Built to Last – a revisit to a still relevant book

This is a repeat post from about nine years ago. It is longer than my current posts, but I did pare down a few dated anecdotes.

As a retired business person, my favorite business book is “Built to Last – Successful Habits of Visionary Companies” written in 1994 by Jim Collins and Jerry Porras. “Built to Last” is a data driven book that looks at the habits of 18 highly successful companies and contrasts their results to the second-best competitor in their industries. While the data supports their arguments, it is an easy read and not an arcane business book. To me, its lessons can be translated to any organization or governmental entity, be it national, state, provincial or local. If you would like to explore it more, check out the WikiLeaks summary of the book which is quite good.

While I read this book several years ago, today’s business, political and governmental climate of more short-term thinking troubles me. As our country does not have the patience to see if an idea works, we are destined to try small band-aid solutions that will never get at the underlying problems. I would say, though, band-aids can help if they move things incrementally forward, but many of our problems will take longer term planning and execution that will go beyond the terms of office of those making the decisions. This occurs in business as well as governments. The businesses who are publicly traded must meet analysts expectations on a quarterly basis. Think of how many times you have seen a business do better, but miss expectations and are crucified. So, it is not uncommon for businesses to forego longer term solutions that are not “accretive” or additive to short-term earnings.

Clearly, the same holds true in governments whether they are in the US or abroad. In these partisan days, we have too many people kicking the can down the road. They won’t take necessary action during times of prosperity and have predictable problems grow and must be resolved during times of economic strife. They did not learn their bible lessons from Joseph who had a dream that his Egyptian captors should save grain from the seven years of fortune, as seven years of famine would follow.

In “Built to Last,” the 18 companies studied dwarfed the performance over time of that of their best competitors.  They did not just dwarf the industry average performance; they significantly outperformed some very good companies. There were several lessons learned from these companies that formed the “successful habits” presented in the book. A brief review of these habits and some analogies follow:

Build a clock, don’t just tell time

These organizations were built from the outset to do more than just one thing. In fact, some of the companies failed at their first idea. Yet, they built a framework to develop new ideas and concepts. This is needed in government as well as business and non-profit organizations. What is the framework to plan and execute our strategies? In the US, this framework for future strategy has to be done in a thoughtful, non-partisan manner. Otherwise, we all will fail.

Be more than profits

These companies are all good community citizens. They recognize that for their business to flourish, their communities must be vibrant and take care of those less fortunate. This helps their customers and employees. It shows this is a great place to work. It also helps their shareholders, as the performance numbers are powerful. In the book it highlights how Dow Chemical survived one the worst chemical spill disasters in India, in part because they were a good community citizen. People knew the company was mortified by this tragedy and worked with them to rebound. Contrast this to the company whose coal-miners were killed in West Virginia two years ago. This company had a long history of trying to usurp the law and had a trail of audit issues for safety violations.

While we do need to reward and promote success, we have to be more than profits. Paraphrasing Gandhi, a community’s greatness is measured in how it takes care of its less fortunate. We have to help those in need climb the ladder. Otherwise, we will end up with the haves and have-nots. Having seen the “Hunger Games” last night, it is not unlike some dictatorial cultures where those that have do well and those that do not live in poverty. We have places like that on Earth today and our economic disparity in our own country is rather disgraceful for a free country.

Preserve the core but stimulate progress

These companies had enviable track records of success and had a core set of businesses. Yet, they all looked to grow. They realized to survive they had to progress, to make things more efficiently, more effectively and seek new avenues for growth. Our country has an enviable construct of government. It bothers me greatly when people want to mess with that construct. That is our core. Yet, we do need to work to define what is truly needed and develop a longer term plan for progress. We have added tools (laws, regulations, bureaucracies) over time to help us progress, so we need to review these and make sure they are still effective. Where our tools are outdated, redundant or less effective, we should refine them to promote progress. But, we need to preserve the core.

Set Big Hairy Audacious Goals (BHAGS)

Many people have heard or used this term, but don’t know where it came from. These companies have been successful because they set bold goals or BHAGs. One of the boldest goals noted in the book is that of John F. Kennedy when he declared at his inauguration that America would put a man on the moon by the end of the decade.  At the time, America had seen several launch failures, not unlike the recent North Korean missile failure. So, it was indeed a BHAG. And, Neil Armstrong walked on the moon in July, 1969. We need more of this in business and government. While the President has declared and set mpg standards for cars, something like we will make America’s energy production entirely green by 2050 would be a BHAG I think we should strive for. To do this would require a lot of planning, industry support and buy-in and execution.

Cult-like Cultures

One of the more interesting habits was this one on cult-like cultures. They cited the customer service focus of Nordstrom and how the customer came before the shareholder. Their mantra is if we take care of the customer, the shareholders will make more money. They actually inverted the pyramid structure, putting the customer at the top.  New employees would need to adopt this or leave. Other companies had similar culture issues. Equating this to our country, Americans believe fervently in freedoms. They also believe in fairness. So, when things begin to look unfair, Americans will act. That is our cult-like culture. Yet, we need our community conscious leaders to let us know when things are becoming unfair.

Try a lot of stuff and keep what works

The successful companies are constantly trying new ideas. Sometimes they fail. It notes the example of Texas Instruments who used to be a darling of Wall Street. Back in the 1970’s, they had a leadership group that would actually publicly humiliate you for perceived dumb ideas. Guess what happened? Idea creation went to zero and TI fell by the wayside. In an another example, I read where a CEO made a $10 million mistake on a new venture. The Chairman of the Board called him in and instead of telling him he was fired, congratulated him on trying something new. That is why he had hired him. This is an interesting converse to the TI story.

In today’s world, I hate to see when people are unfairly punished for failures, real or perceived. We are human and we mess up. We make decisions based on the best information available.  I would want to understand why things failed.

Good enough never is

I switched the order of the chapters as I see a lot in this chapter with the above.  These companies never rested on their laurels. They always said this is good, but we could be or do it better. They never are satisfied with good enough. They strived to be more. This is one of the geniuses of Steve Jobs. He never was satisfied with good enough. He was quite adamant and even an asshole about it. Yet, those who worked with him saw his vision come true time and time again. There were many times when he could have let an inferior effort get to the market place, but he was enamored with the art and elegance of the product. He wanted the Mac to look good on the inside as well as the outside. He wanted the walls of the factory to be painted white as it shows the dirt and had to be cleaned more. He wanted the impression that if we care so much about cleanliness, we really care about our products.

Home grown management

This habit was equally amazing to read about. I will cite these numbers incorrectly, but out of the 500 or so leaders these 18 companies had over time, 495 of them came from within. Meaning these companies promoted recognizable leaders from their own ranks. This went against a preconceived notion. In actuality, promoted leaders were recognized for their success as natural transitions, their promotion opened other promotions which led to better career-pathing and the companies benefited from the intrinsic knowledge of how to get things done in the company, whose counsel to seek out and whose to avoid.

My old company made the mistake of hiring outside leadership several times in the last eight years. Each time, the leaders were eventually fired. It became a revolving door. Each time the leaders would try ideas that had been tried before and failed in this company. Several times decisions were made and announced and the employees knew the day of the announcement that the decision was poor. They would inevitably not know who to trust, so they would bring in new leaders from outside. As these folks were not known commodities, the mistakes would be magnified. And, the good internal candidates would leave creating a greater void.

New blood is good when effectively used. A company needs new ideas. Yet, it cannot throw out what makes them successful with the bath water. Our country needs leaders of all types. We cannot have only new leaders who have never governed before. And, we cannot just rely on leaders who have only governed.  We need people who know how to get things done who know others in other areas of government. Yet, we do need new ideas as well.

If you have not read this book, I would encourage you to do so. There are good lessons for many types of governance. The businesses and governments who think long term and embrace these successful habits will flourish. And, so will we as citizens, customers, shareholders and employees.

Leadership is missing – here are key reasons why

I have written often about the dearth of leadership, not just in the US, but worldwide. It is so concerning, I often go out of my way to use the phrase about someone “in a leadership position.” I do this as I cannot bring myself to call an incumbent who defames the role on a daily basis “a leader.”

I ran across a short and simple quote that popped up in my Linked In feed.

The first rule of leadership: put your mission above your ego.

The second rule of leadership: if you don’t care about your people, they won’t care about your mission.

The third rule of leadership: if someone has to tell you the first two rules, you are not ready to lead yet.

Adam Grant on Linked In.

Think of these rules of leadership. Everyone has an ego and those who want to be leaders have even larger ones. When they put themselves above their mission, that is not leadership. That is self-serving.

Leaders also lead people. And, no matter how much they beat on their chest, they cannot serve people alone, so they need help. If incumbents treat people on their team poorly, these people will not be able to help whom the incumbents lead. It is that simple.

Too many of our politicians worry more about keeping their job, than doing their job. Too many business leaders do the same thing. For publicly traded companies, it is a key reason they focus so much on making their quarterly numbers. Rather than manage for longer horizons, they manage quarter to quarter.

I have used many other quotes about leadership that say the above in different ways. But, just focusing on the second rule, take care of your people – they see it. If you do not, they will vote with their feet.

“Before his death, legendary Fed chief Paul Volcker issued one last warning to the US”

The following reprint of an article is worth the quick read. It is from a very reputable source, retired Federal Reserve chair Paul Volcker, who passed away this week. An article with the above title was written bu Joseph Zeballos-Roig in Business Insider about Paul Volcker and a caution he left for us all. It speaks volumes.

Per Zeballos-Roig, “Volcker condemned President Trump’s efforts – without naming him – to pressure the Federal Reserve to lower interest rates in an attempt to juice US economic growth, already undergoing its longest sustained expansion.

‘Not since just after the second world war have we seen a president so openly seek to dictate policy to the Fed. That is a matter of great concern, given that the central bank is one of our key governmental institutions, carefully designed to be free of purely partisan attacks,’ the former Fed chairman wrote.

Volcker said he trusted the members of the Fed will fend off any attempts to interfere in its monetary policy decisionmaking so it may act ‘free of partisan political purposes.’

Trump has repeatedly assailed Jerome Powell, the current Fed chair, for not cutting rates. Back in August, Trump called Powell an ‘enemy’ of the United States comparable to China, the Washington Post reported.

The former Fed chair painted a very bleak portrait of the nation’s political environment, noting ‘forces’ are rolling back environmental and other protections considered emblematic of American democracy.

‘Increasingly, by design or not, there appears to be a movement to undermine Americans’ faith in our government and its policies and institutions,’ Volcker wrote.

‘We’ve moved well beyond former president Ronald Reagan’s credo that ‘government is the problem,’ with its aim of reversing decades of federal expansion.’

He went on: ‘Today we see something very different and far more sinister. Nihilistic forces are dismantling policies to protect our air, water, and climate. And they seek to discredit the pillars of our democracy: voting rights and fair elections, the rule of law, the free press, the separation of powers, the belief in science, and the concept of truth itself.’

Volcker was best-known for waging a campaign to subdue inflation in the late 1970s and early 1980s as Fed chairman. He later sought to keep regulations in place to oversee the financial industry and became an advocate for financial reform.

The former Fed leader later chaired Obama’s Council of Economic Advisory Board after the banking system teetered on the edge of total collapse in 2008.”

Echoes of past blogposts

If you have been blogging for a few years, you likely witness some of your older blogposts resurfacing with more interest. In my case, it is not uncommon for some older posts to be more widely read than at the time they were written.

Now, I am not referring to those blogposts that have consistently drawn attention. The ones that pop-up in your most-viewed list after being long absent are to what I am referring. Here are a few late-blossomers that are getting more attention:

“Don’t laugh at me” written in September, 2013 – This one resurfacing is less a surprise as I think people are alarmed by the divisiveness in America and western democracies. The Peter, Paul and Mary songs resonates saying quietly and pleafully “we are all the same.” It’s message is place yourself in the shoes of the person who is being ridiculed. At some point, each of us has been ostracized. Here is a link.

https://musingsofanoldfart.wordpress.com/2013/09/30/dont-laugh-at-me/

“Who is Paul O’Neill and why should his opinions matter?” written in March, 2013 – This one is more of a surprise, given the relative anonymity of Paul O’Neill. Yet, I think people are craving leadership with the dearth of such in the two largest English speaking democracies. O’Neill is a quiet, studious and effective leader who deserves notoriety for his ability to observe what is wrong and how to arrive at solutions. Plus, it shows great leaders facilitate communications up and down organizations as the best ideas often come from those closest to the action. Here is a link.

https://musingsofanoldfart.wordpress.com/2013/03/20/who-is-paul-oneill-and-why-should-his-opinions-matter/

If you do not remember these posts or were not following my blog back in 2013, please check them out. I am delighted they are getting a little more interest given their subject matter. Also, please share a link to similar posts of yours. I would love to revisit them or read them for the first time.

Fiddling with Tinkertoys

George Will, a long-time conservative voice, penned an editorial called “Trade war shows the reality of ‘America First’ in action” that should be required reading. Three quotes from the article will give the gist of his concerns. The title of this post will reveal itself in the final quote.

“The Wall Street Journal reports that US farmers are purchasing fewer farm machines – (John) Deere’s profits from this business are down 24% from a year ago – partly because farmers’ incomes have suffered as a result of the tit-for-tat trade spat that Trump started with China…Some good news for John Deere might be ominous news for US farmers: Equipment sales to Brazil and Argentina are up, perhaps partly because China has increased purchases from those nations’ farmers, who are American farmers’ competitors.”

“The Financial Times recalls that ‘hundreds of US companies and trade associations said in a joint communique in June that the proposed duties would cause the loss of two million jobs and reduce US economic output by 1%.’ ….Hence, Trump’s tariffs make US goods more expensive, thereby dampening US consumer activity.”

The final quote contrasts the up and down tariffs to a similar fiddling in 1937-38 which caused a “recession within (the) Depression.” During that period, capital went on strike flinching from the unknown. Will notes the similarity to Trump’s trade war, “They fiddle with global supply chains, as though the world economy is a Tinkertoy that they can pull apart and reassemble with impunity.”

In short, when the supply and sales chains  are unsettled, companies find other avenues. Using the first quote as an example, China started buying product from farmers in other countries like Brazil and Argentina while “cancelling the purchase of almost 500,000 metric tons of soybeans from US farmers.”

Tariffs are unwieldy tools that have much greater consequences than intended. Using a tennis analogy, they are an unforced error. The tariffs have forced companies to find other options. And, when the tariffs are waived at some point, it is hard to put those Tinkertoys back in the same slots.

There is no such thing

Having lived sixty years, you do glean experiences from the important to the pedestrian. Here are a few thoughts to ponder.

– there is no such thing as a squirrel-proof bird feeder; the inventive four legged creatures will find a way. We have tried many feeders and watching the squirrels shows they are the best safecrackers around.

– there is no such thing as an honest autocrat; power corrupts, absolute power makes you protective – the truth is a commodity. Beware of those who want more autocratic power. Turkey’s parliament gave Erdogan more power – that was not the best of moves in any country, regardless of the perceived veracity of the leader.

– there is no such thing an unbigoted person; we all have our prejudices, the key is to recognize them and listen to people who do not look, worship, believe, or love like you. A black man named Daryl Davis has talked over 200 KKK members into leaving the KKK and giving him their robes. He does it by asking them questions and starting a conversation.

– there is no such thing as clean coal; it can be made cleaner, but it will pollute the environment and humans in its acquisition, transport, burning and its residual ash storage. Fortunately, we are passed the tipping point on coal energy’s demise with renewable energy surpassing coal energy in the US and Germany this year.

– there is no such thing as an apolitical politician; some are less political than others, but be wary of fear-mongers and name-callers. The inability to make a logical, fact based argument is a tell-tale sign. Ask many why questions to ferret out the truthtellers. My favorite quote is from former Arizona Senator Jon Kyl, when he was caught in a lie by a reporter who asked questions. The Senator said in paraphrase you mistake my words with the truth (in other words, it is your fault I am lying).

– there is no such thing as a redeemable domestic violence abuser (there are very few success stories) as it is power based. If your significant other is beating you, leave. He will not change. One-third of the homeless families an agency I supported helped were due to domestic violence. A friend said none of his six siblings knew their sister was being beaten by her husband until he killed her. He also beat their kids by lifting them up and bashing their heads into the ceiling. Summon the courage, find an advocate and leave. He…will…not…change.

– there is no such thing as a free award; there is always a catch or a cost. Be wary of the more strident offers as it is indicative of a better deal for the one making the offer. As the cartoon character Ziggy once said, the nicer the presentation, the worse the message. There is a correlation between the marketer’s zeal  and the size of the profit potential. Stores where salespeople are on commission greet you at the door, e.g. while salaried sales people will greet you later.

I hope those in the US have a safe and enjoyable holiday. Stay hydrated. For those abroad, thanks for bearing with us as we sort our mess of politics and I wish you the best in your endeavors.

 

Don’t be difficult to work with

A lesson I have witnessed often is the more difficult you make it to work with you, people will find other resources. Challenging employees better be good at what they do or they may be shown the door or encouraged to leave. If a company makes it difficult to work with them, buyers from and sellers to the company, will seek other options.

Here are a few real examples:

– A company known for shopping for services annually eventually ran out of bidders because the cost of doing business became too high (one company would just throw their Request For Proposal in the trash can). Sellers and buyers who promote relationships have more fruitful long term experiences.

– When Master Service Agreements became commonplace, the attorneys in our headquarters were as difficult to work with as attorneys at some of our clients. We lost a $1 million sale on an idea we raised and the client loved because of our legal obstinance. The second bidder got the work on our idea. That hurt.

– An employee of ours could never be satisfied and complained often. After she complained in my office for the tenth time about how her last employer did better at something, I said to her “We are obviously not meeting your needs. You are doing good work, but why don’t you look elsewhere.” She did and left. What she did not know is we had a continual growth mindset, so we were always talking with people. Her replacement was one of the best project managers I ever worked and she was a very congenial person and eventually an effective manager.

– A fellow consultant had an arduous client who was always asking for added scope services, which he often refused to pay for. After many months of this, the client called our CEO to complain. My colleague pulled up three competing consultants contact information and provided them to this client. In essence, he fired the client. He said it was one of the best decisions he ever made.

A US farmer noted on PBS Newshour yesterday, we cannot just turn off the tariff spigot and start the pipeline again. His buyers have found other options. As a business person, I have noticed this president fails to appreciate what it takes to get things done. We have witnessed this repeatedly in rash mandates that have people (even his own) scurrying. That is poor leadership and worse management.

Do you have any examples?

Freezing executive pay opens up money for workers

An article in The Guardian earlier this week caught my eye. CareCentrix CEO John Driscoll penned an editorial “We froze the salaries of 20 executives – and it improved the lives of 500 employees.” Driscoll took the reins of this struggling healthcare company, whose financial troubles included a significant amount of staff turnover.

Driscoll worked with his leadership team and Human Resources to make a number of changes, but he felt that was insufficient to right the ship. So, he made a decision to find more money to keep workers who were struggling and working multiple jobs.

As Driscoll wrote in The Guardian, “What that meant for our company was that if we just froze the wages of our most senior team – less than 20 executives – we could radically increase the wages and improve the lives of nearly 500 of our teammates.

The conversation with our executives was straightforward. We were in the midst of a turnaround. We were demanding much from every corner of the company. Small financial sacrifices from those at the top could be life changing for those at the bottom of our wage scale. We needed to do it to build a real sense of Team CareCentrix. They agreed. With joy, we announced in January 2015 that our minimum base pay for employees would go up to $34,000, or the equivalent of $15 per hour.

Raising wages in the midst of a business turnaround was not easy. We needed our executive team to buy into a vision of business success where every employee had a fair shot at success. It worked.

Our business has tripled over the past five years. Our minimum wage is now approaching $16.50 per hour and last year we broadened profit sharing to all levels of the company.”

This caught my attention as the US far exceeds other nations in the ratio of CEO pay to average worker pay and has for some time. Having been a former Compensation & Benefits manager, manager of people and consultant, executive pay is much more upwardly elastic than that of average workers. Average worker pay has a lid placed on it through the budget process – which often overemphasizes past, current or expected troubles. Also, downsizing at the time of annual raises facilitates the lowering trend on average pay increases as folks who would have received little or no increase are let go – so folks that remain receive suppressed increases to make the percent increase in the budget work.

What I like about this CareCentrix example is the thought process and solicited buy-in from rhe executives. Yet, it need not take a burning platform to make needed change. There is a productivity cost to turnover that impacts the bottom line due to constant churning, replacement, recruitment and training of staff. Keeping more people longer is accretive to profits.

Some larger national companies have recognized this and raised their floor pay levels – Bank of America, Wells Fargo, and Walmart are in this group. So, thoughtful discussions are needed, in my view, around these issues irrespective of or along with governmental imposition on increased minimum wages.

A little bird and a big crow

While at a stop light, I saw a flying metaphor. A little bird (about three inches in height) chased off a big crow who is closer to a foot in height. The little bird chased the bigger one for well over 100 feet, most likely a mother defending her nest from an egg stealer.

I feel the big crow is analgous to the America First mindset, where we are devaluing our relationships and bullying people into action. Now, some might say we have always thrown our weight around. Yet, our allies are reacting to being treated worse with tariffs and talk of more, our pulling out of multilateral or global agreements, our denigrating respected multinational groups, and telling countries who they can and cannot do business with.

The little bird represents individual countries, businesses and farmers who are doing what they must to perpetuate commerce. When certain avenues are closed or made difficult or costly to use, they have to find new suppliers or customers. They are chasing away the impact of the crow. It is a simple equation – the more difficult an entity becomes to deal with, others will seek other options. Plus, the more difficult we make it for all transactions, then fewer transactions will be made and global trade will suffer.

It is reported the President reached out to former President Jimmy Carter. The reason is Trump’s having concern over an ascendant China. This was happening any way, facilitated by actual long term planning by China. Yet, what Trump fails to realize is his role in greasing the skids. By retrenching from our position of strength, pulling out of a Trans-Pacific trade deal meant to even the playing field with China, he has allowed China to fill the void. By telling countries they will face tariffs if they deal with Cuba and Iran, we are greasing the skids for China to fill the void.

These little birds have to eat. They will look out for their best interests. If they must acquiesesce to the big crow, those actions will be remembered, if they are needed in the future by the crow. It should be noted,  a foreign diplomat said two years ago, the strength of the US is its allied relationships – failing to nurture them comes at a cost.

And, that Chinese bird is getting even bigger and faster than this old crow.

Capitalism and socialism coexists

On more than one occasion, I have seen letters to the editor speak of setting up beachheads in the coming election around capitalism vs. socialism. To me, this is a name-calling gimmick to persuade a voter who does not do much homework. Voters that are prone to listen to name-calling as debate will buy into this logic time and again. The irony in this debate is the United States’ economy is a blend of “fettered” capitalism with socialistic underpinnings. So, both co-exist here.

For readers in the either camp, this observation probably surprises them, especially those who are gung-ho capitalists. But, the word in quotes is also important as we do not have unfettered capitalism. If we did, the US President would have run out of money long ago with his many bankruptcies. I believe in capitalism as well, but we need to understand why we ventured down the path of the socialistic underpinnings.

These underpinnings spoke to a nation that was in a great depression and who seemingly got lost in poverty later on. Social security is a low-income weighted pension, disability and survivor benefit program that is funded equally by employers and individuals. To determine the base level benefit, 90% of average wages are used for the earlier wages then added to 32% of the next tier of wages which are added to 15% of the highest wages up to a limit.

In the 1960s, LBJ’s “War on Poverty” added Medicare and Medicaid to the mix, with Medicare helping retirees and Medicaid focusing on people in poverty. Then, we can mix equal measures of unemployment benefits, workers’ compensation and food stamps which are now called SNAP benefits. Each of these programs are forms of “social insurance” benefits. That is socialism designed to keep people fed, housed and protected.

Taking this a step further, utilities are so needed to our communities, they are either co-ops or fettered capitalistic models where rate increases must get approved by a state governing board. Companies like Duke Energy and Con-Ed must get permission before they change their rates. For the co-op model, the customers own the business.

But, the word “fettered” enters into the mix on other businesses as well. To prevent monopolies, insider trading, interlocking boards, collusion, the misuse of insider knowledge by investors, etc. rules are set up to provide governors on capitalism. Then, there is that bankruptcy thing, where a business or person can claim bankruptcy to pay debtors what they can and restart. I use the President as an example, but his experience is a good one, as he filed for bankruptcy six times on various investments.

I want people to think about our country in this context. We want people to earn their keep and be fully functioning tax paying citizens. Yet, we have programs in place to keep them out of the ditch. As we considering changes to programs, we should consider what they are accomplishing and how changes could make them more effective. And, we must understand that things must be paid for, so how do we get the best return on the investment into those stated goals?

For those that have followed my blog for some time, you know I have been involved for many years in helping homeless working families find a path back to self-sustainability. We help the homeless climb a ladder, but they climb it. Yet, we are also successful in keeping people housed on their own after two years of leaving our program because we measure things and make improvements. The ultimate goal is self-sustainability, so we measure how we can be the best financial stewards toward helping people achieve that purpose.

We need social underpinnings to help people be fed, housed and protected. Some need to be temporary in nature, while others are longer term like Medicare and Social Security. There is a cost-benefit to these equations, but we should understand that we have poverty problem in our country. We must also understand technology advances will continue to change the paradigm on employment as it has throughout the industrial age placing additional pressures to even more wage earners. Not providing ladders out of poverty or ways to avoid it would be a bad path to follow for our country.