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Archive for the ‘Problem Solving’ Category

The Doctrine of Fair Share

Friday, April 1st, 2011

GE reports it made $14 Billion in profits and paid zero in taxes. States such as Wisconsin, Indiana and Ohio are pursueing anti-union initiatives, telling their public employee union members, “You need to pay your fair share of health insurance and pension costs.”  The middle class is clamoring that the rich, “Need to pay their fair share of taxes to the State and Federal coffers.” Individuals in upper income brackets say they’re already paying their fair share. In fact, they claim they’re paying a disproportionate fair share percentage of total taxes. In this Bigger than life debate crisscrossing the country, it appears that everyone is speaking with the same punch line, “You/they need to pay your fair share.” It’s that simple and that complicated.

Although “fair share” is a simplistic term, its a complicated problem. In fact, some might call it a “wicked problem.” And therefore, “what’s fair” is based on one’s perspective, not necessarily some universal truth. And since we’re generally incapable of agreeing on what constitutes ”fair share,” it degrades into a “I know whats unfair” debate. Consequently, the dialogue goes something like this.

Employees that work for private companies generally have to pay from ”X% to X%” of their health insurance premiums, therefore its unfair that public employees only have to pay “Y%” of their premiums.

GE made $14 Billion of profit last year and paid no taxes. I may not know what amount would be fair for GE to pay, however I know that paying zero in corporate taxes is totally unfair.

Teachers only work 9-months out of the year and are paid on average $xx,000 a year. I have to work 12-months out of the year and are only paid $xx,000 a year. I think what teachers are paid is unfair, because…

The problem with the “fair share” dialogue is that it quickly turns into a “whats unfair” edict, which makes it potentially emotional and polarizing. Plus we cannot forget, one of the reasons behind why unions were created was to achieve a “what’s fair” income. Now, a “that’s unfair” agenda is being pursued by some states.

Will or can this debate ever be solved. I don’t know. However I do know one thing for certain, the polarizing nature of the fair/unfair debate can never be discounted or overlooked. What do you think.

It Kinda Makes Sense If…

Tuesday, October 26th, 2010

In another week, we’ll be at the end of another election cycle. And the likely outcome. The Democrats will lose the momentum they gained in the 2008 election cycle. While this turn of events is not unprecedented, its still a shocker for many. After all, the Democrats rolled to victory with much fanfare and a tremendous support for change from the electorate. A new President and a revitalized  Democratic party was in town.  Today however, it seems that everything 2008 is underwater, or at least, gasping for air.

It’s easy to portray that this is simply politics at work. However, I will offer up an alternate suggestion. The more partisan politics becomes, the more likely idea platforms put forth by party leaderswill  fall into the arena of “It kinda makes sense if …”

A couple of months ago I was in a conversation where someone said, “You know, it kinda makes sense if you don’t think about it too much.” What a brilliant statement! I realized at that moment, that this is a universal truth about so many things in our lives. For instance, have you noticed that so many things kinda make sense when you first look or think about them? It could be an acquisition, a new policy or program, a new product development idea, a new proposed marketing strategy… And how about government programs from health care reform, to extending unemployment benefits, to scientific research initiatives. They all make sense until…

And that is the problem, there are a plethora of ideas that make sense on the surface, yet don’t make sense in reality. It’s our role and responsibility to think about things, and place them under the spotlight of thought, analysis and debate. If we don’t, the potential for unintended consequences and the emergence of silent problems becomes magnified.

Caution, don’t let the attraction of “It kinda makes sense…” allow you to make poor and misguided decisions.

Driveby Problems and Rants

Monday, May 3rd, 2010

Does your business experience frequent driveby problems and rants?

The other day I had breakfast with my friend Perry, and he introduced me to the possibility of driveby scenarios that occur in businesses every day. These occurrences amount to a quick “Did you know…”, “Did you see…” or ”Do you realize…” These driveby scenarios amount to a “Hey look over there…” and then the person that held the information is gone. Information has been delivered - although incomplete and probably somewhat criptic. A concern or problem is possibly raised. Except, they don’t stay around long enoug to ask further questions or to seek clarification. Now it’s up to you to decide what to do with it.  Is it important or not?

If you think about it, most of us have experienced such situations. At the very least, they’re a distraction. However in many situations, they’re a huge problem and potential liability. In these scenarios, what do you do? Do you go out of your way and seek more information? Do you simply ignore them? Or do you assume if its really important, more information will follow?

Today I wonder how many frontpage news stories in the business section have a “driveby” component attached to them. Is this at the heart of Goldman Sachs problem?

When you experience a driveby problem or rant, the next step you take may be more important than you think. Because if its really important - you’re exposed.

The Multiplier Effect

Wednesday, March 10th, 2010

If you’re promoting, the multiplier effect is considered to be your friend. If you’re defending, the multiplier effect tends to be your enemy. And in problem solving, the multiplier effect could be your enemy, or your friend.

As I speak with individuals and present to groups about the numerous challenges of encountering a silent problem in their organizations, the multiplier effect is integral to the discussion. In essence, a $50,000 problem could easily be a $100,000 or a $1,000,000 problem if one is not careful. Such is one of the greastest risks with Silent Problems (problems that are avoided, neglected or going unnoticed). Because by the time one gets around to solving the problem, the multiplier effect is already in play. For instance:

  • The loss of a key employee escalates to 5-employees.
  • A customer that leaves for cause, quickly escalates to the loss of 10 customers.
  • A key initiative announces a delay at the last minute, which in turn creates a cascading effect across the organization.
  •  A problem that was avoided has a financial impact much greater than originally anticipated.
  • Worker productivity declines in one department due to a silent problem in place, and then spreads across the organization.

It is the role of leadership to set the pace, direction and focus of the organization. However when a silent problem is present, unintended consequences tend to emerge. Initially these may be a small distraction, however over time, they can become significant and real - at times mulitplying like rabbits.

Bottom Line: The multiplier effect and silent problems have a kindred relationship, which is almost always negative. It’s important to take into consideration the potential of a problem when allocating resources and building the solution to solving it.

Be the one to see it coming!

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Without Warning - Rondey Johnson

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