Show me the money!

You wouldn’t think it would be too hard to sort out whether this is no small business lending because there is no capital … or because small businesses aren’t asking. There’s a lot here so keep reading if you want to gain a better understanding of what’s REALLY going on.
The Wall Street Journal recently carried an article, Big Bank’s Lending Programs Yielding Few Results So Far, which summarizes efforts by big banks like Goldman Sachs Group, Citigroup and Bank of America, under pressure from the Obama Administration, to launch programs to increase lending to entrepreneurs. Most of these programs are Community Development Financial Institutions (CDFI’s) – oh, great, another financial algorithm – which primarily lend to small businesses in low income areas – a worthy program but hardly a program targeted at the broad small business community.
Three days earlier in, A Credit Crunch That Lingers, the WSJ pointed out that only half of small businesses that tried to borrow last year got what they needed according to (more…)

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Empower to the People!

I'm a big believer in the Ritz Carlton's program of providing a $2,000 allowance to empower their employees to enhance the "Guest Experience" ... and I think it's noteworthy that the Cadillac division of General Motors is applying this concept to strengthen their relationship with potential Cadillac customers. It's not…

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Change is exhausting!

Many of us accept that the only thing that doesn’t change is change itself. Our world is buffeted on all sides by change … kids grow up, technology abounds, friends move away, the list is endless.
Dan Heath at Fast Company describes a recent experience with subjects who were offered either chocolate chip cookies … or radishes. (If you’ve even been cut from a sports team, you’ll know how the radishes felt!). You can also see a short video there explaining the experiment. (more…)

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It’s not the person

Fast Company recently carried a brief piece which described how what appears to be a personal shortcoming may obfuscate a problem situation. In psychology, they call it the Fundamental Attribution Error but the example they used is particularly poignant for many situations we've all seen.Have you experienced situations that seemed…

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Do we need a Federal Escrow Fund?

I’m sure this will be a popular post … but set aside your emotions for a moment about the BP disaster… and consider the insistence by the federal government that an independent agency take over the claims resulting from the oil spill,  purportedly overriding BP’s authority, and that of the other 12 entities on board the oil platform, in those matters. The suggested prototype is the independent examiner appointed to handle claims resulting from the events of 9/11 … but recognize that those events were NOT directly caused by a legal entity with rights and responsibilities and shareholders, or that was subject to a myriad of legitimate national and international governing bodies.
Who should decide how much to pay whom for oil spill claims?
What I wonder is whether BP … in most cases, any corporation … shouldn’t have some rights and control over the claims paid from funds ultimately belonging to their shareholders? Take special note that in BPs case, a powerful example of the global economy in which we live, 18 million British citizens own stock in BP, many of them retirees.
Emotions are running high and many people would prefer to see BP hanging from the nearest rafter. At the same time, shouldn’t a company be allowed to settle claims in a fair and reasonable manner? There are plenty of ways in which individuals and organizations can seek redress if they disagree on the results, either through appeal or in claims or civil courts if a reasonable settlement cannot be made.
What paperwork? (more…)

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