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Following up on TEA and Robert Scott
Thursday, July 12th, 2007

A couple weeks ago, an investigation revealed some questions about how the Texas Education Agency handles contracts and Robert Scott, the agency’s second in command, was alleged to have engaged in some violations of contracting policies.

Over the last couple of weeks, the details have become even more interesting. 

It was alleged that there was a case of mistaken identity.  Rather than the violations occurring by Robert Scott, they were committed by a Rob Scott (who also is in education).  Rob Scott denies the allegations.

Yesterday, the Dallas Morning News’s online site reported that the Texas State Auditor is looking into the situation to determine what has occurred and whether any rules were broken.

Is anyone benefiting from this debacle?  TEA, Rob Scott, Robert Scott, and the investigators are not doing anyone any favors here.  It is a bit like having functional areas in a company pointing fingers at each other…  The more finger pointing each one does, the worse everyone looks. 

It is time to get beyond this issue.  TEA representatives need to work and play well together.  Here is one way for our public servants to fulfill their obligation to the residents of Texas and their children… 

First, help us understand what has occurred.

Second, accept responsibility for your roles in the situation and the resulting media feeding frenzy.

Third, implement the punishment that is associated with the actions that are involved under agency rules.

Fourth, the state employees who are throwing out the red herrings, if any, should reimburse the state for the costs they have caused.

Fifth, a plan should be developed to ensure this issue does not arise again.

Sixth, TEA needs to move on with the business of educating children.   

Is there anyone who would be harmed by this plan?  Is this plan anything other than what is in the best interest of all parties, as well as the children of Texas? 

 

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Are public companies engaging in long-term planning on a short-term basis?
Thursday, June 28th, 2007

A discussion with a friend from a major company this morning raised a discussion topic that warrants careful consideration on many different levels… 

Today, public companies are under tremendous pressure to deliver financial results to their shareholders every quarter.  In such an environment, it is very difficult to participate in effective long-term planning.  It is difficult to commit scarce resources to major improvements and upgrades, unless the improvements and upgrades will lead to bottom-line results quite quickly. 

Are public companies engaging in long-term planning on a short-term basis?  What are the ramifications of the emphasis on quarterly results, rather than taking a longer-term focus?  Is this trend going to improve, or only become more pronounced as time goes by? 

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Cheating in business school?
Sunday, June 24th, 2007

This week, Yahoo published this article about cheating in business schools.  According to the article, only three of the 25 top schools were able to provide specific data about ethical violations involving students.

In the real world, I knew of students who talked about having their secretaries and assistants write papers and do the homework for them.  Of course, the secretaries and assistants did not receive the degrees. 

Business school was a sharp contrast from how law school handled ethics.  At the law school I attended, even revealing the numeric code assigned to you for finals was an honor code violation that carried expulsion as the penalty.  

How important is it that business schools detect cheating?  What steps should be taken to detect and deal with cheating in MBA programs?  Are people who cheat in school likely to follow the rules once they graduate?

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Kudos to American Airlines
Tuesday, June 5th, 2007

Big companies often get a lot of criticism.  As a result, it is only fair to give them a compliment when they deserve it.  That’s my view anyway.  Here is a case of American Airlines solving a problem… 

Last week, I was on a flight from DFW to Portland (OR) aboard American.  The flight was delayed due to weather for eight hours.  The luggage was on an indirect flight with one leg of the trip going through a different airline.     

American set the expectation by telling me that the luggage was not going to be on my flight and would arrive later.  They also provided specific instructions for dealing with the situation. 

As expected, the luggage was delayed.  American committed to deliver the luggage the following afternoon by shipping it to the nearest airport and then having someone physically drive the luggage for two hours to bring it to me. 

This was done at no additional charge.  It took a bit longer than they expected because there were so many flights delayed.    

The destination was in the middle of Siskiyou National Forest on the Rogue National Wild and Scenic River.  Nonetheless, American walked its talk!

Having a plan, setting expectations, and communication helped American meet its customers’ expectations.  What does this mean for your business?

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Happy Memorial Day
Monday, May 28th, 2007

Memorial Day means many things to people in the US.  For some, it is a day off from work.  Others see it as the start of the summer and the vacation season.  It is also a day of sales in business. 

Memorial Day is all of these things because people were willing to fight for our country.  In some countries, the veterans would be seen as being superior to others.  What makes our country great is that veterans are ordinary people called on in times of need.  When called, these ordinary people do extraordinary things.

Rather than looking to others to do great things, in the US, each of us is expected to do them.  When faced with a difficult choice, great Americans do what is right, even when it is difficult and requires personal sacrifice.

I hope that as we enjoy the day off from work, the picnics, and the other events and activities today, take a moment to reflect on our country and the people who have made given their lives so that each of us may do so.

Be safe and have a Happy Memorial Day.

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Consequences of mistakes
Wednesday, May 16th, 2007

The saga with Paul Wolfowitz and World Bank continues. 

“Rather than fix blame for something that wasn’t wrong, we should all acknowledge our responsibility as I have acknowledged mine,” he said, conceding he made mistakes.

Wolfowitz continues to argue that he should not be fired as head of World Bank.  Acknowledging mistakes is a starting point.  It may mitigate the consequences in some cases. 

Does acknowledging mistakes correct the problem or eliminate the consequences? 

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Due diligence in donating to charities
Wednesday, February 28th, 2007

People are often happy to help, if they know that the assistance will be used in the manner that is intended. Many businesses are happy to help as well. A challenge that arises though is how to help people in developing parts of the world. Often, we have little or no experience with the other parts of the world or with charities in those areas.

We may not want to contribute through a government organization because, in all too many cases, our donations may be used to reduce the government’s commitment to the effort. How can we investigate the charity’s background and be certain that it is legitimate? Even if it is legitimate, how do we compare the charities to be sure that we are contributing to charities that will be more likely to use the money or other resources efficiently and effectively?

One resource that seems to be well organized is Charity Navigator.  While the organization has a nice website, its Charity Navigator’s credibility is increased by the substantive content on its website.  In looking at the website, one of the things that stood out was its decision not to accept donations from the charities that it rates.  While there are ways around such positions, its decision is consistent with an organization that wants to provide objective ratings.  Such donations could create bias in the ratings.  The organization says that it is registered under section 501(c)(3) of the Internal Revenue Code as a nonprofit.  This is a representation that can be easily verified.  Another fact that stands out is the organization’s history.  Many organizations choose to provide little history about themselves.  The more one says, the greater the risk is for an organization to make a mistake about its history.  Still if an organization says very little, it is possible to be left wondering if the organization is “real.”

According to Charity Navigator, ACCION International, Women for Women International, and Mercy Corps received high rankings.  After identifying potential charities, it is a good idea to discuss the charities with people who are involved in the area of interest to learn about their reputations.  After all, is due diligence any less important in selecting recipients of charitable dollars than in conducting strategic sourcing (procurement) and sales activities?

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