THE BROKEN SYSTEM OF IMMIGRATION
A vote is expected today in the Senate on the issue of immigration. Below is an editorial from our 4th Quarter issue in 2010. By:Kim DeCoste and Jan Mazotti Issue: Collaborative Leadership Section: Goverment
UNDERMINING OUR ECONOMY, SLOWING OUR RECOVERY AND HURTING AMERICA
IMMIGRATION.
Ok, now take a deep breath and keep reading.
Few topics inspire as much spirited debate as the topic of immigration reform and how to approach it. Most agree the system in place is not working, but consensus has yet to be found about how it can be approached and, ultimately, what successful immigration reform might look like. Enter Michael Bloomberg, Rupert Murdoch, and other notable business and political leaders.
Immigration is one of those words that evoke great emotion in most people. It can automatically make you think of the long traditions of the building of the United States to the rhetoric-driven yelling matches about illegal immigrant workers crossing the southern borders of the country in the dead of night.
While discussion on both ends of the spectrum exists, it is the competitive 21st century global economy that is the foundation for the immigration discussion of the Partnership for a New American Economy (the Partnership). The Partnership recognizes that immigration is not a Republican or Democratic issue—but an economic one. “CEOs and mayors see immigration very clearly. To keep America innovating we have to keep competing for the best and the brightest. Immigration is central to the discussion on the economy and the creation of new jobs,” said John Feinblatt, the Mayor’s Chief Policy Advisor.
Led by a bipartisan who’s who board of CEOs from Microsoft, Marriott, Boeing, Disney, and News Corporation, to influential Mayors from New York, Phoenix, Los Angeles, San Antonio, and Philadelphia, this group of committed leaders is pushing hard for immigration reform in this country. These leader’s direct companies that are extremely influential, and combined, employ nearly 600,000 people and generate approximately $210 billion in annual sales. The mayors represent some of the country’s largest cities—with a combined population of over 16 million residents.
Achieving consensus on what to do about immigration will be difficult since conservatives and liberals alike are living in the “sound-byte” of the moment creating a disconnect between reality and make believe. And, with the shift in Congress things may become even more heated. New York City Mayor Michael Bloomberg candidly argues that not addressing this issue now is “national suicide.”
So, instead of waiting for the Washington, D.C. elite to address the issue, the Partnership for a New American Economy is making the economic case for sensible immigration reform now. “We have given up on D.C. We are going to cities and employers to ask for help in building a legislative package that we will take to Washington,” said Kathryn Wylde, President & CEO of the Partnership for New York City, the city’s leading business organization. Feinblatt echoed Wylde’s thoughts and said success would be measured by this influential group through legislative outcomes. “We have to get both ends of Pennsylvania Avenue to act now. When you don’t see them acting, you see frustrated people.” And, says Wylde, “With the current political shift, it makes working from the ground up more important than ever because Congress may experience more gridlock and be more polarized.”
So act they are. Together, this unlikely collaborative of businessmen and politicians are hitting the streets and testifying in front of Congress presenting a fact-based assessment of the importance of immigration on the economy and the reform principles that they believe are necessary to make the topic a national priority, oftentimes shattering long-held myths about the subject.
With an economic downturn and high unemployment, many argue that sending immigrants back to their countries is the answer—end of story. The Partnership would argue it differently saying that this down economy should motivate us to want to solve this problem now. It is not old established companies that create jobs; it is young companies that drive the engine of our economy. Feinblatt explained that the way you keep the economy moving and expand new job creation is through private sector innovation. It is a fact that immigrants tend to be innovators and tend to have a tremendous work ethic. It is a fact that immigrants are often young and are twice as likely as others to start new businesses. Immigrants have been founders of some of the most successful companies in this country in many of the most dynamic sectors. And, says Bloomberg, “from 1980 to 2005, nearly all net job creation in the United States occurred in companies that were less than five years old.”
When asked how such an unlikely coalition of executives and politicians were able to come together, Feinblatt said, “Mayors and businessmen know that cities with the largest number of immigrant workers have had the largest, best economic growth and the best recovery.” Bloomberg recently said in Congressional testimony, “Our broken system of immigration is undermining our economy, slowing our recovery and hurting millions of Americans.”
Rhetoric aside, there are many myths about immigration in the United States.
MYTH #1: IMMIGRANTS DEPRESS WAGES AND CAUSE UNEMPLOYMENT.
FACT:
Immigration has been found to lead to higher wages for the majority of U.S.-born workers. In fact, a 2010 study by the Federal Reserve Bank of San Francisco found that from 1990 to 2007, immigration was associated with an increase of about $5,100 in annual income for the average U.S. worker. That same study found no evidence that immigrants hurt employment rates for U.S.-born workers.[1] When arguing that immigrants are the root cause of unemployment, it is important to consider that America needs low-skilled workers as the workforce ages and/or becomes more educated. Media sound-bytes around this myth often drift to the negative view of immigrant agricultural workers. Here are the facts. Roughly 80 percent of seasonal agriculture workers are immigrants. However, it is important to note that according to the U.S. Department of Agriculture for every on-farm job (many done by immigrants), they are supporting 3 additional jobs in better paying sectors like manufacturing and transportation.
Regarding high-skilled immigrant workers, data from the National Foundation for American Policy shows that for every H1B visa in a company, on average, 5 additional jobs are created. Think of the most common brands in U.S. business—Yahoo!, eBay, Google, and Intel, all were founded by immigrants, who in fact, are twice as likely as those born in the U.S. to start new businesses. In fact,
IMMIGRANT-FOUNDED COMPANIES HAVE CREATED OVER 450,000 NEW JOBS IN JUST UNDER A DECADE WITH ESTIMATED ANNUAL SALES NEARING $52 BILLION.
And, almost 25 percent of U.S. Patents come from non-citizen immigrants. What’s more, countries are competing to attract entrepreneurs and highly-skilled workers. Chile, for example, is offering AMERICAN entrepreneurs $40,000 and a one-year visa to come there and create innovative, entrepreneurial entities.
MYTH #2: IMMIGRANTS DON’T CONTRIBUTE FULLY TO THE ECONOMY OR PAY TAXES.
FACT:
New immigrants mean economic growth because they spend on goods and services. In fact, studies from the Fiscal Policy Institute indicate that from 1990 to 2006, cities with the biggest increase in immigrant workers were the cities with the fastest economic growth.
Besides contributing to city-based stability and growth, immigrants pay billions of dollars in federal, state and local taxes—and not just the legal ones. Between half and three-quarters of illegal immigrants pay federal and state income tax and have contributed approximately $240 billion to the Social Security fund—a perk that they will never receive. And, because of this contribution of illegal immigrants, Social Security’s Chief Actuary has estimated that the fund has at least six more years of solvency.
MYTH #3: IMMIGRANTS COST THE GOVERNMENT MORE THAN THEY CONTRIBUTE.
FACT:
Not true. The National Research Council found that legal and illegal immigrants pay almost $1,800 more in taxes than they receive in benefits. And, a recent RAND study found that only 1.25 percent of government healthcare spending is used to treat illegal immigrants.
MYTH #4: RIDDING THE COUNTRY OF ILLEGAL IMMIGRANTS IS THE ANSWER.
FACT:
Today there are approximately 11.1 million undocumented immigrants scattered across the U.S. First to mind for many, is the Latin immigrant running through the desert in the dark of night or those folks working in a field picking tomatoes. But, what is important to note is that of those 11.1 million illegals—40 percent of them are here on expired visas. The Border Patrol is addressing the issue, and in 2009 deported almost 400,000 illegal immigrants.
What’s more, mass deportation of 11 million illegal immigrants will cost billions and will cause short to intermediate-term harm to the economy, and many of the most trusted names in research agree. The Center for American Progress estimates that if a mass deportation happened today, that it would cost nearly $57 billion annually—or just over $900 in new federal taxing and spending for every U.S. man, woman, and child. According to the Cato Institute, deporting just 30 percent of illegal immigrants would cost nearly $80 billion. Or another way to look at it, mass deportation would cost the economy nearly $2.6 trillion over the next 10 years, according to the Center for American Progress.
To combat the myths with a focus on economic fact, the Partnership is pushing for an issue-based, interconnected immigration reform conversation and legislative package that includes key principles for an overall reform package. Securing our borders, by preventing illegal immigration through tougher enforcement and better use of technology, and developing a simple and secure system for employers to verify employment eligibility and hold them accountable if they are not compliant, or abuse visa programs, are two principles lauded by the Partnership. “Most employers feel that by failing to develop a market-driven approach to immigration we’ve created our own problems. That simply has to change,” said Wylde.
Increasing opportunities for immigrants to enter the United States workforce—and for foreign students to stay in the United States to work—so that we can attract and keep the best, the brightest and the hardest-working, who will strengthen our economy and creating a streamlined process by which employers can get the seasonal and permanent employees they need, when Americans aren’t filling vacant jobs; are additional principles of the Partnerships platform. Feinblatt commented, “We believe in high fences with wide gates.” Bloomberg asserts that we make it much too difficult for foreign workers and students to come and stay here. This drives companies to move jobs elsewhere. And our current visa process is “torturous” such that “no one wants to endure it,” he said to the U.S. House Judiciary Committee.
The whole matter of “brain drain,” where we allow students to enter the country to be educated here in our system but do not allow them to stay, quite literally, takes the knowledge we give them and urges them to return to their home country and directly compete with us. Bloomberg said, “That just makes no sense whatsoever.”
“America is desperately in need of improving our country’s human capital,” said Rupert Murdoch, an Australian-born immigrant and Chairman, CEO, and Founder of News Corporation. He further argued that the U.S must, “bring an end to the arbitrary immigration and visa quotas that make it impossible to fill the labor and skills needs of our country.” Regardless of the public perception of jobs, the truth is that
THERE ARE MANY HIGH-SKILLED JOBS THAT ARE UNFILLED RIGHT NOW BECAUSE WE CANNOT FIND THE WORKERS FOR THEM.
Murdoch stressed, “In higher education, America needs to keep her door open to those who come here to get an advanced degree and then allow them to join the ranks of our most productive scientists, entrepreneurs, innovators, and educators. We need to make it easier for them to stay, so they can make their contributions to America.” On the opposite end of the spectrum, there are many low-wage jobs that according to Bloomberg, American workers will not fill “such as fruit pickers, groundskeepers and custodians.” And, if your personal argument is that immigrants are taking jobs that Americans don’t want, U.S. Department of Commerce analysis shows that even before the current recession, only four occupations—plaster/stucco masons, agricultural graders and sorters, personal appearance workers, and tailors—are filled by a majority of immigrants and they account for only one percent of the total U.S. workforce.[2] “We need to have the best, the brightest, and the hardest working,” said Feinblatt.
Establishing a path to legal status for the undocumented currently living in the United States with requirements such as registering with the federal government, learning English, paying taxes and following all laws is a must for the Partnership. But to do this, they argue, the U.S. must strengthen federal, state, local, and employer-sponsored programs that offer English language civics, and educational classes. “Bringing immigrants out of the shadow economy would add to our tax base,” said Murdoch. According to one study, a path to legalization would contribute an estimated $1.5 trillion to GDP over 10 years.
Considering the facts, maybe we can look at the immigrant innovator to inspire us. We hear the phrase “nation of immigrants” but many people become “Americanized” by choice or by pressure and are far from their immigrant heritage. Language ties fade. Culture is muted in the melting pot. Eventually the second or third generation forgets where their predecessors came from and the magic of being an American wears away. On the day a new citizen says the Pledge of Allegiance for the first time, the pride and sense of newness is palpable. From that day forward, the new immigrant citizen has a chance not only to “live” the American dream, but also to “create” that dream for him or herself.
Maybe it’s a shop or a restaurant. Maybe it’s a textile company or an artist’s studio. Perhaps it’s a musician or a language teacher or a computer programmer or a doctor – but whatever that new citizen sets forth to do, they will accomplish their goals with motivation and dedication. Too often others stand by the sidelines begrudging well-earned success and bemoaning “lost opportunity” when in fact they should admire the success and follow the example if what they see is something they also want for themselves. Immigrants can remind us of our potential.
Immigrant business leaders in many communities are gathering strength both in number and in spirit to direct the community debate. We see specialized Chambers of Commerce. We see business, education and leadership groups for like-minded immigrants to convene. They are still part of the American story; even if they sometimes tell the story in another language at home.
In the spirit of ICOSA we must collaborate and lead our communities and our legislators forward together to tackle the enormity of the immigration challenge. We must also look around for inspiration and look across the borders and over the seas to the competition. The world has flattened. It really is a global economy. We can and we will find the right balance but we cannot continue the polarizing emotional rhetoric that so often surrounds the immigration debate. We cannot afford the time we are squandering by not solving these problems. So, secure the borders, by all means. Build the “walls.” Build them as high as is needed, but make sure the gates are wide and that there is a reasonable process for immigrants to walk through them.
Since the beginning of this country, leaders and citizens have worried about the impact of immigrants on the vitality and security of the country. Founding father, Ben Franklin criticized German immigrants and called them “Palatine Boors.” Later, Americans worried about the influx of the Irish. Then it was the Europeans. Asians too, have seen their fair share of exclusion over the last century. And today, it is a focus on Latin cultures that is under the spotlight with a loud call to update and modernize the archaic immigration laws and requirements of this country.
Whether it’s New York City or Ponca City—the immigration debate will rage on until we can have a civil debate that leads to thoughtful reform, and The Partnership for a New American Economy is leading the discussion. “The top issue in this country is ultimately, jobs, jobs, jobs—and that’s what this debate is about. We must embrace opportunities for job creation. I can guarantee that many high-tech companies are getting their expertise from foreign-born workers,” said Feinblatt. He went on, “The facts speak for themselves. We are committed to making sure this is not an issue argued at the extremes, but that it is one that is argued from dollars and cents.” “The ultimate goal is to get an immigration and visa policy for this country that is driven by labor market needs, and that once implemented, includes an effective end to illegal immigration,” said Wylde.
No matter what your beliefs, it is important to remember that immigrants make major contributions to our economy and are good for our global competitiveness. Bloomberg says, “We have to fix our broken immigration system. I believe this is an issue where Democrats, Republicans, and Independents can find common ground. Our economy has changed; our immigration policy needs to change with it.”
| To learn more about the Partnership for a New American Economy visitwww.RenewOurEconomy.org |
| Kim DeCoste is the Director of Career Services for Colorado Technical University and President of DeCoste & Associates, LLC. She can be reached at: [email protected] or 303.362.2948. |
| [1] Giovanni Peri, “The Effect of Immigrants on U.S. Employment and Productivity” FRBSF Economic Letter August 30, 2010, available athttp://www.frbsf.org/publications/economics/letter/2010/el2010-26.html. |
| [2] “Jobs Americans Won’t Do? A Detailed Look at Immigrant Employment by Occupation” Center for Immigration Studies Memorandum. Steven Camarota, Karen Jensenius. August 2009http://www.cis.org/illegalimmigration-employment. |
| Partnership For A NEW AMERICAN ECONOMY |
| MEMBERSHIP CO-CHAIRS: |
| Steven A. Ballmer, CEO, Microsoft Corporation; Michael R. Bloomberg, Mayor, New York City; Julián Castro, Mayor, San Antonio; Phil Gordon, Mayor, Phoenix; Bob Iger, Chairman & CEO, Walt Disney Co.; Bill Marriott, Jr., Chairman & CEO, Marriott International; Jim McNerney, Chairman, CEO & President, Boeing; Rupert Murdoch, Chairman, CEO & Founder, News Corporation; Michael Nutter, Mayor, Philadelphia; Antonio Villaraigosa, Mayor, Los Angeles |
| FOUNDING MEMBERS: |
| Sam Adams, Mayor, Portland, Oregon; Richard Anderson, CEO, Delta Airlines; Cory Booker, Mayor, Newark, New Jersey; Ursula Burns, Chairman & CEO, Xerox Corporation; Carl Camden, President & CEO, Kelly Services Inc.; Ken Chenault, Chairman & CEO, American Express; John Cook, Mayor, El Paso, Texas; Francisco D’Souza, President & CEO, Cognizant Technology Solutions; Daniel S. Fulton, President and CEO, Weyerhaeuser; James P. Gorman, President & CEO, Morgan Stanley; Reid Hoffman, Executive Chairman and co-Founder, LinkedIn; Thomas Menino, Mayor, Boston, Massachusetts; Dennis Nixon, President & CEO, IBC Bank; Annise Parker, Mayor, Houston, Texas; Rob Speyer, President & Co-CEO, Tishman Speyer; Joe Uva, President & CEO, Univision Communications Inc.; Fred Wilpon, Chairman & Co-Founder, Sterling Equities; Deborah Wright, President & CEO, Carver Bank Jerry Yang, Co-founder and Chief Yahoo, Yahoo! Inc.; Mark Zuckerberg, Founder & CEO, Facebook; Mort Zuckerman, Chairman & Publisher, US News & World Report; NY Daily News. Learn More at www.RenewOurEconomy.org |
Power to the Pawns!
Everyone understands the analogy of chess to life and to business. However, I believe it is important to consider each of the roles of the game pieces as the strategies of long-term planning and implementation are considered. As entrepreneur and avid chess player Bob Rice argues, “The more you look at the business world, the more you see that successful companies and the people who run them use chess strategies routinely—whether they know it or not.” Because chess is a game of strategy, business must rely on various strategies to “move them forward” in the game so that they can “win” by whatever method—checkmate, resignation or time-out. Gaining market share and momentum has similarities to chess as well.
Recognizing that experienced players—larger, more established organizations—often have the upper hand and are more powerful will be imperative as you or your business begins to consider market competition. Chess is not a game of luck—it is often that novices make more mistakes.
Another common chess theme is the concept of gaining market share. Chess experts say, “Never play for a 50 percent share. Playing for a draw is a fallback position.” Rice, who during his career leveraged a software play with the “king” of software—Microsoft—learned quickly that sometimes, “managers must do what chess players do—leverage something good into something unclear.” That strategy paid off for Rice, whose gamble turned into a lucrative business opportunity. Most important, however, is being mindful that a mistake can cost you the “game.”
Perhaps my favorite chess theme is that of the pawns, the least powerful pieces on the board. They can sometimes become the most powerful with persistence—meaning that the small ones occasionally win. We’ve seen it happen time after time—companies gaining competitive dominance and market share using strategy, persistence and perseverance. Rice likens pawns to employees who “can move mountains when their potential is unleashed.” And while the pawn may be considered the weakest piece on the board ... a single one often makes the difference between victory and defeat.
Enjoy this issue!
Jan Mazotti
Vail Veterans Program Holds Another Successful Ski Program
Since, 2004, the Vail Veterans Program has been transforming military injured and their families through individualized, world-class outdoor programs building confidence and life-long relationships. In January 2013, the Vail Veterans Program hosted 28 veterans, 28 guests and five staff from the three major military hospitals. In fact, 14 of the 28 veterans who attended have suffered multiple-limb loss. “That family experience is essential to getting wounded vets back on their feet,” said Tiffany Smith, a therapeutic recreation specialist at Walter Reed National Military Medical Center. The Vail Veterans Program participants include United States military personnel who have been severely injured while serving our country. Most veterans who participate in the programs come directly from Walter Reed National Military Medical Center in Bethesda, Maryland; Brooke Army Medical Center in San Antonio, Texas; and the Naval Medical Center in San Diego, California.
The program hosts two winter events that include downhill skiing, snowboarding and cross-country skiing for wounded warriors and their families. Staff Sergeant (SSG) Matt Keil says, “I was shot in the neck by a sniper in Iraq. I am now a quadriplegic confined to a wheelchair. I attended the Vail Veterans Program with other disabled veterans. For a brief time, we felt free from our injuries and were able to heal by sharing stories. The program showed us that no matter what happened in our lives, we could tackle anything we wanted and that our personal sacrifices will never go unnoticed and are deeply appreciated.”
“The Vail Veterans Program helped my whole family. I can’t put it in words to explain how good it felt to see my family enjoying life after I almost lost mine,” declared SSG Robert Henline.
Since its inception, the Vail Veterans Program has hosted more than 1,000 soldiers and their families in their program entirely free of charge thanks to donors, volunteers and the Vail community. “Even though I don’t participate on the mountain, working with our vets at Denver International Airport are some of the most inspiring days of my year. They remind me how very blessed I am to live in this country,” said Jan Mazotti, president and editor-in-chief of ICOSA.
Corporal Mark Litynski believes, “The week in January was life changing for me and for so many others!”
To learn more about The Vail Veterans Program, visit http://vailveteransprogram.org/.
Ethical Infrastructure & Organizational Culture: Colorado Ethics in Business Association
Way back in the late 1980s, the country was in the midst of what would come to be called the Savings and Loan (S&Ls) Crisis where eventually nearly 750 of the country’s 3,234 S&Ls would fail and cost the nation’s taxpayers some $88 billion. It was a particularly ominous scandal for Colorado as one of the more prominent failures in that crisis was that of Colorado’s own Silverado Savings and Loan, which collapsed in 1988 and cost taxpayers $1.3 billion. Among the more notable businesspeople embroiled in the scandal was Neil Bush, a Silverado director and son of then–vice president of the United States, George H. W. Bush. At about the same time, 1989, the “Father of Cable Television,” entrepreneurial Denver millionaire Bill Daniels, donated some $11 million to the business school at the University of Denver (DU) to create an ethics boot camp and ethics curriculum that set the school on a leadership path for corporate social responsibility throughout the nation. A few years later, DU would name its business school the Daniels College of Business, bestowing on itself a moniker that had for years stood for the highest level of integrity in business and philanthropy.
That these two events, both of which rocked the Colorado business community, happened virtually simultaneously was more than a mere coincidence for what was to come. One spoke directly to the need for elevating the discussion and education of business ethics, while the other was a pure example of business ethics in practice.
“Ethical business practices are essential in the financial services industry. The trust and credibility that is built up as a result of treating clients, employees, and fellow professionals ethically, is the key component in our ability to start, maintain, and grow a thriving, sustainable financial services practice. On the other hand, we have all seen and experienced, over and over again within the past decade, the devastating consequences of failures to act ethically,” says Greg C. Anderson, CLU, ChFC, CFP, CASL, a financial adviser with the Northwestern Mutual Financial Network and the Colorado Ethics in Business Alliance (CEBA) board immediate past president and assistant secretary.
It was in this atmosphere, one clouded by scandal with a ray of hope shining through, that CEBA was started in 1990. Originally called “Ethics and Business—The Colorado Corporate Responsibility Awards,” the initial goal was to establish an annual nomination, investigation, selection and awards program to honor Colorado companies, businesspeople and nonprofit organizations for the highest standards of ethical conduct in business. Right from the start, the aim was to show that businesses and businesspeople could do well by doing good, that ethical business practices, rather than being anathema to profit, were part and parcel of the success of Colorado business.
In the early 1990s, there was only one similar program in the country, the national American Business Ethics Award, founded in 1982 by the Foundation for Financial Service Professionals. “Ethics in Business—The Colorado Corporate Responsibility Awards” was the second business ethics recognition process in the country and the first on a regional or statewide basis. Since then, CEBA has been joined by hundreds of other such awards given annually by local chambers of commerce, Better Business Bureaus, as well as local and national business and professional organizations and societies all across the nation. The Colorado effort, kicked off with the first awards given in spring 1991, remains the largest business ethics awards program in the country.
Carrie Rossman, foundation director at the Better Business Bureau serving northern Colorado and Wyoming and CEBA director, says, "Making ethical choices in any business situation is the major step in pursuing excellence both as an enterprise and personally.”
And, none of this would have happened in Colorado without Bill Daniels. Daniels was one of the chief proponents and practitioners of ethical business practices at the time—at any time. His varied business career made him an extremely wealthy man, and his business and philanthropic endeavors set a high mark for corporate social responsibility activities.
So, in 1989, three men—Rev. R. J. Ross, the founder of the Samaritan Institute, an international network of faith-based counseling centers enabling an approach that combines “mind, body, spirit and community”; Dr. Bruce Hutton, a longtime professor at the Daniels College of Business who was the school’s dean in 1989; and Jeff Rundles, a veteran Colorado business journalist who was editor of Colorado Business Magazine (now ColoradoBIZ) at the founding—decided that honoring the DU-Daniels connection, and giving the Silverado debacle some distance and perspective by creating an awards program to spotlight the ethical business behavior among Colorado businesses and business people was a meaningful endeavor.
The three founders conceived the idea of an Ethics in Business awards program and sought out the guidance of Daniels before moving forward. Not only was the ethical icon enthusiastic about the concept, on the spot he wrote the first check to get it started. He then directed his staff at Daniels & Associates to take part in the process and to offer as much help as needed.
Now, more than 20 years and many awards programs later, CEBA has grown into a powerful alliance of business, nonprofit and educational interests dedicated “to advance ethics in business through conversation, practice, and understanding for the benefit of the workplace, the marketplace and our community.” Says Alex Chernushin, director of programs at Ball Aerospace and Technologies Corporation and CEBA director, “Surrounding yourself with those who support your ethical choices professionally leads to easier decisions and new-found support in difficult choices."
CEBA’s board of directors is 20 strong, drawing its leadership from every walk of professional and business life, as well as key people from nonprofit groups, professional and business trade associations, colleges and universities, and the media. In addition, the CEBA Leadership Council has another 20 Denver and Colorado business and community leaders drawn from every discipline who meet regularly to discuss ethics and to offer advice and counsel to the CEBA board and community.
In 1996, CEBA was strengthened and its mission expanded when the Rotary Clubs of Colorado and the Rocky Mountain Chapter of the Society of Financial Planners became long-term sustaining sponsors in the organization—relationships that remain today. With their help and guidance, CEBA has expanded its original mission of recognizing businesses and businesspeople at an annual awards banquet to now conducting an Ethics in Leadership Series, an offering of some seven events throughout the year with notable speakers, with many of the sessions featuring continuing education credits to such professions as law, accounting and financial planning.
Many great professional organizations emphasize ethics and character in conducting the business of their professions, and CEBA has always aimed to elevate that emphasis to an interdisciplinary discussion with and to the business and civic communities at large. “Ethics is the embodiment of everything that is good and right in life,” argues David Goldberg, an attorney at Greenberg Traurig and CEBA leadership council member. He goes on: “Ethics encompasses truth, integrity and virtue necessary to maintain a civilized society.”
During the past 25 years, CEBA has grown to become the principal “backbone” of a broad alliance of collaborators, to recognize and promote ethical business throughout the state. CEBA provides the essential infrastructure to bridge, if you will, Wall Street, main street and academia.
CEBA’s three major constituencies include:
- Business—help grow a company's revenue and its community engagement through ethical programs.
- Civic and nonprofit organizations—help civic and nonprofit organizations deliver ethical service programs that raise the quality of life in communities.
- Educational institutions—help educational institutions develop future leaders through collaboration and learning in business and personal life.
At its founding more than 20 years ago, one of the goals established for CEBA was to provide a forum for the discussion of ethics and ethical business and civic practices, and to embrace young people studying for their careers in business in the discussion. The broad cross-section of award winners over the years from every type of business and enterprise, and from every corner of the state, stand as testament to the promise of “doing well by doing good.” Jim Nottingham, an attorney with Berenbaum Weinshienk PC and a CEBA director, declares, “Ethical conduct is an investment that pays dividends by way of satisfied customers, fulfilled employees, improved bottom lines and personal happiness. Doing the ‘right’ thing has a profound ripple effect that transcends and transforms.”
But obviously, much work still needs to be done. Following the Silverado Savings debacle, people were fined and/or went to prison, commissions were formed, congressional investigations ensued, laws were changed, and everyone from every corner of the country decried the obvious ethical breaches and vowed to stop them from ever occurring again.
Since then, we have had Phar-Mor, Enron, Bernard Madoff and numerous national and local Ponzi schemes, the Dot-Com bubble, Qwest, Tyco, and the Subprime Mortgage Crisis—the list is nearly endless, and with each new case, the audacity threshold is raised a few bars.
The Colorado Ethics in Business Alliance—conceived in the crucible of ethical breaches and inspired by Bill Daniels, a true gentleman who defined integrity—is poised to carry on the important work ahead.
“Without fail, the local and national companies I have worked with over the years who strive to treat their employees, their customers and all their stakeholders with the highest levels of integrity, respect and proactive consideration, are the ones who weather the bad times and have the higher levels of financial success and employee retention when good times return,” said Ron Ausmus, principal and founder of Integrity Associates, the CEBA board director and speakers’ bureau chair. “Tough times reveal the strength of the ethical infrastructure and organizational culture built by the founders and maintained by the keepers of the flame."
Jeff Rundles is a former editor of ColoradoBiz and works with the Unleaded Group. Peter Feather is the executive director at CEBA. To learn more, visit www.ceba.org.
Leadership in Communication: A Guiding Principle at CEA and Benchmark of Successful Organizations
Effective communication is the benchmark of any successful endeavor. The ability to express key messages is a significant underlying principle that can determine an effort’s fate before it even begins. Looking for a job? Better be able to articulate your value in a concise and convincing manner. Seeking to advance a public project? Hope that you have already secured commitments from key allies and have an effective outreach campaign to convey the project’s importance to the public. Since its founding in 2006, Consumer Energy Alliance (CEA) has placed an emphasis on developing an effective communication strategy designed to increase the understanding of domestic energy issues and their importance to the U.S. economy and to broaden the debate over energy to include both large and small energy consumers. Separating us from other organizations, CEA has created and used a proprietary blend of traditional communication outreach activities with a focus on building relationships through stakeholder relations. This involves cultivating relationships between seemingly disparate industries and organizations in order to help solve problems and achieve the larger goal of broadening the debate on U.S. energy policy. CEA has successfully developed and facilitated relationships among organizations such as the Union of Operating Engineers, Nucor Steel, the University of Nordland (Norway), National Tank Truck Carriers, ExxonMobil, various chambers of commerce, Airlines for America, National Small Business Association and so on. This guiding principle has resulted in tremendous growth over a very short time period. In fact, CEA has grown from a single entity with a handful of supporters to an entity operating out of seven U.S. regions and enjoying the support of more than 200 affiliate members.
At its core, CEA seeks to engage new audiences and entities and encourage their involvement in supporting responsible energy policies that will advance the U.S. economy and empower the U.S. consumer. Given that few entities exist to achieve this goal, CEA first had to overcome a handful of obstacles—chief among them, the fact that energy issues, with their complexities and nuance, are typically left to energy producers and policymakers to debate and discuss. But we feel both energy-consuming entities and individuals have a major stake in the energy debate and should take a larger role in discussing and engaging in our nation’s energy opportunities. CEA worked to build a broader understanding of energy’s importance among individual and corporate citizens throughout the United States.
To that end, with support from the City of Houston and other sponsors, CEA organized the nation’s first major gathering focused exclusively on energy development. Appropriately titled Energy Day, the annual event provides citizens an opportunity to learn about various forms of energy and cutting-edge technologies that are shifting the industry landscape and advancing our economy. By any measure, this event has been a tremendous success, drawing nearly 30,000 attendees over two years. However, more than raising awareness, the event also encourages youth participation in the energy sector through the associated Energy Day Academic Program. This program includes a series of six unique, city-wide, energy-related competitions aimed to motivate, challenge and inspire young minds to seek careers in science and technology. Thus far it has also been an outstanding success, awarding 59 Houston area students a total of $12,000 in academic awards.
Leveraging regional chapters, CEA has also engaged in extensive community outreach at events across the United States, from NFL football games, to state fairs and NASCAR races. The purpose in attending these events was simple: Identify potential supporters—individuals who understand the importance of energy to our economy and way of life—and to increase identification of the CEA brand and create action on public issues of importance to energy consumers. As a result, today CEA enjoys an expansive list of supporters that exceeds 300,000 individuals, a majority of whom have been active on at least one critical energy issue in recent years.
Of course, while local outreach is critical, national engagement across traditional and developing communication platforms is equally important. For this reason, CEA has placed great focus on aggressively pursuing earned media opportunities. In fact, in 2011 CEA was referenced by the media in more than 15 U.S. states, resulting in just shy of 100 earned media hits that reached nearly 79 million Americans. This resulted in CEA being featured in such well-known outlets as the Wall Street Journal, The New York Times, Washington Times, Washington Post, Politico, The Hill, Human Events, Fox News, Fox Business News, CNN and C-SPAN, to name just a few. A significant part of this success centered on CEA’s effort to anchor U.S. energy policy as a key issue in the 2012 presidential election. As part of this effort, CEA, in conjunction with additional stakeholders, hosted a series of energy summits across the United States where Republican candidates and representatives of the Obama administration highlighted their views on needed U.S. energy policies. These summits drew into clear focus the respective candidates’ views on energy issues, ensuring that the topic remained at the center of the election. In fact, during the second presidential debate, Governor Romney and President Obama talked about energy policy for the balance of several minutes. We think this is in no small part a result of our efforts to bring energy issues into the national campaign.
While traditional media attention is a critical element in any outreach strategy, no communications picture is complete without paying close attention to social media and online communications. In that vein, CEA maintains an active presence on Facebook, Twitter and YouTube. On Facebook, in particular, we have strived to make this a useful resource that provides a truly interactive experience to visitors. Upon landing on our page, a user is connected with information on a variety of energy topics through the sharing of relevant news items and graphics that provide information in an easily digestible format. The medium has helped amplify CEA messages, and we reached more than 3 million people in 2012 through social media alone, with a large percentage of those community members taking an active role to support affordable energy through public comment periods on various federal initiatives.
CEA has also made significant efforts in reaching online outlets, blogs and other new media sources with information relevant to the national discussion on energy. In 2012, our efforts resulted in coverage in more than 170 different blogs with a collective viewership of 455,000,000 people on such topics as the Keystone XL pipeline, shale gas development and nuclear energy. This effort was also a large driver in CEA’s efforts in the 2012 campaign cycle.
All of these efforts, when taken together, have resulted in an increased level of awareness and activity on key energy issues by members of the public. An example of this can be seen in the ongoing consideration of the Keystone XL pipeline. Given the project’s importance to the U.S. economy, and recognizing it would face significant opposition, CEA used the support network we built through these communication platforms, and in conjunction with other partners, rallied supporters to take part in the public hearings and file comments in support of the project’s approval and construction. As a result, citizens filed more than 600,000 comments in support of the project, providing needed balance to a contentious comment period on a project that is critical to North America’s new energy future. CEA pursued and achieved similar success in conjunction with the public comment process on needless endangered species listings in Texas and other regulatory issues across the country.
In an effort to further develop relationship capital among CEA and its affiliate members, we have also helped to launch and grow the Energy Producing States Coalition. This coalition brings together state legislators from energy producing states across the nation to discuss shared issues, challenges and concerns associated with energy development. Launched in 2012 and already boasting 41 members from 9 states, the coalition is proving to be a useful forum that will be critical in providing needed advice and perspective to multiple parties, including lawmakers and regulators in Washington, D.C. It also provides a laboratory for idea sharing and coordination between policymakers, regulators and the organizations they impact.
While much has been achieved, much more remains to be done. Keeping effective communications at the forefront, CEA is pursuing an aggressive agenda in 2013. We will release our biennial report to Congress, outlining policy recommendations that will show policymakers how to implement a balanced energy policy that expands development of all domestic resources and furthers efforts to conserve energy. We will host more than 20 forums across the United States that will focus on energy development and its impact on the economy to keep energy issues out front in the public dialogue. And we will continue to expand the already diverse list of energy-consuming organizations that count themselves as members of Consumer Energy Alliance.
After six years, CEA stands tall and proud in recognition of its accomplishments, and we look forward to the future with optimism for the continued success we expect to achieve. To date, our efforts have established a first-of-its-kind coalition that provides a unique and previously absent voice to the American consumer, while also raising awareness among the public about actions they can take in Washington, D.C., and in their respective state capitals to make energy more efficient and affordable for all.
David Holt is the President of the Consumer Energy Alliance, a nonprofit, nonpartisan organization that supports the thoughtful utilization of energy resources to help ensure improved domestic and global energy security and stable prices for consumers.
How Chess Represents Business: The King
“The great mobility of the King forms one of the chief characteristics of all endgame strategy. In the middlegame the King is a mere 'super,' in the endgame on the other hand—one of the 'principals.' We must therefore develop him; bring him nearer to the fighting line.” —Aaron Nimzowitsch
I like to use metaphors to articulate broad concepts. These metaphors (from previous issues of ICOSA) can be used to describe the processes of running a successful business. In my opinion, business is not much different from many board games—particularly chess. The infrastructure in this case is a board with 64 squares arranged eight by eight and alternating black and white. I often use the strategy of chess in everyday business life, and in this case, I use metaphors to describe the power of each chess piece.
The chess piece of the king represents the leader. The king is the figurehead but not necessarily the most influential player on the board. His presence is vital for the game to continue. The king sets the course and leadership toward the achievement of the organization’s vision, mission, philosophy, strategy and annual goals and objectives. The king—otherwise known as the chief executive officer—sets the direction by deciding which markets the company will enter, what companies are considered competitors, and what product lines will address the most needs of the market.
My job as a CEO is primarily six things: create a vision, align resources to accomplish the vision, transform the vision, develop the infrastructure that allows the vision to happen, and maintain continuity throughout. In this case, I recommend John C. Maxwell’s book The 5 Levels of Leadership: Proven Steps to Maximize Your Potential. Maxwell believes the five levels of leadership include 1) position; 2) permission; 3) production; 4) people development; and 5) pinnacle. In the position level, people follow because they have to. In the permission level, people follow because they want to. In the production level, people follow because of what you have done for the organization. In the people development level, people follow because of what you have done for them. In the pinnacle level, people follow because of who you are and what you represent.
Leadership, therefore, consists of taking action to clarify the vision. Great leaders are almost always great simplifiers; they can cut through an argument or debate to offer a solution everyone can understand.[1] They also know how to stimulate and contain the forces of invention and change and to shift the process from one stage to the next.[2] The task of a leader is ingenuity, resources and energy to change various circumstances. An assessment of strengths, weaknesses, skills, blind spots and a state of mind regularly occurs. Failing to assess these areas creates the possibility of hindering rather than assisting progress. This occurs when your existing bias does not match the reality of the current situation. In the ever-changing environment in which we find ourselves, the need for frequent assessment is even more critical to success.[3]
The result? Clarity of purpose, credibility leadership and integrity.
Throughout previous issues of ICOSA, we have discussed the importance of infrastructure, resources, vision, transformation, continuity and the 4 I’s (information, ideas, intelligence and innovation)—all collaborative principles I believe have driven the success of our company. I also believe that applying collaborative principles to leadership allows for better direction. A leader must provide structure and infrastructure; coordinate resources by assembling and aligning the necessary resources; provide vision and inspire by looking at the past, the present and the future; take that strategy and execute it; continue to do the right things effectively; and finally empower and motivate various stakeholder groups.
The role of leadership is to imagine an enhanced future and become the transformation that makes the forthcoming conceivable. This is true of a business, a community or our personal life. Leaders work to get the best out of people. Therefore, all stakeholders are like chess pieces. Even though each person has different skills, authority, power, responsibility, strengths, weaknesses and potential, he or she each has a place to add value. If you, the king/leader, put the correct team member in the right place, everyone benefits from the talent and potential. They are the ones looking to the future by knowing the next move!
Photo Caption: Copyright 2013 The John Maxwell Company. Articles accessed via http://www.johnmaxwell.com may not be reprinted or reproduced without written permission from The John Maxwell Company, except for brief quotations in critical reviews or articles.
Georgia O'Keeffe in New Mexico
Architecture, Katsinam and the Land
When I got to New Mexico that was mine. As soon as I saw it that was my country. I’d never seen anything like it before but it fitted to me exactly. It’s something that’s in the air, it’s just different, the sky is different, the stars are different, the wind is different. I shouldn’t say too much about this because other people might get interested and I don’t want them interested. ~Georgia O’Keeffe
Georgia O’Keeffe, among the great American artist of the 20th century, was drawn to the New Mexico landscape and culture in a way many people could only imagine. She was captivated by the cultures and colorful landscapes of New Mexico, which served as inspiration for some of her most interesting Western works.
The traveling exhibition, Georgia O'Keeffe in New Mexico: Architecture, Katsinam and the Land, will be at the Denver Art Museum from Feb. 10, through April 28, 2013, and brings to light O’Keeffe’s interest in northern New Mexico. The exhibition includes 53 works, ranging from Hopi katsina tithu to Hispanic and Native American architecture. Visitors will have the chance to experience this part of the country—its culture, people and landscapes—through the eyes of the artist.
From 1931 to 1945, Georgia O'Keeffe created numerous drawings, watercolors and paintings of katsina tithu, described as carved and painted representations of Hopi spirits. This new exhibit at the Denver Art Museum describes O’Keeffe’s artwork showing as an opportunity to experience seldom-exhibited paintings that remain generally unknown to the public. The exhibit includes 15 rarely seen O’Keeffe pictures of nine different Hopi katsina tithu, along with examples of these types of figures or photographs of them. The O’Keeffe exhibition also includes examples of her paintings of New Mexico’s Hispanic and Native American architecture, cultural objects and New Mexico landscapes, as well as additional works from American Indian artists who also draw upon katsina tithu and the New Mexico landscape for artistic inspiration. “Georgia O'Keeffe in New Mexico brings to light a relatively unknown component of O’Keeffe’s art and thinking—her awareness of, keen sensitivity toward and deep respect for the diverse and distinctive cultures of Northern New Mexico,” says the Denver Art Museum.
Georgia O'Keeffe was born on November 15, 1887, the second of seven children, and she grew up on a farm in Sun Prairie, Wis. As a child she received art lessons at home, where her talents were noticed by many. And by the time she graduated from high school in 1905, she had determined to become an artist.
O'Keeffe studied at the Art Institute of Chicago (1905–1906) and at the Art Students League in New York (1907–1908), where she was quick to master the principles of the approach to art-making that then formed the basis of the curriculum—imitative realism. In 1908, she won the League's William Merritt Chase still-life prize for her oil painting Untitled (Dead Rabbit with Copper Pot). Shortly thereafter, however, O'Keeffe quit making art, saying later that she had known then that she could never achieve distinction working within this tradition.
In 1912, her interest in art was rekindled when she took a summer course for art teachers at the University of Virginia, Charlottesville, taught by Alon Bement of Teachers College at Columbia University. Bement introduced O’Keeffe to the ideas of his colleague Arthur Wesley Dow.
Dow, an artist and art educator at Teachers College, believed that the goal of art was “the expression of the artist’s personal ideas and feelings and that such subject matter was best realized through harmonious arrangements of line, color and notan (the Japanese system of lights and darks).” Dow’s perspectives offered O’Keeffe an alternative to imitative realism, and she began experimenting with them while she was teaching art in the Amarillo, Texas, public schools or working summers as Bement’s assistant.
By the fall of 1915, while teaching art at Columbia College in South Carolina, she decided to put Dow’s theories to the test. In an attempt to discover her own personal language, she began a series of abstract charcoal drawings that are now recognized as “among the most innovative in all of American art of the period.” She mailed some of these drawings to a former Columbia classmate, who showed them to the internationally known photographer and art impresario, Alfred Stieglitz, in 1916.
Stieglitz exhibited 10 of her charcoal abstractions at his famous avant-garde gallery, 291, in New York City. A year later, he supported a one-person exhibition at 291 of O’Keeffe’s work. In the spring of 1918 he offered O’Keeffe financial support to paint for a year in New York. Married in 1924, she and Stieglitz lived and worked together in New York City during the winter and spring and at the Stieglitz family estate at Lake George, New York, during the summer and fall. But in 1929, O’Keeffe began to spend the first of many summers painting in New Mexico.
As early as the mid-1920s, when O’Keeffe first began painting New York skyscrapers as well as large-scale close-up depictions of flowers—which are among her best-known pictures—she had become one of America’s most important and successful artists, displaying her art in the Anderson Galleries, the Intimate Gallery and An American Place.
In 1949, three years after Stieglitz’s death, O’Keeffe moved from New York to her beloved New Mexico, “whose stunning vistas and stark landscape configurations had inspired her work since 1929.” Many of the pictures she painted in New Mexico have become as well known as the works she had completed earlier in New York. She captured the essence of the natural beauty of the “Northern New Mexico desert, its vast skies, richly colored landscape configurations and unusual architectural forms.” O’Keeffe lived and painted in the area until 1984, when failing eyesight forced her into retirement. She died in her beloved New Mexico in 1986 at the age of 98.
The Georgia O’Keeffe Museum organized Georgia O'Keeffe in New Mexico: Architecture, Katsinam and the Land. Exhibit dates and locations also include the Georgia O'Keeffe Museum, May 17 through Sept. 8, 2013, and the Heard Museum, Sept. 27, 2013 through Jan. 12, 2014.
A Father’s Journey: Walking in Daniel’s Shoes
Many people remember where they were and what they were doing when the first reports came in about a deadly school shooting at Columbine High School located in unincorporated Jefferson County, Colorado on April 20, 1999. So many lives were impacted in monumental ways. Thirteen years later, we are again embroiled in the effort to strengthen our gun safety laws. For many in Colorado, April 20 began as a “regular” day. The taxes were finished and people knew spring was somewhere in the air. By late morning, however, a horror began to unfold as news reports were filling the airwaves about a school shooting at Columbine High School in a beautiful community on the west side of town.
Tom Mauser was in his office preparing for a trip to Pueblo, Colorado for a transit conference that day. Running on the late side, Mauser was about to leave for his brief trip when a coworker stepped into his office. The coworker asked about Tom living in south Jefferson County and whether he had teenaged children at Columbine? Mauser was urged to go to a conference room. Something was happening at Columbine High School. Mauser knew that employees watching news coverage was unheard of. He stood in disbelief as he saw helicopters and police at the school. Then he saw students fleeing the school and hearing that shots had been fired. Mauser’s first reaction was how could his fifteen-year-old son, a good kid who didn’t get in any trouble, be involved in a shooting? His son Daniel was one of two thousand students. As the school situation worsened, Mauser received a call from his wife, Linda—she had not heard from their son, Daniel.
Mauser began to hear the radio reports. One of the shooting victims, a fifteen–year-old male student had been taken to a local hospital. Tom Mauser felt a deep discomfort. Where was Daniel?
The frantic search included Leawood Elementary School, near Columbine, where updates were posted and there was a special “waiting room” for families looking for information about their children. The group was told that a bus would be coming from Columbine with students but after a painful thirty-minute wait, no bus came. Mauser overheard a teenager tell someone that there could be twenty-five students killed. How could this happen in our high school, Mauser asked himself? How could this be real?
At the Mauser home, concerned calls from family and friends poured in. A family friend who agreed to field law enforcement requests for the Mauser’s called to inform him that police needed a description of what Daniel was wearing. Then another call came asking for their son’s dental records. Mauser’s wife, Linda, took the second call. The anguish began as every bit of hope was disappearing. “We sent our son to school that morning, and here we were facing the prospect of having to identify his body,” Mauser says in his book, Walking in Daniel’s Shoes. “How could this be happening to us? Why couldn’t Daniel just show up and put an end to this horrific nightmare?”
A sheriff’s deputy came to the Mauser home at 11:00 p.m. the night of the shooting. There was no definitive news. The potential for additional bombs was making it difficult for authorities to do any type of quick building check. The deputy said law enforcement would be going through the school inch-by-inch and would get back to the Mauser’s in the morning. It would be an endless night for the parents wondering where their son was.
Friends gathered early in the Mauser family room the following morning for any word about Daniel. Late in the morning, a sheriff’s deputy and two victims’ advocates came to the house. It had been confirmed that Daniel was dead. “My son was dead,” Mauser said. “How the hell could he be dead? I just saw him the day before. All we did was send him to school. He was not a troublemaker or a drug user or a gang member. He was becoming so ready for the world and I was so unready for this.” The ultimate parental nightmare had begun.
Shock and disbelief marked the memorials and burial of Daniel Conner Mauser and the other Columbine murder victims. In the aftermath, the world and the country reacted. A massive outreach from around the world came in the form of sympathy cards, teddy bears, angels, crucifixes and other objects sent with care and empathy. Memorials sprung up immediately with eight-foot crosses on the crest of a hill in Clement Park, near Columbine High School. The aftershocks were many and often long lasting.
Nagging questions would not go away for Tom Mauser. How were the weapons used accessible to teenaged boys—along with 99 explosives and four knives? How could teenagers get their hands on the following weapons which were used in the Columbine massacre: Intratec TEC-DC9, Hi-Point 995 Carbine, Savage 67H pump-action shotgun and a Stevens 311D double-barreled sawed-off shotgun? Mauser learned that the guns were purchased through friends of the two killers. It was an illegal transaction involving a semi-automatic handgun sold to minors through an intermediary. Three of the guns found their way into the seventeen-year-olds’ hands via a friend and an unlicensed dealer at a local gun show. And, the day before the massacre, one of the shooters picked up 100 rounds of ammunition, which had been purchased by a third-party at a K-Mart store for $25.
Two weeks prior to the shooting, fifteen-year-old Daniel Mauser talked about the loopholes in the Brady Bill with his father. Tom Mauser remembered the conversation well and felt compelled to speak out at a rally during an NRA convention in Denver held not long after the Columbine killings. And, almost overnight, Mauser became a new voice for those seeking reasonable gun laws. Becoming an advocate over a contentious issue would change his life in profound ways.
There were serious questions and much reflection by Mauser about his involvement in the gun control cause. Mauser knew the difficulty in changing laws and attitudes overnight. The middle manager for a state agency who could deliver entertaining presentations, majored in political science and was an avid follower of current events, stepped into the world of media coverage with its scrutiny and the highly charged issue of gun control.
In 2000, Mauser worked for SAFE Colorado, a group that advocated for increased regulation of firearms, as the director of governmental affairs. In the early days, many of the pro-gun bills were approved by the NRA-friendly legislature. However, one bill sparked heated debates—the gun show loophole bill.
Gun dealers, manufacturers and those who import firearms are required to obtain a Federal Firearms License (FFL). A dealer is described as anyone who is “engaged in the business of selling firearms at wholesale or retail.” This relates to gun dealers who are considered operating in this field as their livelihood. For those who make only occasional gun sales or may sell from a private collection, FFLs are not required. This loophole means that “prohibited purchasers” are still able to buy a gun from a private seller, and while it is illegal, these “private sales” are tolerated because they do not require background checks and therefore the private seller has no way of knowing whether the buyer is a “prohibited purchaser.”
The effort to close the loophole failed in 2000. That same year, Mauser and other gun safety advocates turned to another path—the citizens’ initiative. The language and legal guidelines needed to be structured in specific ways and the wording required the approval of a legislative committee. Following the legislative committee consent, the language would be placed on petitions, which needed to be signed by a certain percentage of eligible voters in order for the initiative to be placed on a ballot. The legal team, the SAFE Colorado board and the many volunteers moved ahead with the strategic development of the ballot initiative, known as Amendment 22.
The drafted ballot initiative was similar to the gun show loophole bill that failed in the legislature, but this time the language was slightly stronger. After getting the needed signatures and after tallying the petitions, 110,000 signatures were gathered, more than enough to overcome gun lobby challenges and about 62,000 more than were needed to get onto the ballot. And on August 2, 2000, SAFE members and volunteers gathered on the steps of the state capitol, where Tom Mauser, who at times wore his son’s shoes, spoke to the group before walking to the Secretary of State’s Office to present the signed petitions.
The opposition was fierce! But, Mauser told supporters to remain positive about what could be done to prevent guns from getting into the wrong hands. Wanting to prevent further tragedies was not an “emotional, knee jerk reaction,” Mauser said.
Opponents expressed sympathy to Tom Mauser but would follow up with statements such as “We cannot allow our sympathy for Columbine to guide our public policy. We feel for these victims. We understand Mr. Mauser’s pain. But no law will bring back Mr. Mauser’s son, and no law would have changed what happened that terrible day at Columbine.”
Mauser responded, “I was not engaged in this debate to bring Daniel back. It was too late to undo Columbine. I simply wanted to prevent another tragic shooting by ensuring guns were not easily available to a child or criminal.”
Closing the gun show loophole was now up to the citizens of Colorado. Many major newspapers in the state endorsed Amendment 22, as did four living former governors, including two Democrats and two Republicans. Senator John McCain agreed to tape two television commercials in support of Amendment 22 and Americans for Gun Safety arranged and paid for the commercials. McCain said during the commercials, “I’m John McCain with some straight talk. I believe law-abiding citizens have the right to own guns, but with rights come responsibilities.” Amendment 22 passed with a 70 percent “yes” vote in Colorado and a similar citizens’ initiative to close the gun show loophole passed in Oregon by a margin of 60 percent to 40 percent.
As a speaker at an election night party Mauser summed up his role in passing Amendment 22 by telling the crowd that someone mistakenly thought he was the founder and brains behind SAFE Colorado. “No, really what I have done is provide a face for this movement, the face of a victim of gun violence. I’ve provided a soft, reasonable voice that matches and complements this common-sense amendment. And I provided a story—it’s Daniel’s story—a story that makes people realize that we are all victims of gun violence,” he said. “And we are all capable of doing something about it. And we did so tonight.”
Today, Tom Mauser is a national figure on gun safety efforts. He is on the board of SAFE Colorado and a board member of CeaseFire Colorado, the primary gun control lobbying organization in Colorado. He has appeared on many national news programs and was introduced by President Bill Clinton at a State of the Union speech.
Much has happened within our country since the Columbine Massacre more than thirteen years ago. Mauser continues in the effort to promote reasonable gun safety laws. Just after the Aurora shootings Huffington Post asked about the theater massacre that took place only miles from Columbine. Mauser responded, “How many of these do we have to endure before we say this is enough?”
Advocacy, particularly on a public level, brings with it the risk of backlash, and Mauser has certainly been the target of insults, mean-spirited messages, and the dishonoring of his slain son, Daniel. One such message read in part; “Tommy boy; You’d better watch out, you better not cry because the ____is coming for you. Maybe not your house, maybe your office, maybe a smear campaign.” There were other incidents laced with rudeness and hostility. Some accused Mauser of capitalizing on the Columbine tragedy to promote a personal gun control agenda. He has heard the harsh rhetoric and endured the incivility and taunting from some extreme gun activists. Mauser, however, is a man with a message consistently reminding his audiences that he speaks for common sense gun laws.
“We’ve seen mass shootings in just about any place you can imagine: movie theaters, bars, nursing homes, schools,” he said to the Huffington Post. “People see cases like this and say, it’s really terrible but let’s not change our gun laws.”
He recently spent time in Newtown, Connecticut, site of the Sandy Hook massacre of grade school children, teachers, a social worker and the school principal. “I went to Newtown to be there for the kickoff of a new organization, Sandy Hook Promise, which is dedicated to addressing the causes of gun violence, and also to give comfort and support to the parents and families of the victims.” Mauser recently said.
The Sandy Hook school massacre of young first graders and staff members has given rise to more concern about gun safety. What will be the result of gun safety efforts after this tragedy? Is there a cultural shift taking place toward reasonable gun safety efforts?
“I see a cultural shift occurring, particularly among young people and among gun owners, who recognize they have the freedom to get a gun for protection but wonder why there aren't more steps in place to keep them from dangerous people and why some people feel the need to have assault weapons and huge caches of firearms,” Mauser said.
The journey from grieving parent to an advocate for gun safety laws continues for Tom Mauser and his family. “It's been an ongoing healing process for us, as it is with any parent who loses a child needlessly, and it's been made more difficult by being part of such a high profile tragedy, and one that gets aggravated with news stories of other tragic shootings. Our faith in God and our adoption of a baby from China 12 years ago has certainly helped us greatly in our healing process,” he said.
But, Tom Mauser, who still often walks in Daniel’s shoes, will not shrink as the conflict over gun safety in the United States goes on. He proclaims, “We've been meeting with our partner organizations in the gun control movement to strategize how we'll prioritize the gun control bills being introduced in the legislature and fight the many, awful pro-gun bills flooding the legislature.”
Tom Mauser is the author of Walking in Daniel’s Shoes. It is about his journey as an advocate who literally wears the shoes his son had on when he died as he speaks and/or attends special events and anniversaries. The book can be purchased at http://www.amazon.com/Walking-Daniels-Shoes-Tom-Mauser/dp/0985302119.
Judith B. (Judy) Taylor is president of Leading Edge Advisers, a consulting company focused on reaching women consumers. She is a former educator, publisher and has been a successful professional practitioner in the women’s market for over twenty-five years. She can be reached at [email protected].
Etiquette Vintage Design: Leading the Way to a More Thoughtful Fashion Generation
A Retrospective of New York Fashion Week’s Newest Designer
et.i.quette \'etikit\ (n): A code of behavior that delineates expectations for social behavior.
With so many fashion trends abounding in the modern world, it can be quite an uphill climb for designers to gain even slight recognition or at least a mild foothold within their own industry. Eric Renteria, proprietor, at Etiquette Vintage Design, took on such an impassioned challenge in creating a clothing company that has aimed to capture some of the most classic eras couture has ever known.
"For me, that's one of the most important keys to keeping a line going, a focus on timeless, enduring flair," says Renteria, referring not only to clothing, but also to attitude. "It's how Brandyn, my business partner, and I were raised: a good code of morals, amidst a hectic society. We find it strange to see men not opening doors for women,” he continues, “We're both Southern gentleman.” That being said, Etiquette Vintage Design was never meant to be just about apparel. It was conceived with an aim to remind people of how there are few things cooler than decorum, politeness and being respectful to one another.
Named for behavior guided by rules of social conduct and refined decorum, the burgeoning company has recently been able to stand out amid many of its peers mainly due to its clean simplicity, its quiet approach and its reflection of a humbler time—namely 1950s America. Because the basic templates are rooted in this era, Etiquette structured a foundation upon which it could easily adapt to each year's coming trends and colors.
However, keeping up with the ever-evolving face of apparel is not where Etiquette Vintage Design’s main interests lie. "We both decided early on to stay true to our values and to attire people in something we ourselves would wear. Not what we think others will or won't like," states Brandyn Balmos, public relations and marketing strategist for Etiquette. "Eric and I constantly keep our ears to the ground, as far as this business goes. But we're not swayed by what's currently hip. Hip came to us, through no premeditated effort on our part."
The original color-scheme ideas were actually derived from the vivid paints used on classic automobiles of the 1950s and 1960s. Commencing with the desire to use only true vintage materials (even including a particular sweater's backstory when sent to a buyer), Renteria still enjoys digging for those one-of-a-kind pieces. However, they can become extremely difficult to come by because only so many were made.
Though Etiquette is proud of the time period of which it currently represents, the startup wants to delve into other fashion eras as well. Nearest the top of the list: the Roaring ’20s. Because Renteria begins his designs with what is often already familiar to the public by simply altering certain pieces, even minimally by adding patches, brightly colored piping and more, there is always an avenue to create something original and to keep moving forward.
The Amarillo-born designer pays impeccable attention to each piece's fit. He says, “A contoured look, especially in men's blazers, has always been important to us. It's how we, ourselves, dress. So, why give anything less than the same to a client? Men can feel great confidence from clothing if they're paying attention. For women's attire, namely skirts, it's about fun. It's about a carefree spirit and dancing to Buddy Holly in the springtime. That sense of unruffled enjoyment is where a self-assured woman is found," says Renteria. A base tenet of Etiquette is “vintage style with a modern twist and fit.” There is a deep enthusiasm for clothing of great heritage—and for adapting that clothing to exist in the present age of apparel—that makes Etiquette's endeavor both challenging and exciting.
Aside from being published in several well-known magazines, including Playboy and VOGUE Italia, the line was also invited to take part in New York's Fashion Week this past February—an opportunity that was simultaneously unexpected and humbling. With Renteria being a new-to-the-scene designer, it allowed him to meet with other like-minded creators who have been in the fashion world for some time. "There's always something to learn in an environment like that. It opens your eyes to the larger world and allows you to better understand your industry a bit more," he says. "At the start of this company, we took on any opportunity we could, to gain some ground. We'd even create our own events. It was an absolute honor to be invited to something that we'd always heard about, but only dreamed of attending."
Since its inception two years ago, the Etiquette team has devoted their time to garnering as much press and recognition as possible to attract potential buyers. It's what has allowed the Texas-based entrepreneurs to more efficiently connect with industry heavy-hitters that would have, otherwise, possibly been out of reach. With new promotional ideas in play, Etiquette is devoted to progression, with a sturdy foot loyally planted in the fashions that have come before it.
Creating practical, functional designs that people can wear for either special occasions, parties and even just out on the town is what Etiquette intends to do. The designs have been in such high demand, not merely because they're eye-catching and comfortable, but because they are fantastic conversation pieces. "Eric or I won't go a day without somebody asking about a sweater or blazer either of us have on," says Balmos.
As with any business venture, there is usually room for growth and change. For the guys at Etiquette, reinvention can occur in many ways, and it doesn't have to entail a complete overhaul. Sometimes, something as simple as expanding with new accessories, say, bow ties, can direct a line toward broader horizons. According to Balmos, it's really about not getting bored with what you're doing. It's about maintaining a zest, a passion, for what's being created or pursued. And, most often, even the smallest amount of headway can help to perpetuate that fire and hopefully to lead people into a new feeling of confidence and charm.
Western Union Looks to the Future
An Interview with Patrick Gaston, President, Western Union Foundation As the brilliant blue sky outlined the Rocky Mountains, I eagerly drove to Western Union Headquarters to meet Patrick Gaston, the new leadership of the corporation’s foundation. It was a perfect Colorado day to welcome him to Denver. I was humbled when we met, as he genuinely conveyed true compassion and kindness within moments of our introduction. Western Union philanthropic efforts are extraordinary, and now the foundation executive looks to the future with great aspiration.
Gaston arrived in Denver in December 2012 with a primary goal to build on the Western Union Foundation’s legacy of corporate philanthropy and to help create shared value, elevating the notion that a company can increase economic success while making the world a better place. Under his direction, he will continue the award-winning philanthropic initiatives previously led by past president Luella Chavez D’Angelo, now chief communications officer for Western Union.
Gaston is a visionary with real-world experience. Born and raised in Haiti, he led one of the largest corporate foundations in the United States as president of the Verizon Foundation. He later served as senior adviser to the Clinton-Bush Haiti fund, tying back to his roots. He also started a corporate social responsibility (CSR) consulting company, which prepared him for this challenging opportunity. Gaston has a strong respect for the work Western Union Foundation has contributed to our world. He says, “Luella created this foundation, and I am the beneficiary building on her great work.”
D’Angelo and her team supported programs focusing on economic development, education and disaster relief efforts as pathways toward a better future. Since its inception, the Western Union Foundation has awarded more than $85 million in grants to more than 2,591 nongovernmental organizations in more than 130 countries and territories. They were a winner of the prestigious Committee Encouraging Corporate Philanthropy (CECP) Excellence Award in 2009.
Gaston knows he has a great base to build on as he reflects on the past work done by Western Union and its employees, but he believes that the good can only grow and asks, “Why stop there? The power of CSR is the ability to tap into the human networks within the institutional networks. Bringing like-minded people together for a common cause can inspire positive change.” Collaboration can help change the outcome of our most pressing issues, such as poverty, access to education and economic sustainability.
Gaston intimately understands the power of Western Union’s core business—elevating communities and changing lives through financial inclusion. As Gaston describes, “As a youth, although we were not wealthy in terms of income, we were rich in values taught and promoted by our parents and extended family. These values were about education, integrity, family and spirituality.” Growing up in Haiti, this commitment to growth and education led his family to emigrate. His mother was the first to leave Haiti, for Cambridge, Massachusetts. He distinctly remembers when the Western Union envelope with the bright yellow logo, wired from his mother, arrived. As he understands firsthand, Western Union’s services—and the financial inclusion they provide—have lifted families from poverty and helped to strengthen families around the world. Sitting across from Gaston in his new office, his resilience was evident. He was a child of modest financial upbringing, but rich in values and his commitment to others.
His childhood experiences created a natural path to his current position as president of the foundation, and his experience and education certainly add to his credentials. Gaston holds a B.A. from the University of Massachusetts and an M.B.A. from Northeastern University. In 2004, he became president of Verizon Foundation, one of the 15 largest corporate foundations in America, where he led and implemented innovative programs that promoted social change in key focus areas of education, literacy, health care and domestic violence prevention. Following the devastating 2010 earthquake in Haiti, under Gaston’s leadership, Verizon instituted donation texts for Haiti victims that resulted in $10 million raised by employees and customers. Following his service as senior adviser to the Clinton-Bush Haiti fund, he continued to move forward with innovative approaches to solving community problems when he founded Gastal Networks, a management consulting firm assisting organizations with building corporate social responsibility and high-impact philanthropic strategies.
Gaston admits he is a lifelong learner and upholds that, “Education is the change agent to the future for those in need.” So naturally it is a committed and intentional move to be part of Western Union’s Education for Better initiative. Unveiled during the launch of the United Nations Education First Initiative, Western Union’s Education for Better program will provide an average of up to $10,000 per day for more than 1,000 days in potential Western Union Foundation grant funding for nonprofit, nongovernmental organizations (NGOs) working in the education space, including support for one million days of school through a new corporate cause-marketing campaign.
Doing this alone is not an option. A collaborative approach to invest in our students today, in a measurable and purposeful way, is mandatory to fill tomorrow’s workforce, he believes.
It was a pleasure meeting a Fortune 500 executive who profoundly believes that corporate engagement in society is essential to economic growth. More of the ICOSA interview with Patrick Gaston follows—in his own words on looking to the future and knowing his next move.
ICOSA: What is the difference between philanthropy and a corporate social responsibility (CSR) strategy?
Gaston: CSR can encompass a number of disciplines—shared value, cause marketing, governance, compliance and more—which all serve to grow the business. Here at Western Union, we understand that our products and services contribute to our financial strength as a company, as well as the financial strength of the people we serve. A corporate responsibility strategy is about how our business does well by doing good. Corporate philanthropy is what it sounds like—philanthropic giving to programs around the world working to make lives better. Philanthropy flows from, is part, of corporate responsibility.
Philanthropy has existed for many years—it’s really about good will. Philanthropy, then diversity, environmentalism and so on, inform corporate responsibility. One flows into the other.
ICOSA: You have worked extensively with large corporate foundations, first at Verizon and now at Western Union Foundation. Have you seen changes in the giving strategies over the last few years? If so, what changes?
Gaston: I am pleased to see giving strategies which align with the mission, expertise and consumers of the corporation. By strategically focusing giving, companies are able to leverage their expertise to build meaningful partnerships across the board—with NGOs, with the company’s business partners, consumers, employees, etc. This amplifies the company’s giving impact and makes it possible to make a real difference in people’s lives.
ICOSA: Should all size companies incorporate CSR into their business strategy? Is it a trend or visionary?
Gaston: CSR has no boundaries; we can all do better by doing good. To make an impact, CSR needs to be embedded in every aspect of how the firm does business, and senior leaders need to be fully committed.
ICOSA: In your opinion, what are the biggest challenges nationally and globally going forth? Can the private sector help? Can you please share an example?
Gaston: The big challenges get back to economic opportunity for everyone, which is dependent on having relevant skills for a 21st-century workforce. I think access to education is one of the most basic, fundamental ways the private sector can help.
Look at community colleges from a different framework. These regional colleges are quite diverse in student population, and more than 40 percent of all U.S. college students attend a community college. It is the center of excellence and the very location of economic opportunity. We must build partnerships to get the type of employee we need for the future. It can’t be just government, NGOs or admissions offices. We need the private sector to invest in the students. We need this now to grow our workforce. This same framework, where the private sector educating assists in developing curriculum directly for workforce needs, can be replicated in other countries to preserve access to education that promotes real income.
ICOSA: What do you personally hope to achieve through Western Union’s Education for Better initiative?
Gaston: Education has always been important to my family. I recognized early that it was my ticket to the better things in life, so I was willing to push hard to get a higher degree. I want to make it possible for others to have access to the same opportunities I had.
With Education for Better, Western Union is leveraging its assets to promote education, the surest path to a better future.
Unveiled during the launch of the United Nations Education First Initiative, Western Union’s Education for Better program will provide up to $10,000 per day for more than 1,000 days for nonprofits and NGOs working in the education space. It also includes support for one million days of school through PASS, a cause-marketing program in conjunction with the UEFA Europa League.
ICOSA: How will you measure success?
Gaston: Before a company jumps into measuring, you have to know what you want to measure. Otherwise the matrixes are meaningless and not quantifying an outcome. So setting goals is key, and collaborating with partners around these goals pushes it forward. For example, on education there are thousands of variables to measure, but identifying goals that result in employment can be measured. Eventually the economic impact can be realized and measured as well.
ICOSA: How important is a collaborative effort to the Education for Better initiative?
Gaston: Western Union understands the power of the business sector. I have never experienced an organization that is so comprehensively addressing social issues with their partners—in partnership with their partners. For example, with our education goals, we could double, even triple, the effort combining the forces of collaborative partners, from NGOs, governments and the private sector. Using our influence, we can gather momentum through aligned partnerships. It’s not just Western Union—it’s our communities doing good—and we all will prosper. That brings me to shared value. You hear those words a lot. It is shared value for all partners getting involved to make a real difference in the communities where they operate. This is something that I will be jumping on because I know it will make a real impact.
ICOSA: Do you have any thoughts or advice to those that are thinking about making their next move?
Gaston: From a career standpoint, shared value philanthropy is relatively new. Be flexible—lead with commitment to community. Volunteer for things that you think are important. If you work for a company that doesn’t emphasize corporate responsibility, learn about it and find out what opportunities exist to promote this in your company. Find people who share your commitment. Collectively we can make a significant global change; that’s my passion.
On my way home from the meeting with Gaston, I looked up into the vivid blue Colorado sky above the peaks of the foothills and saw an amazing display of Canadian geese. There must have been thousands making formations that were intricate and inspiring. These birds that we see every day need each other; they work best collaboratively, all working for a common goal of migration. On this extraordinary day, I saw the geese as a symbol of collaborative change for good.
Cristin Tarr is co-founder and managing director, speaker, trainer and corporate social responsibility specialist at Business Service Corps, LLC (BSC). As a transformative social enterprise, BSC assists companies with high-impact community engagement programs. To contact Cristin, visit www.businessservicecorps.com. Amy Fischer is the director of social ventures for Western Union Foundation. To learn more about the Western Union Foundation, visit, http://foundation.westernunion.com/.
State and Community Development Plans Boast Economic Incentives
Bringing New Business to Nebraska Touting fiscal opportunities has not been at the forefront of state chambers of commerce or offices of economic development across the nation that are responsible for luring in businesses based on their states’ competitive incentive opportunities. Instead, states are selling themselves based on aesthetic qualities that their cities have to offer. While this seems to be the case for most states, Nebraska, which ranked sixth behind places like Colorado, North Dakota and top-ranking Utah in Forbes 2012 List of Best States for Business, continues to be assertive in its pursuit to bring new businesses to the state.
“Our right-to-work legislation is actually built into our constitution so that is a pretty sound protection for employers. We have no state debt by constitution, so the state of Nebraska can’t borrow money, which means we’re not stalling future obligations and we’ve managed to live within our means in that process,” said Richard Baier, executive vice president, Nebraska Chamber of Commerce and Industry. “So among other great attributes, these have really helped Nebraska float to the top.”
Coupled with strong educational systems along with the resurgence and diversification of the economy, Nebraska has had the support of great leadership championing the state. “Governor Heineman has completely modernized our incentive program called Nebraska Advantage,” said Catherine Lang, Nebraska’s commissioner of labor and the director of the Department of Economic Development. “Truly, while the state of Nebraska can’t lend the credit of the state, we believe that we offer one of the most aggressive incentive programs for businesses and their long-term goals.”
The state’s aggressive incentive program aptly titled, Nebraska Advantage, established by the Nebraska Department of Revenue, was created to “offer comprehensive economic development incentives to meet the needs of expanding or relocating businesses” as a way to increase Nebraska’s competitive advantage amongst other states in the nation; especially as it continues to establish itself as a place of higher education, building its workforce, and increasing economic development.
“Our initiatives have been to support all of our communities whether they are our largest communities like Omaha or any one of our smaller communities that are attempting to work and attract new businesses to their locations or expand existing businesses in their locations,” said Lang, “all of which goes to the effort of creating high-quality jobs so that our citizens can have a high standard of living in safe communities with quality education for their children and of course for the future of our state.”
One of those communities is Sidney, located in a remote area of western Nebraska. Known mostly for being home to outdoor retail-giant Cabela’s, which employs roughly 35 percent of the town’s 6,857 citizens, Sidney boasts a growing business sector and is working with the state to build its workforce and attract new and expanding businesses. While growth has been slow, the steady increase has helped the town plan for the future and lead its citizens into a more prosperous future.
Hampered by state rules and regulations, money to incentivize new and expanding businesses has been slow and cities and towns across Nebraska have had to find creative ways to entice businesses to their communities. Adding to the competition are states like neighboring Colorado and Utah who lead the country not only in a pro-business atmosphere but also possess a variety of outdoor activities, sports teams and growing community-development projects that sparkle in the eyes of interested executives. This has forced communities like Sidney to take action, providing real cost-based savings and financing incentives for these businesses.
“Companies may not first think about Nebraska because we’re a rural state in the middle of the country, so we want to make sure from an anecdotal standpoint as well as a business standpoint that they find Nebraska a successful place to have their business,” Lang emphasized.
Recognizing the challenges, Sidney, like the state of Nebraska, developed its own plan under the town’s Local Option Municipal Economic Development Act Section as its own development tool in 1997. Under the plan, one-fourth of each cent collected through local sales tax is allocated for the economic development program. The town’s citizens voted nearly unanimously, with 92 percent in favor of the plan, that would generate $2.5 million dollars to be used for expansion projects over a 10-year period. Then again in 2007, Sidney’s citizens reinstated the plan for another 10 years with an annual allocation of $300,000 of existing sales-tax revenues.
While $2.5 to $3 million seems trifling to an outsider, the development program paid dividends to the town. In just 10 years, between 1997 and 2007, before the plan’s reinstatement, the town’s valuation grew by 56 percent, annual building permits averaged $12 million, up from $4 million previously, and Sidney led the panhandle communities in population and job growth. It was evident that the plan had a direct correlation to the progress of the community.
So when a new vote came for the program’s next 10-year extension in 2007, citizens again jumped on board. Along with new allocations, $500,000 was specifically “targeted for community economic development projects in the area of Sidney north of the Union Pacific tracks.” One such company fit the bill exactly: Adams Industries—located in an industrial park just north of Sidney on the old Sioux Army Depot and next to Cabela's distribution center.
Free Trade Zone, Dual-Served Rail Access Puts Adams Industries on the Map
The bones of the old Sioux Army Depot, deactivated in June 1967, greet you as you drive in from the state highway. Once a United States Army depot during the height of World War II, the site contained ammunition storage igloos, supply warehouses, support buildings, living quarters and 51 miles of railroad tracks on more than 19 thousand acres. Besides its dry climate for storing munitions, the Depot was centrally located to both coasts and had access to both major rail lines. After 25 years in operation, the Sioux Army depot was shuttered. Some of it was sold back to the existing farmers who were displaced during the depot’s construction; the rest was left to the Army and the town of Sidney to secure some sort of use for the property. Both had mediocre success.
Much of what remains of the depot is either dilapidated structures or the eroded frames from existing buildings spread about the property, which now only encompasses roughly 600 acres. Yet, tucked up front, alongside several beleaguered and restored facilities is a new warehouse. There, mixed amongst the past, lies the future of Adams Industries—a family-owned and seemingly modest-sized company.
At its onset, the company used its truck fleet as water trucks and to move drilling rigs, but as the oil fields slowed in the late 1980s it was clear that the family needed to reevaluate their business model. While the rig count declined, oil companies started using more pipe per rig as the technology within the industry changed. The Adams family immediately realized where they could carve out and cultivate a niche. Expanding the business, Adams branched out into the flatbed truck market and started hauling pipe. It paid off. The company eventually got too big for its space and in 2000, Adams started purchasing land for warehousing at the depot north of Sidney where they are currently located.
“We knew that to compete in the market that we were in, that if we could get the product into this area cheaper it would give us a more regional approach, especially using the transloading side of the business to get the product here and then from us to the end-user,” said Don Adams, president of Adams Industries. Within a few years, Adams not only grew, but also became a viable opportunity to lure businesses to the state and increase economic growth in the area. The depot’s distinctive features and location hadn’t gone unnoticed.
Adams’ depot property not only allowed for expansion, but it also provided dual-served rail access and a rare free trade zone (FTZ) for a rural area that the state of Nebraska worked on for five years for Cabela’s, whose distribution center is also on the property. Normally only available in urban areas, the FTZ increased the types of businesses, especially in manufacturing and agriculture that could come into the area.
“As you begin to look at transportation in this country, we wanted to find where there was really solid rail access, and when possible, where could we find dual-rail access,” said Baier. “So that’s when we started working with Don Adams and his group to see what we could do to take that area and develop it into a preferred site for companies that needed heavy transportation access.”
The state of Nebraska’s Department of Economic Development in conjunction with the municipality of Sidney and Don Adams soon started work on a set of terms to continue development on Adams’ depot land. With Nebraska Advantage already in place, the group worked to see how they could take Adams already preferred status with Union Pacific (UP) and Burlington Northern Santa Fe (BNSF) and make it work for others who could be potential tenants on the land.
Because Nebraska can’t lend the credit of the state, the group found a unique provision within the state statute that allowed for the use of tax increment financing (TIF) outside of a city limit as long as it was tied to a project that provided natural, value-added agriculture. Concurrently, Bell Lumber & Pole was looking for a new location to expand its business. The TIF agricultural statute solidified Bell’s business within the state. The diversification wasn’t just good for the state—it was good for Adams, too.
As the anchor tenant, Adams needed to prepare for the additional space that Bell would need. But at 90-percent capacity, the company was experiencing some growing pains. The company had already expanded three times to its current 600 acres, so to accommodate Bell and other potential manufacturers, they needed to significantly expand. The previous expansions had resulted in a significant diversification of their business, allowing Adams to bring in everything from line pipe, OCTG and coils to fertilizer, bulk rail and lumber products, as well as storage for barite and bentonite. Adding additional partners could only help.
The investments from the three earlier expansions may have seemed risky at the time, but this newest expansion was a no-brainer, especially with the help of TIF. Already, Adams had privately funded renovations of the site’s drainage system as well as the utilities and was close to finishing all of the warehouse buildings on site. But what the property desperately needed was extra room and significant improvements to the rail infrastructure. Along with private and state funding, the $10 million Adams Industries’ expansion will increase the property size from 600 to 900 acres and will bring 10 to 12 miles of rail capacity on site. The $5-million rail expansion alone will allow Adams to handle seven-unit trains at once as well as manifest cars, a distinct advantage to that of other locations that cannot handle the throughput.
The expanded tracks will be especially useful for industries utilizing Adams’ site for storage. The dual-rail advantage works especially well for transporting crude oil. With the additional rail, tanker cars with aggregate product can be held onsite and transported based on spot markets of the refineries without incurring a switching fee to move the car from one rail to another. The site allows for companies to make decisions that are most economical for them, a very attractive quality for businesses.
“Successfully bringing Bell to Sidney had a lot to do with Don Adams’ energy, passion and enthusiasm. I’ve never seen Don find a project that he couldn’t get done; he also has that same ‘What are we going to do to get to yes’ mentality and he’s been willing to risk his own personal wealth, he’s been willing to integrate his kids into his business, and so he really has been the driver behind this project.” Baier said with praise, “He is key to making a lot of things happen without all the attention, he’s very unassuming, and that’s what separates Don from others.”
Adams and its dual-rail site is one of the few things leading the progressive town of Sidney into the future. “The key is to let people know that we’re here. A lot of companies don’t realize how close Sidney is to some of the large areas and how competitive this town can be,” said Adams. For the town of Sidney, whose primary employer is Cabela’s, it’s really about creating new jobs, broadening their business base and building a community to lead them into the future.
The Responsible Generation
Leveraging Corporate Responsibility for Employee Attraction and EngagementMillennials, also known as Gen Y—those 20-something kids in the office that don’t always seem to get it, have been labeled entitled, lazy, unfocused and self-absorbed. But who are these young people and what makes them tick? Perhaps they are not the uncaring generation we thought. Global environmental and social awareness is in their DNA and they aspire to be active corporate citizens. Some believe that these young professionals may eventually elevate the private sector and transform business as usual into thriving conscious capitalists. So understanding and empowering the new workforce is vitally important to every industry and every company’s growth. It becomes quite clear we can’t move forward without them.
Millennials were born roughly between 1980 and 2000. They are already integrated into the office, filling cubicles for the past 10 years, but arguably misunderstood. These young workers have a drastically different view of what they expect from the workplace experience. Millennials are well educated, very self-confident, creative, and have plenty of energy—similar to generations that came before. However, one attribute that is unlike all generations before is the multi-tasking, information seeking and natural brainiacs of modern technology. A key phenomenon, Gen Ys are the first generation that does not need authority to access information. They don’t need to build a relationship with managers nor follow protocol (or stay on the job from 9 to 5) to be successful at work. Sites such as Facebook and gaming give young people a place to tell their successes and constantly reach for and meet a goal through quick problem-solving skills. Relate these characteristics to the workplace, millennials need to be challenged with a clear purpose and respected for their attempts, even when they fail (remember video games). Technology also produces globally aware youth as the world is at their fingertips.
Millennials are the most inclusionary generation—they were born citizens of the world. This generation is the most racially and ethnically diverse generation in history. Gen Ys are conscious bystanders of environmental and humanitarian adversities, literally in their hands. With one look at their smart phones, Facebook or YouTube they see crippling inequities and destruction that humans or nature impose on our own planet and they take action. This compassion and empathy for others is part of what makes this generation so powerful and must be integrated into the workplace. Rena Dulberg, director of community service, academic affairs at Johnson & Wales University-Denver Campus, believes that good employees expect to work for responsible companies. “We teach students to ask their potential employer about their social and environmental practices. If they don’t have an answer, the student should be comfortable to move on if this is important to them.”
The Responsible Generation may be a better label for this generation. The information revolution allows young people to learn more about the world around them, resulting in compassionate global citizens. Take for example the Kony 2012 experiment, which to date, has been viewed nearly one billion times. Supported by this information explosion, millennials have knowledge and information about society as if it affects their daily lives.
What’s more, caring is extended into schools as well. Almost every elementary school in America has on-going programs to raise money for a cause. Becky Lindberg, a student at Johnson and Wales said, “Community service is part of our education at the university and while we were growing up and applying for college, community service was almost a requirement. Why companies aren’t engaging employees in responsible practices as part of my job is surprising, as that fits with what I was taught and with my values.”
Why should companies care about millennials in the office? This generation makes up 80 million people and is projected to make up more than half of the U.S. workforce by 2020. At the same time as millennials are entering the workforce, the baby boomers are leaving—leaving a significant labor and knowledge gap, especially in the STEM fields (Science, Technology, Engineering and Math). Jim Paradise, graduate talent manager at Lockheed Martin stated, “Sixty percent of our current workforce are baby boomers and over half of those employees are eligible to retire today.”
Even with the slow economy, Gen Y workers are choosing where they want to work, or not work at all. This generation has an overwhelming sense of responsibility. They have grown up learning the importance of recycling, using less water, volunteering and sending money to those in need around the world. In a Deloitte survey of millennials, 92 percent believed that companies should be measured on more than economic success. In addition, 86 percent polled believed that companies had the same or more potential to make a positive social impact and 52 percent said that businesses should use their innovation to change our world for the better.
With so much written on Gen Ys, it is hard for managers to know what direction an office should take to get the best from this generation. One baby boomer-aged manager said, “Let them adapt, we did.” But they will not, and this is part of the reason attracting top talent and retaining good workers has been such a challenge for HR departments. This generation prefers to be fulfilled rather than climb the corporate ladder. Dulberg adds, “Social responsibility is giving companies a market share advantage. I think it is smart of students to use this as an evaluative criteria when choosing a company to work for.”
“Gen Ys have a reputation for ambition, efficiency, fondness for working in teams, and a mix of boldness and casualness in interpersonal relationships. All great attributes, if you can convince them to work for you,” explains David Stillman co-author of The M-Factor: How the Millennial Generation Is Rocking the Workplace. “This is a generation in search of meaning, and by that we mean from day one they want to walk into the workplace and know they are making a difference in the world.”
To simplify the barrage of information on millennials, below are the four key drivers and misunderstood myths about millennials and what they need in the workplace to be successful. Leveraging corporate social responsibility strategies to attract and retain workers will be the hallmark of the future work place, as it blends values with corporate mission.
Millennial Truth #1: Millennials want to be responsible and purposeful in the workplace.
Manager Myth #1: Millennials are self-absorbed and unfocused.
Embed corporate social responsibility (CSR) practices into every aspect of your organization. A top executive from a Fortune 500 company said, “An overwhelming number of young people ask me how they can get into a CSR profession, but I say all professions need to have CSR as part of their job.” So decisions companies make on the environment, the community and the employees should not be stuck in the public affairs department or the sustainability office. CSR needs to be integrated and employee performance reviews reflect triple bottom line—people, planet, profit—performance. One of the best ways managers can give purpose to the workplace is to challenge employees every day to use their resources and competency to solve societal problems. This generation wants to know what your organization stands for in improving society, what it stands for in action, as opposed to reporting the dollars donated or hours volunteered. Millennials want to know how they will make a positive difference in the world if they join your business and how it will integrate into their jobs on a regular basis.
Tom’s Shoes, Patagonia, Rally Software, Snooze Eatery and New Belgium Brewery to name a few, are companies that embed corporate responsibility into their organization. They are the doers. Patagonia CEO Casey Sheahan says, “They (the companies) know what they do each day is contributing towards a higher purpose—protecting and preserving the areas that most of them love spending time in.” For millennials, the CSR movement is about purpose and impact. Setting responsible goals for a company and allowing the individual employees or teams to meet these goals creates purposeful and measurable actions of good that go beyond a traditional job. This work practice is called social innovation, unleashing the barriers to innovate new ideas to help with world challenges. And better yet, these incubators of thoughtful purpose for good can potentially lead to profitable return. Dr. Bernard Amadei, a professor of civil engineering at the University of Colorado in Boulder and founder of the humanitarian organization Engineers Without Borders said, “Everything an engineer designs impacts society, and every engineer should be more aware of those potential impacts. You can become a better citizen engineer without changing the job you’re in.”
Millennial Truth #2: Millennials are respectful and caring about the world around them and want these attributes in their place of work.
Manager Myth #2: Millennials act entitled and indifferent.
Set corporate initiatives that positively impact the planet and the communities where an organization lives and works, locally and globally. This generation is the most inclusionary of any generation before. In the United States almost 40 percent of 18 to 30 year olds are minorities and they care about world events. Specifically, they believe that, as civic-minded employees, it is up to them to assume the responsibility of making a lasting, positive impact on the future. If they care, they want their company to care too. A recent study by Cone Communications found that 83 percent of millennials trust a company more and 79 percent want to work for a company that shows they are socially and environmentally responsible. Protecting our environment, caring for communities and a respect in the workplace is paramount to these young workers. With technology and social media, transparency is critical and conscious capitalists understand the value that grows with active corporate citizens.
Sanofi, a global healthcare provider, believes in building global citizenship through the employees’ children—the next generation of do-gooders. The “Holiday Exchange” is a way for the children of their employees to become culturally enlightened. Sanofi families host Sanofi children from diverse foreign countries and then send their children to live with their Sanofi “partner.” Typically, each exchange lasts for about one to two weeks, and Sanofi provides a financial contribution to cover the travel expenses.
Over the past four years, Hanes Corporation has teamed up with the Salvation Army to distribute 2.2 million socks annually to the homeless. A past recipient of the sock drive is now helping with the project and believes that we can change the world with what we buy today.
We can also choose where to work based on the company’s commitment to our communities. Snooze, a breakfast and lunch eatery in Denver and San Diego, built their restaurant on making great food, while also caring for the environment and the communities. They recently implemented 12 months of green, an initiative that protects the planet by buying local, recycling and composting, reducing chemicals, etc. Adam Schlegel, co-owner of Snooze says, “Caring is who we are. Our employees know our company puts actions behind what we care about and ultimately we attract more guests, we get better people working for us, and we save money.”
Millennial Truth #3: Millennials want a work-life balance and recognize that their professional assistance can go beyond the office walls.
Manager Myth #3: Millennials are lazy and can be defensive.
The integration of social and environmental values into the workplace and the alignment of the company mission with cause is paramount to this population. Millennials don’t see workplace completely separate from home life—that is why companies are now offering perks, like bring your dog to work or a foosball table in the break room. Those are nice to have at a company, but office perks alone won’t attract Gen Ys nor keep them working at your company. It’s all about values of the company and integrating those values into the workplace. This generation needs to be engaged, appreciated, and contribute to the world. Ruhi Shamim, a blogger specializing in corporate social responsibility, explains, “As a millennial, I would love to see companies invest more in younger people by incorporating them into their CSR and civic engagement strategies. Don’t ask these young employees to participate in a Saturday clean-up at the park and expect them to be engaged. They want to be part of a service project that builds a long-term community partner, where they can offer expertise while working toward a goal of solving a pressing societal problem.”
Rally Software founder, Ryan Martens, at a recent TedX talk described the, “Citizens Engineer as an engineer confronting societal problems and tackling solutions with the commitment to create a better future.” He believes it means integrating work, life and purpose. It means drawing sustainability and social justice boundaries from which to work toward moving forward. Furthermore, reputation and values on sustainability and social responsibility transcend into work-life balance, where personal and company values collide.
Millennial Truth #4: Millennials are global independent thinkers, creative and innovative.
Manager Myth #4: Millennials don’t follow authority and think they “know it all.”
Empowering social innovation by creating a corporate culture is very important. One the most innovative companies today, Google, allows its employees to use up to 20 percent of their work week to pursue special projects. That means for every standard work week, employees can take a full day to work on a project unrelated to their normal workload. Google claims that many of their products in Google Labs started out as pet projects in the 20 percent time program. Google is the perfect example of why you can’t stifle innovation!
Since millennials care about the world, the practice of social innovation is very compelling to these young workers. Social innovation is a new vision in which a company profits from creating social change. Social innovation is the “DO” of social responsibility and philanthropy, producing a blend of impact and profits. It turns out this vision of doing well by being good is so powerful to Gen Y that there are now employment agencies that solely match social enterprises with qualified workers. ReWorks and Morethanmoneycareers.com are employment agencies that provide information on responsible career options, including CSR jobs, sustainability careers, and social entrepreneurship options.
Years ago, Ashoka recognized the disconnect between caring and doing, and created a nonprofit that supports new ideas and innovations that inspire a new generation of leaders to make social impacts and create social enterprises. Historically, Ashoka supported social entrepreneurs, but surprisingly the millennials in the corporate world wanted to jump on the social entrepreneurship bandwagon, so they shifted focus to include corporate programs that encourage social changes using organizational networks and know-how. Ashoka president Diana Wells said, “There’s a ‘lost tribe’ of social innovators embedded in corporate America, building better business from the inside out. Ashoka and Accenture have joined together to find them, fund them and change the way the world does business.” Thus, the new role in business is "social intrapreneur," a term identifying individuals of companies that utilize the network, core expertise and infrastructures to extend their job and to solve a societal issue.
In 2009 Amy Chen, a manager of PepsiCo and recent graduate of Stanford, was perplexed that 20 million students nationwide received subsidized school meals, and were lacking these meals during the summer months. Ms. Chen and a group of her PepsiCo colleagues decided to do something about it. “If kids can’t get to food,” they thought, “why can’t we bring food to kids?” That simple insight was the genesis of Food for Good. “I remember one of the first community meetings we had. We were describing how we wanted to work together on pilot programs, and start a process of experimenting, and learning and exploring.” Chen said. Today, thanks to partnerships with state and federal governments, local nonprofits, and community organizations, combined with the expertise of colleagues within PepsiCo, Food for Good has become the largest summer mobile meal delivery program in the United States. It operates all summer long—rain or shine—and has provided more than a million nutritious breakfasts and lunches to underserved youth in Dallas, Chicago, Austin and Houston.
This generation of millennials is looking for purposeful and impactful outcomes that blend workplace goals with societal needs. Adam Schlegel, owner at Snooze Eatery says it best, “It’s a long-term approach to business—people, planet, profit, and how do we act today to make tomorrow better.” Help “The Responsible Generation” grow company profits while doing good for our world. In Dr. Seuss’s words: “You're off to Great Places! Today is your day! Your mountain is waiting, So ... get on your way!”
Cristin Tarr is cofounder and managing partner of Business Service Corps, LLC (BSC); a social enterprise helping companies with high impact employee and community engagement programs. The company has developed executive overviews and employee workshops to educate and enhance corporate social responsibility initiatives.
Candace Ruiz is cofounder and managing director of Business Service Corps, LLC (BSC). She is a part-time business professor at the Community College of Denver. To contact Candace visit, www.businessservicecorps.com. To contact Cristin visit, www.businessservicecorps.com.
Going Underground: Uba House
Gary Uba and his family have gone underground—but they are not hiding from anyone or anything—especially not from the sun. Uba has built an earth berm house, apparently the only one in Denver. Tucked into a gently sloping residential lot in southwest Denver, overlooking the town of Bow Mar and the southern portion of the Front Range mountains, the Uba House is in a typical middle-class Denver neighborhood. At 2,100 square feet, it is a typically sized house with typical fixtures and appliances, but in almost every other way it is atypical.
Most important, the house, except for the front, is covered with earth, four feet of it for the most part. This, combined with its all-concrete shell, enables the structure to maintain a fairly constant and comfortable interior temperature all year round. The house is on one long and horizontal level, with arched features in the façade that hint at domed spaces within. One of the long sides faces outward, due south, with tall, large windows, allowing for passive solar heat in the colder months, as well as light penetration throughout the dwelling. The Uba House has no furnace, in-floor heating or air conditioning units. As a result, there is no ductwork anywhere in the dwelling.
The house uses only electrical power for its energy needs—lights, appliances and hot water. Seventeen solar panels in two arrays on the property (a 3.2 kW system) generate more electricity than the house uses. For each of the 18 months that the Uba family has occupied the house, Xcel Energy has rebated money to them. Far from hiding out, he welcomes scrutiny as ardently as he welcomes the sun and subsequent Xcel Energy rebates.
Seeing the Light
Uba has worked professionally in the construction end of the commercial and residential real estate fields and has long harbored a desire to build his own house. His vision was to build a forward-looking, simple, sustainable and energy-efficient middle-class dwelling—a house that is cheap to live in and one he doesn’t have to worry about when he and his family travel. After extensive research and finding a sloping house site in southwest Denver, Uba decided on an earth berm, or earth-sheltered home. Although earth berm homes can be built on a flat site, building into a gentle slope can save time and money.
The Uba House became the ultimate do-it-yourself (DIY) project. Conducting his own research on the Internet, he soon entered into working agreements with a local contractor and a company in Durango, Colo.—Performance Building Systems, Inc., which specializes in manufacturing steel framing systems for earth berm structures. Uba stayed hands-on in all aspects of the house’s development and construction.
A key goal for the Uba House was that it be cost-competitive with a middle-of-the–road, custom-built house. Obviously, there are much higher excavation and earth-moving costs that offset the savings of not having to install any heating or cooling systems or any interior structural elements. The house used fairly standard appliance packages and window packages: The windows are Low-E to let in solar heat but not UV rays. All in, at completion, the Uba House cost around $150 per square foot—meeting its cost goal.
Back to Earth
Earth berm homes have a long history. Think Mesa Verde. The generally understood definition of such homes focuses on the use of earth against three or more outside surfaces, including the roof, in an attempt to use the thermal properties of the earth to insulate the structure.
Modern materials and technology now make earth berm/earth-sheltered homes stronger, more efficient and affordable. An Internet search brings up many sites—from YouTube videos of earth berm houses being built, to articles from sources as varied as Mother Earth Magazine and the U.S. Department of Energy (U.S. DoE). There is also an Earth Sheltered Homes Facebook page.
The U.S. DoE cites these advantages for an earth-sheltered dwelling: protection from outside weather extremes, lower exterior maintenance costs, superior soundproofing and lower insurance costs due to protection from the consequences of extreme weather such as hail or wind damage. It specifically mentions the Rocky Mountain region as ideal for such homes. Negatives for these homes can be water penetration and damage and poor indoor air quality, but both can be mitigated by proper engineering and construction methods.
Gene Pearcey, the president of Performance Building Systems, the company that manufactured the steel frame for the Uba House, has been in business for more than 30 years and has been involved in the design of hundreds of earth berm houses. He got into the business because he wanted a house with little or no energy costs and marveled at comfortable temperatures in his then-current house’s underground storm cellar. When he couldn’t find a cost-effective structural frame for an earth berm house in the marketplace, he designed and fabricated his own and began marketing it. The focus is on dome shaped structures, using concrete covering a steel frame.
Like Uba, Pearcey is not an environmentalist and is not out to change the world. What he wants to do is provide an alternative type of residence that has a competitive construction price and extremely low operating and maintenance costs. The objectives are to be sensible, practical and functional. His customers have two primary motivations: energy savings from the thermal properties of soil, and safety from the consequences of bad weather and natural disasters. Most customers live in semirural or rural locations, but Pearcey has worked on numerous homes in Phoenix as well as the Uba House in Denver.
Form Following Function
The Uba House consists of three domes, half domes really, because the front half of each dome is cut off vertically to present a flat façade to the southern exposure. Looking at the house from right to left, the first dome is a two car garage, the middle dome is the main living and eating area and the last dome is the sleeping/bedroom area. The bedrooms are along the outside facing wall, not just for the direct sunlight, but for egress in case of fire. The domes are connected internally by large, long archways, providing nice transition spaces between the various dwelling uses.
When entering the Uba House, one is immediately struck by the openness, the sense of space and volume. The domes are 12 feet high with curving walls finished with stucco-like texture in a soft off-white color. There are no internal structural elements to obstruct the sense of space. There is an organic and earthy feel that is very comforting to the eye. Next, one is then struck by the quiet. The house has a peaceful lack of ambient noise due to the extreme soundproofing qualities of the earth covering the structure.
The home is anchored by a concrete floor stained the color of a mocha latte, which significantly helps retain passive solar heat coming in through the south-facing windows. Three skylights bring ambient light to the back spaces of the various domes, where functions such as a laundry and storage are located. Strategically placed large tubes, running from the interior to the exterior of the home, use thermal properties to promote air exchange and therefore prevent air quality or moisture issues.
The house was constructed somewhat like a layer cake. The foundation and concrete floor were poured first. Then the custom-manufactured steel frame was erected and tied together with standard pieces of rebar. At this point, electrical conduit was run and places for outlets and switches were identified. The frame and rebar was then covered in burlap for better adhesion of the sprayed-on concrete.
Once the concrete was sprayed on the interior and exterior of the structure, attention was paid to insulation and waterproofing. First, a waterproofing material was applied to the exterior concrete, and then the sides and tops of the three domes were covered in the first layer of earth, to a depth of three feet on the top, and to grade along the sides and back. Recycled billboard banners were added on top of this earth layer as an additional waterproofing element. Above the living and dining area is an old Burger King billboard sign; one for a casino covers the bedroom dome.
In keeping with a preference for recycled materials, used perlite panels were placed over the billboard material to enhance insulation before everything was covered by a final, foot-deep layer of earth. The structure is so strong a construction-size backhoe was used on top of the dwelling to spread and tamp down the two earth layers.
Because of its unique residential construction method, structural strength was a critical issue in the City of Denver’s review of the Uba House building plans, according to Julius Zsako, spokesperson for Denver’s Department of Community Planning and Development. He was not aware of any other earth berm houses in the city. A certified engineer with Performance Building Systems provided the requisite stamp of approval; however, as the house met all other code requirements, it was quickly approved. Pearcey claims that none of the houses designed to use his structural systems have failed to be officially permitted.
Living in the Dream
Uba has learned a lot in the process of planning, building and living in Denver’s only earth berm house. He has learned that you can build a house that has a rooftop garden, and the views can be awesome. He has learned that each of his neighbors is fine with a house that looks different. He has learned that he needs a pellet-fueled woodstove when temperatures outside dip into the single digits or lower. Mainly, Uba has learned that his long-held dream of a practical, affordable home, with almost nonexistent operating and maintenance costs, was well worth looking forward to.
Ben Bryan is the president of Owl Properties LLC, a company specializing in commercial real estate, financial services and management of complex projects.
UPDATE FROM NREL
INTERNATIONAL ACTIVITIES The second week of January 2013 found Ambassador John Roos, U.S. Ambassador to Japan, in Denver as part of a four city road show. Although the program’s primary focus was the new Boeing Dreamliner nonstop flights, departing respectively from Denver, Seattle, San Diego and San Jose to Tokyo, the opportunity to engage with the nation’s leaders in the field of renewable energy was too valuable to forgo for a man whose tenure has included a devastating tsunami that completely altered the energy infrastructure of the country in which he serves as plenipotentiary of the United States of America.
Thus, on a Tuesday afternoon in early January, Dr. Dan Arvizu, Director of the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), called to order a Renewable Energy Roundtable, including: Ambassador Roos; Consul Shunsuke Ono of the Consulate General of Japan in Denver; former Colorado Governor Bill Ritter, now the Director of the Center for the New Energy Economy at Colorado State University; Colorado Renewable Energy Collaboratory Director David Hiller; U.S. Department of Commerce Minister‐Counselor for Commercial Affairs Andrew Wylegala; and U.S. Department of Energy Attaché Jeff Miller, both of whom are stationed in Tokyo; along with several representatives from Colorado businesses, universities, and organizations that are working within the renewable energy arena in Japan. The roundtable was an open dialogue of information exchange, with the embassy representatives presenting their perspectives on the current needs of the Japanese energy industry, Consul Ono providing his view on the Japanese people’s level of acceptance of renewable energy, and NREL and the industry representatives suggesting possible solutions to the energy crisis that is a result of the widespread nuclear shutdown in Japan.
Bilateral cooperation with Japan is not new to NREL. In fact, NREL works with a wide range of Japanese institutions on technologies to advance concentrating solar power and is collaborating on activities related to vehicles and hydrogen fuel, climate technology centers, policy best practices, field-testing of manufacturers' modular systems, bio-molecular design software, fuel cell membranes, solar resource modeling, biofuels adoption, platinum catalyst formulation, grid integration and biofuels emissions controls development. The laboratory engages in bilateral partnerships with more than 50 countries that span the globe to advance development and use of renewable energy and energy efficiency technologies. NREL also plays a leading role in supporting several multilateral initiatives designed to advance the use of renewable energy and energy efficiency in ways that both increase economic development and address global challenges such as climate change and energy security. In a recent interview, Dr. John Barnett, NREL’s International Program Manager, summarized some of the key global partnerships currently developing at the laboratory.
NREL is collaborating with the government of India on a variety of initiatives to reduce market barriers that deter investment in renewable energy and energy efficiency technologies. NREL experts are analyzing the impacts of increasing the amount of photovoltaics on the grid in the state of Gujarat, comparing scenarios with the photovoltaics plants distributed in different locations across the state. National solar resource data is being refined to include satellite data on aerosols, particles that reduce the Direct Normal Insolation and reduce the efficiency of concentrating solar plants. NREL is also conducting two studies of wind resource data in the states of Uttarakhand and Gujarat to improve the understanding of how complex terrain impacts wind resources in India. In partnership with India’s Ministry of New and Renewable Energy, NREL is leading the development of an online, public database of all clean energy policies, regulations and incentives offered by the state and central governments. These projects are funded by the U.S. Departments of Energy and State.
Mexico is entering its second year of cooperation with the U.S. government in the program “Enhancing Capacity for Low-Emissions Development Strategies” (EC-LEDS). This USAID-funded effort, involving countries around the world, focuses on enhancing the capacity of interested developing countries to plan for and implement low-carbon-emission economic growth. NREL staff, as part of a U.S. government team, is working with Mexico’s Low Emissions Development Strategy Team (MLED) on clean energy activities including project finance training and a roadmap for a comprehensive energy integration study. NREL also continues to work with USDA and La Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación (SAGARPA) to explore possible areas of cooperation including, as one example, in the field of bioenergy.
NREL is supporting the U.S. Millennium Challenge Corporation’s (MCC) Compact with Indonesia, which will invest over $200 million in rural renewable energy, natural resources management and sustainable land use projects. The focus of NREL’s work is to develop a screening process with criteria covering technological, economic, environmental and social requirements identified in the Compact and established in MCC’s corporate practice. NREL is also developing a set of eight pre-feasibility studies of selected projects to demonstrate how the many criteria can be met for diverse project types. Eligible energy projects may include small-scale hydropower, solar photovoltaics, biomass, and household biogas systems. NREL’s work will help build the independent capacity of the Indonesian organization set up to identify, screen and fund proposed projects.
In Eastern Africa, NREL is providing technical assistance for a USAID project with the Eastern Africa Power Pool (EAPP) to support regional energy (RE) planning efforts. The project includes activities focusing on a database to support RE project planning; increasing the capacity of EAPP stakeholders to prioritize RE projects based on technical, economic, social and market considerations; and supporting EAPP stakeholders increase their capacity to assess the feasibility of proposed projects with sufficient rigor to attract further financing from donors or the private sector to complete full project feasibility studies.
Thus, the U.S.– Japan Renewable Energy Roundtable that brought together representatives of the Japanese government, representatives from the U.S. Departments of State, Commerce, and Energy, as well as energy industry leaders from educational institutions and the private sector was an accurate snapshot of the first step in the collaborative efforts that NREL staff put forth every day to formulate solutions to global energy challenges.
To learn more about becoming engaged in international activities at NREL, access, http://www.nrel.gov/international or contact Dr. John Barnett, NREL International Program Manager at [email protected].
Planning Ahead: Doing Business with Russia and Succeeding
U.S. companies can win in Russia! While now capturing only a tiny share of what is demonstrating to be a solidly performing market, this article details how the U.S. can better position itself and gain competitive advantage by planning ahead and seeking accurate knowledge about this challenging and often misinterpreted, misunderstood business environment in Russia. Russia is now poised for unprecedented growth and integration into the world economy and Americans are losing out by overlooking its potential. If we forge ahead, undaunted by misinformation and stereotypes, and guided by a careful study of economic data and forecasts with an understanding of key trends and issues, we are in a solid position to contain risks and enhance our probability of gain. On top of that, if we calculate into our strategic planning process knowledge of how the Russians themselves are planning for their own economic, political and social future, then we utilize an even greater and superior methodology to guide our business investments and operations in Russia. So let’s look at some specifics!
Evaluating 2012 and What’s Ahead
The year 2012 was a respectable year for Russia by any standard. The economy grew at an average rate of 3.5 percent; unemployment posted at a decent rate of 5.4 percent, wage growth or real income showed growth at 8.8 percent and inflation at 6.6 percent, impressive considering that from 2000-2010, inflation was averaging nearly 13 percent. Russia’s middle class continued to grow, thrive, and engage in consumer purchasing in the many new malls that have sprung up in Moscow and around the country. The 2012 budget did not run a deficit, finances remained stable, and currency reserves grew. Tax policy and administration has remained predictable and competitive over the last decade, with a flat tax rate of 13 percent.
Russia ended the year with a budget surplus and almost no public debt, a significant current account surplus and large international currency reserves. However growth began to slow by the end of the year, as problems in agriculture continued, with the drought situation further highlighting its high dependence on food imports which historically have been problematic.
It is of interest that in the Russian Investment Managers Report to the Directors of JPMorgan Russian Securities in late October 2012, the managers concluded that the risk/reward profile of Russian securities is advantageous for investors. They noted many developments already highlighted in this article, and in addition that the ruble appreciated by 4.5 percent vs. the U.S. dollar in nominal terms, a reflection of the strength of the current account due to ongoing high energy prices. Importantly, the report noted that 2012 was the first year for a dividend yield of 3+ percent for the Russian market, putting it on even footing with other global emerging markets for the first time in history. Russia, they believe, represents an important source of returns for investors.
Russia Stacks Up Quite Well
There is no doubt that relative to Europe and the U.S., Russia stacks up quite well. While Russia is projected to grow at a slow, but steady rate of 3.6 in 2013, other economies are shrinking. The Spanish economy is projected to contract by 1.5 percent and Italy by 1 percent. The German bright spot is only expected to grow by 0.6 percent. The U.S. economy is projected to grow at 2 percent. European economies at best are stagnant if not shrinking over the next several years. At an unemployment rate of 6 percent, Russia looks a lot better than that of Spain’s, over 24 percent and with France and the UK at over 8 percent. Russia’s 8 percent of debt to GDP compares well to that of Italy at 123 percent of GDP and UK at 88 percent. The U.S. debt to GDP ratio is 106 percent, while U.S. national debt totals $16.4 trillion. While crushing debt is a handicap for Western economies, lack of debt offers Russia a distinct advantage in the future.
WTO Accession a Major Gain for Russia in 2012
Many U.S. business deals transpired in 2012, including the ExxonMobil-Rosneft deal for exploration of the Arctic shelf; a continuation of Boeing’s aircraft sales in Russia, and ExIm Bank’s agreement with Russia’s largest bank, Sberbank, to finance up to $1 billion in exports to Russia.
But the most important development with implications for American companies was that finally, after a prolonged effort since its application was first submitted in 1993, Russia gained accession to the World Trade Organization (WTO). On August 22, 2012, Russia became the 156th member. This means that Russia’s trading policies will comply with WTO rules, regulations, norms and standards followed by all member nations, and is expected to significantly enhance Russia’s integration into the global trading regime, helping not only Russia but expanding trade with other member countries. Some analysts estimate that Russia’s involvement in the WTO can stimulate trade and investment to the tune of tens of billions of dollars a year.
Also of significance was the repeal of the Jackson-Vanik Amendment, the U.S. trade act of 1974, which restricted most favored nation status and normal trade relations through linkage with Jewish emigration from the Soviet Union. This signified the removal of a significant historical barrier, although the U.S. continued to trade with Russia through an exception to Jackson-Vanik granted annually by every president since 1992. One important aspect of the repeal is that U.S. companies will see reduced tariffs on goods exported to Russia. For examples, duties on power and hand tools would decrease from 9.3 to 6.8 percent. Tariffs on medical equipment would be capped at 7 percent, down from 15 percent. Duties on aircraft engines would go down to 5 percent from 10 percent. American sales to Russia can well soar with such improved favorable terms.
Unfortunately, the victory for American business was clouded by passage on the same day of the Magnitsky bill, which punishes Russians for allegedly having played a part in the death of Sergei Magnitsky, by denying visas to those responsible to the U.S., freezing their assets and imposing other stipulations seen by Russians as interference in their domestic affairs. In retaliation, in late December 2012 President Putin signed the Dima Yakovlev Law, which bans the adoption of Russian children by U.S. citizens starting January 1, 2013 and other sanctions against the U.S. Nonetheless, entry into the WTO and repeal of Jackson-Vanik can be seen as the removal of significant barriers for American companies in the Russian marketplace.
Looking Ahead
The World Bank has projected a 3.6 percent growth rate for Russia’s GDP in 2013. I believe that we can reasonably expect the general trajectory of positive domestic economic growth and innovation to continue, along with increasing global economic integration. This is not to underestimate problems and criticisms that are well known, both by Russia and the world. These include the need for economic diversification and growth of small business, improving public administration and allowing greater freedom of expression and dissent and addressing corruption, lack of transparency and weak rule of law. Many allege that Putin is suffocating the country by letting state corporations ravage the economy and deepening the gap between haves and have nots. Others anticipate slowdown and stagnation in 2013.
All in all, it comes to whether you see the Russian glass half empty or half full. If you see the glass half empty, you will focus on the weaknesses, problems, shortcomings and doomsday predictions. If you see the glass half full, you will focus on change, promise, optimism and challenge.
I look at how far the country has come from the collapse of the Soviet Union, with all of the challenges of literally starting all over. Seen in this light, where Russia is today is nothing short of amazing, all problems notwithstanding. I look at Russia also in terms of how it stacks up against other countries and the domestic challenges we all face in the post-2008 economic downturn. I believe there is undeniable opportunity for the U.S. in Russia and with Russia’s entry into the WTO and repeal of Jackson-Vanik, American companies are better positioned than ever to make significant gains in Russia.
More on Russia into the Future
There are many ways that Russia is positioning itself for a better future. A recent Wall Street Journal article detailed how Russia is encouraging Moscow companies to list through the Moscow Exchange, demonstrating their renewed pro-business attitude and Moscow’s goal to become a major financial center. Russia is actively planning for accession into the Organisation for Economic Co-operation and Development (OECD), now that they have achieved membership in the WTO. Early this year, Russia’s First Deputy Foreign Minister Andrei Denisov met with OECD Secretary General Angel Gurria, during a working visit to Moscow. The talks affirmed a mutual interest in the accession and the importance of Russia’s participation in the organization. The parties discussed what practical measures were expected from Russia for it to gain entry. Prime Minister Medvedev has also indicated that Russia has formulated a roadmap to achieve this goal.
The OECD was established in 1961 to coordinate the economic processes of member states. There are 34 members including the U.S., Canada, Japan, Australia and the countries of the European Union, who account for over half of global GDP. Communist countries traditionally did not belong so if Russia were to join, it’s another benchmark development for Russia’s integration into the global economy.
Russia’s Own Silicon Valley: Skolkovo
Understanding the need for business innovation, Russia established its own Silicon Valley, known as the Skolkovo Innovation Center. Primarily funded by the government, Skolkovo’s mission is to promote research and development in IT, energy, nuclear technologies, biomedicine and space technology. Another example is the formation of Titanium Valley, a special economic zone in the Urals. This endeavor hopes to increase the productivity of titanium in such industries as aircraft, auto, shipbuilding and medicine. Participating companies include Nokia, Rolls-Royce, Goodrich and Boeing.
Russian Foreign Direct Investment in U.S.
An often overlooked trend is Russia’s foreign direct investment into the U.S. economy. Severstal, a Russian steel company, has invested approximately $3 billion in two U.S. operations, in Dearborn, Michigan and Columbus, Mississippi. Similarly, another Russian company, Evraz, took over the steel industry in Pueblo, Colorado and now owns Rocky Mountain Mills. Evraz has invested in new equipment in order to upgrade productivity and output. A third, Rusnano, is investing in high tech American companies by opening a branch in Silicon Valley in March 2011. Rusnano is known to have invested in top U.S. biotech companies, which will now operate out of the Skolkovo Innovation Center in Moscow. Rusnano has also invested in a 30 percent share of a Colorado-based producer of biochips for drug tests. There are numerous other examples of Russian investments in the U.S. economy, from steel to biotech and more.
Americans Achieving in Russia
Moving in the other direction, there are likewise many examples of successful American investments in the Russia. In recent years they include Chevron’s investment in the Caspian Pipeline Consortium, which initially stood at $800 million. It is expected to invest another $810 million to increase the output of oil to 1.4 million barrels of oil daily. Ford Motor built a production plant in Elabuga in 2011 and in 2012 had increased vehicle sales in Russia by 11 percent. Ford opened five new dealerships in Russia in the last quarter of 2012, totaling 120 dealerships in 79 Russian cities. Anticipating the 2014 Olympics in Sochi and other growth markets in Russia, Coca-Cola opened a new plant in 2011 in Rostov-on-Don, costing $120 million, as part of a $3 billion investment plan in Russia for 2012-2016. Pepsico in 2011 acquired a two-thirds stake in Wimm-Bill-Dan, Russia’s second largest food and beverage company for $3.8 billion. The list goes on and on.
U.S.-Russian Trade
In 2012 U.S. exports to Russia totaled $9.5 billion, and imports totaled $27 billion, leaving the U.S. with a trade deficit with Russia of $17.5 billion. Major U.S. exports to Russia included machines, including engines and pumps, vehicles, aircraft and spacecraft, mean products, medical and technical equipment and electronic equipment. Major U.S. imports from Russia are primarily in natural resources. These include oil, iron and steel, gems and precious metals, inorganic chemicals, fertilizers, aluminum and nickel. This structure of trade has been repeated for years, and follows a traditional pattern of developed nations with Russia, the exchange of raw materials for sophisticated manufactured goods and high tech equipment. But as William Cooper from the Congressional Research Service points out, trade turnover is minor relative to the size and potential of both countries. Russia accounted for 1.6 percent of U.S. imports and 0.6 percent of U.S. exports in 2011, and the United States accounted for 3.3 percent of Russian exports and 5.3 percent of Russian imports. Russia was the 31st largest export market and the 14th largest source of imports for the United States in 2011.
Sochi Winter Olympics and World Cup in Moscow
Russia is actively preparing for two prestigious international events in its future, the 2014 Olympics in Sochi, February 7-23 and the FIFA World Cup in 2018. The Winter Olympics will be the first held in the Russian Federation, and the first since the USSR 1980 Olympics in Moscow, which was boycotted by the U.S. Undertaking this task will be Dmitry Chernyshenko, the president of the Sochi 2014 Olympic Organizing committee. It is being financed with a combination of private sponsorships and government funding. The games are expected to cost anywhere from $18-30 billion. There is a huge infrastructure renovation underway, including projects such as hotels, new sports venues, new railroads and light rail, a new terminal in the Sochi airport, enhanced power stations and telecommunications, and modernizing the city of Sochi.
The 21st FIFA World Cup in 2018 will be held in Moscow. This prestigious soccer tournament will involve 32 national teams, including that of the host nation. This will be the first time Russia hosts the tournament. Russia is also to become the largest nation geographically to host the World Cup. The bidding process was intense, with Spain/Portugal and Netherlands/Belgium also in contentious competition. Russia plans to build 10 new stadiums. Soccer matches will take place in cities across Russia. To support the event, Russia will waive the visa requirement for tourists coming to Russia for the games!
Group of Twenty and Group of Eight
Finally, this year Russia assumes the rotating chair position of the Group of Twenty. Twenty finance ministers and Central Bank governors from the top twenty major economies in the world are expected to participate. The annual summit of the group will be held in St. Petersburg in September 2013. Russia continues an active role in the Group of Eight, which brings together eight of the world’s top economies and governments (U.S., France, Germany, Canada, Italy, Japan, UK and Russia) to discuss global issues on an annual basis. Russia became an official member in 1997 when it first participated in the summit meeting in Denver, Colorado.
Russia’s Development Strategy to 2020 – The Concept
Having looked at some facts and details about Russia’s economic performance and what’s ahead in its future, it’s useful to step back and embrace a broader conceptual perspective. Companies can benefit by having a broader perspective on the day-to-day happenings of the economy by evaluating the body of Russian information about how Russia is positioning itself for economic performance. You can find many clues and insights into the direction of the Russian economy, and a whole range of other reforms in civil society and politics.
Planning ahead for Russia comes naturally. Following a long tradition of planned, command economics during the years of the Soviet Union, where Five-Year Plans for socialist development were the norm for over seventy years, Russia under President Vladimir Putin and Prime Minister Dmitry Medvedev has a planning process with goals in place.
Companies can learn by adopting the Russian way of thinking about how it intends to move ahead. What are the main components of Russia’s economic development aspirations? Where would Russia like to be ten and twenty years from now? What are the chances of achieving these goals? Is Russia’s performance today consistent with what it says it’s going to do in the future? Definitely, there is something to be gleaned from this approach, one that is often overlooked in traditional American corporate strategic planning and overseas risk assessment.
Russia’s overarching growth strategy was first comprehensively presented by President Vladimir Putin in February 2008 in a speech to the State Council entitled “Russia’s Development Strategy to 2020,” popularly known as Strategy 2020. The cornerstone philosophy of the plan is for strong state support to protect the national interest. The main strategic goal is to transform Russia into one of the major leaders of the global economy and successful integration into major global institutions such as the WTO and OECD. The means to do this include an emphasis on modernization through science and technology, stable growth of the economy, contingent on expanding industrial production, GNP, personal income and the middle class. President Putin once said, “I am confident that the new growth model should center on economic freedom, private property and competition. We need honest competition to revive our economy.”
Very specific goals and indeed ambitious goals have been set—they include improvement in areas of rare earth metals, biotech, genetic engineering, information technology and urban construction. Russia also committed to creating 25 million new high productivity jobs by 2020, and enhanced investment in aerospace and the Arctic. Overall, the plan targets Russia to become one of the world’s 5 top economies, with an annual growth rate set between 5-6 percent. Analysts can remain current on latest developments by regularly reviewing business writings, speeches by public officials, reports by investment houses and other Russian source material.
What Russia’s ambitious development strategy in its conceptual form tells us is this—Russia has no intention to turn back the clock either to communism or weak and untested models of economic development. Nor is complacency, mediocrity or business-as-usual acceptable. The Russians are determined to grow competitively and command respect and admiration for their national achievements and secure a role as a major world leader. They yearn for, and in fact demand recognition. They aim to place science, technology, research and advanced thinking at their doorstep in a quest to achieve their goals.
Part of their strategy is to work with international institutions to normalize relations as an active participant and leader in groups such as the WTO, OECD, G20 and more. It includes a domestic reform process to strengthen the rule of law, legal and law enforcement institutions and their own variant of democracy.
Concluding Remarks
It’s clear to me that what the Russians want and how they intend to achieve it is out there in print in the public domain for all to read and know about. We can take it upon ourselves to see if there is a consistency between what they are saying they hope to do and what they are doing. It can be tremendously useful for business researchers to look at Russia in this light to help with their own planning process. Further, I think if we ask the question has Russia’s growth trajectory and current outcomes remained consistent with the projections and goals set in 2008 and since, the answer is yes, and there is compelling reason it will remain consistent into the future.
Russia will always present an especially unique environment for foreign investors: its potential is so great; while its risks, uncertainties and problems can be seen as overwhelming. Therefore superior planning and fact gathering, in a solid analytical framework are required to stay on track, and hence the ability for accurate knowledge and forecasting becomes all the more pressing.
This article concludes that Russia is on a consistent and positive growth path for the future, despite obstacles, barriers and shortcomings. American companies, equipped with the right strategy and risk management plan and knowledge can succeed and thrive in Russia.
Deborah A. Palmieri, Ph.D. is a business specialist on Russia. She is the Honorary Consul General of Russia in Colorado and President and Founder of Deb Palmieri Russia LLC, a consultancy. Contact Dr. Palmieri at 1552 Pennsylvania Street, Denver, CO 80203 or 720-980-4829 or [email protected]. Special thanks to Keith Detweiler, student intern from University of Colorado Boulder for research support for this paper.
Peace Corp
A Lifetime of Service Like many Peace Corps volunteers, when I boarded the airplane heading to the Philippines in March 2006, I was young, enthusiastic and eager to make a sustainable impact. I was fortunate enough to have an incredible host family, the Cosalans, who made my time in the Benguet Province a memorable and successful journey. The Cosalans are humble stewards of ENCA Farm, a beautiful piece of land that has come to define a large component of who I am as a returned Peace Corps volunteer.
Located in the northern region of the Philippines, ENCA Farm has been in the Acop and Cosalan family since the 1800s. It is named after Enrique and Carmen Cosalan, the third generation to operate the farm. They have spent their lives tilling the fields, growing fruit and vegetables, raising animals, and educating their 11 children about sustainable organic farming practices and the history of their Ibaloi culture.
In the 1970s, not only did the Santo Nino Mines open upstream from the farm and contaminate its irrigation source, but the Philippine government also tried to take away the Cosalans ancestral land. After 30 years of legal battles, the Philippine Supreme Court restored the farm to Cosalan ownership in 2001, and the case set great precedent for indigenous peoples’ land rights throughout the Philippines. In 2006, the farm opened to the public as an ecotourism space, as a community and environmental education venue, and as an exemplary model of a sustainable organic farm. More than 1,500 people have visited and volunteered at ENCA Farm during this incredible rejuvenation period.
I dedicated my Peace Corps Service to helping ENCA Farm develop, and this service continues today, nearly four years after my return. I founded a U.S.-based nonprofit organization, Friends of ENCA Farm, which serves as the primary educational and advocacy entity supporting the work of ENCA Farm in the Philippines. The programs of Friends of ENCA Farm help local Filipino youth attend environmental education camps and support infrastructure improvements such as new irrigation systems at ENCA Farm.
Soon, Friends of ENCA Farm will join a shared office space and center for collaboration—the Greenhouse Project in Denver—that focuses on international development and ending global poverty. This innovative center will connect our work in the Philippines with wonderful partners that do similar development work around the globe. The Greenhouse Project will also offer virtual educational sessions allowing our Filipino partners, farmers and community members throughout the Benguet Province to access trainings that will benefit their organic farming and environmental sustainability initiatives.
I am blessed to be a small part of the story of ENCA Farm and to have found a second home with the warm and open hearts of the Cosalan Family. My 27 months of Peace Corps Service, a journey that began six years ago, has led me to a lifetime of service working to improve the lives of Filipinos.
To learn more about our programs and ways to support this critically important work in the Philippines, visit our website at www.encaorganicfarm.com. Sherry Manning is the founder and executive director of Friends of ENCA Farm, a small, Denver-based nonprofit that supports environmental sustainability and organic farming in the Philippines. She holds a master’s degree in resource law studies from the University of Denver Sturm College of Law and serves as the president of the Returned Peace Corps Volunteers of Colorado (www.rpcvcolorado.org). To learn more about the Greenhouse Project and its 27 partners, visit www.d90network.org.
Dick Fleming
On January 15th I had the pleasure of attending The Denver Forum luncheon with speaker Dick Fleming. The Denver Forum is an organization dedicated to the dialogue of democracy, and 25 years after its inception, it continues to promote programming that is in the highest public interest. Fleming’s presentation shared reflections of when he was CEO of both the Denver Chamber of Commerce and the Downtown Denver Partnership. He has over 30 years of CEO and practitioner experience in Atlanta, Denver and St. Louis. Fleming’s influence on the Denver region started in the early 80’s. From 1980 to 1986 he was President and CEO of the Downtown Denver Partnership, Inc. The Downtown Denver Partnership, Inc. is a nonprofit organization that creatively plans, manages and develops Downtown Denver as the unique, diverse, vibrant and economically healthy urban core of the Rocky Mountain region.[1]
Fleming has many ties to the Denver area formerly leading the Denver Chamber of Commerce for seven years from 1986-1993. His efforts in Denver also included the new Colorado Convention Center which was the centerpiece of the Downtown Area Plan, passage of a quarter-billion dollar city bond initiative, metro-wide referendums establishing six-county funding for the Scientific and Cultural Facility District; a six-county Stadium District; and the recruitment of Major League Baseball to Denver. He also played a lead private sector role in the partnership between former Mayor Federico Peña and former Governor Roy Romer, driving major economic development initiatives, including two successful airport elections, negotiating with airlines and obtaining federal funding to develop $5 billion Denver International Airport.[2]
In 1994 Fleming was appointed as the President and CEO of a 174-year-old organization—the St. Louis Regional Chamber and Growth Association—where he rejuvenated it. In 2012 Fleming left the position stating “When you’ve been in a role for almost 17 years, the timing becomes a function when it feels right.”[3] A true collaborator, Fleming’s key achievement was the design and implementation of public/private partnerships at the local, regional and national levels including sub-cabinet grant making roles at the federal level, including the creation and management of multi-billion dollar grant programs such as the $3 billion Community Development Block Grant, the $1.2 billion Urban Development Block Grant, the $15 million Neighborhood Self Help Development, and the $15 million Livable Cities program.[4]
Fleming earned his undergraduate degree from Loyola College. He has two masters degrees, one from Wharton School of Finance and Commerce and the second in city planning from the University of Pennsylvania Graduate School of Fine Arts.[5] Fleming remains in the St. Louis region doing philanthropic work.
I am inspired by the leadership of Dick Fleming. As a result of his influential guidance he has led Denver into great economic strides, including most of the city’s key tourism areas. When I fly out of Denver International Airport, gain business from a tradeshow at the Convention Center or enjoy a game of Colorado Rockies baseball I have Mr. Dick Fleming to thank.
Looking to the Future: Knowing Your Next Move
The best way to predict the future is to create it. —Peter Drucker We had our best business year in 2012. Why? Our business continues to thrive and prosper because it’s our objective to help our clients thrive and prosper in their organizations. Looking into the future and your success therein is building HP2—high-performance, high-profit organizations.
The outline for this level of success is not as complicated as many wish to make it. However, it does require a mindset that cannot be avoided. The mindset is executives having the courage to say yes to the possibilities, understanding the messiness of implementing real and positive change and lastly a solid grasp that any change worth making takes time. This brand of courage requires sincere, unbridled transformational leadership—nothing less will achieve radically successful results.
We’re successful because we seek out business owners and business executives who are ready to stop talking about a brighter future and are ready to take the actions required to make it so. These are the people who are taking ownership of their organizations’ future.
It seems elementary that organizations are working to achieve their strategic vision. However, we continue to uncover a significant disconnect with the perception of achieving that strategic vision with the reality of dealing with “now.” We continue to see that the biggest victim in the past economic downturn has been “organizational strategy.” Many organizations are locked into “now,” thinking there is no forest behind those trees.
Perhaps some of you have heard of the FUD factor—fear, uncertainty and doubt—which keeps most organizations locked in indecision and tactical short-term thinking. Those creating radically successful businesses look beyond the day-to-day and are returning to a strategic alignment.
From the first day we at Enlighten 360 begin working with clients we weave the Drucker quote into a possibility mindset for executives and those who comprise that organization. In essence, we take this quote and make it actionable. We contend that if you don’t take control of your future, someone will do it for you.
How can you create your own highly prosperous future? The future starts with the end in mind. If you’re an executive or business owner thinking about taking your operation to the next rung on the financial ladder in 2013 … here are the steps.
The Steps to Creating HP2 Organizations
Step one: Evaluate
Access, evaluate top-down, bottom up—no leader begins organizational strategy without a crystal clear understanding of the capacity and capability of the organization—right now.
There is an opportunity when you contract with a consultancy group that have the diagnostic tools to give clarity to the organization’s current status. A true assessment minus wishes, hopes and dreams creates a capability/capacity baseline, which allows for an achievable blueprint. A word of caution—we rarely find an organization that possesses the tools to effectively conduct a true organizational 360 assessment.
Another opportunity happens when you seek out the objectivity of outsiders in favor of internal management input. Going inside to solve strategic issues by enlisting those who may be the root cause of the issues or those who don’t have the helicopter view of the organization is insanity. We know that insanity is defined as doing the same thing over and over and expecting a different result. If you want something you’ve never had, you must do something you’ve never done. Being too close to the operational machinations is simply more fruitless discussions and internal cycling.
The third opportunity considers that after the problem/opportunity/strategic direction is identified comes the phrase “now what.” It’s the time when a company asks how to effectively clear the speed bumps and implement a success strategy. A common disconnect is trying to fix the issues with the same old internal programs or processes. The only constant is change, and new ways of creating HP2 organizations changes continually.
Step two: Align
Once organizations completely understand what’s missing and what’s preventing success in the access/evaluation phase, it’s time to align people, purpose, structure and systems.
There are seven game-changing components to create HP2, including:
1. A healthy organizational culture. To be sure, a healthy culture will provide the “keys to the kingdom” of high prosperity. Culture is a healthy organizational body—a learning organization and a place where the best and the brightest seek out employment. The culture projected onto your people will create a ripple effect with employees, customers and the general community. Whether you’ve created a healthy culture or a not-so-healthy culture, the word will spread. In today’s social media environment, the word is viral. How’s your culture? 2. Leadership—real leadership, real results. It’s a rough job to explain to people who think they’re leaders that they are not. It’s not because they’re not good people; they just haven’t developed the leadership skills required in today’s highly competitive environment. Businesses are competing for customers, workers, vendors and most of all relevance within the market. And, being an executive or the owner of a company does not automatically inject “leadership” into your style. It’s a skill that must be developed, over and over again. Once a “leader” assumes he or she has “it,” we have to start over completely. Leadership is the destination where we never arrive—it’s too dynamic. 3. Your people—engaged and re-engaged for higher contribution. Another Peter Drucker quote that we use daily is, “They’re not your employees, they’re your people.” The minute you think of your people as employees, you’ll get one—someone who shows up to just collect a check. If you want high-contribution, engaged workers, start thinking of those “people” who are making a substantial difference in growing your revenues, who are becoming trusted advisers to your customers, who are helping innovate better ways to conduct business, and who find new customers or more marketable products for your company. 4. Customers/clients or members, properly acquired, mean high-retention, high-profit ratios. Customer engagement is the path to HP2. Becoming the trusted adviser to your clients or customers is not selling—it’s providing value. I have vendors constantly trying to sell me “sales training” modules that they think would be appropriate for my clients. The truth is, there is maybe one in one thousand worth looking at, and I’m still looking for that “one” that I would share with my clients. These sales companies were created during an era of technic, the numbers game, manipulation and psycho-babble and haven’t fully realized the importance of providing value instead of just selling widgets or services. 5. Process efficiencies and continual process improvement. Process is your friend. Without it, your organization can easily be brought to its knees. At Enlighten, we spend a great deal of time with our clients to understand what processes they’re using that should stay or could go away. Organizations will often get into the process rut and will try to justify using processes that serve no useful purpose or may even slow/stop production. To become an HP2—this must end. 6. Organizational structure—becoming the employer of choice. Employer of choice is just one of many programs we provide to make the most of existing resources. It’s a simple process to mitigate turnover, which is a major expense that pounds the bottom line, as well as to reverse negative branding so that people seek out the company, stay longer and contribute more. One subset of the employer-of-choice model is to become a learning organization. We accomplished this by building a corporate university to tap into current successes and learning while developing programs that cover the basic “how to’s,” such as communicating effectively, building trust, presenting ideas effectively and building a high-performing mentality. Last, a knowledge-transfer program where outgoing people share valuable information within the organization for the benefit of all is imperative to becoming an HP2. 7. Measuring what counts. Companies have an array of metrics used to guide their specific business or business units. Defining and deciding which metrics mean the most to the strategic direction of the organization are very important, should minimize monitoring everything and help focus the organization on monitoring fewer key metrics that are actionable. The theory is that information is like food: consuming more of it doesn’t necessarily make you healthier. Eliminate unnecessary metrics and make the ones that count executable and framed in a timed component. As you monitor your progress, however, be prepared to change course.
Step three: Accelerate Financial Growth
When you accelerate financial growth, the results begin. Having the courage to implement change and partnering with a consultancy group that can clearly assess organizational strengths and weaknesses can help you effectively align the seven core functions of the organization. This creates sustainable organizational performance and profits.
Why is Now the Best Time to Create the HP2 Organization?
At a basic level, strategic planning is really a matter of survival, when done with a strategic alignment perspective in mind. Half-hearted efforts result in half-hearted progress; therefore, strong business fundamentals will help organizations of all shapes and sizes thrive. In today’s ever-changing marketplace, you either create change, or the lights slowly fade to darkness.
With the profound changes occurring in today’s marketplace, some organizations choose to allow FUD to manipulate organizational strategy down to consistent tactical panic … or there are those organizations predicting their future by creating it to suit their purpose and strategy.
The three simple steps—assess, align and accelerate—create an organizational profit engine by engaging the workforce, re-inventing customer relationships and developing leadership skills so that the company will have a financially sustainable future.
The future can be very bright for those willing to brave the complexities of strategic alignment and the daily execution on a plan. Knowing your next move is creating that future. Remember, you will own your future, or it will own you—it’s the same for all of us. It is time to be bold and to create the difference!
For over three decades, Steve Sorensen has helped companies achieve a competitive advantage by improving their sales strategy. This has consistently provided growth velocity and increased profitability for both companies where he was employed and now for his clients. Steve has successfully hired, trained, mentored, coached and led numerous national and regional sales teams. As president of Enlighten-360, LLC, Steve is directing his wealth of experience to help companies achieve increased revenue and velocity of growth through improved sales strategies. Steve has seen firsthand how creating and keeping raving fans for your business and products is the path to long-term profitability. To learn more, visit http://enlighten360.com or at [email protected].
Jennifer L. Cook
Consulate General of Canada in DenverCommunications, Cultural Affairs & Academic Relations Officer 1625 Broadway Suite 2600 Denver, CO 80202
303.626.0640
www.canadainternational.gc.ca/denver/index.aspx?view=d
Jennifer Cook has been the Communications, Academic and Cultural Affairs officer at the Consulate General in Denver since January 2005. Her position is part of the Political, Economic and Public Affairs program, which covers Canada’s relations with the four Rocky Mountain states of Colorado, Montana, Utah and Wyoming, and more recently, Kansas. Shortly after the office opened in the fall of 2004, and as the first hire for the position, Jennifer helped establish the consulate’s Public Affairs program including creating and implementing various outreach tools and activities. In her role, she is responsible for building strategic alliances with organizations that can help assist in the delivery of Government of Canada key messaging and support the Canadian position on issues of mutual interest; advising on media relations strategies and outreach including, securing earned media coverage on priority issues; supporting mission-wide communications efforts including writing and editing news releases, briefing materials, speeches and other outreach materials as needed; and raising awareness for the Canada—U.S. relationship and enhancing Canada’s visibility in the territory through strategic cultural partnerships and events, where the consulate can convey key messaging. She was recently assigned the Academic Relations portfolio where she builds bilateral relationships to highlight Government of Canada priority issues; promote Canadian universities and study opportunities.
Keenly interested in environmental issues, Cook is particularly interested in growing opportunities for advocacy initiatives focused on environmental issues and the arctic, including promoting Canada’s efforts to deal with conservation and climate-change, as well as the consulate’s initiatives to build bilateral academic partnerships and technology transfer in the area of clean technology development and environmental research. She recently began working on advocacy issues related to the Canada–U.S. security and defense relationship as well.
Cook has more than 15 years of experience as a communications professional with expertise in translating organizational missions into targeted messages designed to advance strategic public relations goals. She has had success in tailoring and disseminating key information to a variety of constituencies through multiple channels of communication as well as a solid background advocating the missions of nonprofit organizations focused on international and cultural issues.
She has lived, studied and worked abroad in France and Australia, and has traveled extensively throughout Europe, Turkey, Costa Rica, Fiji, the Caribbean and Mexico. Jennifer holds two BA degrees in English (cum laude) and French literature and an MA in journalism and mass communication from the University of Colorado in Boulder. She also studied in France at the University of Bordeaux and in Annecy. She has completed a Web Writing Certification program at Georgetown University, Washington, D.C., and recently completed an Ecology of Leadership program.
Cook’s feature articles have appeared in national publications. In addition, she has volunteered for a variety of nonprofit organizations such as Engineers Without Borders, Boulder County Safehouse, Sundance Film Festival, and Boulder Philharmonic.
Her hobbies and personal interests include the arts, yoga and outdoor activities such as skiing, hiking and scuba diving, and international travel. She lives in Denver, Colorado.