Keys to Economic Development: Managing Ignorance
Here’s a premise on which most businesspeople and educators probably can agree: the legendary Dr. Peter Drucker – as a writer, teacher and consultant – was the ultimate as a business-role model. He surprisingly had some periodic critics in education. He preferred Claremont Graduate University, www.cgu.edu, and reportedly turned down four professorship offers from Harvard.
At the age of 95 in a published interview in 2004, he was asked if he had any regrets about his work.
His response:
“There are many books I could have written that are better than the ones I actually wrote. My best book would have been “Managing Ignorance,” and I’m very sorry I didn’t write it.”
He was a voracious reader, wonderful inspiration to millions, and he lived a long, rich life. As one of my heroes, I selfishly wish he lived longer – he passed away Nov. 11, 2005. His teachings have particular significance for me.
If given the opportunity for an interview, with great delectation I would have relished the visionary’s analysis on numerous fronts regarding the economy.
That includes these four developments:
No. 1: Decrease in educated Americans. The National Center for Public Policy and Higher Education has issued some disturbing news in its policy alert, which is entitled, “Income of U.S. Workforce Projected to Decline if Education Doesn’t Improve.” It calls on the 50 states to do a better job in education to prevent a projected decline in worker skills in order to brighten the future of America’s economy.
The public policy group, www.highereducation.org, contends the American workforce is undergoing major change; especially the core of workers, age 25 to 64. Until at least 2020, the study shows worker wages will continue to decrease. Simultaneously, the number of workers with high school and college diplomas will decline exponentially.
Why? The number of educated white workers will drop from 82 percent to 63 percent while the number of less educated minorities will increase from 18 percent to 37 percent. (The center’s study is available at http://www.highereducation.org/reports/pa_decline/index.shtml)
No. 2: Decline in math and science. America’s expertise in science and technology is fast deteriorating, according to a study by the National Academy of Sciences, www.nationalacademies.org. The report was written by a group of top corporate executives, educators and scientists and is entitled, “Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future.”
In essence, the panel of experts set four goals:
- Improve math and science education in grades K-12.
- A more cordial milieu for science for college and post graduate studies.
- Increase federal funding for scientific research.
- Encourage the growth of family-wage jobs in evolving industries with tax incentives and other fiscal tools.
It wasn’t surprising that the report identified two Asian countries, India and China, as among the nations that will surpass the U.S. in job creation and innovation. (The report is available in a PDF file at http://www.nap.edu/catalog/11463.html.)
No. 3: The quandary over China. The U.S. is appeasing China to excess, according to economist and professor of international business at the University of Maryland, Peter Morici.
“These policies impose huge trade deficits and unemployment on the United States, create enormous imbalances in the global economy, and contribute importantly to the Great Recession,” he wrote in a commentary Oct. 8, 2005.
He is on a quest to educate America about China’s approach, as evidenced in this 2005 e-mail to me: “To secure its supply of oil, extend its influence and solidify internal security, the Chinese government is building a blue-water navy and spending massively to modernize its army
By even us advocates of free trade, it is hard to ignore the professor’s conclusions.
“That means targeted trade sanctions if China does not revalue its yuan and does not respect intellectual property, and if it exploits worker rights to achieve export advantages or otherwise breaks the norms and rules it acknowledged by joining the World Trade Organization, International Labor Organization and other international organizations,” he said.
“It’s time to face up to the fact that China, rather than evolving into a democratic society with a market economy, could just as easily morph into a fascist menace with global reach,” he said. “Appeasement didn’t work for Britain dealing with Germany in the 1930s, and it is not working for America with China now.”
Could Dr. Drucker have related to Dr. Morici’s analogy? Who knows? But when the Nazis banned and burned one of his essays in the 1930s, Dr. Drucker fled to England. He argued against the appeasement of Germany by England.
No. 4: Creation of jobs. Three-fourths of all the planet’s new jobs will be generated by just 9.8 percent of new businesses, according to a research organization, Global Entrepreneurship Monitor (GEM), in its assessment of entrepreneurship in 39 countries.
While women entrepreneurs are a major force in America, most of these anticipated startups are to be launched by well-educated men aged 25-34 years with high incomes in the U.S., Canada, Australia and New Zealand.
Ostensibly, monetary trade issues and the pressures of an uneducated workforce will apparently vex a major economic engine – the world’s startup entrepreneurs. (GEM entrepreneurship reports are available at www.gemconsortium.org.)
So, how would Dr. Drucker analyze such developments? Good question. For clues, I’ll re-read his books in my office.
For starters, consider:
In his book, “Managing for results,” he wrote: “Waste runs high in any business. Man, after all, is not very efficient. Special efforts to find waste are therefore always necessary.”
And while training the board of directors of an organization, I was reminded once again that his writings are a great resource. In answering a question about how I continually evaluate my efficiency, I told the audience that I never end my day’s work until I assess my activities. That is one of my daily efforts thanks, in part, to the management pioneer.
In “Management Challenges for the 21st Century,” Dr. Drucker suggested that it is important for a manager to know the answer the question, “Where do I belong?”
But to answer that career dilemma, he pointed out it is actually necessary for a person to know the answers to three questions:
- What are my strengths?
- How do I perform?
- What are my values?
What a wonderful scholar. In my experience as a business practitioner, I know he was right.
Candidly, as a management consultant, I meet few managers and staff in the workplace who innately know to ask and answer such questions. But after they’re trained in how to accurately assess their strengths and weaknesses, they benefit from an average 30 percent increase in self esteem. As a result, organizations progress nicely as their managers and workers perform much better.
By the way, for many years in HR training classes, I’ve quoted this Dr. Drucker statement: “Arrogance is being proud of ignorance.”
In other words, continual study and evaluation will help a person to avert complacency.
If every businessperson practiced these principles, promoted education and focused on managing ignorance, the economic outlook would be brighter.
From the Coach’s Corner, 58 percent of small business managers and owners believe the economic climate will worsen according to an Aug. 2009 study by Small Business Research Board (SBRB).
Salient SBRB conclusions include:
- Fifty percent of businesspeople in the northeastern part of the nation believe the worst is over.
- The least confident – 62 percent of respondents in the western U.S. fear the worst is ahead.
To read more, visit www.ipasbrb.com.
Strategies to Advance into Management
Dear Terry, I’m stuck in a low-paying job after not being able to able to sustain my employment after getting a student loan for which I’m paying over $180 per month. Your articles on student loans were helpful. I was recently honored to be asked by upper management to apply for a better paying job in my company but they hired someone else instead. I really feel hurt and disillusioned.
Yes, I continue to receive numerous e-mails regarding student loans. Please accept my condolences about your company. Your employer doesn’t sound like a best-management practices company.
It might not seem like it now, but this is an opportunity for growth. There is always light after darkness.
Yes, for career advice, you have some options:
1. Start reading inspirational books.
2. Mount a campaign to market yourself inside your company.
3. Market yourself externally. Go all out to find a better employer.
4. Continue to read books, especially about subjects you enjoy for personal growth. Such footwork will energize you.
A good book of ideas is a work of art. It’s worth its weight in gold. Even in this digital age of instant communication, successful people profit from reading books.
Many years ago when struggling to jumpstart my career, I bought a paperback, “Moving Up: How to Get High-Salaried Jobs,” by Eli Djeddah. The 1971 book is out of print but it had timeless strategies and I’m sure copies are available online. My recollection is that the author presented several valuable insights on getting a promotion.
That includes techniques in one-to-one communications with bosses. In 1980, I set a sales record for a nationwide company with 34 locations and so my employer gave me a promotion. But it was in a recession. In terms of additional new responsibilities, I was given more but it was only with a minimal raise. It felt like a slap in the face. So I did some reading, rolled up my sleeves and got very busy.
As a result of reading Mr. Djeddah’s book, here’s what I did to earn more money within my company:
I looked for a problem that was marginally outside my realm of responsibilities that also needed to be solved for the overall welfare of the company. Once I solved it, I waited a couple of weeks and reported to my boss: “I thought you’d like to know what I did about a problem to increase efficiency and increase profit.”
Two weeks later, I identified another problem to solve and went through the same process. A month later, my employer began to smile at me more.
It was time to go for the jugular – a raise. I asked my boss for an appointment. When the boss asked why I wanted to meet, I said it had to do with “concerns about my career.” Much to my pleasant surprise, my supervisor wanted to see me right away. That was great because I’ve always preferred scheduling important meetings at 10 a.m. I drove to his office. As I sat down and before I said anything, he offered me a raise. But the raise was much less than what I felt I deserved. I didn’t complain, whine or point fingers at my boss. Instead, I calmly looked at the floor.
After about 10 seconds, my boss got the idea and said: “Okay, okay. I’ll review the budget. Let’s talk after lunch.”
When I returned from lunch, my boss upped the ante. That was my first lesson in detachment sales.
Actually, this floor-focused process worked for me again years later when I was negotiating my first consulting gig in radio station programming. Same thing – it wasn’t enough money. After I returned from lunch, the station manager sweetened the pot by offering to pick up my room and board for the two weeks I’d be visiting his station. That night I had steak and lobster for dinner.
It appears your company has weak management. So also putting out feelers would be productive.
Here’s what I’d suggest:
Analyze your weaknesses and strengths. Determine what you’d really like to do. Set some goals, work daily on self improvement and hone your self-marketing skills.
What about your Internet presence? Social networking is fine but you should be listed prominently online, such as a professional in your field, chamber of commerce membership and as a community service enthusiast.
If you’ve been forced to work at a lot of jobs, dilute your resume’s focus on dates. Most people illogically put the date at the left of each job listing. The natural movement of the eye is to start on the left of a page and it moves to the right and down the right side of the page. You don’t want the dates to be the reader’s first focus. Therefore, list the date at the lower right following each job description paragraph.
If you bounced around to different industries, don’t list your jobs chronologically if it will hurt your chances. Such dates are almost immaterial. Later, you’ll be filling out an application chronologically with exact dates, so make sure your first impression, your resume, is the most-positive.
Be sure to write about the results of your work. Use third-person phrases, such as: “Jane worked her way up from…” It makes it easier for you to grandstand without being gauche – an example of SSP – shameless self-promotion.
Focus on the acronym, WIIFM. Employers will be asking themselves, “What’s in it for me?” Answer their questions in advance on your resume.
Unless you’re a baby boomer with a long work history, I’m an advocate of one-page resumes. Don’t even mention the word, references, or the phrase, “references provided upon request.” Let interviewers ask for references. Realistically, boomers should emphasize their experience but not their age.
Send a well-written thank you note to interviewers after every meeting. Cite specific examples of what you enjoyed about the meeting. Give a benefit statement on why you should be hired. Thank them for their consideration. And what ever their concerns are, prevent buyer’s remorse by reminding them that you’re the person who will provide the value they seek.
Network with others. That’s the best way to find a good job outside your company. If you don’t have one, start a network.
Here’s what I did: I contacted successful people via mail and followed up with a phone call to ask to meet with them briefly to get their advice on my career. I contacted people two levels above the job I wanted. They weren’t threatened by me. But people just above my level – sometimes they are insecure as supervisors – perceived me as threat. At the end of each meeting I would ask for the names of two other people with whom I might also discuss my career. Sometimes the process led to job offers. Even as a college junior, a TV executive once offered me a job as a staff announcer and I didn’t have any TV experience, just a couple of radio jobs.
Sometimes a lateral move works well to another company, if you sense ample opportunities for advancement.
Even in this era of casual dress, if you want to stand out in a crowd, remember to dress for management success. If a company is rigidly into casual dress, you might not want to work for them. But many good companies are complaining that casually dressed workers don’t perform as well as they once did. Look ahead. Today, dress at the level you want to achieve in five years.
When you’re able to do so time-wise, focus on community service.
Good luck! When you get into management, remember how you were treated this year and set a better example for your employees.
From the Coach’s Corner, an IBM study has some interesting conclusions for employers and job-seekers, alike, regarding leadership.
The study contends online gaming prowess is a plus. The study, “Leadership in a Distributed World: Lessons from online gaming,” concludes online gaming develops leadership skills and mental agility.
To see the study: www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1028184