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http://www.abnnewswire.net/rss2/menafn/abn_menafn_en.asp Bandanna Energy Limited (ASX:BND) is pleased to announce that AMCI, the manager for the South Galilee Coal Project (SGCP) Joint Venture and …

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Bandanna Energy Limited (ASX:BND) Maiden Open-Cut Reserve Statement for South Galilee Project

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Huffington Post…

About 30 citizens ventured out Thursday evening in the drizzling rain to Detroit’s Grand Circus Park to march in protest of Michigan’s emergency manager law . Public Act 4, passed in March, allows the state to appoint emergency managers to take over struggling cities. Four Michigan cities and one school district are currently under the rule of these managers, appointees of the governor with near absolute decision-making power. The city of Detroit is presently undergoing a review to see if it qualifies for a state takeover. The group We Are the People called the demonstration to encourage Michigan citizens to sign a petition to freeze the law and put it up for a statewide referendum. Also present were members of Occupy Detroit, Michigan Forward and the AFL-CIO. The protest marked a return to Grand Circus Park for members of Occupy Detroit, who had set up an encampment there in October, but left for the winter in November. Protesters marched to the Spirit of Detroit Statue and engaged in a few moments of silent prayer. Many of the marchers carried repeal petitions that would place Public Act 4 on the November ballot. Organizers say they have collected 170,000 signatures, more than the nearly 162,000 needed to achieve their goal. Charles Brown, a city employee who works with Occupy Detroit, asked the crowd for volunteers to help verify petition signatures. A spokesman for Occupy Detroit, going by the name L. Bush, said he was concerned an emergency Manager in Detroit would disenfranchise voters and strip unions of their bargaining power. “Every political group that I know in Detroit is unilaterally against Public Act 4,” Bush said. “We were against it when it was the emergency financial manager and we’re against it now that it’s emergency manager and we will be against it in its next incarnation that they are coming up with even as we speak.” The new legislation Bush alluded to is an effort by Republican state Senators to pass a stop-gap bill in the event the petition drive is successful. Michigan Senate Bill 865 would modify Public Act 4 and set up a receivership transition board, potentially allowing the state to sidestep the referendum effort. That legislation is waiting on a vote from the state House of Representatives. Gov. Rick Snyder on Wednesday told HuffPost he would respect the referendum effort, but hinted he would also support the stop-gap emergency manager legislation in the Senate. “There’s a question though about a real challenge to, say, not having something on the emergency manager front could be very challenging for not just Detroit, but a number of communities given the state of affairs that we have,” Snyder said. “So I think it would be prudent in that circumstance to say what do we need to do in the interim until that vote is held to make sure we’re doing the right thing for the citizens of those communities and the citizens of Michigan.” Opponents of the emergency manager law are expected to march on the governor’s home in Superior Township on Monday as part of a Martin Luther King, Jr., Day rally. Simone Landon contributed to this report.

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Opposition To Emergency Managers Builds, Repeal Petition Nearing Signature Goal

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Woman Arrested After Punching Walmart Employee In The Face

December 26, 2011

People: we know holiday sales are great, but they’re not worth spending the night in jail. A New York woman was charged with two counts of second-degree assault after punching a 70-year old Walmart employee in the face. Jacquetta Simmons, 26, assaulted Grace Suozzi on Saturday night after the Walmart greeter asked to see her receipts, according to authorities. Simmons quickly fled the scene, but employees and customers chased her until she was surrounded. Not long after, police arrived and arrested her. Police reported that when they checked Simmons’ bags, she had receipts for all of the merchandise. WATCH:

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Herman Cain Releases ’9-9-9 The Movie’

November 28, 2011

“9-9-9.” It’s a slogan and tax plan that GOP presidential candidate Herman Cain has often turned to, even on strange, off-topic occasions . After straying away from this refrain over the past month, however, Cain’s campaign appears to be trying to get back on message with a new, animated explainer video reminding voters about his trademark idea for overhauling the tax system. “The federal tax code is an overgrown monster — but it’s not even a cool monster, It’s a dorky, mechanical monster held together with a bunch of tattered red tape and driven around by squirrelly bureaucrats,” the video’s narrator says. “What would happen if we scrapped all 82,000 pages of the current tax code and simplified things with Herman Cain’s 9-9-9 plan?” the narrator asks. “The economy would accelerate faster than Barack Obama on his way out of town. We would add $2 trillion to GDP and create 6 million jobs. Business investment would increase by a third. Wages would go up 10 percent. At the same time, federal revenues would go up 15 percent.” While the video is entertaining and well-made, it ignores some of the biggest criticisms of Cain’s plan, such as a review by the Tax Policy Center, which found that it would serve as a nearly 950 percent tax increase on some households making between $10,000 and $20,000 Cain’s campaign, once propelled to the top of the pack with the help of “9-9-9,” has taken knocks over the past month amid persistent sexual harassment allegations , which he has continually denied, and a number of high-profile verbal stumbles . He claimed over the weekend that some of his comments had been taken out of context but that they had nonetheless damaged his polling performance. Cain made a similar admission on Monday, but said that his supporters remained loyal despite the distractions. “Here’s the good news. We didn’t drop all the way down to sixth or seventh. We dropped to third” in most polls, he told Fox News. He says supporters “didn’t defect because of all the noise that was going on.” According to the latest polls , Cain is at third place in the GOP primary field, behind former Massachusetts governor Mitt Romney and former House speaker Newt Gingrich.

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Ron Ashkenas: Reorganizing? Think Again

October 27, 2011

If you ask managers to name their favorite sport, you’ll hear a wide variety of answers: Football, baseball, tennis… But what they won’t tell you is the one sport that all managers play the most: The Game of Reorganization. Managers love to reorganize at almost every level. Whether triggered by a leadership transition, a fundamental change in the business, an acquisition, or poor performance; lines, boxes, and people tend to move around. In fact it’s highly unusual to find an organization that has not shifted its structure in some way within the previous six months. But while managers love to engineer reorganizations, most managers (and their people) hate to be reorganized . Much like musical chairs , structural changes provoke anxiety, since people know that the “new and improved” design will often have fewer chairs (i.e., jobs ). More problematic is the fact that a functional organization is only partly determined by structure. Equally important is the web of relationships that people develop over time to get things done. Reorganizations disrupt those relationships, hindering productivity until connections can be rebuilt within the new structure. As one senior executive said to me, “Every time we reorganized, we lost at least a year of innovation.” Despite the downsides, managers will continue to reorganize, since it is one of the most available levers to solve problems . It also creates the appearance of decisive action and buys time until other actions can be taken. And of course they like playing the game. So before you pull the reorganization lever, it will be helpful to ask yourself two questions: What’s the problem you’re trying to solve? Before redrawing your organization chart, make sure you know why you’re doing it. Are you trying to create a sharper focus on customers? Do you want to reduce costs? Are you struggling with performance issues? Do you have too many direct reports to give them sufficient attention? Has the structure become overly complex such that accountability is diffused? Do your people need a wake-up call? These (and many more) might be good reasons to reorganize — but all too often managers leap into a reorganization without being clear about how it will make things better. And without clarifying that basic question, you can’t address the next one. Is reorganization the only possible solution? Reorganization might solve many problems — but it’s hardly ever the only solution. But because it takes little effort to redraw boxes and lines, it’s often the knee-jerk response. For example, the head of a large commercial organization wanted his people to become more focused on targeted customer segments as a way of improving revenue. To solve that problem, he divided up the resources from the various functions (sales, marketing, finance, product management, HR) and created a series of business units. A year later a different manager came in and decided that costs were too high — so she blew up the business units and re-consolidated the functions. In the end, neither manager succeeded because the disruptions and loss of key talent overshadowed any positive results. What’s striking with this case is that reorganization may not have been needed at all. The first manager could have changed incentives for the sales teams, created cross-functional segment teams, or refocused marketing efforts. The second manager could have reduced costs through a more rigorous performance management process, more stringent budget goals, or by asking business units to share certain services with each other. In other words, in many situations reorganization may not necessarily be needed — and may cost more than it’s worth. Given the popularity of the reorganization game, it’s always going to be a favorite part of the manager’s toolkit. And in many cases it may be an appropriate and effective action to take. But to avoid the downside of reorganizations, it’s important to determine what problem is being solved and whether there are less disruptive ways to do so. In your experience with reorganizations, when have they created value — and when have they destroyed it? Cross-posted from Harvard Business Online .

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Ron Ashkenas: Reorganizing? Think Again

October 27, 2011

If you ask managers to name their favorite sport, you’ll hear a wide variety of answers: Football, baseball, tennis… But what they won’t tell you is the one sport that all managers play the most: The Game of Reorganization. Managers love to reorganize at almost every level. Whether triggered by a leadership transition, a fundamental change in the business, an acquisition, or poor performance; lines, boxes, and people tend to move around. In fact it’s highly unusual to find an organization that has not shifted its structure in some way within the previous six months. But while managers love to engineer reorganizations, most managers (and their people) hate to be reorganized . Much like musical chairs , structural changes provoke anxiety, since people know that the “new and improved” design will often have fewer chairs (i.e., jobs ). More problematic is the fact that a functional organization is only partly determined by structure. Equally important is the web of relationships that people develop over time to get things done. Reorganizations disrupt those relationships, hindering productivity until connections can be rebuilt within the new structure. As one senior executive said to me, “Every time we reorganized, we lost at least a year of innovation.” Despite the downsides, managers will continue to reorganize, since it is one of the most available levers to solve problems . It also creates the appearance of decisive action and buys time until other actions can be taken. And of course they like playing the game. So before you pull the reorganization lever, it will be helpful to ask yourself two questions: What’s the problem you’re trying to solve? Before redrawing your organization chart, make sure you know why you’re doing it. Are you trying to create a sharper focus on customers? Do you want to reduce costs? Are you struggling with performance issues? Do you have too many direct reports to give them sufficient attention? Has the structure become overly complex such that accountability is diffused? Do your people need a wake-up call? These (and many more) might be good reasons to reorganize — but all too often managers leap into a reorganization without being clear about how it will make things better. And without clarifying that basic question, you can’t address the next one. Is reorganization the only possible solution? Reorganization might solve many problems — but it’s hardly ever the only solution. But because it takes little effort to redraw boxes and lines, it’s often the knee-jerk response. For example, the head of a large commercial organization wanted his people to become more focused on targeted customer segments as a way of improving revenue. To solve that problem, he divided up the resources from the various functions (sales, marketing, finance, product management, HR) and created a series of business units. A year later a different manager came in and decided that costs were too high — so she blew up the business units and re-consolidated the functions. In the end, neither manager succeeded because the disruptions and loss of key talent overshadowed any positive results. What’s striking with this case is that reorganization may not have been needed at all. The first manager could have changed incentives for the sales teams, created cross-functional segment teams, or refocused marketing efforts. The second manager could have reduced costs through a more rigorous performance management process, more stringent budget goals, or by asking business units to share certain services with each other. In other words, in many situations reorganization may not necessarily be needed — and may cost more than it’s worth. Given the popularity of the reorganization game, it’s always going to be a favorite part of the manager’s toolkit. And in many cases it may be an appropriate and effective action to take. But to avoid the downside of reorganizations, it’s important to determine what problem is being solved and whether there are less disruptive ways to do so. In your experience with reorganizations, when have they created value — and when have they destroyed it? Cross-posted from Harvard Business Online .

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WATCH: BofA Branch Reportedly Refuses To Allow Protesters To Close Accounts

October 16, 2011

Should people who are tired of paying extra fees be allowed to close their bank accounts in protest? One Bank of America official reportedly doesn’t think so. According to Addicting Info , two women involved with the Occupy Santa Cruz movement in California walked into a Bank of America branch earlier this week and attempted to close their bank accounts. In response, the bank manager threatened to lock the doors and call the police on them. Her reasoning? You can’t be a customer and a protester at the same time, the manager said. Central Coast News contacted Bank of America about the incident and received a response from the company: Central Coast News has contacted Bank of America to get their side of the story. In an email Colleen Haggerty with Bank of America released this statement to Central Coast News. “It is our responsibility to ensure a safe environment for customers to conduct financial transactions. So, due to the disruptive nature of protests lately and the potential for safety or security issues, we do not allow protestors inside of our banking centers. If a customer who is participating in a protest wishes to conduct bank business, including close an account, we ask them to come back when they are not protesting or they may also conduct their bank business at a nearby branch away from protest activities.” Haggerty also said that Bank of Ameica, “respect everyone’s ability to exercise their first amendment rights, however we also have to balance safety and business needs for all customers.” According to Central Coast News , “The women said that they would return to Bank of America the next day, sans signs, and close their accounts taking their ‘money away from the banking elite and into a local credit union.’” WATCH VIDEO OF THE ENCOUNTER ABOVE

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Stocks Plunge As More Signs Of Economic Weakness Emerge

August 18, 2011

NEW YORK — More signs of economic weakness triggered a global sell-off in stocks Thursday. The Dow Jones industrial average fell more than 400 points in a return to the wild swings in the market last week. In the United States, there were reports that more people joined the unemployment line last week than a week earlier, gasoline prices contributed to higher inflation and manufacturing slowed in the mid-Atlantic. In Europe, bank stocks slid on worries about the region’s debt problems. In Asia, Japan’s exports fell for the fifth straight month. The U.S. and European economies are “dangerously close to recession,” Morgan Stanley economists wrote in a report. “It won’t take much in the form of additional shocks to tip the balance.” The Dow Jones industrial average was down 409 points, or 3.6 percent, to 11,001 at noon. The Dow was down by as much as 528 points about a half-hour into trading. The Standard & Poor’s 500 index fell 46 points, or 3.9 percent, to 1,147. The Nasdaq composite fell 105, or 4.2 percent, to 2,406. Last week was one of the wildest in Wall Street history. The Dow moved more than 400 points on four straight days for the first time. But stocks had been relatively stable this week because investors were calmed by strong earnings reports. The Dow had fallen 76 points Tuesday and risen four points Wednesday – the first time this month that the average rose or fell by less than 100 points on two straight days. That ended Thursday. And with stocks down big, money flooded into U.S. Treasurys and gold, both considered safer investments. The yield on the 10-year Treasury note briefly fell below 2 percent for the first time, before recovering to 2.07 percent. Low yields show that investors are willing to accept a lower return on their money in exchange for safety. Demand for government debt has stayed high, and yields low, even after Standard & Poor’s stripped the United States of its top credit rating. Gold rose $26.30 per ounce to $1,820.30 after earlier climbing to a record of $1,829.70. That’s up from $1,400 at the start of the year and more than double the price several years ago. The price of gold has set one record after another, with some investors looking for stability and others simply looking to cash in. The Morgan Stanley economists cut their forecast for growth in developed economies this year to 1.5 percent from 1.9 percent. Over the past 20 years, growth for developed economies has been closer to 2.3 percent. Among the disappointing U.S. economic news: _ 408,000 people applied for unemployment benefits last week, up from 399,000 the week before and the most in four weeks. _ Inflation at the consumer level rose 0.5 percent in July, the highest since March. It had fallen 0.2 percent in June. _ Manufacturing has sharply weakened in the Philadelphia region, according to a report from the Federal Reserve. Manufacturing had been one of the economy’s strongest industries since the recession ended in 2009, but its growth has slowed this year. _ The National Association of Realtors said the number of people who bought previously occupied homes dropped in July for the third time in four months. The fresh signs of economic weakness underscore the challenge for the Federal Reserve as it tries to help the economy with prices rising and the job market weak, said Jack Ablin, chief investment officer at Harris Private Bank. “Every time the economy got the sniffles, we had the Federal Reserve standing by with tissues,” Ablin said. “This time around, I think the box is empty, and we’re going to have to go through this alone. I think we can do it. It’s just not something we’re accustomed to.” The Fed has already said it will keep short-term interest rates super-low into 2013. But the risk of further stoking inflation may keep it from taking additional steps, such as an additional round of massive bond-buying. In the meantime, worries about European debt hang over the markets. A default by any country would hurt the European banks that hold European government bonds, plus American banks that have loans to their European counterparts. “Europe is the big question in the market, and nobody really knows what happens from here,” said Scott Brown, chief economist at Raymond James. On Thursday, stocks in industries that depend on a growing economy fell the most. Industrial stocks in the S&P 500 fell 5.4 percent, technology stocks 5.1 percent and financial stocks 4.6 percent. Crude oil fell $4.11 per barrel to $83.47 on worries that a weaker global economy will mean less demand. Falling prices for crude oil should work their way to the gas pump, though, and bring household budgets at least some relief. Asian markets started Thursday’s drop. Japan’s Nikkei 225 index fell 1.3 percent. South Korea’s Kospi stock index fell 1.7 percent, and India’s Sensex index fell 2.2 percent. The declines extended to Europe. In London, the FTSE 100 index fell 4.5 percent after a report showed that growth in British retail sales slowed more than economists expected last month. Germany’s DAX index fell 6.5 percent. ___ AP Business Writer David K. Randall contributed to this report.

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Who’s Really Checking In On Foursquare?

August 18, 2011

Who’s checking in to location-based services like Foursquare and Gowalla? It’s not who you think. Where are consumers going to look for deals? It’s not just your website. And what tech toys are entrepreneurs planning to spend money on this year? Here’s a closer look at some of the latest small-business surveys. Check Her In Mobile Dependence Day, a new study from ExactTarget , reports that 28 percent of smartphone owners (12 percent of the overall U.S. online population) have used their phone to “check in” at least once to location-based services like Foursquare , Gowalla and Facebook Places . But if you envision the typical check-inner as a 20-something male hipster, think again. ExactTarget found women are more likely than men to use check-in services (37 percent versus 21 percent). And women ages 35 to 54 are even more likely to check in (38 percent have done so, compared to just 13 percent of men in that group). What accounts for the difference? Women, particularly those in the 35-54 demo, are the segment most interested in deals and discounts, and likely view location-based services as a quick way to grab deals. About Face(book) Speaking of deals, Facebook business pages are becoming a key way that consumers learn about deals and special offers. According to new research from Compete, 25 percent of consumers say they visit an official Facebook page for a retailer or product at least once a month . More than half of these respondents (56 percent) say the main reason they go to retailers’ Facebook pages is to stay current on sales and promotions. (In fact, the survey found that Apple’s iTunes Facebook page actually had more visits than the actual iTunes store.) By comparison, showing that they “like” a company, or connecting with the company, was not high on the list of reasons for visiting a Facebook page — both those reasons were cited by about 14 percent of respondents. Is Facebook effective? More than 20 percent of consumers say Facebook pages have been “influential” or “extremely influential” when making a purchasing decision. Speaking as a fervent deal-seeker, I know they’ve influenced me. IT Issues Are small businesses ready to invest in IT? Yes and no. The latest CDW IT Monitor describes IT decision-makers as “cautiously optimistic,” but reports only about one-fourth (24 percent) of them plan to increase spending on IT solutions in the next six months. Where will their money go? Half will be spending on software, and 44 percent on hardware. In terms of IT needs, virtualization, security and cloud computing are top areas of interest. Nearly half (48 percent) of those surveyed say security is a greater concern than in the past two years, with internal threats seen as the biggest worry. Of those threats, the number-one concern was social networks, followed by mobile devices. Rieva Lesonsky is CEO of GrowBiz Media , a media company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva and visit her blog at SmallBizDaily.com . Visit her website SmallBizTrendCast to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.

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Federal Agencies Warned To Prepare For More Cuts

August 18, 2011

Federal agency and department leaders should plan for a 5 percent reduction in discretionary spending in fiscal year 2013, and prepare for more cuts — at least 10 percent — according to a White House Office of Management and Budget memo issued yesterday. At the same time, agencies are being urged to look for opportunities to enhance economic growth. Unless agencies have been given explicit direction to the contrary by OMB, overall agency funding requests for fiscal year 2013 should be “at least 5 percent below your 2011 enacted discretionary appropriation,” OMB Director Jacob Lew wrote.

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Foreign Students Protest Working Conditions At Hershey Warehouse

August 18, 2011

HERSHEY, Pa. — Chocolate maker Hershey Co. is facing questions about the working conditions of foreign students in warehouse jobs. About 150 people picketed Wednesday outside a distribution center at a protest organized by the National Guestworker Alliance. Students who participated say their program was pitched as a way to see America. But the students say they’re isolated and left with little money after rent for company housing is deducted from their paychecks. One joked with The Patriot-News of Harrisburg that he had hoped to improve his language skills but that English isn’t among the five languages spoken in the warehouse. Hershey officials say the warehouse is run by a subcontractor and is expected to treat workers fairly. A spokeswoman for the subcontractor says another company handles its guest worker program.

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Wall Street Bankers ‘Answer Call’ Of New Careers

August 17, 2011

(Reuters) – In his 23 years as a banker, Adam Greene trotted the globe, closing billions of dollars’ worth of deals for some of the world’s biggest banks, and starting his own advisory firm. Then, in 2006, he traded in his BlackBerry and fancy suits for a Bible and clerical collar.

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WATCH: Starbucks CEO Discusses His Boycott On Campaign Contributions

August 17, 2011

Starbucks CEO Howard Schultz spoke to CNN Money on Tuesday about what he hopes to accomplish with his recently announced boycott on political contributions. As reported by The Huffington Post’s Dan Froomkin , Schultz is calling on Americans and fellow business leaders to halt all campaign donations until politicians stop squabbling and demonstrate a capacity to work toward compromise on long-term fiscal issues. New York Times columnist Joe Nocera recently wrote in an op-ed : In effect, Schultz thinks the country should go on strike against its politicians. “The fundamental problem,” he said, “is that the lens through which Congress approaches issues is re-election. The lifeblood of their re-election campaigns is political contributions.” The message from the Starbucks CEO comes on the heels of the protracted debate over raising the nation’s debt ceiling. He reiterated the sentiment on Tuesday. “All it seems people are interested in is re-election,” Schultz explained. “And that re-election — the lifeblood of it is fundraising.” He urged employers to “grow their companies, start hiring and stop waiting for Washington.” He added, “We can spread a felling of confidence in America.” WATCH (via CNN): RELATED VIDEO:

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HuffPost TV: WATCH: Zach Carter Discusses Controversial Panama Trade Deal With Dylan Ratigan

August 17, 2011

HuffPost’s Zach Carter appeared on MSNBC’s ‘The Dylan Ratigan Show’ to discuss the controversial trade agreement between the U.S. and Panama. Carter recently reported that the deal could provide wealthy Americans with a tax loophole by allowing them to “hide” their money in Panama-based companies and banks. “It’s just very easy to set up an offshore corporation and bank account in Panama,” he said. “It only costs about $2000 and it takes about three or four days for that process to be complete.” Criticizing the trade agreement as irresponsible, he said, “Panama’s got some of the most secretive and restrictive bank secrecy laws in the world and … a very long history of refusing to cooperate with tax authorities in the U.S. so it’s very perplexing that you’d want to even engage with this country in a trade deal to begin with.” WATCH (via MSNBC ): Visit msnbc.com for breaking news , world news , and news about the economy

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Amy Chan: Defined by Ego

August 16, 2011

My whole life I’ve defined myself through the roles I’ve had — the academic, the girlfriend, the party girl… As long as I had a role to fit within, I would have an understanding of my sense of “self”. The role that felt the most empowering of all was the fast paced, over-achiever. The woman climbing the corporate ladder, with a fancy title and a high salary that afforded nice material things. That role gave me a lot of validation and was a large part of my identity. That is, until recently. A month ago the company I worked for told me that they were downsizing and relocating, and within two weeks, my title and salary would be gone. Little did I know my sense of identity would go right along with it, only to be replaced by a conflicted relationship with my ego. I spent the last 15 years of my life focused on achieving the things that society defined as successful. Thus, not having that role to hide behind has been a challenge to my sense of self. However, I am learning that I’m no less or more of a person because of “what I do”, and that my job does not equate to “who I am”. I realize that true success stretches far beyond the professional realm. Your values, the way you treat others and make them feel, your contribution to society, your relationships — these are all factors that define a person. Here is a quote that sums it up nicely: “To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty; to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded.” -Ralph Waldo Emerson The next chapter for me is about personal growth. Sure, I’ll probably make another move in my career, but I’m going to stop having that role become me and define me. While it’s definitely going to be an evolutionary process, I’m excited for the journey.

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Low Home Prices Mean It’s Cheaper To Buy Than To Rent In Many Cities

August 16, 2011

As the national real estate slump deepens, home prices in many cities have crossed a worrisome milestone. It’s cheaper to buy a home than to rent one in 74 percent of the country’s largest 50 cities, according to the real estate site Trulia — findings that confirm the national epidemic of depressed housing prices remains in full swing. Trulia’s research, which compared the median list price and median rent for two-bedroom apartments, condos and townhomes in America’s 50 largest cities, found that renting is more expensive than buying in dozens of markets, particularly in Miami and Las Vegas, as well as Mesa, New Mexico, and Arlington, Texas. In a minority of cities, including New York, Seattle, Kansas City and San Francisco, it’s still more expensive to buy than to rent. A spate of recent studies have shown that home prices remain low throughout the U.S. Earlier this month, the real-estate company Zillow reported that average prices were down 6.2 percent from a year before , and aren’t expected to touch bottom until 2012. Data from CoreLogic and Case-Shiller showed similar declines between 2010 and 2011. Low home prices are seen as delaying a recovery in the housing market, and by extension a turnaround in the broader national economy. When home values are low, homeowner wealth sinks accordingly, and many consumers end up spending less money than they might in a more prosperous market. Meanwhile, prospective homebuyers are more likely to delay a purchase if they believe prices will continue to fall. On Tuesday, figures from the Commerce Department showed that construction on new homes fell 1.5 percent in July — not as sharp a decline as economists had expected, but still an indication that the housing sector is far from rehabilitated. A number of forces stand in the way of a housing recovery, including high unemployment, falling wages and a growing inclination among homeowners to save for retirement, rather than try to upgrade to a better house. Last month, Morgan Stanley released data showing that the U.S. home-ownership rate is only 59.7 percent if delinquent borrowers are excluded from the count — an all-time low, and one that may herald a nationwide shift toward becoming a “rentership society” instead of an ownership society, a Morgan Stanley strategist said at the time.

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Dan Solin: A Walk on the Wild Side at CNBC

August 16, 2011

On August 10, 2011, after a tumultuous day on Wall Street, I appeared on CNBC , along with another guest, Natalie Pace . According to her web site, Ms. Pace’s vision is “to spread wealth by sharing wisdom and to add a splash of green (and pink) to Wall Street.” Her mission is to “demystify the markets” and “…make investing as much fun as shopping.” This had potential. You could feel the excitement in the CNBC studio, even from the satellite feed. There was a lot of ground to cover in under five minutes. The volatility of the markets had obviously rattled investors. We were there to make sense of it all. Ms. Pace was asked to “please be a voice of wisdom and reason right now for us. We need it.” Here was her advice: 1. Buy and hold doesn’t work; 2. “America does work. Companies are doing well.” 3. Add “hot industries” to your portfolio 4. Look at “modern portfolio theory which is as easy as a pie chart” and rebalance annually so you “capture any gains you have.” Sound advice? Buy and hold is not dead. Proponents of the “buy and hold is dead” theory rely on the flat performance of the S&P 500 index over the last decade. This makes no sense. I know of no competent advisor who tells her clients to invest 100% of their portfolios in an S&P 500 fund. Investors in a globally diversified portfolio of three index funds (like those I recommended in 2006 in the Smartest Investment Book You’ll Ever Read ) had a fine decade. They invested in a domestic stock index fund that tracked the Wilshire 5000 (not the S&P 500), an international stock index fund and a domestic bond index fund. If they were in a typical asset allocation of 60% stocks and 40% bonds, they had an annualized rate of return of approximately 6% for the past decade. Allan Roth totally demolished the myth of the “lost decade” in this excellent blog . America does “work”, but that won’t help investors Maybe U.S. based companies are doing “well” (whatever that means), but we live in a global economy. Limiting investments to U.S. based companies deprives investors of opportunities in other countries and reduces their ability to diversify risk. Investors should have a globally diversified portfolio. Adding “hot” industries to your portfolio is bad advice Ms. Pace did not offer examples of industries she believes are “hot.” There is no evidence anyone has the expertise to predict which industries will outperform in the future. Ms. Pace’s “hot industry” picks (whatever they may be) may turn out to be good or bad, but relying on them is gambling and not investing. Her crystal ball was cloudy in January, 2011. She saw “a dismal January and February” (the S&P gained 41 points), a “spring rally” beginning in March, ending with the NASDAQ increasing in value by 20% year end and the DJIA increasing by 5% . These predictions may end up being accurate, but it will be a long haul. The NASDAQ is down 7.61% year-to-date and the DJIA has lost 5.16%. Relying on the predictions of Ms. Pace or any market “guru” is speculating. Confusion over Modern Portfolio Theory and Rebalancing Modern portfolio theory shows investors how to maximize expected return for a given level of market risk. It doesn’t “work” to protect investors exposed to stock market risk against losses in all market conditions. Nor does annual rebalancing permit you to “capture any gains you may have.” The purpose of rebalancing is to ensure that a portfolio continues to reflect the level of risk an investor has the capacity to withstand. The combination of MPT and rebalancing would not have “…kept your gains this year before this big market downturn” as Ms. Pace stated. All of the portfolios offered by Index Funds Advisors (with whom I am affiliated) follow MPT. In fact, Harry Markowitz, who is widely known as the father of MPT, and a 1990 Nobel Prize Winner, is an academic consultant to IFA. IFA regularly rebalances the portfolios it manages, which aggregate approximately $1.5 billion of assets. All of IFA’s portfolios, from very conservative to aggressive, were impacted by the recent market declines. Sound advice — Lost in the hype As I stated on CNBC, you should be in a portfolio with a suitable asset allocation. If you have less than a 3 year time horizon, you should have no stock market exposure. If you have a three-fifteen year time horizon, you should ignore the financial news and the current market volatility. No “expert” can “make sense” of the market, predict the future direction of the market, pick hot stocks, hot industries”, or funds that will outperform. Stick to your guns. Invest in a risk-appropriate, globally diversified portfolio of low management fee index funds. As one pundit said: Don’t just stand there, do nothing!” Dan Solin is a Senior Vice President of Index Funds Advisors (ifa.com). He is the author of the New York Times best sellers The Smartest Investment Book You’ll Ever Read , The Smartest 401(k) Book You’ll Ever Read , and The Smartest Retirement Book You’ll Ever Read . His new book, The Smartest Portfolio You’ll Ever Own , will be released in September, 2011. The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein. Furthermore, the information on this blog should not be construed as an offer of advisory services. Please note that the author does not recommend specific securities nor is he responsible for comments made by persons posting on this blog.

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Jared Bernstein: Rick Perry, Ben Bernanke, and the Middle Class

August 16, 2011

Just when you thought our politics couldn’t get any weirder, I think Texas Governor Rick Perry just threatened to beat up Ben Bernanke for suggesting another round of quantitative easing. Responding to a question about the Federal Reserve at a campaign event in Cedar Rapids, Perry said: “If this guy prints more money between now and the election, I don’t know what y’all would do to him in Iowa, but we would treat him pretty ugly down in Texas. I wish I was making this stuff up, folks… I really do… but I’m not. (Does this mean the Fed research team needs to add a new variable into their impact models?… i.e., the estimate of the impact of monetary easing on long-term rates, conditional on the Chairman getting a fat lip.) Perhaps Gov. Perry is just looking over his shoulder at Ron Paul, who’s always bashing the Fed (and was a close second to Rep. Bachmann in the Iowa poll), but let’s take a look at the economics in play here. Quantitative easing (QE) is when the Fed “prints money” — really just bytes in Fed and Treasury electronic bank accounts — to buy longer term bonds, either Treasuries or mortgage bonds with the goal of lowering interest rates and stimulating more economic activity. They’ve done two rounds so far and estimates suggest they lowered long term interest rates by somewhere between 60 basis points (0.60 of a percentage point) to more than 1%. (Scholars of intermediate macro: they’re pushing out the LM curve!) Perry went on to complain about “devaluing the dollar in your pocket” based on the notion that if you’re printing money, you’re creating inflation. And as I and others — most notably Ken Rogoff — have argued recently, that would help right now. First off, faster inflation lowers the real interest rate — that’s the nominal rate minus inflation. So if a business is thinking of building a new factory, and the interest rate on the loan it needs is 4% and inflation is 3%, then the real rate faced by the borrower is 1%. That’s especially germane right now with corporations sitting on fat cash reserves. A little more inflation in the system could nudge them off of the sidelines. More inflation also speeds up the ongoing deleveraging cycle by eroding the real value of households’ debt burdens. That said, a commenter the other day raised a good question about this: how can I, as someone who actively worries about real wage losses, advocate higher inflation, which all else equal, means lower real wages? It’s the “all else equal” part — lower real rates and more deleveraging means faster growth and lower unemployment, which itself should help boost job and wage growth. Here’s the punchline of all this — and be clear that I’m not talking about very high inflation, which hurts everyone. I have no idea if this is where Gov. Perry is coming from, but what’s really behind conservatives’ view on this issue is that the wealthy get hurt a lot more by inflation than by unemployment, and visa-versa for the middle class. (Remember, I’m talking 2-4% inflation here, nothing higher.) For those living off of capital (versus labor) income, inflation erodes their assets, their wealth, their capital. So lower real interest rates, faster growth, lower unemployment ain’t what gets them out of bed in the morning. That’s also why the editorial page of the WSJ, for example, permanently campaigns against anything that would “weaken” the dollar. Why just last night, I was on the Kudlow show arguing against someone who wanted us back on a the gold standard (!!), the natural conclusion of sentiments like Gov Perry’s, and a fine way to cut the Fed off at the knees and ensure deflation at a time like this. And, of course, the other “punch”line: Ben, you might want to let things settle down a bit before you mosey on down to Texas. This post originally appeared at Jared Bernstein’s On The Economy blog.

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The Next Berkshire Hathaway?

August 16, 2011

In a four-page letter, Christopher P. Mittleman, the chief investment officer at a small New York money manager, likens the embattled hedge fund billionaire Philip A. Falcone to Warren E. Buffett.

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Windows Phone Head Quits Microsoft

August 8, 2011

Charlie Kindel, one of the most public faces of Microsoft’s Windows Phone group, has quit Microsoft after 21 years to start his own company.

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SFOs planning to Increase AI allocations, says report – HedgeWeek

June 17, 2011

SFOs planning to Increase AI allocations, says report HedgeWeek Nearly 90 per cent of single family offices (SFO) are planning to place additional money in hedge funds this year, according to a new report published by The Rothstein Kass Family Office Group, a division of global professional services firm Rothstein … SFOs To Raise Hedge Fund, PE Exposure As Mean Assets Rise – Rothstein Kass Report Wealth Briefing (subscription) all 2 news articles »

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National Virtualization Solutions Provider, UltraLevel, Hires 30-Year Veteran to Lead Rapidly Expanding Indiana Market

June 2, 2011

UltraLevel Appoints Rick Wells as Regional Sales Manager, Indiana While on Track for Triple Digit Growth in the Region

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Family Office Exchange is betting that RIAs and the ultra-affluent can’t get … – RIABiz

May 31, 2011

Family Office Exchange is betting that RIAs and the ultra-affluent can’t get … RIABiz This is the story of Family Office Exchange ramping up its efforts in response. Impervious to the gravitational pull of a down economy, the family office business keeps plowing ahead and one big Chicago-based consultancy is planning its own aggressive … and more »

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Visalia Convention Center Hotel Promotes Groover to General Manager

May 23, 2011

New Manager Familiar to Local Staff & Guests and Opens Opportunity for DOSM Role

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Seasoned Veteran Returns to Run Chicago Medical District Hotel

May 23, 2011

General Manager ‘Returns Home’ to New Chicago Position

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Fidelity National Title Appoints Dan Wallace as Florida Major Accounts Manager

May 12, 2011

MAITLAND, FL–(Marketwire – May 12, 2011) – Fidelity National Title announced that Dan Wallace has been appointed as Vice President, Florida State Manager, Major Accounts Division. Dan will be responsible for the development and maintenance of business between builders, developers, brokers, lenders, asset managers, non-agent Attorneys, CPAs and Financial Planners with Fidelity National Title across the entire state of Florida.

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Former Florida Transportation Official Joins Parsons

May 10, 2011

PASADENA, CA–(Marketwire – May 10, 2011) – Parsons is pleased to announce that Kevin J. Thibault has joined the firm as Vice President and Market Development Manager for state transportation programs in the United States. In this role, he will be responsible for developing Parsons’ relationships in strategic markets as well as other multimodal transportation initiatives.

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Technology Industry Pioneer David Yen to Lead Cisco Unified Computing and Nexus Server Access Switching Business

May 10, 2011

Experienced Sun Microsystems Engineering Leader and Former Juniper Networks Executive to Become General Manager of Cisco Server Access and Virtualization Technology Group

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Ron Ashkenas: Every Manager Is a Risk Manager

May 5, 2011

An MBA student once asked me to give her a simple explanation of the “risk management function.” After a few minutes of fumbling, I told her that risk management is the process of identifying, prioritizing, and mitigating the impact of unforeseen (and usually negative) events. In other words, it’s a form of proactive contingency planning — either to completely avoid difficult situations, or prepare for them so that any undesirable consequences are lessened. Her question got me thinking about who is actually responsible for managing risk in an organization. There are many types of risk, and the official risk management function usually only addresses the most critical ones . For example, in a bank, risk management concentrates on financial risk; in a hospital , the focus is on patient and legal risk; in a manufacturing firm, the concern might be product or environmental liability; and in a utility the priority is outages. Since these “big” risks are either integral to conducting business or threaten business continuity, it’s appropriate that they receive special attention and resources. But on a day-to-day basis, managers face many other types of risk that are less visible and therefore receive less attention. But these risks also need to be managed — and if you’re in a position of leadership, the act of managing them is probably up to you. Here are a few of those less obvious risks that come to mind: Project Risk : From the time a project is launched there are many factors — or risks — that might cause the project to be over budget, late, or unsuccessful in some other way. As a project leader you need to continually think through the risks that might endanger a project, focusing on how to get around them or limit their impact. Reputational Risk : Companies derive great value from their reputations both at a brand level and in terms of overall image, but reputations can be easily damaged. Take for example the reputational damage done to Goldman Sachs last year when a single manager arrogantly defended business decisions widely considered antithetical to the firm’s stated concern for its customers. Similarly, managerial inattention to quality standards severely harmed J&J’s reputation for product safety. As a manager you need to be mindful of the risks to your firm’s reputation that stem from your actions. Customer Risk : Customers, both internal and external, are the lifeblood of an organization. If they don’t want your product, service, or information, then you’re out of business. Therefore you have a big stake in your customers’ success and need to be aware of the risks that they face. This means doing more than just providing what’s asked for — but proactively looking for other ways to add value. There are undoubtedly many other types of risk that every leader needs to manage — staffing or skill gap risks (what happens if we lose some key people?); budgetary risks (how do we get our work done if the budget is cut?); supplier risks (how do I cover a shortage of key materials?); and many more. The often-unrecognized part of the manager’s job is to identify these risks and prepare for them should they occur. And that goes for unanticipated positive developments as well, for example how to cope with a sudden surge in orders. Yet at the same time, one of the recurring themes for managers these days is the need to learn how to take risks, which may seem contradictory to the notion of managing them. But in many ways the thought processes for each are the same. To take risks effectively you need to anticipate the possible impacts of your actions, and then make a conscious decision about whether to go forward or not, or to go forward in a way that will reduce negative consequences. Perhaps one way of learning how to take risks is to be more conscious about the built-in risk management aspects of your job. If you improve your ability to identify and mitigate the ongoing business risks, it should give you more confidence in dealing with the personal risks required for innovation and working outside the box. To what extent do you consider yourself a risk manager? Cross-posted from Harvard Business Online

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Lois Boyd Appointed Leader of Hertz Equipment Rental Corporation

April 26, 2011

Company Names Advantage VP of Operations/Administration, Gary Fulena, Acting General Manager, Advantage Rent-a-Car

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Semantic Advertising Leader Peer39 Expands Executive and Sales Teams

April 25, 2011

New Vice President of Finance From DoubleVerify, Senior Director of Agency Sales From MediaMath, and Business Development Manager From PointRoll Join New York Headquarters

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Marty Zwilling: Technology Attacks the Venerable Business Card

April 21, 2011

In a second, with Google, I can find a phone number that was assigned to you ten years ago, but it takes me an hour to find your phone number on that business card you gave me last week. That’s just wrong. We need instant access to the most important of all resources, current contact info. Too many of us have piles of business cards scattered around the office and home, as well as additional contacts on your cell phone, PDA, Outlook, LinkedIn, and Facebook. The result is we can’t find that key name and phone number quickly when we really need them. The solution is simple to define. What we all need is a digital tool that can extract data from business cards, as well as sync it with your cell phone, your email, and the social networks you use. It needs to have great search and display capabilities as well as spreadsheet-like sorting so you can look at the information in various ways. Finally, we want it cheap (of course). My old Rolodex for 100 business cards doesn’t do the job any more. So I’ve been scouting around for something better, looking at the pluses and minuses. There are a wealth of alternatives, but no universal solutions: Bump . Here’s the latest technology. A new smart phone app that allows users to simply tap their smart phones together, and with the right setup, they will exchange contact info. This is great and it’s free! Of course, you both need to have compatible smart phones with the software already downloaded. CardScan Personal . Here is the old standby low-end hardware-based solution, a simple business card scanner for $150, with software to synchronize the data with Outlook, Windows mobile devices and smartphones. That doesn’t address social networks and other lists you may have. The scan hardware here is required for all software solutions. Sage ACT! If you prefer the software and data be all on your own computer for security and privacy, ACT! has been the standard for businesses and individuals for over 20 years (base $200). The cost goes up if you want to synchronize with Outlook and your PDA, but most of the features you might be looking for are available. Salesforce.com . In business, contact information management is a key part of customer relationship management (CRM). Salesforce.com is the most popular online service offering, meaning no software to install, and accessible from any computer. For individual entrepreneurs, it’s a high-end alternative (entry $5+/month), and it’s definitely a candidate for your business sales force. Basic sync functions are available. Shareware. I found dozens of software packages available on the Internet for free download, or a nominal price. Several of these have good reviews, including PIMEX, Diasho, Enhilex, and Advanced Contact Manager. Yet my experience is that shareware software is usually worth what you pay for it. Commercial software. There are hundreds of other alternatives and add-ons out there, like Quickbooks Customer Manager, Personal Information Manager, Beyond Contacts, and Goldmine. They range in price from $150 to over $4000, but check each for the features important to you. Social networks have added additional layer of complexity to this challenge. LinkedIn supports the export of connection contact information to Outlook and Gmail, with no special software required. Facebook, however, does not provide this interface, and has specifically prohibited applications from being offered to solve the problem. They consider such data proprietary. Even email is a problem. You need to capture contact details beyond the email address from email contents, including signature blocks. I did find a package named Copy2Contact , which can save you lots of cutting and pasting. Now if everyone included contact information in every email, I wouldn’t need to bump into you periodically to stay current.

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Akhtar Badshah: Creative Capitalism, a CEO’s Viewpoint

April 14, 2011

I had a pleasure of moderating a discussion with Arunas A. Chesonis, the Chairman, President and Chief Executive Officer of PAETEC, founded in 1998. I sought to understand why he — as a CEO and business leader — invests in the city of Rochester, New York, and why he has developed a culture of investing back into the community at PAETEC. Chesonis, an MIT graduate and an entrepreneur, is a visionary who thinks outside of the box regarding how to build a business and how to build a community around him. He told the audience at the BCLC Corporate Community Investment 2011 conference in Philadelphia that one of his company’s four guiding principles is “caring culture,” a concept in PAETEC’s objectives and a metric for performance evaluation. Chesonis said: “If you have two managers and both are very good, but one is involved in the community, he’ll drive more business and will build more relationships within the company, outside the company, and with clients. That’s the manager who will get the promotion. People like that get to move up in the organization because they’re the ones who do business better.” Community involvement at the individual employee level, he said, not only helps managers excel — their success helps to grow the business. In our talk, he explained that PAETEC also uses the same criteria when considering procurement bids from his partners. With price being more or less equal, PAETEC wants to know how engaged potential business partners are in investing back in the community. He wants to know how they’re investing in communities, how they’re giving back, how they’re making the country do better. For Chesonis, corporate social responsibility (CSR) is a strategic weapon. He said that if you’re not doing CSR, if you’re not engaged in CSR, then you’re not going to be as successful, you’re not going to optimize your stock price, you’re not going to optimize your performance, and you’re not truly, fully engaged with all your team members. In short, it’s better business to be engaged in CSR. So how does Chesonis make sure engagement is constant and thorough? First, he sees engagement in CSR as building an extended family among a range of stakeholders (even the name of the company stems from the first letter of the names of the Chesonis family). He said he came to Philadelphia for the BCLC conference to lend support to those who are in the CSR business. “Maybe,” he said, “I’ll give you some tricks that we’ve used to trick people within our ecosystem into seeing why this is important for all of us.” Second, engagement in CSR work should be decentralized. At PAETEC, Chesonis lets his community relations managers decide where to focus the company’s CSR efforts instead of dictating what to do with a top-down approach. “I feel like I’m the match.com for CSR at my company. It’s my responsibility to connect my employees with our community,” he said and noted that he wants connections to grow organically between his community relations managers and the local organizations. Building your own community is important, and connecting your community to other communities in common goals is the next step in building capacity. Chesonis asked, “Wouldn’t it be great if there were a BCLC in all communities?” Organizations that convene and connect, he said, are needed at the local chamber level so that local corporate citizens and community leaders can come together, learn, and expand their capacity. Having a network of local BCLC-like organizations, he said, would encourage public-private partnerships. Chesonis said: “It’s hard for SMEs to travel to national conferences and major events like this — that makes local collaboration level so much more needed. People could develop their own approaches at the local levels and decide what fits best with their communities and businesses.” While his community relations managers guide the company’s strategy, the Chesonis family is building its own legacy in environment and energy research — the need for intense research in these fields is astounding, he said. With the belief that researchers should be allowed time to fail and experiment to find the best, most innovative solutions, Arunas and his family are funding long-term research spots for post-grad MIT students. Most Nobel Prize winners in science, he noted, made their discoveries at the age of 28: “We need to be funding young, energetic people who have time and inspiration to immerse themselves in their research 100 hours per week.” He ended the thought that corporate responsibility should be a strategic priority for all companies. “Don’t be a ‘dumb philanthropist’ and just write checks,” he said. “Work on the strategic piece-what’s good for a company can be good for a community and vice versa.” For those in business still sitting on the fence, this is a good piece of advice.

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Payless ShoeSource Names Andrew Meyer Senior Vice President and General Merchandise Manager of Women’s and Accessories Collections

April 12, 2011

TOPEKA, KS–(Marketwire – April 12, 2011) – Payless ShoeSource announced today that Andrew Meyer has been named Senior Vice President and General Merchandise Manager for Payless’ Women’s and Accessories businesses, reporting to LuAnn Via, President and Chief Executive Officer of Payless.

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Karen Talboys Joins UNIT4 CODA as Manager of Professional Services

April 11, 2011

MANCHESTER, NH–(Marketwire – April 11, 2011) – UNIT4 CODA, Inc., a business unit of UNIT4, the world’s leading provider of business software for fast-changing organizations, today announced that Karen Talboys of Hudson (N.H.) has joined the company as Manager of Professional Services. In this capacity, Talboys will be responsible for the operation and further development of the company’s consulting organization.

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Dividends Coming Back At Record Pace, S&P Says

April 1, 2011

NEW YORK — Big companies increased their dividends by a record amount in the first quarter. Since the start of the year, 117 companies in the Standard & Poor’s 500 index said they would raise or start paying dividends. The value of the new and raised annual dividends announced by these companies amounted to a record $16.6 billion, according to Howard Silverblatt, senior index analyst at S&P. Just 78 companies raised their dividends in the same period a year ago. The surge in dividends reflects a turning point in the long recovery from the financial meltdown in 2008. After the meltdown many companies slashed or eliminated their dividends and, like many Americans, put their cash in the bank and sat on it. As a result, U.S. companies have amassed a record $940 billion in cash. But now the economy is recovering, profits are rising and investors are demanding something for their patience. An easy way to keep shareholders happy is to restore or raise dividends. JPMorgan Chase & Co. is quintupling its annual dividend from 20 cents a share to $1, amounting to an increase of $3.1 billion. The value of the payout is a record for an S&P 500 company. Even companies that have long resisted dividends are instituting them. Cisco Systems Inc. said it would begin paying shareholders $1.3 billion per year, a record amount for a first-time dividend payer in the S&P 500. “The fact that dividends are increasing is a clear signal that the economy and businesses worldwide are on a much firmer footing than a few years ago,” said Kent Croft, the manager of the $421 million Croft Value Fund. Here is more evidence of the dividend boom: _ Financial companies announced they will raise annual dividends by $7 billion, accounting for 42 percent of all S&P 500 dividend increases. That came after the Federal Reserve announced March 18 it would allow some banks to raise dividends if they passed certain “stress tests.” JPMorgan, Wells Fargo & Co. and State Street were among those that increased their dividends for the first time since the financial crisis. Citigroup Inc. reinstated its dividend. _ Ten S&P 500 companies announced during the first quarter that they would begin paying dividends. That’s the most for any three-month period since at least 2003, when Silverblatt began collecting data. Besides Cisco, discount department store Kohl’s and health benefits company WellPoint also became first-time dividend payers. _ Besides financials, industrial companies and businesses focused on consumer products announced the most dividend increases during the quarter. Among those raising their dividends: cruise operator Carnival Corp., retailer Limited Brands and manufacturer Eaton Corp. A strong recovery in dividends hasn’t made up for all the losses the previous three. Even with the increases, quarterly dividends by companies in the S&P 500 are 13 percent lower than their peak in 2008. Some companies that have raised their dividend still pay far less than before the recession. That is particularly true for banks and other financial services companies. Their dividend yield, which measures how much cash is being paid per share, runs around 1.41 percent today, far below the 3.32 percent yield in 2007. JPMorgan’s annual dividend is still well below the $1.52 a share it paid in 2008. Citigroup will pay just 4 cents a year, the maximum federal regulators are allowing the bank to pay under the provisions of its bailout package. Citigroup had paid as much as $2.16 per share before the financial crisis. Bank of America Corp. wasn’t given the OK by the Fed to raise its dividend, which is also just 4 cents per share. At its peak in 2008, the company paid annual dividends of $2.56 per share. “Companies are paying more dividends, but they are also taking it slow,” Silverblatt says. “Dividends are far from being completely back.”

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Bernard Starr: Sub-Prime Mortgages and Harry the Snake

March 22, 2011

Sub-prime mortgages still plague the housing market. Real estate watch-dog Housing Wire , citing statistics compiled by Realty Trak , recently reported that “Lenders filed a record 3.8 million foreclosures in 2010, up 2% from 2009 and an increase of 23% from 2008.” But 2011, they said, “could be even worse.” As the government ponders penalties, the banks and lenders continue to seek a scapegoat. In a twist of logic comparable to the man who kills his parents and then pleads for mercy as an orphan, the big banks, whose greed and reckless lending brought us the crash of 2008-2009, are now attempting to wiggle out of responsibility by casting themselves as the victims, not the home buyers who were duped. On March 3, 2011 the New York Times reported that attorneys for the banks claim that helping homeowners facing default is “like taking money that should be paid to the Treasury and using it for an unappropriated social program.” And the Bank of America, the nation’s largest mortgage servicer, “is already readying what will be among the industry’s main arguments: that it is unfair to reward homeowners who are delinquent or underwater but cannot point to specific errors in their case” These statements echo the rant of financial commentator Rick Santelli who blamed the victims. Back in 2009 on CNBC ‘ he charged that bailing out sub-prime mortgage holders was “…promoting bad behavior.” He added, “reward those who can carry the water not those who drink the water.” Other critics of homebuyers have likened a bailout to raising taxes on the whole population to cover the losses of gamblers in Las Vegas. Shouldn’t home buyers have known, say the accusers, that they couldn’t afford a $400,000 home on a family income of $50,000 — $60,000? Some did know. A predatory bank tried to convince Alex and his wife that they could afford a $330,000 home on their graduate student stipends. They resisted and purchased a starter home for $120,000. But the vast majority of sub-prime buyers were persuaded to make purchases well beyond their means by unscrupulous lenders who would stop at nothing to close a deal. These buyers were putty in the hands of the “tin men” (and women). “Tin men” is a nickname, for fast-talking unethical salesmen known for their skill at selling ice cubes to Eskimos. At one time they confined their activities mostly to selling home items door to door or through seductive cold-call sales pitches, but now they can be found in many industries — including real estate sales and mortgage lending. The original tin men sold aluminum siding — thus the moniker — and they are brilliantly portrayed in the 1987 film Tin Men starring Danny DeVito and Richard Dreyfuss “Tin men,” as we shall soon see, played a major role in the sub-prime mortgage debacle. First, the back story. I initially met real-life tin men when I worked as an encyclopedia salesman during my college years. Tin men from different industries drifted in and out of the office where I worked. Their pitches and “cons” were hilarious. A number of the classic examples are in the film. Here’s a simple one that I love: A salesman is selling aluminum siding to a couple. He surreptitiously drops a ten dollar bill on the floor out of the couple’s sight. Then he says, “Excuse me a second,” reaches down to the floor, and comes up with the bill. “Oh, this must be yours,” he says to the couple, handing it to them. Since they know he could just as well have slipped it into his pocket, the salesman’s act of “honesty” inspires the customers’ confidence — a message of trust that gives a big boost to closing the deal The tin men loved to exchange stories of their stings. Like vaudevillians, they had names for their routines. In “Inside-Outside Man” a salesman shows up for an appointment; he could be selling siding, a raised dormer, or any home product. He arrives at the family’s house in a stretch limo. When the husband and wife open the door they look surprised to see the limo. The salesman explains: “The Vice President of the company is in town for a sales conference and wanted to sit in on my presentation. Would you mind?” Of course, they don’t mind at all; they’re flattered. The “Vice President” emerges from the limo. He is dressed to perfection and casts an imposing presence — a central casting senior executive. At one point in the “pitch” the salesman shows the family a much more expensive product than they had originally looked at, and says “This is very expensive and the other product is almost as good.” The “Vice President” jumps in and says: “Give it to them for the same price.” The salesman shoots back, “But we’ll lose money on the deal.” The Vice President responds, “That’s all right. ‘Faker’ Industries will pay for it as part of our promotion. Give it to them” The salesman looks stunned. Are you surprised that this quickly becomes a done deal? Frank, the manager of the encyclopedia office, told me the premier tin man story “My People.” Frank once worked for a carpet company that advertised “two rooms of carpeting for $79.” There was no such product. The “bait and switch men,” who got easy entry into homes with the advertised offer, were supposed to switch-sell to higher priced carpeting. But one time, the company got stuck with lots of the ad-priced orders. So they sent in the next tier of tin men — the “conversion salesmen” — to convert the $79 contracts to higher ones. The best conversion man in the business was known as “Harry the Snake.” He closed a more expensive contract every time. Frank couldn’t figure out how he did it. He asked the Snake if he could go out with him on one of his pitches. The Snake agreed. “Meet me on Church Avenue and Ocean Parkway tomorrow morning at 9 AM. Wear overalls and bring some tools and a tape measure. When we get into the home just start measuring the floors. Oh, and by the way, I’m Tony and you’re Vito.” (The family they were visiting was Italian. On other days they might be Morris and Abe or Juan and Jose.) Frank and the Snake had no trouble getting into the home in Bensonhurst Brooklyn the next morning. The lady of the house was thrilled that the carpet installers were actually there so soon after the incredible sale. Once inside, “Tony” and “Vito” started measuring. Then at one point “Tony” (Harry the Snake) headed for the door and said, “C’mon, Vito, let’s get outta here. I can’t do this to a nice Italian family.” The puzzled woman asked, “What’s the matter?” Tony answered, “When they sold you this carpeting, they showed you the junk; they didn’t show you the good stuff.” He then pulled out a swatch of carpeting from his pocket. “This is the junk they sold you.” He pulled on it and it disintegrated. Then he showed her a swatch of the “good stuff.” Again, no surprise that the higher priced deal was soon closed. Let’s fast forward to the sub-prime mortgage orgy. “Harry the Snake” must have felt that he died and woke up in tin man’s heaven. Now he’s a mortgage broker at a respected bank — one of the icons of corporate America. And he’s the inside man — suit, tie, and title: VP, Director of Finance. Let’s listen in as the Snake talks to Mr. and Mrs. Jones. The Joneses neighbors, the Smiths, whose income is the same as theirs, about $52,000 a year, just bought a house financed by Harry the Snake’s bank. They were surprised; The Joneses didn’t think their neighbors could afford a house, but there were the Smiths packing and getting ready to move. Can Mr. and Mrs. Jones afford to do the same thing? The Snake assures them they can. “Yes, indeed, you can afford to buy this $380, 000 house.” (The finance industry’s rule of thumb is that the price you can afford is about 2.5-3 times gross income). He tells them that home values will surely keep going up and that the word “down” will soon be gone from our vocabulary. And he assures them that his distinguished bank will put its money where its exuberance is and finance the deal. The Snake shows them that the figures work — with virtually no down payment and just interest only payments for the first three years: “And in three years when payments on the principle kick in and the adjustable rate mortgage (ARM) will be recalibrated to interest rates at that time [and as much as two percentage points higher for buyers like the Joneses with credit scores below 620], that won’t be a problem. The value of the house will rise so much, and probably your income as well, that you will be able to raise money from the increased equity to cover all the costs.” How could they resist this opportunity to latch on to the American dream, especially when it is backed by the full faith and credit of one of America’s great banks — and Harry the Snake? When you are tempted to point the “j’accuse” finger at “irresponsible” sub-prime homebuyers think about all the Joneses across America and how they were shamelessly victimized by the army of Harry the Snakes — and their banks and lenders who cheered them on. NOTE: This is a revision and update of a blog that I wrote in 2009 at UPI’s R&S section.

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Kathleen E. Christensen: The False Choice: A Flexible Job or a Good Job?

February 13, 2011

Workplace flexibility: eighty percent of American employees say they want it, nearly half of job seekers rate it as a higher priority than salary, and thousands of companies have embraced it as an efficient way to keep employees happy and boost business productivity. But despite all this, there is still a widespread misconception that workplace flexibility is only appropriate to a certain type of job. A simple job, the thinking goes, can be accomplished by someone working off-site, or working non-traditional hours, or sharing a job with another part-time employee; but “serious jobs” still require rigid, traditional work schedules and set-ups. This line of thinking is epitomized by the dilemma facing a worker who wrote into The Wall Street Journal ‘s Ask The Juggle this week: The reader, a working mother, has an opportunity to step into a new job with her current employer that would allow her to work from home one or two days a week. The new job would give her flexibility to spend more time with her two young children….The problem is, the job isn’t that exciting, and she is overqualified for it. Taking it also wouldn’t help her resume much in any future job search… It’s not just working moms, but employees of all stripes who face this quandary: to take the flexible job or the good job? But it raises a more important question: why is this employee–clearly talented enough to hold a challenging position–only offered flexibility if she takes a worse job? Instead, why can’t she and her employer work together to find a way to make the job she has more flexible? The answer, of course, is that making a challenging job flexible is, well…challenging. But it’s not impossible. The pioneering employers who have won Alfred P. Sloan Awards for Business Excellence in Workplace Flexibility have shown that there are many different routes to workplace flexibility . Innovation in other countries has shown that even doctors, lawyers and business leaders stand to benefit from increased flexibility . As Sue Shellenbarger said in her thoughtful response to this reader, “most jobs require some sacrifices. Trade-offs like this are what make the juggle such a nonstop challenge. The right answer is different for everyone.” Perhaps working form home twice a week isn’t possible with this woman’s job. But maybe it is possible to shift when the work is done so that a spouse or other family member can be home when this mother is at work. Maybe it’s possible to let her share the job with another talented employee. Or maybe this mother and her employee need to come up with a completely new way to match this job with her life. The point is that every job, no matter how demanding or challenging, can be tweaked to make it more flexible. And, a wide array of research has shown that workers across the spectrum are more efficient when they have flexibility over how, when and where their work gets done. Perhaps the biggest misconception about workplace flexibility is that it means working less. It doesn’t. I have seen many examples of employees who get more work done when given flexibility in when, where and how they do their work. This isn’t about decreasing the number of hours someone works or giving them fewer responsibilities. It’s about customizing a job so that it fits with a life. Oftentimes this even means the employee works more. Almost always it means that they work better, are more engaged with their job, and less likely to leave the company. We need to move past this outdated image of a good worker as someone who has no life or family issues distracting them from work. A good worker is someone who figures out how to fit their job with their life and family responsibilities so that they are not distracted from either. Because of the many benefits it offers to both employees and employers, workplace flexibility is now included in the Department of Labor’s definition of a “good job.” Every business should make it possible for each employee to sit down with their manager and figure out how to make their job fit with their life. If they take the time to do this, they’ll end up with more productive employees and more efficient businesses. No talented employee should have to answer the question, “do I want a good job or do I want a flexible job?” Instead, each of us should be asking, “how do I make my good job a flexible job?”

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David Kroodsma: 40 Interviews in Davos

February 4, 2011

Cross posted on Hub Culture . For five days last week I was a fly on the wall in Davos, watching CEOs and leaders discuss the planet’s major issues at the World Economic Forum. I attended the conference as a social media producer for Hub Culture , producing short video interviews of thought leaders. Hub Culture is a social network of “global urban influencers,” and in Davos we occupied a building that served as a center for work, collaboration, and evening events . At the Hub Culture Social Media Center we interviewed forty influential leaders. These five-minute interviews, conducted by our executive editor Edie Lush, let individuals share why they were at Davos. CEOs of major corporations, directors of global non-profits, and other thought leaders sat in the Hub Culture “hot seat” and shared their concerns. The following is an attempt to distill some of the major themes of these interviews. Obviously, the forty interviews don’t fall neatly into the categories below, and many people touched on multiple themes in their few minutes. All of the links below lead to videos of the individuals; click to hear the full stories. Did Davos Have a Theme? Every World Economic Forum has a stated “theme,” which sometimes relates to the actual theme of the conference. Last year, as the world was emerging from the global recession, the theme was “Improve the State of the World: Rethink, Redesign, Rebuild.” This year the theme was “Shared Norms for the New Reality,” which made everyone scratch their head. What is the “new reality” of the world, and what are the norms? The former Prime Minister of Australia, Kevin Rudd , said he would rather state the goal as “shared values for common challenges.” (Off camera he asked, “Who are these guys named Norm that we are sharing?”) Rudd said that in the sessions he attended there was active debate over whether different countries of the world shared values or not. In one session the audience was split 50/50 on whether or not the West has common values with China with respect to global challenges. Justin Blake, a managing director at Edelman , has now attended nine World Economic Forums, giving him a unique perspective. He said that this was the first Davos where there was no clear focus or theme, as if the world appears more splintered as it becomes more connected. Moreover, outside news–notably the chaos in Egypt–over shadowed any news from the conference. Ian Bremmer, the President of the Eurasia Group , a firm that consults with businesses on political risk, expounded on what he thought was the “new reality.” He said that we are seeing a new type of globalization as the emerging markets flex their muscles and no longer take orders from the western powers. His major concern is what he called the “G-0″ (as opposed to the G-20)–the fact that there is no effective global governance. He cited the failures of climate and trade negotiations. Some claimed that a major focus of this year’s Forum was social inequality, which is on the rise in many parts of the world. Jasmine Whitbread, the CEO of Save the Children , felt that in previous years her comments on social inequity were ignored; this year she gained more attention. The Way Workers Interact with the Economy has Fundamentally Changed. Malcom Frank, the Senior Vice President of Cognizant Technology Solutions , said that we are seeing the “future of work” because the generation now entering the workforce won’t accept the rigid hierarchies common in corporations. Businesses will need to be more flexible. In the information age, work no longer has to be done “at work,” but can be performed remotely and at any time. This message was echoed by Jeffery Joerris, the CEO of Manpower , who even argued that we are no longer in the “Information Age,” but instead in the “Human Age.” In the “Human Age” ( see article here ), the focus is on individual talent instead of the corporation. He also remarked that companies have been reluctant to hire during this economic recovery because they’ve realized they can be just as productive with fewer people. Arianna Huffington, the chief editor of the Huffington Post , talked about the explosion in unemployment, and how many in the United States’ middle class have experienced “downward mobility” as individuals have dropped into poverty. She implored governments to do more. Media and Social Media are Rapidly Changing One career that has changed dramatically in the past few years is journalism. We talked with Mike Perlis, the President and CEO of Forbes . Perlis described how Forbes’s online media has succeeded because it has adapted quickly to the changing ways that people consume information. Likewise, Justin Blake of Edelman (mentioned earlier), said that a few years ago everyone was surprised when the first blogger showed up at the Forum. Forum meetings were supposed to be “off the record.” Now, because of twitter and blogging, everything is shared and no one expects secrecy. Robert Scoble, a Rackspace Innovation Journalist and blogger on the popular site Scobleizer.com , described how twitter gave him his own little news feed on the world, giving him updates every second. “It’s like having a CNN news feed on my screen. I’ve always wanted that!” The Global Gender Imbalance A number of our interviews highlighted the need to empower women in business. Rachel Kyte, the Vice-President of the International Finance Corporation , told us that women run sixty percent of the world’s small businesses, but in some countries only five percent of the bank credit is awarded to females. She also cited numerous studies revealing that companies do better if women are on the corporate boards. Wendy Clark, the senior Vice President of Integrated Marketing and Communications for The Coca-Cola Company , talked about Coca-Cola’s efforts to empower women franchise owners. Coca-Cola has a goal of empowering five million female entrepreneurs by 2020. Currently, many female entrepreneurs lack sufficient training, networks, or access to capital. Clark admitted that these efforts are good business practice for Coca-Cola, because small beverage outfits run by women tend to do better than those run by men. Laura Liswood, the Secretary General of the Council of Women’s Leaders , lamented the slow progress in getting women into corporate boardrooms. She also gave a cultural anecdote to explain why corporate boardrooms ate still dominated by western males. And while we did see female executives (Indra Nooyi, the CEO of PepsiCo spent time at Hub Culture, and we also interviewed Beth Comstock, a senior Vice President of GE ), Davos remains a mostly male affair. Only 16 percent of the roughly 2,500 fully accredited attendees were women. Consumer Empowerment We interviewed the heads of two organizations that are attempting to empower consumers. Joost Martens, the Director-General of Consumers International (a global umbrella organization that includes U.S.-based Consumer Reports), said that the world is becoming more globalized but there are not yet global standards for the quality and safety of products. His organization hopes to change that. Dara O’Rouke, the founder of GoodGuide , described how his company researches the social and environmental impacts of various products and makes the information freely available. In the interview he showed us a new iPhone app that allows consumers to scan a product’s barcode and get vital statistics about the social, health, or environmental consequences of the item. Sustainability Has Become Popular and Profitable, But Will It Be Enough? To promote collaboration and climate solutions, Hub Culture hosted Climate Deal Day during the World Economic Forum ( watch a Wall Street Journal video about the event ). Consequently, we interviewed many individuals concerned with climate and other environmental issues. These conversations gave us many reasons to be hopeful; the question is whether our solutions will be sufficient. Peter Lacy, the Managing Director of Sustainability Services for Accenture , said that businesses now understand the importance of sustainability. In a global survey of CEOs, Accenture found that 93% of company leaders say that environmental sustainability is key to their long-term success. Just three years ago, this figure was twenty percent lower. Lacy also said that the challenge is no longer recognizing the issue, but instead figuring out how to embed sustainability in the companies. He then added that more organizations see sustainability as “an opportunity” instead of a burden or a risk. We interviewed the founders of two companies who believe in this opportunity. Kevin Surace, the CEO of Serious Materials , spoke about the high tech windows and walls that his company has developed to improve building efficiency. Nearly all of his company’s products have a payback time of less than two years, making them great investments for consumers. Likewise, Graham Andrews, the founder of Andrews Power , talked about his extremely high efficient air conditioners that dramatically reduce energy use. The challenge is to get people to use these new technologies. Peggy Liu, the chairperson of JUCCCE (The Joint U.S-China Collaboration on Clean Energy), talked about the difficulties of getting knowledge to the right places. “There is no lack of interest to go green in China,” said Liu. The problem is access to technology, and Liu announced an innovative new plan to allow Chinese investors and U.S. research institutions to cooperate and develop clean technology. Dr. Han Seung-soo, the former Prime Minister of South Korea and the current Chairman of the Global Green Growth Institute , partially echoed Liu’s ideas. Seung-soo’s country developed rapidly in the past few decades, converting itself from a poor country to a rich one in less than half a century. Dr. Seung-soo said that the rest of the world can’t develop in the same intensive way that South Korea did, and the Green Growth Institute will help developing nations grow their economies more sustainably. Ian Cheshire, the Group Chief Executive for Kingfisher , Europe’s leading home improvement store, talked in depth about his company’s efforts to provide sustainable, efficient products for home owners and builders. We also spoke with Ann Davlin, the Director of Development for the Carbon War Room , who told of a number of other companies who are also stepping up and taking action. One of Hub Culture’s partners in Davos was the Renault-Nissan Alliance, which has developed the electric cars the Nissan Leaf and Renault Fluence. At Hub Culture we had two charging stations for these cars, and we spoke with a number of people involved in the marketing or design of these vehicles. Nissan’s Head of Marketing, Simon Sproule , said that in 2011 the electric vehicle has finally come of age. Gilles Gautherot, the Communications Manager of the Renault-Nissan Alliance , told us that the real breakthrough has been making these cars “just like any other ordinary car, except much quieter.” Jack Hidary, the Global Electric Vehicle Leader for Hertz , talked about making electric cars available through Hertz, and he described innovative new car sharing programs for electric cars. We felt we saw the future when Hidetushi Kadota, the Chief Engineer for the Nissan Leaf , walked us outside and proudly showed off his company’s car. Unfortunately, the environmental challenges that we face are acute. Christiana Figueres, the Executive Secretary of the UNFCCC (United Nations Framework Convention on Climate Change), said that the global agreement reached in Cancun last December was “A big step forward for the community of nations, but a small step for the planet.” In other words, even though substantial progress was made, the progress still falls far short of what is needed to stop climate change. The Executive Director of Greenpeace International, Kumi Naido , agreed, saying that “time is running out,” and cited various scientific reports. Carl Ganter, the founder of Circle of Blue , a firm focused on freshwater issues, pointed out that water shortages could also limit our energy use. Finally, the President of the Environmental Defense Fund, Fred Krupp , talked about the dire state of the world’s fisheries and his organization’s efforts to change the way we fish. — A few of our interviews couldn’t be lumped into these categories, but they provided important insights nonetheless. Beth Comstock, General Electric’s Senior Vice President and Chief Marketing Officer , talked about innovation around the world and her company’s “Innovation Barometer.” Malini Mehra, the founder and CEO of the Centre for Social Markets , discussed the need to look at climate issues, food security, and water issues as an integrated set. Johnathan Reckford, the CEO of Habitat for Humanity International , talked about providing micro financing to help people build homes around the world. Simon Zadek, the founder of AccountAbility , talked about the challenge of taking ideas generated during meetings in Davos and then applying them. Atsutoshi Nishida, the Chairman of Toshiba , talked about many issues related to innovation, and he also convinced us that we needed a 3D television. Bernardo Guillamon, the Manager of the Office of Partnerships at the Inter-American Development Bank , talked about the bank’s efforts to help Haiti and invest in education there. Salil Shetty, the Secretary General of Amnesty International , explained how the growing power of corporations had changed his organization’s strategy. Amnesty International has traditionally pressured governments to protect human rights. Now, as corporations become more powerful and more global, Amnesty International need to increasingly engage with companies in order to protect the rights of people around the world. As these interviews have shown, the world is a rapidly changing place. The way we work is changing, as is the way we consume media and interact. Although environmental challenges are getting much more attention, it is not yet clear if that attention will translate into sufficient action. Likewise, more are aware of the need for gender equality in business, but we need to move from awareness to action. The global community faces countless issues, and as many of these leaders said in these interviews, it will take much more than just talk to solve them.

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AtNetPlus, Inc. Hires Additional Staff

February 3, 2011

Service Manager David Kaiser and IT Specialists Chris Horning and Damian Huising Have Joined the AtNetPlus Team With Account Managers Rochelle Schenk and Susan Hudik

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Hedge Fund Manager Reportedly Brought In $5 Billion Last Year

January 28, 2011

BOSTON (By Svea Herbst-Bayliss) – Billionaire hedge fund manager John Paulson, whose bet against the overheated housing market made him one of the world’s wealthiest people, became a lot richer last year. By earning an estimated $5 billion in 2010 thanks to bets the economy would recover, the 55-year old investor likely set a new record for the $1.9 trillion hedge fund industry’s biggest-ever annual payday. He beat his own record, which he set in 2007 with a $4 billion haul made off the subprime bet. The Wall Street Journal first reported Paulson’s payout in its Friday edition, and investors familiar with Paulson’s portfolios said the number is likely correct given the manager’s asset size and his recent profitable bets on Citigroup and gold. For Paulson, the payday comes after he reversed deep losses in his funds halfway through the year, and it may put to rest lingering talk that his investing prowess was limited to a lucky bet during the subprime era, investors said. “He did it on the short side and on the long side,” said Brad Alford, founder of Alpha Capital Management, which invests with hedge funds. “He proved that he can really do it all.” Other prominent managers like Appaloosa Management’s David Tepper and Bridgewater Associates’ Ray Dalio likely also earned 10-figure paychecks, the Journal reported. EYEBROWS RAISED But Paulson and other managers’ eye-popping earnings are sure to raise new questions about how managers are paid in an industry known for charging hefty fees that often guarantee generous payouts even if returns were merely average. Last year, the average hedge fund gained 10.5 percent, lagging the Standard & Poor’s 500 index by 15 percent and falling short of their own 19 percent return in 2009, data from Hedge Fund Research show. But managers will collect 2 percent management fees and about a 20 percent cut of their gains. By definition, this raises the payouts for managers at the industry’s biggest firms. In Paulson’s case, the fact that his 17-year old firm Paulson & Co oversees about $35 billion fattened up his payout. To be fair, Paulson also invests his entire fortune in his funds and since his gold fund gained 35 percent, his investment gains added billions to his payout. For other managers, including ones who lost money, however, the industry’ payouts may seem less fair, investors and analysts said. “People are fine with hedge fund fee structures as long as they are making great returns,” said Stewart Massey, who invests with hedge funds at Massey, Quick & Co. “But where they get antsy is where managers have middling returns and the managers are still making a lot of money.” As hedge funds look for new investors, experts say that investors’ demands on pay will hold more sway. A push from some investors to set a so-called hurdle rate, or minimum accepted rate of return, for manager pay, or to reward them only if they exceed certain benchmarks may gain traction. ROAD TO BIG PAYDAYS The big paydays at hedge funds are likely to confirm that hedge funds can be modern-day gold mines on Wall Street and spark even more movement from the world of banking and mutual fund management into this asset class. “Many of these big hedge fund managers are now earning more than professional athletes,” said Kenneth Murray, president of Mercury Partners, which recruits staff for hedge funds. “And they can do this for the rest of their lives, unlike sports stars who have to find another job after the age of 35…. 100 percent, hedge funds are the places where everyone wants to be.” But he and other recruiters agreed that the hedge fund industry’s biggest payouts really will be limited to its biggest stars, noting that working at a hedge fund is no longer a sure way to easy riches. As the industry matures, these people said that it is becoming harder for newcomers to break in and that portfolio managers need to bring long records of top performance before getting a job. Also with investors becoming pickier, it is harder to raise a lot of money. “If you’ve been in the game and successful, you may be set for life, but for everyone else it is becoming tougher,” Murray said. (Editing by Robert MacMillan) Copyright 2010 Thomson Reuters. Click for Restrictions .

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Barry Moltz: 20 Most Important Words for Your Small Business

January 14, 2011

Words are powerful things. And what they mean has a big influence on your customers’ expectations. It is important in your business to understand and define each term for your company and customers. It will make a big difference in how your company grows. 1. Belief: What people think and accept as true. May not correlate with facts. Have great sticking power, even when they are wrong. 2. Complain: What a customer does when they are unhappy. They complain to themselves, to friends, on the Web, and even sometimes to you. 3. Disney: A place where most customers are always happy. This takes a lot of employee training. 4. Empowerment: Training employees to make decisions on their own to help a customer without talking to “the boss.” 5. Feedback: Giving the customer the opportunity to tell you what they think at many different stages of interaction, and the opportunity to do it in many different ways depending on what is convenient and appropriate for them. Something smart companies listen to and take to heart. Associated with the Three Times Rule–if you hear something about your business three times, whether you like it or not, pay serious attention. It is probably true. 6. Forever: Relative time the customer feels they need to wait. 7. Happy: An impossible dream that is sometimes worth the pursuit. No business strategy in the world can make all customers happy. 8. Humans: Who every customer wants to talk to when they call your company. 9. Kick the Cat: What employees do when they take their frustrations out on the customer. Blowing a situation out of proportion. The kiss of death for a company. 10. Mistake: The hardest thing for the company (or the customer) to admit. 12. My Manager: The person the customer is seemingly always getting passed to or who always gets blamed by the employee if something goes wrong. The catcher in “passing the buck.” 13. Overpromise : Making a commitment to a customer or to all customers that the company is not economically able to keep. 14. Patience : What businesses think customers ought to have. What customers think they have a lot of. 15. Peer Reviews : Online references written by customers on the level of quality or service in your company. Sometimes called an open reputation system. 16. Pest: A customer the company may need to fire to be more profitable. 17. Promise : A solemn commitment to a customer that the company will honor and the customer will not forget. 18. Self Service: Tools such as kiosks and Web tools for customers to assist themselves. Not always linked to satisfaction, but increasingly linked to high expectations of a quick turnaround. 19. Survey: A mostly ineffective means of getting customer feedback, especially when the company bribes the customer to do it. 2 0. Voice Mail Jail : Every customer’s nightmare, especially if they do not get a call back. What important words would you add?

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Birute Regine: The Importance of Care in Business

December 21, 2010

I remember a time I spoke at a CIO conference, during the dot com bubble when hubris was in full swing. I was talking about the important role care plays in the workplace. These guys looked back at me with an expression like “what did you have for breakfast?” Once I used the word “care,” I felt I had lost my audience. Who needs to care when you are king of the mountain, as these high-tech whizzes thought of themselves in those heady times? The bubble burst, the economy shifted somewhat, and then, of course, we were awash in the global financial crisis. But the importance of care in the workplace has not changed, because people are people, no matter the context. When you recognize that business organizations are “complex systems,” rather than “machines,” a different view of the workplace emerges: it is the strength of connections between people that makes an organization resilient, adaptable, robust, and successful in traditional bottom line terms. Caring about others is a connection strengthener, and is therefore good for business. Care is not usually thought of as a power word, but it is a power action. When our interactions are filled with genuine care, not only are our connections strengthened, but also our relationships are enriched. We all look for and long for security in our lives. Security at all levels, from personal to global, resides in the strength of our positive connection to others. Our power and control in life is in our ability to “care-nect.” At some core level we all know that we are interconnected, that we depend on each other. Caring about others is therefore a way of caring for ourselves. I know from my own experience that “care” is a foreign concept in many workplaces, but in others it is part of what defines them. One such place is Hunterdon Medical Center in New Jersey. When I visited I was instantly stuck by the level of connectedness the nurses felt for each other. In a meeting, I would notice them communicating silently to each other through their eyes or in subtle expressions. Their attunement to each other was palpable. Their support of each other — practical and emotional — was unquestioned. Linda Rusch, former VP of Nursing at Hunterdon told me a story that illustrates the depth work relationships can reach when people care-nect with each other. Like a crystal breaking reveals the lines of connection, this is a story of disconnection that exposes the depth of the connection between co-workers. The nursing staff not only worked together, they played together. Every year they would go away on what they called the “girl’s soul trip.” Even though nurses cover for the vacationing nurses, Linda felt that the manager and the assistant manager of any one ward should not both be absent at the same time, as this puts too much responsibility on others if problems crop up. It turned out that on this particular soul trip the manager and assistant manager of one of the wards were both planning to go. “I was upset about it when I found out,” Linda told me. When the ward manager saw that Linda wasn’t too happy with her choice she said, “OK, Linda. Help me. Tell me what to do.” Linda refused and said she must make her own decision. “I was telling her she was a grown up,” Linda explained. “I wasn’t going to demand that she not go. But she knew how I felt.” When Linda came to work the following Monday, she learned that the manager had decided to go on the trip, in spite of Linda’s concerns. The nurses’ soul trip took place in Bermuda that year. The manager in question was splashing away in the water when suddenly she realized she wasn’t having fun. She felt herself being propelled out of the water by a force beyond her, sobbing as she ran to her room. Everybody gaped. They had no idea why she was so upset. Once in her room, the manager called the hospital. Linda was pulled out of a meeting and was told the manager sounded horrible and to call her right back. “I thought that something terrible had happened.” When Linda got on the phone, the manager was sobbing. “I can’t believe I did this. I can’t believe I disappointed you. I can’t stand knowing you don’t think highly of me.” “For me, that’s all it took,” Linda told me. “What mattered to me was that she felt bad enough to call me, and cared enough about how I felt. I said, ‘It doesn’t matter. What matters is our relationship. And you know, our relationship has just grown. It’s on another level because your care for our relationship compelled you to act and you called me.’” Care is a soft skill that many corporate and political worlds could usefully develop. And it starts with each and everyone one of us. During the holiday season, people tend to express more care. Let’s make it a daily practice. Each and every one of us has the power to model the power of care and positively impact the circles we move in. Strengthen your relationships, expand your world of connections by living care-fully. Be a care-nector.

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Dorian Nicol Joins Board of Directors of Gold Bag, Inc.

December 13, 2010

RENO, NV–(Marketwire – December 13, 2010) – Gold Bag, Inc. ( PINKSHEETS : GBGI ) ( OTCBB : GBGI ) announces the appointment of Dorian L. (Dusty) Nicol to its board of directors and as a member of the previously announced investment advisory board. Mr. Nicol is currently President and CEO of Tournigan Energy Ltd., a TSXV listed exploration and mining Company. Mr. Nicol has over 30 years of international experience in mineral exploration and mining. His past positions include Executive V.P. – Exploration with Yukon-Nevada Gold, President and CEO of Queenstake Resources, Latin America Manager for Canyon Resources, V.P. Exploration for Castle Exploration with programs in Central America and Africa, and exploration positions with Exxon Minerals and Renisson Gold Fields in Papua New Guinea.

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Conforce International Announces Appointment of New Board Member

December 10, 2010

TORONTO–(Marketwire – December 10, 2010) – Conforce International, Inc. (“Conforce” or “Company”) ( OTCBB : CFRI ) is pleased to announce the appointment of Pieter Jacob Eekel to the Board of Directors. Mr. Eekel has over 40 years experience in the shipping container industry and most recently held the position of Senior Technical Manager for Maersk Line, the largest shipping line in the world.

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Larry Segerstrom Joins Board of Directors of Gold Bag Inc.

December 9, 2010

RENO, NV–(Marketwire – December 9, 2010) – Gold Bag, Inc. ( PINKSHEETS : GBGI ) ( OTCBB : GBGI ) announces the appointment of Larry Segerstrom to its board of directors. Mr. Segerstrom has 30 years of experience in the mining industry and holds a Bachelor of Science (Geo.) from Colorado State University, a Master’s Degree in Economic Geology from University of Arizona and an MBA from Thunderbird School of Global Management. Since 2006, Larry was Chief Operating Officer of Paramount Gold and Silver Corp. where he led the discovery of more than 1 million ounces of gold and 75 million ounces of silver at its San Miguel Project in Mexico. Prior to that Mr. Segerstrom was Manager of the Geologic Services Group at Freeport McMoRan’s Grasberg District Mining Camp where he led the discovery and development of new ore reserves totaling 3.4 billion pounds of

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Les McKeown: Is Your Business Falling Into ‘The Big Rut’?

December 7, 2010

Over-dependence on systems and processes is natural to a particular stage in any organization’s development — one which I call ‘ Treadmill .’ While we’ve all experienced the frustrating tendrils of this kind of bureaucracy, it actually becomes highly dangerous if complexity and redundancy begin to distort reality. Treadmill usually occurs after a fast-growing company has begun to introduce systems and processes to tame the creative chaos it has unleashed. Too often, leaders see the benefits those systems and processes bring, and then overdo it. Google is a good example (in its core search activity), as is Disney, whose very existence depends on staying innovative and not succumbing to creativity-sapping bureaucracy (currently, it’s losing the battle). Left unchecked, an organization in Treadmill will slide inexorably into the next stage in decline, an almost-always fatal stage I’ve labeled ‘ The Big Rut ‘. When it’s in The Big Rut, the organization is so far in the grip of systems, processes and procedures that creativity, risk-taking and real entrepreneurial zeal and passion are almost completely extinguished. The creative burst that spurred the company to success is gone: the mavericks, boundary-oversteppers and entrepreneurial types are slowly expunged (or expunge themselves) and there is no-one left in senior positions who will wave a red flag and stop the company’s inevitable decline into irrelevancy. So, how does senior management of an organization in Treadmill prevent a decline into The Big Rut? There are three keys to ensuring that a reasonable dependence on systems and processes doesn’t swell into arthritic bureaucracy: 1. Re-tool your hiring process The number one amplifier of bureaucracy for any organization in Treadmill is the hiring process. Once the organization discovers the real benefits of adhering to good systems, the tendency is to emphasize compliance and detail-orientation when hiring new people, at the expense of initiative and risk-taking. These new hires then in turn hire in their own image, and the organization is populated with systems-focused types who value form over function, efficiency over effectiveness, compliance over results. The key to staying out of The Big Rut lies in introducing the word ‘and’ into your hiring profiles: by redefining the must-haves for new hires to identify people who value compliance AND initiative, a systems mindset AND creativity, compliance AND effectiveness. Netflix is a great example of a rapidly growing organization that gets this — as can be clearly seen in the ‘must-haves’ they look for in new hires (and note — they have this slideshow embedded right into the job page on their own web site so all potential new employees are well aware of what the company is looking for). 2. Refresh your performance assessment process When an organization reaches Treadmill, the performance assessment process typically begins to focus on non-compliance and infractions — what this person didn’t do in the period under review — rather than on the successes they achieved, and how the organization can ‘bottle’ and repeat that success. To avoid sliding into The Big Rut, the performance assessment process must be re-focused to emphasize and encourage those entrepreneurial activities that keep the organization flexible and vibrant: what did this person do that was exceptional, showed initiative and was creative (even if they failed)? How can the organization learn from both their successes and their failures? How can we repeat this person’s successes in a wider context (and not just punish failure)? One impressive example of this is in Cisco ‘s leadership competency model: CLEAD (Collaborate, Learn, Execute, Accelerate, Disrupt). Out of all the leadership competencies Cisco could have included, during all the kill-me-now, do-we-have-to-discuss-this-again meetings that I’m sure they had, somebody worked hard to get ‘disrupt’ in there — and assessing key people against their ability to disrupt is exactly what’s needed to stay out of The Big Rut. 3. Provide a safe mentoring environment The third major amplifier of bureaucracy in Treadmill is the pressure to adhere to systems and processes in real time: it sucks the entrepreneurial air out of the organization, negating the opportunity for people to experiment, take risks and show initiative. A great way to counter this is to provide a mentoring program which doesn’t mirror the reporting lines in the organization, thus providing people with a safe environment in which they can try out ideas and experiment, without worrying that they might invoke a career-limiting reaction from their manager and supervisor — GE has been renowned for this for years, providing even entry-level leaders with structured cross-functional mentoring to encourage creative thinking. An additional secondary ‘win’ can be achieved by asking those mavericks, boundary-oversteppers and entrepreneurial types — who otherwise may well be looking for greener, less hidebound pastures to work in — to act as the mentors. Take a close look at your systems and processes — are they providing a safe haven for entrepreneurial risk-taking, creativity and initiative or are they choking the life out of your business? Want to know how close you are to Treadmill, or (gulp) The Big Rut? Take the Predictable Success Lifecycle Quiz .

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Presidium Partners Announces New Strategic Partnership

November 16, 2010

SAN FRANCISCO, CA–(Marketwire – November 16, 2010) – Presidium Partners is pleased to announce that Dave Harden, Vice President and Senior Portfolio Manager of Ensign Peak Advisors, Inc., has joined Presidium as an independent account representative. With more than seventeen years of experience in financial enterprises, Mr. Harden currently oversees day-to-day research, portfolio management and trading for several equity-based quantitative portfolios at Ensign Peak Advisors.

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