Saturday, June 18, 2011

Creating Jobs!

Sometimes when I read the news, I stand amazed at how little our government officials seem to understand real life. Especially business life. Our unemployment rate is above 9%. Our growth rate in the U.S. is expected to be less than 2%. Millions of Americans have been cut out of any modest "recovery" and the projected "new normal" will be 7% unemployed forever. Really?
 Of course the governments solution is to throw money at the problem. (Money we don't have, by the way, and will be forced to borrow) Governments don't create wealth, they consume it. We should learn from Greece, Spain and others. The public sector employees, unions government programs with cradle to grave hand outs which are killing the future for my friends in Greece. Their debit to GDP is 127%! I recall working in Athens just a few years ago and talking with a group of union employees, who worked for a small government establishment. I told them how to approach a cooperative, inclusive management process how it could be accomplished and offered to coach them through it. My statements concerning working together was received with stiff necked resistance from both sides. Now I watch the battle grounds being waged in that beautiful city on TV and am truly saddened to watch countrymen fight one another as the enemy. It could have been avoided. It would have required some major changes which they were unwilling to consider. Now they are going to experience changes which are much worse than they could have imagined. Their standard of living will decrease for years to come. The unrealistic unsustainable debt will be devastating to ALL.
Our own U.S. government may provide a "job" for some people like TSA agents (and yes, it's a government jobs program and not a security program) contracts and bail out money to protect public sector unions and of course more IRS agents to make sure we are paying our taxes to pay for the jobs programs. But it won't create wealth. Lately the Obama administration has suggested we have more training programs paid for by the government. But what good does it do to train people for jobs that don't exist?


Creating jobs must equal creating wealth for a healthy company and country. And creating those kind of jobs is ALL ABOUT the customer! The only way jobs will come back to American workers is by "Creating Customers." In addition they will need unusual cooperation on both sides of labor and management becoming true partners in growth and profitability. For my friends in Europe, Asia and Russia who have small businesses, it's the same mindset. Building a business that causes customers to seek you out is how to survive the economic pressures. I know first hand because in my own company we have made adjustments, not only to survive, but thrive. People buy because of a WANT or a NEED. Good sales people are able to convince reasonable people that their WANTS can become NEEDS.


                                  Creating Jobs/Wealth


> Have a strategic plan for at least the next 3 years. Do this with a holistic view of your business.


> Reduce waste that has become a way of doing business in your company. ( I can give examples if you like.)


> Build true partnerships in and with your business.


> Find ways to set yourself apart from the rest...even if you provide a commodity product or service.


> Sell what you do best i.e. Quality, Service, Time, Flexibility or Price.


> Do Jack Welch's 20/70/10 rule EVERY year. In different areas of your business.


> Practice sound financial disciplines.


What role does government have? Simple. Get out of the way!! How?


Get rid of those agencies that are not supporting the free market enterprise. Stop building more oversight regulations, committees and departments like the EPA, NLRB etc. Reduce the corporate tax rate so organizations can spend their money on Marketing, R&D, new equipment and new product development. Allowing companies to keep more of the profit will encourage jobs to stay here and not go overseas. Confidence in the economy will only happen when people are spending again. They will only spend when they have confidence that government is not going to mess things up and that we are on the right track for growth.

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