City Council Leaders this one is for you. As we stand on the cusp of continued development here in the North Jefferson area, I would like to offer sincere and heartfelt congratulations to all who hold an elected position in our community. Now get busy.
We have discussed here before that when accepting an appointment to be on a board or agreeing to hold membership on a council as an elected official is not the time for a Cinderella appointment or a full blown exhibition of the Peter Principle. It is indeed a privilege and one that should be approached with strength and humility. The challenge here is to realize that all goals and jobs come with training and this role is not any different. Please seek out tools to help you understand how to do this job at a very high level, and to grow in the value that you bring.
You will be under scrutiny, but that is not a bad thing. Think of scrutiny as a fancy word for campaigning and holding people to account for what they said or should be doing. You are of course representatives of the people to the town hall. You are not representatives of the town hall to the people.
And of course, no one will tell you what to do, but they will blame you when something does not get done. Previous New York Mayor Rudolph Giuliani put it best when he said, “Give me a leader whose nose has been bloodied over someone who is totally perfect.”
Sometimes, you may be told what to do, but beware the snare of “consensus” thinking. According to Margaret Thatcher, “Consensus is the negation of leadership.” Most think this fine lady knows what she is talking about still. Even President Ronald Reagan took the time to listen to her.
Your purpose is to not do things to people, as it is to engage people in the change. It can be seen in something as fundamental as a Community Development Plan. Did the plan come from some educated and high advised third party? Is it dusty and twenty years old? That may be fine, but it will only be effective if the city leaders get buy-in from the community. Simply put, take the time to ask. This means recognizing that people are the heart of directing resources and making decisions, therefore people, rather than strategies or theories should be at the heart of transforming outcomes in a place.
As our North Jefferson area continues to grow and develop, we cannot take for granted what it will look like in twenty years. As Freud would say, there are no accidents. There are also many political realities to continue to simmer and ponder upon as we move into the next election cycle. Mr. Councilman, do you have a succession plan? Ms. Council Woman how will you control the change? And can you both recognize the talent that you will need to end up where you aim? Groucho Marx said it well when he quipped, “Only one man in 1,000 is a Leader of men, and the other 999 follow a woman.”
AdVISE
Thursday, June 23, 2011
Creating Value and Trust
You do not have to look far here in the North Jefferson Area to find plenty of post Tornado recovery work. Now would be a good time to assess where the recovery falls with respect to the formal Comprehensive Development plans that exist. A bit troubling may be the realization that those plans are several years, and in many cases decades old, and have never been revisited or revamped. Now is a perfect time to take an assessment of those Comprehensive Development Plans and view them in light of the community mission and vision. Indeed, if you don’t know what you are aiming for, then you may hit just about anything. All of this plays into the ideas of your brand, your image, and ultimately how you are perceived by your customers. Or in the case of a city, or the entire North Jefferson area, how the growth, recovery and stability are viewed by local citizens and outside supporters. Is our leadership trusted? Do we have a credible and believable reputation?
Not long ago, trust and reputation was the domain of the public relations department. Marketing concerned itself with spending huge sums to maintain "share of voice" which is marketing speak for outspending rivals to drive brand awareness and endlessly reminding consumers of the "unique selling proposition".
Now, marketers are waking up to an awareness that in the world of branding, trust is the most perishable of assets. Polling in recent months shows that increasing numbers of consumers distrust not just the obvious suspects—the banks, politicians, insurance—but business and corporations as a whole. The shift in sentiment is forcing companies from Ford Motor to American Express to tweak marketing and focus on rebuilding credibility. Trust is what drives profit margin and share price and it is what consumers are looking for and what they share with one another. In the arena of local government, reaching out to the community to inform them about not only meetings, but meeting content, results and plans is key as well.
The recovery plan, just as is the Comprehensive Development Plan, is pulled from a systematic planning process. It should be based on sound technical studies, it should facilitate community involvement, it should be open to continuous monitoring, and it should be periodically updated.
It is key that recovery look at not only zoning, but future land use. Please keep in mind that an expert in real estate or real estate law may not be the best expert in land use law, as the two are different skills and area of expertise.
Think about what this means for your city and community. Perhaps you find that old approaches don’t work as well as they used to for you. Don’t just blame it on the recession, job insecurity and hammered home values as to why business and political dynamics are changing.
Techniques and share of voice strategy are easily copied by your competition, but they can’t copy your reputation or recreate the trust that you own with your customers or constituents. Mercifully, you control that. It is yours to grow or loose.
As you move into your week, take a minute to think about what your community and customers expect from you or your product. If you miss the mark on expectations, no matter how well you do, you fail. This sets a poor outcome for trust, and really makes your job of creating a loyal customer more difficult. The old saying about under promising and over delivering really rings true here.
Not long ago, trust and reputation was the domain of the public relations department. Marketing concerned itself with spending huge sums to maintain "share of voice" which is marketing speak for outspending rivals to drive brand awareness and endlessly reminding consumers of the "unique selling proposition".
Now, marketers are waking up to an awareness that in the world of branding, trust is the most perishable of assets. Polling in recent months shows that increasing numbers of consumers distrust not just the obvious suspects—the banks, politicians, insurance—but business and corporations as a whole. The shift in sentiment is forcing companies from Ford Motor to American Express to tweak marketing and focus on rebuilding credibility. Trust is what drives profit margin and share price and it is what consumers are looking for and what they share with one another. In the arena of local government, reaching out to the community to inform them about not only meetings, but meeting content, results and plans is key as well.
The recovery plan, just as is the Comprehensive Development Plan, is pulled from a systematic planning process. It should be based on sound technical studies, it should facilitate community involvement, it should be open to continuous monitoring, and it should be periodically updated.
It is key that recovery look at not only zoning, but future land use. Please keep in mind that an expert in real estate or real estate law may not be the best expert in land use law, as the two are different skills and area of expertise.
Think about what this means for your city and community. Perhaps you find that old approaches don’t work as well as they used to for you. Don’t just blame it on the recession, job insecurity and hammered home values as to why business and political dynamics are changing.
Techniques and share of voice strategy are easily copied by your competition, but they can’t copy your reputation or recreate the trust that you own with your customers or constituents. Mercifully, you control that. It is yours to grow or loose.
As you move into your week, take a minute to think about what your community and customers expect from you or your product. If you miss the mark on expectations, no matter how well you do, you fail. This sets a poor outcome for trust, and really makes your job of creating a loyal customer more difficult. The old saying about under promising and over delivering really rings true here.
Wednesday, May 18, 2011
Value Creation and Keeping Customers
Getting and keeping customers is an expensive endeavor and keeping the doors open in a time of local crisis makes it even tougher. The average U. S. business loses half its customers in five years. Generating a new customer costs five times as much as keeping a current one and firms pay a steep price when customers stray to other brands, or stray to other communities to make their purchase. In a slow economy, creating unsurpassed value for a customer so that they stay with you is even more important. So how do we create value?
Value creation in a firm takes a minute to think about. Ask yourself this question: Why does an individual make a purchase? The short answer is to fill a need. But the real answer is found in what motivates a person to do something to fulfill that need.
Psychologist A. H. Maslow developed a theory that characterized needs and arranged them in a hierarchy to reflect their importance called Maslow’s Hierarchy of Needs. Maslow identified five levels of needs, beginning with physiological needs and progressing to the need for self-actualization.
Physiological needs are the most basic. They fulfill the needs for survival like food, water, shelter and clothing. Pepperidge Farm French Toast Swirl Bread appeals to this need by stating “It doesn’t go with breakfast. It is breakfast.” Campbell’s Soup hits the mark with “Mm, Mm, good!” as does, “Got Milk?” Food is the most basic of need and as we like to say here, “Full Stomach, Open Mind.”
Next up the ladder you find safety needs which include security, protection, and avoidance of the unexpected. State Farm Insurance appeals to this need by saying, “Like a good neighbor State Farm is there.” In the wake of our damage recovery, maintaining a sense of security in our communities is a key element of recovery. The presence of the National Guard as well as the local elevated sense of social responsibility has been a critical element of pulling us up by pulling us together.
Third are social and belongingness needs which include the need to be accepted by an individual or group. Think about Olive Garden and their tagline, “When you’re here, you’re family.” We also see this come alive with the wonderful belongingness and leadership given by our Churches to support our tornado relief efforts. Many of them continue to request anonymity in their efforts, but rest assured, we know who you are and we thank you!
Fourth is the esteem need such as a need for a sense of accomplishment, the need for respect from others and the need to perform better than others. This is a universal human trait that emerges after lower order needs are satisfied. This may present in the purchase made to upgrade an airline seat, to have premium concert tickets, or as Sony touts, “Like no other.” I have found myself reassessing how I view this for myself in the events of the past few weeks and those in our community. Even in tragedy, this need is still obvious all around. I am reminded of Shakespeare and Twelfth Night where we read that “some are born great, some achieve greatness, and some have greatness thrust upon them.” If you are a leader in your community, please remember that the best help may come from the least obvious place.
Lastly, and also the very top need, is self-actualization. This is the desire for a person to reach their full potential. Many educational tours appeal to this need with an appeal to a person’s talent or capabilities. It may include a trip that includes a course of study such as language, history or cooking. Nike’s famous “just do it” is right on the mark for reaching potential. Self-actualization appeals to the desire to experience and learn something new such as at GE where “we bring good things to life.” Or, it may appear as the nice neighbor that you really don’t know who shows up with his chainsaw to help clear some trees from your driveway. And he also offers to get you some water and a sandwich. How cool and inspiring is that!
Understanding how your product fills one of these needs, and fits into the experience desired by your customer will help you to understand how to motivate that customer to act on a purchase. In light of the damage to our communities and continued recovery, I am reminded that this is not just about products, but it is in fact also about US. It is about our elected officials, our churches, and all the elements of our community. It determines who we are and how we react when the chips are down.
Value creation in a firm takes a minute to think about. Ask yourself this question: Why does an individual make a purchase? The short answer is to fill a need. But the real answer is found in what motivates a person to do something to fulfill that need.
Psychologist A. H. Maslow developed a theory that characterized needs and arranged them in a hierarchy to reflect their importance called Maslow’s Hierarchy of Needs. Maslow identified five levels of needs, beginning with physiological needs and progressing to the need for self-actualization.
Physiological needs are the most basic. They fulfill the needs for survival like food, water, shelter and clothing. Pepperidge Farm French Toast Swirl Bread appeals to this need by stating “It doesn’t go with breakfast. It is breakfast.” Campbell’s Soup hits the mark with “Mm, Mm, good!” as does, “Got Milk?” Food is the most basic of need and as we like to say here, “Full Stomach, Open Mind.”
Next up the ladder you find safety needs which include security, protection, and avoidance of the unexpected. State Farm Insurance appeals to this need by saying, “Like a good neighbor State Farm is there.” In the wake of our damage recovery, maintaining a sense of security in our communities is a key element of recovery. The presence of the National Guard as well as the local elevated sense of social responsibility has been a critical element of pulling us up by pulling us together.
Third are social and belongingness needs which include the need to be accepted by an individual or group. Think about Olive Garden and their tagline, “When you’re here, you’re family.” We also see this come alive with the wonderful belongingness and leadership given by our Churches to support our tornado relief efforts. Many of them continue to request anonymity in their efforts, but rest assured, we know who you are and we thank you!
Fourth is the esteem need such as a need for a sense of accomplishment, the need for respect from others and the need to perform better than others. This is a universal human trait that emerges after lower order needs are satisfied. This may present in the purchase made to upgrade an airline seat, to have premium concert tickets, or as Sony touts, “Like no other.” I have found myself reassessing how I view this for myself in the events of the past few weeks and those in our community. Even in tragedy, this need is still obvious all around. I am reminded of Shakespeare and Twelfth Night where we read that “some are born great, some achieve greatness, and some have greatness thrust upon them.” If you are a leader in your community, please remember that the best help may come from the least obvious place.
Lastly, and also the very top need, is self-actualization. This is the desire for a person to reach their full potential. Many educational tours appeal to this need with an appeal to a person’s talent or capabilities. It may include a trip that includes a course of study such as language, history or cooking. Nike’s famous “just do it” is right on the mark for reaching potential. Self-actualization appeals to the desire to experience and learn something new such as at GE where “we bring good things to life.” Or, it may appear as the nice neighbor that you really don’t know who shows up with his chainsaw to help clear some trees from your driveway. And he also offers to get you some water and a sandwich. How cool and inspiring is that!
Understanding how your product fills one of these needs, and fits into the experience desired by your customer will help you to understand how to motivate that customer to act on a purchase. In light of the damage to our communities and continued recovery, I am reminded that this is not just about products, but it is in fact also about US. It is about our elected officials, our churches, and all the elements of our community. It determines who we are and how we react when the chips are down.
Monday, May 2, 2011
Business Disaster Preparation
We all know that “Hind Sight” is indeed “20/20”. We know it now more than ever here in the North Jefferson Business Community. As many in our area of digging out and moving on after this weeks devastating weather, it is never really too late to look at your emergency business disaster plan. In fact, now may be a great time to look at not only your business disaster preparation, but also the readiness of your church, your civic organization and of course your local municipality. Your employees and co-workers are your business's most important and valuable asset. Here are some procedures you can put in place before a disaster, but you should also learn about what people need to recover after a disaster.
It is possible that your staff will need time to ensure the well-being of their family members, but getting back to work is important to the personal recovery of people who have experienced disasters. It is important to re-establish routines, when possible.
Here are some tips to get you started or to improve your plan that may already be in place.
Two-way communication is critical before, during and after a disaster. You should include emergency preparedness information in newsletters, on company intranet, periodic employee emails and other internal communications tools. Consider setting up a telephone calling tree, a password-protected page on the company website, an email alert or a call-in voice recording to communicate with employees in an emergency. Designate an out-of-town phone number where employees can leave an "I'm Okay" message in a catastrophic disaster. It is good to provide all co-workers with wallet cards detailing instructions on how to get company information in an emergency situation. Include telephone numbers or Internet passwords for easy reference. Maintain open communications where co-workers are free to bring questions and concerns to company leadership. Also, talk to co-workers with disabilities. If you have employees with disabilities ask about what assistance is needed. People with disabilities typically know what assistance they will need in an emergency. Understand how to alert people who cannot hear an alarm or instructions.
It is recommended that you have both a battery-powered commercial radio and a weather radio with an alert function. The weather radio can alert you to weather emergencies or announcements from the Department of Homeland Security. The commercial radio is a good source for news and information from local authorities.
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, computer backups, emergency or law enforcement contact information and other priority documents in a waterproof, fireproof portable container. Store a second set of records at an off-site location.
Talk to your co-workers about what emergency supplies the company can feasibly provide, if any, and which ones individuals should consider keeping on hand. Some suggested emergency supplies include but are not limited to water, a three day supply of non-perishable food, battery powered radios and extra batteries, flashlights and of course, extra batteries for them. A First Aid kit, with a signal whistles along with some dust or filter masks are good to have on hand. Moist towelettes for sanitation, a wrench or pliers to turn off utilities, a can opener for food, and some good plastic sheeting and duct tape to seal off a room if required. Lastly, some garbage bags and plastic ties for personal sanitation.
There are several sites with clear instruction on creating your emergency plan. You can begin at Ready.gov and expand your search from there.
It is possible that your staff will need time to ensure the well-being of their family members, but getting back to work is important to the personal recovery of people who have experienced disasters. It is important to re-establish routines, when possible.
Here are some tips to get you started or to improve your plan that may already be in place.
Two-way communication is critical before, during and after a disaster. You should include emergency preparedness information in newsletters, on company intranet, periodic employee emails and other internal communications tools. Consider setting up a telephone calling tree, a password-protected page on the company website, an email alert or a call-in voice recording to communicate with employees in an emergency. Designate an out-of-town phone number where employees can leave an "I'm Okay" message in a catastrophic disaster. It is good to provide all co-workers with wallet cards detailing instructions on how to get company information in an emergency situation. Include telephone numbers or Internet passwords for easy reference. Maintain open communications where co-workers are free to bring questions and concerns to company leadership. Also, talk to co-workers with disabilities. If you have employees with disabilities ask about what assistance is needed. People with disabilities typically know what assistance they will need in an emergency. Understand how to alert people who cannot hear an alarm or instructions.
It is recommended that you have both a battery-powered commercial radio and a weather radio with an alert function. The weather radio can alert you to weather emergencies or announcements from the Department of Homeland Security. The commercial radio is a good source for news and information from local authorities.
Keep copies of important records such as site maps, building plans, insurance policies, employee contact and identification information, bank account records, supplier and shipping contact lists, computer backups, emergency or law enforcement contact information and other priority documents in a waterproof, fireproof portable container. Store a second set of records at an off-site location.
Talk to your co-workers about what emergency supplies the company can feasibly provide, if any, and which ones individuals should consider keeping on hand. Some suggested emergency supplies include but are not limited to water, a three day supply of non-perishable food, battery powered radios and extra batteries, flashlights and of course, extra batteries for them. A First Aid kit, with a signal whistles along with some dust or filter masks are good to have on hand. Moist towelettes for sanitation, a wrench or pliers to turn off utilities, a can opener for food, and some good plastic sheeting and duct tape to seal off a room if required. Lastly, some garbage bags and plastic ties for personal sanitation.
There are several sites with clear instruction on creating your emergency plan. You can begin at Ready.gov and expand your search from there.
Saturday, April 16, 2011
Birmingham Business Alliance on Blue Print Birmingham and our North Jefferson Opportunity
Another busy week for us here in the North Jefferson area, and it was certainly good to see the strong representation from North Jeff as we worked to welcome a visit from Mr. Barry Copeland, Senior Vice President of the Birmingham Business Alliance. Several city council leaders from Gardendale and Fultondale were in attendance as was Mayor Doug Brewer of Graysville and Mayor Jim Lowery of Fultondale.
Copeland reviewed the impact of Blue Print Birmingham and drilled down to the specific role that we can play in the implementation of the Plan. Blue Print Birmingham was born in a survey to the community asking the question: What should be our development and strategic plan for Birmingham? The answer came back with over 2300 responses, and an idea has evolved into an implemented strategy. This strategy has evolved into tactics which include an outreach to surrounding areas such as ours for support, participation and collaboration.
Seven pillars were identified as drivers of economic growth and ultimate job creation for the Plan. One of these key pillars in Blue Print Birmingham is in the area of Trade and Distribution. We become a key participant in this pillar with the continued construction of I22 and I422. Supporters of Blue Print Birmingham create allies and strategic alliances for our area that recognize the impact of the 52 mile Beltline stretch. The Beltline will impact not just us of course, but will overlay 30 cities, and 3 counties. The area described overlays 5 segments of which we are segment 4. Development of the project is funded by the Appalachian Development Highway Commission (ADHC) whereby money has been set aside by the Federal Government to run this project. Both I22 and I422 are ADHC projects. An anticipated 7 Billion will be spent for construction over 20 years while creating 70,000 jobs. According to Renee Carter, Executive Director for the Coalition for Regional Transportation, it is important to note that this is created during the construction phase alone.
Now is the time to cultivate an awareness of our business neighbors and to understand the need to educate ourselves and create community awareness. This is our time to connect to the massive transportation arm of this growth and understand the role of not just the interstate but the full spectrum of rail, highway and air travel. You may find it interesting as I did to appreciate that our 2 mile Birmingham Airport Runway is a very significant critical requirement for international travel. Norfolk Southern is anticipated to spend over 100 million dollars in McCalla on the development of the rail system. The cargo potential here for importing and exporting of goods is again very significant.
Mr. Copeland made the not small point of underscoring the need in all of this growth and opportunity for excellence in education. This is not a suggestion, a “nice to do”, or “maybe we can make it work” suggestion. This is a key requirement and an imperative to true measured success. The desire for “economic development” has become all too cliché of a term. Until the demand is met for creation of an educated workforce, the legs will be weak on the table. Mr. Copeland made the challenge to really drill down on our education rate as a Region, and not to view it by independent communities. A fractured view of any of the elements, and especially education, will hinder our success.
The impact of this project will parallel what we have seen in Shelby County, and we can certainly learn from their processes. In fact, we should connect to I22 within the next three years, and that is just around the corner.
Copeland reviewed the impact of Blue Print Birmingham and drilled down to the specific role that we can play in the implementation of the Plan. Blue Print Birmingham was born in a survey to the community asking the question: What should be our development and strategic plan for Birmingham? The answer came back with over 2300 responses, and an idea has evolved into an implemented strategy. This strategy has evolved into tactics which include an outreach to surrounding areas such as ours for support, participation and collaboration.
Seven pillars were identified as drivers of economic growth and ultimate job creation for the Plan. One of these key pillars in Blue Print Birmingham is in the area of Trade and Distribution. We become a key participant in this pillar with the continued construction of I22 and I422. Supporters of Blue Print Birmingham create allies and strategic alliances for our area that recognize the impact of the 52 mile Beltline stretch. The Beltline will impact not just us of course, but will overlay 30 cities, and 3 counties. The area described overlays 5 segments of which we are segment 4. Development of the project is funded by the Appalachian Development Highway Commission (ADHC) whereby money has been set aside by the Federal Government to run this project. Both I22 and I422 are ADHC projects. An anticipated 7 Billion will be spent for construction over 20 years while creating 70,000 jobs. According to Renee Carter, Executive Director for the Coalition for Regional Transportation, it is important to note that this is created during the construction phase alone.
Now is the time to cultivate an awareness of our business neighbors and to understand the need to educate ourselves and create community awareness. This is our time to connect to the massive transportation arm of this growth and understand the role of not just the interstate but the full spectrum of rail, highway and air travel. You may find it interesting as I did to appreciate that our 2 mile Birmingham Airport Runway is a very significant critical requirement for international travel. Norfolk Southern is anticipated to spend over 100 million dollars in McCalla on the development of the rail system. The cargo potential here for importing and exporting of goods is again very significant.
Mr. Copeland made the not small point of underscoring the need in all of this growth and opportunity for excellence in education. This is not a suggestion, a “nice to do”, or “maybe we can make it work” suggestion. This is a key requirement and an imperative to true measured success. The desire for “economic development” has become all too cliché of a term. Until the demand is met for creation of an educated workforce, the legs will be weak on the table. Mr. Copeland made the challenge to really drill down on our education rate as a Region, and not to view it by independent communities. A fractured view of any of the elements, and especially education, will hinder our success.
The impact of this project will parallel what we have seen in Shelby County, and we can certainly learn from their processes. In fact, we should connect to I22 within the next three years, and that is just around the corner.
Tuesday, March 22, 2011
State Ethics Law Overview: Oh you mean ME?
Attending a State Ethics Reform Update recently which was sponsored by Bradley, Arant, Boult, and Cummings, I received an opportunity to hear first-hand the details and nuances of the changes in ethics reform and work to understand what the new Alabama Ethics Law holds for the business community. Always on point to help bring the issues to the business leadership, this forum was supported by the Birmingham Business Alliance. Myla Calhoun Choy, Legal Council for BBA, served as the moderator. David Stewart, partner with Bradley, Arant, Boult and Cummings, along with Jim Sumner, Director of the Alabama Ethics Commission, led the discussion of the impact on business and I assure you it is not “business as usual” anymore.
You may re call that in late 2010, the Alabama Legislature was called in to special session by then outgoing Governor Bob Riley for the purpose to increase transparency and accountability in government at the State, County and local levels. More specifically was the express purpose of limiting the amount of influence that lobbyists, and those who pay lobbyists can have on the political process. Senate Bill 14 by Senator Bryan Taylor, and House Bill 11 by Representative Paul DeMarco, makes extensive changes to the definition of lobbying, lobbyists, and items and hospitality that may be provided to officials.
DeMarco also fought for mandatory training. Given the changes, this seems not only logical, but clearly necessary. Many private industry representatives are required to read, train and sign corporate compliance and ethical standard agreements. Clearly we should look for the same minimum standard from our elected officials and effective January 1, 2011 it is now required of lobbyists and their principals. These bills truly transformed the law, and Ethics Commissioner Jim Sumner declared, “Life as we have known it in the past no longer exists.”
Hospitality and entertainment are the big changes here. Anything that is purely social is no longer allowed. Previously a lobbyist could spend just about whatever her or she wanted per day and did not need to report until a $250.00 threshold had been reached. Now, such gatherings must involve an educational function, may pertain to economic development, and must meet the criteria for a widely attended event. Therefore an Industrial Development Board working session is okay, but golf is not. The food and beverage limit is now limited to $25 or less per occurrence and not more than $150 per year per public official or public employee.
Are you a public official or public employee? You may just be. If you were elected, appointed or employed at the state, county, or municipal level of government or government instrumentalities these changes are now in affect. That is a lot of folks, and it may include you.
New rules, and new day, so make certain you understand how it affects you.
You may re call that in late 2010, the Alabama Legislature was called in to special session by then outgoing Governor Bob Riley for the purpose to increase transparency and accountability in government at the State, County and local levels. More specifically was the express purpose of limiting the amount of influence that lobbyists, and those who pay lobbyists can have on the political process. Senate Bill 14 by Senator Bryan Taylor, and House Bill 11 by Representative Paul DeMarco, makes extensive changes to the definition of lobbying, lobbyists, and items and hospitality that may be provided to officials.
DeMarco also fought for mandatory training. Given the changes, this seems not only logical, but clearly necessary. Many private industry representatives are required to read, train and sign corporate compliance and ethical standard agreements. Clearly we should look for the same minimum standard from our elected officials and effective January 1, 2011 it is now required of lobbyists and their principals. These bills truly transformed the law, and Ethics Commissioner Jim Sumner declared, “Life as we have known it in the past no longer exists.”
Hospitality and entertainment are the big changes here. Anything that is purely social is no longer allowed. Previously a lobbyist could spend just about whatever her or she wanted per day and did not need to report until a $250.00 threshold had been reached. Now, such gatherings must involve an educational function, may pertain to economic development, and must meet the criteria for a widely attended event. Therefore an Industrial Development Board working session is okay, but golf is not. The food and beverage limit is now limited to $25 or less per occurrence and not more than $150 per year per public official or public employee.
Are you a public official or public employee? You may just be. If you were elected, appointed or employed at the state, county, or municipal level of government or government instrumentalities these changes are now in affect. That is a lot of folks, and it may include you.
New rules, and new day, so make certain you understand how it affects you.
Monday, March 7, 2011
Alabama State Legislative Changes and the North Jefferson Area
Now is not the time to blink. You will certainly miss something in the realm of politics and business. The tax code that was created in the 1930’s and adopted by states like Alabama is a key element in the papers of late. Over the past 70 years, the income tax has grown and is now the mainstay of the Education Trust Fund here in our state. Today, according to Steve Flowers (NJN 3/2/11) the state income tax and state sales tax are the primary sources of revenue for education here in Alabama. With our current economic climate that includes an unemployment rate of 9%, and some areas with much more, weak sales and income tax collections trigger short falls in funding at many levels to include education.
Our new Governor Bentley has his hands full for sure, but there are many in Montgomery who are working hard to balance and sustain a reasonable budget. One of Bentley’s key items under the education budget is to keep any state-funded teachers from losing their jobs. He does maintain and ask that they pay more for their health care and pension retirement costs. To quote Governor Bentley, “We are only asking our teachers to do what virtually everyone else has been forced to do in these tough economic times.” (BHM News, 3/2/11). Also on the table is a proposal to end the state’s deferred retirement program, known as DROP. This program allows eligible public employees to delay retirement for up to five years and then get their retirement benefits from those years in a lump sum. Very Interesting. In the private sector where we find a cessation of 401K matching and a reduction of pensions in an effort to save jobs, this does seem mirrored and reasonable. Bentley’s plan does not dispense with this benefit as many companies have had to do, it simply reduces it. Most state employees contribute 5% of their checks to pension funding. In the private sector contributions are as high as 16% to a 401K WITHOUT a pension option. This would go up under this plan to 6 % in 2012 and to 7.5% by 2013. Opponents see this as a pay cut. Proponents see it as a necessary budgetary measure.
An educated work force is critical for sustained growth and development and thus supporting education is important. Perhaps it will be timely to add this metric to the mix. The measure of output of the school system as a measure of workforce contribution is not a far-fetched notion, and a bottom line concept certainly from a business perspective. Also important, let us measure the ability to retain our educated in this state with viable career options and employment.
House Bill 57 and the Education Trust Fund isn’t the only glass ball that our legislators are juggling. Alabama Republicans list several items in their “Handshake with Alabama” and they do impact business big and small. Look for House Bill 60 which would write in to the state constitution the ability to challenge in federal court the participation of Alabama in the Healthcare Overhaul Law. Among other things, the law will require most Americans to have health care coverage or face penalties.
House Bill 64 will be working on a rewrite of the state constitution as well. This Bill supports the view that workers would be guaranteed secret ballot when voting whether to unionize.
Clear support for workforce development and its importance as a key pillar to economic development can be found in the 5 year plan of Blue Print Birmingham. Driven by the Birmingham Business Alliance, and continued by the newly appointed Director of BBA, Brian Hilson, we look forward to measured and sustained growth for our region. We can look forward to learning more about how Hilson, through his leadership with the Huntsville Chamber of Commerce, participated in the success and growth of the Huntsville/Madison area. We look forward to learning also how he will bring that experience to Birmingham and the surrounding areas to include our North Jefferson Area.
Watching these developments will be key to driving the development of the North Jefferson area. The recent 2010 US Census reports that three cities in the North Jefferson County area had significant increases in population. Kimberly grew by 50%, Fultondale by 27% and Gardendale by 19.5%. To put that in context, the population of the North Jefferson area is approximately that of the Homewood area. Think about that. Growth is fine, but managed growth with the ability to support and serve is better. Do we have the infrastructure to sustain this growth? Will we have good roads? Will we have strong schools? What will our law enforcement and fire support requirements support require? Pay attention, don’t blink, and keep in the conversation.
Our new Governor Bentley has his hands full for sure, but there are many in Montgomery who are working hard to balance and sustain a reasonable budget. One of Bentley’s key items under the education budget is to keep any state-funded teachers from losing their jobs. He does maintain and ask that they pay more for their health care and pension retirement costs. To quote Governor Bentley, “We are only asking our teachers to do what virtually everyone else has been forced to do in these tough economic times.” (BHM News, 3/2/11). Also on the table is a proposal to end the state’s deferred retirement program, known as DROP. This program allows eligible public employees to delay retirement for up to five years and then get their retirement benefits from those years in a lump sum. Very Interesting. In the private sector where we find a cessation of 401K matching and a reduction of pensions in an effort to save jobs, this does seem mirrored and reasonable. Bentley’s plan does not dispense with this benefit as many companies have had to do, it simply reduces it. Most state employees contribute 5% of their checks to pension funding. In the private sector contributions are as high as 16% to a 401K WITHOUT a pension option. This would go up under this plan to 6 % in 2012 and to 7.5% by 2013. Opponents see this as a pay cut. Proponents see it as a necessary budgetary measure.
An educated work force is critical for sustained growth and development and thus supporting education is important. Perhaps it will be timely to add this metric to the mix. The measure of output of the school system as a measure of workforce contribution is not a far-fetched notion, and a bottom line concept certainly from a business perspective. Also important, let us measure the ability to retain our educated in this state with viable career options and employment.
House Bill 57 and the Education Trust Fund isn’t the only glass ball that our legislators are juggling. Alabama Republicans list several items in their “Handshake with Alabama” and they do impact business big and small. Look for House Bill 60 which would write in to the state constitution the ability to challenge in federal court the participation of Alabama in the Healthcare Overhaul Law. Among other things, the law will require most Americans to have health care coverage or face penalties.
House Bill 64 will be working on a rewrite of the state constitution as well. This Bill supports the view that workers would be guaranteed secret ballot when voting whether to unionize.
Clear support for workforce development and its importance as a key pillar to economic development can be found in the 5 year plan of Blue Print Birmingham. Driven by the Birmingham Business Alliance, and continued by the newly appointed Director of BBA, Brian Hilson, we look forward to measured and sustained growth for our region. We can look forward to learning more about how Hilson, through his leadership with the Huntsville Chamber of Commerce, participated in the success and growth of the Huntsville/Madison area. We look forward to learning also how he will bring that experience to Birmingham and the surrounding areas to include our North Jefferson Area.
Watching these developments will be key to driving the development of the North Jefferson area. The recent 2010 US Census reports that three cities in the North Jefferson County area had significant increases in population. Kimberly grew by 50%, Fultondale by 27% and Gardendale by 19.5%. To put that in context, the population of the North Jefferson area is approximately that of the Homewood area. Think about that. Growth is fine, but managed growth with the ability to support and serve is better. Do we have the infrastructure to sustain this growth? Will we have good roads? Will we have strong schools? What will our law enforcement and fire support requirements support require? Pay attention, don’t blink, and keep in the conversation.
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