Who Needs Stimulus

If the economy is 80% dependent on household spending what if the government gave the money to people instead of the very banks that drove the world economy into the dirt.
About two trillion dollars ($2,000,000,000,000) have been committed to saving the economy. The March 2008 Current Population Survey shows there are about 116.5 million households. If two trillion dollars were distributed among households that would amount to $17,167 per household. For the wealthy this amounts to less than a few weeks pay but for many it represents nearly a year’s income.

What would people do with that money? Would they pay down debt (particularly credit cards) and so increase their monthly cash flow and decrease the risk of future financial difficulties? Would they spend it and create jobs? Would they save it and recapitalize banks? Distributing money to households would be efficient and not require additional bureaucracy. Of course this is simplistic and can’t happen.

Instead of propping up failed banks, whose leaders’ compensation was clearly misaligned with their business acumen, what if the government would allow CREDITWORTHY people and businesses to borrow directly from the U.S. Treasury at affordable rates? Let banks then decide if they want to engage in responsible lending or let them go bust as they cling to worthless CDOs and other failed assets of their own making.

Instead of creating impossibly complex instruments whose risk is impossible to determine, what if that energy were channeled into creating and financing new business models where risks and returns are quantifiable and advance objectives in our common interest? What if, like Tom Friedman proposes, a business was created to upgrade a home’s energy efficiency at no cost to the owner? The business would make the investment and be repaid by splitting the energy savings with the home owner. The banks, the business, the providers of the energy saving materials and appliances, the homeowner, and the environment all win and the demand creates incentives to invent more energy saving technologies which when commercialized create even more employment.

Jay’s Top 10 Rules for Consultants

Not long ago I had the opportunity to visit with college graduates just beginning a career in consulting. It was quite refreshing to see their enthusiasm, eagerness to learn, and perhaps a bit of nervousness.

They took the opportunity to ask what wisdom an "experienced" consultant could impart to them (they were very tactful). One of the questions that made the biggest impact on me was "What if I make a mistake?" I thought it was, in many ways, the most relevant and revealing question of the evening.

That got me really thinking about what advice I could give those just beginning their journey.
Below is the result of reflecting on a career spanning more than 20 years. I hope it will be useful to new and experienced consultants alike.




Jay’s Top 10 Rules for Consultants

10 - Make your manager/sponsor/person who signs your timecard look good. You will be successful only to the extent you make others successful. Make sure your manager and team get the credit. People will want to work with you again and they will remember who did the heavy lifting.

9 – Don’t’ be afraid to raise concerns or present alternatives. That is a critical part of your obligation as a consultant. It is important to be straightforward – but tactful. Don’t attack. Present alternatives in the form of a question (“Has this solution been considered…) where you proceed to outline a solution and highlight how it can address shortcomings/concerns. If you need to confront a performance problem be objective, factual, give documented examples, and don’t let emotion cloud your judgment or discussions.

8 – Remember that managers don’t create solutions to problems. They choose among alternatives created by the experts they manage. This includes you. Do not come to your manager with a problem without also having potential solutions with clearly identified advantages and disadvantages.

7 – Fit in. Make note of the dress code and blend in. The old and elitist “dress one level above your client” is sure to tag you as “the consultant” and therefore NOT a member of the team but a transient know-it-all who will be gone in a little while after costing the company a pile of money and leaving incomplete solutions in your wake for others to deal with. (Hopefully this is not the case but you can see how easily this perception can be created.)

6 – Admit mistakes immediately and without excuses. Be sure to present carefully thought out ways to remediate any damage. Make sure it is not perceived as covering your behind (to use the politically correct term).

5 – The customer is not always right. However, after having had a chance to present your alternatives and a decision is made you will give it your unequivocal support and best efforts even if you don’t agree. You are responsible for presenting convincing, tactful, fact-based alternatives (see rule 9). Your argument may be sound but there are often “other” considerations your manager must balance of which you likely will not be aware.

4 – Do not triangulate, join, or create opposing coalitions. Your objectivity and integrity are your most valuable assets as a consultant. Keep your opinions (on your customer’s business, people, politics,…) to yourself. Maintain your reputation for fairness and objectivity. Create solutions that overcome barriers and enhance collaboration (see rule 9).

3 – Reign in your (natural) tendency to judge people. Not everyone is easy to work with and they may work in ways that are “not your style”. Your do not know all the things that motivate their behavior and you will not be able to walk a mile in their shoes in order to understand. Your job is to find ways to work with the resources available to you (see rule 9 – again).

2 – Be a leader, not a boss. Remember that boss spelled backwards is double s o b.

1 – See rule number 10, then 9, then 8, then…

New Web Site went live today!

Blue Skies Unlimited’s new web site went live today . I hope you find it informative.

One of the new features is this BLOG section where I will be posting thoughts on a wide range of topics.

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Thanks for visiting!