Tuesday, January 27, 2009

Skin in the Game

Written by Pat Perry
President, ERC
 

Each year, one of the major networks televises a “Skins Game” among four of the top names in professional golf.  For those not familiar with the “Skins Game”, it is a pretty simple format – four golfers “compete” on each golf hole for the best score…with winner taking all.  If there is a tie, the money carries over to the next hole and the next until someone wins the hole.  I have always found it amusing that we are to believe that these four very wealthy golf professionals are actually competing since they are playing to win someone else’s money with none of their own money on the line.  In an amateur skins game, golfers put up their own money – making for some real competition and intensity.

The current “stimulus package” discussions remind me of the pretend “skins game” on television.  The government has none of their own money in this…just ours.  Interesting how the package as currently proposed has all sorts of “pork” in the bill like including replacing the grass at the Washington Mall.

I would advocate a totally different stimulus package and I think one that most Americans would support.  As part of my package I would put a freeze for every American on paying Federal income tax in 2009.  That’s right…no taxes…no April 15th…ludicrous?  Maybe not.

It would be interesting to see our government run with less revenue coming in…just like so many businesses who have been hit hard by this recession…forced to make tough choices about their business and their employees.  I wonder if the Washington Mall grass would be replaced under such a scenario.

The freeze on taxes would not affect inflation like the printing of $825 billion dollars, it does not create debt that our children will have to deal with in the long term and it might actually help the average American.

Americans were pumped a week ago with the changing of the administration…what we really want is politics (as usual) to go away, real reform to occur and legislators to stop with the spin and start getting real.

It’s time the folks in politics put their business on the line…just like the rest of us.  Otherwise, it’s just a game to them without the skin.

Posted by ERC at 22:34:31 | Permalink | Comments (1) »

Tuesday, October 7, 2008

Politically Incorrect

Written by Pat Perry
President, ERC
 

In a few weeks we will be heading to the polls to vote on candidates and local, state and federal issues.  Given the fact that the presidential campaigns started a few years ago, November 4th can’t arrive soon enough.

 

The whole election process is pretty amazing and at the same time so different than how most businesses search for top performers to hire.  If in fact our forefathers intended top performers to be elected into government leadership positions, the process in place may not be achieving their objective.

 

From an HR vantage point let’s try to put the election process into perspective.

 

What a country! – Can you imagine publicly seeking a new position while employed in your current job?  And, not only are you seeking a new opportunity but you plan on spending nearly 100% of your time “campaigning” for the new job expecting 100% of your pay from your current employer!  In contrast to how elected officials move up the government ranks, companies in the private sector actually expect their executives to work at their current job and be remunerated accordingly. 

 

No experience necessary – If you take the Presidential election as an example, none of the candidates have any experience as the President or Vice President of the
United States. Unfortunately, we elect candidates on a variety of characteristics including their personality, image, oratory skills and party affiliation to name a few. Contrast that to an executive search in business - these searches entail significant effort locating top performers with real experience utilizing exacting requirements for specific qualifications.  Viable candidates must meet or exceed key criteria for open executive positions to be considered for the selection process.  Incidentally, an executive search for the U.S. President’s position would cost approximately $132,000 (33% of the President’s expected first year compensation).  I wonder what year it was when the Presidential election only cost $132,000.

 

Who are we to judge? – We (Americans) have been entrusted to make good and informed decisions when casting votes on Election Day.  Ironically, very few of us have any real knowledge of the day to day requirements and responsibilities for elected offices, especially the U.S. President.  We vote and hope for the best – this is a pretty scary scenario considering the stakes. In contrast, companies in the private sector put the odds in their favor of hiring a top performer by utilizing a streamlined and professional hiring process, with full knowledge of job responsibilities and performance expectations.  

 

You can’t ask that! – One of the hiring cornerstones of American business is compliance with Title VII of the Civil Rights Act of 1964 which prohibits an employer from discriminating in the workplace on the basis of race, color, religion, sex, or national origin.  Ironically, it seems that candidates for public office are judged and elected (or not elected) based upon these characteristics with little regard to the candidates’ actual qualifications.  If American businesses approached recruiting this way there would surely be state and federal punitive consequences for violating Title VII and unfairly discriminating against certain candidates.  And, beyond the importance of non-discriminatory hiring practices it would be just plain dumb to hire someone for any reason other than their qualifications to do the job.

 

You did what? Thanks to the media, candidates for public office and their families are subject to incredibly invasive background checks. The media does make it personal as do competing party members.  Fortunately, in the private sector, we do utilize civilized and appropriate approaches for background investigations.  These background checks are typically conducted by professional firms that seek job related information.  The information is kept confidential and is not utilized as a weapon of humiliation for employment candidates and their extended families.    

 

What makes them tick? Perhaps I missed it, but during my adult life I have never heard of a U.S. Presidential candidate being subject to a psychological assessment.  It would be nice to know the state of mind of the “most powerful person” in the world.  In stark contrast, most organizations in the private sector, routinely engage trained management psychologists to assess final candidates against previously established success profiles for open positions.

 

There are plenty of other comparisons one could make between the government elections and private sector executive selection.  The private sector approach to hiring may not always be perfect, but for the most part U.S. companies utilize a non-discriminatory blend of science and sensitivity to seek out and select top talent. And, much of the time it works pretty darn well.

 

Perhaps one day, our elected officials may open their eyes a bit and see that the laws of the land combined with private sector business savvy typically yields the high end results we so often hope from our government.  It would be a pipe dream to imagine the current election process for the highest government positions in our land to ever be reformed.  There is just too much money, power and control at stake.  To change the process though, would be one campaign worth supporting.

Posted by ERC at 19:09:56 | Permalink | Comments (1) »

Tuesday, September 30, 2008

The Deficit is Growing

Written by Pat Perry
President, ERC
 

This has certainly been an interesting year.  The Presidential campaign, gasoline prices, Black Monday, Russian invasions and the continuance of the wars in the middle east to name a few.  It would be no wonder if the average American is a little dazed and confused.  Wow…2008 is not the year I thought it might be…it had so much promise.

I was watching CNN the other evening and they were illustrating on a chart, the expansion of the
U.S. deficit with the so-called “bailout” to exceed $16 trillion.  The American public should be screaming.  The mess that has occurred over so many years is going to take a very long time to correct, even if the right measures are put into place. 

The deficit and the financial mess we are in are byproducts of a bigger problem in this country that has no signs of slowing down.  We are saddled with a leadership deficit, the likes of which may be the biggest in our nation’s history.   I think my generation blew it.  We had our chance.

I am hopeful that the upcoming generations look at the childish and gutless behaviors of our elected officials and corrupt CEOs and recognize that reform is a must.  It is not an option.  It’s going to take guts and determination.  But they will have their chance and here is one Boomer that is praying that my kids’ generation don’t follow our horrible lead. 

Shame on us.

Posted by ERC at 19:50:43 | Permalink | No Comments »