Posts tagged with: management

Terminator-2-Judgement-Day-posterI oppose implementing Skynet and increasing minimum wage laws for the same reason: to forestall the robots.

It’s probably inevitable that a T-1000 will return from the future to terminate John Connor. But there is still something we can do to prevent a TIOS from eliminating the cashier at your local McDonalds.

In Europe, McDonalds has ordered 7,000 TIOSs (Touch Interface Ordering Systems) to take food orders and payment. In America, Panera Bread will replace all of their cashiers with wage-free robots in all of their 1,800 nationwide locations by 2016. There is even a burger-making robot that can churn out 360 gourmet hamburgers per hour.

I, for one, welcome our new fast-food robot overlords. I’m just not ready for them yet.
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Faithful in All God's House

I recently shared a lengthy excerpt from Faithful in All God’s House, highlighting the investment-return motif that appears throughout the Bible. “All of God’s gifts to mankind are as a divine investment on which the investor expects full return,” write Berghoef and DeKoster.

Several readers pushed back on the analogy, interpreting it to mean that God rolls out his divine plan according to earthbound assumptions, as if “prudent investment” means being beholden to the outputs of a narrow, materialistic cost-benefit analysis.

It’s troubling on many levels that “prudent investment” has come to reckon imaginations of something so imprudent for so many. We humans, the “agents of return,” are called to live within a framework much more varied, complex, and mysterious than the confines of a Wall Street banker, despite those times when such considerations have their place. We serve a God of love, and just as that love is deep and distinct from distorted human variations, we are called to live and think and act according to an economy not of our own constructing. (more…)

Franciscan University in Steubenville, Ohio, has launched a new Center for Leadership which university alumnus Rep. Jeff Fortenberry, R-Neb., lauds as a project that “roots young men and women in virtue, forms them as leaders, and grounds them in sound philosophical thought.”

David Schmiesing, who directs the center and is also vice president of student life at Steubenville, said, “This is our most explicit and focused effort yet to train leaders for the Church and world.”

One of the resources provided to students through the Center is the university’s distinguished speakers series with the likes of Virtuous Leadership author Alexandre Havard and Acton Institute president and co-founder Rev. Robert A. Sirico, who is on the center’s board of advisors. Rev. Sirico spoke there on character, virtue, competence and vocation.

From the article by NCR writer Joseph Pronechen:

“We have a chance to speak with and meet with different distinguished speakers who have been all around the world studying incredible things,” said leadership student Camille Mica. “Getting the opportunity to talk with these speakers with such incredible credentials, I’ve learned a lot from them and been very encouraged and strengthened by their words and message and example.”

Though the leadership center will have a global outlook, Schmiesing noted that, ultimately, all leadership is local.

“If Catholic leaders don’t lead in their families, then all the other leadership is not going to be effective,” he said. “Leadership in the family is essential and applies to men and women. We’re teaching students in the center the skills, knowledge, virtues that will help them to be more effective in their families and then flow out to the churches, then to occupations.”

David Schmiesing is the brother of Acton Research Fellow Kevin Schmiesing.

Read “Training Leaders in Christian Virtue” on the website of the National Catholic Register.

The Manhattan Institute’s Proxy Monitor project is aimed at “shedding light on the influence of shareholder proposals on corporations.” It provides a thorough analysis of proposals made from 2008 – 2011 by activist investors — and believe it or not, only 35 percent of those proposals were related to corporate governance. Most of the shareholder proposals that these companies deal with are attempts to direct the company in a more green or pacific or fair direction, and they come from small shareholders who do this to dozens of companies.

A new report from Manhattan summarizes the trends — the growing social proposals, and how Dodd-Frank has playing into activists’ activities — and the proxy monitor website allows you to look at any shareholder proposal from the last few years. The proposals are enlightening. The Sisters of Mercy of the Americas have submitted proposals to the stockholders of Lockheed Martin and General Dynamics stating,

WHEREAS: Space has served as a sanctuary where, over the years, nations cooperate rather than confront one another. Satellites save lives…

RESOLVED: Shareholders request that, within six months of the annual meeting, the Board of Directors provide a comprehensive report on Lockheed Martin’s involvement in the space-based weapons program, at reasonable cost and omitting proprietary and classified information.

The well-meaning Sisters of St. Francis of Philadelphia, in a proposal to McDonald’s shareholders that made the news earlier this year, requested that,

WHEREAS,

The Affordable Care Act, signed into law on March 23, 2010, included federal menu-labeling legislation requiring the posting of calories on fast food menu boards….

RESOLVED: Shareholders ask the Board of Directors to issue a report, at reasonable expense and excluding proprietary information, within six months of the 2011 annual meeting, assessing the company’s policy responses to public concerns regarding linkages of fast food to childhood obesity, diet-related diseases and other impacts on children’s health.

Many other equally well-intentioned proposals have been filed, including repeated requests by the Sisters of Charity of St. Elizabeth that various pharmaceutical companies restrain their prices to “reasonable levels.” The Unitarian Universalists have requested that Pepsi Co. “create a comprehensive policy articulating our company’s respect for and commitment to the Human Right to Water.”

This is not to mention the numerous environmental proposals made by religious groups, requesting that the Rights of Humanity and of Mother Earth not be violated by carbon emissions and by the use of genetically engineered plants. Take, for instance, this statement from a proposal to Du Pont’s shareholders, concerning genetically engineered crops:

The right to food requires that we place the needs of the most marginalized groups, including in particular smallholders in developing countries, at the centre of our efforts

One might think the Sisters of Charity of St. Elizabeth were unaware that it has been the genetic improvement of crops that has saved millions of the world’s poor from starvation.

We’ll keep you posted on further developments, and the effects these proposals may have on companies’ performance.

David Lohmeyer turned up this excellent clip from the original Star Trek series:
Kirk opens the clip by referencing the Nazi “leader principle” (das Führerprinzip). Soon after Hitler’s election as chancellor in 1933, the German theologian Dietrich Bonhoeffer gave a (partial) radio address and later lectured publicly on the topic of the “leader principle” and its meaning for the younger generation. These texts are important for a number of reasons, not least of which is that Bonhoeffer compares the office of “leader” to a kind of inherent law of life (or natural law) that determines whether or not the leader is actually meeting his responsibilities and obligations. Thus the leader is not beyond the law, as the Nazi version of the principle held.

 

For “men seeking absolute power,” as Spock puts it, this rule of law must be denied. Therefore the reason that “absolute power corrupts absolutely” is that it arrogates power to a creature that is beyond its inherent nature as creature and distinct from and beholden to a creator. It makes a man into a god.

Thus, writes Bonhoeffer,

People and especially youth will feel the need to give a leader authority over them as long as they do not feel themselves to be mature, strong, responsible enough to themselves fulfill the demands placed in this authority. The leader will have to be responsibly aware of this clear restriction of his authority. If the leader understands his function differently from that thus established, if the leader does not repeatedly provide the led with clear details on the limited nature of the task and on their own responsibility, if the leader tries to become the idol the led are looking for–something the led always hope from their leader–then the image of the leader shifts to one of a misleader, then the leader is acting improperly both toward the led as well as toward himself.

The leader’s function must be balanced, Bonhoeffer continues, with the other orders of the world: “The leader must lead the led into responsibility toward the social structures of life, toward father, teacher, judge, state. The leader must radically reject the temptation to become an idol, that is, the ultimate authority of the led.”

This is, as Bonhoeffer notes, the perennial temptation of those with political power, and it follows from the basic fallenness of humanity. Spock says rightly, “Your whole earth history is made up of men seeking absolute power.” We are, as fallen creatures, constantly creating idols, out of ourselves and our surroundings. As Bones McCoy puts it, when “a man holds that much power, even with the best intentions, [he] just can’t resist the urge to play God.”

It is comforting, I think, that Lord Acton’s wisdom survives into the 23rd century: “Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”

There was a good deal of discussion in the media over “unfair” executive compensation, especially in light of the bonuses, golden parachutes, and other forms of remuneration received by CEOs during the bailout.

I have yet to hear much complaint about CEOs being underpaid, though.

But this might change as it becomes apparent that under-compensation of executives might well be a way to wriggle out of higher payroll tax liability. Consider the case of CPA David Watson, who “incurred the wrath of the IRS by only paying himself $24,000 a year and declaring the rest of his take profit.” The Slashdot piece makes the compelling conceptual connection between Watson’s case and that of “the much ballyhooed $1 Executive club like Steve Jobs, Larry Ellison, Sergey Brin, Larry Page, and Eric Schmidt.”

The outcome of this? According to a WSJ overview of the Watson case, “Pay can vary—but it can’t be too low.”

I think if we follow the golden rule we’ll get a golden mean for the golden parachute so that it won’t strangle the golden goose.

Blog author: jballor
posted by on Thursday, February 15, 2007

One of the stories told in the Acton’s forthcoming documentary, “The Call of the Entrepreneur,” (trailer available here) is that of Brad Morgan, a Michigan dairy farmer, who bucked the odds and the naysayers and turned the problem posed by the disposal of his herd’s manure into a profitable business venture.

His innovative solution to manure disposal, turning it into high quality compost for a variety of purposes, led to the formation of Morgan Composting in 1996, and more than ten years later the business is still going strong.

Sirico: “Sometimes they’re the most common resources that we walk over, that we ignore, that we even are perhaps repulsed by…”

Reflecting on the role of the entrepreneur in the market economy, Acton president Rev. Robert A. Sirico says, “Sometimes they’re the most common resources that we walk over, that we ignore, that we even are perhaps repulsed by, that become the source of wealth, the source of jobs, the source of prosperity. I mean this is an incredible institution.”

Perhaps no “resource” illustrates this reality better than manure. Brad Morgan turned the waste from cows into a valuable commodity. And now researchers and government officials are following Morgan’s lead.

Wendy Powers, a professor of agriculture at Michigan State University, says, “We really need to think outside the box on what uses for manure are.” Brad Morgan thought outside the box and Morgan Composting now offers a full line of products.

The Associated Press report says that “fiber from processed and sterilized cow manure could take the place of sawdust in making fiberboard, which is used to make everything from furniture to flooring to store shelves.”

“Farmers are having to put more and more money into dealing with manure,” said Tim Zauche, a chemistry professor at the University of Wisconsin-Platteville. “This is a huge cost to farmers.” A dairy farm can spend $200 per cow per year to handle its manure, Zauche said.

But looking at manure as a resource to be managed rather than waste to be disposed of is the key difference in perspective. That’s what Powers calls thinking “outside the box.”