the government's intention to compile a new economic stimulus package, which, according to Japanese media reports, could total 20 trillion to 30 trillion yen. His comment came in the wake of a weekend meeting of the Group of Seven nations in Rome where finance ministers and central bankers affirmed their commitments to "act together using the full range of policy tools" to support the economy.

Euro-Zone Economy Contracts Sharply

2009-02-13T16:47:00.006-05:00

Via The Wall Street Journal

By NICHOLAS WINNING

The euro zone plunged deeper into recession in the fourth quarter of last year with its sharpest contraction in gross domestic product since records began in 1995, data from the European Union's Eurostat statistics agency showed Friday.

The decline was led by the biggest quarterly fall in German GDP in more than two decades. France and Italy also reported severe downturns as the global financial crisis throttled demand and output at home and in the region's main trading partners.

Eurostat said euro-zone GDP contracted 1.5% on a quarter-to-quarter basis and fell 1.2% on an annualized basis, the biggest falls by both measures on record. In the third quarter, GDP shrank 0.2% on a quarterly basis, but grew 0.6% on a year-to-year basis.

The fourth-quarter figures were even weaker than the market consensus estimate of a 1.3% quarterly drop and 1.2% decline on an annualized basis from a Dow Jones Newswires survey of economists last week.

The data are likely to support expectations that the European Central Bank will cut its benchmark interest rate again in March. The ECB has lowered rates to 2.0% from 4.25% in October as weaker energy prices fueled a sharp slowdown in inflation in the region.

In the third quarter, the euro zone entered recession for the first time since it was formed in 1999. Since then, business and consumer confidence has dropped to all-time lows, industrial output has fallen at a record pace, unemployment has risen to a two-year high, and demand in many of the euro zone's main trading partners has weakened.

Figures released earlier by Germany, France and Italy, the euro zone's three biggest economies, suggested the euro-zone figure would be very weak.

German economic growth posted its sharpest quarterly fall since 1987, as machinery investment and exports nose-dived, data from its Federal Statistics Office showed Friday. Real GDP declined 2.1% from the third quarter, when adjusted for seasonal and calendar effects, well below economists' forecasts of a 1.8% quarterly fall.

This was the third quarter in a row that German GDP declined, after falling by 0.5% in the second and third quarters of 2008 respectively from the quarter-earlier periods. The loss also marked the sharpest quarterly drop in GDP since the first quarter of 1987, when GDP declined by 2.5%.

Germany, the euro zone's largest economy, is widely expected to contract 2%-3% this year, which would mark the steepest decline since World War II.

France's finance ministry, meanwhile, said late Thursday that GDP in the euro zone's second-biggest economy contracted 1.2% in the fourth quarter -- also more than the 1.0% decline expected by market participants. It said GDP should contract by at least 1.0% this year on average. In a radio interview earlier Friday, French Finance Minister Christine Lagarde said the country was, "clearly in a recession."

In Italy, GDP shrank 1.8% on a quarter-to-quarter basis between October and the end of December, the sharpest decline since 1980, after contracting 0.6% in the third quarter.

Eurostat said the EU economy as a whole slipped into recession in the final quarter of last year. EU GDP shrank 1.5% on a quarter-to-quarter basis after declining 0.2% in the previous three-month period.

—Nina Koeppen contributed to this article.

Eastern Europe Reels as Exports Fall

2009-02-13T11:26:00.003-05:00

Via The Wall Street Journal

By MARCUS WALKER

BERLIN -- Eastern Europe, which narrowly survived the global financial crisis with help from the International Monetary Fund, now faces a second shock wave: Industry is slumping along with exports to Europe's wealthier West.

Economic data for 2008's fourth quarter, due Friday, are expected to show growth collapsing in countries such as Poland, the Czech Republic and Slovakia, which had coped relatively well with the crisis to date.

Thus far, the downturn's toll has been worst in countries that have large trade deficits and relied on foreign borrowing to pay for their consumption, such as Baltic nations Estonia and Latvia.

Many analysts expect other countries that rely on foreign credit, such as Bulgaria and Romania, will follow the Baltics into recession now that cheap credit has dried up and investors are fleeing emerging markets.

Even the region's strongest economies are caught in the downward spiral, because of trade links with Germany and other euro-zone nations.

Data out Thursday confirm the economic pain isn't limited to Eastern Europe. Spain -- the first major euro-zone member to post national gross domestic product numbers for the fourth quarter -- entered its first recession in 15 years in the fourth quarter, reporting a 1% contraction from the third quarter Thursday. Spanish GDP contracted 0.3% in the third quarter. Two consecutive quarters of contraction is a common definition of recession.

France's GDP also contracted, shrinking 1.2% in the fourth quarter compared with the third quarter, the French finance ministry said Thursday. France, which scratched out 0.1% third-quarter growth, thus far has escaped an official recession.

"Almost every country in central and eastern Europe will have a recession in 2009," says Neil Shearing, an economist at London consultancy Capital Economics. "The collapse in industrial production that we're seeing will spread and engulf these entire economies."

Growth in Poland and Slovakia could fall to around zero this year, while Hungary and the Czech Republic will have sharp economic contractions, Mr. Shearing predicts.

Friday's data are expected to confirm that Hungary's economy is shrinking. The country is suffering from falling exports and financial strains because of its citizens' excessive borrowing in foreign currencies in recent years.

Analysts expect data for Slovakia -- which joined the euro zone in January -- and the Czech Republic to show that a slowdown began in the fourth quarter, driven by collapsing Western European demand for cars.

The two countries fashioned themselves as the Detroit of Europe in recent years. Sales in Western Europe of cars made in the Czech Republic, Slovakia and Hungary are currently down about 30% from a year ago, says Gyula Toth, Central Europe economist at Unicredit in Vienna.

Economists say prospects for a recovery depend heavily on Germany, which buys roughly a third of its eastern neighbors' exports. Germany's economy is set to shrink by about 2.5% this year, the IMF predicts.

Some business surveys suggest Germany might stabilize in the second half, however.

—Geraldine Amiel, Jonathan House and Jason Sinclair contributed to this article.

Coping With Aftermath of Layoffs at Your Firm

2009-02-03T11:27:00.005-05:00

By TODDI GUTNER
The Wall Street Journal

Relief, guilt, grief and fear are all typical feelings of employees are left behind in an office after a wave of layoffs. It's easy to get mired in the emotions; it takes deliberate thought and action to manage in the workplace after colleagues have been laid off. "To be a survivor you have to act like one," says Janet Banks, an executive coach in Boston. "People who survive difficult experiences and economic times are able to do so because they can imagine a time when things will change for the better," she says. Here's how to cope and position yourself in the office after a round of layoffs.

Confirm new business priorities. Not only do the number of employees change after a layoff, but often the direction of the business and the importance of various projects also change. Check in with managers at least one or two levels above you to find out what the highest priority work is now, says Mark Phelps, a senior consultant at Development Dimensions International, a Pittsburgh human-resources firm. Ask for detailed descriptions of your new responsibilities, especially if you've taken on the work of a former colleague.

Take initiative. Now is the time to get out of your comfort zone at work and stretch yourself. At a time when there are fewer people to do work, "look for projects and raise your hand for new assignments that need to be done," says Mr. Phelps. Managers will see you as someone who is willing to go the extra mile. You might also open yourself up to other opportunities by taking on new projects or picking up new skills.

Complete Article

Working Hard to Look Busy

2009-01-26T09:21:00.005-05:00

Via The New York Times

by Jan Hoffman

TO a passer-by, the chic clothing store on Mott Street in Manhattan looked like a tumult of activity. On a recent weekday afternoon, Carolyn Bailey, a supervisor, was fussing with the window displays of women’s clothing, shifting piles of perfectly folded sweaters, spacing hangers a finger-width apart, debating avidly on the phone with a higher-up about coordinating outfits.

Though she appeared occupied, intently so, she was creating an illusion of busyness. The NoLIta shop was empty.

“You don’t want anyone from corporate to walk in and see you doing nothing,” Ms. Bailey said. “You’ve got to keep busy for them and the clients. You have to be proactive —” she broke off to reposition a handsome pair of boots, “so we’ll do a lot of refolding and dusting. Hey, I might just mop!”

By day’s end, six customers had wandered in. Ms. Bailey charmed three into making purchases.

“I’m putting the energy out there,” said Ms. Bailey, a single mother. “I have to stay positive. And busy.”

In a sunny economy, workers joke about frittering away the hours during traditional slow times, like January, confident that things will eventually pick up. Looking busy when you’re not in order to fool the boss can be something of an art form.

But now, when business is verrry slow and the possibility of layoffs icily real, looking busy is no joke. In retail and real estate, restaurants and law offices, many workers are working hard to look necessary — even when they don’t have all that much to do.

Their concerns are warranted. The unemployment rate is 7.2 percent, more layoffs have been forecast for 2009 and employers have been shrinking workweeks. While staff reductions have left many remaining employees feeling breathless with too much work, at companies where downtime is glaringly obvious, employees are becoming creative about disguising idleness.

Complete Article

On The Job Training: Can Obama's Huge Infrastructure Program Really Work?

2009-01-16T10:59:00.008-05:00

via The Wharton School of the University of Pennsylvania

Anyone looking for an indication of how dramatically the American political landscape has changed since September 2008, when the global economy slid into its meltdown, should consider this: The proposal floated recently by President-elect Barack Obama to spend at least $675 billion over just two years to stimulate the moribund economy ?-- with the largest share of the money slated for infrastructure projects aimed at repairing crumbling roads, bridges, sewers and the like -- is drawing no serious political opposition, even from conservatives who not long ago would have railed against such a massive spending increase. To win even broader support for the proposal, Obama advisors announced a plan this week to include about $300 billion in tax cuts for workers and businesses.

To be sure, Obama's infrastructure plan has drawn considerable debate, but mostly over the details -- the size of the stimulus program, how to structure the plan to create the most jobs in the shortest time, and how to administer such a large program to limit corruption and pork-barrel projects.

Complete Article

Keeping The Ball Rolling

2009-01-14T09:04:00.001-05:00

THE UN-COMFORT ZONE with Robert Wilson

I know an advertising agency owner who never fully takes a vacation. He takes his family to fairly exotic locations, but never so alien that they are outside the reach of modern communication. In other words, he is never further than a cell phone call or email away. He checks in with the office several times a day – much to the chagrin of his family who want him to be fully engaged in the holiday at hand. So, he ends up sneaking off under the guise of visiting the restroom, or going to the bar for a cocktail, in order to connect with his staff, a client or a prospect. His wife and kids aren’t fooled; they just sigh and accept the inevitable. I used to think he was a control freak – someone who couldn’t let go and let someone else take over – until I came to understand the concept of Momentum.

In science, Momentum is equal to Mass times Velocity. Or just think of Indiana Jones in Raiders of the Lost Ark running as fast as he can out of the tunnel while that huge stone ball rolls faster and faster after him. In business, Momentum is the point at which success begins to come easily. Business veterans jokingly refer to it as having, “paid my dues.” In short, Momentum is an accumulation of acquired knowledge, skill, experience and connections. And, those who understand it... also know it can be fragile and easily lost.

Sales professionals who have achieved Momentum will tell you that you must pursue a number of activities to generate sales leads: phone calls, emails, sales letters, networking events, etc. You keep it up building dozens, then hundreds of leads at a time. Then to convert those leads to sales you keep following up on each of them in a timely fashion. Meanwhile, you are still maintaining all the activities that continue to generate leads. So between generating leads, following up on leads, then turning leads into sales, you begin to feel like the guy in the circus who spins plates on top of poles – rushing from one plate to the next to keep them spinning.

No wonder these folks hate to take vacations – it breaks the Momentum they’ve spent months or years creating and they know it takes time to get it going again.

Years ago when I first started giving speeches, a seasoned professional speaker advised me, “It took me ten years to quit sweating cash flow, but even so, it is still all about non-stop marketing.” In other words: maintaining Momentum.

For a growing company, Momentum is the point where you have done enough advertising, marketing, public relations, networking, customer service, and so forth that business begins to flow. It is the point where you are garnering the precious and often elusive word-of-mouth referrals. Momentum is about building a reputation. Acquiring it, however, doesn’t mean you can taper off on your efforts... but it does mean that your efforts will become easier.

The best thing about Momentum is that once you get it, motivation becomes self-perpetuating. Momentum is energizing. It keeps you on your toes. And, the rewards come quickly and regularly.

I have found this to true in all pursuits. Even when I am writing fiction there is always a certain point in a novel that it takes on a life of its own and demands my daily attention, energy and focus until it is complete. Unfortunately, nothing quite puts the brakes on Momentum like finishing a book, or completing any other major task. The trick to avoid losing that Momentum is to begin another book or another task before you complete the first one. Then you just shift your energy over to the next project that is already under way.

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.

Innovation Should Mean More Jobs, Not Less

2009-01-08T09:59:00.007-05:00

Via New York Times

By JANET RAE-DUPREE

CREATING new jobs is a good way to get America’s economy moving again. That’s not the controversial part of President-elect Barack Obama’s economic stimulus plans. As usual, the devil is in the details. And innovation advocates fear that if the devil runs amok, a short-sighted emphasis on jobs over long-term productivity may bog down the economic recovery.

The problem, as they see it, is a centuries-old misconception that innovation is synonymous with automation, which in turn leads to the elimination of jobs.

“If you invest in a technology that makes something more efficient, the fear is that people will be put out of work,” says Kevin Efrusy, the venture capitalist whose firm Accel Partners is the lead funder of several important Silicon Valley start-ups, including Facebook. “But it’s just the opposite. When anything becomes cheaper, we consume a lot more of it. The overall economic effect is, you create and expand entire new industries and employment goes up.”

Complete Article

Make Sure All That Spending Is Well Supported

2008-12-16T08:11:00.001-05:00

Via
Washington Post

Some transit or rail spending can,
of course, promote efficiency and productivity ...

By Joel Kotkin

It's the new buzzword: infrastructure.

President-elect Barack Obama has promised billions in infrastructure spending as part of a public works program bigger than any since the interstate highway system was built in the 1950s. Though it was greeted with hosannas, his proposal is only tapping into a clamor for such spending that's been rising ever since Hurricane Katrina hit New Orleans in 2005 and a major bridge collapsed in Minneapolis last year. With the economy now officially in recession, the rage for new brick and mortar is reaching a fever pitch.

But before we commit hundreds of billions to new construction projects, we should focus on just what kind of infrastructure investment we should -- and shouldn't -- be making. More important, we should think beyond temporary stimulus and make-work jobs and about investments that will propel the economy well into this century.

After all, it's not that we stopped spending on infrastructure over the past decade. It's that mostly, we haven't spent on the right things.

New York City, for example, has wasted billions on its bloated bureaucracy and on constructing new sports stadiums and other ephemera deemed necessary to maintain Mayor Michael Bloomberg's "luxury city." Meanwhile, many of its subway and rail lines have deteriorated. Over the decades, brownouts and blackouts, caused in part by underinvestment in energy infrastructure, have become common during periods of high energy use in the summer.

Similarly, California Gov. Arnold Schwarzenegger has extolled the Golden State as "the cutting-edge state . . . a model not just for 21st-century American society but the world." Yet California's once envied water-delivery systems, roadways, airports and schools are in serious disrepair. Many even more hard-pressed communities -- Cleveland, Pittsburgh, Philadelphia, Baltimore and New Orleans -- have similarly wasted limited treasure on spectacular new convention centers, sports arenas, arts and entertainment facilities and hotels while allowing schools, roads, ports and other critical sinews of economic life to fray.

Complete Article

Breaking the Mold: the U.S. Productivity Miracle

2008-12-16T07:42:00.000-05:00

Via
Citizen Economists

By Cheryl Grey

All other things being equal, high productivity growth—a rise in the ability to create more with less of anything—remains the central driver for a nation’s economy, and United States productivity is world renowned (and envied). In the 1990s, productivity growth in many other economically-developed nations remained flat or even decreased; for example, in Spain productivity in service-related industries slowed -1.2% between 1995 and 2004. But in what some economists are calling a productivity miracle, the U.S. managed a 1.3% acceleration in the same field at the same time.

This productivity miracle is even more impressive considering the concept of convergence. Major technological advances generally happen in economically developed regions, particularly the ones such as the U.S. and the Eurozone that sponsor fundamental (non-patentable) research. Because it’s easier to mimic somebody else’s success rather than create your own, developing countries tend to copy the innovations of their more advanced neighbors and ride on their technological coattails, leading to higher rates of productivity growth. However, as these nations become richer themselves, their growth rates tend to slow to match everyone else's. So while productivity growth rates are high in China (6.4%), Russia (3.7%), and South Korea (3.2%), it’s because they’re toward the beginning of that convergence pipeline, with a long row to hoe before they begin to slow.

Complete Article

U.K. Manufacturing Output Drops Sharply

2008-12-09T18:59:00.001-05:00

News Brief
Via
Wall Street Journal

LONDON -- The recession in the U.K. manufacturing sector deepened in October, with output dropping a larger-than-expected 1.4% on a monthly basis, the Office for National Statistics said Tuesday.

October's decline is the eighth successive monthly drop and marks the longest consecutive contraction in manufacturing output since 1980. The monthly decline was the largest since March 2005.

On a year-to-year basis, manufacturing output dropped 4.9%, a decline unmatched since June 2002.

A Dow Jones Newswires survey of economists had forecast manufacturing output would fall by 0.5% on a month-to-month basis and by 3.2% in annual terms.

Money Tranfers Via Cell Offered

2008-12-08T08:46:00.002-05:00

News Brief

Via
Wall Street Journal

Vodafone Group PLC plans to announce a partnership Monday with Western Union Co. to allow international money transfers via mobile phones, as the wireless carrier seeks to tap into the increasing flow of cross-border remittances.

The companies are initially launching a pilot program that will allow residents of Reading in the United Kingdom to send money to family members and friends in Kenya, where Vodafone is the 40% owner of local wireless operator Safaricom Ltd. If that program is successful, the companies will expand it to other countries.

Office Politics: Good Or Bad For Productivity?

2008-12-01T18:07:00.002-05:00

APS Editor's Note:
Common wisdom is that office politics can lead to low productivity. Perhaps that is not always the case ...

Via
NY Times

Career Couch

The Win-Win Way to Play Office Politics

By PHYLLIS KORKKI

Q. You’ve been told that to succeed at work, you have to play office politics. You don’t care to play games; you just want to get your work done. What should you do?

A. As hard as it may be to accept, “any workplace that has more than two people has office politics,” said Peggy Klaus, an executive coach in Berkeley, Calif.

Whenever Ms. Klaus gives speeches on this topic, people groan and contort their faces, she said. “They think they’re above the fray, or they deny that politics in their office exists, or they say it’s not important to them,” she said. This is a big mistake that could stall or even derail a career, she said.

Office politics is simply “being smart about how you manage the relationships at work,” said Marie G. McIntyre, a career coach and organizational psychologist in Atlanta and the author of “Secrets to Winning at Office Politics.”

Complete Article

Economists See No Growth Until 2nd Half of 2009

2008-11-14T10:46:00.001-05:00

Via
The Wall Street Journal

The U.S. economy is in the midst of the worst part of the recession, but growth may return by the second half of next year, according to economists in the latest Wall Street Journal forecasting survey. Nearly two-thirds of respondents say the Treasury Department's Troubled Asset Relief Program, which has taken stakes in major financial institutions, is helping markets. On average, respondents expect the unemployment rate to rise to 7.7% by December 2009, up from 6.5% last month.

Complete Article

Keep employees in loop for maximum productivity

2008-11-02T09:21:00.000-05:00

By Marcia Heroux Pounds
The Sun Sentinel

Iris Harris has two jobs.

First, she was recently promoted from an executive assistant to an office manager for the Daszkal Bolton accounting firm when it opened a new office in Sunrise, Florida. Then, she was asked to assume the additional duties of an executive assistant.

"I was thinking, 'Wasn't I promoted from that?' " she says.

But Ms. Harris saw the company's need and recognized she could generate revenue for the firm by working with its professionals.

"At the end of the day, we all have the same goal," she says.

Employees today are often being asked to do more than one job. Sometimes, a layoff has occurred and the work still has to be done. Other times, there is a need to add staff but the business is taking a cautious approach to hiring in a slow economy.

More companies are looking at improving efficiency. Sometimes, that means merging two functions into one, says South Florida compensation specialist Ralph Parilla. "Employees are really responsive to it. They see it's difficult out there," he says.

Complete Article

Showing The Payback For Improving Efficiency During Difficult Times

2008-10-24T15:20:00.001-04:00

Via
Forbes

You Gotta Have A Plan
By Ed Sperling

With a recession looming, uncertainty in the credit markets and wild gyrations on the stock market, most companies are battening down the hatches to weather the storm.

That means it won't be long before the chief information officer gets a knock on the door--or more likely an e-mail--to come talk to the chief financial officer and CEO about what he or she is doing to cut costs. The general rule of thumb is that it's better to have a plan than to be given one. And it's better to say how you're going to cut costs than to be told your budget is being cut.

Forbes.com caught up with James Kaplan, principal in the New York office of McKinsey &Co., who has just completed an in-depth study on managing information technology (IT) in a downturn.

Forbes.com: Why should the CIO be concerned about a downturn?

James Kaplan: When business slows, there's a natural instinct to cut IT costs.

Is that because IT is one of the largest budget items?

The size of the expenditure varies greatly by industry sector. If you're in financial services or telecommunications, it can be a large percentage of revenue or operating expenses. In manufacturing, it's usually rather small. But in many cases, the instinct to cut IT in a downturn stems from the perception that it's largely discretionary. There's also uncertainty around the value. In organizations where there is more uncertainty and doubt about the value derived from IT, there is more of a tendency to cut when times get tough.

Complete Article