Monday, November 13, 2006

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.

Visit www.3MinuteLearning.com

GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

Tuesday, October 31, 2006

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.

Visit www.3MinuteLearning.com

GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

Monday, October 30, 2006

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.

Visit www.3MinuteLearning.com

GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

Monday, October 23, 2006

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

Monday, October 16, 2006

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