Category Archives: Management

Doing Well / Doing Good

heal

http://money.cnn.com/2013/04/25/news/economy/cancer-drug-cost/

The link above goes to a disturbing article about a drug company that has tripled the price of an anti-cancer drug because people literally can’t live without it.

There’s a huge difference between doing well and doing good. Novartis, the drug company is apparently doing well.

On the other hand, we have the example of Jesus curing everything up to – and including – death. The most He asked for was some hospitality.

I doubt that when we meet our maker, He’ll be impressed by our ROI (Return On Investment) or EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization).

I suspect He will judge us on WYDTLMB (Whatsoever You Do To the Least of My Brothers.)

Uncle Jerry

Toledo Blade

Toledo Blade

When I was attending Central Catholic High School in Toledo, I learned to play clarinet and then went on to tenor saxophone and bassoon. I was not a very talented musician, but it gave me the opportunity to learn more about music and be exposed to a wide range of music types.

My clarinet teacher, Gerald V. DePrisco was also the music and band director. Being the late 1960′s, and just being a teenager, I was a bit irreverent. Don’t get me wrong, we’re talking about someone who not only played in band, but participated in the Science Club and all the area science fairs. I attended Mass in the school chapel on a regular basis. I worked at the main library downtown after school, so we’re not talking about a James Dean, “Rebel Without a Cause” Type.

We had one of, if not the best band in the city. We played well, marched complex half time shows, participated in numerous parades and had a great time throughout.

The band met in a separate building that had been where the high school had started. Originally it had housed maybe a dozen classrooms, but the intermediate walls had been removed to provide rehearsal rooms for the band, orchestra and Glee Club. There were also a few offices, one of which was Mr. DePrisco’s. A number of us used to hang around the outer office.

Each day I’d greet the band director with, “Hello, Uncle Jerry!”

He’d respond with, “Don’t call me Uncle Jerry! And get those sideburns trimmed!”

“Right, Uncle Jerry!”

A few years ago, his daughter started contacting alumni of Central Catholic’s band to have a band banquet and Music Hall of Fame. I wasn’t able to attend what became an annual event, but I wrote him a letter. His daughter called and gave me his phone number and I did have a chance to talk with “Uncle Jerry” on the phone. Naturally I bragged to him that although the talent gene skipped me, my children were much better than I.

It was a nice chat.

Yesterday his daughter sent out an e-mail saying that Uncle Jerry had died.

However the love of music that he infused in me has stayed with me and I’ve done my best to pass it on to my family.

Thanks, Uncle Jerry. You will not be forgotten, and yes, you’re in our prayers.

Goodbye Windows XP

xp

In less than a year, Windows XP will no longer be supported by Microsoft. This means no more updates, upgrades or security patches. For software, that’s pretty much the end.

Microsoft’s operating systems are like some families, there are winners, losers, and some family members we don’t even talk about.

Windows was Microsoft’s blatant attempt to have an operating system just like Apple’s. (See, it’s different; Apple has a trash can, Microsoft uses a recycling bin!!)

The first successful version of Windows was version 3.0. Version 1 and 2? Don’t ask.

For most of us, what came next was Windows 95 and 98 which were okay. An improvement here, an improvement there, but not earth shattering.

In 2000, Microsoft released Windows ME which was the first of Microsoft’s marketing efforts to get people to change to Apple computers. Windows ME was notable for its instability and was derided as “Mistake Edition” or “Many Errors.”

Everything up to this point Windows was a Graphical User Interface (GUI – pronounced gooey) bolted on top of the old command driven Disk Operating System (DOS). Basically you used a mouse to point and click and the computer essentially entered the equivalent old DOS command for you. However, a mouse was easier than remembering a couple of hundred commands each of which had to be typed in the exact correct manner. Windows XP eliminated this extra step and proved to be a robust reliable performer.

Totally unsubstantiated rumor has it that Microsoft realized that people would flock to whatever new operating system it released. If true, this would also mean that they wouldn’t have to make good operating systems every time.

If so, that would explain Windows Vista. Vista was universally recognized as a “target rich environment” for improvement. Many businesses elected to stay with or return to Windows XP. Everyone waited for the updates to correct the problems.

Microsoft’s solution was to release Windows 7; this meant you could buy what Windows Vista should have been rather than Microsoft correcting it. That was the bad news. The good news was that Windows 7 worked, was reliable and did most of the things that users wanted.

Then came Windows 8, supposedly for tablets, although it runs clumsily on laptops. Unfortunately, lots of people spell tablet “i-P-a-d” or else have something like a Kindle or Nook that uses its own operating system. Industry sources say that sales of PCs have dropped recently, and they believe the reason is that since the only option is Windows 8, people are holding off.

A winner, XP is being deep sixed. Windows 8, on the other hand…

I only recently took Windows XP off the only computer still running it and installed Windows 7.

At the same time, I updated 2 other computers by removing Windows 8 in favor of Windows 7.

So, to XP, I say, thanks for all the hard work. You’ll be remembered among geeks for a long time.

Pope Brouhaha

Coat of ArmsPope Benedict XVI

Coat of Arms
Pope Benedict XVI

The news media has carried on in their usual way with regard to the retirement of the Pope. Headlines talked about it being “Shocking” and “Unbelievable.”

Say what?

First, when I’m 85, I hope I’m well experienced at being retired. Serving until death is a leftover from the days when the Monarch was expected to actively participate in combat and dodge assassination attempts. Life expectancy was much shorter.

The Catholic Church is like any large organization. Leaders come and leaders go. They tend to come from the same pool of candidates. I suspect that Fortune 500 CEOs reflect a lot of individuals with Harvard MBAs and who grew up thinking country clubs were a normal part of life.

I drive a Ford. I have no idea as to who is the current president of Ford, or who’s on their board of directors. It doesn’t affect me. To a large degree, the same is true of the Pope.

Large powerful organizations do both good and ill. With a two thousand year history, the Catholic Church has had more opportunities to experience errors, suffer from bad leadership, as well as do some good things. The bad stuff is more interesting to talk about.

Look at Catholics, as opposed to the Catholic Church organization and hierarchy. Like most other Christians we get up each morning, pray to do a good job, do some things right, screw up on others, ask forgiveness, and keep on going. Like other Christians we place our faith in Christ, along with our hope and love.

If the news media reported a month from now that the Catholic hierarchy had been unable to elect a Pope, it would not affect most Catholics. We’d still attend Mass Sunday mornings and try to live our faith on a daily basis.

The Best Laid Plans

The best laid schemes o’ Mice an’ Men,
Gang aft agley,
An’ lea’e us nought but grief an’ pain,
For promis’d joy!
– Robert Burns
My_to_do_list_for_today_n_n_Img01

This past weekend was a three day weekend because of Presidents’ Day. My wife and I decided that I should take a vacation day along with it. Four days off in a row! What opportunities! We could get so much done and then just spend some time together, maybe shopping, going out for a meal, or whatever. I had a list of things I wished to accomplish, starting with cleaning out my study. Every week I think, “Maybe next weekend I’ll get my study in order.” With four days, this was finally going to be the weekend!

Friday I realized I had a dental appointment after work, but no worries, the weekend would start immediately after that. Except that my daughter had soccer practice, and my wife was already gone with my son to his practice. When practice was over, I expected her to come running off the field so we could head home; instead newly inspired, she continued to practice some of her moves solo, and was most unhappy when I suggested we get headed.

It was now late.

Saturday offered all kinds of possibilities, although Katie had a soccer game in the morning, and Adam had a game in the evening. It had started to snow, and in true Virginia fashion, the weathermen (excuse me, meteorologists), reeking of adrenaline, were describing every possible catastrophic outcome with bated breath.

The officials at the Field House cut the second half of the soccer game by 5 minutes to clear people out early, so naturally the coach saw this as a chance to wax poetic with the team after the game.

We grabbed a couple of pizzas on the way home.

Sunday was the great “Battle of the Kitchen Sink” over which I ultimately prevailed. Barb took Adam to his flag football game while I grilled steaks so that they would be ready when everyone got home. The only thing scarier than a starving teenager is a teenager who’s starving because of athletic exertion. The meal was ready on time and casualties were averted.

Monday. The long weekend is quickly slipping away. The funny noise in my wife’s car got louder and we dropped it off for service. It was a very disturbing sound. If you listened carefully you could hear spelled out in Morse Code, “I’m going to be expensive!”

Even though there was no school, Adam’s high school was conducting tryouts for the soccer teams. This was three hours in the morning, three hours break, and then three hours in the afternoon. I had been marinating meat for several days so we could have shawarma for dinner, so I was focused on that.

Katie had several projects for school that should have been done earlier in the weekend, but now demanded her attention and she demanded mine.

Then the dog got sick.

Not terribly unusual, as any dog owner will attest.

In the early evening it was obvious that the dog was more than just sick. Barb drove and Adam carried the dog into our veterinarian’s office. After x-rays and IV fluids, the vet told us he needed to go to the emergency veterinary hospital. We waited there until almost midnight. After weighing the options presented by the vet, we decided to go ahead and have her perform emergency surgery.

To make a long story short, when Louis gets a bone, he doesn’t just gnaw on it, he completely destroys it. Well, not completely – bone shards had perforated his stomach and small intestine. The surgery seemed successful and Louis should be home tomorrow.

Now it’s Tuesday – may vacation day and day four of my four day extended weekend.

I’ve revised my “To-Do” List.

  1. Shred old “To-Do” List
  2. Unconditionally surrender

Maybe next weekend is when I’ll get my study in order.

Passwords, Activation Keys and Other Annoyances

Software companies invest time and effort into their products. They then try to sell them for the maximum price “that the market will bear.” I have no problem with profit, but when the profit is very lucrative it creates a major market for pirates, bootleggers and other ne’er-do-wells. The software industry‘s response, install special keys and filters so that copies can’t be used.

There’s a flaw in that theory.

Certain large Asian countries that do not honor our copyright laws reverse engineer our hardware, software and everything else. Hackers laugh at “your paltry little schemes!” They then share their tools and techniques freely on the internet and people happily install copied software with hacked activation codes or passwords.

In the meantime, honest people (well, even the dishonest ones) have computers crash and need to reinstall the software. This is a long and painful process even if you backup your data regularly.

It is even more painful if you can’t remember where you put the original disk with the activation code.

I upgraded the version of Windows on a computer that had come with a prior version of Windows installed. The motherboard (the main board into which everything else connects) failed, so I replaced it with the identical board from the original manufacturer.

Except that the folks at the computer company, which I won’t name, but the initials are H & P, had added one itty-bitty-tiny bit of code to the BIOS chip (the program that starts up the computer.) When I tried to reinstall the new version of Windows it wouldn’t accept that it was an upgrade because that code (called a tattoo) wasn’t there.

Customer service at Windows response – “That’s the way it goes.”

Fortunately, those who do not study the past are doomed to repeat it. The software companies are not studying history.

Remember when VCRs were new? (If you don’t, ask your parents or grandparents.) Movies on tape sold for nearly $80 a piece – thereby spawning the video rental industry. Remember Hollywood Video and Blockbuster? (If you don’t, ask your parents or grandparents.) The movie people soon realized that the people who were making the profit were the video rental stores. Their eventual response – make the price of a movie attractive enough so that people would be willing to buy their own copies.

Now people pick up movies by choice or even as an impulse purchase. I’ve even purchased a favorite, “Just in case I don’t already have it.”

The movie industry is going through another evolution as people shift from buying a movie on tape, then buying the same movie on DVD, then buying it again on Blu-ray. Now they’re streaming video through a service like NETFLIX and watching their favorites that way. It’ll be interesting to see how that develops; it’s great at home, but if you want to have a movie for the kids to watch in the car during the trip over the river and through the woods to Grandmother’s house, you need to purchase the disc.

I wonder if the software companies are studying this, or just planning on doing more of the same.

Just thought you’d want something to think about.

The Rise and Fall of the Twinkie

According to Wikipedia, “Twinkies were invented in Schiller Park, Illinois in 1930 by James Alexander Dewar, a baker for the Continental Baking Company.[1]
When he realized that several machines used to make cream-filled strawberry shortcake sat idle when strawberries were out of season.”

A treat upon which many an allowance was spent. Many times lunch money intended for more nutritious endeavors found its way to the snack counter and the Twinkies.

According to the news, Hostess, the parent company of Twinkies and several other popular brands, filed for bankruptcy. The company said it could no longer afford to operate according to the demands of unionized workers. The workers and their unions, on the other had, said that the pay and benefits for the jobs had deteriorated so badly that the jobs were no longer worth saving. Both are probably correct.

With the demise of Twinkies, the dietitian’s’ nightmare, and yet their own secret fantasy; the snack that reportedly could not die of old age on the shelf dies, as also did it’s partner, Wonder Bread. Wonder Bread the whitest of white breads. Wonder Bread – every child’s favorite, and another product unfazed by the passage of time (at least in comparison to its competition.) Bread may stale, but Wonderbread would stay to build strong bodies 12 ways. (Actually, in the 1940′s Wonder Bread added nutrient typically missing form most commercial bread, so its claim was not merely hyperbole.)

Like the buggy whip, the steel mills of Pittsburgh and American made Apple products, the Twinkie now fades into history.

Where were the federal bailouts for Twinkies? Where were the 99% to protest its demise? Nowhere to be found. Instead, the “invisible hand of economics” described by Adam Smith came into play, taking down the inefficient, the costly, the unprofitable, the Twinkie defense.

As Twinkies fade, at least briefly, into the sunset, don’t lose hope, because there is every chance that Twinkies will reappear, same recipe, same trademark, mostly the same packaging when some automated bakery buys the rights to the product and produces it in a more cost effective way.

To paraphrase our brethren down here in the South — “Save your allowance, boys, the Twinkie shall rise again!”

Simply Stated

In a world of surveys, opinion polls, projections, predictions, lies, damned lies and statistics, it’s nice to have ONE honest graphic representation.

 

I don’t know who created this, but well done! Well done!

Work, Work, Work, Work, Work!*

I’ve been outrageously busy at work preparing for a meeting. Since I’m a Federal employee, I just wanted to let you taxpayers know that there actually is an effort to keep costs down. The number of justifications I have to complete in order to travel for work is sufficiently onerous that anyone who has the option would quickly decide to stay home. It has to be really, really important before you’re willing to run the gauntlet for orders to travel.

As an employee, it’s an ordeal. As a taxpayer, I approve.

So, here are other thoughts…

We have a combination printer copier at work. It prints, it copies (obviously) it does dual sided copies, it enlarges, it scans, it folds, staples, spindles and mutilates.

So why doesn’t it know that if 3 of its 4 trays are filled with the same size paper oriented the same way, it doesn’t have to stop all printing and wait until Tray 1 is refilled?

At what age did it happen to you?

Twenty?

Thirty?

Forty?

At what age did you realize that your “Permanent Record” was no longer of any consequence?

I always wanted to read that the Permanent Record Storage Vault was destroyed by fire, flood or hacked by Wiki-Leaks throwing the country into chaos. I pictured it as some cavernous bomb proof shelter buried deep underground in West Virginia accessible only by a secret trap door in an otherwise nondescript Waffle House.

But, alas, it was all but a ruse by our high school teachers.

Today’s high school teachers have to tell a far better story to the kids today.

* Governor LePetomaine – “Blazing Saddles

Third Order Effect

Ham radio isn’t a hobby – it’s about 400 hobbies. You can transmit computer signals, text, television, speech and other modes. You can assist in disasters, public service events and talk with the astronauts in the International Space Station. There are satellites that are dedicated to amateur radio, contests and then there are the local repeaters. Repeaters are used to increase the range of small low power transmitters used in cars or that are hand held. Repeaters tend to be like neighborhoods – you find one where you share interests and tend to favor that repeater. Most mornings on my way to work I talk with some of the same folks, which makes the drive much nicer.

The other day we were discussing how years ago there were many mail order electronics companies from whom you could purchase parts at bargain prices. They were kind of like the online computer stores of today, except that they sold resistors, capacitors and such rather than complete computer boards.

When manufacturing jobs left the United States, the people who worked in the factories lost their jobs – the primary effect. The people who worked at the places where these laid-off workers spent their paychecks were also affected – everyone from the restaurant where they ate to the babysitter who watched their kids when they went out. These are the second order effects. We do tend to recognize that these exist. However, what about the ripples that continue from there?

The bags of resistors we could buy by mail were the surplus parts that came from the manufacturers. Perhaps they finished a manufacturing run and no longer needed that specific type of transistor. Maybe the parts were ordered by accident or maybe while awaiting a backorder they placed a second order in order to get delivery in their required time frame. In any case, they ended up with surplus that they sold.

Someone started a business that bought the surplus from the manufacturer and made it available to others by mail. This meant jobs for those who worked for the surplus business, as well as the folks who manufactured the shipping boxes, the postal service and so on. Naturally all of the people in this market used their pay to make other purchases with their own second order effects.

We know that the loss of manufacturing jobs had significant impact on the economy, but here’s another issue. As a youngster, the availability of parts allowed me to experiment – not always successfully, but try things out nevertheless. I wanted to know how and why things worked the way they do. How does a transmitter work? What about a receiver? I remember building a crystal radio and later finding out that in the Second World War soldiers in prisoner of war camps built radios out of a safety pin, wire, a pencil lead and a razor blade. The only commercial item they needed was a set of headphones. How cool was that? How did they do that? That questioning has stayed with me all these years and has helped me immensely.

Compare that to today. With computers in everything from our phones to our automobiles, there’s a wealth of technology. Yet if you ask a teenager today how a video board works, they haven’t a clue. If you ask them how a USB flash drive – one of those key fob memory sticks – works, the same answer. Software? Firmware?

With the loss of manufacturing, with the loss of the “leftovers”, we no longer fuel the imagination in young people. Instead of encouraging them to ask questions and actively seek answers, we instead give them computer games that provide some mental simulation but not the type that will help them in the future.

I guess we gave up a lot more than we thought we did by saving a couple of bucks per product by having it assembled in Mexico, China or wherever.

Airline Employee Orientation

“Welcome to Humongous Airlines! I know you’ll find your career here both exciting and rewarding. Over the next few weeks we’ll be teaching you the skills and techniques that will help you be a successful employee.

“The first rule is so obvious that I’m almost embarrassed to have to mention it. However, here goes.

“Rule Number 1: The customer is an interruption. If it weren’t for the customers, your job would be much better.

“For years we’ve tried to gently prod customers into going away. For example, when we did serve meals, the food was intentionally very bad. Likewise, when a customer approached the reservation desk, we always typed in reams of meaningless characters so it looked like the process was very complicated, only to end up telling the customer that their reasonable request could not be accommodated.

“Years ago, airlines were regulated like other utilities. Since customers could, and often did take their ticket to another airline if they were unsatisfied, we were stifled in how we could treat them. Once regulations were lifted, our options improved dramatically. Which leads us to…

“Rule Number 2: The customers’ discomfort is your responsibility.

“While most customers have already been softened up by TSA, some are terribly resilient and are able to recapture their optimism far too quickly. Over the years we have made the cushions of passenger seats tissue thin. We have made the seats narrower. We have packed more into it than the plane was designed to hold. We reduced legroom. We made it impossible to recline a seat without walloping the person sitting behind you with the hope that this would lead to fist fights. We have developed a seating system that strategically places extra wide passengers and crying children for maximum collateral damage. It’s gotten to the point that everyone gets assigned a middle seat unless they pay extra. This has the added benefit of making it even more expensive for families to travel together. Which segues nicely into…

“Rule Number 3: If the customer isn’t paying for something, it has no value.

“As you know, we are now proud to charge for extra luggage. This means that we charge for any luggage the customer might need. We charge for heavy luggage. When people began to check less and carry more luggage on board, we started charging for carry-on luggage. If a customer wants to deal with a person rather than a computer terminal, there’s a charge for that, too. We don’t quite have the pay toilet system figured out, but don’t worry – we will. So let’s go on to our next rule.

“Rule Number 4: Anything we don’t want to do, we should be able to make the customer do.

“Customers have been trained to check themselves in, put baggage tags on their own luggage, and to carry their checked bags to TSA screening. They purchase their own snacks and meals to carry on the plane. They print out boarding passes at home saving us reams of paper and gallons of ink. Since we can’t let them outside the airport building, we can’t make them load their own luggage into the plane, which is a pity. Until we figure this one out, we’ll have to be content with either smashing their suitcases and the contents, or rooting through those that are unlocked.

“Now we’ve been working a whole fifteen minutes so it’s time for a break. Let’s limit it to an hour. Our next topic will be ‘A Comparison of How Cattle are Treated at the Slaughterhouse to Airline Passengers’ sometimes referred to as the ‘I wish I were a Cow’ lesson. We’ll cover another fifteen minutes worth of material and then break for lunch.”

Acme Announces New CEO

Memo – May 7

To: Senior Staff

From: Bob Johnson, CEO

Ladies and Gentlemen,

I can’t tell you how excited I am to join the company. I’ve written a short note to all the employees that I’d like to get out to everyone as soon as possible. Please take a quick look at it just to make sure that I haven’t inadvertently made any serious errors and get it distributed, hopefully by tomorrow. Thanks.

DRAFT TEXT –

There has never been a more exciting time in business. After the past few years of economic challenges, we now have the opportunity to make a real difference. Investors are looking for companies that are forward looking and enthusiastic in which to invest, and that can be us. I’ve had time to meet with some of you and we have some really talented people. I am so enthused that I can’t wait to come to work each morning and find that sometimes I get out of here late just because I believe in what we can do. I hope you feel the same way.

My door is open. If you have an idea to help us make progress, no matter what it is, don’t be shy. Stop by, call me and leave a message so we can meet at lunch in the cafeteria, or just send me an e-mail.

We’ve got the chance to be a model for the way American business should be in the twenty-first century. I have faith in you. Let’s do it!

Memo – May 15

To: Senior Staff

From: Jim Smith, Legal Counsel

I’ve set up a meeting to review our new CEO’s welcome memo. First available time is two weeks from Wednesday. Have all powerpoint slides sent to my office for review by close of business on the Friday before the meeting.

Memo – June 1

To: Senior Staff

From: Jim Smith, Legal Counsel

I hope everyone had an enjoyable Memorial Day long weekend.

Attached are the minutes from the meeting concerning the new CEO’s welcome memo. Please review so we can finalize at our next meeting on June 13. I need all edits using the “track changes” feature so my office by June 8. This is a “hot issue” so we need to act with all due haste.

Memo – June 18

To: Senior Staff

From: Jim Smith, Legal Counsel

Attached are the minutes from the meeting we held on June 13. I’d hoped we’d be able to release this memo, but Human Resources has found some serious issues that need to be resolved. With the Independence Day holiday and vacations it will be difficult to get everyone together, but let’s see what we can do.

Memo – July 11

To: Senior Staff

From: Mike O’Reilly, Human Resources

Attached are the personnel issues we need to address for the CEO’s memo. I’ve checked everyone’s calendar and it looks like between vacations and back-to-school preparations, August 15 is the first available date. Let’s try to wrap this up.

Memo: – August 24

To: Bob Johnson, CEO

From: Senior Staff

Attached is the finished memo per your request.

DRAFT TEXT –

There has never been a more exciting time in business. After the past few years of economic challenges, we now have the opportunity to make a real difference
it is not possible to reliably predict future performance. Investors are looking for companies that are forward looking and enthusiastic in which to invest, and that can be us.  but employees are not to solicit investment offers on behalf of the company without written authorization from finance and legal. I’ve had time to meet with some of you and we have some really talented people however this should not be seen as in conflict with any evaluations conducted by your supervisors. I am so enthused that I can’t wait to come to work each morning and find that sometimes I get out of here late just because I believe in what we can do. I hope you feel the same way.
Remember that overtime is not authorized without prior request approved by your manager.

My door is open. If you have an idea to help us make progress, no matter what it is, don’t be shy. Send your idea for approval by your supervisor and manager.
Stop by, call me and leave a message so we can meet at lunch in the cafeteria, or just send me an e-mail. If possible we will arrange a meeting to include your supervisor and manager.

We’ve got the chance to be a model for the way American business should be in the twenty-first century. I have faith in you. Let’s do it!

Wall Street Journal
September 3

In a surprise move, Bob Johnson, CEO at Acme Corporation only since May of this year announced that he and 300 employees of Acme were leaving the company in order to start their own competing business. Investors have flocked to the new company citing its spirit of innovation and enthusiasm.

Concerns about Johnson being in violation of a non-compete clause were laid to rest when Mr. Johnson pointed out that he was still waiting for Acme to complete the final edits on his employment contract originally due last April.

The new company, named “Phoenix” is a much flatter organization with services such as payroll and legal counsel contracted with top providers rather than being conducted in house.

Acme was contacted for this story, who replied that they are preparing their press release, which will be forthcoming.

GE – “We Bring Good Things to Life”

I saw in the news today that General Electric filed a 57,000 page tax return.

 

Not surprisingly they paid no taxes.

 

Let’s put that into perspective. The return, if printed out would stack 19 foot high. It would weigh 570 pounds, and the paper alone would have cost $330.60 (sale price at OfficeMax). If GE filed paper copies and broke the return into 500 page packs, printed their own mailing labels with postage (it’s cheaper than mailing at the post office) the postage would have been about $600.00.

 

I have to wonder.

 

GEs tax return was undoubtedly completed by an army of CPAs and lawyers. If they fully allocated the costs associated with this tax return they would have to include a variety of items:

 

1. Tax experts to locate existing tax law loopholes

2. Lobbyists to work with Congress to get additional loopholes

3. Managers to devise business practices that would take advantage of loopholes

4. CPAs & Lawyers to prepare tax return

5. Computers, copiers, administrative support for the tax preparation department (you’d expect most of experts at this level to have a staff)

6. Meetings to discuss progress and resolve questions with the tax return

7. Coffee, doughnuts and refreshments for the meetings (Okay, I’m going overboard here)

8. Damage control and marketing to counter the negative publicity of GE paying no taxes

 

Would it have been cheaper just to pay the taxes?

 

Just wondering. It’s something to think about while you watch NBC (owned by GE) under a GE CFL lightbulb (made in China.)

 

P.S. At first I was frustrated when GE moved its Medical X-Ray business from Milwaukee to China. Now I figure it’s better for GE to not pay Chinese taxes than for it to not pay U.S. taxes.

Please Explain This to Me

I recently read that in the Northwest wind turbines are producing too much electricity so they are paying the turbine operators to shut them down.

Now I’m confused.

Given the concept of greenhouse gasses, global warming, and the other environmental issues, wouldn’t it make better sense to throttle back the fossil fuel burning generators and let the wind turbines continue to produce? Wouldn’t that create market forces favoring renewable energy?

Did any of these people stay awake in Economics 101 when they were teaching the concept of supply and demand? If so, why pay ANYONE to not produce power?

All answers are welcome.

Why There’s No Wikipedia Today

Yo! I’m RR Cool Dog Z a top rapper and I are here to talk to you about SOPA and PIPA (SOPA – Stop Online Piracy Act and PIPA – Protect IP Act, ed.)

You may have noticed the Wikipedia is down today in protest of these bills, and I’m here to tell you that they wrong! Who you going to believe, a bunch of geeks with pocket protectors or me and my peeps?

Let me explain it to you in terms even you can understand. I got to protect my intellectual property like my songs and [bleep] (stuff, ed.) All us entertainers deserve to have our artistic licenses protected. Every time a copy of my material is copied illegally, that costs me money.

You think it’s easy bein’ and entertainer? I gotta keep thinkin’ up new songs, and it’s hard, man. It’s hard.

It’s expensive livin’ in Beverly Hills. Hell, a week’s worth of cocaine for me and my posse costs more than what you make all year. Then there’s all the bling I gotta wear. Fortunately they tell me that the bling is deductible, whatever that means. But I do look good with lotsa gold, if I do say so myself.

Then there’s them [bleep] (female associates – ed.) Talk about costin’ a lot; whew! Then there’s my peeps – my people. I gotta have lawyers and accountants because clothing and perfume companies are always begging me to put my name on their [bleep] (products –ed.)

Pretty good for a dude who didn’t finish high school, huh?

But I got off track. [bleep] The bottom line is tell Congress that everybody who wants to listen to my [bleep] needs to be payin’ for it. Got it? Good!

Oh, and check out my new perfume line, “Dog Dew” at your favorite upscale department store.

An Interview with Santa!

From time to time I have the opportunity to interview some of the more interesting people from around the world.  Given that it’s Christmas, I am especially thrilled to be able to interview Santa Claus.  While I can’t divulge details, I can say that I was taken to Santa’s “workshop.”  In truth it is far more of a modern, high efficiency factory, heavily automated and computer driven.

“Santa, it’s so kind of you to take time to talk with me at such a busy time of year.”

Well, I’m really not taking time.  As you can see, I’m still working, but after doing this for so many years, talking and working at the same time is hardly a challenge.

“In any case, I appreciate it.  I see that most manufacturing up here is automated.  I always thought that it was the elves who made the toys.”

That was fine when the world was not so densely populated, but these days we have to use every modern tool in order to keep on top of things.  Most of the elves are into design or research and development.  One elf with a reasonable CAD/CAM system can design, test and finalize 20 or 30 different toys per year.  This includes everything from the original idea, through assembly and packaging.  Besides, after a while hand-painting dolls gets a little old, so they’re much happier. 

“This has to be an extremely expensive operation.  How are you able to pay for all the Christmas presents for all the children?”

We actually don’t pay for all the presents.  You look at the average Christmas morning and parents buy their kids the bulk of the presents, with Santa making up the rest.  For the less fortunate children the Marine Corps “Toys for Tots” and other groups are a lifesaver.  However there are still a lot of gifts that we handle. 

Years ago we were able to operate using loose change dropped under couch cushions and money people let in old purses or pockets.  You add that up throughout the world and it really adds up.  The elves were quite good at locating that kind of funding.  However, it doesn’t make sense to let this factory sit idle for over half the year, so we keep it running making a variety of other products that are sold through regular retail chains and on the internet. 

“Santa, that sounds like good business, but how do you get your products from here to the retailers?”

Mainly by shipping through China.  We stamp “Made in China” on the bottom, load it into shipping containers and then get it on ships going to America, Europe or wherever.  The Chinese get a handling fee, of course, plus our products help them in earning a reputation for quality. When someone in China cuts corners or uses lead based paint, they not only bring Chinese manufacturing bad publicity, but the leaders know it could lead to us taking our shipping elsewhere.  India would love to take it over, and I get a call from Brazil at least once a week.  For now, though almost everything goes through China January through September.   

“Is it profitable to do that?”

Absolutely!  Elf labor is absolutely free.  When you’re seven or eight hundred years old, you probably already have owned anything and everything you could ever dream of.  Besides, if one of us thinks of something we really want, we just whip it up in the factory.  Outside the factory are the living areas, so eating and sleeping is covered.  Given the travel we do on Christmas Eve, no one wants to travel for pleasure. The expensive part is raw materials, but the containers of toys and other goods we send through China come back filled with wood, metal, plastic, electronics and whatever else we need.  We’ve even got a nice little nest egg tucked away should we need it. 

“What about the actual delivery system.  How are you able to get all the toys and gifts delivered in one night?”

Everyone pitches in on delivery.  You think FedEx or UPS is impressive? You’ve never seen elves on a mission.  Everything is bar coded, scanned and routed automatically ready for loading on one of the sleighs.  Year ago we figured out that we could set the sleighs up so that the sleigh driver would look just like me.  Each elf takes a sleigh to his route so we can divide and conquer.  We work east to west to take advantage of the different time zones.  Needless to say, we’ve pretty much got it down to a science. 

“Why is it that people don’t see your sleigh in the sky?”

What? You think you folks invented stealth technology?  On Christmas Eve I could be six inches away from you and you wouldn’t know I was there.  Well there was one time that I ate roasted garlic before leaving, but that’s another  story. 

“Like you said, you’ve been doing this for a while.”

A  l-o-n-g while! 

“So what do you do when you finish the deliveries?  Do you just fall into bed?  Do you chill for the rest of the day?”

Ho! Ho! Ho!  

You forget that Santa Claus means SAINT Nicholas! On Christmas morning the elves and I go to church and celebrate.  We kneel down and thank God for Jesus’ coming.  We thank Him for giving us a reason to celebrate this holiday and we thank Him for the reason we get to make all the children so happy!

Merry Christmas and Peace on Earth to People of Good Will!

 

 

The Bank Staff Meeting

I’d like to welcome everybody to the weekly staff meeting.  Please turn off all pagers and cell phones. 

What’s that Bob? I don’t care if you’re waiting for a call on a major investment!  You need to get your customers under control.  This bank doesn’t exist to keep customers happy!

Okay, the first order of business.  For years we’ve chained down the ball point pens.  However, people can take as many copies of the deposit slips as they want.  Corporate has directed us to have only one deposit slip out in the lobby area.  When that one is used, we’ll replace it.  If a customer uses more than one, we’ll charge them 10 cents per deposit slip.  What’s that Carol?  What if they have two accounts?  No matter, they still have to pay for the slip.

By the way, let’s all give Carol a big hand.  She figured out that although pay toilets are illegal in this state, pay bathrooms are not.  It now costs one dollar to get into the bathroom.  Since there is no charge to use the actual stalls once you’re inside, it’s completely legal.  Great job, Carol.

Now as you’ve heard, since we can’t charge people for using their debit cards after all, so we’re going to have to lay off thirty thousand employees nationwide.  This is necessary in order to continue the bonuses for our top executives.  Oh, and we’re raising your health insurance deductible and co-pay effective immediately.

Speaking of executives, you’ll be reading in the paper tomorrow that our CEO embezzled twenty-seven million dollars and is now on a Caribbean Island that has no extradition treaty with the United States.  The bad news is that according to his contract, he’s entitled to cash in his stock options for an additional seventeen million.  The good news is that his secretary, who we fired just for the hell of it, is not entitled to unemployment compensation.

We are in the process of hiring a replacement for the CEO.  An offer has been extended to the former CEO of MegaBank.  Since they have declared bankruptcy, he’s now available.  Oh, and he’s also the nephew of a member of our board of directors, so I’m sure he’ll do fine.  I’ve been told that we’ve reached an agreement on his salary, stock options, bonuses and severance package.  Once he and the devil complete negotiations concerning his soul he’ll be able to get started.

Remember, people, most paper clips can be bent back into shape rather than discarded and if you bend a post it note over you can use the other side.

All right everybody, back to work.  Time is money!

Better Than a Bank?

I saw an interesting article yesterday titled “Bank Deposits Soar, Despite Rock Bottom Interest Rates” By E. Scott Reckard, of the Los Angeles Times. Click on the link to read it.

The one line in the article that really sums it up is “Banks and credit unions are doing everything they can to get rid of cash except make loans,” said Mike Moebs, a banking consultant.

This caused a neuron that I haven’t accessed since undergraduate Finance 101 to tingle. Back in those days banks and other financial institutions were much more regulated. “National” banks meant that they were organized under federal rules – not that they covered the entire country. There were also banks chartered under state rules and in many cases banks could operate only in the county where they were incorporated and the contiguous counties.

Besides banks and credit unions there were “Savings and Loan Associations” which were also known as “Thrifts.” As I recall, the banks, known then as “Commercial Banks” had traditionally dealt almost exclusively with companies rather than individuals. Hence the “Commercial” delineator. I’m sure they wouldn’t have turned John D. Rockefeller away, but they did not deal with most individuals. This limited most people significantly, particularly with regard to purchasing a home.

Someone came up with the idea of starting an institution that would accept money from individuals as deposits and loan that money to individuals in the form of a mortgage. They had existed in various forms in Great Britain for years, but really came into their own in the US in the early twentieth century. It was a win-win situation. At one point there were even provisions that permitted Savings and Loan Associations to pay a higher rate on deposits than banks. They were focused on deposits and mortgages; for example, they were prohibited by law from offering some bank services such as checking accounts.

Over time the role of the Savings and Loan Association was absorbed by banks and credit unions. In many cases this is because these institutions arrange mortgages (and other loans) then sell these off to others such as Freddie Mac and Fannie Mae. In the 1980’s corners were cut, fraud occurred and questionable loans written ultimately leading to the death of the S & L’s. (Note: I wonder where those managers who killed the S & L’s found new jobs…)

However, these days we have people who wish to deposit money and receive interest on their deposits. We also have people who either wish to purchase a home or possibly refinance an existing one. Maybe the Savings and Loan Association is due for a second life.

As I recall, back in those days the mortgages were not bundled into indecipherable derivatives, but held by the Savings and Loan Association. This avoided many of the ills that the real estate market has recently endured. Back then people were more closely associated with and knew one another better which reduced the risk to at least some degree. Not only did the depositors know the borrowers, but the borrowers certainly did not want to fail both financially and in the eyes of their friends and neighbors (aka the depositors.) Finally, if there were a financial set back, it was in everyone’s interest to try to work things out.

Maybe if an organization like a church or fraternal group set up something like a Savings and Loan for their members it could correct at least some of the financial problems we’re currently facing. I know there are rules and regulations, but certainly there must be a lawyer somewhere who could figure out how to make it work.

The Savings and Loan idea worked once. It just might work again, or maybe this discussion could lead to something else that might work.

Where Can I Mail a Letter?

Everyone is well aware of the current financial difficulties of the United States Postal Service.
There might be a reason they are having some of the current problems. Just a thought.

I have a daughter who is profoundly handicapped who lives hundreds of miles away. I try to write her every week. Sometimes it’s a card or postcard, at other times it’s a plain old vanilla letter. When I travel, I try to find a postcard from the area or some other representation of the area in which I’m located.

This week I’m traveling. I wrote her a letter. I stopped at the front desk of the military berthing site where I’m staying and asked where I could mail a letter. They couldn’t tell me.

“We used to have a mailbox out front but they took it out,” the lady told me.

The USPS is complaining that they are losing business so their response is to make it more difficult to utilize their services? Actually this is no surprise if you’ve stopped into a post office in the past 25 years. My experience is that if you arrive 1 minute before the post office is scheduled to open there will be a line waiting. There is no way the USPS employees will open the gates to wait on those customers until opening time. It doesn’t matter if the president is standing in line – it just ain’t gonna happen.

However, if one of the USPS employees is telling another employee a joke or a story, that must be completed before the customers can be allowed up to the counter. This means that if the post office has a scheduled opening time of 9:00 AM and there is a line waiting, the rehash of yesterday’s game may not be completed until 9:05 – 9:07. After, and only after this can customers be served.

The USPS claims that it is seeking to reinvent itself because of the competition from e-mail, UPS, FedEx, DHL, et al. To do this they are focusing on two areas – bulk mail and package delivery. I don’t know about you, but almost all my USPS delivered bulk mail goes directly from the mail box to the recycling bin.

Oddly, the profitable commercial delivery services are not competing for the bulk mail business. I suspect that if bulk mail were truly profitable the commercial interests would be very interested.

If I heard correctly, there was a brief comment on the news this morning stating that when the USPS delivers packages they are planning on no longer taking them to the door. If it doesn’t fit in the mailbox, you’ll have to go to the post office. UPS delivers to the door. FedEx delivers to the door.
Of course another cost cutting measure of the USPS is to close post offices. So they won’t deliver your package to the door and it will be more difficult to retrieve your package at a post office.

One might become cynical and begin to believe that the USPS is doing everything possible to ensure its own demise. Despair.com has a poster showing a telephone covered with cobwebs; the captions says, “If we don’t take care of our customers – maybe they’ll leave us alone.” You don’t suppose the USPS failed to recognize that as satire?

Perhaps the USPS should reinvent itself as the Old Post Office. Back when I was a kid a mailman had a uniform, a leather bag and a three wheeled cart. Total cost, a couple of hundred dollars; carbon footprint – nil. Today each mail carrier has a vehicle, most specially built trucks with left hand drive. Fuel economy is worst with stop-and-go driving, so the fuel economy must be abysmal. Total cost, tens of thousands of dollars (at best); carbon footprint …

Would returning to old practices solve all of the problems? Of course not. It might, however buy time to figure out what role the USPS should play in the future. It’s obvious that the business model the Postal Service has chosen is not working. Slightly modifying the course of a plane while it is in a dive only changes where it crashes, not whether or not it crashes.

The down side is that would take more people if we went back to the old style of mail delivery. If only there were high levels of unemployment – then we could hire some of those people to deliver mail. And what if the federal government had a “stimulus” plan to inject money into the economy; in that case the mail carriers could be paid with stimulus funds! Who knows, there may even be some senior managers or industrial engineers among the unemployed who could figure out how to come up with a long term solution to the USPS conundrum.

Customer Service in the Twenty-First Century

There are so many conventions these days that it’s hard to keep up.  There are political conventions, of course, computer conventions, electronic conventions, comic book conventions and science fiction conventions.  Naturally there is also a convention convention where those who put on conventions meet to discuss things in, well, conventional terms. 

Many of these conventions get featured on the mainstream cable news channels, especially if it is a slow news day.  However, there is one important convention that does not get a lot of mainstream focus; no, I’m not talking about the Ham Radio Convention in Dayton, Ohio in two weeks.  I’m talking the Customer Service Convention.

It was a happy accident that I discovered the Customer Service Convention.  Originally I had planned on attending the Psychics Convention; that is sometimes difficult because they don’t post a lot of information about their meetings, because, well, they’re psychics and they already know.  This year they were so in tune with the universe that not only did they not post information about the planned convention, they decided that they all already knew what was going to happen, so they skipped the convention as being entirely unnecessary.

The only one caught off guard by this (besides me) was the hotel at which the convention was to be held.  This is not an uncommon occurrence and explains why for the Psychic Convention all rooms must be paid for in advance and are nonrefundable.  The hotel scrambled to find another event and ended up with the Customer Service Convention.  In years past this was a relatively small event encompassing mainly the employees from United States Postal Service and the Departments of Motor Vehicles.  With the decline of the USPS, membership has been opened to other suitable organizations.  It’s a sad note that while postal workers were once seen as the model for customer service, today they are looked at with scorn.  They keynote speaker put it rather well in his remarks.

“At one time the Post Office could make you jump through any hoop, wait in any line, pay any price and suffer any indignity regardless of who you were or how much you were worth.  Today it mainly hands out junk advertisements like some hawker handing out tickets in front of a strip club in New Orleans or Las Vegas.

“However, as we have shifted from a manufacturing economy to a service economy, many other industries have filled this void and learned how to treat customers badly and like it!  In the past years we’ve made advances such as we never expected.  Let’s take a look at some historic customer service milestones.

“In the Sixties the telephone company was a monopoly so complete that it was illegal for a person to even own a telephone.  Long distance calls were usually completed with operator assistance meaning you did exactly what you were told or your call would not go through.  The phone company didn’t care who died, or how important the call was, it was ‘My way or the highway’ and they meant it.  If you didn’t cooperate you could literally be forced to get in your car and drive your message to the recipient.

 “In the Seventies the cable companies trained everyone to expect to wait and wait and wait.  They would say that they would be at the customer’s site ‘Sometime between 8:00 AM and Noon’ or “Between Noon and five o’clock’ but everyone knew it really meant ‘Sometime between when we feel like it and when hell freezes over.’

“In the Nineties, fast food perfected the self-obfuscating intercom system thereby making it so that neither the customer nor the drive through attendant had any idea as to what the other was saying.  Of course, this was somewhat quaint as the expectation that customers would receive what they had ordered had long been laid to rest.  Drive-throughs were like a box of chocolates, like Forrest Gumpp would say.  You never knew what you would get.

“Then came the airlines that eliminated meals, snacks, drinks and 25% of the size of the seat.  When passengers didn’t rebel they followed that up with charges to check bags.  Not only was that genius, but, and this still cracks me up – After they charge to check your bag, if they lose it (at this point the speaker lost his composure completely and began to giggle uncontrollably) THEY DON’T EVEN REFUND THE CHECKED BAG FEE!

“But now we’re in the second decade of the twenty-first century and it is my proud duty to talk about the new industry leader that is defining Customer Service!  Ladies and Gentlemen, let’s give a round of applause to the healthcare industry!

“Nowhere else does a customer sign a statement that talks about his right to privacy at the same time he is required to write his full name on a page so all the other patients know who’s who.  This may be merely a trifle at the family doctor, but is pretty embarrassing at the proctologists or sexual dysfunction clinic.  And just to make sure everyone knows everyone else’s business, the receptionist makes no effort to be discrete but bellows out the patient’s full name so that everyone can put a face with the name as the patient stands up.

“Of course, it’s always fun to give that personal touch and doctors’ office personnel have proven especially adept at this.  You’ve heard it; ‘The hemorrhoids giving you any trouble today, Mr. Johnson?’ or ‘I hope that nasty rash has cleared up Mrs. Jones so that you can ride your bike and get back to your horseback riding.’  And most fun of all is, “Well now that you’re done with your antibiotic treatment, let’s see if the doctor will refill your Viagra prescription for you.

“But it’s not just in what you say, or how you say it.  We all know that actions speak louder than words.  Some of the innovations that we’re seeing in healthcare are requiring the patient to repeatedly write the same information on form after form after form.  Bringing documentation to prove they’re insured, documentation to prove their identity and then documentation to prove that what they brought is their documentation.

“Last but not least is the latest technique in Customer Service that has won the healthcare industry  this year’s special recognition.  There are now doctors’ offices, clinics and hospitals – are you ready for this?  There are now doctors’ offices, clinics and hospitals that CHARGE THE PATIENT FOR FILLING OUT THE PAPERWORK!

“Now I have much more to say on this, and I know you’ll find it interesting, but it’s time for my break.  Everyone needs to sit down and shut up and wait until I get back.  Thank you.”

Copyright 2011 SF Nowak – All Rights Reserved