Water Cooler Conversations

Written by Pat Perry
President, ERC 

Well, we all got what we were not wishing for – a down economy, layoffs, and a deep recession.  We can all give ourselves a collective “pat on the back” for once again repeating history right on schedule.  It is ironic that the fear of job, business and financial losses caused many reactionary decisions over the past year that resulted in job, business and financial losses.

A quote attributed to a local business person from last week’s newspaper summed it all up perfectly - “We do not plan on making any new investments until the economy gets better”. 

Hello…?

That is exactly the thinking that helps keep this mess going. When are we going to learn?

So many people are holding on to their money and making cautious decisions, waiting for someone else to get the economy rolling.  Seems like an awful lot of people ran for the hills this past year and they are nowhere to be found today. 

The fear-based behaviors exhibited over the past year remind me of some adults taking a dip at the local pool.  They wade cautiously until they become accustomed to the pool temperature.  They do this knowing full well that they would incur less “pain” by just jumping in – yet we go against our better judgment, and take a too long of a time to enjoy a good swim.

You see where fear got our economy – clearly in the dumpers.  Fear based decisions are not a good tactic and never have been in the history of our country.  Perhaps it is time to try a truly
America strategy – creative, innovative and courage based decisions regardless of economic conditions.

Many “experts” believe we have hit bottom and will recover slowly over the next several years.  They are probably right given human nature. 

We love prosperity but seem to be afraid of doing the things necessary to get and stay there.   Go figure.

As the debate begins about health care reform, the center of the discussion appears to be access, reimbursement programs and malpractice premiums.  Noticeably absent is a discussion of a critical component of health care costs – more efficient utilization of healthcare by the consumer.  Excessive or inefficient utilization often occurs either because consumers are not accessing their coverage correctly and/or not managing their own health and well-being.  Healthy lifestyle behaviors and health education do not guarantee perfect health and efficient utilization of health care – but they improve the odds of better outcomes substantially.  Our own program, ERC Health is a ten (10) year testament that it works.

If you are going to have a discussion of health care reform Mr. President, you should probably include health reform in the package.  If as a nation we are truly serious about managing health care costs, then we need to also look at affecting risk factors that influence the health and well being of the consumer.  And, you will need to provide them the tools and dollars necessary to help manage their health and improve their health care IQ. Along with accessibility reform, we must ensure that people utilizing the system, use it well.  Otherwise you will end up with a bigger mess on your hands than you have today.

Providing yet another option to obtain healthcare is a great idea if it is coupled with a true strategy of becoming a healthier, more educated nation. The consumer must become a critical part of the solution.  If not we will be left with just another government entitlement program that will make a bunch of us sick to our stomachs.  This new condition, Government Entitlement Nausea (GEN) has the potential to sweep the country.  The scary part is that no cure for GEN is in sight.

Congratulations to all of you parents out there that just graduated a high school, vocational school or college student.  Great job!  Now, you can stop reading this article and hand it over to your recent grad, because the rest is for him/her.

Congratulations graduate!  Hopefully you just completed a wonderful experience and are getting ready for post high school education or “the real world” of work.  In either case, here are a few pointers about the business world and people.  I wish I had someone tell me some of these things when I graduated from high school and college – I would have avoided a lot of bumps along the way. 

Define Success – Your definition of success will be a critical guiding principle on which you base many decisions.  I have met many people in my thirty-year career who measure their and others’ success by money, title, car, neighborhood and/or power.  If you do, you might find that you end up leading a rather empty life.  As you think about your definition of success, consider the importance of friends, spouse, children, family, ethics and community service in your equation.  The meaning of success may change a bit as you age and perhaps you will find that “climbing the corporate ladder” is a poor second to leading a good life.

Don’t Grow Up – You will find that most successful businesses (the kind you want to work for) reward creativity, innovation and risk taking.  These are attributes we all possess as children.  Unfortunately, in some other organizations, procedures, reward systems and promotions are often based upon employees following the rules, playing corporate politics and being risk adverse.  These types of companies kill the “kid” in people, and then management wonders why their people are not innovate, risk taking entrepreneurial top performers.  Go figure!  Keep being a “kid at heart” as you will be more successful along the way and have a heck of a lot more fun! 

Master Communication – It is critical that you can read, write and publicly present well.  These skill sets are essential in getting along with others, selling your ideas, resolving conflict and contributing to your company.  In addition, your ability to converse one-on-one or with groups will be an essential factor in your career success. If texting has diluted your interpersonal skill sets, you better brush up on how to engage in conversation without the keypad.  One more item – don’t forget to turn off your cell phone in meetings, presentations and your bosses’ office.

Keep Learning – Your graduation simply marks the end of one educational era.  In reality, you are really just beginning the learning process as you have about another forty years to go.   Read all you can, including general literature and career related information.  Ask plenty of questions and don’t be afraid to continually challenge yourself with new ideas, skill sets and technology. 

It’s Called Work – There is no substitute for hard work. You need to show up every day, sometimes early and occasionally work late.  Bottom line is that employers expect you to put in a full day and be incredibly productive.  You slack off, you lose.  Period. 

Flame on! – Probably the most important part of your career is to be doing something that you enjoy.  Living for the weekend is a horrible way to live.  If you are not enjoying coming to work most days, you are probably in the wrong profession and/or wrong company.  If this happens to you during your working career, take action and move on.  Do not stay in a dead end profession or job because you have a mortgage to pay.

Fail – It’s ok to fail once in awhile.  That simply means you are trying something new.  Great organizations recognize this and support employees that at least try to do something different, creative and innovative.  The people they write about in history books had many more “failures” than successes. 

Join the Winners’ Circle – If you plan to work for others, find a great workplace.  Do the research and identify companies that are known for treating their employees well, support career growth, are ethical and have a history of delivering high quality products and/or services.  In addition, surround yourself with other high achievers both at work and outside of work.

Avoid Jerks - There are plenty of great managers out there.  Find them, work for them and learn from them.  Unfortunately there are a few bad apples.  If you find one, get out fast.  They can and will make your life miserable.  Life is too short to put up with their nonsense.

Balancing Act – I wish you a great balance between work, play, friends and family.  Work is not everything; at least I hope it does not become that for you.  If you can figure out a way to manage your life holistically you will find that your time at work is more fun and satisfying. 

Lead – There is a huge leadership void in our country and in business today.  Because of this void, you and your generation have a tremendous opportunity to make a big difference.  Take the lead on ethical business operations, developing and maintaining great workplaces, taking risks and giving back to the community.  

It’s been thirty years since I graduated from college.  It went by in a blink of an eye and it will for you too.  If you believe, know and love what you’re doing, you will find career success rather than just getting a job.  There is a huge difference, you’ll see.

Recently some congressional hearings were being held with executives from AIG. I am not sure if I was watching CSPAN or CNN but the dialogue was incredulous. I find it remarkable that we’re still hearing members of Congress grilling AIG executives on where all the money given to them was spent. All we’re doing is playing the blame game…

I’ve heard interview after interview with “experts” about who’s to blame for the nation’s problems. Here’s a sample of typical responses: “It’s congress’ fault! It’s the banks’ fault! It’s the democrats fault! It’s the republicans fault!”

I would love to Chair or be on a Committee of taxpayers questioning Congress on how they spend OUR money. I find it highly objectionable that they are actually spending time (and more of our tax money) on these proceedings. How about we get to work instead of wasting time pointing the finger at everyone else? Enough talk, we need some action. Start earning your money and quit wasting ours.

Recently, the Perry family put a down payment on a Labrador retriever puppy.  She will be joining our current Lab (Nikki) in about six weeks.  Our hope of course is that they will become good buddies and get along famously.

We visited the Breeder a few weeks back to apply the down payment.  When we arrived we were welcomed by eight adult
Labradors – all pets owned by the breeder.  Each of the Labs reflected a gentle disposition and was delighted to meet us – their new “friends”.  We were essentially “mugged” with love by these wonderfully friendly and docile creatures.

We spoke to the Breeder for almost two hours swapping stories about these terrific animals.  We concluded that if Labradors could talk they would rule the world.  In many ways they are way more human than humans.  We theorized that if the roles were reversed and Labs could talk and we could not, we figured that there would be no wars, we would not be in our current economic condition, there would not be artificial boundaries between countries and states, no murders, no crime, etc.  Think about it.

Sometimes I look at our dog and wonder what she is thinking.  Imagine if they could understand what we were saying, could read and understand what was being watched on television…I have to believe if they could, they would certainly see us as the inferior being.  

Instead of wagging their tales, they would be shaking their heads.

You may have caught the news that Josh Cribbs, the Cleveland Browns punt returner is “unhappy” with his million dollar contract.  His agent J.R. Rickert, according to the Plain Dealer states that “Josh is starting to get a sense there’s no appreciation for him”.  Incidentally along with his current $6 million six year deal he received a $2 million signing bonus – we should all feel so disrespected!

These guys live in a complete fantasy world.  And…I am praying that the Browns don’t put up with it. 

Hey Josh…you signed a contract…live with it dude.  The Browns would have if you had gotten injured or turned out to be a sub-par player.

Josh…if you don’t want to play for a million a year I know a whole bunch of people who would be glad to run back a football every Sunday for your payday.  And…they would not complain, be grateful for a job and add value to the Browns organization.

Get a life Josh…just like the rest of us.  If you only read your press clippings it’s time to look at the other parts of the newspaper to see what is going on – young people dying for their country, a challenging economy, foreclosures, etc.  If we were you Josh, we would be kissing the ground that Randy Lerner walks on – you are leading a charmed life.

If your feelings get hurt because you want more than a million a year to play a game, then consider taking your football and go home.  That’s what poor sports do…they quit when things don’t go their way.

I am sure that you will agree that the CAVS’ season and post season successes on the court have been thrilling.  It has been a wonderful ride and one that I would like to see last for some time.  What a great experience watching this team, which includes the basketball players, front office and coaching staff.  Their organization is where we all should be – players to management all on the same page.  They are all in sync – from a business perspective, this is simply poetry in motion. 

They preach and teach a singular focus on excellence.  They are goal oriented and understand that acquiring and retaining top talent at every organizational level is critical to winning their league’s championship.  Yep, this team is something special and they represent our region well.

Beyond rooting for the CAVS, we can show our support by following their lead.  It’s the same stuff we see over and over again with NorthCoast 99 organizations.  Top talent acquisition and retention rules! 

My hope is that by watching the CAVS, many CEOs in our region will take note of what it takes to be an organizational winner. Perhaps the end of the CAVS season (after their championship) will signal a new “season” for our region’s businesses.  Maybe the CAVS success will light some fires in our collective business bellies.  It will be our turn to RISE UP.  Once the CAVS accomplish their goal, it will be our turn to take it up a notch and nail a few “three pointers” of our own.

Thanks CAVS for a fun season, a great post season and for leading by example. Swoosh!

Written by Pat Perry
President, ERC 

Over the past week and month I have been struggling putting my arms around a few things…

• If the proposed Medical Mart is such an incredible destination and economic development machine, why is our town the only one considering getting into this business?

• Why do we let three
  County Commissioners who have no real business experience make $900 million dollar decisions like the Medical Mart?

• Agreeing with Dan Gilbert…why would we build anything underground (Medical mart proposal) with views of the lake or river waiting to be had?

• Why did the Plain Dealer have to threaten a lawsuit to have the Medical Mart plan made public?

• Doesn’t it sound like the Consulting firm from Chicago have the better end of the deal on the Medical Mart proposal?  I have this sense that they are laughing their heads off at us in Chicago.

• Will the City of Cleveland ever paint its rusted bridges, clean up the garbage downtown (which rolls around like tumbleweeds) and bring down the old Howard Johnson’s hotel and Aviation High School?

• Does the Hopkins Airport Director ever travel to other airports and see how efficiently they are operated and how clean they are kept?

• Why is there still paid parking downtown Cleveland?

• Why can’t we place a few palm trees around our town during the warm months?

• Why not give land away for free in the City of Cleveland to any business that is willing to bring in at least 100 jobs into the city?

• Why don’t our newspapers understand that the more they scare people with their shock headlines, the more they reinforce the negative, the greater the likelihood of reinforcing negative behaviors like not buying newspaper advertising?

• When will we realize that we are the economy?  When people quit being scared things will get better.

Perhaps I am just plain dumb.  I try to stay informed, read quite a bit and meet with lots of people.  Seems like they have plenty of the same questions.  Just wish I could run into a few people who could provide the answers.

Written by Pat Perry
President, ERC 

It has been very interesting watching
America’s workplaces react to the recession.  Some organizations reacted without much thought and started slicing jobs back in October.  Other organizations laid off workers after seeing drops in their business.  There are even profitable organizations cutting jobs using the economy as an excuse to “clean house.” 

The cost cutting measure we hear most about from the media is layoffs, because it’s the kind of news the media loves to share.  What the media misses are the other approaches good organizations are taking to reduce costs and improve productivity in good and bad times.  That’s what makes them good organizations.

Reduction of payroll through layoffs is not always the answer to combat a soft economy.  Unfortunately, fear takes hold of too many corporate “leaders” turning them from thoughtful decision makers to reactionaries.  When used as the primary cost cutting tool, layoffs may look good on paper in the short run, but can seriously affect an organizations’ long term business health. 

Challenging times requires new and creative thinking about managing a business and the workplace.   In good times, we hear CEOs echo across the land that “our people are our most important asset.”   Yet, in some organizations that “great asset” has been treated like a number over the past six to eight months.

We all recognize that there will be an economic upturn.  When it occurs, the organizations that take the right steps during these challenging times will come out of the gate way ahead of the competition.  It starts with a balanced strategy on combining cost reduction with talent attraction and retention.  Here are some key elements to consider in developing the strategy:

Compensation – Cutting costs through salary reductions should begin at the top, including paid Board members.  Salary reductions can be very effective in the short term to cut costs and preserve jobs. Nobody likes their pay cut.  But if it means retaining some good employees, it is well worth it in the long run.  Plus, in better economic conditions, those who took the cuts can be rewarded for their short term sacrifices.

Health Insurance – Aside from payroll, this is one of the biggest ticket items for an organization. 

Begin by developing a strategy.  This strategy would include your plan having access to all major hospital systems, integration with health/wellness initiatives and a plan design focused on optimal employee utilization of the program.  Real cost savings come from good plan experience rather than short term price reductions.  Unfortunately, too many brokers “shop” insurance carriers for the lowest price without regard to any benefits strategy.   That is why it is a good idea to ensure you have the right broker.  There are multiple ways outside of price alone to reduce costs with your health insurance these days.  The right broker and carrier will assist you with making this happen this year and years to come.

Employee Benefits - In addition to health insurance, there are a number of opportunities to manage costs while maintaining an excellent, meaningful array of benefits for your employees.  Again, it is critical to have a strategy based upon your employee demographics, interest in attracting and retaining top people and of course budget.  Also, make sure you understand what benefits are most important to your employees.  Ensure that your organization takes advantage of cost saving, flexible spending accounts and voluntary benefits – both designed to enhance individual benefits and add to an employer’s offerings. Depending upon your plans there may be opportunities to reduce expenses without significantly hurting the programs in place.  For instance, one consideration may be to reduce the employer match on the 401(k) plan in the short run.  Employees will still appreciate the pre-tax deferral of a portion of their income and recognize that given economic conditions, a temporary reduction in the employer match may be appropriate, especially if it means saving some jobs.

Bye-Buy – There is no doubt that this is a “buyer’s market” for great talent.  There is a tremendous amount of talent available and smart organizations are hiring these individuals.  Yes…hiring!  These organizations are stocking up on their “A” team now to help them through a tough economy and to take advantage of future market opportunities. On the other hand, this is a very good time to ensure that you are managing the performance of individuals who are not performing to expectation.  Working within the framework of your organization’s performance management system, replace non-performers with the top performers available in the market.

Shop Smart - Your organization probably outsources some HR related services such as payroll, background investigations, temporary staffing, etc.  Sit down with your current vendors to discuss ways to adjust the scope of the services you receive in order to control costs.  For large-scale purchases from one vendor ask about volume pricing.  Chances are there are some cost savings available – you just need to ask.

We are certainly in challenging times, and yet 2009 is abundant with new and exciting opportunities.  Unfortunately, fear has weakened our corporate knees.  It’s time to stand upright, make sound, fearless decisions and maximize what 2009 presents.