THE ENTREPRENEURIAL ALTERNATIVE

Part 3: Matching Strengths and Customer Relations

In Part 2, the discussion centered on the need to focus on your talents and strengths. The notion that we should take time to identify our weaknesses and develop strategies to address them via education and training is too slow and cumbersome. Today’s businesses want immediate needs addressed and any thing that you cannot do requires you to find team members who can.
In review, the four “talking points” regarding setting up your consulting business are:
1. Know your strengths (includes your area of expertise);
2. Be prepared to develop and exploit opportunities instead of presenting yourself as a “problem-solver”;
3. Match your strengths to customer needs; and,
4. Manage customer relations with more energy and attention to detail than you think may be reasonable (the customer will tell you when to stop)
This discussion will focus on numbers 3 and 4.
Matching strengths means you need to find out more about your potential customer before you approach them. In other words, do your homework first. You can find out about companies through their website or if they are a publicly–traded company, you can learn more by visiting investing or business sites such as thestreet.com or forbes.com.
Certainly a good place to start is to use your favorite search engine to see what is being said about the company you are investigating and/or the industry they represent. A really good insight would be to explore public discussion areas such as blogs or newsgroups. Another excellent source of information is the local newspapers from the town where the headquarters are located. You can also learn inside information from the local chamber of commerce or the Better Business Bureau.
Remember: business is about the consumer. Your critical step is to learn what the consumer is expecting from the business you want to help. The opportunity is in the future; trying to understand what went wrong in the past is difficult (see comments about problem-solvers versus opportunity exploiters in previous discussions). Use the company’s past mistakes to your future advantage. The best place to learn about mistakes is from the consumer of the product.
Matching your strengths with a business need may take weeks or months to prepare. Don’t fall prey to developing quick fixes, as companies will see through that kind of tactic. Plus, you’ll find that companies will pay more if you are delivering a customer-focused solution.
Finally, number 4 from above. This strategy cannot be said enough times: under-promise and over-deliver. Bring more to the table than your customer expects and respond immediately to their requests. You may not get your answers as fast but never leave open the thought that you are non-responsive. Always leave the customer relationship with the idea that you did everything and establish the perception that you went beyond the 100 percent effort.
In sports the thought is that you can’t always win the game or the match but you should never leave the playing field with the idea that you could have won if you tried harder. As athletes state, “they leave it all on the field.” This is the same approach you need with your customers. You can’t always win but when you are engaged, you never leave without exhausting every piece of energy or thoughts.
Your dedication and energy to the task will not go unnoticed. Plus you’ll get outstanding recommendations for your next project.

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GROWTH <> LEADERSHIP <> EXCELLENCE
© 2006 3 Minute Learning LLC

THE ENTREPRENEURIAL ALTERNATIVE

Part 2: Identify Attitudes and Behaviors

In Part 1, the discussion centered on the need to change and be ready to unlearn, learn and re-learn. While formal education is expensive, much of the knowledge and skills that can help you as an entrepreneur are readily available and much less expensive on the Internet and through professional organizations.

Using your expertise and training as a consultant is the least expensive way to get started in your own business. Even though you can run your consulting business inexpensively, that has no relationship on the quality of services you can provide to businesses. In fact, consultants and temporary workers are exactly what businesses are seeking today: expertise without paying for benefits or long-term commitments.

There are four “talking points” regarding starting your consulting business:

1. Know your strengths (includes your area of expertise);

2. Be prepared to develop and exploit opportunities;

3. Match your strengths to customer needs; and,

4. Manage customer relations with more energy and attention to detail than you think may be reasonable

Know Your Strengths

Over the past several years Marcus Buckingham has released books and audio presentations on the subject of “Know Your Strengths.” If you want to be an entrepreneur, take time to read these books. For the purposes of this discussion, the two points you want to start with are (1) identify your talents and (2) don’t waste time trying to improve your weaknesses.

It seems like a simple task: identify your talents. Most people make a list and start selling people on the idea that their talents will help an organization make more money. Unfortunately, while your ideas are excellent, the most talented people don’t always get the job. There are literally thousands of people like you saying the same thing. Add to that people who are ready to undercut your bid making completing the task a loss rather than a profit. Government contracts are notorious for selecting the lowest bid, not the most talented people.

The person who has the best opportunity is not the one espousing to solve past or current problems but the person who has a plan to exploit opportunities. Companies don’t make long-term profits by solving yesterday’s problems. In the short-term, problem-solvers will cost companies money (your contract for example) and time. The return may be break even or a little profit at best. And once you are gone, the problems may re-surface. Hence, companies are skeptical about what you can do for them as a problem-solver. If your strongest talent is problem-solving you need to diversify by adding more complementary thinking to your proposals.

A good example is package design. Designers take an under-performing product and design a new package that gives the item zest and appeal. They didn’t try to solve the problem of the product only its presentation.

Taking this example a step further, marketing now takes this old product in the new package and uses demographics to trend its success. Marketing answers the questions of “who, what, where, why, when and how.” This kind of problem-solving is not looking backwards but instead to the future and the steps necessary for a successful outcome.

If your talent is problem-solving, make yourself different by tying together diverse thinking, even if initially, the thoughts seem unrelated. In the science of discovery, many times the outcome is not the one expected but the new discovery proves to have many uses. Show your prospects how simple and sometimes unrelated ideas can suddenly be very profitable.

At one time, the hot dog was a lonely meat item on a sparse dinner plate. Then someone got an idea to take the meat, wrap it in bread and cover it with condiments. The hot dog industry has been worth billions of dollars ever since. If one of your talents is discovering “hot dogs,” you’ll be worth millions in a few short years.

Ignore Your Weaknesses

With respect to working to overcome your weaknesses, that is a plan to fail. If you don’t know package design, then find someone who does know. If you have the latest and greatest hot dog but you can’t bake bread, hire a baker. Talented people know when to surround themselves with complementary people that can complete the task.

If you are a “big” thinker and don’t do project management all that well, don’t start taking classes and buying software to teach yourself how. Find a partner who has that talent. The time you’ll spend trying to overcome your project management weakness will cost you more than hiring a partner. Plus, you may never learn how to do good project management anyway. As a result you lost a potential contract and wasted your financial resources and time.

If anyone ever asks you to identify your weakness, you say “none.” The reason is that you surround yourself with other talented people who have the expertise to fill the gaps. Be like Mission Impossible and put together teams for the tasks.

The only people interested in you for your weaknesses are those selling educational products, seminars, or the so-called “gurus.” The problem is that our entire educational life was spent being told about our weaknesses and as a result we think we need to keep addressing them. Rounding out your personal life by taking special interest classes is a good thing; taking time out of your work week to “upgrade or complete your professional presentation” is wasteful.

To be continued in Part 3.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

THE ENTREPRENEURIAL ALTERNATIVE

Part 1: Getting Started

Employment trends over the past 6 years have demonstrated an important new focus for people: you need to re-invent yourself often. Unfortunately, not many people will enjoy lifelong employment (with a defined set of skills) at one company as was the case in previous generations. Alvin Toffler said it best in 1970 when he predicted that people will need to be committed to learning, un-learning and re-learning. This means not being “married” to your college or vocational degree, but instead pursuing continuing education.

Paying for adult education is expensive. Once a person has a college degree, the opportunities to access government sponsored job retraining programs are limited. College degreed individuals can rarely tap training programs like ones for employees terminated from manufacturing or other “blue collar” jobs.

Once a person graduates from college, it is difficult to switch occupational focus and return for a new degree. For example job opportunities for teaching K-12: most potential candidates will need several courses in special education, refresher courses in specific course content and taking standardized tests to demonstrate proficiency in a subject area. For many, the price tag on new job preparation could run more than $10 thousand. The added insult is starting pay at less than $30 thousand per year, hardly enough to justify adding new debt.

Another factor is time. Most people already have significant debt and may be living with parents to pay loans at a faster rate. This may mean more than one full-time job or several part-time jobs to cobble together enough income to accelerate payment of the debt. It becomes difficult to spend the hours needed to attend classes and meet the obligations of coursework when so much time is dedicated to working.

The idea of becoming an entrepreneur is also daunting. If you are already short on funds because of debt, it is not likely you will get or want another loan to start a business. Logically, it is too big of a gamble to start a new venture with limited funds or deep debt.

There are some opportunities, such as freelance teaching or writing that will let you get started using your expertise and training on a limited budget. The Internet gives you potential to reach audiences with a minimum investment. Even if your web design experience is limited or non-existent, you can still build a web site with templates and pre-designed tools that give you a fresh start in your business. Hosting costs are also low enough to keep your new efforts affordable.

Your website is today’s new business card and résumé. You need to consider how your website will represent you and what will be the site’s focus. While it may be tempting to “make money” with advertising, it may compromise your image with potential clients.

Here’s an important note: don’t fall into the multi-level marketing (MLM) trap. There are many so-called opportunities that will entice you with the prospect of quickly making large sums of money. Most of these offers are scams (pyramid schemes) and the only person who earns the big bucks is the one selling you the entrance fee. If you have to pay to work for someone else and the only way you will make your money back is to lure new people to join as your “downline,” you need to stay away. As grandma would say: if it sounds too good to be true, it probably is.

With respect to training, there are many sites that offer continuing education specific to your field of expertise. A search engine query will reveal hundreds of sites that you can research to get started. Once you have identified several that meet your needs, visit often or subscribe. And don’t forget about your local library; you’ll find many books on business, marketing and computer/software training that you can browse without buying.

You can also tap local colleges that offer small business courses or seminars and get good advice from organizations such as SCORE or the Small Business Administration. The real cost is time and you need to spend as much time as possible preparing for the next step. As the saying goes, failure to plan is a plan for failure.

Critical thinking involves the ability to write down abstract ideas so they can be reviewed and improved. That is the main reason why lending institutions want to see a business plan. If you cannot translate the mental picture of your idea(s) to a physical presence on paper, you need to keep thinking and learning. Colleges that offer small business programming can also help you formulate your business plan, usually at no cost.

Your business plan needs to include immediate, short-range and long-range objectives. If you can’t see your project three years from now and how your ideas will have matured, you are not ready so don’t invest. Over 9 out of 10 business ideas fail within two years, so having a plan that gets you through the most daunting early years is critical.

In Part 2 of this series, the personal make-up and dedication of good entrepreneurship will be discussed.

Tidbits

(1) From Kimberly Waltmire, a member of the USA Today 2006 All-USA Teacher Team, a recognition program for outstanding K-12 teachers:

“We often give children a blank piece of paper but we don’t give them the tools to write. Time and time again, their writing is dull and unimaginative and the kids are so stressed they can’t write. So I allow kids to experience things first and the writing comes last.”

(2) Employers don’t share company strategies is the conclusion from a study of strategy management professionals (“Making Strategy Execution a Competitive Advantage”). The study revealed that 95 percent of companies surveyed do not share their strategic plan with employees. That’s the bad news. The good news: when companies do have a strategic plan, 70 percent report they perform better than the competition. Only 20 percent of companies that do not have a strategic plan report out-performing their competition.

(3) We overlook stress and its physical impact on our bodies because of a slow rise in its intensity over time. The same can be said about inflation: it occurs slowly enough that it can be overlooked. (The exception is the dizzying rise of fuel costs, but that kind of jump in prices is usually not so evident.) Today, it costs $18,400 to buy goods and services (including healthcare, education, utilities and other necessities) that would have costs $10,000 in 1986. Has your income almost doubled over the same 20 years? Probably not; hence the result is the current explosion of credit card debt and the decrease in personal savings. In another 20 years, today’s $18,400 will cost about $30,000!

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

TOO MANY PROBLEM SOLVERS

Take Advantage of Opportunities

The US school system has done a great job in preparing curricula regarding problem solving. It is debatable if students are enjoying any great success with problem-solving curricula and it does offer great amounts of fodder for discussion.

One reason why there is so much emphasis on math and science is because they are easily measurable by standardized tests. Those fields of study lend themselves nicely to factual “right or wrong” test questions that can measure one student’s ability to remember over another. Once test scores are verified, a litany of statistics can be applied to support or defend educational programs.

As a county, we adore problem-solvers and reward those people with high paying jobs and in the case of the military, medals. After all, who doesn’t like the idea that the “good cowboy” is riding into town to deal with the “bad cowboys?” How often was GE’s Jack Welch placed on the pedestal as the company’s great problem-solver? George Patton is romanticized as the “kick butt” get it done general.

The issue is that education, K-16, is producing too many problem-solvers (coupled with technology taking over the role of problem solving) that leaves too many people out of work. Companies regularly use robots or computers during the manufacturing process to eliminate errors and create perfect outcomes at much higher levels than human workers could ever hope to perform. The result is better products but less highly educated people working.

Businesses have found that “leaner” payrolls eliminate middle management problem solvers; sadly these people are not missed. Too many problem solvers tend to cost business money, not make it. The few dollars saved by a more efficient process pales against the loss of customers flocking to a new product and company. A good example is the US auto industry.

This is not to say that business would do well to toss out all the problem solvers. There still needs to be a high degree of input because many problems arise every day. It is just that companies find that they don’t need as many problem solvers as the school systems are churning out on a yearly basis.

The real value for business comes when employees seek to exploit opportunities. They read about new trends that will increase sales or create new designs to attract new customers. The car company Toyota has often said that it is a design company that just happens to make cars.

So education needs to teach entrepreneurial thinking: finding opportunities and how to present them to decision-makers. This class would combine the elements of all school courses: art, science, English grammar, reading, math and so on. An entrepreneur combines the energy and thinking of many different disciplines to make their point.

The problem is not how you measure creative thinking but keeping it confined to the time efficiencies that schools demand. You can measure creative thinking using many traditional methods such as structuring proposals, networking, use of grammar and art and many other measurable factors. It is just not as easy to measure as a multiple choice test and certainly not as efficient. Lack of time in school is the enemy of creative thinking

Overall, isn’t this what business is asking for in their new recruits: to be able to think critically and creatively? Isn’t this the kind of education that makes people valuable and less likely to suffer the indignity of unemployment or working as an over-qualified worker at minimal wage? To prepare students for the future, schools need to take knowledge and show students how it applies to innovation.

Problem solvers abound in every walk of life. What is not as likely to be found is the person who uses good thinking to create opportunities and teach others how to capitalize. That in turn makes more profit for the company and more opportunities for employment.

Potpourri

1) According to American Demographics Magazine, the average US household spends almost $90 per day on goods and services. That translates to $32,850 per year in spending. It also means that the average household needs to earn about $30 per hour to spend at that level (factoring in taxes, insurance and capital spending such as appliances).

2) According to the “2006 Life After College” study, most college graduates stay at their first job for less than 2 years. During the first year, 36 percent report leaving and another 42 percent leave during the second year. About 5 percent haven’t worked since graduating. Newly hired teachers leave after 2 years at a rate of about 50 percent.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

WATCH YOUR DISTANCE

When Leading, Keep the Pack Close

As a bicycle rider, my strength was on the flat or slight decline in the topography. Sure, anyone is strong riding flat or downhill, but my body size made riding in those conditions exceptional. Other riders knew that when the road ahead was flat, it was time for me to take the lead so they could draft and gain greater speed.

When you take the lead, you tend to shift “down” to increase power and speed. A quick glance over the shoulder reveals a line forming to take advantage of the drafting opportunity. The bike speed increases from 16 miles per hour to over 25. It is fun!

This kind of teamwork benefits everyone. The speed is exhilarating and casual observers marvel at the speed the group is generating.

The problem can be the length of the time these “perfect” conditions exist. My strength allows me to continue endlessly for miles; the riders behind me, despite the “easier ride” start to fall back from fatigue. As the distance between me and the next rider lengthens, the draft benefit decreases and soon the group falls apart. If I don’t realize what is happening, I could easily be several hundred yards ahead.

Now this is not a story to create awe-struck kudos. It illustrates what happens when a leader’s vision is too far ahead of the pack. An idea that creates too much change or asks that people just “go along” will create a virtual distance between the leader and those looking for a new solution. This puts the leader too far out in front and little support from those in the rear. The military calls this “outrunning your supply lines.” It is not a situation that has a strong enough foundation to keep going.

As you move forward and try to keep your “pack” together, make sure you haven’t shifted down too fast. Build momentum by accomplishing smaller tasks successfully. Begin to delegate and involve people with greater shares of your vision so their confidence in the vision’s direction continues to grow. People like to stay in their comfort zone and if you don’t make the next level comfortable, they will tend to drift back.

This is really not that difficult for a leader to implement, Check and calibrate your approach and growth regularly to keep people from drifting. Allow others to take the lead; this may slow the project down somewhat but it allows everyone to “catch their breath.” In my example above, if the second and third riders were to take turns leading the line, the pace would slow to a comfortable level allowing everyone to stay together.

The objective in implementing your vision is not to see how fast you can accomplish the tasks or how outstanding you are by working “solo.” It is always going to be about how many people adopt the new strategy and feel successful.

Be a leader by knowing when to step out of the way. The highly successful baseball manager Sparky Anderson was asked during his Hall of Fame induction what his managing approach was in leading the “Big Red Machine” of the 1970’s. His answer: I stayed out their way and let them play.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

OCTOBER MUSINGS

Perceptions

It is rare for subordinates to get a chance to formerly review their managers. Even though 92 percent of managers rate themselves as good or excellent, only 67 percent of their subordinates agree with the assessment. No manager ranked themselves as “poor”, 10 percent of their subordinates provided that assessment. (source: Hudson National Opinion survey of workers, 2006)

Many companies have tried 360 degree assessments to improve communication and productivity in the workplace. Evaluations tend to become popularity contests and do not always represent feedback that may improve employer-employee relations. Management at any level needs top improve its level of communication with employees. People in the workplace just want an opportunity to be heard.

Regular and informal conversations with employees will vastly improve relations and productivity without any of the expensive gadgets or fads that populate the workplace. The term used to be “work around management” or WAM and it is unfortunate that companies don’t use that simple technique on a daily basis.

Any company that wants to improve its productivity and ultimately its profitability needs to increase its “paying attention to people quotient.” Making the workplace meaningful will yield the kind of results management is seeking.

Wage Info Good News to Colleges

College administrators and recruiters love the kind of earning income reports that came out recently. Adults 18 and older with a bachelor’s degree earn an average of $51,154 in 2004. A high school diploma only earns the person $28,645 and non-high school grads only earn $19,169.

The greatest myth in education is that a college education leads to high paying jobs for all graduates. Using average income data, a college degree easily outpaces a high school graduate and a high school dropout. Yet the trend, measured since 1999, seems to show that the gap is closing.

In 1999, a bachelor’s degree earned over twice the amount of a high school graduate. Looking at the 2004 data, the gap is less than two times greater. Given the recent data that shows the average annual wage in the US is around $40,000, it seems that the gap between degrees has shrunk again.

Add to the supposed college wage advantage the average debt acquired by earning a bachelor’s degree, it could take up to 10 years for many college graduates to actually earn more than the high school graduate. For example, today’s newly hired teacher will most likely earn less than $35,000 in many school districts. After taxes and making loan payments, the difference will be much less than the customer service rep with a high school diploma.

There are some high paying jobs in the marketplace for college graduates, but not enough to justify the extreme emphasis on going to college. While nearly 70 percent of high school graduates try at least two years of college, only 45 percent of adults over 25 actually have a degree. And of those with a college degree, the average yearly income is influenced by the less than 1 percent that is earning millions of dollars per year as a CEO, entertaining or professional athlete.

Healthcare Crisis

There is a tremendous emphasis on healthcare with respect to those persons who do not have insurance. Universal healthcare is often discussed but will not become reality until the current crisis becomes critical.

The irony will be once universal healthcare is available is who will take of us? Retiring healthcare professionals will leave a tremendous void in communities. Just as “baby boomers” will be retiring in record numbers over the next 10 years, so too are people in the medical professions. Over 33 percent of today’s physicians are older than 55.

According to Arthur Garson, Jr, MD, Dean of the University of Virginia School of Medicine, healthcare providers are rapidly moving from providers to consumers. So while everyone may eventually get a ticket to the dance, very few of us will get a chance to hear the music.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

MISTAKES

Have an Interview? Avoid these Mistakes

According to a report in USA Today (10/17/06), the most common job interview mistakes noticed by employers are:

(1) Little or no knowledge of the company (47%)

(2) Unprepared to discuss skills and experience (17%)

(3) Unprepared to discuss career plans and goals (9%)

(4) Limited enthusiasm (9%)

(5) Lack of eye contact (3%)

Considering that today’s youth will spend at least 15 to 21 years in school you would think that someone would have reviewed the essentials on how to prepare for a job interview. Plus, access to the Internet leaves little room for excuses of ignorance or the lack of preparedness.

Most likely, someone at sometime did go over the essentials of job interviewing. The student was asleep, absent or “zoned out” during the presentation. The problem is self-discipline and the attitude of entitlement.

If you have an interview scheduled, learn more about the company. Go to their website; if it is a public company, look them up at Hoovers.com; call the local chamber of commerce; or ask a couple of employees about the company. Just don’t go in empty handed.

One of the “hidden” benefits of learning more about the company is your ability to negotiate a better contract, wages or benefits. Also, through research you may discover that the company may not be right for you.

One of the current favorite interview strategies is to have you role play several different scenarios, including describing future goals and objectives. Run various scenarios through your mind to determine the best responses you can generate. Take a look at recruiting sites such as Monster.com to see what is typically asked during interviews and practice.

Finally, be enthusiastic and make good eye contact. These intangibles may be all that separate you from the “crowd” and a high paying job. No one is entitled to a job; you earn it.

Teacher’s Dead Man’s Chest?

Today, the US Department of Education announced that a new program is in place to reward teachers with cash bonuses when their students score high on standardized tests. Scandals: on your mark, get ready, set, go!

Instead of this absurd incentive program that if successful, will only prepare students to take standardized tests and will have little bearing on future success, why not increase the base salaries of new teachers? Currently, new teachers are entering their respective districts with pay that is $10 to $12 thousand below median wages in the US. These teachers are college graduates, have passed certification tests and are considered highly qualified yet are only making slightly more wages than a high school diploma salesperson.

Communities still pay teachers as though it is a woman’s job and a second income for families. The attitude that it is only a 9-month job somehow justifies that teachers deserve less. Is it any wonder that so many teachers quit after two years? Low pay and no respect certainly won’t make people feel very welcome.

So next year when the scandals start to be revealed, just remember how easy it could have been to avoid. Teach lifelong excellence and personal dedication over one-time test taking and pay teachers for the ultimate value they bring to our communities.

The Most Lucrative Big Business

If you have read these columns over the past several months, you would have learned about all the money colleges are earning through various means: credit card companies, alumni gift giving, tuition rate hikes, sports contracts and licensing, and investments and real estate deals. Next, add the contributions of the American taxpayer who will spend $30 billion this year on financial aid for college students.

Without financial aid, most high school students will stay at home. The average cost of four years of college is $49,000 at public schools and $116,000 at private schools. Since 1990, the average public costs for tuition, fees, room and board have more than doubled. For example in 1990, costs at private schools were $13,476; in 2006, $29,026. Public schools in 1990: $5074; in 2006: $12,127. (Data from USA Today, 10/17/06)

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

MINIMUM WAGE

Are Minimum Wage Laws Really Helpful?

In Pennsylvania, along with a handful of other states, lawmakers passed legislation to increase minimum wages from the Federal minimum of $5.15 per hour to $7.15 per hour by July 1, 2007. Lawmakers are now looking at steady increases in Pennsylvania minimum wages so that by 2010 it will be around $9.35 per hour. Statements such as “minimum wages that provide dignity instead of poverty” are echoed throughout the political world. Certainly lifting people out of poverty and offering a better quality of life can’t be a bad idea right?

Who really benefits from higher minimum wages? In Pennsylvania, the state income tax deduction is 3.3 percent. Higher wages increases the income for the state based on the gross pay. Another 1 to 2 percent is taken out for local taxes. On the federal level, Social Security and Medicare get their share and the federal tax rounds out the deductions.

The two dollar per hour increase is about $1.20 actual increase or $48 per week. This is less than $200 per month, $2400 per year, an amount not likely to lift people out of poverty. If you take into account inflation, the minimum wage needs to be around $15 per hour in order for people to afford a middle-class lifestyle.

Another negative effect on people living in poverty would be state assistance programs that are based on income. This increase will eliminate many individuals and families that once qualified for state assistance programs, such as housing, food and healthcare. There were no indications that minimum assistance levels would increase along with the minimum wage.

People will now need to make a choice between higher minimum wages and state assistance. Given the prohibitive costs for healthcare, people may choose not to work full-time. This sounds counter-productive and illustrates that money is not a simple solution to our social problems.

Perhaps a better idea, instead of raising the minimum wage, would be to exempt any taxes and other tax deductions from persons making less than $20K per year. At the same time, make sure that the basic needs for security and safety are addressed by providing healthcare, food and utility coverage for persons earning under the $20K amount. At least the lower per hour wage is “real” and won’t deter employers from providing or people from taking low-end paying jobs. Isn’t this the hot issue behind the immigration policies?

Families earning more than one million dollars per year are growing at 7 percent a year while people falling into poverty are increasing by 14 percent a year. The median yearly income is less than $32K per year. This data points to the idea that wealth is becoming concentrated and not being returned to our communities. People who have had good fortune are responsible for those who don’t. That’s a basic tenet of civilization and certainly most religions.

If politicians are opposed to taxing higher income families, then families should show their compassion by donating money to non-profit organizations that feed, clothe and offer help to people living in poverty. Instead of giving to world causes where your money may or may not be effectively utilized, consider giving to local organizations that are run by your neighbors and people you know.

Until minimum wage laws actually rise to the point where people are self-sufficient, communities need their wealthy members to be more generous. Ironically, by helping people pay their bills and live securely, they will become consumers with more money to spend on the products that make wealthy people rich.

Credit Card Marketing

USA Today (10-02-06) reported that the largest colleges in the US earn millions of dollars every year by allowing credit card companies to market on campus. Further, colleges share/disclose students’ contact information and where they live on campus.

The average outstanding balance on student credit cards is $2169 and the average college senior holds five credit cards. When will parents get some protection from these greedy institutions that are well-endowed by alumni contributions, supported by state and federally tax dollars and have no reservations about raising tuitions at a pace greater than inflation? How much money does this country need to pay for advanced high school?

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

OCTOBER THOUGHTS

Challenges for the Small Business Owner

From a survey of 1000 sole proprietors, the top challenges for them included:

1) The inability to focus on generating new business

2) Spreading time across multiple projects or roles

3) Limited resources

4) Running their business more efficiently

5) Not having enough time to focus on own passions

When you work alone or with a small group of people it is easy to be distracted. There are so many items that seem important and it is hard to know which ones to ignore. It seems like “that one might be the one” and so you pursue it until a dead end appears. Unfortunately, your time and financial resources get stretched even further.

Gurus tend to be a distraction more than offering value. Everyday it seems like experts surface with the solutions to your problems. It is difficult to evaluate all this knowledge and know when to leave it alone. Until you have been through it you just don’t know when new ideas or knowledge will help you. Experience does matter. One idea for evaluation: if the guru is selling something that is going fix your problem quickly and improve your bottom line, you can safely move on without a second thought.

There are professional groups that can help such as SCORE, the Small Business Administration, college business schools and your local chamber of commerce. These organizations give you a chance to ask questions and to learn how to ask questions that may help you analyze if the “new knowledge” is valuable or just re-hashed time wasters.

Most importantly, research, learn and be prepared before you start your business. If you start with a clear direction you are less likely to be distracted by the daily bombardment of ideas that will capture your time. In doing your homework beforehand you may also discover a key voice or someone who will be your mentor through the process. Think about it: in nearly every successful business story there has been two people that work together to develop their ideas, support and help each other resist the temptation to be distracted.

What is a Generation Y?

Baby Boomers, Generation X and now Generation Y; who are these people? Baby Boomers represent the graying of America, the AARP generation and the more than 70 million population group that will crash Medicare and Social Security over the next 10 years.

Generation X are the kids of Baby Boomers that were going to bring new thinking and direction to American society. Generation X are the people who are going to take care of the environment, the poor and homeless and keep society strong.

Generation Y are people born between 1982 and 2000, who are influencing the consumer habits of families. These are the kids were born to shop and are influencing their parents as to what is “cool.” From a marketing and manufacturing standpoint, Generation Y picks products that will help them stand out among their peers.

For example, Gen Y may pick a certain brand name and heavily promote it to friends and family. It may be a computer, an MP3 player, sweaters, pants, shoes or cars. They will focus on this item to build their image. Gen Y may have the most expensive plasma TV but at the same time will buy clothes in thrift shops or via eBay. That person wants to be known for his or her TV.

In promoting or marketing your products or services to the Gen Y consumer, you need to rely on viral marketing and get some notoriety from Gen Y influencers. That group is the savvy consumer and they will help you gain access to other consumer groups.

The Blogosphere

According to research by USA Today, since March 2004, the blogosphere has doubled in size every 5 to 7 months and now has over 53 million blogs. Everyday nearly 2 blogs per second are created and there are 1.6 million daily postings or 66,600 per hour.

By language, 39 percent of blogs are written in English, 31 percent Japanese, 12 percent Chinese and 2 percent in Spanish. Only about 40 percent of bloggers (people who write blogs) tend to stay active for at least 3 months.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

SMOKING and DRUGS

Tobacco Use Drops

The percentage of boys and girls ages 12 to 17 that used tobacco products is dropping. In 2002, the reported use was 12.3 and 13.6 percent for boys and girls respectively. By 2005 the use had dropped to 10.7 and 10.8 percent respectively.

Since the early 1970’s, smoking education programs have been in place in K-12 education. All the non-profit health organizations such as heart, lung and cancer have introduced games, booklets, videos and mascots to send the message to K-12 students that smoking is harmful and needs to be avoided. After nearly 35 years of effort, the programs seem to be working.

Or are they? The cost for a pack of cigarettes has increased dramatically, enforcement agencies have deterred small shop owners from selling to minors and society in general has shunned the habit with more laws banning public smoking. And, in the workplace, employment may hinge on answering the question about whether or not you smoke. Some companies have targeted employed smokers whenever there are terminations.

These messages may be stronger than education. Adults see smoking as a negative behavior even among the ones who smoke. This kind of talk around their children sends a message of disgust and that may be the turning point. Researchers know that children follow the lead of their parents. If they hear enough negative talk about smoking, health and social acceptance that may be the trigger point not to start.

Education about smoking now completes the adoption of non-smoking behavior by reinforcing what the child hears at home. As long as the program focuses on healthy alternatives to a smoking lifestyle that can be as satisfying, smoking among young people will be minimized but not totally eliminated.

To completely eradicate smoking among school students of all ages, schools need to influence the social circles of peer groups. Every school has cliques and they are part of the dominating social circles. The leadership in these larger circles needs to be influenced so they set the trend of not smoking. If you lose any of these social influencers, many more students will follow and the drop in smoking numbers may start to reverse.

Stop Anti-Drug Campaigns

Is there anyone who really believes that people who use drugs will be influenced by commercials showing “eggs in a frying pan?” Remember the crash and burn films in driver’s ed that were supposed to encourage safe driving? Behaviorists know that people use “cognitive dissonance” to justify their behaviors, even ones as simple as buying new clothes. In essence, we can talk ourselves into anything that we want to pursue.

The Government Accountability Office issued a report in August 2006, that reveals anti-drug campaigns are not working and should end. The campaign actually seems to be increasing drug use. The 2007 budget has requested $170 million to continue the commercials, a $20 million increase over this year’s budget. Why?

Here’s another scenario where the survival of bureaucracy is trying to trump the science of investigation. If independent research says “it’s not working,” then why continue along those same strategies? Why not investigate other ideas that may have an impact? When it comes to drug abuse and how to minimize its spread, there are many credible voices that need to be heard.

The “war on drugs” began in the 1970’s (a familiar theme?) generally has not deterred the use of drugs despite some instances of success. The harder to achieve (with more long-term results) solutions that would have a greater impact are too much “leg-work” for those in bureaucracy. These solutions call for stronger education at all grade levels, better housing and prospects for employment and raising the hopes of those that for generations have struggled. In general, give people a reason not to use drugs or to sell drugs as a way out of their environment.

Solving drug abuse at the social level is not as glamorous as tracking down and capturing drug lords but it is the long-term solution that makes sense. Cut off the demand and you will eliminate the supplier.

Hoopla Around Professional Models

Recently, the annual fashion shows were making their rounds across the globe introducing new styles. Young girls are influenced by these glamorous people. The result is to do whatever is necessary to keep thin. While a certain degree of thinness is healthy, purposely denying your body of nutrients during the “growing years” will result in long-term chronic illness such as heart disease and osteoporosis. Fortunately, this devotion to thinness appears to be short-term infatuation.

Professional models often wear a size 4; the size most often sold in retail is size 14. The average proportion of physical features for size 4 is 32-24-35. For size 14 the attributes are 38-31-42. If young girls can make it through the formative years with minimal bodily damage, it appears they will “catch up” as they get older.

Physical fitness needs to be stressed more as a healthy way of creating thinness not only during the teen years but for life. As with all behavioral issues, quality alternatives need to be introduced in order to replace the negative choice.

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© 2006 3 Minute Learning LLC

BASEBALL AND LEADERSHIP

National Past-time Offers Many Lessons

Baseball doesn’t always get the respect it deserves as a teaching tool. While it is not as popular on TV as compared to football or basketball, the game still has magnetism. Attendance this past season reached an all-time high; fans can still afford to see the game live. Seeing the game in person is the best way to learn.

The first lesson is the slow pace of the game. In today’s “what can you tell me in 30-seconds” world, a slow pace is a welcome change. A slow pace illustrates patience and allows strategies to develop. There are no time limits (just like the real world where problems may take years to solve) and players stay involved from start to finish. There is plenty of time for communications and time-outs are taken regularly to discuss strategy.

The slow pace parallels the work or education world because not every moment is loaded with excitement or doing things. There are lulls but then the action can start to build and intensify. The pace is action then rest; action then rest; score and don’t lose ground; and so on until the game is over (or the task is completed).

The second lesson is the player’s defined roles. Baseball is played as a team but it is a game of individuals. A player can be the best hitter in the league but his team has a losing record. A pitching staff can have big winners and big losers. A team’s record doesn’t always reflect individual performances.

A championship caliber manager doesn’t mange a team, he manages players. Individuals matter in baseball and they contribute to the team’s success. Players know the boundaries and the goals and they have the freedom to determine how to get there.

Players know what their roles are on the team. Some players are interchangeable, playing a variety of positions, but most have single, defined roles. A power hitter will always be in the middle of the batting line-up; weak hitters near the bottom. Starting pitchers train to pace themselves for 6 or 7 innings; relievers can go for 1 or 2 innings. Switch those roles and not much success will ensue.

Leaders need to embrace this attitude of individuals on a team. They need to identify employees’ strengths and have them fill a role that uses those strengths on a regular basis. Some people can do more than one task with success, but most need to specialize. You don’t ask someone to pitch 6 when they are best at 2.

The third lesson is the attitude of success based on failure. The best players fail more often than succeed. A top hitter is successful about 35 percent of the time. A top pitcher wins about half of his starts. The point is that through failure, a player is better prepared to deliver when the game is “on the line.” Many times a hitter will be having a bad day until that last at bat when suddenly he swings and sends a drive deep into the seats to give his team the lead or the win. Baseball players learn from the first time they play the game that failure prepares them for the next opportunity. A hitter doesn’t hit four home runs every game; his goal is to hit a home run when it matters. If you only have one hit, you want it in the bottom of the ninth as a game winner. If you as a pitcher only have one strikeout, you want it on the last batter that wins the game.

Leadership in the workplace is much the same way. People cannot come to work everyday and hit multiple home runs, even though they try. You want them to deliver when it creates a win. You want them to quickly recover from a strikeout and do their best next time. Highly successful people learn from mistakes.

The fourth lesson is that the offense scores even though the ball is controlled by the defense. The pitcher and the catcher attempt to confuse the batter with a variety of pitches. The fielders cut off ground and fly balls to keep runners from getting on base. The offense must overcome these obstacles in order to score runs. Leaders must recognize that control over external events is not always possible; you keep adjusting the strategy to respond to the environment. Your employees continue working at what they do best and they realize that set backs are part of the game. Everyone understands that the game has 27 outs and you have plenty of time to score.

Baseball is enjoyed because of its appearance of simplicity. Talented people make it look effortless and easy. Yet anyone who has tried to play baseball will tell you that it is complex and takes a high level of skill. It appears slow yet decisions are made in milliseconds. Outs are the result of the ball and bat missing the “sweet spot” by millimeters. Defensive plays are the result of superior reaction time and the high degree of coordination between mind and body.

Practice, practice and more practice makes the game look easy when played by professionals. Leaders want their employees to practice, practice and practice so when they are needed, they deliver and it looks easy. Simulation exercises allow people to explore reasons for failure and what needs to be done to be successful next time. Preparation is as much a part of the workplace as work and productivity.

Enjoy a ballgame next year and see how it can apply to your workplace.

Career Development

The three areas of career development considered most important are:

1) learning new skills

2) pay increases, and

3) career paths

The difference in regards to importance relates to age. For example, employees 18 to 26 rank the three areas in terms of importance as 31 percent, 22 percent and 21 percent. People ages 27 to 41 rank the areas as 27, 31 and 33. Finally, people 42 to 61 rank the three areas as 19, 14, and 8.

It is ironic that in the ever changing workplace that so little respect is given to learning new skills. Without question, the acquisition of new skills is linked to pay increases and possibly career paths. Yet, respondents see higher pay and promotions as career development, not learning.

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© 2006 3 Minute Learning LLC

Tomorrow’s Careers

What Career Will You Choose?

The top 10 careers as rated on CNNMoney.com are:

1) Software Engineer

2) College Professor

3) Financial Advisor

4) Human Resource Manager

5) Physician’s Assistant

6) Market Research Analyst

7) Computer/Information Technology Analyst

8) Real Estate Appraiser

9) Pharmacist

10) Psychologist

Given the emphasis on career re-training following plant closings or downsizing, what career from the list above do you suppose a person who lost their job in manufacturing could achieve? With few exceptions, none of the above careers can be achieved without going to college for at least 4 years and an investment of more than $40K.

This is the growing issue in the US with respect to jobs. Even if displaced workers were motivated and capable of attending college to study for one of the above careers, where would the money come from to pay the bills while they are at school? How do you raise a family without working?

And, what about if you are a junior or senior in high school and see one of these careers as something worth pursuing? Who guides you to understanding what it will take to be successful as a student in those fields? Are there appropriate resources and courses at the high school to prepare you for gaining acceptance into colleges that offer these programs? Will

What other choices might there be if you don’t have the interest in one of the above fields or you need to work to support your family? The top three jobs readily available that require little training are:

1) Retail Sales

2) Food Preparation

3) Customer Service Representative

As many under-employed people now realize, for the past 10 years the US has moved from a producer to a consumer society. Jobs (over 90 percent) are now in the service industry as compared to 25 years ago when over 80 percent of the jobs were in manufacturing. It is no longer possible for a high school graduate, or even a dropout, to get a high paying job that will see them though a lifetime. Most service industry related jobs will pay around $18K per year and have minimal, if any benefits.

On a related note, the world’s largest employer is Wal-Mart with 1.8 million employees (ranked second in total revenue). Other world employer leaders include the US Postal Service (4^th) with 803,000 employees (61^st in revenue) and McDonald’s at 447,000 employees (ranked 318^th in revenue).

Terms In The News

1) Jihad: defined as the utmost struggle (sometimes used to mean a religious war)

2) fatwa: a legal pronouncement that can include a declaration of war

An Insightful Quote

The Stone Age didn’t end because the world ran out of stones.

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© 2006 3 Minute Learning LLC

SEPTEMBER TIDBITS

Older Men and Employment

Maybe “55 is the new 40” when it comes to social engagements but in the work world, over 55 is a tough place to reside. Older men are facing discrimination in executive and administrative employment.

Nearly 80 percent of respondents say age is now a factor in finding higher wage employment. Before age 45, only 7 percent believe age is a factor. By age 55, 34 percent say age is a factor and from 45 to 60, 79 percent say age is a factor. (Source: USA Today)

It seems ironic that at a time when men (and women) would have the most value to their companies in terms of experience, knowledge and skills that they are being terminated. The same companies that say they are looking for people who can think critically are eliminating a critical asset in their workplace. The essential components of critical thinking, experience, knowledge and skills are thrown out with the older worker.

The percentage of men employed after age 54 has been dropping steadily and the main culprit appears to be the cost of health insurance. The difference in healthcare premiums between age 54 and 55 will cost a company an additional 50 percent or more in higher premiums. The higher costs have little to do with the actual health of the older person. The fees are based on statistical models that predict the likelihood of a serious illnesses occurring in various age groups.

Essentially, it is cheaper to hire people under 50; a company could have a work force twice as large given the savings in healthcare premiums. Other benefits, such as retirement and sick time, figure in as well making the older worker more of a liability than a value.

Without a universal approach to healthcare, it is unlikely that men will see a reversal of fortunes. Then again, given the war-like attitudes of the neo-cons, enough younger people may die over the 10 years to make it necessary to hire the over 50.

Variable Rates Starting to Take a Toll

Pity the fool was a popular quote from Mr. T on a TV show called the A-Team. This attitude may unfortunately now apply to those families that thought they could afford “starter castles” or homes that are outrageously large and expensive. Of course, the foolish part was buying these homes with exotic mortgages and variable rates that kept monthly obligations at a minimum. Until now.

Now, those rates are expiring or ballooning and monthly obligations are now forcing people into delinquency or worse, foreclosures. Pennsylvania currently has a 15.6 percent delinquency rate (defined as ARM loans 30 or more days past due). The national average is 12.2 percent. Sadly, these numbers are going up and have not yet peaked.

The states with rates under 10 percent include Arizona, California, Hawaii, Nevada, Utah, Washington and Oregon. States with rates over 20 percent include West Virginia, Mississippi and Louisiana.

If you are in a position to sell, get out before you are overwhelmed. The secondary (pre-owned) housing market has many attractive options that are affordable.

As always, buyers beware! If the deal looks too good to be true, it probably is.

First Amendment

Here is the actual First Amendment to the US Constitution:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

That is a lot to say in such a short paragraph and easy to understand why it is so misunderstood. In one sweeping statement, the idea of religion, free speech, public assembly and having access to government is offered. The First Amendment would have had less misinterpretation if each thought would have been treated separately, but not nearly as much fun. Where would TV writers get ideas for their legal shows?

Looking at one component, the idea of free speech, people need to remember that there are limitations. For example, you do not have free speech at work or in school. Say negative things about your boss and you will probably lose your job. In schools, there is constant vigilance over what is written in school papers or even on the Internet.

Is it fair? Probably not, but it is understood that when you accept a paycheck or taxpayers are paying for public education, that there are boundaries and the need to respect culture. The idea of free speech allows us to have dialog with our friends without the worry of legal repercussions. Free speech is not a license to unfairly criticize or disrupt work or school; just freedom to have conversations.

The best lesson is to learn how to negotiate or to politic for changes. Free speech is not always welcome and may undermine any beneficial changes.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

PEOPLE WANT SOLUTIONS

Recently I was watching a talk show and one of the panelist stated that people are tired of hearing about problems; they want to hear about solutions. I’m sure they were referring to the mountains of political dialog that seems to center around the problems in the US and around the world. Certainly, solutions would be an outstanding contribution to moving our society forward.

Solutions take work and commitment. The “Founding Fathers” spent 4 months in the sweltering heat of a Philadelphia summer to create the Constitution of the United States (and then they were admonished for not creating a “Bill of Rights”). Not only was this effort completed under the stress of heat and debate but also without the interference of the press, lobbyists or the representatives’ families. Only weekends were reserved for families and some recreation; Monday morning everyone was back to work and so it went for 4 months.

The current US Congress will attempt to address a litany of issues while working less than 4 months for the entire year! Imagine if these legislators only worked on one social issue such as healthcare for 4 months. There’s a good chance a solution may be developed. But, when healthcare is one small part of a busy day of scheduled events, it is not likely to get the focus it deserves. It is no wonder that only problems are discussed during campaigning rhetoric.

Side note: For Congress to fix any problem, they will need to deal with a lobbying group. The number of registered lobbyists in Washington doubled from 2000 to 2005. In 2000, there were 16,342 registered lobbyists; by 2005, the number was 32,890. Bring up a topic and two sides are likely to appear.

America has become a society of sound bites and half-hour solutions. Television has created the impression that people can either make snap decisions to solve problems or they are too dumb to figure it out. (A Recent statistic in Time magazine stated that the average American watches 8.2 hours of TV every day!) As a result, people grow bored with problem-solving that may take weeks, months or even years. The prevailing attitude is to throw enough money at the problem and either it gets fixed or it goes away.

People are not widgets. Attitudes, behaviors and change take time, hard work and a developed level of trust. Unlike technology, people are not replaced by using new parts. Most key people are powerful and influential and not likely to surrender their views without proof that a new solution has value.

To create a solution with value takes more resources than currently exists in most venues. The time to dissect a problem to manageable components, create a solution at each level and then stitch the solutions back together for an “ultimate” approach is not possible. There are insufficient human and capital resources to fund such an effort. It will take too long and people will lose interest; waning interest also means waning financing.

As dreadful as this may appear, finding solutions is not a lost art. Most of what we appreciate today in terms of better health, better living and more of everything is a result of decades of solution hunting. By discussing problems in a rational and open way, people start thinking about positive outcomes. Progress has been made.

Hence, our problems, or finding solutions, are two-fold. First, results are not always immediate and people need to exercise patience. (It was once said that patience is the control of passion.) Rarely will we experience a quick and satisfying solution. Action is necessary to provide a direction. Once a direction is forged, it is always necessary to tweak the course to gain the best results.

Second, we need better dialog not just rhetoric. Like most people I am tired of every issue being turned into a new catch phrase like “smear and fear.” Let it go; start discussing issues without a self-serving agenda. “What’s in it for me” is a customer catch phrase not a phrase for decision-makers.

America and most of the world has the resources to take care of its entire people. The problems no one can overcome are greed and laziness.

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© 2006 3 Minute Learning LLC

HIGHER EDUCATION?

College Graduation Rates Lag Behind World

According to the National Center for Public Policy and Higher Education, even though 35 percent of high school students go on to college, only 17 percent complete requirements for a degree. The US ranks 16^th among the 27 countries studied (members of Organization of Economic Cooperation and Development) despite being 5^th in college participation rates. Side note: The likelihood of a 9^th grader going to college has decreased to less than 40 percent.

For comparison, Australia has 31 percent participation and 23 percent completion; Germany is 23%/13%; and Korea is 48%/18%. (source: USA Today, 9/7/06)

College has become an expensive way to keep the unemployment numbers down. Parents pay for several more years of education even though their child may not have a focus or desire to participate in higher education. But, since there are no jobs offering a fair wage with just a high school diploma, kids go off to college to “kill a couple of years” having fun and pretending to be engaged. Hence, the high participation rate with no degree payoff.

Higher education needs to reconsider its mission: is it a business or an opportunity to pursue scholarly activity with experts in their respective fields? Is it really necessary to send twice as many students into the halls of education for a result of 50 percent (or less) graduates? Why not toughen the standards and only admit those with the skills and desire to compete?

There was a time not too long ago when a doctorate was something very special and “rare”; a master’s degree was a significant achievement and a lot of work; and a bachelor’s degree meant a high paying professional job. Now with degree inflation, only a terminal degree offers the highest wages; somewhere in the future, a college will begin to offer the “super-PhD” that will create a new “arms race” in education. There’s no doubt that there will be a demand.

There was a time in our history when a “B” student graduating from a US college was considered highly educated by world standards. The higher education system has so cheapened itself that “B” should be considered “failing” by the new world standard.

The US does have highly talented and smart students. It is a disservice to them that higher education caters to everyone simply for the money.

Prison: The New Welfare

Much has been written lately about welfare reform removing millions from federal and state support. Here’s where they are going: prison. In 2005, the number of sentenced inmates per 100,000 US residents was 488. That number represents the 5^th consecutive year of increases. In 2001, the number was 470 and in 2003, it was 482.

You don’t have to hurt anyone to go to jail, just do something stupid to get sentenced to a few years. While you are there, you can enjoy more benefits than you’ll get as a free person. For example, you’ll have a bed with clean sheets and be warm in the winter. You’ll get regular meals; have access to a workout facility; behavioral counseling; and possibly, college credits. As a working poor person, you get none of these benefits (unfortunately, you probably make too much money to qualify for whatever social programs are left that may assist you).

Going to jail is an extreme solution to being poor with no alternatives. But, considering quality food and the new skill you’ll learn, maybe it is worth considering. (BTW: the facts are real the suggestions are satirical.)

Odds and Ends

According to the US Census, there are 78.2 million baby boomers (born between 1946 and 1964). In 2006, the oldest are turning 60. It looks like the AARP’s membership should be growing by significant numbers and having an impact throughout society, especially government. The US is in for an overhaul of thinking as these new “oldsters” will be much different than their predecessors. Remember, this is the group that coined the phrase “50 is the new 40.”

Finally, regarding minimum wage, here’s a thought: instead of raising the hourly wage to $7.25, why not keep it at $5.15 and waive all taxes and entitlement deductions? The real take-home at $7.25 won’t be $14,790; it will be minus Medicare, Social Security, state and local taxes, entitlement deductions such as unemployment, healthcare deductions and anything else that states want to dream up such as higher occupational privilege taxes. Isn’t that the ultimate slap in the face for poor people? Paying taxes for the privilege of working!

Unfortunately, the higher wages will result in lost jobs and the new wages won’t create any less dependency.

Higher minimum wage is not about eliminating poverty; it’s about more government revenue. If tax cuts for the rich are strengthening the economy, image what tax elimination for the poor will do to stimulate spending!

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© 2006 3 Minute Learning LLC

COLLEGE TUITION, NCLB AND BS IN ACTION

Public Supported Colleges Are Costly

Penn State University continues to be the most expensive public university in the US (USA Today, 08/31/06). Residents saw a 5.7 percent increase to $12,164 per year; that’s a 45 percent increase since 2002. Out-of-state students now pay $22,712 per year, representing a 29 percent increase since 2002.

Are you looking for a bargain among the listed 75 universities? Go to the University of Florida, Gainesville where in-state students pay $3206 and non-residents pay $17,790.

The US college in-state median is $5838, a 6.4 percent increase since last year and a 38 percent increase since 2002. Non-residents median is $16,245, a 33 percent increase since 2002. Financial aid increased nationally by 17 percent since 2002 or about $1000 more last year than 2002. In essence, the ability for most students to pay for college, even as state residents, is eroding.

An interesting side note: the University of Texas recently reported earning $8.2 million in licensing rights following its national football championship. An in-state student pays $7800 per year, a 9.6 percent increase since last year and a 54.8 percent increase since 2002. Out-of-state students will pay $16,920 per year, a 51.8 percent increase since 2002. Considering how much the athletic department is earning plus tuition increases coupled with one of the worst graduation rates among the top NCAA schools, what are the people in Texas paying for? An excellent semi-pro football team!

NCLB

Education Secretary Margaret Spellings said on August 30, 2006, that the No Child Left Behind Act is close to perfect and needs little change. “I talk about No Child Left Behind like Ivory Soap: It’s 99.9% pure or something,” Spellings said. “There’s not much needed in the way of change.” (USA Today, 08/30/06)

It’s easy to imagine the responses of either cheering or jeering from each respective side of the debate!

BS in Action

Verizon and Bell South were going to impose a new surcharge fees on DSL Internet lines. Bell South initially petitioned the FCC that the fee was necessary to offset regulatory costs associated with DSL. There’s one problem with that argument: DSL is an unregulated service. Ooops!

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© 2006 3 Minute Learning LLC

WORK, WORK, WORK!

Internet Monitoring Growing in Businesses

If you work in a company with more than 500 employees, the chances are very good that your email and web surfing is being monitored. Over 70 percent of large companies now routinely monitor web-related activities. Even companies with as few as 50 employees report monitoring activity (almost half the companies surveyed).

One reason why monitoring is so prevalent is because of fantasy football leagues. Companies estimate that over $1 billion per week in lost productivity occurs during the 17 weeks of the NFL season. That is a lot of distraction.

Also, companies still struggle with malicious programs such as adware and spyware that accompanies shopping while at work. Finally, email “chain letters” such as cartoons, jokes and videos still permeate the workplace and allow viruses and other nasty events to occur.

This kind of inappropriate activity does make you wonder about the American work ethic, personal accountability and integrity. While work should never be drudgery, all employees should respect and show loyalty to the workplace. If you can’t do that, then allow one of the 20 million or so under-employed people do your job.

Work and Undergraduates

Over 34 percent of college students work more than 35 hours per week according to the American Council on Education and the US Department of Education. Only 22 percent do not work at all. Basically, 8 out of 10 college students are working part-time jobs in and around campus.

College is a full-time job and very few people can work and be successful as a student. When do students study if they are working 35 hours? At minimum wages, how does working help offset the bills generated by college? Most studies that look at students and work suggest limiting work to 15 hours or less. That amount of time at work will provide some “pocket money” to buy food and supplies.

It would be great to know how closely related are work hours and academic success. Certainly a little bit of work is productive; 35 hours just seems like too much.

Tidbits

The University of Texas, the NCAA Division I football champions earned $8.2 million in trademark licensing. Big time college athletics is major league business. Can you imagine the pressure on university presidents to ignore rule bending or academic violations when so much money is involved?

The amount of grain needed to produce enough ethanol to fill one SUV’s 25-gallon tank once would feed a person for one year. Anyone who refuses to believe that conservation of fuel is the right answer has not done their research. Conservation will extend fuel reserves for generations and at the same time address the issue of global warming. If all non-commercial vehicles were 4-cyclinder engines, the gasoline consumption would go down dramatically. It’s not un-American to conserve; it’s un-American to waste.

Finally, over the past 2 years there have been over 3 million bankruptcy filings. The new rules that began last October regarding bankruptcy filings have made it harder and costlier for people to have debt forgiven. The rules have had some impact, lowering filings from 1.6 million in 2004-05 to 1.5 million in 2005-06. It remains to be seen if the new rules are actually working or the lower number is an aberration.

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© 2006 3 Minute Learning LLC