It’s Good to be in DFW!

Dr. Michael Cox, Director, William J O’Neil Center for Global Markets and Freedom presented to the Dallas Citizens Council on Dec. 6, 2010. Many of you may remember that Dr. Cox is the past (and only ever) Chief Economist of the US Federal Reserve.

The topic was “The Ascension of DFW”.

Just about anyone employed in the Information Technology, Engineering or Scientific fields will agree that Texas was the place to be during the recent economic turmoil, with DFW clearly the metropolitan area to live in Texas.

So what has contributed to DFW’s success and what can we do to sustain it? The entire report can be found at “The Ascension of DFW”, published by SMU Cox School of Business. Here are the highlights of some of the most important points,

First, Texas is a state that maintains one of the world’s freest economies as measured by The Fraser Institute. Texas ranks second only to Delaware, but with far greater economic output. The two most important measurements of free economies are low tax rates and the avoidance of unionized employment.

When companies relocate (whether headquarters or otherwise) or expand existing operations, management reviews both short and long-term benefits in terms of location. Texas is one of only 7 states with no state income tax, and only one of 5 states with no corporate income tax. Texas does levy a general business tax, but it is relatively mild at less than one percent. Over the past 15 years DFW employment grew from 2.3 million to 2.9 million, second highest growth in the nation. Also, DFW has more large corporate headquarters (58) than any other U.S. metropolitan area, including 24 in the Fortune 500.

The Texas labor market is also relatively free of impediments that discourage job creation according to the report. Partly due to the right-to-work laws, which prohibit forcing workers to join unions, Texas has only 6.2 percent of union membership in private sector jobs. Compare that to 27.5 percent in New York, and 17.8 percent in California.

The report further states that the high degree of economic freedom gives homegrown businesses room to grow. It acts like a magnet for relocation for both companies and job seekers coming from other states. Like proof? Between 2004 – 2008 California surrendered more workers to Texas (tens of thousands) than any other state. Texas on the other hand had a net migration FROM Texas to all states of less than 400 in the same time frame. And finally, Chief Executive magazine named Texas the best state for job growth and business in 2009, and California the worst.

Second, DFW has embraced globalization, DFW based companies are benefiting and profiting significantly from an increased global client base. While competitive globalization can bring traumatic workforce changes in early stages, successfully navigating those challenges can bring significant returns. Based on the world’s population, 21 of 22 prospective customers reside outside the United States. Here are just a few successful examples of DFW companies leveraging the global client base:

Company	Year	% International Rev.	Year	% International Rev.
T.I.	1998	67.7%	2008	87.6%
ENSCO	1998	45.3%	2008	79.2%
Blockbuster	1998	20.6%	2008	32.1%
Flowserve	1998	41.9%	2008	65.4%
GameStop	2004	0%	2008	26.6%

Mary Kay is privately held and does not release public revenue. They do however sell cosmetics in 35 countries, a clear example of embracing global customer opportunities.

In 2009 SMU’s Caruth Institute for Entrepreneurship identified DFW’s fastest growing emerging companies. More than half the Dallas 100 Class already has ties to foreign markets.

Third, DFW brings together businesses and workers well suited for success in the up and-coming services economy, both at home and overseas. A well-educated and trained work force is the foundation to keep a good thing going. At the end of 2009, service producing industries accounted for 83.2 percent of DFW’s private sector employment, up from 76.8 percent at the beginning of 1999.

According to Dr. Cox, the 21st century’s engine of growth will be globalization. America’s edge lies in specialized services; job creation for a well educated workforce. DFW must continue to attract the quality and sufficient quantity of educated workers to continue to propel our local economy. Dr. David Daniel, President of The University of Texas at Dallas (UTD) echo’s this position. Pursuit of Tier One University Research status by Texas based universities is key to supporting this effort.

As an IT staffing company, the InSource Group has our own anecdotal evidence. In business since late 1992, our client base has changed significantly. Several top revenue producing clients in 2001 no longer do so. Some are still in business, but a number who did not successfully manage the shift in global competitiveness are no longer in business. We have also witnessed (and benefited) from many of our client’s rapid growth due to increased global sales. Their success also brings the challenge of securing talent to accommodate a shifting skill set, both at the individual contributor as well as management level to continue their growth.

Dr. Cox concludes with the projection that DFW can look forward to many generations of continued success, but only if we accurately track the global competitive changes, and enact state and federal policies that support maintaining a global leadership position.

Wayne Rampey

Vice President

The InSource Group

www.insourcegroup.com

Federal Policies Stall Small Businesses

By James Thompson, President and COO of the InSource Group

(Recently published as a 2 part article in the Fort Worth Business Press)

It’s a widely held view that putting people back to work will help our economy get back on track. But where are the new jobs going to come from? Small businesses have traditionally been the primary drivers of job creation in the United States, however recent employment statistics show that business owners are getting by with fewer employees.

That prompts three questions:

• Why aren’t small businesses hiring?
• Why aren’t more small businesses being created?
• And is the environment for starting a business now different than it was a few years ago?

(read more...)

New Job, Clean Slate

It has many names; a “do over”, a 2nd chance, a 2nd life, or maybe even forgiveness.

Most people use these terms when describing action they wish they could change in hindsight. But those terms can also reference a more positive experience; the opportunity to start with a clean slate in a new job. The challenge and the opportunity will be how you write the story of your performance and career on this clean slate.

Our experience as an IT staffing company has given us the opportunity to see the “clean slate” experience for countless professionals.

You are typically hired based on a combination of factors. Generally speaking those factors include past performance, education, years of experience, industry knowledge, level of responsibility, compatible personal chemistry, and others. More importantly it will be based on the belief that you can perform at a higher level than your interview competition, and that you will positively contribute to the success of your new employer.

So what are some of the more important factors you should consider to increase your success with your new employer?

First, never forget that actions speak louder than words. You can wax eloquent all you want, but your employer hired you for results. You can only talk about what you want to do or how you are going to do it for so long.

Second, have the outline of your game plan in place when you start. Let’s call it your 90 day plan. It is hard to have a great ending, if you do not have a great start. Sales professionals typically have to do this when they start in a new sales role, but having a game plan is as valuable whether you are a Business Analyst, Dir of Development, CIO or President. The duties and goals will be different, but the end game is to improve your performance.

Third, there is a difference between a “can do” attitude, and a “will do” attitude. Winston Churchill once said, “Sometimes doing your best is not good enough. Sometimes, you must do what is required.” Doing your best and failing may still earn some respect from peers or even your manager, but it is not what you were hired to do. Figure out how to succeed in your new job above the expectations of your manager.

Fourth, identify a good mentor in your new firm. Mentors take many different forms, and they are not necessarily your immediate manager, or even your manager’s manager. You might even have more than one mentor. Identify professionals who have clear expertise and the respect of the company in specific areas you wish to improve. Every successful CEO will tell you that at some point in their career development, they had a great mentor who contributed to their development and success.

And finally, remember career success is almost always a collaborative effort. Unless you are competing in a solo sport or a one person company, your actions influence the actions of others. Individuals who give more of themselves while succeeding in their role develop stronger supporters and relationships than those who are clearly only concerned with their personal success. Great leaders, and not just good individual performers lead great companies.

Wayne Rampey

Vice President

The InSource Group

www.insourcegroup.com

Money vs. Title and Authority

Over the years, The InSource Group has helped clients staff technical positions ranging from individual contributor to SVP and CIO. One of the more interesting (and typically complicated) questions asked is: “How do I weigh the importance between job title, responsibility and authority, and money when making a job change?”

Since there is not a simple right or wrong answer our response is normally; “It depends”.

This question typically arises when someone is offered a position that has a more senior title and apparent increase in responsibility, yet does not have an increase in salary. Sometimes individuals are even asked to accept a lower salary than their current level for a “ground floor opportunity”.

In an ideal world all components of the job align correctly, along with their appropriate weight of importance. But we know that is not always the case. Titles are normally the tangible indicator of job responsibility. But authority is really the critical basis for success, and must come hand in hand with responsibility.

Books have been written on managing careers, and this is not intended to be a substitute for a more complete approach. Here are a few thoughts however to help you analyze the situation when presented with the Money vs. Title and Authority job offer.

First, at what stage are you in your career development? Ask yourself:

• Is it more important to maximize current income, or are you at a stage where responsibility and authority are more satisfying to you in your job than just money?
• Is the position a high risk position regardless of the role? If the new role does not work out, how does this job look on your resume? Does it really add to your long-term marketability, and does the title and role look legitimate on your resume based on past career progression?

Second, does the new position build important and needed skills for future advancement? Consider these aspects:

• With an increased title and role should come increased responsibility AND authority. Lacking authority to make critical decisions in the new role can lead to either premature departure or deprive you of being able to accomplish the tasks you were hired to perform.
• Be careful not to judge increased responsibility primarily on staff headcount. Managing a staff of 20 in a company with complete tactical and strategic leadership duties may be more important to you than managing a staff of 40 without having input on the direction of the organization.

And finally, be sure the “pull” to accept this new position is greater than the “push” to depart from your current role.

Don’t let the big title blind you to any warning signs! Accepting a new job without performing all the requisite research, reference checking, and due diligence could lead to a decision founded on regret rather than excitement for the new challenges ahead. Remember, there is a huge difference between an opportunity requiring transformational leadership and one where it will take a miracle to accomplish the goals.



Wayne Rampey
Vice President
The InSource Group
www.insourcegroup.com

What in the world are the politicians running our federal government thinking?

U.S. unemployment is holding steady at a disheartening 9.6%. That only counts the people that are actually looking for a job. Add the people who have given up trying to find one (the underemployed) and the rate goes to 16.7%. Millions of Americans are struggling to keep their homes and feed their families. Too many of us know someone in that situation.

The pace of fulltime hiring is slow at best while contract or long term temporary hiring is almost robust. This contract hiring in the absence of fulltime hiring is a clear indication that businesses are just not ready to make fulltime hiring commitments and there are no indications that they will change their minds any time soon. From our vantage point as a staffing/recruiting company it is clear that the unemployment situation is not going to get a lot better any time soon.

And it’s not just business that are not hiring. Consumers that make up 70% of GNP spending are not hiring either. I know this is a play on words but it translates to their lack of spending. Consumer spending is at historic low while saving is at an all time high. Consumers are hoarding what little cash they have and until they start spending again and business sees the revenue coming in this malaise is not going to end.

Washington is looking to the small business community to lift us out of this morass yet they keep putting up barriers. It seems clear to this small business operator that few in the present administration or the houses of Congress clearly understand how prudent consumers, business owners/management and investors think. The lack of understanding isn’t surprising when you look at the makeup of the administration and congress. Most of the White house advisors are academics or politicos. Fifty-two Senators are lawyers and thirty-six percent (36%) of the House of Representatives were lawyers when they were elected. Where are all the business people?

What is holding us back from hiring and spending? Ineffective and counterproductive federal actions, based in ideology and not experience, have led to an environment of uncertainty and a huge lack of trust in our federal government.

They don’t seem to believe that the prospect of higher taxes, the lack of finality in financial regulation, the fog surrounding the future cost of the new health care legislation and real worry about how America is going to pay off its staggering debt will keep businesses from investing NOW.

It’s not a difficult concept to grasp nor is business’s behavior hard to understand. The cost of doing business requires prudent stewardship of available resources and that translates to a cautious business investment environment. We have to wait and see what hurdles we are going jump over and what these actions are going to cost before we start hiring and investing.

The just signed tax relief for small businesses (it is very uncertain which they are) is a case in point. Federal tax relief is increased on 2010/2011 investments but businesses have to SPEND $1.00 to get “relief’’ of a maximum of $.37. In a healthy economy tax relief is a great way to stimulate investment spending. But in this kind of environment it is going to take the prospect of increased revenue/income and some predictability of potential increased cost to get most businesses spending again. I believe that is the same stimulation that is needed for the American consumer to start spending again.

The lack of hiring and consumer spending and the fact that business are sitting on a trillion dollars of cash or more should be proof enough.

A. Steven Raab
CEO

The InSource Group

www.insourcegroup.com

“They're all around us, man.”

You may recognize that title as a quote from the character Hudson in the movie “Aliens,” but it is not scary, face-hugging aliens that we’re discussing in this blog. This quote is an ideal lead in to discuss resources available for the information technology needs of a small- to medium-sized business(SMB).

Managing the information technology infrastructure in a SMB is challenging, rewarding and often akin to herding cats. It is a jumble of network administration, development, desktop support, training, project management and planning.

Companies of this size typically have a small IT staff, requiring a mix of general skills with specific areas of focus. The key to a successful technology strategy is to make effective use of a variety of internal and external resources.

Many such resources are widely available, such as consultants that bring highly specialized knowledge and experience for various needs or vendors, who typically have knowledge and best-practices focused around products or services that they are selling. The difficulty with these options lies in the selection and deployment of the right fit for the project.

There are a variety of less-utilized options, however, such as social networking sites, local “user groups” (technology specific club-like organizations) and even surprising assets already within your office walls.

What sparked the idea for this blog was a contractor who was in our office preparing to interview with a client for a position requiring senior-level network storage and backup skills. In the course of the conversation, he was asked a question about a storage need our company is currently struggling with and he immediately offered to help!

After a successful interview with the client, he returned to our office and gave a 30 minute overview on the subject, including suggesting and diagramming several viable options for our company. He provided us with a significantly better degree of understanding of the challenges and possible solutions to our network storage issue. And he did it for free.

While this encounter certainly proved to be serendipitous, recognizing and utilizing ALL of the potential technology assets available to a SMB can lead to a more reliable, sophisticated, well-designed and maintained IT structure without excessive spending and opportunity costs. Think outside the box when it comes to any project or requirement that is outside your IT staff’s existing skill set can yield surprising and positive results.

Jeff Weadock

Information Technology

The InSource Group

http://www.insourcegroup.com

Who is In Charge of Your Career?

Workers used to be able to count on their employers to train them, provide them with substantial medical benefits, and give them a job for life. In exchange, workers were fiercely loyal to their employers and considered their personal contributions in relation to the organization as a whole.

Times have changed, and workers can’t count on having their careers planned out for them by their employers. As a result, one would expect professional environments to hum with the energy of employees taking charge of their careers. However, I have noticed and am concerned about a lack of personal responsibility in today’s workplace. Too frequently, I encounter an attitude of entitlement, an expectation that everything is owed to the individual with little regard of the consequences to the organization, and a lack of dedication to doing the job right.

It seems that many of us still think that somehow, our employers are responsible for guiding us through our careers. Here’s the bottom line: Your employer, family, church or friends can’t solve the complex, protracted career issues we all face, such as how many jobs — or even careers — you have until you retire; if you can retire. You must become the master of your fate.

How can you do that? The biggest changes you need to make are in your attitude towards work. Here is a short list of things within your control that you can act on immediately to start taking charge of your career:

• Develop and maintain an entrepreneurial spirit

• Be a lifelong learner and pursue individual education

• Look for and implement ways to add value to the organization

All too often, workers settle for the status quo and become complacent about their careers and comfortable with the day to day routine – especially when they are getting paid for it. What they fail to realize is that complacency can kill a career.

Whether you have been complacent about your work, or you have been more involved in planning your professional future, there has never been a better or more critical time to fully assume personal responsibility for your own career.

Adapted From the Dallas Business Journal Article by:

James Thompson

President

The InSource Group

Read the full article on the InSource Group web site.

Reputation - You Build It Every Day

During my youth, my father (a 20 year Air Force veteran) used to tell me; “You are born with just one last name, you need to work hard to protect its reputation”. That was good advice to remember. The same holds true with your professional reputation.

Building and maintaining your reputation can be one of the hardest tasks you will ever undertake. Why? Because your reputation is built every day, it is not just a static event. Furthermore, consistent execution on a day in and day out basis on any task is a challenge. Few are as important as your reputation. It is important to recognize that your reputation is what others believe about you, not what you believe about yourself.

Most everyone is aware of the high profile visibility surrounding the departures of Robert Moffat, ex-SVP of IBM, and Mark Hurd, ex-CEO of Hewlett-Packard. Each had reputations of being squeaky clean, fiercely loyal, and two of the most effective leaders in a Fortune 50 company. Both lost their jobs in disgrace. Hubris and poor judgment effectively ended their public careers.

Beware of letting a prideful act tarnish or even ruin a lifetime of building your good reputation, no matter how innocuous it may appear at the time. As a litmus test, if you are not willing to have your mother read about it on the cover of the Wall Street Journal, you probably are at risk of exercising poor judgment. People and companies have long memories. The advent of technology and social media can easily magnify the awareness of a poor decision.

A good reputation allows you to aim higher in life, personally and professionally. A good reputation attracts positive attention, and can inspire others to do well. A good reputation can never be bought; it can only be earned. A person with a good reputation does not need to worry about what others think about them, for their actions speak louder than words.

Go out and do something good for yourself and others today.

Wayne Rampey

Vice President

The InSource Group

www.insourcegroup.com

HIRE Act – Are you taking advantage of it?

The Hiring Incentives to Restore Employment (HIRE) Act, is aimed at economic recovery and enacted in to law on March 18, 2010 However, employers need to act quickly; this is a time-limited program that expires December 31, 2010.

The Instant Savings (Payroll Tax Exemption):

The HIRE Act of 2010 provides a payroll tax incentive for employers to hire workers who have been unemployed for 60 days or more, which in turn promotes job growth. Employers, who hire unemployed workers this year, qualify for a 6.2% payroll tax incentive that, in effect, exempts them from their share of Social Security taxes on wages paid to workers after March 18, 2010. The reduced tax withholding has no effect on the employee’s future Social Security benefits, and employers will still need to withhold the employee’s 6.2% share of Social Security taxes, as well as income taxes.

The Rebate (Retention Bonus):

In addition to the 6.2% Social Security tax savings, businesses can claim an additional general business tax credit, up to $1000 per worker, when the new-hires are retained for at least one year. This tax credit is taken when the business files their 2011 income tax return. For each unemployed new-hire, that completes 52 consecutive weeks of employment, the employer can claim the income tax credit equal to, the lesser of $1000 or 6.2% of the wages paid during the 52 weeks. This $1,000 maximum credit is equivalent to about $16,130 in wages per new-hire. Therefore, if an employer has 10 new hires that are paid at least the minimum of $16,130 each, the income tax credit would be $10,000.

Restrictions Apply:

As with all sales, there are certain restrictions and regulations that apply. To obtain this instant savings and rebate, first, qualified new-hires:

1. Must be unemployed for 60 continuous days or more, prior to being hired; or, if working part-time, could not have worked more than 40 hours total during the 60 days prior to being hired.

2. Must sign and Affidavit (Form W-11), which is their statement to item number one.

3. Must not be a relative of the owner of the company

Second, employers:

1. Must hire qualified new-hires between February 3, 2010 and January 1, 2011

2. Can receive the tax credit when replacing a current employee, but only when that employee terminates voluntarily or is terminated for cause.

3. Cannot claim the payroll tax exemption and the work opportunity tax credit (WOTC), but can claim both the WOTC and the retention bonus.

The HIRE Act, can provide a huge savings to mid-market and smaller companies.

Lisa Pettigrew

Human Resources Manager

The InSource Group

www.insourcegroup.com

In Praise of Feedback

We firmly believe that we don’t praise people enough. Yet even the smallest positive remark can be genuinely rewarding and act as a powerful motivator. Everyone likes to know if they are doing a good job, and it’s easy to pass on positive information to deserving workers; you just have to recognize the opportunity and take the time to do it.

Providing frequent, truthful and direct feedback helps people understand how their work is being evaluated and what is expected of them and feedback is a key component in motivating and retaining employees. For companies that employ contractors, this can be difficult since the client manager typically supervises the contractors work. Through our years of IT staffing and recruiting, we have developed a simple yet effective system to recognize and provide feedback on performance while it is still timely.

All of our employees’ weekly time sheets have a “Performance Assessment” section that all client managers complete. Simple, yet it is an extremely powerful tool and an effective vehicle for communicating positive performance quickly and efficiently and also highlighting any issues that may have arisen. This capability provides an excellent vehicle for sharing information among all parties. Collecting the information is only part of the process; the real key is evaluating and disseminating the information in a timely manner. Positive feedback is communicated as quickly as possible, and in the rare event that a corrective action needs to be taken, it can be easily identified and managed accordingly.

Client managers develop a level of comfort with specificity in regards to performance related matters knowing that they have a vehicle to use for communication that will be acted on rather than flowing into a black hole. Contractors appreciate the fact that their performance is being honestly evaluated by the people they work for on a daily basis. Our job as the staffing firm is to facilitate communication, for the most part, good news.

Below are a few client comments we have had the privilege to pass on to our contractors:

• “(contractor) continues doing a super job as we transition to final prototype build. He has helped drive the group in task and completion that has supported successful product demonstration. I personally appreciate his flexibility, positive attitude and adaptability when day to day priorities are modified based on near term needs.

• “(contractor) has really been quick to pick up new tasks and is a real self starter. He finds the resources that he needs to get the job done.”

• “(contractor) has excellent customer service skills. He has been the fastest person I have ever seen come up to speed in our very complex environment.”

In these instances we make sure the contractor receives the accolades and feels appreciated. In the few instances where client managers have identified areas of concern, which may have not been communicated otherwise, we address those areas specifically with our consultants to ensure improvement. This has played an important role in The InSource Group maintaining its extremely high level of client satisfaction.

A simple concept enabled by a repeatable process has given us the opportunity to give praise where praise is due. Now that is genuinely rewarding.

Brett Schaefer& Mark Stevenson

Sales Managers

The InSource Group

www.insourcegroup.com

Team Building and the Art of Whirlyball

What happens when you throw a group of seriously competitive, energetic and strong-willed people who work together into a completely different situation; one that involves bumper cars and whiffle balls? Lots of trash-talking, future visits to the chiropractor and a rollicking good time.

Our industry, IT recruiting, is fast-paced, competitive and often requires a high degree of diplomacy. Seeing our staff all compete in a no-holds-barred competition was not just fun, but educational. Each and every team worked hard together and played in a manner that would make any World Cup coach proud. We’re a highly competitive bunch, but this can also result in conflict. As issues arose in the games they were resolved quickly, effectively and amiably. This, in turn, brought about a greater focus on winning. Hmmm…could this somehow translate into a workplace lesson?
Playing Whirlyball gave us the opportunity to let loose, have fun and not worry about our actions impacting our business. In return, everyone gained new insight into those around them. While playing, we all let off a lot of steam and came out of the event happy, sweaty, relaxed and with some great stories to tell.

While such training as the Meyer’s Briggs personality testing is worthwhile, it was good to mix in something completely offbeat. I gathered a great deal of understanding about how a lot of my coworkers deal with things without the strictures of a professional environment. Such fun and educational experiences should be a regular part of any company’s training regimen.

Next time, I’m shooting more and driving into fewer walls!

Jeff Weadock
Information Technology
The InSource Group
www.insourcegroup.com

So, You Want to Hire an “A” Player?

During meetings with our clients, managers often tell us, “We only want to hire an “A” player”.

What does that really mean? And are companies and management really prepared to handle the total package of responsibilities that go hand in hand with hiring a true “A” player? Every company needs its share of “A” players, but frankly not every position can handle the challenges and demands of an “A” player. These employees have greater expectations including:

• Higher Compensation: Not just at the point of initial hire, but also throughout their tenure of employment. They expect larger compensation increases and they will most likely command those increases in order to retain them long term.

• More Responsibility: Be prepared to fast track their careers or lose them to competitors who also vie for their talents. They want responsibility and expect a quick path to get it.

• Higher Work Standards: They expect more of their immediate superiors and expect to be managed differently. The “one size fits all” approach is a recipe for disaster with them. They also expect high performance standards from their co-workers and seldom settle for less. This can make exceptional employees more challenging to work with.

As an IT recruiting company, we have found that there is an additional aspect of attracting and hiring good employees that is almost universally over looked; you have to court and interview them differently than the rest of the talent pool. If you really need and want to hire that “A” player, then you need to show it. These candidates expect to be “sold” on why a particular job or company is a good move for their career. Typically, “A” players interview very well. As a suitor for their talents, you need to do a better job than they do.

If you put them through a poorly thought out interview process or just run them through your standard interview process, don’t be surprised if they are not overly interested in your opportunity. “A” players have options, regardless of the state of any economy. Sometimes more options, sometimes less; but they always have more options than others and will not hesitate to exercise them.

One of our recent experiences during an SVP search illustrates the need to treat “A” players differently. Our client’s first choice had an existing offer, and had to respond to that offer soon. The candidate had just started a typically lengthy interview process with our client. Our client recognized the need to speed up the process, but without sacrificing thoroughness. They rearranged their president’s schedule and included many senior level executives in the interview process on a compressed timeline. The final decision has yet to be made, but this is an example of changes that may need to be made to accommodate the legitimate needs of top talent.

It is critical to fully understand the responsibilities of managing and challenging “A” players to retain them over the long term. Be prepared to clearly illustrate the benefits of joining your firm, both in terms of career opportunities as well as the impact on the social fabric of your organization. “A” players like to associate with “A” players. During the interview process, involve some of your top performing employees even if they are not in the same department or at the same job level. This lends credibility to your claim of being able to attract, challenge, and keep top talent.

Wayne Rampey
Vice President
The InSource Group
http://www.insourcegroup.com/

Dress Codes Don’t Take a Vacation

At the last company I worked for, the receptionist’s official title was “Director of First Impressions.” Well, I recently visited an insurance services company, where a young, attractive woman, dressed in a hot pink, terry-cloth sundress, greeted me. As she walked away from the receptionist area, I further noticed she was wearing very cute and fancy flip-flops. Although she looked quite lovely (for a day at the beach), I thought, “Really? This is the 'first impression' this company wants to present?”

Unfortunately, this insurance company is not alone. It’s almost universal that as the summer temperatures rise, the adherence to a company’s dress code policy drops! Workers adopt a "vacation view" of dress codes. Females, especially, start to wear less; we see more cleavage, more leg, and less in foot coverage. We see everything from spaghetti-straps and halter-tops, to mini, mini-skirts and flip-flops. True, styles change with every season change, however, I believe, when conducting business, it is very important to exude professionalism always, and these clothing items fail to do that.

The majority of companies now practice the “business casual” dress code policy, which can leave much to self-interpretation, if not outlined with specifics. Employees must realize that all “casual” clothing is not suitable in the workplace. Clothing that you would wear on the beach, in a nightclub or for exercising and yard-work is not professional or appropriate in the workplace. Clothing that reveals the chest, cleavage, back, stomach or underwear is also inappropriate. These items can actually be distracting and/or offensive to co-workers, clients and customers.

To remain professional, wear a jacket or sweater to cover low-cut blouses and spaghetti-straps. If you are the slightest bit concerned about the length of your skirt or split in your skirt, you probably should not wear it work. And those strappy sandals with the 5-inch spiked heels, that looked “hot” at the club Saturday night, are probably not professional in the office; and neither are the fancy flip-flops, even though you paid nearly $100 bucks for them.

When the temperatures heat up, don’t let your clothing style “heat up.” Remain professional and present strength and stability when representing your company in front of your clients, customers and even co-workers. Be cognizant of your company dress code policy and abide by it, even when the temperatures rise above 90 degrees. And save the flip-flops, no matter how fancy or expensive, for the mall or the beach.

Lisa Pettigrew
Human Resource Manager
The InSource Group
www.insourcegroup.com

Current DFW IT Job Market

In 2009, most of the country experienced layoffs and a depressed job market. Fortunately for those of us in Texas, and in particular the IT job market, we were one of the least affected nationwide.

In the winter of 2009, the economy started showing signs of recovery and, as a DFW IT recruiting company, our hopes were high that 2010 was going to be a much better year. Several of our clients told us in annual client reviews that they expected to begin hiring again and restart project plans that were put on hold, but the vast majority told us they were still concerned about the economy and were in a “wait and see” mode. We expected an anemic recovery with slow growth, but we were cautiously optimistic for 2010.

What have we seen this year?

The Federal Reserve’s June 9th Beige Book report for the Eleventh District (Dallas) stated, “Business conditions continued to improve,” and, “Employment levels held steady (with) reports of hiring activity.” Reports from staffing industry contacts indicate, “…demand remains strong and widespread across sectors. Orders are mostly for contract work but assignments are becoming longer in length and temp-to-hire placements continue to pick up pace.”

What we have experienced in the first half of 2010, as a staffing agency, is in line with this report. We have had a significant increase in activity with more open job requests than during the same time frame in 2009. Job offers to our candidates have gone up, several of our candidates are receiving multiple offers, and job offers are coming more quickly. In one case, a software developer was hired sight unseen and without an interview by one of our clients. He was only on the market for 3 hours!

What does this tell us?

The IT job market in North Texas is definitely becoming more active as regional economic activity improves. Companies are gradually spending and hiring again, indicating an optimistic outlook. Competition for candidates is increasing, making securing top candidates more challenging.

What does this mean to our clients?

Despite a 9.7% unemployment rate, securing the “A+” candidates still requires companies to do all the right things to streamline the hiring process and make their open positions as attractive as possible. Smart hiring managers shouldn’t hesitate in reviewing resumes, scheduling interviews, and making hiring decisions. Besides a competitive salary, hiring managers need to ensure their companies offer stimulating jobs and positive work environments. They also need to have a formidable benefits package that includes health care and a 401K. With business improving, companies can’t afford to keep critical projects on hold and expect to remain competitive.

Brett Schaefer & Mark Stevenson
Sales Managers
The InSource Group
http://www.insourcegroup.com/

Common Hiring Mistakes

As an IT staffing agency, we see a lot of the “best” and “worst” hiring practices in the industry. Below are some mistakes we have seen that can be easily avoided:

Overlooking the Over Qualified

Employers shy away from over qualified candidates for fear that they will be gone as soon as another, higher-paying position comes along. Though this does happen, it doesn’t happen as frequently as one might expect. In this job market, there is a lot to be said for non-monetary benefits a company has to offer. If an employee feels valued in a secure position, or if they have a positive work environment that offers room for professional growth, they are not as likely to leave just because they can earn a little more money elsewhere. With the amount of cutbacks companies are doing, there is an unprecedented glut of talent in the market. Hiring managers should not filter out candidates just because they seem to be over-qualified for the position.

Having Human Resources Do the Recruiting

Even the most talented human resources representative is not going to have the depth of knowledge required to fill a job in a technical department. He or she can read a job description without fully understanding what is needed in the job. A lack of ability on the part of HR is only part of the problem. Forcing a technical candidate to walk through bureaucracy might deter them from pursuing the position further.

Letting Crisis Control the Job Description

Managers often face a hiring situation as the result of a project crisis. They need to get someone with a specific skill set to help them immediately. These circumstances tend to generate very specific job descriptions that are harder to fill. Often, someone with strong fundamental problem solving abilities can learn the needed skill and be a better long term employee. By hiring purely based on a specific skill set, managers can end up with a candidate that doesn’t have the broader capabilities that would allow them to adapt to future project needs.

Relying Too Much on “Gut” Feel

One of the worst mistakes is writing off a candidate too quickly. Managers will make up their mind about a candidate in the first part of the interview, and then spend the rest of the interview looking for something to support their feelings. Most people think they are pretty good at conducting interviews, but by and large, they have not had the proper training or experience in selecting the right people. Relying on this “gut” feel short changes the company and the candidate, when it is not backed by solid interviewing skills and techniques.

(From Dallas IT recruiters at the InSource Group.)

The Brain Drain From Texas

On the surface, it might sound contradictory. Almost everyone agrees Texas
was the place to be during the recent financial market turmoil. Businesses in
Texas fared much better than almost every other state. There are many reasons
for this, most of which were established years if not decades ago. But will
that favored status continue to last?

Dr. David Daniel, President of UTD gave an interesting and important presentation
to the Metroplex Technology Business Council luncheon on June 4th. Dr. Daniel
emphasized why it is critically important several Texas Universities achieve
Tier One Research University status.

From my viewpoint, I think you should really call it the "brain drain
from Texas". The positive economic impact great research universities have
on local economies can be staggering. Without it, Texas and DFW will struggle
in this highly competitive race for talent.

Consider the following as detailed by Dr. Daniel:

• DFW is the only one of the top 10 most economically productive cities
in the U.S. without a major academic research university.

• Texas exports a net total of 7,800+ top high school students per year
to doctorial granting universities. We give our best and brightest up to universities
in other states. In 2010, of the three valedictorians from the Plano high schools,
two are going to Harvard the other to MIT. The valedictorian from Pierce High
School is going to Stanford.

• Texas has 8% of the U.S. population, yet we receive only 5% Federal R&D
funds (about $3 billion / year), and about 5% of U.S. based venture capital
investments. If we just received our population based share, that would increase
by another $3.7 billion / year. By the way, V.C. started companies generate
over 18% of all U.S. business revenues.

• Consider MIT's economic impact. In 1994, Bank Boston estimated MIT alumni
founded more than 4,000 companies that employed 1.1 million people and had annual
gross revenues of $232 billion. In 2005, the entire DFW Metroplex (which produces
one-third of the state's economic output) had a gross domestic product of $285
billion. Stated differently, one world class university can have an economic
impact equal to one of America's largest cities.

• I could keep going.

So what's a state to do? Texas is making some progress.

We passed Proposition Four in 2009. That provided $500 million of matching
state funds to be used by 7 Texas Universities towards R&D activities. But
more must be done at the local community and private donation level.

Below are two links with information presented to the State of Texas by Dr.
David Daniel, President of UTD regarding pursuit of tier one research university
status. I encourage you to read these. Both written in 2008, they are a great
blueprint for the focus and progress being made.

http://www.utdallas.edu/president/documents/executive-summary.pdf

http://www.senate.state.tx.us/75r/Senate/commit/c535/20080723/David_Daniel_Tier_One_Universities_Report.pdf

Posted by Wayne Rampey, Vice President, The InSource Group

Business must change in the age of ‘the new normal’

Recently published in the


BY JAMES E. THOMPSON
April 26, 2010
The InSource Group

If you’re reading this expecting some encouraging words about the U.S. economy and business climate now that the recession is technically over, you will be disappointed. Economists are telling us that robust growth won’t return to the U.S. economy for some time to come. The world in which we are living and doing business has changed and businesses must change with it or suffer the consequences. However, the economic crisis does present opportunities to make necessary changes in order to survive and even prosper in this altered environment.

Perhaps the biggest challenge executives will confront is to get their workforce to accept that these changes aren’t a quick fix. The speed and magnitude of how business must change is unprecedented. Executives must get their employees to not only accept but also embrace what’s been called “the new normal.”

So, what can be done?

First, redefine success. We’ve all heard how the rising tide lifts all boats. Now there isn’t enough economic tide for all boats to float; growth will come from wresting market share from competitors or from startling innovation that creates new demand, as Apple executives hope for with its new iPad. Executives need to reset goals and communicate them accordingly to their employees. While it may be easy to shrug and blame poor results on the economy, businesses can’t accept that and expect to remain operating for long. The new normal demands operational efficiencies that are innovative and executable in order to feed the bottom line.

Conversely, employee attitudes must shift, as those without the heart for a marathon effort will soon find themselves out of work or under-employed. In the new normal, successful performers will display shrewdness, courage and stamina because the business climate will remain challenging for the foreseeable future.

The key to success with the new normal is execution. Successful strategies will be those that can be executed flawlessly, which means that senior management can’t only set strategies, it must oversee the execution of those strategies day in, day out.

Lawrence Bossidy, retired CEO of Honeywell and before that AlliedSignal, is a well-known advocate: “Many people regard execution as detail work that’s beneath the dignity of a business leader. That’s wrong. To the contrary, it’s a leader’s most important job.” He even co-wrote a business best-seller on the topic, Execution: The Discipline of Getting Things Done.

Bossidy writes about a key component – discipline. It requires discipline to make sure that a business strategy is executed for results daily. When he moved into the corner office at AlliedSignal, he found that the company had four basic processes: for people, strategy, budgeting and operations. Yet, he writes that they were “empty rituals, almost abstractions.” He set out to develop a culture of execution that sought results and continuous improvement across the entire operation.

Michael Dell has lived both sides of the execution equation. As a college student, he devised an innovative business model – sell personal computers direct to the consumer – and oversaw execution of that model, resulting in Dell Computer’s phenomenal early success. Yet the company got sidetracked when too many processes were outsourced. As execution suffered, competitors grabbed market share and toppled Dell from its throne as king of the PC market.

Michael Dell has returned to the company and is leading with cost-cutting and “disciplined execution.” Results have improved, although the company hasn’t regained leadership of the PC market, although it has expanded its services offering by acquiring Perot Systems. Time will tell whether Dell can execute its way back to the top.

In this age of the new normal, success will be in the details. Some may call it micro-management, however let’s call it the new management. Larry Bossidy and Michael Dell are good role models – execution is king and discipline is its servant.

Executives who take to heart the lesson of “never let a crisis go to waste” and move immediately to make major changes to their operations and corporate cultures will have a chance. But only if they have the heart to relentlessly monitor execution daily and continue to adapt in order to survive. Any business that ignores the new normal will perish.

James Thompson is president of The InSource Group in Dallas. He can be reached at: jt@insourcegroup.com

Worst Practice – Hiring Process!

With hiring on the increase, people often ask about best practices. Occasionally an executive will ask, “What's one of the worst practices you have encountered.”

Here is our response. We thought you would enjoy.

Our client had a critical need, undertaking a critical project, with limited manpower in the needed area. They could not afford to make a hiring mistake. And time was of the essence (or so they said)!

So, how did they approach their hiring decision? Each candidate required an extensive pre-phone screen involving written responses to a series of technical questions (think 30 – 45 minutes long). Second there was a short phone screen with the company after review of their resume. Then there was a 2 hour in person interview at the office. If the candidate did well, they were asked back for an intensive half day technical grilling and interviews. And finally, the company always liked to have at least two “qualified” candidates before making an offer.

This process virtually ensures the majority of candidates interviewed are either,
1 - unemployed, or
2 - desperate to leave their current job, or
3 - happen to live next door to the hiring company.

Most "A" candidates are unwilling to subject themselves to this process. Why? Do the math. 1 hour for the phone screens, plus 2 hours for the first interview, 4 hours for the second interview, 2 hours drive time, plus around 2 hours working with the staffing firm, start to stop 11 hours. At $45 / hour, that equates to a candidate cost of about $500 just for the “privilege” of interviewing.

The person they ultimately hired quit after two weeks…. So much for the “fail safe” interview process.

What can be done to improve their process and (by extension) yours? It’s not that hard. Shorten and compress, eliminate the written responses, focus on the most important or key items of success, and less on knowledge of minutia in the phone screen. If two face-to-face interviews are needed, be sure you are spending everyone’s time in the right areas. The second interview should also assess how the person will fit into the work environment, as well as further probing into any necessary technical skills. And finally, be prepared to tell the candidate why your opportunity is a good fit for their career and goals. Anyone can technically grill a candidate; just don’t forget that at the end of the process, you turn over final control to them.

Candidates have been developing their image of your company during the entire interview process. And they have the final answer to your offer!

Posted by Wayne Rampey, Vice President, The InSource Group

Six Economic Themes for the Decade Ahead

Dr. Michael Cox of SMU (and past Chief Economist of the Federal Reserve) recently presented “Six Economic Themes for the Decade Ahead.”

The 25 year period from 1982 – 2007 represented the longest string of almost uninterrupted growth in U.S. history, in stark contrast to every other measurement period. The 2010 – 2020 period will most probably be different.

Innovation was the first theme, and was key to economic growth from 1982 – 2007. Fueled by the technology explosion, spillover from hardware, software, the Internet, and microchip hugely impacted our economic growth. In fact from 1995 – 2007 the microchip and its usage was the most important contributor to economic growth.

So what’s in store for 2010 and beyond? We are still waiting for that one great idea or innovation. One possible prediction is Pharmacogenomics, which is the ability to use individual genetic information to predict whether a drug will make a patient well or ill.

Globalization. Foreign country growth has added approximately 3 billion new capitalist consumers. 21 of 22 potential customers are now outside of the United States, and accessible in ways never before available.

Credit. From 1982 – 2007 there was an abundance of financial trust and available credit.

Recent large scale financial institution failures (at least in the near term) resulted in even greater government regulation. The years from 2010 – 2020 credit markets will most likely operate under a cloud of suspicion and fear. Unabated, new government rules have the potential to crush small businesses in the opinion of Dr. Cox.

Consumerism. Our attitude has shifted from “too much ain’t enough” over to “saving is chic." Personal savings rate shifted from approximately 9% in 1947 to 1% in 2008. Personal debt had grown to 120% of personal income.

Times have changed. Current savings rate has grown to 4% at the end of 2009 and appears to be rising. Companies need to better understand elasticity of demand relative to income and its impact on changing purchasing habits by businesses and consumers.

Inflation. Most mainstream economists believe a low steady rate of inflation is good. Low (as opposed to zero or negative inflation) is typically believed to reduce the severity of economic downturns

Between 1982 – 2007 inflation averaged between 2% - 3%. In 2009, inflation in the U.S. averaged -.34%. With the National Debt projected to be almost $12 trillion in 2010, controlled positive inflation is critical to help improve the economy. Controlled inflation will help in reducing the federal debt and improve equity values in private real estate ownership.

Government. Between 1982 – 2007 government intervention was considered minimal. The general feeling was “less is better."

However, Dr. Cox feels there will be significantly more government regulation and intervention between 2010 – 2020. This is driven both by the recent problems in the financial markets as well as the current administration’s underlying political philosophy.

This does not bode well according to Dr. Cox, and he foresees serious negative implications to business growth as a result. He also believes the income tax burden to higher earning individuals and businesses will increase.

Further government overreacting with policy fixes and increasing the tax burden will slow the economy even more in Dr. Cox’s opinion.

Conclusion

So was the overall opinion by Dr. Cox one of complete doom and gloom? No. While clearly he is concerned that overreaction by the federal government in terms of policy making could seriously impact the well being of private enterprise, an even greater opportunity lies with the expanding global economy. The challenge for American based companies is to recognize and correctly respond to this global business opportunity.

Posted by Wayne Rampey, Vice President, The InSource Group

What a difference a year makes!

Last night, The InSource Group hosted a client networking event. Over 65 people were in attendance, representing a cross section of clients from the DFW Metroplex, from small businesses to Fortune 1000 companies. It was very interesting to compare the tone and tenor of the conversations last night with a similar event that was held a year ago.

Twelve months ago the words that best characterized those conversations were "uncertainty," "anxiety" and "commiseration." This year the mood was decidedly more upbeat. From cautiously optimistic to sanguine, if last night was any indication, we are definitely in the midst of a recovery. While everyone queried acknowledged that we had a long way to go, for most attendees, hiring was up and expense constraints are gradually being lifted.



Clearly, everyone who attended had a great time, fueled in part, of course, by food and drink, but also and perhaps most importantly by a sense of optimism about 2010.

Recognition vs. Compensation – Which is most influential?

As the economic recovery continues, anecdotal evidence as well as formal surveys continue to point to a significant problem in today’s workforce. As an IT recruiting firm, we see this problem often as we look for candidates. That problem is employee discontent.

So why is this such an important topic to discuss? Especially coming from a company which makes its living helping individuals find new careers.

With the vast majority of candidates, compensation is one of the first topics indicated as their prime motivator. After all, most of us would like to be making more money, and think we deserve more money. But upon detailed discussion, we almost always find a plethora of other issues behind that person’s desire to change employment. And compensation is rarely the only or even the primary reason a person will accept a new job. Think about it……… why accept a new position making 5 – 8% more, when the same problem set exists at the next employer?

The economy is recovering, profits are rising, but in most cases that deep reservoir of cash for large salary increases is still not an available option. So if you have limited financial resource to increase compensation or you have already handed out raises, what options do you still have?

First, lets look at some of the most common issues we hear from individuals. Employee discontent typically boils down to individuals feeling like:

• They are under appreciated or under recognized for their contributions, or
• There is not enough autonomy in performing their jobs, or
• They are not truly making an important contribution in their job, or
• They are not learning or being challenged enough for future career growth.

Importantly, these types of feelings play across all generational ranges of employees.

If you look at Fortune Magazine’s 2010 list of the 100 Best Companies to Work For, one important common denominator that drives their success is enlightened and innovative management. But lets not confuse greatness with absolute size, nor being the biggest as the most successful company. The companies on Fortune’s list did not become successful or grow faster than their competition until management recognized how to motivate all of their employees to perform at a higher level.

So what is a firm to do to fend off this potential disaster of looming employee turnover? Sometimes just revisiting the fundamentals of good management principles will help solve much of the problem.

1. Companies need to refocus on the renewal of the bond between company and employee.
2. Treat employees with greater respect and trust regardless of their position or income level. You will experience greater productivity from your employees when they know you respect and trust them.
3. Be clear with company communication. Knowledge breeds confidence and clarity of purpose. Ambiguity leads to misinterpretations, rumor, or even worse – misaligned goals and efforts by employees.
4. Recognize that different employees define success differently. Enlightened management recognizes those differences, and within reason manages to those different expectations. Authoritarian approaches breed resentment and handicap a firm’s ability to compete effectively.

Posted by Wayne Rampey, Vice President, The InSource Group

Moving Forward in Today’s Economy

On March 5th, IBM’s Chief Economist Dr. Phil Swan was in Dallas to present to The Metroplex Technology Business Council. In Dr. Swan’s role, he evaluates economic data at the macro and microeconomic level, and advises the executive staff of IBM to assist their strategic decision making process.

As you might expect, Dr. Swan’s presentation contained a mix of news about the economic recovery, and specifically some interesting data on Information Technology’s contribution to the recovery. Some of Dr. Swan’s observations include:

• On a positive note, from 1995 to 2008 the U.S. utilized Information Technology to increase productivity growth better than any other country. Better than Japan, the European Union or the OECD. In fact between 2001 to 2008, Dr. Swan attributed 60% of U.S. productivity increase to Information Technology usage.

• In 1980 total Government Debt as a share of GDP was 37%. In Q3 of 2009, total Government Debt as a share of GDP was 69.2%. This current debt level severely constrains both Government and private industry investments in areas that could contribute to growth in a positive manner.

• Between Dec. 2007 to Q4 of 2009, the number of unemployed increased by 7.6 million, the under employed increased by 5.6 million, for a total increase of 13.2 million. Over 7.5 million jobs would have to be created to bring unemployment back down to 5%. The best year ever for net new jobs creation was 1984 in which 4.2 million new jobs were created. So what does this mean? It would take 2 years of unprecedented job growth to create the 7.5 million needed jobs to reduce unemployment back to 5%

• A real time measurement of the health of the economy is the Purchasing Managers Manufacturing Index. From second half of 2008 to Jan / Feb 2010, the index increased from 42 to 58.4 in the U.S. Any number greater than 50 is positive news for the economy although we would like to see an even higher number than the 58.4.

• Increasing corporate profits bode well for rising business capital outlays. The global inventory correction (I.e. moving from limited or a no stock inventory) is turning into production gains due to the need to replenish inventory levels. This production gain is a positive influence on the economic recovery.

So what was the final message? Dr. Swan was somewhat optimistic that the economic recovery will continue with a positive trajectory. The GDP recovery however will likely proceed at a much slower rate than the past decade, and most likely at an average of between 2.0 – 2.5% year over year growth.

Posted by Wayne Rampey, Vice President, The InSource Group

InSource Group awarded Schedule 70

The InSource Group was recently awarded an Information Technology Schedule 70 contract by the U.S. General Services Administration (GSA), the procurement arm of the federal government. The five-year contract streamlines the ability of Federal customers to purchase The InSource Group’s advanced IT consulting, application development, and other IT related services.

Federal, State and local agencies can obtain information about The InSource Group’s GSA Schedule 70 contract services on the GSA web site at: www.gsa.gov (search for Contract Number: GS-35F-0230W). The InSource Group’s services are offered under the Special Item Number (SIN) 132-51, Information Technology Professional Services, and the award is effective February 15, 2010 – February 14, 2015.

DFW Marketplace Changes in 2010

My purpose in writing is to communicate The InSource Group’s overall assessment of how the market in the Dallas Ft. Worth metroplex is changing in 2010. This assessment is potentially significant in terms of our client’s abilities to remain competitive with respect to future hires regardless of whether they are employees or contactors; and it also speaks to the challenges associated with employee and contractor retention that have already arisen in 2010.

Without question, demand for new technical resources is up significantly. We began to see an increase in client requirements beginning in December and that trend has continued unabated through February. This is particularly true in the Dallas market where we have seen a 40% increase in requests for technical contractor resources, additionally; full time requests are also up by approximately 17%. This has resulted in many of our candidates being able to pick and choose between multiple job offers. In terms of new hires, speed of response and competiveness of compensation are becoming more critical to our client’s securing the talent that they need.

With respect to retention, the market has changed. 2009 was a buyer’s market. 2010 is shaping up to be a seller’s market. Contractors will have alternatives available to them that were not options last year. They will all be looking at two factors in assessing whether to stay or leave; rate and length of assignment.

In particular, for those contractors who received rate reductions last year, they will be looking to at least have their pre-reduction rates restored. If this is not possible, another alternative may be to extend their assignments for as long as possible. Some contractors have spoken of their willingness to trade a longer commitment for rate dollars. Please recognize that both contractors and full time employees will be receiving calls from recruiters. Retention challenges have increased; how you respond will dictate the outcomes.

Web 2.0

How Is Web 2.0 Impacting Your Business? Harnessing The Untapped Potential

As an IT recruiting firm, we are constantly studying technology trends that impact our clients and candidates. Nothing in recent history has had as unique an impact on business as social media and the Web 2.0 world. According to a recent survey conducted by computer reseller CDW Corp., nearly half of IT decision-makers have rolled out Web 2.0 tools in their organizations. Businesses that have yet to officially implement these new tools may be surprised at the extent to which their employees use them anyway. Web 2.0 is already impacting your employees and customers. The question is: “Can you leverage these tools to support your business objectives?” In my opinion, your organization should have official plans to weave Web 2.0 tools into the fabric of its operations. However, if official implementation is not on the horizon, management should investigate the potential of these tools and at least set parameters for unofficial use.

Web 2.0 is the broad term for the second generation of the Internet, encompassing interactive tools such as social networking sites, wikis and blogs, that can potentially enhance collaboration, productivity and provide a forum for dialogue. Some of the most common and widely known Web 2.0 companies include Facebook, Twitter, Wikipedia and LinkedIn. Lesser known or up and coming Web 2.0 companies which may be interesting if not instructional to check out include Wetpaint, Kookyplan, Shoutlet and Bzzagent. Web 1.0 made information more accessible to everyone; consequently, hierarchical business structures were flattened. Web 2.0 allows individuals a myriad of new ways to not only find and view information, but also to comment and give input. This new two-way communication further flattens organizations and is ushering in a more meritocratic way of doing business.

Victoria Bracewell Lewis, senior analyst of e-business and channels at Forrester Research said, “As trust in established brands and media fades, consumers turn to one another for advice and validation.” To put it another way, Web 2.0 has everyone talking. This may be unsettling to some business leaders not comfortable with such transparency and free flow of information. However, the magnitude of the Web 2.0 movement can’t be ignored. Consider the growth of Facebook--150 million users expected to double in 2009. The greater risk to a company may be not adopting Web 2.0 tools and having the unofficial use grow both inside and outside the firewall of the company. This phenomenon has motivated more than one organization to officially implement Web 2.0 tools in an effort to have greater input regarding their uses and be better able to monitor and participate in online dialogue.

So what is a company not yet in possession of a clear Web 2.0 strategy to do?

Begin by setting up a structure to address Web 2.0. This does not require a major investment and can be as simple as appointing an existing employee to serve as a part-time project manager to investigate current unofficial Web 2.0 use. The process of uncovering existing unofficial uses is a critical step. Begin by asking questions such as:

• What tools are employees already using to accomplish work-related tasks that you don’t know about?
• Are employees, partners and customers sharing information online that relates to your organization?
• Are there industry forums, wikis or blogs frequented by your organization’s publics?
• Are there unofficial Web 2.0 uses that negatively impact your organization or its productivity?

Once you are more aware of the current Web 2.0 uses which impact your organization, work with employees to identify what existing applications could be effectively exploited to fill a need. Further explore options not yet widely used by employees and open a dialogue with early adopters about how they think such tools could fill a need in the organization. Implementing Web 2.0 tools at the corporate level for the sake of jumping on the bandwagon won’t ensure a benefit to the organization. In fact, implementing tools that employees don’t find relevant could create resentment and division. Take time to find out what Web 2.0 users in your company would like to see officially implemented.

Once you have uncovered an unofficial implementation that seems to have merit, or a real need that could be solved using Web 2.0 tools, implement official testing on a small scale. One of the great things about these new tools is that they are often free. Initial investigation and testing doesn’t necessarily require a major investment. Of course, the cost of implementing major Web 2.0 initiatives can be more significant once you factor in the man-hours necessary, as well as the cost of hardware and bandwidth sometimes required to properly implement these tools on a large scale. Cost alone shouldn’t preclude you from developing a Web 2.0 strategy. You may be missing a major opportunity by ignoring the possibilities out there surrounding this latest iteration of the Internet.

One impressive example of leveraging Web 2.0 is HP’s use of the blogging community. The company simply gave away 31 of its new HDX Dragon computers to influential bloggers. The bloggers ran contests to give away the computers to their readers. The campaign developed a life of its own and sales of HP personal computers jumped 10 percent in one month in 2008.

Although Web 2.0 tools effective for your business can be uncovered by examining existing grassroots uses, the implementation of effective applications requires upper-level buy in. A recent article published in The McKinsey Quarterly online journal examined the early adoption of Web 2.0 tools among 50 organizations and found that successful implementation of Web 2.0 efforts had the backing of upper management. The article asserted that although Web 2.0 application with the most value come from users, management needs to be involved on several levels including identifying applications that are effective and scaling them up. While participation technologies work best when they are initiated as a bottom-up strategy, management that is tuned in to what works and how to encourage proper use of these tools have more success in their implementations.

The McKinsey research also found that one major reason for failure of Web 2.0 initiatives was management’s discomfort with its lack of control over information. Striking a balance between freedom and control can be difficult. The article suggested that although fears are often overblown and social norms tend to enforce proper usage, managers should work with the legal, HR and IT security functions to establish reasonable policies, such as no anonymous postings.

For organizations able to strike the right balance when opening up lines of communications with its many publics there can be huge dividends. Consider the Proctor and Gamble success story. By opening research and development to feedback from outside the organization through Web 2.0 tools, the company was able to increase the success rate of its product launches from 20 percent to almost 80 percent.

Proctor and Gamble and HP’s Web 2.0 uses are dramatic examples of a much larger groundswell. Although the concept of Web 2.0 has taken a few years to come into focus, the time has long past for speculating whether or not Web 2.0 tools are a fad that will burst like the dot com bubble. It’s here, it’s real and it impacts employees and customers whether organizations embrace it or not. Shouldn’t you address Web 2.0’s impact and potential for your business?

Instilling a Return on Investment Mindset In Our College Bound Children

How to Get Your Child Off of Your Payroll and On To Someone Else’s

Like most high school juniors, my daughter has no idea what her college major will be, much less what she’ll wind up doing for a living. And like most parents, I can be politically correct and say, “I just want her to be happy.” However, the ideal solution, of course, is for her to be happy and self-supporting. But given today’s economy, a college degree does not always ensure self-sufficiency as an outcome. As proof, talk to the baristas at your local Starbucks: they may be even better educated than you.

This issue hit home a few weeks ago, when my wife and daughter went off to their first college visit. Given the fact that we are probably talking about an investment in the $250K range, it seemed only reasonable that I give this a little thought, despite the fact that my signature on the checks will not allow me access to my child’s grades.

So I started thinking about how to help my daughter apply a return on investment (ROI) mindset to her education. A challenge – especially since her current prevailing interests in college visits revolve around shopping, socializing, texting and dining out.

I want to increase my daughter’s awareness of the importance of considering choices and consequence. In business terms, I want her to focus on achieving returns and a desired outcome. This mindset will serve her well in life, regardless of her career path. So I offer three recommendations for those of us faced with helping our children maximize their investment in future independence.

First, help your child define their expectations regarding the outcomes of their college experience. What kind of lifestyle do they hope to lead? Where would they like to live? Do they have a career path in mind? All of these things should impact their decision on where to go to school and how they will need to apply themselves during their undergraduate years. College is an opportunity to gain tools and knowledge in order to have a rich and successful life. Beginning with clear expectations in mind will help them focus their efforts and narrow their choices in directing their college experience. I am not suggesting that helping them achieve a clear set of expectations will happen in one conversation—start now, their expectations will evolve, but the process could take some time.

Second, educate your child on the reality that a college degree is not the only factor considered in the hiring process. We can help our kids by having them consider how they will differentiate themselves from the competition during their college career. Internships, research projects, multiple majors, summer jobs, team projects and charitable activities are some examples of choices they can make or activities they can become involved in that will help them stand out from the crowd. Future employers will look beyond the college degree to see what they have done that demonstrates a strong work ethic, the ability to apply themselves to a task despite adversity, and work productively as a team member. Helping your child to understand this will give them a tremendous leg up in securing a reasonably well paying job and beginning on the path of a promising career.

Third, just like they will be held accountable in work force, we should help our kids understand that they need to hold themselves to an acceptable level of performance: otherwise, they will be limiting their future opportunities. A 2.0 grade point average will not land them great internships, a place on a professor’s research project, or a space on the sign up sheets for corporate interviews. Average performance will lead to average opportunities that will seriously limit future options and most likely curtail achievement of desired outcomes.

I think parents can do more for their kids by helping them achieve an ROI mindset, than the writing of a check could ever do. By helping my daughter define her desired outcomes and understand the impact the choices she makes will have on those outcomes, I hope to help her build her own prosperous future.