I’ve already whined about Merrill Lynch and the tone deafness that accompanies spending $1.2 million on an office. And progress, too — when publicized, John Thain agreed to give the money back. Now Citigroup, that little bank that the American taxpayer has been investing billions of dollars to stay afloat, decides to buy a new… Continue Reading
Tag Archives: United States
Screw long hours — management needs to optimize resources
In tough economic times, we’re told by pundits that it is important for us to work longer hours. As if working longer hours will protect our jobs or help our employer achieve objectives. Balderdash. Management’s responsibility is to delegate work and assign the tasks so that objectives can be met. Yet, the the reality of… Continue Reading
The Review, 2008
2008 was a tulmultuous year for most everyone. Layoffs, recession, changes in income, how work is done and how we approached opportunities changed in 2008. We were forced to struggle more and finally decided that change was needed. Here’s what I’m thankful for in 2008: A new President here in the United States. If 30%… Continue Reading
Risk? Not for executive management
This, unfortunately, needs serious fixing. When executives at companies claim they are highly paid because there are good times, they need to be poorly paid when there are bad times. Not so much. Witness AIG: American International Group Inc., the insurer whose bonuses and perks are under fire from U.S. lawmakers, offered cash awards to… Continue Reading
Embrace the Chaos of Work
We are told to embrace change, right? Well, we’re in a period where change really doesn’t cover what needs to be embraced. Instead, I propose that we need to embrace chaos. Yes, chaos. Think of the extraordinary circumstances in the business world today: hundreds of billions for bailouts of financial companies – who still are… Continue Reading
Career Management Monday, December 1, 2008
Let me tell you: it was wonderful being off the grid for a four-day Thanksgiving weekend! But, back to work and having a ton to get done over the next several days. The long weekend served up some good as well as sobering news for knowledge workers: Chicago plant workers stunned by bonus In a… Continue Reading
Happy Thanksgiving, 2008
In the United States, it is the national Thanksgiving holiday. I’ll be “meeting under the moon” with my family and enjoying a full four-day holiday weekend. See you on Monday!
Another Monday, Another Bank Bailout
Career Management Monday, November 24, 2008
Another week and yet another US bank gets a monster bailout from the taxpayers. This time, it is Citigroup, the worldwide conglomeration of financial services that has a management team that has yet to prove it knows how to make money. Even Saudi Princes have a tough time with their investments in the firm.
Details on the bailout are everywhere on the news; the cautionary tale comes from Paul Krugman, Nobel Prize winner:
“A bailout was necessary — but this bailout is an outrage: a lousy deal for the taxpayers, no accountability for management, and just to make things perfect, quite possibly inadequate, so that Citi will be back for more.”
The problem with these bailouts is that they are inconsistent – some invest in the bank with preferred stock, some just backstop losses, some do a combination of both and AIG just gets whatever it wants. The problem with this inconsistency is that everyone is now playing be different sets of rules and governance. That reduces transparency to something worse than the current blindness.
Plus, the program is now punishing those that did the right stuff during this crisis. It is now almost if you don’t have a bailout from the taxpayers, you can’t operate on a level playing field.
Impact on knowledge workers
The bailouts, easy to get for financial companies and tough to get for automakers, will prolong the pain in the economy. Sure, all sorts of financial institutions failing would be horrible and I’m not sure it would be right to let them fail. But the actions by the government have not eased credit. In fact, banks are continuing to stick it to businesses and consumers with higher rates, bigger fees, and unwillingness to lend – even among their own banks.
After paying for their bailouts, it makes one totally frustrated at the “stick it in your face” attitude of the banks with rates and willingness to loan.
Plus, these actions continue to challenge your employment no matter the industry you work for right now. Inability to get credit and having to pay higher rates means an unwillingness by your management team to be aggressive with growth. Instead, cost cutting reigns – and you are the one that is easiest to cut.
Life in the cubes is tough at the moment. Make sure you fight through the adversity.
Serendipity Saturday, November 22, 2008
Thanksgiving Week here in the United States. YUM!
New Hosting Company for Cube Rules
Outside of taking a break from writing as much for Cube Rules during the holidays, I’ve also wanted to give the posting a break because of a problem: my previous hosting company has become steadily unreliable. This unreliable service translates to readers as “500 Internal Server Error” messages, long load times, “Hello, World” postings, and… Continue Reading