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Mar 30 2009

Three Quotations to Consider and Discuss

By Dean Zatkowsky

1. "The business of America is business," said President Calvin Coolidge, justifying his administration's laissez faire policies. Then he handed the White House keys to Herbert Hoover in 1929 and slipped out of sight as the economy collapsed. And yet, one still hears Coolidge's words repeated as gospel. Do you believe that business is the business of America?

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Categories: Entrepreneurialism | Economics | Ethics | Investing | Optimism

7 comments - Posted by Dean Zatkowsky at 9:39 AM

Mar 23 2009

What Would David Packard Do?

By Dean Zatkowsky

Many businesses are going through the exercise of cutting costs to compensate for declining revenues. Some have chosen a path pioneered by David Packard.

In 1970, when the economy stumbled and Hewlett-Packard faced layoffs, Packard proposed - and the company embraced - a novel alternative. Rather than layoff 10% of the workforce, the entire company took a 10% work schedule cut, working just nine days every two weeks. As Packard explained in The HP Way, "The net result of this program was that effectively all shared the burden of the recession, good people were not released into a very tough job market, and we had our highly qualified workforce in place when business improved." Packard hastened to point out that this solution only applied to what was clearly a temporary situation; the company could not guarantee full employment under all scenarios.

0 comments - Posted by Dean Zatkowsky at 3:38 PM

Mar 9 2009

When Profit Sharing Goes Wrong

bby Dean Zatkowsky, co-author of Two Billion Dollars in Nickels

Managing the behavioral impact of a profit sharing plan is more challenging than designing the financial incentive in the first place. Among inexperienced business people, profit sharing leads to the unintended consequence of excessive scrimping. Frugality fuels profitability, but not when we trip over dollars to pick up pennies. Anyone offering profit sharing to coworkers must ensure they understand the big difference between cutting costs and cutting corners: The former improves profits; the latter eventually destroys them.

1 comments - Posted by Dean Zatkowsky at 2:36 PM

Feb 24 2009

Take Ownership

by Dean Zatkowsky, co-author of Two Billion Dollars in Nickels

Recently I addressed a Rotary Club luncheon, and began my presentation by inviting Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner to join me at the podium.

After a few seconds of silence, I said, "Oh, they're not here yet? Well, maybe we shouldn't wait for those guys. Maybe we should figure out how to save the economy by running our businesses better..."

14 comments - Posted by Dean Zatkowsky at 10:15 AM

Feb 23 2009

Ambassadors of Capitalism

By Dean Zatkowsky, co-author of Two Billion Dollars in Nickels

Many people see our current economic crisis as an indictment of capitalism itself, but I think this is just as misguided as the idea that "government is the problem, not the solution." That we have incompetently managed our government and our economy proves only that we have been careless and irresponsible in our stewardship of two great and noble ideas. Capitalism and democracy remain worthy goals, and we must aspire to be worthy of them.

I've heard conservative pundits accuse academia of turning young people against capitalism, but I don't believe it. As an old marketing guy, I'm convinced that brands are formed by experience, not sloganeering. I agree that many young people are turned against capitalism, but not by their professors. Young people are turned against capitalism by their first experiences in the workplace.

0 comments - Posted by Dean Zatkowsky at 9:44 AM

Feb 19 2009

NEW BOOK!

I'm pleased to announce that I've just released a little book of essays on ownership, judgment and self-knowledge. It's called Two Billion Dollars in Nickels: Reflections on the Entrepreneurial Life. We'll get more information on the website soon, but the book is available on Amazon now and my co-author wants everyone to know that for each copy sold, his son gets one more minute at the University of Oregon. Thanks, PO

2 comments - Posted by Paul Orfalea at 9:13 AM

Feb 4 2009

Fear Itself

Today, we see what Franklin Delano Roosevelt was talking about when he said, "The only thing we have to fear is fear itself."

Unemployment headlines are so big; you'd think ink companies are the only ones making any money. Politicians warn of dire consequences if their policies are not adopted immediately. Corporate CEOs meet at luxurious resorts to compare tales of economic woe. According to columnist Daniel Gross, who covered the World Economic Forum at Davos, Switzerland, "The overwhelming consensus was things are really bad and getting worse."

I disrespectfully disagree with that consensus. CEOs, press, and government officials benefit from harping on economic horrors. It sells papers, pushes bills through congress, and provides cover for past management mistakes. The rest of us benefit from taking care of business, and that should be our focus.

1 comments - Posted by Paul Orfalea at 10:04 AM

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