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Teri Bernstein, MBA, CPA has been teaching full time in the Business Department of Santa Monica College since 1985.  Prior to that, she worked in Internal Audit and Special Financial Projects for the 1984 Los Angeles Olympics, CBS, Inc., and Coopers & Lybrand (which is now part of PricewaterhouseCoopers).  She attended the University of Michigan and Wayne State University.


  • Productivity issues that hurt employers

    image from cbsnews.com According to the first quarter report from the Bureau of Labor Statistics, unit labor costs increased, as they have over the last four quarters. When unit labor costs increase, it means that productivity has fallen per dollar paid. This will come as no surprise to those of us who have found ourselves wasting time when we should be working. YouTube, anyone? Pinterest? Of course, workplace distractions have existed in other forms for as long as workers have sat at a desk. But social networking is not the only drain on productivity for businesses. Here are some of the other ways that employees "cost their companies billions": Turnover: it costs and average of $3,500 to hire and train an $8/hr worker. Workers under high stress can cost employers 40% more (lost productivity, worker's comp claims, health care costs, ramifications of "shortcuts"). Workplace bullying can result in turnover, litigation and related costs ( workdoctor.com ). Personal behaviors (substance abuse, including over-eating) can lead to lateness, absenteeism, and increased on-the-job accidents. Mental and physical health issues related to grief or domestic violence have huge productivity costs. Thievery and fraud--usually committed by those who have not committed other crimes--result in almost half of the inventory shrinkage experienced by employers. These problems could certainly explain why employers resist hiring! Sources: " 14 Surprising Ways Employees Cost Their Companies Billions in the Workplace ," by Eric Goldschein and Kim Bhasin, The Business Insider, November 29, 2011. " First Quarter 2013, Preliminary " Bureau of Labor Statistics, May 2, 2013. Follow up: Has your employer absorbed any of the costs described for you? Or for your family or friends? How would you handle these issues if you were in charge? If you have had any job for several years--or you know someone else who has--how has productivity INCREASED over the last decade? Which of the "costs" delineated above arise from that increase in productivity?

  • Stop doing these 8 things for a better work day

    Increasing productivity and managing interfaces are obviously business goals in manufacturing operations and in service businesses with billable hours. But productivity and interpersonal interactions in an office setting are vitally important to an individual's career growth as well. Here are some suggestions from a recent column from Inc. magazine's website: Don't check your smartphone while you are having a conversation with someone. Pay attention. Be present. Let the other person know they are important. Don't multi-task during a meeting--treat the meeting with importance. Don't think about celebrities others who have no impact on your life...the people who actually ARE in your life are the ones who will help you grow and succeed. Don't let your phone interrupt you with notifications of every email, tweet and message. You be in charge, and check your phone periodically when it is convenient for you. Don't dwell on the past--learn from your mistakes and then take a breath and turn your thoughts to something else if your brain tries to start re-writing history, or makes you tense by dwelling on errors. " The past is just training ." Don't wait till you are certain of success...just act with the intention of doing your best. You don't want to miss opportunities. Don't talk about anyone behind their back. Don't say "Yes" when you mean "No." It's easier if you also remember this saying as well: " No" is a complete sentence. Don't try to convince yourself by giving excuses to someone else. It might be hard to say "No" but it is even harder to live through all the moments that result from saying "Yes" to something that doesn't work for you. Source: " 8 things you should NOT do every day, " Jeff Haden, Inc.com , April 8, 2013. Follow up: Which of these suggestions might you consider? What additional "bad habits" are hampering you at work or school on a daily basis?

  • Confidence: skill or liability? Crowd-sourcing may have answers...

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] "Real Beauty." Dove , a Unilever brand, has an advertising history of encouraging normal-looking women to see themselves as beautiful. This video highlights what David Brooks, in a NYT editorial, perceived as a confidence issue for women. He decided to use "crowd-sourcing" as a survey vehicle. He encouraged readers to email confidence@nytimes.com with the answers to these questions: A generation after the feminist revolution, are women still, on average, less confident than men? A re women still more likely to flow into different domains in your organization? Do we undervalue the talent for self-criticism the women display in that video? The common phrase that came to my mind when I first saw this was "Reality check!" Neither the men nor the women had an accurate perception of their personal attractiveness. In general, the men saw themselves more positively than a third party saw them; women saw themselves more negatively. Is the assertiveness that comes with a more positive self-image a business asset? In my experience, it is better to have perceptions that are "right-sized" for the situation. Nevertheless, I am curious about the experience of others. I look forward to reading the results of Mr. Brooks' crowd-sourcing experiment. Source: " The Confidence Questions ," by David Brooks, New York Times , April 23, 2013. Follow up: What do you think of Dove's video? How would you feel if you looked like one of the women portrayed as the "negative picture"? How might this affect Dove's intention? What marketing technique is Dove employing by shooting and publicizing this video? What do you think will be the results of David Brooks' crowd-sourcing sociology experiment? What are your answers?

  • Anti-fragility: thriving in chaos

    image by Neil Houghton; related article linked below Nassim Nicholas Taleb is a big thinker. His latest book is about the concept of "antifragility," which he defines first as being the opposite of fragile. But his thesis is that the condition of antifragility is beyond resilient and strong in the face of adversity--it is a response in which things actually improve when the environment is chaotic . Taleb's approach uses three responses to disordered situations: fragile, robust and antifragile. Neil Houghton has used a four-dimensional approach to understanding responses, as illustrated in the grid above. One way to extract meaning from the chart is to locate points on the red tetrad--"stable" and "robust" for example. One consequence of this combination of responses is being "rigid." On the left side of the chart, at points on the green tetrad, you can see "difference" and "coherence." The possible outcome of these states of being is "emergence." I think that "emergence" is one of the positive outcomes that Taleb was imagining in his theoretical approach (though many reviewers object to the tone and manner in which he makes his point). I like these approaches toward understanding chaotic situations, because they expand the palette of choices individuals perceive as responses, and they suggest possible outcomes. The axiomatic premise is reality-based: Disorder will arise...and we don't have to be afraid of it. " Ice-breakers " at parties or conferences increase people's stress initially, but often create camaraderie and connection soon thereafter. Dumping a messy drawer onto a table is a good way to start to improve it. Life-threatening disease can cause individuals get into better shape than ever. In some businesses, " zero-based budgeting " can lead to more profitability after a period of severe disruption. Nevertheless, there are many situations where a calm and orderly approach produces the best results. Sources: " You are all soft! Embrace Chaos! ," by Michiko Kakutani, New York Times , December 12, 2012. " Antifragility and the future ," by Neil Houghton, wordpress.com, December 30, 2012. Follow up: If you are a business student, do you think that you are being prepared well for a business life where successful individuals must thrive in chaos? What courses, skills and activities have you participated in that have enhanced your ability to stay calm and think under pressure? What situations, in your experience, might gain from disorder? What situations are likely to suffer from disorder?

  • Consumer relations: Top ten complaints

    image from www.funnyjunk.com Complaints. We all have experienced unfair treatment or poor products. Sometimes the situations are so egregious that consumers take their complaints to a higher level. The Federal Trade Commission (FTC) keeps track of the complaints it receives involving businesses. Last year, the FTC received over two million complaints, and they recently published the top ten categories into which those complaints fell: Identity Theft Debt collection Banks and Lenders Shop-at-Home and Catalog Sales Prizes, Sweepstakes and Lotteries Impostor Scams Internet Services Auto-Related Complaints Telephone and Mobile Services Credit Cards Some of these complaints involve real fraud, but some result from poor communication and unskillful customer relations. Dealing with complaints that escalate can be costly for businesses...and in the current environment of immediate social networking, business mistakes can be instantly (and unilaterally) publicized. Businesses can also adopt a pro-active approach to customer relations that is positive and effective. Real-life complaint outcomes are delineated in columns written by The Haggler , David Segal, published in the New York Times . These tell the stories of consumer complaints that have gone unresolved, and the various strategies that are employed--with the added pressure of a published outcome--to achieve a fair outcome for both sides. The world is not perfect. Mistakes happen. Miscommunications can lead to consumer disappointment. How businesses handle these imperfections may be more important than what actually happens. No legitimate business wants a complaint to escalate to the FTC. Source: " Top Ten Consumer Complaint Categories ," source: Federal Trade Commission, published in Insurance Journal , March 29, 2013. Follow up: What management techniques can be used to avoid mistakes before they happen? What kind of "complaint department" does your business have? If you are going to school, what are the avenues for complaints about grades, instructors, or worse? How well does the complaint management system work? Describe your experience with complaining to a business, or filing an official complaint with a government agency. Were you successful? What techniques worked well and what failed?

  • Human frailty foils risk management models

    image from www.hu-tech.co.uk Risk management calculations really ARE "rocket science." The discipline attempts to quantify risks in workplace and product safety, as well as manage assets over the long term to provide employee benefits and adequate capital for growth or periods of economic stagnation. The portion of the risk management department that involves workplace safety is usually well-attuned to the human factors that can make the best of plans go haywire. But on the finance side, the investment banking models that use algorithms to predict world markets, economic trends and changing demographics can be very esoteric, very math-oriented and very out-of-touch with human factors that can derail the models. John Breit , a Columbia-trained physicist, has been a risk manager in the investment banking mode for 25 years. He was part of the wave of mathematical modelling professionals that displaced, to some degree, the "old boys' network" that ran the big investment firms prior to the 1980's. According to some observers, the mathematical modelling and the "smart guys' hubris " is what has caused the financial debacles since 2000. Breit observed that something else was going on. He saw that the mathematical models--which the traders and executives did not understand--were used to hide the risk and prevent the traders and executives from questioning the models and providing information feedback from their "human intelligence" about what was happening in the markets. Breit thinks that the regulatory and compliance models that require managers to do check of boxes on forms prevents or at least discourages them from providing substantive feedback about growing mistrust or human "gut feelings." Breit feels that the emphasis on avoiding being blamed is preventing open discussions and brainstorming possible risks. So traders feel isolated, but still under pressure to produce big gains, so they are vulnerable to a too-positive projection. If the details of risk management are not your cup of tea, but you still want a generalist's overview of the investment side of risk management, rent or stream the movie, Margin Call . Sources: " Uncovering the Human Factor in Risk Management Models ," by Jesse Eisinger of Propublica , via NYT Dealbook , April 3, 2013. Follow up: Are you interested in the "risk management" side of business? Research the "human resource" aspect of this service department as well as the computational aspects of the job. What are the management challenges for this area? Research the differences in risk management with respect to workplace safety and risk management with respect to asset and profitability projections. What are the uncertainties in each area? What is " VaR " ? Does it provide useful information? Why or why not, according to John Breit? If you want to investigate this topic further, consider reading The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb. [Taleb's thesis is not the same as Breit's]

  • An argument AGAINST out-sourcing

    image from chicagocreativedesign.com Double Encore is a company that is betting everything on home-grown apps. They develop for Apple (not for the android market), and they employ all their own developers. They are a Colorado-based technology company with a special relationship with Apple...and--THEY DON'T OUTSOURCE. Their policy is contrary to the industry trend. The Computer Economics Annual Outsourcing Study recently reported that information technology outsourcing was up by 23% in 2012. But Double Encore is bucking the trend. Here are some of the reasons: quality control can only be monitored in a controlled environment their office is an environment of "experience, creativity, and unwavering ambition" their commitment to their clients is based on originality--not on "knock offs" outsourcing contributes to lower salaries for engineers...which then contributes to a smaller pool of talent willing to work for sub-par salaries they've seen the poor results from their clients failed outsourced products, which have to be cleaned up Double Encore is marketing itself from this quality niche. Its policies also set the standard for its human resource management. Does it sound like a good place to work? Sources: " Why We Don't Outsource [Seriously, Stop Calling Us] ," by Emily Grossman, Double Encore Blog, March 24, 2013. Follow up: What do you think of the Double Encore idea that "Genius doesn't go on sale. It just leaves the market"? What does it mean, with respect to outsourcing policies?

  • Investors unhappy with Lululemon "transparency"

    This is what the Lululemon pants USUALLY look like... Usually, "transparency" is a quality that investors appreciate from the companies they've invested in. But a different kind of transparency has caused a serious problem for Lululemon Athletica Inc. ( LULU ), the high-end yoga-wear retailer and manufacturer. The problem? Black Luon pants had quality control problems that made them see-through. The pants were shipped at the beginning of March and pulled from the stores shortly thereafter, but because they constituted 17% of the inventory in women's pants, the effect on sales (and Lululemon's reputation) has been considerable. First quarter earnings will be even lower than expected. Shares in Lululemon have fallen 16% since the beginning of the year. Over that same period, the Standard & Poor's 500 Index is up 8.6%. Source: " Lululemon falls as pants deemed too transparent, "by Leslie Patton & Sapna Maheshwari, Bloomberg online, March 19, 2013. Follow up: What could Lululemon have done to prevent this problem? Since this is not the first quality-control problem that Lululemon has had, what actions do they need to take from the Management side? What about the Marketing side? What is the Standard & Poor's 500 Index? What information can it give an investor?

  • Time: a priceless business asset?

    image from 1000 x 1000 jackmalcolm.com Two groups of Stanford researchers have come up with different perspectives on time. Jeffrey Pfeiffer, working with Sanford DeVoe of the University of Toronto, found that: " Although it may not have been consciously done, modern management seems to have created a hedonic treadmill in which people want to trade time for money and because of thinking of time like money cannot enjoy leisure activities as much ." In other words, this "monetary view of time" makes modern workers feel more like they must always be doing things that are valuable from an objective and measurable standpoint. Internal satisfaction is not part of the equation in how time is spent, and their research shows that this is making people less satisfied...even less satisfied with their supposedly free time. Another researcher, Melanie Rudd, has taken a different perspective. Her starting point was the prevailing time pressure felt by many working adults. Her research zeroed in on a situation where this feeling of scarcity was relieved: [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] Melanie Rudd, Stanford PhD candidate, uploaded to YouTube (link below) As Ms. Rudd says, time seems to be more plentiful when a person is in a state of "awe." This positive state is comprised of these aspects: a feeling of vastness--either physical or perceptual; a desire to expand this feeling of vastness, by developing the knowledge to further understand and more deeply experience the wonder of the moment; the perception that more "slices of life" can fit into a single unit of time; a change in decision making outcomes the powerful impact of the present moment--and experiencing it to the fullest. Because many of the experiences at work are repetitive and routine, moments of "awe" at work may be few. It may be a reason people seek out the rare and the amazing YouTube video or Facebook post whenever they can. But creative managers can create awe-inspiring experiences for their work-groups. And marketers can use the decision-point created by an awe experience to influence present and future customers. Time is a finite resource, but finding ways to experience time in more meaningful and expansive ways can help individuals in the workforce as well as create ways to satisfy needs that exists in the marketplace. Sources: " How Awe Expands our Perception of Time " Melanie Rudd, YouTube , uploaded December 13, 2012, via the blog maintained by business author Daniel H. Pink , January 14, 2013. " People Now Believe That Time is Money and That is Making Everyone Unhappier ," by Max Niesen, The Business Insider , November 14, 2012. Follow up: When and where was the last time you experienced a feeling of "awe" or overwhelming wonder and appreciation? What is your relationship to time? Are you in charge? Do you feel rushed, as though you do not have enough time? How are your time management skills? Could they be improved? What is stopping you from making those improvements?

  • Meditation: a tool for developing "soft skills"

    image from ashvogue.wordpress.com Meditation was a key element of the management strategy for the Los Angeles Lakers when they were coached by Phil Jackson. But Jackson is no longer the the Lakers' coach, and the Lakers...well, I am wondering if the correlation between Jackson's coaching style and the Lakers current performance may also be due to the cause and effect of eliminating this mental portion of a practice regimen. "Meditation" and "mindfulness" are currently popular strategies for employee development and consulting. In the modern world, with all of its stress and multitasking, many businesses are finding that it is difficult to get employees to focus. Meditation practices can lead to an increased capacity to adapt to change and be resilient. Companies such as Google , Target, and General Mills have incorporated meditation into employee training. Some might think that meditation is only for Buddhists, but there is no religious component to meditation itself. There is also no "downside risk." It can't hurt. As a break from the workday, it may do more good that playing Solitaire or checking Facebook. Besides, it can help build the soft skills of resilience and calmness-under-pressure. Source: " The Lakers Meditate? " interview by Soren Gordhamer, the MBA project, May 18, 2006. " 28 day Meditation Challenge ," by Sharon Salzberg, February 1, 2013. " Mindfulness in the Corporate World: How Businesses are Incorporating the Eastern Practice ," Huffington Post, August 30, 2012; updated January 7, 2013 . " OK, Google, take a deep breath ," by Caitlin Kelly, the New York Times , April 28, 2012. Follow up: Check out the Sharon Salzberg link above and consider giving it a try. What are the seven effects of meditation on the brain and body that are delineated in the Huffington Post slideshow? Which of these matter to you and why?

  • Management issue: The Flu...

    image from www.smokymountainurgentcare.com The flu season this year is particularly debilitating. It can be tough to manage one's own personal health during flu season. But what about managing the health of those who work for you? A flu epidemic can negatively affect productivity and can ultimately have an effect on profits and on the performance evaluations of your department. In the "soft skills" area of human resource management--personal health care can have implications for business. A manager needs to be respectful of personal boundaries and cultural differences with respect to health practices, but also has a responsibility to maintain a productive and professional environment. Taking a pro-active stand to support an employee taking a "sick day" at the beginning of an illness is one option. Newer employees need to know what behaviors are supported by the corporation toward maintaining a disease-free work environment. It might even be helpful, if approved by those in the chain of command, to post a document like this one: image from everydayreadiness.com In any event, a manager should be mindful of the messages being given to employees with respect to expectations that they "work sick" or "show up at any cost." Be well ! Source: " Do You Have A Plan For Flu Season? " by Laura Vanderkam, CBS News MoneyWatch, January 25, 2013. Follow up: Did you get a flu shot this year? Why or why not? How many times per year do you get sick? What is your personal strategy in dealing with your responsibilities when you are ill? Do you take a pro-active approach? Do you crawl into bed and forget everything? How do others around you react to illness (instructors, bosses, family members, friends)? How does their reaction to their own illnesses and the illnesses of others affect you and your strategies for dealing with illness?

  • Happiness is the precursor--not the result--of success

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] website linked below at "Sources" Shawn Achor has studied happiness, and he has found that a person's external world is only a 10% predictor of their success and happiness. A better predictor, according to his research and the research of other brain scientists, is the way one's brain processes the world--whether it is through a positive or negative filter. Achor quoted other statistics relevant to his research into "positive psychology": 75% of job success is predicted not by IQ, but by "optimism levels, your social support, and your ability to see stress as a challenge instead of a threat." A positive brain is 37% better at sales. A doctor with a positive attitude is 19% faster and more accurate with diagnoses. A positive brain is 31% more productive than when "neutral, negative or stressed." If your approach is more to the negative, do not despair. There is one key activity that research has shown can activate the positive brain: For 21 days in a row, take 2 minutes to write down THREE new things that you are grateful for . To support this activity, other actions to increase the habit of positivity are: journaling about one positive within the last 24 hours, allowing your brain to re-experience the positive; exercise , which reminds your mind and body that actions have consequences; meditation , to break the institutionalized "ADHD" that comes from multi-tasking rather than focusing on one thing; and performing "random acts of kindness" (see the link for simple suggestions). Sources : " The Happy Secret to Better Work ," Shawn Achor, filmed at TEDxBloomington, May 2011. This is the link to the video embedded above. It also contains a link to a transcript of the talk. Talk #2 in this link: " Shawn Achor: The happy secret to work success ," filmed at TEDxBloomington, May 2011; posted February 2012 [ALL of the TEDxBloomington talks on business topics are posted here]. Good Think Inc. "The Happiness Advantage" (contains links to book and other materials) Follow up: What example from Shawn Achor's talk makes the most sense to you? If you accept Achor's premise, what implications might it have for management of a business? Can these principles be applied to marketing as well? How has the opposite approach to positive psychology been used in traditional marketing campaigns? Peruse the other videos in the TEDxBloomington site. What other topics are of interest?

  • Kinder, gentler management

    [View:http://community.cengage.com/GECResource/themes/gew/utility/ :550:0] Bill Moyers, in an interview with James Autry, former publishing executive and poet. http://billmoyers.com/segment/poet-james-autry-on-issues-of-art-and-heart/# James Autry was the CEO of a publishing company...but he is also a poet. He has hired people, fired people, has dealt with budgets and administrative edicts. But...maybe...he is mostly a present and mindful human being who is interested in all that life has to teach us. Listen to this extraordinary interview and/or read the transcript. Read or listen to the poems..and the reflections of a CEO for whom self-interest took a subordinate position to reality. Source: " Poet James Autry on Issues of Art and Heart ": Bill Moyers, December 14, 2012. Note: video and full transcript are available at this site: take your pick. Follow up: Read the poem about firing a salesman. What are your thoughts? On an experiential level, what would you think about James Autry if he were your boss? List the pros and cons.

  • Apple execs get sliced

    photo of Scott Forstall from the Business Insider article Apple chose to announce the termination of key executives just as the most treacherous storm of the century was gripping the attention of news junkies and casual observers. But not even Hurricane Sandy could keep this news under the radar. Scott Forstall, head of mobile software (iOS), and once thought to be the heir apparent to Steve Jobs, is leaving next year, against his will. John Browett, head of retail, was terminated immediately. According to the Business Insider piece, the reasons for Forstall's departure include: his abrasive personality his history of forcing out other Apple executives Steve Jobs, his mentor, is no longer around to protect him his poor relationships with Jony Ive (hardware designer) and Bob Mansfield (hardware engineering) two major product failures for which he had oversight responsibilities John Browett has been with Apple for less than a year. He made headlines when his staff cuts had a negative impact on retail sales and customer satisfaction. CEO Tim Cook will oversee retail operations until a replacement is found. John Browett Sources: " Apple announces executive shake up... "; by Hayley Tsukayama, Washington Post, October 30, 2012. " Why Apple's Mobile Leader Scott Forstall Is Out " by Jay Yarow for Business Insider, October 29, 2012. Follow up: What two project failures did Scott Forestall have responsibility for? What happened in each case? Who are the up-and-coming new executives at Apple? What impact do you think they might have on the company and its performance?

  • Entrepreneur wins by using managerial accounting skills

    image by Peter Wynn Thompson of the New York Times Nick Sarillo is a pizza shop owner, who has built his business by developing and adhering to a "trust-and-track management style." He developed his principles the hard way--first by being overly optimistic and over-expanding...and then by saving his business. To do this he appealed to his customers with transparency. Then, because he was dealing with a young employee population, he adopted a "coaching" attitude, by making goals clear, allowing workers to meet those goals in their own way, and by tracking successes and giving real bottom-line feedback. Sarillo's marketing plan was also unique. He tracked and gave back 5% of profits to the community by allowing groups to use his building to fund-raise. This increased his visibility and made his business an integral part of community activities. Sarillo has written a book about his management style: " A Slice of the Pie: How to Build a Big Little Business ." He has also been on the cover of Inc. magazine . Source: " A Pizzeria Owner Learns the Value of Watching the Books ," by Ian Mount, NYT , Small Business, October 24, 2012. Follow up: Read the article. Describe what problems occurred at Sarillo's Elgin restaurant. How did he solve them? How did Sarillo finance his business? What went right and what went wrong with his financing model? What external factors contributed to Sarillo's business challenges?
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