Non-Profit Leaders: What Three Lessons Would You Share?

Bridgestar posted a  question to a large group on non-profit executive directors and leaders.  The question “What three lessons, as an executive director, would you give someone younger than you?” generated a great number of responses and they selected lessons from the many nonprofit leaders that contributed to the conversation. Their lessons provide interesting insights into what next generation nonprofit leaders should consider as they pursue their professional goals—as well as some good reminders for any social sector leaders.

Darren
Executive Director

  1. Listen. Give opportunity to staff, volunteers, and board to share their observations and ideas with you. Committed people often have great insight.
  2. Be humble. Share successes with others and own your mistakes. Don’t be afraid to own up to dropping the ball.
  3. Beware the tyranny of the urgent. Get out of the office so you can think big picture thoughts where smaller tasks won’t distract you. The “to-do” list will always be there.

Cynthia
President

  1. Be crystal clear about what you want to achieve and have a plan about how to go about achieving your goals: What do you do today, tomorrow, next week, next month?
  2. Be crystal clear in your communications with all your constituents. Be sure they understand in their own language, what you are doing and what you may want of them.
  3. As stated above, listen carefully and intently to those who speak with you and understand what they expect of you.

Lianne
Executive Director

  1. Passion is crucial. You must care for the cause or no one else will.
  2. Get creative. One of the biggest perks of being a nonprofit leader is the freedom to make things happen.
  3. Trust your instincts when hiring and making decisions. It is great to use business tools and resources to help ensure we are on the right track, but instincts are crucial and should not be ignored in favor of these tools.

Sheri
Executive Director

  1. Be clear on what your vision is, what you are asking someone else to do, how they see their part fitting into the larger picture and its importance.
  2. Make sure they understand what you are communicating.
  3. Give them the freedom to make it happen.

Cindy
Principal

  1. Get clear, written expectations from the Board for your performance. Hold yourself―and them―to that document.
  2. Immediately learn what each of your key employees does and how they do it by shadowing them, asking questions, etc.
  3. Set clear, concrete expectations for your direct reports―and if changes are needed, make them early.

Rose
Executive Director

  1. Listen to board and staff concerns/expectations and spend time finding out what each does. You will find out really quickly who is committed, who is doing their job, and what kind of attention each needs.
  2. Get to know your nonprofit. This may sound like a no brainer, but even if you have heard about the organization in the past or have been on the board, you won’t really know the day-to-day activities until you dig through some things. Typically in nonprofits you have to hit the ground running, so you will need to educate yourself, fast.
  3. Within your first three months, give your board a report of the agency. Let them know past successes and challenges, and the agency outlook for the next 12 months (as you found it). Then you can set your goals and they can give you effective input. (Don’t assume your board or staff knows what the past ED was doing.)

Frank
Executive Director

There’s a lot of great advice shared before my post. I hope to offer three things that haven’t been presented:

  1. Be flexible without compromising your convictions. “Blessed are the flexible for they shall not be bent out of shape.”
  2. Learn how to use data to help tell the story of your nonprofit, set goals, forecast revenue, and engage stakeholders. Qualitative data, the stories we share, can be powerful tools and quantitative data is just as powerful. Learn what data should be collected/analyzed and add discussions on said data to your board and staff meeting agendas.
  3. Always seek strategic alliances with other NGOs, for-profits, community members, etc. Sustainability is the big buzzword, but strategic alliances also create knowledge communities, innovation/creativity clusters, and potential funding partners.

Bonus: Schedule time to sharpen your saw. Be intentional with setting aside time to get away from the work to invest in the other portions of your life. This will make you a better leader.

Using Storytelling in Your Leadership

Leadership is about defining paths, making decisions and clearing things out for your followers. That being said, one of the best ways to make your point is telling stories. I know a lot of people thinks storytelling is difficult, or that they don’t have the skills or knowledge to do so.   Let’s take a look at the approach presented in “The Leadership Training Activity Book”, by Lois B. Hart and Charlotte S. Waismann.

  1. Paint the scene: You have to be specific and tell where and when this story occurred.
  2. Identify the =characters or people in the story. Give them Names!!
  3. State their predicament of problem.
  4. Clarify the characters’ intentions. What went through their minds as the tried to handle the problem?
  5. Describe their actions. What did each person do? Be specific.
  6. Include anything in the story that can be of importance to develop the plot. For example, if your talking about a time when you helped your team through a crisis,  you can refer to the franctic emails you received -an perhaps read a short note.
  7. Include a surprise or element of amazement to make the story memorable. For example,  you could show a picture from the before and after of the situation your talking about.
  8. Tell how it ended.

And that’s it. If you follow these simple steps and you practice frequently you will master the “art” of storytelling. But what’s most important, you will have a new tool to express your ideas and make your point.

LEADERSHIP ACTIONS

1. Prepare a story about a time when you were able to achieve something important in your life. Pick one value you want to make stand out. Try to keep it short, but with enough detail to make your point.

2. Tell your story to someone and ask him/her what did they learn from it.

3. Practice, practice, practice. And start using stories to express your ideas.

In Reality, There Are Only Three Job Interview Questions

I read this and I knew how true the title was……

The only three true job interview questions are:

1.  Can you do the job?
2.  Will you love the job?
3.  Can we tolerate working with you?

That’s it.  Those three.  Think back, every question you’ve ever posed to others or had asked of you in a job interview is a subset of a deeper in-depth follow-up to one of these three key questions.  Each question potentially may be asked using different words, but every question, however it is phrased, is just a variation on one of these topics: Strengths, Motivation, and Fit.

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Customer Service: Reducing Damaged Deliveries

I saw this article and thought I’d share it with you. As you are building your business, getting the purchased product to your customers is a large part of your customer service practices and it doesn’t matter if you get your customers’ shipments delivered on time if they arrive at the dock unusable. It is important that you select carriers that train its employees to prevent damages is the first step, but shippers should also take a proactive approach to preparing freight for safe, secure delivery to the end user.    Here is a great article by Paul Lorensen, central area vice president of operations for Con-way Freight, who offers this advice for shippers moving bags, crates, drums, totes, or cartons.

1. Label, label, label.
2. Use four-way pallets made of sound lumber.
3. Protect exposed valves.
4. Use new packaging materials unless otherwise specified.
5. Verify that the bill of lading lists all freight being transported.
6. Cover the ends of threaded pipe or steel tubing.
7. Pack cartons carefully.
8. Use crates constructed with three-way locking corners.
9. Shrink-wrap the freight and the pallet.
10. Consult NMFC standards.

 

CLICK HERE to read the whole article

Worst PR Disaster of All Time: Who is Doing Your Company’s Marketing and Customer Service?

In my many years of starting and building companies, I have learned the importance of building a solid team with people who share your vision and values. In the current internet environment, one of the critical pieces of your management puzzle is marketing and customer service. If you do this well, the customers will spread your goodwill and you will likely be rewarded. However, while today’s skinny business models encourage many functions to be outsourced, you need to know your outsourcing partners, their capabilities and bad-customer-service   pr disastermake sure they share your vision and values.

Here is an example of a customer service nightmare, that has now cost the product manufacturer. In fact, this might be one of the most worst exchanges in the history of public relations. Here’s the article that summarizes the following events: Man orders special video game controller; man asks company’s PR rep where his order is; man becomes frustrated with unprofessional customer service; PR rep insults and belittles customer; customer shares story with Internet; Internet explodes.

Here’s a little more detail: On Dec. 16, a customer known only as “Dave” began a series of e-mail exchanges with Ocean Marketing, the PR firm that represents N-Control, a maker of modified game controllers for hardcore gamers and disabled people. Dave had pre-ordered a pair of Playstation 3 Avenger controllers from N-Control, but discovered that he would not get his controllers in time for Christmas. He e-mailed Ocean Marketing and began an exchange with Paul Christoforo, the company’s PR rep. Dave discovered that new orders for the Avenger would receive $10 off, but he would get no such discount. You will nnot bnelieve the PR guys responses….now its viral on the Internet

 

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Steve Jobs: 7 Rules of Success

I was a big fan of Steve Jobs. I think his entrepreneurial drive and focus makes for great study.  Jobs was a rebel and a misfit and he imparted a sense of purpose and belonging for all the other rebels and misfits out there. Instead of brushing them aside or pointing at them for being weird, he celebrated them. He reminded us that the ones who see the world differently are the ones who change the world. In an instant, all those individual rebels and misfits had a leader. Someone who preached what they believed. For any entrepreneur who dreams of leading like Steve Jobs, here are three must-have characteristics:

  1. Clarity of why you do what you do. To have this, you need a purpose, cause or belief that exists above and beyond the products or services you sell.
  2. Discipline of how you do it. You must hold yourself and your people accountable to a defined set of guiding principles or values.
  3. Consistency of what you do. Everything you say and do must prove what you believe. Every product that Apple made, all their marketing always communicated the same message: Think Different.

I also loved his  his 7 rules for success:

 

1. Do what you love. Jobs once said, “People with passion can change the world for the better.” Asked about the advice he would offer would-be entrepreneurs, he said, “I’d get a job as a busboy or something until I figured out what I was really passionate about.” That’s how much it meant to him. Passion is everything.

2. Put a dent in the universe. Jobs believed in the power of vision. He once asked then-Pepsi President, John Sculley, “Do you want to spend your life selling sugar water or do you want to change the world?” Don’t lose sight of the big vision

3. Make connections. Jobs once said creativity is connecting things. He meant that people with a broad set of life experiences can often see things that others miss. He took calligraphy classes that didn’t have any practical use in his life — until he built the Macintosh. Jobs traveled to India and Asia. He studied design and hospitality. Don’t live in a bubble. Connect ideas from different fields.

4. Say no to 1,000 things. Jobs was as proud of what Apple chose not to do as he was of what Apple did. When he returned in Apple in 1997, he took a company with 350 products and reduced them to 10 products in a two-year period. Why? So he could put the “A-Team” on each product. What are you saying “no” to?

5. Create insanely different experiences. Jobs also sought innovation in the customer-service experience. When he first came up with the concept for the Apple Stores, he said they would be different because instead of just moving boxes, the stores would enrich lives. Everything about the experience you have when you walk into an Apple store is intended to enrich your life and to create an emotional connection between you and the Apple brand. What are you doing to enrich the lives of your customers?

6. Master the message. You can have the greatest idea in the world, but if you can’t communicate your ideas, it doesn’t matter. Jobs was the world’s greatest corporate storyteller. Instead of simply delivering a presentation like most people do, he informed, he educated, he inspired and he entertained, all in one presentation.

7. Sell dreams, not products. Jobs captured our imagination because he really understood his customer. He knew that tablets would not capture our imaginations if they were too complicated. The result? One button on the front of an iPad. It’s so simple, a 2-year-old can use it. Your customers don’t care about your product. They care about themselves, their hopes, their ambitions. Jobs taught us that if you help your customers reach their dreams, you’ll win them over.

There’s one story that I think sums up Jobs’ career at Apple. An executive who had the job of reinventing the Disney Store once called up Jobs and asked for advice. His counsel? Dream bigger. I think that’s the best advice he could leave us with. See genius in your craziness, believe in yourself, believe in your vision, and be constantly prepared to defend those ideas.

List of Private Equity Firms in Chicago in 2011

Someone sent me this list of local private equity firms operating in the Chicagoland area and I thought I’d share it with you.  Private equity firms in Chicago vary in their investment industries, region, size and many other factors but there is a common goal among all private equity firms: to take a company with potential for growth and provide the resources necessary to realize that potential. Private equity firms do this by injecting capital, prescribing a new strategy, restructuring the company or adding new talent to the existing management team. The success of a private equity firm depends on its ability to realize the growth potential of its investments and thereby satisfying investors with profitable returns from the investment.

Screening Criteria

1) Industry Classifications: Diversified Financials (Primary)
2) Business Description: Keyword: “private equity”
3) Company Status: Operating OR Operating Subsidiary OR Operating and Operating Subs
4) Geographic Locations: Chicago Area (Primary)

Access Value Investors LLC
Acuity Capital Partners, LLC
Adams LaSalle Realty
Adams Street Partners, LLC
Advanced Equities Financial Corp.
Advocate Asset Management, LLC
Aldine Capital Partners, Inc.
Alpha Capital Partners, Ltd.
Anderson Pacific Corporation
Arbor Private Investment Company
Ark Capital Management
Ascent Equity Capital, Inc.
Aspire Capital Partners, LLC
Baird Private Equity Group
Bank One Capital Markets, Inc.
Becker, Burke Associates Incorporated
Beecken Petty O’Keefe & Company
Benford Capital Partners, LLC
Blue River Partners Management, L.L.C.
Bolder Capital, LLC
Brumlik Howton Partners, LLC
Burke America
Caisson Capital Partners
Calder Capital Partners
Caldera Capital Partners, LLC
Cardinal Growth, L.P.
Chicago Growth Partners
Chicago Venture Partners, L.P.
CHS Capital
CIVC Partners, L.P.
CM Acquisitions LLC
Cognitive Capital Partners
Continental Investors LLC
Cook Associates, Inc.
Cornerstone Capital Holdings, LLC
Cressey & Company LP
Crossroads Capital Partners LLC
Dixon Midland Company LLC
DN Partners LLC, Investment Arm
Draupnir LLC
Dunrath Capital, Inc.
Ellipse Capital LLC
Environmental & Information Technology Private Equity Fund
Equity Group Investments, LLC
Equity International
Expedition Capital Partners LLC
First Analysis Corporation
First Continental Trading, Asset Management
Flexpoint Ford, LLC
Foundation Growth Investments LLC
Frontenac Company
Gaslight Equity Group, LLC
GE Antares Capital
Geneva Glen Capital, LLC
Glencoe Food Group
Goense & Company LLC
Golub Capital BDC, Inc. (NasdaqGS:GBDC)
Granite Creek Partners, LLC
Granite Hall Partners, Inc.
GrowthPath Capital, LLC
Gryffindor Capital Partners, L.L.C.
GTCR Golder Rauner, LLC
Guggenheim Aviation Partners
Healthstrat Capital Advisors, LLC, Investment Arm
High Street Capital
Hispania Capital Partners, LLC
Judges’ Retirement System of Illinois
Lake Capital
Lake Pacific Partners, LLC
LaSalle Capital Group, L.P.
Lincoln Park Capital
Linden LLC
Lodging Capital Partners, LLC
Longreach Capital, LLC
Loyola University of Chicago Endowment
LSC Healthcare Partners
Lurie Investment Fund, LLC
Madison Capital Partners
Madison Dearborn Partners, LLC
Madison Equity Associates, LLC
Maranon Capital, L.P.
Marksman Venture Partners, LLC
Marquette Associates, Inc.
Matthew Pritzker Company
McNally Capital, LLC
Merit Capital Partners
Mesirow Financial Private Equity
MFC Capital Funding, Inc.
Midwest Mezzanine Funds
Monroe Capital LLC
Mosaix Ventures
Muller & Monroe Asset Management, LLC
Navigant Consulting Inc., Certain Corporate Finance Assets
New Trier Partners, LLC
Nicolet Capital Investors, LLC
North American Funds LLC
Northwestern Memorial Hospital, Endowment Fund
Omni-Reed Group Inc.
Onyx Capital Ventures, L.L.C.
Oxford Capital Group, LLC
P.A.G. Capital Partners, LLC
Pekin Singer Strauss Asset Management, Inc.
Pennington Partners & Co.
Pfingsten Partners, L.L.C.
Prairie Capital, L.P.
Prism Capital Corporation
Private Equity Growth Advisors, LLC
Prospect Partners, LLC
Rail World, Inc.
RCP Advisors, LLC
Richland, Gordon & Company
Rock Gate Partners, LLC
Roseworth Capital LLC
Rush Presbyterian-St. Luke’s Medical Center Endowment
Sapphire Industrial Group, LLC
SE Capital, LLC
Shore Capital Partners, LLC
SilkRoad Equity LLC
SRS Investments, LLC
Summit Line Capital, LLC
Svoboda Capital Partners LLC
Synergy Financial Partners, LLC
Synetro Group, L.L.C.
Talon Asset Management, LLC
The Banc Funds Company, L.L.C.
The Edgewater Funds
The Endeavor Companies, LLC
The Heico Companies LLC
The Pritzker Group
Thoma Bravo, LLC
Thoma Cressey Bravo
Thomas Blaige & Company LLC
Thurston Group, LLC
Titan Equity Partners, LLC
TMB Industries
Transaction Risk Solutions, Inc.
Transwestern Investment Company, L.L.C.
Twin Bridge Capital Partners
UIB Capital Inc
University of Chicago Endowment
Valor Equity Partners L.P.
Victory Park Capital Advisors, LLC
Walton Street Capital, L.L.C.
Water Street Healthcare Partners
Water Tower Capital, Investment Arm
Waterton Associates L.L.C.
Waud Capital Partners, L.L.C.
West Family Investments
WexTrust Capital, LLC
White Cap Private Equity Management, LLC
William Blair & Company, L.L.C.
William Harris Investors, Inc.
Willis Stein & Partners, L.L.C.
Wind Point Partners
Winona Capital Management, LLC
WMG Capital
WP Global Partners, Inc.
Baird Capital Partners
Baird Venture Partners
Banc of America Capital Access Funds
CC Industries, Inc.
CIT Rail Resources
Citadel Limited Partnership
Concentric Equity Partners, L.P.
Credit Suisse Securities LLC – Holt
Glencoe Capital, LLC
Hewitt EnnisKnupp
LaSalle Bank National Association, Asset Management Arm
Madison Capital Funding LLC
Northern Trust Global Investments
Oxford Capital Group, LLC, Private Equity
PPM America Capital Partners, LLC
Prudential Capital Group, L.P.
Stout Risius Ross Advisors, LLC
Valor Home Health Care, LLC
WHI Capital Partners

Who Pays What Amount of Taxes in the U.S?

FROM IRS:       In 2009, according to the IRS,  taxpayers who made $1 million or more paid 24.4 percent of their income in federal income taxes on average; those making $100,000 to $125,000 paid 9.9 percent on average; those making $50,000 to $60,000 paid 6.3 percent on average.

 

The New Heroes: Social Entrepreneurs

I love this new series on PBS about ordinary folks who have a passion to make a difference in the world.  The New Heroes series tells the dramatic stories of 14 daring people from all corners of the globe who, against all odds, are successfully alleviating poverty and illness, combating unemployment and violence, and bringing education, light, opportunity and freedom to poor and marginalized people around the world.     Also known as “social entrepreneurs,” they develop innovations that bring life-changing tools and resources to people desperate for viable solutions. What is possible? You’d be surprised. Take a journey into a world where people take action to make a big difference.

 

What is a Social Entrepreneur?

A social entrepreneur identifies and solves social problems on a large scale. Just as business entrepreneurs create and transform whole industries, social entrepreneurs act as the change agents for society, seizing opportunities others miss in order to improve systems, invent and disseminate new approaches and advance sustainable solutions that create social value.  Unlike traditional business entrepreneurs, social entrepreneurs primarily seek to generate “social value” rather than profits. And unlike the majority of non-profit organizations, their work is targeted not only towards immediate, small-scale effects, but sweeping, long-term change.  The job of a social entrepreneur is to recognize when a part of society is stuck and to provide new ways to get it unstuck. He or she finds what is not working and solves the problem by changing the system, spreading the solution and persuading entire societies to take new leaps.    Identifying and solving large-scale social problems requires a committed person with a vision and determination to persist in the face of daunting odds. Ultimately, social entrepreneurs are driven to produce measurable impact by opening up new pathways for the marginalized and disadvantaged, and unlocking society’s full potential to effect social change.   The past two decades have seen an explosion of entrepreneurship and a healthy competition in the social sector, which has discovered what the business sector learned from the railroad, the stock market and the digital revolution: Nothing is as powerful as a big new idea if it is in the hands of a first class entrepreneur.

This revolution is fundamentally changing the way society organizes itself and the way we approach social problems.    The stories featured in The New Heroes showcase the work of social entrepreneurs whose innovations are bringing electricity, water, medicine and other life-changing tools and resources to people in the developing world. Each story illustrates the results possible when an innovative idea is coupled with a strategy for action and an entrepreneur’s indomitable will.

 

CLICK HERE TO LEARN MORE

From AP: FACT CHECK: Is Obama’s Jobs Plan Paid For? Seems Not

We have got to get a place where our leaders do what is best for the country, not is what is best for their careers.  President Barack Obama’s promise Thursday that everything in his jobs plan will be paid for rests on highly iffy propositions.  It will only be paid for if a committee he can’t control does his bidding, if Congress puts that into law and if leaders in the future – the ones who will feel the fiscal pinch of his proposals – don’t roll it back.   Underscoring the gravity of the nation’s high employment rate, Obama chose a joint session of Congress, normally reserved for a State of the Union speech, to lay out his proposals. But if the moment was extraordinary, the plan he presented was conventional Washington rhetoric in one respect: It employs sleight-of-hand accounting.   A look at some of Obama’s claims and how they compare with the facts:

OBAMA: “Everything in this bill will be paid for. Everything.”

THE FACTS: Obama did not spell out exactly how he would pay for the measures contained in his nearly $450 billion American Jobs Act but said he would send his proposed specifics in a week to the new congressional supercommittee charged with finding budget savings. White House aides suggested that new deficit spending in the near term to try to promote job creation would be paid for in the future – the “out years,” in legislative jargon – but they did not specify what would be cut or what revenues they would use.   Essentially, the jobs plan is an IOU from a president and lawmakers who may not even be in office down the road when the bills come due. Today’s Congress cannot bind a later one for future spending. A future Congress could simply reverse it.    Currently, roughly all federal taxes and other revenues are consumed in spending on various federal benefit programs, including Social Security, Medicare, Medicaid, veterans’ benefits, food stamps, farm subsidies and other social-assistance programs and payments on the national debt. Pretty much everything else is done on credit with borrowed money.    So there is no guarantee that programs that clearly will increase annual deficits in the near term will be paid for in the long term.

OBAMA: “Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans, including many who sit here tonight.”    THE FACTS: Obama’s proposed cut in the Social Security payroll tax does seem likely to garner significant GOP support. But Obama proposes paying for the plan in part with tax increases that have already generated stiff Republican opposition.    For instance, Obama makes a pitch anew to end Bush-era tax cuts for the wealthiest Americans, which he has defined as couples earning over $250,000 a year or individuals over $200,000 a year. Republicans have adamantly blocked what they view as new taxes. As recently as last month, House Republicans refused to go along with any deal to raise the government’s borrowing authority that included new revenues, or taxes.

OBAMA: “It will not add to the deficit.”

THE FACTS: It’s hard to see how the program would not raise the deficit over the next year or two because most of the envisioned spending cuts and tax increases are designed to come later rather than now, when they could jeopardize the fragile recovery. Deficits are calculated for individual years. The accumulation of years of deficit spending has produced a national debt headed toward $15 trillion. Perhaps Obama meant to say that, in the long run, his hoped-for programs would not further increase the national debt, not annual deficits.

OBAMA: “The American Jobs Act answers the urgent need to create jobs right away.”

THE FACTS: Not all of the president’s major proposals are likely to yield quick job growth if adopted. One is to set up a national infrastructure bank to raise private capital for roads, rail, bridges, airports and waterways. Even supporters of such a bank doubt it could have much impact on jobs in the next two years because it takes time to set up. The idea is likely to run into opposition from some Republicans who say such a bank would give the federal government too much power. They’d rather divide money among existing state infrastructure banks.

 

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Economists Survey: Spending Cuts Needed, Not Tax Increases

According to a survey done by the National Association for Business Economics, the majority of economists believe that the federal deficit should be reduced only or primarily through spending cuts. The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.  As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system and simplifying tax rates and exemptions. About 15 percent said the government should enact tough spending caps and cut discretionary spending.

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Whoa! US Debt Up $239 Billion the Day after Debt Deal

US-National-Debt-Chart-1940-to-2011

Click to Enlarge

U.S. debt shot up $239 billion on Tuesday — the largest one-day bump in American history — as the government flexed the new borrowing room it earned in this week’s debt-limit increase deal.  The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day. That increase puts the government already remarkably close to the new debt limit of $14.694, which means one day’s new borrowing ate up 60 percent of the $400 billion in initial debt room Congress granted the president this week. Debt numbers go up and down regularly, depending on what the Treasury Department is redeeming or issuing on any day, but have been on a steep upward trend for the past decade as spending has ballooned and revenues have fluctuated.

The Gross National Debt

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White House Quietly Signals There Will Be No Default

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn’t raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen. In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn’t raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. A senior banking official told FOX Business that administration officials have provided guidance to them that even though a default is off the table, a downgrade “is a real possibility for no other reason than S&P and Moody’s have to cover (themselves) since they’ve been speaking out on the debt cap so much.”
This guidance is a big reason why Wall Street has largely dismissed the possibility of default, and though the markets have been jittery amid the talk of default, they haven’t imploded as would be the case, many economists fear, if the nation missed a payment on its debt.

“They also know they can pay the debt with cash on hand,” this official told FOX Business. The Treasury collects around $2 trillion in tax revenues, and is scheduled to pay out $200 billion in interest to bond holders. In order to meet its obligations to contractors, social security recipients and others, the administration would have to raise another $1 trillion either through cuts, higher tax revenues, the issuance of debt or a combination of all three.

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FREE Copy of One of Francis Chan’s Books

Any Francisc Chan fans out there?  Right now, you can get a FREE Copy of Francis Chan Books. You can receive one free copy of either Crazy Love, Forgotten God, The Big Red Tractor, Halfway Herbert, or Ronnie Wilson’s Gift.  I ordered my free copy of Crazy Love!

Warren Buffett Has the Answer

Warren Buffett, in a recent interview with CNBC, offered one of the best quotes in all the drama about the debt ceiling:

“I could end the deficit in 5 minutes,” he told Becky Quick.
“You just pass a law that says, that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”

 

Do You Believe 80% of US Citizens Want Increased Taxes?

I am not sure what country our President lives in but I think his numbers are way off…

President Obama on Friday July 15 kept up the pressure on Republicans to agree to revenue increases in a deal to raise the debt ceiling, claiming 80 percent of the public supports Democrats’ demand for tax increases. “The American people are sold,” Obama said. “The problem is members of Congress are dug in ideologically.”

Three Critical Traits To Be a Successful CEO

Leaders today need to be at home navigating a ship through 40-foot waves — oceans that will never again be serene — and still be able to guide their crew safely from port to port. They must remain highly effective in an environment of extraordinary, ongoing stress.  In researching their new book, Better Under Pressure, the writers sought to identify the qualities that define leaders who excel in this environment of duress.  To perform their best in today’s turbulent atmosphere, leaders must possess this highly unusual set of three traits that often run counter to natural human behavior. These attributes are catalysts for the mastery displayed by the world’s best CEOs — and, together, they add up to a new definition of leadership:

  1. Realistic optimism. Leaders with this trait possess confidence without self-delusion or irrationality. They pursue audacious goals, which others would typically view as impossible pipedreams, while at the same time remaining aware of the magnitude of the challenges confronting them and the difficulties that lie ahead.
  2.  

  3. Subservience to purpose. Leaders with this ability see their professional goal as so profound in importance that their lives become measured in value by how much they contribute to furthering that goal. What is more, they must be pursuing a professional goal in order to feel a purpose for living. In essence, that goal is their master and their reason for being. They do not ruminate about their purpose, because their mind finds satisfaction in its occupation with their goal. Their level of dedication to their work is a direct result of the extraordinary, remarkable importance they place on their goal.
  4.  

  5. Finding order in chaos. Leaders with this trait find taking on multidimensional problems invigorating, and their ability to bring clarity to quandaries that baffle others makes their contributions invaluable.

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Interesting US Unemployment Rates in March, 2011

Unemployment dropped in two-thirds of U.S. states in March of 2011, the Labor Department said Tuesday. However, it looks Connecticut and New Jersey climbed among others.  That’s the most to see a decline since June. Below is each state’s unemployment rate last month, compared to the previous month and a year ago.

 

State unemployment rates
Figures are percentages
March Feb. March
2011 2011 2010
Alabama 9.2 9.3 10
Alaska 7.4 7.6 8.2
Arizona 9.5 9.6 10.1
Arkansas 7.8 7.8 7.9
California 12 12.1 12.4
Colorado 9.2 9.3 9
Connecticut 9.1 9 9.2
Delaware 8.4 8.5 8.6
Washington, D.C. 9.5 9.5 10.1
Florida 11.1 11.5 11.3
Georgia 10 10.2 10.2
Hawaii 6.3 6.3 6.8
Idaho 9.7 9.7 9
Illinois 8.8 8.9 11
Indiana 8.5 8.8 10.6
Iowa 6.1 6 6.1
Kansas 6.8 6.8 7.2
Kentucky 10.2 10.4 10.8
Louisiana 8.1 7.9 7.2
Maine 7.6 7.5 8.3
Maryland 6.9 7.1 7.6
Massachusetts 8 8.2 8.7
Michigan 10.3 10.4 13.3
Minnesota 6.6 6.7 7.6
Mississippi 10.2 10.2 10.8
Missouri 9.1 9.4 9.6
Montana 7.4 7.4 7.1
Nebraska 4.2 4.3 4.9
Nevada 13.2 13.6 14.8
New Hampshire 5.2 5.4 6.4
New Jersey 9.3 9.2 9.7
New Mexico 8.1 8.7 8.2
New York 8 8.2 8.8
North Carolina 9.7 9.8 11.3
North Dakota 3.6 3.7 4
Ohio 8.9 9.2 10.5
Oklahoma 6.1 6.5 7.3
Oregon 10 10.2 11
Pennsylvania 7.8 8 8.8
Rhode Island 11 11.2 11.8
South Carolina 9.9 10.2 11.5
South Dakota 4.9 4.8 5.1
Tennessee 9.5 9.5 10.2
Texas 8.1 8.2 8.2
Utah 7.6 7.7 8
Vermont 5.4 5.6 6.6
Virginia 6.3 6.4 7.1
Washington 9.2 9.1 9.9
West Virginia 9.1 9.4 8.8
Wisconsin 7.4 7.4 9
Wyoming 6.2 6.2 7.3