Uncomfortable Truths – More News from Albuquerque Public Schools

Some friends discovered I was attempting, again, to work as a substitute teacher for Albuquerque Public Schools (APS) and told me to not waste my time and talents.  They then shared with me some of the recent changes and more issues at APS that shocked and horrified me.  I do not have a student in the APS school district; thus, all I can do is relate their stories here in the hopes of generating enough angst that someone in the Department of Education will rip the scab off the injury called APS, and begin some sunshine disinfectant.

Government Largess 2An Educational Assistant (EA; Teacher’s Aide) was called upon to be a substitute teacher in Seventh Grade math; because APS is bereft of substitute teachers and is experiencing a teacher drought.  The EA is not a licensed substitute teacher; thus, when asked how this is legal, to have an EA substituting outside her regular work and expertise, she said she “didn’t know” and then acknowledged this is standard practice.  The EA went on to further elaborate saying that when she has asked for a substitute teacher because her teacher was out or off, she had a very low probability of ever getting a licensed substitute teacher and generally had to teach the class, with no extra money for doing extra work.  Why does the NM Professional Licensure classify licenses, and charge horrendous fees for licensure, if EA’s can be “regularly called upon to substitute teach?”  My friend has worked in four other states in the US as an Educational Assistant/Teacher’s Aide, and has never been licensed to be a substitute teacher; yet, somehow in APS, she can be regularly called upon to substitute teach.

While discussing teacher performance, another classic APS child abuse issue was uncovered, all while a good teacher is being forced out of her position.  Because of the teacher drought, APS is experiencing, and due to reduced registrations in a Bi-Lingual education school, an illiterate teacher in both Spanish and English, who had to pass a state-mandated test to get the license to teach bilingual students, is going to keep her job for another year.  This intellectually challenged teacher has been reported to APS more than a dozen times for swearing, insulting, and not being able to teach; but this teacher was just offered a full-time position teaching bilingual students, when she cannot speak/read/write in either English or Spanish at an academically acceptable level to teach others.  Due to falling registrations, a Kindergarten teacher, who was the last one hired at this school, is being laid-off.  The teacher, being terminated is a stellar teacher, works hard, is well-liked by staff, parents, and students.  Since joining APS, this phenomenal teacher has been assigned to “catch” those students from the most impoverished homes and get them up to speed academically.  Reported by all who know this teacher, she is exemplary in her assigned duties; fully 180-degrees separate from the illiterate teacher who landed her job under shady circumstances or nepotism.  Yet the bad teacher is being kept and the good discharged.  APS, and by extension, the NM Professional Licensure board, are committing child abuse on such a scale, there should be criminal charges.

I have been in business a long time, and one of the fundamental rules of business is if people are assigned to work, and mandatorily required to put in extra time, those people must be paid for their extra time.  In discussing job mandates and requirements with more than forty-different full-time, substitute, and EA instructional staff members of APS, a regular theme arises; if the school mandates the instructional staff is required to work, they will not be paid for their extra time.  For example, the EA discussed above, was called to substitute teach, spent 90-minutes after work writing notes to the regular teacher, and will not be reimbursed for her extra time.  Please note, this is 90-minutes on top of her regularly scheduled, non-paid, mandatory overtime.  Thus, every day, this EA loses 90-minutes of pay at the end of the day and between 60 and 90 minutes at the start of the day, with no reimbursement to cover this employer-mandated time.  With a regular school year average of 38-weeks, 5-days per week average worked, and roughly 150-minutes per day unpaid, an average EA salary of $15,116.50 ($9.95 per hour), this EA is losing approximately $2,836.70 each school year.  Where is the NM Department of Labor?  Where is the NM Legislature?  Where is the NM Public Education Department (NM PED), who also happens to be in charge of overseeing licensure?  As I understand this is a widespread general practice for all teaching staff, but I can attest that the administrators leave promptly on time and arrive on time, and if they must work late they are reimbursed for their time.  Why is the teaching staff treated differently?

Government Largess 4With a total grant budget of $1.6 Billion, no numbers have been found for the amount of tax revenue APS is handed, the school district is certainly well funded.  From the 2018-2019 school survey on APS performance, we find a common theme from the citizens to the APS school district, reduce administration costs.  The answer from APS school administrators was to, “Increase Counselors, Social Workers, Security and other staff to support our student’s mental and physical health … Increase Custodians across the schools [sic].”  The Albuquerque Journal reports that APS is the lead agency for taking tax dollar revenues.  With Bernalillo County and City of Albuquerque, plus property taxes, all being collected at ridiculous rates, APS must be getting a significant chunk of revenue; still, APS demands more money “For the children.”

Understanding checkpoint, we have more than one instance of a teacher unable to perform their duties, and verbally abusing students.  We have a functionally illiterate teacher who landed her position based on either shady circumstances, or through nepotism, and we have a recorded phenomenal teacher being summarily discharged during a teacher drought.  We have citizens, parents, and a concerned community begging for reduced administration, where APS then responds they are increasing administration.  Then we have non-licensed staff forced to work outside their licensure because the administration cannot obtain substitute teachers, and teaching staff forced to work extra hours without proper compensation.  Where is the public outrage?  Where are the lawyers?  Where are the politicians demanding answers?  These problems are not new to APS; why the silence?

You're FiredDuring the summer of 2019, for the first time in 15-years, APS full-time licensed teachers received a pay raise.  Not for the first time in 15-years, the teachers saw a slew of additional requirements, mandates, and reductions in alternative licensure to “pay” for the teacher pay raise.  All while the school board received yet another pay increase.  The voters have already told APS NO on a slew of tax increases and bond sale schemes; however, in November 2019, APS is trying again to raise taxes, raise money, and raise administrator salaries.  Albuquerque, the next time Bernalillo County, City of Albuquerque, or APS asks you for more money, ask them when they will deliver education to students, a reduced administration, and fix the teacher drought?  It is blatantly apparent to me that when APS, City of Albuquerque, or Bernalillo County claim, “It’s for the children,” they really mean they want a pay raise on your blood, sweat, and tears; tell them no!

© 2019 M. Dave Salisbury

All Rights Reserved

The images used herein were obtained in the public domain, this author holds no copyright to the images displayed.

Experience + Education + Time + Reflection = Knowledge: Understanding the Formula for Knowledge

The newest baby in the physical begins life with urges, desires, but must learn everything, and along the way discovers a fact as incontrovertible as the rising sun, knowledge requires effort.  From the desire to be dry instead of wet, the baby cries.  From a desire for food, the baby cries.  Thus, physical life begins.  Muir (1930) makes clear that “Thought is matter; thought rules the world.  Thinking is intelligence (knowledge) at work.”  Please keep in mind, this topic continues to be fiercely debated and time does not allow a full exploration of each nuance; however, from seminal thinkers the following attempts to simplify the debate and showcases why the formula for building knowledge is the way portrayed:

Experience + Education + Time + Reflection = Knowledge

Returning to the baby analogy, the baby experiences light, but cannot describe why their eyes hurt from the light.  Thus, the first step in learning is an experience.  Through experience, choices are made, but the lack of understanding of consequences and communicating leads the baby to cry in frustration.  Thus, we can conclude that the first step in knowledge creation is experimenting and the resulting experience teaches preferences (Muir, 1930).  The movie “Teacher’s Pet” provides a quote solidifying the role of experience “… knowledge is the horse experience rides” (Perlberg, Seaton & Seaton, 1958).

Partanen, Kujala, Naatanen, Liitola, Sambeth, and Huotilainen (2013) conducted research on babies in the womb and stated that it is logical that the baby in the womb is learning a language.  Thus, providing the conclusion that the first education lessons are taught and experienced in the womb.  Upon birth, everything is being taught, smiling, laughing, crying, etc. are all lessons to be experienced with educational lessons.  For example, a baby responds to parental cues, smiling when they smile, laughing to make them laugh, crying when the parents are upset or angry.  All learned responses ever before a formal classroom.

Education and experience provide the first step in knowledge, often referred to as A Priori or knowledge gleaned from the world.  For example, the preference to have a dry diaper over a wet diaper.  No one has to explain to the baby that being wet is uncomfortable, creates pain, and is not desirable.  Epistemologists continue to debate whether education and experience are both involved in A Priori knowledge, but common sense tells the student that knowledge that we cannot describe where we learned it, is A Priori knowledge (Moser, 1987; Williamson, 2013).

The next type of knowledge is referred to as A Posteriori or knowledge that comes after a lesson (Moser, 1987; Williamson, 2013).  Consider the difference between hot and cold; how many babies touch something hot, get burned, have pain, and then learn the difference between hot and cold?  A Posteriori knowledge requires the next element in the formula for the full lesson to be taught, reflection.  A Posteriori knowledge requires time to reflect, and time and reflection bring more nuances of the hot/cold lesson to the enquiring mind.  For example, burns have blisters, scabs, pain, and so much more is experienced through the senses.  The smell of burning flesh stinks.  The redness, when touched brings back pain.  If the burn is severe enough, there are hospitals, nurses, doctors, and so much more added to the lesson regarding the difference between hot and cold.

The remaining types of knowledge are as follows, with a brief description:

  • Explicit knowledge and tacit knowledge. A Priori and A Posteriori are opposite ways to learn, so too are explicit and tacit knowledge opposites.  Explicit knowledge is recorded data that can be accessed through books, videos, recordings, and is generally found in formal classrooms and upon the Internet (Collins, 2010; Smith, 2001).
  • Tacit knowledge is the knowledge that is both difficult to translate into words and difficult to separate from emotions. For example, music performed by a young performer may be technically correct, but the emotions are stripped from the performance.  A master musician, in concert, translates the emotions effortlessly, while remaining technically accurate, and is astute to the audience during the performance.  If a junior musician asks a master how to translate emotions, the master musician will find it very difficult to explain how but will encourage the junior to explore their own emotions and continue practicing (Collins, 2010; Reber, 1989; Smith, 2001).
  • The next two opposing classes of knowledge are propositional and non-propositional. These classes of knowledge are also referred to as descriptive or declarative knowledge (propositional) and procedural (non-propositional).  Propositional knowledge is the knowledge that is passed through declarative or descriptive statements, where the teacher knows something is true, but cannot adequately detail how they know it is true.  Propositional knowledge is generally found in closely held beliefs, religions, opinions, and is the embodiment of experiential knowledge.  Propositional knowledge is embodied in formal education (Klien, 1971).
  • Procedural knowledge is usable knowledge. For example, technical manuals are full of procedural knowledge or step-by-step instructions to complete a task.  Procedural knowledge is the only knowledge that can be cited in a court of law and is the fundamental description behind intellectual property.  Procedural knowledge can be bought, sold, traded, protected, the rights to procedural knowledge can be leased, all because of the usefulness of procedural knowledge.  Procedural knowledge is all about gaining experience (Corbett & Anderson, 1994; Willingham, Nissen, & Bullemer, 1989).

To gain knowledge in any of the classes identified, we have shown that experience and education need time and reflection to empower the knowledge gained into usefulness.  Each of the classes of knowledge has learning theories to aid the student to explore that class of knowledge and more fully draw out lessons for future use.  For example, procedural knowledge could be learned through cognitive learning theories (Atherton, 2009; 2010), through Pavlov’s classical learning theories (Clark, 2004; Bitterman, 2006), and many more theories.  There is no explicit right or wrong in knowledge attainment, the formula provided simply reflects the steps to creating knowledge, and each individual will reorder these ingredients based upon needs, desires, and personal application.  A master artist in sculpture might have a different order for their knowledge attainment than a master painter or musician; however, all the masters will be able to communicate due to their mastery, not the order they place the ingredients in knowledge attainment.  Key to the knowledge attainment formula provided is that learning never ceases.  Each experience provides new lessons that will require time and reflection to completely master, or attain.  Hence the need to know how knowledge is created and the importance of the formula for future experiences, formal and informal educational opportunities, and desires for new knowledge.

A final aspect of knowledge is that knowledge can be gained and lost (Howells, 1996).  A lack of choosing to learn or experience robs time and costs knowledge.  For example, the ability to read can be taught, but when not practiced, it becomes harder and harder until the ability to read is lost.  Understanding what is read, can be taught, but the harder reading becomes, the less the words are understood until all understanding in the written words has been lost.  Due to the nature of gains and losses in knowledge creation and retention, it behooves the individual to choose to be continually learning, experiencing and employing time and reflection to capture the available knowledge (Teece, 2000; Tough, 1979).

References

Atherton J. S. (2009) Learning and Teaching; Cognitive theories of learning [On-line] UK: Retrieved from: http://www.learningandteaching.info/learning/cognitive.html

Atherton, J. S. (2010, February 10). So what is Learning? Retrieved from http://www.learningandteaching.info/learning/whatlearn.html

Bitterman, M. E. (2006). Classical conditioning since Pavlov. Review of General Psychology, 10(4), 365-376. doi:10.1037/1089-2680.10.4.365

Clark, R. E. (2004). The Classical Origins of Pavlov’s Conditioning. Integrative Physiological & Behavioral Science, 39(4), 279-294.

Collins, H. (2010). Tacit and explicit knowledge. University of Chicago Press.

Corbett, A. T., & Anderson, J. R. (1994). Knowledge tracing: Modeling the acquisition of procedural knowledge. User modeling and user-adapted interaction, 4(4), 253-278.

Howells, J. (1996). Tacit knowledge. Technology analysis & strategic management, 8(2), 91-106.

Klein, P. D. (1971). A proposed definition of propositional knowledge. The Journal of Philosophy, 68(16), 471-482.

Moser, P. K. (Ed.). (1987). A priori knowledge. Oxford: Oxford University Press.

Muir, L. J. (1930). The upward reach. Salt Lake City, UT: Deseret News Press.

Partanen, E., Kujala, T., Naatanen, R., Liitola, A., Sambeth, A., & Huotilainen, M. (2013). Learning-induced neural plasticity of speech processing before birth. Proceedings of the National Academy of Sciences of the United States of America, 110(37), 15145-15150. doi:10.1073/pnas.1302159110

Perlberg, W., & Seaton, G. (Producers), & Seaton, G. (Director). (1958). Teacher’s pet [Motion picture]. USA: Paramount Pictures.

Reber, A. S. (1989). Implicit learning and tacit knowledge. Journal of experimental psychology: General, 118(3), 219.

Smith, E. A. (2001). The role of tacit and explicit knowledge in the workplace. Journal of Knowledge Management, 5(4), 311-321.

Teece, D. J. (2000). Strategies for managing knowledge assets: the role of firm structure and industrial context. Long range planning, 33(1), 35-54.

Tough, A. (1979). Choosing to Learn.

Williamson, T. (2013). How deep is the distinction between A Priori and A Posteriori knowledge? The a priori in philosophy, 291.

Willingham, D. B., Nissen, M. J., & Bullemer, P. (1989). On the development of procedural knowledge. Journal of experimental psychology: learning, memory, and cognition, 15(6), 1047.

© 2019 M. Dave Salisbury

All Rights Reserved

The images used herein were obtained in the public domain, this author holds no copyright to the images displayed.

Uncomfortable Truths – An Open Letter to the Department of Veterans Affairs and the Congressional and Senatorial Representatives of the United States of America

I-Care

I write by way of greeting; I write by way of exhortation to action, as the current status quo is reprehensible and unacceptable.  Uncomfortable truths are those realities where bureaucracy has superseded logic and leadership, creating situations where the harm of the patient/customer is the first and only business.  There are good people at the Department of Veterans Affairs; but, these people are being crushed by the bureaucracy, the stifling mental inertia, and the lack of actionable leaders to propel change at the Veterans Benefits Administration (VBA), the Veterans Health Administration (VHA), and the National Cemetery.

An example of uncomfortable truths: I witnessed a veteran enter the emergency room of the VA Medical Center, and be actively, but passively, abused.  Because he was a regular, and sometimes came in and was obstinate, and because he was homeless, he had a history with this emergency room and staff.  The staff actively overlooked him, they talked bad about him, they cussed him out behind his back, and his service was suboptimal at best when he was finally treated.  As this veteran was not the only one being treated in this manner, this was brought to the attention of hospital leadership; the person reporting the abuse was terminated without cause.  This is a leadership issue, a process problem, and an excuse not to change.

Another example of uncomfortable truths: the VBA needs/wants “New and Material Evidence” to process/review/correct a claim.  The Primary Care Provider and all specialty clinics at the VA cannot provide “New and Material Evidence,” as they are not diagnosticians.  Thus, the veteran is left stuck between two bureaucracies that refuse to help, because the rules do not allow the providers to help; this a leadership problem and a process issue.  How can the veteran afford outside insurance to obtain the “New and material evidence?”

Earlier this month, the OIG sent out a report over death at the VA due to leadership inefficiencies and can be found here, VA-OIG report.  Over the last week, three more incident reports have been discharged from the VA-OIG.  Report 1: Has a veteran dying of suicide, because the decision-making process, a process designed specifically to improve communication to aid high-risk patients were not implemented, tracked, and reported properly.  The decision-making process is expected to employ a full patient-care team (PACT) in evaluating and making decisions that affect the patient’s care.  The process was not followed, and the veteran who is already at high-risk for suicide and known to the PACT was deactivated, leading to a veteran’s death.  The VA-OIG made a recommendation to improve the process, the same process that was disabled, leading to a dead veteran.  How does this make sense?

The uncomfortable truth is multi-faceted in this case.  Leadership does not do record audits to ensure the deactivation of high-risk patients does not become “lost” in the bureaucracy.  Leadership is not flagged when the PACT disagrees with the treatment of a patient.  Finally, the VA-OIG has no teeth to reprimand, insist, and improve compliance; they can only make recommendations after the fact.  Congressional representatives and Senators, you allowed the VA to have its own dedicated inspector general, why?  What will you do to enhance the leadership at the VA?  Do not tell me again; we will hold “Committee Meetings.”  These committee meetings have been, and continue to be a feckless waste of taxpayer time, money, and never addresses the core issues apparent.

Report 2: Covers a veteran needing an appendectomy and had to wait for three hours for the surgeon to become available to perform the surgery.  The VA-OIG confirmed the delay in care, but essentially settled for, “Well, the patient lived, so no problem here.”  If that statement seems overly simplified of the process, tell me why the patient had to wait.  Why pay records and timekeeping records were messed up for a single month (May 2018), and how pay and timekeeping records got messed up in the first place.  The VA uses a national system for reporting time worked, but not all employees use the same payment system.  If true, why aren’t all employees, to include residents, surgeons, and staff using the same pay system?  The wait is blamed on poor communication, communication in scheduling surgery, communication between resident and surgeons, and communication because the “appropriate documentation” was insufficiently maintained.

I know from sad experience that there are nurses and doctors who write things down in notebooks, on scrap paper, and on paper charts, when the computer on wheels (COWS) is readily available.  The excuse is always, “I am too busy to use that thing.”  I know the VA has spent an excessive amount of money to get digital records, installing digital records, getting digital records to work when needed, and delivering the digital record available to mobile stations to document what is happening with the patient.  I have some grave concerns for checkbox medicine; but, blaming a surgical delay on improperly maintained documentation remains a wholly inexcusable and unacceptable statement in an official investigation.  Why was this lame excuse allowed to stand?

Report 2, exemplifies a multi-faceted problem presenting a need for a multi-faceted approach to correction.  Leadership at the hospital must be actively engaged, ensuring processes and procedures are optimized to deliver the “I-CARE” customer promise.  Communication chains are a leadership tool, and when broken, correction demands accountability and responsibility to resolve correctly.  Reporting is a leadership function to ensure liability and corrective action as a normal operating procedure.  Did anyone ask why the documentation was not maintained?  Was this lack of documentation maintenance a design flaw to hide what happened during this incident as an extension of designed incompetence?

Report 2, demands answers on two distinct issues double-dipping, and the continued practice of collective design incompetence. Double-dipping by providers working for the VA at the same time they are working at other medical institutions, is this occurring?  Why?  I understand there is a provider shortage at the VA.  I know doctors need to make money, and doctors make money by seeing patients, surgeons make money performing surgery.  The VA-OIG report appears to gloss over the practice of double-dipping e.g., on-call from one hospital while working at another, or working at another hospital while the VA expects you to be at their hospital.  Senators and Congressional representatives, are you investigating the potential for double-dipping?  Will it take a dead veteran before you even care about double-dipping occurring?  I make no accusations; I am asking honest questions on this issue in an attempt to learn more.  Will you do the same?

One of the most egregious problems at the VA is designed incompetence to allow a malefactor the ability to hide behind bureaucracy to avoid accountability and responsibility.  Designed incompetence remains a significant problem and I do not see any of the mid-level managers, leaders, supervisors, trainers, etc. acting to eliminate designed incompetence to the improvement of the Department of Veterans Affairs.  During President Obama’s Administration, I watched a Congressional Committee meeting where whistle-blowers were invited and testified about the designed incompetence that allows for an individual to pass the buck, duck responsibility, and protect their jobs and power at the VA.  I keep discussing design incompetence, because the mid-level managers, directors, and supervisors at the VA refuse to address and correct this issue.  Senators and Congressional Representatives, why do you allow this practice to continue?  Did you know that this is the primary method for discriminating and harming whistle-blowers?  Of course, you did.  I have seen several committee meetings where this exact issue was discussed, and the bloviation from the committee does nothing.  You are the leaders in our Republican Society, when are you going to act, in concert with Secretary Wilkie (who’s doing an exceptional job), correcting and insist these practices cease?

Report 3: Involves 60,000+ veterans, is this number sufficient to warrant permanent action on the proper billing of insurance companies and veterans, or does this number need to exceed some other level before it warrants your attention.  If a different level is required, what is that magical number?  I guarantee that veterans from all states and territories are involved here, as their representatives, what will you do?

Directly from the VA Website, we find two different uses for funds collected:

  • “VA is required by Public Law 87–693; 42 USC. 2651, commonly known as the Federal Medical Care Recovery Act, to bill the health insurance carrier that provides health care coverage for Veterans to include policies held by their spouse. The money collected goes back to VA medical centers to support health care costs provided to all Veterans.
  • Funds that VA receives from third party health insurance carriers go directly back to VA Medical Center’s operational budget.”

You, the elected officials of the Republic of the United States of America, enacted these laws and improper billing of veterans and insurance companies, causes financial harm and distress; this is your problem!  Do you understand that even if money is returned to a veteran, the financial injury has been done?  Those veterans who have paid a bill, or the insurance company that paid a statement, they didn’t need to pay is an interest-free loan to the government, and this is wrong!

There are literally tons of money at stake here; I know my local VA Hospital said, “The funds collected when we bill insurance companies come directly to this hospital for construction projects, renovations, new equipment, and so forth.”  Report 3 is but one of how many VA-OIG reports where improper billing is occurring. Incorrect billing drives the cost of healthcare up.  Hence, Obamacare costs more because the VA is not accurately billing.  Medicare costs more because of improper billing.  You the elected officials are directly responsible for ensuring proper billing occurs as an aid in reducing the costs of healthcare.

Where are you? Will you act?

 

© 2019 M. Dave Salisbury

All Rights Reserved

The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Shifting the Paradigms: A Hybrid Leadership Theory Plan – Allowing One’s Self to Create a Leadership Theory Template

Man, as defined as a species, learns by doing; this principle of learning is best showcased by the poem “What man may learn, What man may do” penned by Robert Louis Stevenson.  First, we see, and then we do; if “Imitation IS the sincerest form of flattery,” as proclaimed, then leaders are neither born nor made; thus, leaders are formed through the flattery of perception and emulation (Martin, 2012) [Emphasis Mine].  For example, a new recruit in the military, any military, learns how to be a leader by following, perceiving, and copying those placed above them.  The same pattern is copied time and time again until the top of the leadership pile is obtained or until something drastic happens to the top rung, i.e., premature death, elections, and other influences. This theory of leadership evolution places the training of the leader squarely upon the individual aspiring to lead.  The aspiring leader must choose whom to emulate, and in choosing, form decisions about why he chose that leader over another of equal or greater rank to emulate.

Emulation as a leadership theory places personality, emotional intelligence, preferred organizational culture and environment, and every other aspect of the leadership environment into the hands of the person aspiring to lead as choices of preference, while also removing excuses and leaving the leader fully responsible, accountable, and liable for the consequences.  As a species, we not only mimic those we hold in esteem, we magnify them.  Thus, a learner emulates certain behaviors and increases those behaviors (Coloroso, 2008).  Just as a child is taught to hit by watching his parents beat each other and the child, the child will not only hit but also will not understand hitting is unacceptable and will increase violence past hitting to using weapons other than fists.  The third generation of being taught hitting is acceptable generally moves to murder and incarceration.  Upon emulation, magnification occurs, and patterns will continue until stopped.

More often than not, leadership through emulation theory is interconnected to spiritual leadership theory. Fry (2005) claims spiritual leadership theory “… was developed within an intrinsic motivation model that incorporates vision, hope/faith, and altruistic love, theories of workplace spirituality, and spiritual survival through calling and membership.”  While Fry (2005) continues to justify this position, leadership through emulation remains a great-uncharted unknown or only researched through the bias of religious lenses and discounted.  Yet, the great truth remains; humans learn through seeing and doing, and thus, leadership occurs through emulation and agency.

Religion is merely a set of beliefs and practices people adhere to voluntarily.  The term spiritual discusses closely related character interests, attitudes, and outlooks.  While not devoid of religion, spiritual leadership theory does not entirely apply to the reality of life with enough applicable strength to overcome individual zealots or the anti-religious zealotry found in many organizations.  Many people do not realize that allowing religious freedom means accepting the term religion without feeling encumbered to onboard a religious theory.  Fry (2003) expounds upon the spiritual leadership theory, and while this theory includes many aspects of corporate responsibility personally held dear, the reliance upon religion can be a hindrance for those followers who might choose to lead but remain anti-religious.  Wren (1995) discusses leadership theories but focuses too much on a few while denigrating those not mentioned.  By relying too heavily upon charismatic, transactional, and transformational leadership, Wren (1995) loses the forest grandeur by focusing on seeds, not that this diminishes seeds, but there is so much more to see and experience.  The following leadership plan relies heavily upon what works and includes pieces of spiritual leadership for the active moral and ethical code, emulation leadership theory, and flexible thinking in organizational structure design.  The result is a highly trained, experienced, effective leader, capable of creating success in many different industries, environments, and situations.

All successful leaders like Presidents Lincoln, Jefferson, and Washington, Thomas Paine, Benjamin Franklin, among others emulate moral fortitude and character as well as personal integrity to leadership principles and existence in productive work efforts.  These leaders stood firm for core beliefs including truth, justice, mercy in the face of war, and built followers, who could then lead in difficult times and lead well.  The primary chain linking all these leaders remains a single item: when faced with a decision, they acted with no hesitation, no spinelessness, and no hypocrisy.  By choosing whom to emulate, in emulation leadership theory, the best can be onboared, magnified, and broadcast back into the organization forming a bulwark anchoring other people aspiring to become leaders.  Brady (2005) discusses levels of influence in launching a leadership revolution.  Part of the first level requires the aspiring leader to know the environment, history, basics of the organizational culture, and much more.  The main point in the plan is to emulate the best, choose new principles to include, discover new ideas that work, and employ this knowledge in direct personalized solution.  Due to the high amount of emotional intelligence inherent in the current employer organization, transactional and charismatic leadership are of limited functionality.  Transformational leadership theory has more application but does not include many elements needed to enforce the plan or to achieve success.  Leadership requires follow-on levels of influence that include preparation, desire, understanding the role of learning and adversaries, loving people, and developing people, who will choose to develop others.  Of particular importance is the principle of loyal opposition, also known as a courageous follower.  Building upon Chaleff’s (1995) discussion about the “Courageous follower” becoming a courageous leader, who can influence change, lead-in difficulty, and conquer, it remains imperative for followers to become those they emulate or the entire period of training is not valued by followers (Yukl, 2006, p. 134-139).

Personal strengths include a vast repertoire of benchmarks, successes and failures, working knowledge of psychology, depth as being a follower in stressful situations, and the drive of a bloodhound to find and fix.  Skills and talents under constant construction include communication, manners, modesty, and developing interpersonal skills between peers and current leaders without causing insult.  Personal weaknesses include a distrust of followers leading to problems with the delegation of authority, a reluctance to allow failure in followers, and an own abhorrence to perform tasks a second time after a failure.

The leader currently in existence needs experience to improve as described by Brady (2005), Jossey-Bass (2003), and others.  The leader imagined and envisioned for the future needs seasoning to become a reality; thus, allow yourself or your followers time to build into the leadership plan outlined.  The gaps are minor, and the weaknesses cannot improve without more experience in handling complicated situations.  In vague terms, the timeline might look something like this.  Within the next year, advancement would be from customer care professional in fraud to a curriculum designer or teacher/trainer/coach of adults for the current employer.  Within the next three years, or by the conclusion of an academic degree program, advancement would be from designer/coach/trainer into leading other coaches/designers. Within the next eight years, progress would be to a service delivery leader guiding leaders of other coaches/designers/trainers and eventually be advanced to a director of corporate training or vice president of training delivery and human resources.  Keeping this euphemistic plan on track requires sticking with a single employer, building a solid personal brand based upon successes, leveraging educational degrees while maximizing the previous experience and new experiences into solutions for the employer.

Recognizing that attitude, failures, and other people acting as variables on this plan requires communicating intent, working with people to convince them that end goals are attainable and the change needed to realize the end result.  Until this plan launches, it remains imperative to exemplify Chaleff’s (1995) descriptions of a “Courageous follower.”  This type of follower can emulate those in leadership positions while supporting the good and learning from current leadership mistakes.  In a seamless transition, the “courageous follower” employs emulation theories of leadership and gains the advantage while building the needed personal brand and accomplishments and preparing for future leadership (Yukl, 2006, p. 134-139).

Avolio (2008), Brady (2005). Paine (1995), and Wren (1995) among others, discuss another aspect of being a good follower and future leader, liberty.  America throughout history has provided excellent examples of what occurs when free people band into a society dedicated to liberty, freedom, and individuals empowered to choose their destiny.  Being a courageous follower requires freedom of choice, and all future leaders, regardless of theories espoused, need to remember the power of freedom when leading.  While some leadership writers discuss empowerment as a panacea term for everything from agency to low-level decision making, empowerment merely is freedom by a different name.  Free followers are naturally empowered to choose, and with training, proper guidance, and organizational support choose with confidence.  This is known as agency or the power to choose with responsibility and accountability for the consequences.  Honing this power to choose wisely, while protecting the opportunity to succeed and fail, promotes a level of trust and commitment to current leaders that improve morale, lifts people, and builds robust organizations.

While less than bare bones in many aspects, the leadership plan described remains flexible enough for significant changes in future prospects while being detailed enough to fit into the current lifestyle of potential interested leaders.  Experience has taught that detailed plans tend to force a locked down mentality in thinking, creating a box that hinders, hampers, and delays.  While some details must be included, a delicate balance is preferred when dealing with the vicissitudes of life.  Staying on track with this plan requires courage, fortitude, and emulation of the best and brightest to become a reality.

References

Avolio, B. J., & Yammarino, F. J. (2008). Transformational and charismatic leadership: The road ahead. Vol 2. Bingley, United Kingdom: JAI Press – Emerald Group Publishing Limited.

Brady, C., & Woodward, O. (2005). Launching a leadership revolution: Mastering the five levels of influence. New York, NY: Business Plus – Hachette Book Group.

Coloroso, B. (2008). The bully, the bullied, and the bystander. (Living ed.) New York, NY: Harper Collins.

Fry, L. W. (2005). Positive psychology in business ethics and corporate responsibility. (pp. 47-83). Charlotte, NC: Information Age Publishing. Retrieved from http://www.iispiritualleadership.com/resources/publications.php

Jossey-Bass, R. (2003). Business leadership: A jossey-bass reader. San Francisco, CA: John Wiley & Sons.

Martin, G. (2012). The phrase finder: Imitation is the sincerest form of flattery. Retrieved from http://www.phrases.org.uk/meanings/imitation-is-the-sincerest-form-of-flattery.html

Stevenson, R. L. (n.d.). What man may learn, what man may do. Retrieved from http://www.poetryloverspage.com/poets/stevenson/what_man_may_learn.html

Wren, J. T. (1995). The leader’s companion: Insights on leadership through the ages. New York, NY: The Free Press.

Yukl, G. (2006). Leadership in Organizations. 6th Edition. Upper Saddle River, NJ: Pearson Prentice Hall.

© 2018 M. Dave Salisbury

All Rights Reserved

The images used herein were obtained in the public domain, this author holds no copyright to the images displayed.

Leading the Call Center: Flavor of the Month Philosophies

Chinese CrisisHaving just completed a project that saw me leading a team in a call center, I want to make something clear; quick fixes and flavor of the month philosophies do not work.  I cannot stress this enough; yet, the practice continues to the detriment of call center employees and the organizations served by call centers.  Flavor of the month philosophies is the latest bestseller to fix the problems in business.  We have all seen these programs including, FISH, WAIT, Strengths Quest, and so much more.  These ideas are good ideas, and they possess value, but when changed monthly, these programs, never do more than briefly mark the surface intellect of the call center.  I am not disparaging these ideas in the least; let me elaborate as to why the flavor of the month idea fails.

The project previously mentioned when concluded saw the call center director very much converted to a program of definite value in and using one’s strengths entitled Strengths Quest as presented by Clifton, Anderson, and Schreiner (2006).  The culture of strength promotes unity, and by extension, organizational power, when combined intellectually, becomes the corporate culture.  Integration in business, especially in call center operations, remains crucial to bottom-line health.  The call center director invested a lot of organizational resources to capture everyone’s strengths, publish these advantages, and use this information to measure the call center.  The problem was the staff has no idea why they are investing company time in completing the “Clifton Strength’s FinderÒ (CSF),” and many completed this assignment while taking calls and distracted.  How verifiable is the data if the attention of the person completing the task is diverted?

My assignment, as a call center supervisor, included gauging the employees in the call center about their strengths.  Of the 10-employees in the call center, two had forgotten and blatantly said they do not care.  Three expressed a desire to retake the CSF to more fully focus on the task instead of completing it between calls.  Four employees asked why and what is the purpose of taking the CSF.  Finally, all the employees, when asked how they use the CSF data in their daily actions, expressed the same answer, I do not know.

Let’s be clear; there is nothing wrong with the latest flavor of the month programs to improve an organization, provided the leaders understand change, embrace change, train and teach “the what” and “the why,” and then remain committed long after the excitement over the bright new object fades.  I had the misfortune of working in a call center where the entire corporate culture was expected to change with every fresh flavor of leadership, and the organization is a mental mess.  What is a leader to do when each new flavor-of-the-month is presented as a potential fix for organizational dilemmas?  I suggest the following as a launching point for corporate discovery and leadership support.

  • If the organization is going to invest resources in a particular program, do not change for a set period, which includes pre- and post- measurement and evaluation. If the organization does not know where they start, they can never know what happened or where to go in the future.blue-money-burning
  • Organizational change must be more than surface polish or potential money (Blue Money) is lost, never to be recovered. Organizational change needs to fundamentally affect the organization and be allowed to produce measured results.  Does this mean that if something is not working, we keep at it?  No!  It means to provide sufficient time and measurement to gauge the application and the organizational change.  Many times beta-testing the proposed change can identify the processes, procedures, and other trouble points to be mindful of, or correct in beta-testing, to ensure full organizational change may occur with a higher chance for success.
  • Get everyone involved, enthused, and a willing advocate for the change. Getting everyone involved is not producing marketing materials and desk references.  Getting everyone involved requires explaining why and detailing what in the organizational change.  Getting everyone involved means there will be feedback, pushback, and rebellion.  Expect pushback, but never allow pushback to derail reform.  Pushback is a healthy activity that provides essential opportunities for the leader to explore solutions, answer questions, and evaluate the results.
  • Teach and train; train and teach. Learning should be a constant and desirable outcome of organizational change.  Teaching is not training, training is not teaching; but, both are critical skills needed for leaders and learners.  Teaching is helping someone else acquire knowledge.  Training is teaching a behavior or ability.  Teaching is usually one-way communication using measurement tools, e.g., tests to gauge knowledge learned and retained.  Training should be two-directional communication, is completed through experience in closely monitored environments, and includes 360-degree feedback to improve the training environment.  Never allow teaching and training to become the same confused term; while the words are closely related, they are not the same action.
  • When was the last time you discussed what you are reading with front-line employees? When was the last time you engaged a front-line worker about what they are reading, thinking, and ask for suggestions to improve?  When was the last time you asked to be trained on a process, procedure, or organizational action by those who do it all day?  If recently, did you ask why, a lot?  I promise you will be surprised when you have these conversations, especially since they open up opportunities to explain and expound, learn, change, adapt, and engage with those you lead.
  • Organizational change requires enthusiasm from all parties to begin to engage and deepen the shift from surface polish to fundamental culture adaptation. Enthusiasm takes many shapes, sizes, and colors, including the loyal opposition of followers, opinions, and feedback.  The leader must exemplify and honor, or support, the enthusiasm around them as a tool for succeeding in changing the organization.
  • Clarify intentions. Clarify processes.  Clarify procedures.  Clarify by asking follow-up questions and reflectively listen to obtain mutual understanding.  Clarification remains one of the most critical tasks in organizational change.  When confusion rears its ugly head, respond with explanation and follow-up, as detailed in two-directional communication.  When the comprehension is doubted, ask for feedback as an opportunity to increase clarification.  Clarification is both a tool and an opportunity; do not waste this opportunity and tool by neglecting those needing clarification.
  • Organizational change needs a mechanism for gathering data from many sources, including the employees affected, the vendors, the suppliers, and the customers. Open the valve for data to flow back.  One of the most horrific organizational changes it has been my displeasure to witness was increased because the leaders operated in a vacuum and never allowed data flow that was contradictory to the previously agreed upon results.  The leaders in this organization worked hard to refuse hard data, which contradicted their bias, and this ruined the business, the employees, and the customers.

I cannot guarantee following all these points will make organizational change succeed, roses bloom, bottom lines inflate, rainbows dance, and all of life fall into organized lines leading ever upward.  I can guarantee that without these points, organizational change that promotes an environment of learning will never be more than polish.  Consider the axiom, “Lipstick on a pig.”  The lipstick is not bad, the pig is not bad, but placing lipstick on a pig is out of place and does nothing to improve the pig.  Flavor-of-the-month changes are lipstick on a pig, not bad, but out of place until the entire organization is on board and enthusiastically supporting the move, and proper measurements are in place to gauge, measure, and report the change.

Business theorist Chris Argyris put forth a model, later discussed by Senge (1994) explaining our thinking process as we interact with the world.  This seven-step method is called the Ladder of Inference; according to this model, as we move up the ladder our beliefs affect what we infer about what we observe and therefore become part of how we experience our interaction with other people.  Organizational change can be plotted along the same model or ladder of inference.

Leadership LadderOrganizational change begins with information output; then collect data, preferably through listening and observation while doing the work; interpreting the data includes obtaining data, evaluating meaning, deciphering intent, and understanding value.  Please note, the assumptions should not be made in a vacuum and could be wrong; thus, always return to the data producers and ask questions to ensure mutual understanding.  Once conclusions are mutually understood, they become beliefs; but, don’t stop until beliefs become actions.

If a model is needed, please benchmark Quicken Loans and Southwest Airlines, both organizations are doing a tremendous job with the ladder steps, especially moving organizational beliefs into motivated organizational action.  Remember, one does not climb a ladder to view the horizon and scenery, they climb a ladder to begin working, carrying the tools needed to perform the work, and possessing certain knowledge that the work can be accomplished.  Climb the ladder of success with the intent to work, achieve, and move forward.

References

Clifton, D. O., Anderson “Chip,” E., & Schreiner, L. A. (2016). Strengths quest: Discover and develop your strengths in academics, career, and beyond (2nd ed.).

Senge. P. M. (1994). The Fifth Discipline: The Art and Practice of the Learning Organization. New York: Currency Doubleday.

© 2017 M. Dave Salisbury

All Rights Reserved

The images used herein were obtained in the public domain, this author holds no copyright to the images displayed.

An Open Letter to Trader Joe’s – Shifting the Paradigm on the Grocery Purchasing Experience

Image result for images, trader joe'sHello Trader Joe’s,

I want to thank you for an amazing shopping experience.  I have loved entering your stores across America, from Portland, Maine to Seattle, Washington, from Phoenix, Arizona, to Spokane, Washington.  I have enjoyed every location we have traveled.  I am so thrilled to buy products that are original, cleverly packaged, and where humor is a tool for improving food.  For example, during the last trip, I saw the packaging on the white potatoes relating how they (the potatoes) like hot places, cream, and much more.  The humor employed takes buying potatoes to a new, higher level as well as bringing a laugh and several smiles to the customers.

No other chain store in America pays so much attention to the customer experience.  Thank you for hiring amazing store associates!  I have never walked into a Trader Joe’s and had a bad customer experience.  Of all these years shopping at Trader Joe’s, only once have I had to return an item, and the return was done pleasantly and effortlessly.  I have had questions about products, and all the customer interactions regarding these questions were enjoyable and often entertaining.  Best of all, when I have had questions about products to buy, the crew members have had no problem offering a taste or supplying recipe information.  The freedom to meet the customer’s desires in a fun, friendly, and fresh manner makes an excellent shopping experience from coast-to-coast.

In fact, one of the most desirable things about shopping at Trader Joe’s is interacting with the crew members and the other customers in discussing recipes, flavors, and getting new ideas.  In fact, when I have had more information about a product than an crew member, the crew member has been gracious and thanked me for the helping hand.  Always, the customer experience promotes a desire to return and keep investigating for new opportunities to eat well.

I was having a rough day this past Wednesday (09/13/2017).  I went to Trader Joe’s for a quick stop and my mood began to lift.  Watching the little kids pushing the “Shopper in Training” carts, watching the kids get excited about food, and experiencing the Trader Joe’s difference was exactly what I needed.  Best of all, I saw raisin/cinnamon bread and mango chutney, and I was going to have toast upon my return home, one of my favorite comfort foods.  I cannot relate satisfactorily how much enthusiasm and smiles the customers show upon entrance at Trader Joe’s.  No other store sees this type of customer interaction, and I am grateful to you for fostering this environment for it helps other customers to enjoy the shopping experience, as well as improving the crew member’s day.

Related imageThank you for the murals on the walls, the interesting posters, the flowers, plants, cards, and new hidden treats to explore every trip.  I enjoy immensely the ginger granola, the dark chocolate crepes, the triple ginger cookies, and the list goes on.  I was in Trader Joe’s off Louisiana Street in Albuquerque today (09/18/2017) and tried “Trader Ming’s” products, a great gustatory and amusing experience.  Several times in my shopping history I have tried to taste every item, except the alcohol products, in a single Trader Joe’s store.  Never happened to date, but I have enjoyed the journey and the adventure where food and shopping meet.

I have to say, as Trader Joe’s is the sole provider of pretzel rolls in my area, I am always looking for new recipes for using pretzel rolls.  My love of all things pretzels continues to be a fun distraction and gustatory journey.  For example, two-weeks ago I bought six pretzel rolls and tried three different recipes, roast beef with sharp cheddar on a pretzel roll with some black pepper/olive oil mayonaise, which was absolutely amazing; fried egg with bacon on a pretzel roll was a great delight, your crew member suggested a coarse mustard that totally made this meal; and the coupe de resistance continues to be the pulled pork/chicken/beef on pretzel rolls with any flavor of cheese.  Hot or cold, these sandwiches make eating a new adventure.

My wife is vegetarian/vegan and appreciates having a variety of choices in her meal planning that she cannot find elsewhere from the tiny, tiny Brussels sprouts, the mini sweet potatoes and mini avocadoes, the beautiful, fresh, ripe, sweet fruit that you don’t have to wait to ripen, to coconut milk frozen desserts.  She loves the seasonal specialties, the beautiful murals and fun decor, the pleasing scents of flowers, the tidiness and cleanliness of the store, the wide aisles, and the people, the wonderful people, both customers and crew members, people who smile and laugh and share what they know and have experienced in their adventures with food in polite, kind, and fun ways.  She says it’s a little bit of heaven on earth.

I know when I see the Trader Joe’s sign, good food, good shopping, and good people are available and ready.  Thank you for more than two decades of wonderful food and people experiences.  Wherever the road has taken us, Trader Joe’s continues to follow, and it is very much appreciated.  In Ohio, I regularly traveled more than three-hours from northeast Ohio to Columbus for Trader Joe’s, a trip I was glad to make!

From a very satisfied customer, thank you!

Dave Salisbury

© 2017 M. Dave Salisbury

All Rights Reserved

 

Understanding Money: Shifting the Paradigm on Money

Several years ago, I spent a significant amount of time trying to explain the different types of money to a very inexperienced young man.  I was highly unsuccessful; so, I take this opportunity to explain various types of money and how they work in the scheme of things.  I hope this explanation helps others to not only understand their own money, but also to become more cognizant of how governments spend your tax money.

Green money is cash.  Green money is the dollars and cents in a bank account or your pocket and is easily spent.  Image result for images, green moneyGreen money is often called liquid money or liquid assets, liquid because the holder is presumed the owner, who is in possession of it and who can spend it freely any way he wishes.  Possession is nine-tenths of the law.  One of the first lessons most of us learned growing up was if you wanted to buy something and your pocket was empty you went without.  Liquid assets are cash, green money, and are available to be spent in any way the holder chooses.

Non-liquid assets are consideImage result for images, house, car, boatred green money as a result of their sale; this is why a house, a car, a boat, and other such items are considered assets.  The sale of the asset provides the opportunity to turn a non-liquid asset into a liquid asset.  However, since many times the asset is employed as collateral for a loan, the sale of that asset means the loan holder is paid first from the sale.  If the resale value is insufficient to cover the full loan owed, the loan, which is red money, can still be collected; this process is why red money is so important to understand.

Red money is debt.  Red money always comes with a penalty called interest.  Interest is green money turned red to return the profit to those who lent the initial funds or principle.  That debt, be it a loan, a credit card, or other debt model, remainImage result for images, red debt traps a burden to the borrower, continues to accumulate interest, and can be called due at any moment in time.  While some laws protect the borrower from excessive interest rates, it remains important to know about and be cognizant of the interest rate trap.

The interest rate trap comes in several forms.  While in the US Navy, stationed in Norfolk, Virginia, a sailor buddy bought a beautiful car for $4000 with a 45% interest rate.  He put $1500 in green money down, so the full loan amount, principle and interest, for 60-months was $7805.49, including the sales tax.  When the car was stolen, later that month, the insurance company valued the car at only $1000, leaving the sailor to pay immediately $6805.49.  This is one type of interest rate trap; another comes from Payday Loans.  Borrow your next paycheck today, get the money today, and pay your paycheck back during the next 36-months at an interest rate between 30-60%.  By the time the payday loan is paid off, more than four separate paychecks to cover a single paycheck loan will have been invested provided payments have been made on time and as quickly as possible.

While paying off this loan, you lose your job.  You can lose your car as well because your car is sometimes used to insure your payday loan.  If the resale value is insufficient, you lose your car, you lost your job, and now you still owe a considerable sum that gains interest.  Red money is dangerous; like the sword of Damocles, the danger hangs by a tiny thread above the borrower; one wrong move and the sword falls.  Debt, red money, can be helpful; but, careful planning and budgeting are required before entering into debt obligations.  Always it is better to save and budget green money, or obtain investors, before contemplating debt.

Black money is dead Image result for images, black moneymoney.  Consider the person who takes green money and places those dollars and cents under a mattress or in a coffee can in their home.  The cash is out of circulation, is not valuable enough to collect, and no one is benefiting from the money through interest.  Black money can be created in other ways that will be explored later in this article.

The next type of money is blue money, also referred to as potential money.  Consider a hammer. The hammer might cost $20.00 in green money to buy and bring home.  In the hands of a trained construction worker, a $20.00 hammer, over the course of the hammer’s effective working life, has the potential to earn thousands of dollars in green money for the construction worker.  Image result for images, blue dollarsIn the hands of an inexperienced worker, the hammer has the potential to cost thousands of dollars in green money.  Training a person to improve their performance might cost $300 in green money; but, if that employee is able to improve his performance on the job, potentially millions of dollars are able to come into the company because of the training.

Money is created when it is borrowed and interest is paid on the loan.  For example, Jack has an extra $500 (green money).  He gives this money to his friend Joe in the form of a loan (red money).  Joe takes the loan, adds to his business potential (blue money), and through increased profits is able to pay Jack his $500 loan plus the interest of $300.  Hence, $300 (green money) is created as profits for Jack.  While a simple analogy, understanding money should be simple.

Joe’s loan to Jack showed on Joe’s books as red money until the loan and interest were paid.  During this time, Joe was also making green money, or profits sufficient to pay his workforce, his other obligations, and still retain sufficient to pay himself.  Small business owners are not paid until everyone else is paid, and it is not uncommon for small business owners to be scraping by on the smallest margins because all their non-liquid assets are locked up in loans to keep the business afloat.  When poor business practices begin risking inventory and equipment and shareholder investments are added into the equation, is it any wonder why small businesses struggle.

Money is also created when saved in the various saving tools offered by banks.  The diligent saver can save $40 a week until he or she is 65 years of age and potentially have millions in the bank for retirement.  Why, because the bank will pay interest to the saver from the interest collected on the loans the bank makes with the green money invested.  Many different savings tools can be considered as non-liquid assets because of the agreements made between the saver and the bank.  Generally, the longer the agreement for the bank to hold the money, the higher the interest rate paid as the bank can schedule payments and loan the same dollars more easily when the money of the saver is scheduled to be in the bank for a longer period of time.

Often Federal treasury departments of governments create money by printing more or larger bills.  The problem with printing more money is one of surplus, which begins to increase interest rates and decrease value.  Consider for a moment, if the only way to create money is to work money through lending, improving business, etc., then printing only makes harder putting money to work.  Too much money on the market creates negatives; negatives include lower dollar value, which makes items cost more, and increased interest rates, which makes borrowing costs increase.  More importantly, except for necessities, the willingness of producers to spend money stops.  These are normal cause and effect actions.  A long enough period of decreased willingness to spend money and an economic downturn is initiated.

State, City, County, Town, municipal governments are even more pernicious with their plots and plans.  On the local government level, money cannot be printed; hence, debt is entered into and municipal bonds are sold to create money in the private sector, which is then paid to the government in increased taxes, but the money lent to the local government was already spent.  One truth discovered about government, when taxes are increased, money is asked of the voters to borrow.  The truth is, the government body asking for more has already spent the increase, spent the budget, and usually spent twice as much as they are asking the voters to allocate.  Consider special elections for increasing taxes, the money being asked for has been spent, the budget was spent, and now the voters are asked to pay for the cost of the special election.  Many times, the increase being asked for has been spent three to four times before the election is even considered.

Poor fiscal planning increases debt by decreasing the value of the original municipal bonds, and the government has to borrow more to get relatively close to the value of the first municipal bond sold.  Note, municipal bonds are considered as debt to the local government and as green money non-liquid assets to the purchaser; municipal bonds are able to be bought and sold on the private market.  Government focuses upon the holder of the most bonds; because elected leaders are focused upon the holders of the most bonds, citizens bear no weight in being heard.  Money talks!

Municipal bonds, in several different locales, can be held as unseen debt, or black money kept on other books, not currently open to the public.  The monies owed are not considered red money, because there is no plan by those in power to pay these debts; thus, the amount of a city’s debt could be significantly higher than reported.  This is called an unfunded liability.  Unfunded liabilities never have a plan for repayment by those in power.  Unfunded liabilities can be a mixture of a lot of different debts (employee retirement, some municipal bond types, unpaid bills to local service providers, etc.), but the common denominator remains.  No plan is in place to meet that obligation and no budget item covers these debts; thus, black money increases.  Unfunded liabilities are hopes of current politicians on future prosperity, and sometimes, depending upon laws, unfunded liabilities are part of the government’s credit rating. Whether it is, the debt does not go anywhere, might or might not accrue interest, and always is hidden from the taxpayer, who is responsible for paying the bills.

While this explanation is very basic, the lessons contained are sufficient to protect the Image result for images, blue dollarsbottom-line, improve knowledge, and provide opportunity for improving circumstances.  Some key ending points when bottom lines are failing include:  before anything else, look to lost blue money as the cause.  The more blue money is disregarded is exponentially equal to red money increases, and green money evaporation; this formula is set in stone.  Potential blue money is not elusive, but it takes keen observation to protect and grow.  Grow enough blue money and green money multiplies exponentially.

© 2017 M. Dave Salisbury

All Rights Reserved