My Final Will and Testament – Influences – Reflection #9  — Part 1 People

images If you have gone this far with “My Final Will and Testament” you will not need the introduction that I have used for the past 9 Reflections.  If this is your first visit to my series of fourteen reflections than I suggest that you go back to number one and start there.  This link will take you to the first reflection in my series:  “Things that I Have Loved in Life.” You will get the background to my thoughts and desires concerning this series of Reflections in this first blog.

Imagine that this is the last day of your life on earth.  In the time that you have left, you want to leave a “Testament” for your family and friends. 

  1. These are the Influences (people, literature, and Music) that have shaped me.

There are many categories of things which I could describe that have shaped my life.  However, for reasons of expediency I have limited them to three: People, music, and literature.  I will briefly discuss some of the major formative experiences in each category.  On any given day, I could add or subtract several of these experiences and swap them out with others.  The things that have made a difference in my life are like the desert sands.  They shift and take various shapes depending on how the winds of my mind are blowing.  Because the elements of this reflection are so numerous, I am going to break them down into three parts.  In Part 1, I will reflect on the People who have made the greatest contributions to my life.  In Part 2, I will reflect on the Literature that has most influenced my ideas and thoughts.  In Part 3, I will describe the Music that has moved my feelings, my emotions, and my soul.

Part 1, People:

This is easily the most formative and impactful of the categories that have made me the person I am today.  This category includes the people who have had the most influence on my life.  People that I will never forget.  These people have all helped me to be a better person.  They have been positive forces in my life.  I will refrain from discussing those people who have had a negative impact on my life.  It should be noted that negative events can easily be just as life changing as positive events.  However, in this “Last” testament, I want to stay positive.  There are ten people I need to mention who stand out from the rest.  My apologies to anyone who I have left out who reads this blog and feels slighted.  I am listing these friends, counselors, and mentors in chronological order of appearance in my life.

Mother Fyndoca: (1956)

My fifth-grade teacher at Mount St. Francis Academy who knew that I was a rascal and a troublemaker but who also saw the potential I had.  She never let me off the hook for any mischief I did but she never let go of believing in me.  She was always there to encourage me with compassion and understanding.  She died to young from cancer.

Kwame Rice: (1971)

I met Kwame while taking a Sociology class at Rhode Island College in 1971.  We had a diverse group of students including Latinos, African Americans, and Italian Americans in the class.  Providence is a very heavy Italian Community.  It is also quite a melting pot for other cultures.  The major focus in the class was going to be on Race Relations and Prejudice.  The class was excited because we reflected quite a bit of diversity and experiences.  We anticipated many interesting discussions.

The Professor must have been worried about conflict because he selected Judaism as the subject for our talks.  There was not a single Jewish student in the class.  Kwame, an African American student, who was also a returning veteran, and I met after class.  Both of us were equally annoyed by the Prof’s decision.  We jointly decided that whether he wanted to or not, we were going to bring up other ethnic groups in the class for discussion as well as Jews who faced discrimination.  The class had so much diversity that we were not going to let this opportunity pass.  It was clear from the start that Kwame and I were kindred spirits.

It is fifty-three years later, and we are still good friends and brothers.  Kwame is now a Pastor, and we regularly have discussions on the problems of America in terms of religion, politics, race, and a host of other subjects.  Over the years, these talks and our friendship have given me a whole different insight into the history of America and how Black people and other minorities have been treated very differently than White people.  Kwame cares deeply about people and trying to create a just society for all people regardless of race or religion.  Now that he is retired, he devotes much of his time to helping Veterans at a center in Providence.  He is still fiery about his passions and convictions and has not given up on any of them.

Margo House: (1976)

Margo was a counselor and a good friend.  During my separation from my first wife, she more or less adopted me.  I was alone with no job, no friends, no family in a town 2000 miles from where I was brought up.  Margo invited me on trips with her family and helped me to see that there was still light at the end of the tunnel.  She was a kind woman who never took any money for the counseling and advice that she gave me.

Evelyn Rimel: (1977)

Dr. Rimel was my counseling instructor when I took the MS program in Counseling at Stout State University.  She was open-minded and never gave negative comments to any students.  She showed her compassion for all of her students and did not discriminate among the students.  Every student had her complete attention and help when needed.  She could demonstrate the power of love and compassion to change lives far better than anyone I have ever known before or since.  She loved all people and it showed up in her efforts to help make her students into change agents for a more loving world.

Sister Giovanni: (1979)

I was hired as a counselor/teacher at Guadalupe Area Project (Gap) in West Side St. Paul by Sister Giovanni.  Sister G as she was known to all was a direct forceful woman who brooked no stupidity or false pretenses from anyone.  She was the founder and leader of GAP.  You might say that she could be as hard as iron and as soft as cotton.  She was never ambivalent, but she always knew the right amount of force to apply to any problem or person.  She accepted me for the teacher that I was and helped give me guidance to become a better teacher both mentally and spiritually.  During my hiring interview, I told her that I was an Atheist, her reply was, “I don’t care what your religion is as long as you are a good teacher.”

Bill Cox:  (1980)

The separation with my first wife led me to a period of introspection and self-reflection into my life, my heart, and my emotions.  I realized that I had a great deal of blame for the problems in my marriage.  Many of these problems stemmed from the macho culture that I grew up in.  It is a culture that America seems to be imbued with.  Women are often treated as chattel and as second-class citizens.  Somehow I found my way to something called the “Men’s Center.”  It was in the heart of downtown Minneapolis on Park Avenue.  The director of the center was William (Bill) Cox.  He was a retired Methodist Minister.

The Men’s Center hosted a weekly gathering of men who wanted to discuss what it meant to be a man today.  What were the pros and cons of the messages that society sent us about being male in America?  Something akin to the Women’s movement was going on during the early 80’s and the Men’s Center and Bill Cox were at the heart of it in Minnesota.  There were numerous new books coming out on the subject of male masculinity.  We even developed a yearly conference on masculinity in Minnesota.  I eventually took a role in this movement and presented several workshops.

Bill was a unique individual.  He was instrumental in founding and funding the Men’s Center.  He lived and breathed the desire to help other men.  He spent most of his waking time trying to grow the Men’s Center.  Over the years, Bill and I became close friends.  We did workshops and talks together on Masculinity.  He was another brother in my life along with Kwame.  When Karen and I were married in 1989, Bill was the minister for our wedding.  I could always go to Bill for advice and support.  He was one of the kindest, most intelligent men I had ever met.

Dr. W. E. Deming (1986)

I met Dr. Deming for the first time at one of his five-day Quality Improvement seminars in San Francisco.  Dr. Deming forever changed the way I looked at work and productivity.  I credit three people as geniuses that I have read about in my life:  Sigmund Freud, Albert Einstein, and Dr. W. E. Deming.  Of the three, I have only had the pleasure of knowing Dr. Deming personally.  I worked with Dr. Deming during the period from 1986 until he passed away in 1993.  My relationship with Dr. Deming was one of the great adventures of my life.  Dr. Deming could be charming or to say the least disarming.  He was never one to mince words or as they say to “suffer stupidity lightly.”

I had joined Process Management International (PMI) after completing my Ph.D. degree in 1986.  PMI was founded by three former managers from Control Data Corporation in Minnesota with the guidance of Dr. Deming.  The practice of PMI was based on Dr. Demings famous 14 Points for Management.  I was familiar with Dr. Deming but did not know anything about his points/principles.  At the conference with Deming in San Francisco, I was designated to be one of his two helpers.  My boss Lou Schultz introduced me to Dr. Deming.  Lou said to Dr. Deming, “I would like you to meet one of my new employees.  Dr. Persico has just graduated from the University of Minnesota with a Ph.D. in Business.”  Dr. Deming shook my hand while replying “Humph, business schools, teach you all the wrong things.  Ph. D in business a total waste of time.”   That was my first meeting with Dr. Deming.  I cannot say that I was totally enamored with Dr. Deming at this point in our relationship.

Over the years, I worked with Dr. Deming many times.  At first, I was willing to concede that he might have been right about some of the things that I learned in business school being useless.  However, the more I learned from Dr. Deming, the more “right” he became in his pronouncement about business schools teaching all the wrong things.  Later on, I was 99 percent sure that he was correct.  I learned more about business from Deming than I ever did in my five or so years at the University of Minnesota.

The teachings of Dr. Deming opened a whole new way for me to see the world.  There was good in this and bad in this.  The good was in teaching me what a force for solving the problems of the world a business perspective could be.  The bad was in raising my expectations about how things could be only to see smart business-people doing dumb things over and over again.  Dr. Deming used to say, “There is nothing common about common sense.”  Also, “You put a good person in a bad system and the system will win every time.”

Sam Pakenham Walsh:  (1986)

Sam was easily the most educated and one of the smartest men I have ever met in my life.  If there ever was a model or prototype for an educated Oxford man it would have been Sam P-W.  Sam was also a consultant at PMI.  I was assigned to work with Sam on my first consultant engagement with International Nickel Corporation (INCO) in Canada.  While I learned most of what I know from Deming about business, I learned everything about consulting with clients from Sam P-W.  Like Deming, Sam was direct and did not mince words.  I respect this in a man or woman and value it most highly in a friendship.  Sam and I became good friends over time.  We had our share of disagreements and arguments, but we never lost respect for each other.

One of Sam’s most powerful abilities was what endeared him most to me but often was his downfall with clients.  Sam was the quintessential intellectual.  He reminded me of Thomas Jefferson.  Sam read more and knew more about philosophy and science than anyone else I have ever met in life.  Up to the time that Sam died at the age of 86, he was still learning and studying new ideas and new theories.  Sam’s ideas could be very esoteric, and this often did not go over well with clients.  Only the most open-minded and astute clients who would take the time to understand what Sam was telling them were receptive to some of his ideas.  He was frequently discounted as being too intellectual.

When it came to the realm of intellect, I lost my primary benefactor when Sam passed away.  Never one to be pragmatic, Sam taught me about thinking and logic and reasoning.  He understood more about the Scientific Method and Process Analysis than anyone else that I have ever worked regularly with.   Being logical and rationale is an endeavor that with Sam in mind, I continue to try to develop in my life.

Dr. Hana Tomasek: (1987)

Dr. Tomasek was a refugee from the Czech republic who fled her native land after the Russian invasion of 1968.   Hana came to this country speaking little English and with only her husband Yara and two suitcases.  They fled in the middle of the night and somehow evaded the border guards to find freedom in the USA.  Hana had a Ph.D. in Chemistry, and her husband Yara was an inventor and mechanical engineer with several patents to his name.  Since she could speak no English she could not find a job commensurate with her knowledge, skills, and abilities.  Hana took a job in a piece work factory nights making jewelry until she learned enough English to find other employment.

When I met Hana, she had become a contract consultant with PMI.  She helped other consultants to develop teaching, consultant skills and methods for working with clients.  Hana helped me with several classes and seminars that I had to put on while I was working with clients.  Hana had the people skills that anyone would be envious of.  She could always get her ideas across without offending anyone.  While I learned my business skills from Dr. Deming and my consulting skills from Sam P-W, I learned my people skills from Hana.  We became good friends.

Over the years, Hana, Karen, Yara and I did many things together.  From canoe trips to parties and Fourth of July celebrations, our lives were enriched by our times together.  We eventually went to the Czech Republic and stayed with a friend of Hana who took us around Prague and the Czech Republic.  We met some of Hana’s other friends and relatives.  Hana never forgot her folks back home and regularly made trips to her homeland to start a consulting company there.  Her company helped to put the Czech Republic on the road to Quality Management and Quality Improvement.  She spoke many times at conferences in the Czech Republic and was much admired by all the people there as well as anyone she ever met in the USA.

When Hana passed away, some of us put a memorial bench up in her honor near the lake that she loved so much.  Hana was one of those unique individuals who help to make the world a better place.

Helen Boyer: (1999)

In 1999, I quit full time consulting and went to work for the Minnesota Metropolitan Council.  My title was Principle Consultant 2.  It was my job to put the Met Council on the right path to implementing a Quality Improvement Program.  Helen Boyer was the Director of the division that I worked in called the Environmental Services Division.  I had a boss directly over me, but I reported to Helen on a regular basis.  She was a severe but totally fair task master.  I was the expert in Quality Control, but she was the expert in managing a regional government body representing seven of Minnesota’s metropolitan counties including, Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington County.

Perhaps more than any other manager I have ever worked for, Helen gave me the opportunity to do the work that I was hired for.  She backed me up when needed and provided me with the time and labor to implement a large number of major quality improvement projects.  She never rejected any of my ideas out of hand.  In fact, I never remember her rejecting any of my ideas.  She always insisted on facts and data to support an idea, but she was one of the most open-minded people I have ever known.  Helen had a degree in Law and a degree in Chemistry which served her well as the leader of a division that was scientifically oriented but still rife with politics.

When I came to the Met Council, I was about a 1 in knowledge of Government politics.  With Helen’s help, when I left two years later,  I had graduated from a one to a five.  If I had stayed longer, I would have made even more progress.  However, “Ever Upward” was my financial motto back in those days and I left for a  great deal more money than I could be making in the Government.

Karen Blomgren:  (1983) Due to my “Special” relationship with Karen she is out of sequence. 

In 1989, Karen Blomgren Hinze and I went to China together.  We went there on our own and came back about two weeks before the Tiananmen Square Massacre on June 4, 1989.  The Chinese uprising had actually started nearly two months earlier when the Chinese Communist Party (CCP) general secretary Hu Yaobang died in April 19.  We spent three weeks traveling around China from about the third week of April to the second week of May.  During this time, we traveled from Shanghai, to Hangzhou, to Huangshan, to Nanjing and back to Shanghai.  We traveled by local bus, commuter bus, train, bicycle, foot, car, and even a gondola.  We traveled most of the trip by ourselves but a few times with some new friends that we met on our travels whom we remain friends with today.  During this trip, I bought Karen an engagement ring.

When we returned to the states, we planned our marriage.  On Sept 5th, 1989, Karen Blomgren Hinze became Karen Blomgren Persico.  Karen does not actually use the name Blomgren which is her maiden name.  However, I have a difficult time not thinking of her as a Blomgren since she was so close to her Mother and Father.

Karen grew up as an only child.  She may have been somewhat spoiled.  Nevertheless, Karen’s parents not having enough money to pay her way to college for a degree in Nursing, Karen worked and paid it all off herself.  She has never shown any resentment for her parents not being able to give her a free ride.  Karen has never expressed anything other than gratitude and admiration for the way that she was treated as a child and for the lessons that her parents taught her.

Karen is one of the kindest and most optimistic people you will ever meet.  She is also one of the most frugal humans I know.  She would rather shop at a Goodwill or Salvation Army than go to any regular retail store.  The other day, I wanted to take her to some upscale designer outlet shops in Tucson to buy a new purse and dress for my 60th high school reunion.  I told her “why am I still working part-time if we can’t afford some luxury items once in a while?”  Fourteen years down here and we had never been to even one of these fancy outlet shops.

We drove down and went from outlet store to outlet store.  We saw all the big names, Michael Kors, Prada, Coach, Ives Laurent, and many others.  Karen looked and looked.  She picked out products that had sixty percent off.  A purse that went for 500 dollars was reduced to 200 dollars.  Item after item she put back on the shelf or rack.  The same thing happened in every store we went to.  Frankly, I was bewildered at how much many of these products still cost even with a sixty percent discount.

I finally said, “how about we go back to Casa Grande and check out the Marshalls and Ross stores there?”  In the blink of an eye, we were back in the car and headed north to Casa Grande.  Once we arrived in the Promenade parking lot, It did not take Karen 20 minutes to find a nice dress and a new purse.  I think the total amount for both was about 60 dollars.  No one could ask for or find a better wife if they went to every continent in the world.  Karen is always ready to give me a back rub when I need it.  She is a great cook.  Sews many of the things that grace our house and is always ready to take off with me on some of my adventures.  She is not a complainer even when my adventure turns out to be a dud.  Karen is optimistic, always positive and hopeful as well.  Many people have told me that it is a miracle that she puts up with my pessimism, my radical politics, and my negativity towards the world.  If I were to use the word blessed, here is what I would say “I am blessed to have Karen for my wife.”

Well, that’s all.  I could have said a lot more about each of these wonderful people.  I should also have remembered many other people whom I have passed over.  Alas, our allotted space and time in the world never permits us the ability to recognize all the good deeds that others have done for us.  My apologies again for anyone that I have slighted or overlooked.

Next, I will publish Part 2 of my reflections on the Influences that have shaped my life.  More specifically, Part 2 will deal with the “Literature and Authors” that have shaped my thoughts and behaviors.  

 

 

 

 

 

 

Taking It to Extremes – Part 1 of 5

A number of years ago, I wrote an article about the famous “Golden Mean” of Greek philosophy.  The mean was basically a rule that said the best way of living is to balance extremes.  Another way of looking at what this rule implies is that evil or bad things happen when we over do something.  We need to take all things in moderation.  Thus, drugs, smoking, guns, watching TV etc., are not evil or bad in themselves but when we take them to extremes they became dangerous and counterproductive.

I sincerely and whole-heartedly believe in this rule.  However, recently I was thinking about it from another perspective.  I was reflecting on the problems of government today and the extreme polarization that now exists in American politics.  The more I thought about it, the more I realized that the Greek rule was not quite strong enough.  It needs something more.  Perhaps, an extension or a corollary to make the rule stronger.  There are too many instances, where the rule taken at face value does not do enough justice for the circumstances. 

For instance, when I was teaching business I always told my students that organizations needed to balance efficiency with effectiveness.  Efficiency is doing things right, while effectiveness is doing the right things.  Organizations do not need to balance these two concepts as you would a seesaw, but they need to be constantly aware of the tension and perhaps conflict that can exist between the two.  It is an ongoing struggle but never a question of equal balance because the proper balance will never be static.  There are many other polarities in life where it is not really a matter of moderation or balance but actually more a matter of dynamically blending and using synergy to impose a sort of order between the two extremes.  The concept of Hegelian Dialectics comes to my mind. 

Dialectical thinking can be described as: “The ability to view issues from multiple perspectives and to arrive at the most economical and reasonable reconciliation of seemingly contradictory information and postures.”  This is a much more complex process than simply balancing extremes.  The more I thought about it the more I decided to add a corollary to the Greek Rule.  Since I think time has easily proved the value of the Golden Mean, a corollary by definition is a proposition that follows from and is appended to one already proved.  My corollary is as follows:

John’s Corollary:

Anytime, one concept in a set of opposing concepts is allowed to dominate the opposing concept, extreme dysfunction will result 

I want to discuss this more by using five pairs of concepts that I think are critical to our world today.  I want to show you how the distortion created by proponents of each concept are dangerous to life as we know it.  I do not use the word dangerous loosely or frivolously or for effect.  The battle between these ideas is destroying life as we know it on this planet.   The proponents of each side of these polarities seek to destroy the proponents on the other side.  Rather than looking at things from a systems perspective and trying to dynamically adjust the system, opponents are bent on allowing one idea to dominate to the exclusion of the other idea.  Witness the name calling between conservatives and liberals today.  Each side demonizes the other side and assumes God is on their side and Satan is on the other side.  Here are the five pairs of concepts we will look at in the next few weeks.  We will start by looking at number one in my list and following the order given. 

  1. Efficiency versus Effectiveness
  2. Growth versus Development
  3. Society versus the Economy
  4. Conservative versus Liberal
  5. Rights of the Individual versus Rights of the Group
  1.  Efficiency versus Effectiveness:

I noted that I used to teach these concepts to my business students to emphasize the role and responsibilities of a corporation or business.  Taken from a macro perspective, these two ideas might seem unimportant.  However, when you realize that our entire government and system of capitalism runs on both of these concepts, their importance cannot be understated. 

Business seems to sheer towards efficiency with less concern for doing the right things.  If they were more concerned with doing the right things, there would be less of what economists’ call “externalities.”  An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.   Externalities can be either positive or negative in terms of their consequences for society.   Negative externalities include such issues as:  water pollution, air pollution, soil contamination, fumes, dangerous side effects from drugs and many others.  Businesses will invariably try to ignore the costs of these side effects and thus they get passed on to the society.  It is society and environment that suffers from the effects since the consumer or customer generally benefits from the lower costs of production guaranteed by the business passing the costs of the negative externalities on to the world. 

The opposite extreme is seen in government and this is the extreme reflected in how the government tends to manage its costs.  The government focuses on effectiveness.  That is trying to do the right things.  This is actually why we have a government.  The government exists to ensure that things needed by society are provided without regard to costs.  The “without regard to costs” becomes a problem because too often government agencies seem to provide services with little or no emphasis on cost management.  Senator William Proxmire was well known for his “Golden Fleece” award in which a government agency would be bestowed an award for its gross mismanagement of costs.  Over the past decades, conservatives have increasingly tried to take the management of many government functions away from various government agencies due to their gross negligence and ineptness when it comes to management of budgets and costs.  Unfortunately, when put into the hands of a business that is singularly bent on efficiency the quality of the service in terms of its effectiveness may suffer.  One example of this is with our education system. 

Conservatives and Republicans and even some Democrats have decided that public education is inefficient, and that business can do a better job of providing education to American students.  A business exists on a profit and loss model.  However, the idea of providing a quality education to all Americans on such a basis is flawed.  Schools that are democratic institutions cannot cherry pick their students.  In a typical public school, you have a bell-shaped curve of students in terms of both aptitude and attitude.  A private school or charter school will select students with higher aptitudes and attitudes.  This of course, begs the question of how and where the students with lower aptitudes and attitudes will get educated? 

The education of Americans youth becomes an either-or proposition with losers and winners.  No other solutions are looked at as groups coalesce around extremes.  Either we have public education, or we have for-profit education.  There are other solutions, but they involve a radical restructuring of our entire educational system which neither side wants to contemplate.  I do not see public education as the answer to education nor do I see private and for-profit charter schools as the answer.  See my blog on the subject titled:  “Creating a Twenty First Century Education System.”

I could point to dozens of examples of the stupidity of businesses that focus more on costs than effectiveness.  In my twenty some odd years as a management consultant, I worked with many businesses to help create a synergy between efficiency and effectiveness.  The Deming Philosophy exhorted organizations to use systemic thinking to create this synergy.  Much of my focus in consulting was with helping organizations do the right thing and to do things right. 

Conversely, when I was working with a government organization, I would help the organization learn to do things more efficiently.  I was often so frustrated with the inefficiency and economic stupidity of some government agencies that I thought they should simply be abolished.  When Governor Perry was asked which government agencies he would eliminate, he could not name three.  I could immediately think of six that I would abolish. 

I am no friend of inefficiency.  Inefficiency is a crime upon humanity.  It robs people of valuable time and resources and money.  It makes life more difficult by waste and rework and a callous disregard for the abilities of employees.  I am also no friend of ineffectiveness.  What good are products and services if they cannot do what they were designed to do or if in providing their intended functions, the unintended side effects are a disaster for our society or environment.  Corporations need to provide a quality product that is wanted or needed by a customer “but not just at a price they can afford” but at a price that allows the negative externalities to either be avoided or addressed.  In other words, costs of pollution and environmental degradation must be paid for by the organization and its customers. 

I think you should now understand from much of my conversation above, the inherent dangers of not addressing both efficiency and effectiveness in the operations of any business or organization.  As I have argued, ignoring either concept or taking either one to an extreme will create a dangerous situation that will become dysfunctional to life.

My next blog will look at the battle in our world between growth and development.  This is a battle that is destroying our environment and lives throughout the world.  The following has been noted by the Center for Climate and Energy Solutions:

  • Communities, builders, homeowners, and forest managers can reduce the likelihood and impacts of wildfires by:
  • Discouraging developments (especially residential) near fire-prone forests through smart zoning rules.
  • Increasing the space between structures and nearby trees and brush and clearing space between neighboring houses.

Thanks for reading.  Please leave any comments or thoughts you might have on my blog site.  Or email me at persico.john@gmail.com

It’s the Economy Stupid! The Five Myths of Capitalism – Part 5 of 5

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I stated in parts 1-4, that unless we change our attitudes and policies regarding Corporate Capitalism, it will destroy our country, our way of life, our freedoms, and our environment.  Furthermore, we will undoubtedly take some of the rest of the world along with us.  This is a serious accusation and one I do not take lightly.

I have already described four of the five myths that are largely responsible for the mistaken policies and laws that have allowed Corporate Capitalism to become a dangerous disease.  A disease that is infecting our government and policies in myriad ways and causing untold damage to our country and the world.

In this blog, I will describe Myth #5 and how it contributes to the problems we are now facing.  Myth #5 is:

What’s Good for Corporate America is Good for the USA:

shanghai-gm-monoply-guy-720x340 (1)A version of this myth is the “Too big too fail idea” widely heard during the “Great Recession” and now during the Coronavirus epidemic.  General Motors was one of the first giant corporations in America and even as late as 2019, it was ranked 13th on the Fortune 500 rankings of the largest United States corporations by total revenue.  In 1952 during his nomination hearing for Secretary of Defense, Charles Wilson (former CEO of General Motors) was asked if he could make a decision as Secretary of Defense that ran contrary to the interests of his former company.  He replied with the now infamous remark YES but that he could not conceive of such a situation: “because for years I thought what was good for our country was good for General Motors, and vice versa.” — Wikipedia

220px-23_Things_They_Don't_Tell_You_About_Capitalism_cover_artThe foregoing belief in the common interests that corporations shared with America came to epitomize the ideology of Corporate America.  American corporations then used the media and astute public relations to convince the majority of US citizens that they are indispensable, and that the welfare of the average person depended on the welfare of the corporation.  To put it another way, the interests of a giant corporation are claimed to be synonymous with the interests of the average person. “What is good for America’s Corporations is good for You.”  “What is good for Microsoft, Google, Amazon, Exxon, Facebook and Pfizer is good for you.

This belief system, that corporate welfare is synonymous with our country’s welfare, is inevitably betrayed by at least two major factors.  These include: Externalities and Short-Term Thinking.

  1. Externalities (Lack of responsibility)

imagesWhen a company makes and sells a product, it is no longer responsible for the effects of that product on either the buyer or the environment.  Unless evidence can be shown that somehow the corporation either lied or had some kind of criminal intent in the sales process, the consumer and society are responsible for the negative effects that a product or service might have.  For instance, oil companies sell gasoline but are not responsible for the effects of polluting the atmosphere by burning gasoline.  Another example is the packaging that many companies use for their products.  Amazon is notorious for over boxing even the smallest products.  The boxes must then be thrown away or recycled in a landfill.  However, the cost of this recycling is not born by Amazon but ultimately by the taxpayer who must pay for the recycling through taxes or direct payments.  Meanwhile, Amazon makes a great profit by being able to take advantage of tax loopholes and escaping any costs.  These costs are called in economic terms: “Externalities.”

“In economics, an externality is the cost or benefit that affects a third party who did not choose to incur that cost or benefit.”  Wikipedia

short-termism

  1. Short-term thinking

Corporations will tell you that consumers benefit from the aforementioned transfers of costs.  The consumer pays a cheaper price for the product than he/she would if the total costs to the environment were factored in.  However, this is only considering short-term costs.  In the long term, the consumer/taxpayer pays a much greater cost.  For instance, the pollution in the atmosphere has caused the overall temperature of the earth to rise resulting in global warming.  This warming has destabilized weather patterns all over the earth resulting in extremes of weather:  more frequent tornadoes, stronger hurricanes, longer droughts, greater rain in many areas resulting in flooding.

The impacts of these weather changes have already cost the world billions of dollars.  One study found that: “Climate change could directly cost the world economy $7.9 trillion by mid-century as increased drought, flooding and crop failures hamper growth and threaten infrastructure.”Climate impacts ‘to cost world $7.9 trillion’ by 2050.  This study does not measure the misery to human beings all over the earth in terms of famine, pestilence and the impact of more and more “natural” disasters.

So, what we have here is the typical example of “Short-Term” thinking on the part of our Corporate Capitalistic economic system.  From worrying about the daily price of their stocks, the quarterly dividend, the monthly financial statements and the quarterly financial reports, corporations are guided by short-term thinking.  They will compete for short-term profits at the cost of destroying our environment, our way of living and ultimately our world.  This is the nature of the beast as it is bred and chartered.

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When I was a store manager at the now defunct W.T. Grant Company, we used to get a report each month which showed us our store ranking in relation to the 200 or so other stores in our division.  Our regional management would send these out every month to motivate us to raise our ranking.  Thus, if we were ranked 76th out of 200 in sales and profits, it would behoove us to try to improve.  However, these rankings were more or less random since some stores would always be in the top rank because of their size or other demographics.  Even without changing a single factor in our operation, the next month might see our ranking go up to 50th.  This could simply mean that our seasonal sales had kicked in before some other store areas.  The following month we might drop to 125th out of 200.

Each month brought a great deal of shifting between stores.  One soon learned that these reports were worthless.  We regarded them as a big joke.  They told us nothing except that management was focused on the short-term and that it could not look longer ahead than a month.  I worked for W.T. Grant for two years and left 4 years before they went bankrupt.  At the time of their bankruptcy, they were the largest American corporation to ever declare bankruptcy.

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A number of years ago, the average lifespan of an American corporation was 60 years.  The first list of Fortune 100 companies published in 1954 showed that less than fifty years later more than ½ of these companies no longer existed.  A corporation which is regarded as a person by such ridiculous decisions as “Citizens United” lives considerably less than the lifespan of an average person.  Even that limited a lifespan for a corporation has dropped.  The average age of an S&P 500 company is now under 20 years, down from 60 years in the 1950s, according to Credit Suisse.

Why? You may well ask.  The answer is simple.  For two reasons:  Greed and Stupidity.  Hardly a corporation in America does not create a “strategic plan.”  I have helped formulate and facilitate many a strategic planning session.  The most difficult part of planning is to get companies to think long-term.  Partially, this is due to the extremely volatile nature of business and the competition that companies face.  An even bigger part of the problem is the nature of management thinking.  There are some notable exceptions to this prevalent thinking:

“In Warren Buffett’s 2010 annual letter to shareholders he mentions the advantage Berkshire Hathaway has because it doesn’t focus on short term results”:

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“At GEICO, for example, we enthusiastically spent $900 million last year on advertising to obtain policyholders who deliver us no immediate profits.  If we could spend twice that amount productively, we would happily do so though short-term results would be further penalized. Many large investments at our railroad and utility operations are also made with an eye to payoffs well down the road.  At Berkshire, managers can focus on running their businesses: They are not subjected to meetings at headquarters nor financing worries nor Wall Street harassment. They simply get a letter from me every two years and call me when they wish.”  — Dr. Deming’s 7 deadly diseases by John Hunter

downloadDr. Deming wrote reams about the failure of management to balance what he called the “Problems of Today” with the “Problems of Tomorrow.”  I would typically hear when beginning a consulting engagement numerous reasons why “it could not be done.”  One of the most common excuses was expressed colloquially as “We are up to our ass in alligators.”  Another excuse was “We have too many fires to put out.”  I was fond of reciting Dr. Deming’s comment that, “Putting out fires is not improvement.  Finding a point out of control, finding the special cause and removing it, is only putting the process back to where it was in the first place. It is not improvement of the process.” — Out of the Crisis,  W. E. Deming

I have already mentioned in Part 2 on the Efficiency Myth that most corporations never really understood the idea of continuous improvement.  The focus of management is for the most part, a focus on quick fixes and short-term thinking that can bring quick profits regardless of the hidden costs and externalities.  Thus, the belief that what is good for a corporation is good for its citizens is not just false but dangerous.  To hold this belief is like trusting a rattlesnake not to bite you.  You might think that the rattlesnake is your friend until the day it bites you.  You are no more a friend to an American corporation than you are a friend to a rattlesnake.

41bf5SeawKL._SX331_BO1,204,203,200_I have sat in many boardrooms for many planning meetings, and seldom did I ever hear an executive worrying about the environment or the hidden costs of externalities.  The oft assumed legal mandate of a corporation is to make a profit.  However, corporate law states that a company does not have to pursue profit maximization at all costs.  This is idealistic though since the tendency in the marketplace and short-term thinking push corporations to ignore other considerations and pursue profits at all costs.  It is also much easier to measure profits than it is to measure a “good” to the environment or a “good” to the social system.  Thus, generally profits will trump other considerations in running an effective business.

Conclusion:

What is to be done?  How do we restore the proper balance of power to ensure that Corporations serve the country and not that the country serve the corporations?

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I think it will require the following major actions:

  1. We must overturn the US Supreme Court’s ruling in Citizens United
  2. We must change corporate law to do the following:
    1. Place size limits on corporations
    2. Place limits on the number of companies a corporation may acquire
    3. Regain citizen control by changing the corporate charter
  3. We must place limits on the exercise of lobbying
  4. We must stop corporate donations to political candidates
  5. We must place limits on the hiring of corporate executives to manage and oversee the government agencies that regulate their industry

There are many other things that can be done if we as citizens recognize that we have the power to take control of corporations.  We have the power to insure that they are acting in the public interest and not the other way around.  Madison Avenue has convinced Americans that what is good for Corporate America is good for the USA.  Nothing could be further from the truth.  It is time we take back our power.

“Corporate social responsibility is measured in terms of businesses improving conditions for their employees, shareholders, communities, and environment. But moral responsibility goes further, reflecting the need for corporations to address fundamental ethical issues such as inclusion, dignity, and equality.”Klaus Schwab

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This is an excellent report by the Roosevelt Institute.  If you are interested in details on how Corporate power can be reigned in.  You need to read this report.  

https://rooseveltinstitute.org/publications/untamed-corporate-financial-monopoly-power/

 

The Thirteenth Greatest Mystery of All Time:  How can I Provide More Value to the World and Get Paid for It? 

Business-Consulting1If you have a good memory, you will note two facts. One, I skipped mystery number 12.  Two, I added a 13th mystery to my series of All Time Greatest Mysteries.  Call it a “baker’s dozen.”   Actually, this is a rather shameless advertisement for my services.  I have posted over 95 blogs on this site and nearly 600 blogs at www.timeparables.blogspot.com  and never one ad.  Today, I am posting an ad for myself.  I want to consult, teach, train, speak, lecture, educate, facilitate and help organizations innovate in the areas of cost reduction, strategic thinking, quality improvement, customer service, innovation and revenue generation.  Over the years, I have helped many profit and non-profit companies by solving problems and creating solutions to their most pressing business needs.

“Don’t think of your website as a self-promotion machine, think of it as a self-invention machine.”  ― Austin Kleon

I am now looking for potential clients that need the help of an honest, hardworking, creative and innovative consultant.  Over the years, my clients have made amazing improvements in all areas of their business including:  increased revenue, reduced operating costs and greatly improved customer loyalty.  I enjoy a collaborative working relationship with clients wherein I bring the best of twenty six years of organizational development experience to the client and meld this to the knowledge and systems perspective that is part of their inside working experience.   consulting_concept1

“Try not to sound like those singer-songwriters that go on and on with ten-minute, barely intelligible stories that everyone endures until the next song starts.”  ― Loren Weisman

You might be wondering:  “How do I fit into this marketing picture?”  If you know of any organization that is in financial difficulty or any organization or manager that simply wants to be better able to compete in a global market, please send me their names or send them a link to this blog.  I have a full-profile and resume at LinkedIn and examples of some presentations that I have used for organizational development at Slideshare.net.

I have a website at www.johnpersico.com  that displays my model of organizational excellence and some of the tools that I use in the quest for enhanced organizational performance.  I do not use a cost cutting model of organizational growth and change.  My models are all based on doing things better, smarter and more effectively.  Over the years, I have learned from such management experts as: W. E. Deming, Kaoru Ishikawa, Peter Drucker, Herbert Simon, Noriaki Kano, Yoji Akao,  Joseph Juran, Kenichi Ohmae and many others whose names I have now forgotten but whose lessons and models I have assimilated.  11596153-business-consulting-concept-in-word-tag-cloud-on-white-background2

“I’ve said it before, and by gosh, I’ll say it again — don’t be afraid to toot your own horn.”  ― Emlyn Chand

I have conducted hundreds of seminars, online classes, workshops, talks, training sessions, team projects and consulting engagements with government, education, for-profit, manufacturing, healthcare, transportation, IT, mining and retail industries.  I would be happy to speak to anyone to see how I can help them reach their goals or simply plan a strategy to help them more effectively accomplish their vision and mission.  My vision has been the same now for 25 years:  To Live a Healthy, Useful and Wise Life.   

“The true basis of morality is utility; that is, the adaptation of our actions to the promotion of the general welfare and happiness; the endeavor so to rule our lives that we may serve and bless mankind.”  —- Annie Besant

Please take 3 minutes to review my video.  I was asked to create a video for a potential client that wanted me to showcase my facilitation and teaching style.  This short video was the result.  Please feel free to pass it on to other people.  If it goes viral like Gangnam Style, I may have to create a dance to go along with it.

John Persico Consulting and Training Video 

Thank you for your help.  

I promise to post Mystery Number 12th this coming week.