Archive for April, 2009

Irish Eyes Still Smiling on Business

BizVoice, Business News No Comments »

Mark Esper at the U.S. Chamber (to which we have no affiliation — but many similar objectives, btw) recently offered a blog post about hosting a luncheon for Mary Coughlan, Ireland’s Minister for Enterprise, Trade, and Employment. What’s interesting is not only the work Ireland is doing to enhance its business community, but also how strongly the country’s economy is linked to Americans: 

During her remarks, Ms. Coughlan noted that 45% of all FDI (Foreign Direct Investment) into Ireland comes from the U.S. This should come as no surprise, she added, since Ireland offers a highly pro-business environment: flexible workforce, low taxes, and limited bureaucracy, to name a few things. Ms. Coughlan commented that the government of Ireland is working on all necessary fronts to maintain this pro-business momentum, including an enhanced focus on the need to sustain employment by investing in science, technology and innovation.

In addition, she spoke of recent economic reforms that Ireland has taken in light of the current global financial crisis. These include pursuing smarter regulations, expanding government investment in infrastructure and education, and creating a clearer and simpler tax system. Ms. Coughlan’s comments, as I noted during the luncheon, aligned with the business priorities that espoused here at the U.S. Chamber.

Our own Rebecca Patrick also penned an interesting BizVoice story in 2007 about Ireland’s business-related efforts that will offer more background.

Immigration Reform: Yes or No in 2009

Business News, Government 1 Comment »

President Obama surprised many a few weeks ago by tossing immigration reform back onto the long list of priority issues for 2009.

There is no doubt that the topic, and any potential solutions, belongs at the federal level. Will something be accomplished in this year of stimulus, spending, proposed health care and environmental reform, and much more? I believe not, but that is yet to be seen.

Charles Schumer (D-New York), immigation subcommittee chairman for the Senate Judiciary panel, plans to get the ball rolling this week with a hearing to try and determine the feasibility of legislation to give the estimated 12 million illegal immigrants a path to citizenship.

Supporters want the effort to resume full force in the fall. Opponents cite the difficult economic times and not wanting immigrants taking hard-to-find jobs from others.

Former Federal Reserve chairman Alan Greenspan is expected to testify this week, looking at the economic impact of the legislation.

Popular Columnist has Fun with Hoosier Web Search Company

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Sports columnist Rick Reilly has written about some of the most triumphant accomplishments in all of sport. However, those feats might pale in comparison to the sweat he worked up while working for ChaCha, a Carmel-based Internet/mobile answer service (and Indiana Chamber member).

Then, as if someone had turned on a hose, the questions came flooding across my laptop, soaking my shoes. Where does Emmitt Smith live? (Dallas.) Why were the Montreal Expos called that? (Montreal hosted the ‘67 World’s Fair, called Expo 67.) They came as fast as I could answer. I began to sweat. I was Lucy working the chocolate-factory conveyor belt. Questions fell to the floor as my mouth filled with unchewed answers. In a three-fingered bowling ball, which fingers go in the holes? (Jeez, people!) What’s the longest cricket game ever? (Couldn’t find it.) More sweat. Anyone got a ShamWow? I hit "abort." Bad idea; black mark on my record. Five minutes, no dimes. $0/hour.

I hit "away" under the status bar so I could rest. Next to being Terrell Owens’ publicist, there can be no more stressful way to earn a living.

I wasn’t a very enthusiastic guide after that. I made $3.80 total and received a quality control rating of 70%. That’s a C-minus. They said I didn’t include time zones with games and gave the year the Bears won the Super Bowl but not whom they beat. They really didn’t like my sign-off: "Chatta go!" Mark Malseed, dean of ChaCha’s Search University, told me it didn’t sit well with the Quality Team. "It prefers no variants on the ‘ChaCha’ name," he said.

So I’m the Eddie Gaedel of guides. At least I now know this: In 1939, South Africa and England played the longest cricket match ever, from March 3 until March 14.

That will be 10 cents.

Hat tip to Inside Indiana Business.

Making a Safe Bet Against Gaming Reversal

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Those who know me are aware that I’m not averse to a little "gaming" now and then. In other words, I truly enjoy an annual trip or two to Las Vegas and I’ve managed to find all but one or two of Indiana’s various riverboat/horse track facilities.

The intention is not to start a debate on the morality of gambling. (If you wish to do so, have at it). My reasoning is to point out that I would be shut out of any such activity in Illinois, if professor John Warren Kindt had his way.

The Urbana-Champaign prof testified before state lawmakers that the key to the state’s economic recovery is to ban gambling. That is despite the state’s $1.3 billion in casino tax and lottery revenue in 2008.

It’s not going to happen in Illinois — or Indiana. The "will we have gambling or not?" argument was settled about 20 years ago. Indiana is a big player in the gaming business. Despite numerous calls from lawmakers and others for no further expansion, don’t bet on it.

By the way, I was a winner picking against the professor’s Illini in its NCAA basketball tournament first-round loss to Western Kentucky.

Rep. Flake Proposes End of Donor States

Business News, Government 1 Comment »

Interesting analysis this week from Arizona congressman Jeff Flake and the Heritage Foundation’s Ronald Utt. Their message: donor states — those that pay more in federal fuel taxes than they receive back in highway funds (Indiana has been on that list for years) — need to band together when the transportation bill is reauthorized later this year.

They go so far as to suggest the following:

The most effective reform would be to cut out Washington regulators and bureaucracy altogether. Simply let each state keep the 18.3 cents per gallon federal fuel tax paid by motorists within its borders (as well as the diesel fuel tax paid by truckers). In turn, states would be held fully responsible for their own transportation programs. The upshot: State transportation agencies would have the funds and the flexibility needed to keep things running smoothly within their borders.

D.C.-based central-planning and financial management made sense back in 1956 when the sole task of the new federal program was to build the interstate highway system coast to coast and border to border. But that task was completed in the mid-1980s.

Don’t know if that is the answer, but it does make you think there has to be a better way. Read their full analysis.

States Seek to Batter(y) Up

Business News, Technology 2 Comments »

The competition to be the leader in advanced battery technology is heating up. Indiana, with its recently announced Indiana Energy Systems Network, figures to be a player. The focus at this point is relying on the people and technology that have served the state well in the past in automotive and related industries.

Others are counting on splashier efforts. Texas is reportedly seeking $1 billion from the federal government to construct a lithium ion battery plant. In addition, two Indiana neighbors are also putting their hats in the battery ring.

Michigan is focused on automotive batteries, with various tax credits and incentives geared toward building four manufacturing facilities. Kentucky has a more broad based approach. The state, the universities of Kentucky and Louisville, and Argonne National Laboratory are developing a national research and development center in Lexington. In addition, the National Alliance for Advanced Transportation Batteries (affectionately known as NATTBatt), plans a research, battery plant and headquarters campus 45 miles south of Louisville.

The large scale manufacturing plants seem to be ahead of their time. While the Indiana plan may seem a little slower and safer from afar, it might well prove best in the long run. Wins along the way, such as the addition of Altairnano and its battery productuion efforts in Anderson, could lead to a major victory down the road.

“In-N-Out” Needn’t Describe Staff Turnover for Fast Food Chain

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While we don’t have In-N-Out Burgers here in the Hoosier State, the message in this BusinessWeek article about the restaurant is one that crosses state lines. The article explains how the burger chain has succeeded by making an extra effort to keep staffers happy — and on staff. It’s a bit of a paradigm buster for the fast food industry, and there are some valuable lessons here for any business. If you want to succeed, find good people – and keep them:

But on issues of quality, Rich remained his father’s son (Rich Snyder became president of In-N-Out Burger at the young age of 24, due to the death of his father, Harry). In 1984, in Baldwin Park, Calif., he set up In-N-Out University, a training facility, with the aim of filling the pipeline with qualified managers and reinforcing the company’s focus on quality, cleanliness, and service. About 80% of In-N-Out’s store managers started at the very bottom, picking up trash before rising through the ranks. Rich realized that if he wanted to expand, he needed to put a system in place that would professionalize management.

To attend In-N-Out University, an associate usually had to have worked full-time at a store for a year. In that time, she had to demonstrate initiative, strong decision-making ability, and impressive people skills. A cornerstone of In-N-Out’s limited growth strategy was to expand only as quickly as the management roster would allow. At the university Rich came up with a number of ideas to hone the training process. For instance, a team of field specialists was deployed to motivate and instruct associates. Inspired by pro sports teams, Rich began producing a series of training films and videotaped trainees to critique their performance.

Although the work could be dreary—imagine a four-hour shift spent cleaning up spilled milk shakes—associates were made to feel part of an important enterprise and given opportunities to advance. On-the-job training was wedged in between mealtime rushes, and everyone was given large helpings of feedback. Rich wanted each associate to understand his job and how he could do it better. The result was that many part-timers came for a summer job and stayed for a career…

At one point when Rich was planning the expansion drive, he sought the advice of a food industry consultant. The expert told Rich that if he slashed salaries, In-N-Out could save a "ton of money." This infuriated Rich. Recounting the story, he said it was exactly the kind of advice one would expect "from a guy who wears a suit and who thinks you don’t pay a guy who cooks hamburgers that much money."  Read the rest of this entry »