Monday, August 24, 2009

What's UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)

University of Illinois Board of Trustees - Application Admissions Activity

In July 2009, the University of Illinois Board of Trustees were reported to have tampered with university admissions applications and admitted lower qualified (or maybe even un-qualified) applicants based on clout. Alleged charges also focused on a potential violation of the Illinois Ethics Act rules on nepotism. In August 2009, the University of Illinois Chairman of the Board of Trustees resigned. From a leadership perspective, the implications of this behavior by the members of the board of trustees goes much further than the perceived notion of admitting non-qualified students into the university. This week’s blog will address some of the ways the University Of Illinois Board Of Trustees’ activity may impact society in general.

Concerns of Using the Concepts of Clout in Academic Admissions

OK, there is the possibility that a “few students” did not meet the university’s admissions qualifications, but were admitted anyway. First, how long has this activity been going on? Once admitted, have these students demonstrated their ability to grasp the knowledge to pass the classes in their respective schools of study? Or do the concepts of clout extend to the classroom and the academic assessment process as well? Has anyone (inside or outside of the university) monitored the progress of students who did not meet admissions standards to see if they met the graduation requirements – yet were still allowed to graduate? Or, do the concepts of clout and privilege supersede the concepts of meritocracy and fairness?

In accordance with privacy and confidentiality regulations, no student names were given – and rightfully so. However, there are dire future circumstances if unqualified students were admitted to the university; graduated from the university; and placed in professional careers throughout our “fragile” business environment which is already challenged with immoral, unethical, illegal behavioral trends. Some potential pitfalls are discussed below.

Potentially Societal Impacts

There are no details of the academic progression of students allegedly admitted without meeting the university standards. Nonetheless, here are a few things to consider of how some of our society’s widely used industries can be affected. These considerations are highly theoretical, but not beyond the realm of possibility. What happens if a student is admitted to any university; does not meet academic standards but still graduates; and starts a career in the field of medicine or pharmacy? Is it possible that our healthcare industry, that we care so deeply about, has practitioners that received their degree based on something other than their competence?

What about the fields of law or political science? What about criminal justice? If unqualified or under-qualified graduates infiltrate this sector of society, will we appropriately sustain our means of governance? Can we maintain our way of life which has been in place for over 330 years? Will the practice of “who you know” be the acceptable norm of American society?

Finally, our existing business environment withstands reports of malfeasance and unethical behavior on a daily, weekly, monthly basis. Facilitating a process where those without adequate training and development are placed in executive/leadership roles is a recipe for continued disaster when public confidence in corporate behavior is already waning. Yes, the criteria for assessing leadership readiness are subjective, and will vary among companies. However, nurturing a process that allows college admission; college graduation; and executive placement based on clout and nepotism, rather than competence and qualifications should not be condoned.

Summary

Again, there is no evidence that the activity of the University Of Illinois Board Of Trustees has resulted in the aforementioned scenario. But there are no documented reports that show it has not. Given my 30+ years of experience and observation of leadership behavior, I am hopeful that these potential challenges are wrong. The consequences of selecting the wrong leaders within an organization can be expensive. The consequences of selecting an undeveloped or unqualified leader can be even greater.

More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing).

Feedback to the bi-monthly blog entry is always welcome.

Monday, August 10, 2009

What's UP - (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective) August 9, 2009

What’s UP (Weekly, Hot, Applicable Topic Summary - Unbiased Perspective)

The U.S. Government Financial Stimulus Package : A 90-day Review

During the first quarter of 2009, the U.S. Government’s approach to reviving the American economy was arguably the most pressing issue in our country. My initial blog entry on May 17th provided an unbiased perspective on the stimulus package initiative. I wrote of a “three-pronged approach” that the government was using to fix our economic woes: assistance to multi-billion corporations who asked for assistance; b) state and local municipalities that needed financial assistance in repairing, roads, bridges, and other aging infrastructure components; and c) providing financial assistance directly to American citizens. This blog entry will review the progress of the stimulus package during the past 90 days.

Financial Assistance to Multi-Billion Corporations

On May 17th, I reported that some of our most prestigious and profitable multi-billion dollar corporations requested (and received) financial assistance from the U.S. government. Since that time, some of these same corporations have returned to Washington D.C. and asked for more financial assistance. Further, some of these same companies have also reported quarterly profits for the 1st quarter of 2009.

There is still a “mixed bag” of reaction from the investment community. Some of the companies have seen their stock price remain flat, while other companies have seen their stock price return to levels prior to the Summer/Fall of 2008. Thus far, the U.S. Government’s desired outcome from providing financial assistance to multi-billion corporations has not materialized. There appears to still be room for significant improvement.

Financial Assistance to State and Local Municipalities

Financial assistance to state and local governments for repairing the country’s roads, highways, and bridges appears to be working. In the past 90 days, I have only traveled through 10 states. However, I did observe significant construction repairs in all 10 states. I have not found any reports of inoperable roads, highways, or bridges that have been recently repaired. With the amount of attention given to the economic stimulus plan, any failure (or rumors or speculation of failure) would be front-page news across the country.

In addition, this part of the economic stimulus initiative is also helping to keep construction workers employed. As a result, there are signs that providing, financial assistance to state and local governments is delivering the desired results of improved roads, highways, and bridges as intended. Further evidence of success in this initiative will be available during the winter months when changes in the weather have the potential to impact travel. Removing snow and dumping salt on icy interstates will give a better indication of success in repairing roads and highways.

Financial Assistance Directly to American Citizens

The final portion of the economic stimulus initiative was to devise a way of giving financial assistance directly to the “average American citizen”. There have been government checks sent to citizens; there have been tax cuts built into citizens’ paychecks; there have been multiple avenues and opportunities for small to mid-size businesses to apply for – and receive – financial assistance. All of these attempts have produced marginal results. However, the one activity which has proven to be successful is the “Cash for clunkers” program. Automobile buyers have the opportunity to receive up to $4500 when trading in a “qualified clunker” for a new car. The U.S. Government subsidized this program with $1 billion. Within four days, American citizens had traded in their clunkers for new autos and fully exhausted the $1 billion. The program was viewed as such a success the U.S. Congress approved an additional subsidy to continue to support this effort in stimulating the economy.

As a result of the auto sales, and the government’s willingness to support the program, financial assistance directly to U.S. citizens is providing the desired outcome envisioned. It will be extremely interesting to see the impact to the U.S. economy if the same fervor applied to the automobile industry is applied to the U.S. job market and the unemployment rate.

More information on corporate leadership can be found in Corporate Leadership Selection: Impact on American Business, Employees, and Society (Authorhouse Publishing). Feedback to the bi-monthly blog entry is always welcome.