In a letter to the editor in the June 2, 2011 Wall Street Journal, Charles Plushnick of Brooklyn, New York cites the recent U.S. Supreme Court ruling calling for the release of prisoners from California’s prisons as an example of failed leadership in California’s statehouse. Plushnick observed that neither former Governor Arnold Schwarzeneger nor former-now-current Governor Jerry Brown were or are capable of the kind of leadership demonstrated by former New York City Mayor Ed Koch, who increased the capacity of his city’s jails when faced with a similar challenge three decades ago.
Plushnick may be accurate in his assessment of the comparative leadership capabilities of the mayor and two governors. Plushnick seems to avoid the more compelling story of failed leadership. Failed leadership created the overcrowding in our correctional institutions. The problem is not that current facilities lack the needed capacity but that the demand for housing in correctional facilities dwarfs current capacity. That the demand for correctional facilities is so high is the real evidence of failed leadership.
It appears to me that the public discussion, at least coming out of politicians and the press in Washington, DC, seems to be missing several key points in the encouragement of businesses to create jobs.
For 25 years, I have, among other things, helped companies and government entities to improve productivity and operational and financial performance. For decades, companies have pursued improved productivity, leaner operations, and more efficient processes, with less waste, less rework, and less labor content. Consultants like me have helped government entities and companies in most, if not all, industries tie staffing levels to demand for products and services. I’ve helped insurance companies align staffing with sales activity, policies in force, and claims caseload. I’ve helped an accounts payable department in a government entity tie staffing to incoming bills to be paid. I’ve helped startups understand the timing of when to add staff, add executives, expand offices, and open new offices, all tied to workload.
Of course, I have done many other things but the point is that the mindset of people in the US economy is geared to connecting hiring to increased workload and demand for products and services. For fifty or sixty or more years, companies have been trained to avoid speculative hiring and to not add staff until existing staff is “fully” utilized with an acceptable level of overtime.
The continuing political crisis in Kenya, as reported at The Independent among other places, continues to surprise some and disappoint many who have been to Kenya for business or pleasure. Having visited Kenya 12 times since 2004, to attempt to offer hope to refugees at the Kakuma Refugee Camp and to serve as a resource to leaders seeking a sustainable resolution to the, until late 2007, somewhat latent conflict in Kenya, I have been disappointed yet not surprised by the recent dispute between Kenya’s President and Prime Minister. This time the conflict appears to be over the authority of the Prime Minister to discipline Cabinet Ministers; this may be the symptom rather than the underlying problem. As with 2008’s post-election violence in Kenya and other episodes of conflict in the world today, a primary issue seems to be ineffective leadership.
In recent research for my doctoral dissertation, a leadership model emerged from the consensus among 375 leaders in Uganda’s Acholi sub-region that may apply to the Kenya context. Leaders, by what they say and do, and by what they do not say and do not do, define the beginning and end of conflict, the resolution of issues, and the reconciliation of interests and of individuals. Leaders divide people and reintegrate them.
Since the current economic downturn began, roughly coinciding with the announced collapse of Lehman Brothers, pundits and politicians have spoken frequently of the need for job creation as an essential component of economic recovery. Creating work and creating jobs seem to be two different, even if related, objectives and outcomes.
Creation of work implies a shorter horizon than creation of a job. I create work when I identify one or more related or unrelated tasks for which compensation is appropriate for one or more individuals. Somehow a job implies longevity, if not comparative permanence, to the work. The tasks may be the same, but the duration differs.
If I want to put people to work, I simply need to identify the tasks, the skill set, the appropriate compensation, and the funding source. If I want to put people to work, the only missing components are the identification of an available labor source and the hiring of a sufficient number of individuals from the identified labor pool.
If I want to create jobs, I have a different challenge. For decades, employers have used automation and process improvement to reduce the labor content of their products and services. Some employers in some cases concluded that outsourcing or off-shoring certain jobs or functions had financial advantages that could yield financial advantages in the short or long term. In the interest of improved profitability or price competitiveness, employers made direct and indirect processes leaner with respect to labor and other resources.
I encourage leaders and people who think about what it means to be a leader during the current challenging times to complete the following survey. It is long; it may, however, provide useful insight into the roles, pracitces, and behaviors of leaders as we begin the second decade of the 21st century.
Thank you in advance for your participation in this current research of mine.
