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How Erdogan's Dramatic Comeback Happened, and How Far Its Impact Might Reach

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ISTANBUL -- Turkey's Justice and Development Party made a dramatic comeback in the election on Nov. 1. Most pundits expected it to fare even worse than the 41 percent it made in the June 7 election.

Shocking almost everyone (including its own pollsters), the AKP got a clear 49.4 percent of the votes. This is very close to its record of 2011 general elections, which was 49.8 percent. But the important thing here to note is: the AKP increased its vote back to these record levels in the past five short months.

While the main opposition party, the Republican People's Party or CHP, remained almost the same as its vote in the June and 2011 elections, the two nationalist parties -- Nationalist Movement Party or MHP (Turkish nationalists) and the People's Democratic Party or HDP (Kurdish nationalists) -- lost badly. Thankfully, both have remained above the critical threshold of 10 percent and hence will be represented at the parliament.

This is, without a doubt, a great victory for the AKP, a party that came back from the dead. That is why we have to make the right assessments about the result. I talk of the assessments in plural, as I believe that a multitude of factors need to be noted.


This is, without a doubt, a great victory for the AKP, a party that came back from the dead.



First is the fact that the AKP is still the dominant power in Turkish politics, and its power to mobilize its voter base is immense. What made it lose its majority in the June election was an air of chaos within the party and its dismissal of the usual tenets of an election campaign. Going through a serious self criticism, the party diagnosed the problematic areas of its election campaign, made the necessary repairs and ran a much more coherent, solid and centralized campaign.

Two tactical aspects must be noted carefully about the AKP's campaign. The first is that it revamped its election promises, especially regarding the economy. And the second is: it reformed its lists of deputies, especially in the southeastern regions of Turkey, where it lost to the Kurds in the June election.

But the more important aspect was more than tactical: for the AKP, which took a big risk when it called for the Nov. 1 election, last weekend's vote was like an existential referendum. The whole campaign discourse was constructed on the idea of now or never. Even the campaign slogan -- which can be translated as "It's not me, it's not you, it's Turkey" -- was a clear sign of this discourse preference.

The other parties have totally missed this aspect: their campaigns have not tried to create a mobilization around an idea such as that of the AKP. Indeed, thrilled by the bigger-than-ever negative cloud around the AKP's global image, the opposition was almost sure that the result would be yet another hung parliament, with AKP remaining below 276 seats.

demirtas

Selahattin Demirtas, leader of the HDP, hugs a relative of a victims of bombing attacks in October in Istanbul. (Burak Kara/Getty Images)




That brings us to another important aspect of the Nov. 1 election: the behavior of Turkish center-right voters. They don't like to subscribe to global trends and values -- those of the developed democracies above all. It doesn't mean that Turkish voters don't care about the universal values of freedom of speech and media, or a pluralist political culture or other tenets of participative democracies. Yet, Turkish center-right voters, along with many similar groups of voters from emerging as well as developed economies, prefer to make a rational bundle of their gains from different realms.

This approach makes economic stability and wealth at least as important, or maybe more important, than media freedom, for example. Indeed, for development theorists who argue that economic growth, by itself, is not directly linked with the betterment of democratic norms, Turkey's center-right voters may be a case to analyze.

And now we arrive at the most important aspect that shaped voters' decisions that led to the AKP's landslide on Nov 1. Voters, after a brief period of turmoil following the June election, have voted for stability and sustainability. From an economic perspective, they have seen that the gains of the last 13 years could easily melt down in the absence of an able government. From a security perspective, the war with the PKK, a Kurdish terror group, and the nasty consequences of the chaos in Syria have reminded many voters to return to shelter rather than navigating the stormy water.

The losers: MHP and HDP





Despite suffering from mistakes in the lead up and aftermath of the June election, the AKP was able to gain back some Kurdish votes as well. That means that the pro-Kurdish HDP came out the loser in this election.

It wouldn't be wrong to argue that the AKP's victory was as much a result of its successes as it was of the fatal mistakes, after June's election, of both the MHP and the HDP. The MHP lacked coherence, was distinctively negative to any offer of cooperation and had a senseless political language that only intimidated voters.

The HDP's faults were more visible. The party's leadership was not reactive enough to the increasing terror from the PKK. Many pundits, including myself, believe that the renewed conflict with the PKK was both a result of the inevitable consequences of the war in Syria, but also a conscious choice on the side of PKK to seize an opportunity they saw as historic. But nobody can argue that President Recep Tayyip Erdogan is still as dedicated to peace process as he was just months ago.

Still, the result is that the HDP tried to present the renewed conflict as the sole decision of "the Palace" -- i.e. Erdogan. This backfired. It backfired because the Turkish and Kurdish voters alike have no tolerance for such one-sided rhetoric. It intimidated the conservative, more Islamist Kurdish voters especially, as they felt that HDP is no different than others when it comes to banal nationalism. That is the major reason why a part of the conservative Kurdish vote returned to AKP and left HDP vulnerable to the risk of falling below the 10 percent threshold.

pkk

A Turkish special operations team during an operation against the PKK in Diyarbakir in October. (Stringer/Anadolu Agency/Getty Images)




Yesterday's election results are an epic victory for the AKP, and its leadership as well as its voters deserve to celebrate. But I believe that the AKP is now at a more serious crossroads than it was after the June election, for the simple reason that the political discourse in Turkey over the past 13 years cannot be extended further. In a world that is becoming more heterogeneous and diverse, with numerous interfaces in different realms, traditional binaries are losing their meanings. The AKP's political vision is still very much relying on many of those binaries, and it risks becoming outdated. That's why, despite the great election victory, the AKP needs to offer something new to Turkey. But before doing that, it must diagnose serious problems in the economy, social policy and political reform.

After the fantastic growth of the first eight years of AKP rule, today, due both to national and global trends, the Turkish economy needs a serious structural update. This update needs to consider more parameters today than it had to 13 years ago, as Turkey got richer. Now, its economy is seriously under the threat of a middle income gap. The structural reform recipe the government declared in 2014 was good but needs a larger frame of political vision to be put into application. More than anything, a structural update of the Turkish economy will necessitate a new economy team. Global investors will be watching carefully to see whether the AKP will opt for more or less orthodox policies in selecting the members of the new cabinet.

While most accounts of the so-called "cultural and political schizophrenia" of Turkish society are overtly exaggerated (and this level of exaggeration is among the reasons why center-right voters once again opted for the AKP) it is no exaggeration to claim that Turkish society is more polarized today than it used to be. While I don't see an imminent threat of fragmentation or physical conflict, I also believe that the current climate is still poisonous and not constructive at all. And the AKP should share blame for that, as it failed to fully understand and diagnose the feelings of non-AKP voters. Therefore, the need to create a climate of conciliation, using a comprehensive, all-inclusive political discourse, is urgent and not postponable. If the AKP dismisses this fact, the gains of this election victory will not live long.


If the AKP dismisses the need to create a climate of conciliation and inclusive political discourse, the gains of this election victory will not live long.



Most importantly, the AKP needs to return to its reformist identity. It is true that under the first decade of AKP rule, Turkish democracy prospered and moved forward. But in recent years that progressive character has diminished. When Turkey reached the upper levels of international democratic norms and had to move forward to the next, AKP leaders started to fall short. There is an urgent need to rewrite parts of the constitution that deal with basic freedoms of speech and media and upgrade them to the highest global democratic standards. Then should come a new civilian constitution.

But more than that, the AKP leadership should be the guardians of a more pluralist culture in all realms of life.

Furthermore, AKP leaders, especially Erdogan and Prime Minister Ahmet Davutoglu, have to decide whether they will push forward with the idea of an executive presidency. The AKP fell short of both the 367 parliamentary seats required to change the constitution and also of the 330 that is required to call a referendum for constitutional change.

If the AKP decides to push forward with constitutional reform, it will need new alliances. This result should normally give a stronger mandate to the AKP to talk more confidently with all the other parties in parliament. It should. Otherwise, the continuation of the current situation with respect to the powers of the president will harm the AKP more than the other parties, and Davutoglu will face serious problems of governance. As long as a collective decision is delayed, speculations about disagreements on this issue will be used by the AKP's rivals.

abdullah ocalan

Supporters of the HDP wave flags with a picture of the jailed Kurdish militant leader Abdullah Ocalan in June in Diyarbakir, Turkey. (Burak Kara/Getty Images)




The Nov. 1 election results laid bare many realities. But one stands out from the rest: the warning delivered by Kurdish voters to the war-heavy language of the HDP. The roughly 2.5 percent of voters who abandoned the HDP did so as a reaction to the perception that the HDP didn't distance itself enough from PKK.

Yet the AKP should not be mistaken in thinking that this warning was only to the HDP. The HDP will have 59 deputies in parliament, more than the MHP, making it the third biggest political party in Turkey. Hence, the warning message from voters is crystal clear: continue with the peace process and abandon the war, not your promises. This warning is to Selahattin Demirtas as well as to Erdogan and also to Abdullah Ocalan, the imprisoned former leader of the PKK.

The AKP, and President Erdogan more than others, took a heroic risk two years ago to start the peace process with the PKK. The fighting stopped, violence as a political tactic was abandoned and life began to prosper in Turkey's Kurdish southeast. Until last year.

Starting with the Islamic State's siege of the Kurdish town of Kobane in 2014, Turks and Kurds found themselves on different sides of the Syrian conflict. The peace process deteriorated at the same pace as the situation in Syria deteriorated. Today, there is every reason to believe that these two realms have become totally interrelated.

That is why restarting the peace process is more vital than ever. It will prove to be more difficult than before, but the HDP will also be more eager after its election loss. These two parties should seriously try to turn a new page if they really want to accept the voters' message. But more importantly, the PKK must understand that killing people will not make it stronger; it will only make it more illegitimate and lead to more suffering for Kurds.


The PKK must understand that killing people will not make it stronger; it will only make it more illegitimate and lead to more suffering for Kurds.



Still, just restarting the peace process by itself will not suffice. The AKP should also seriously reconsider its policy in Syria. The last couple of weeks have been especially painful for Turkey, as it saw its basic calculations about the future of Syria falter one after another, with Iran included in the Vienna talks and Russia boldly joining the war.

Turkey made mistakes in Syria. All countries that mingled in Syria did. Syria's so-called "revolution" was premature, if not a total fiction. And the support given to that premature process cost hundreds of thousands of lives, plus millions displaced and a beautiful landscape ruined. Turkey stubbornly refused to update its Syria policy as the conflict deteriorated into civil war. Yes, Turkey has shown signs since last spring that it is reconsidering its options in Syria. But the process is proving to be very slow and very reluctant.

The AKP needs to update its Syria policy as soon as possible. It must immediately clarify its position on ISIS and the strategy to fight it. Otherwise, the chaos in the greater Middle East will continue, with another Afghanistan on Turkey's border, an hour's drive from Antalya, where the G20 summit will convene in two weeks. ISIS has already shown Turkey how cleverly it can penetrate its borders and how much pain it can create.

It is no easy task to write down a new political manifesto in an age where grand narratives are failing one after another. We have not arrived at the end of history, as Francis Fukuyama once argued, but as recent developments in the Middle East have proven, we have not been able to start a new history, either.

That is why the AKP's burden is bigger today than it was 13 years ago when it came to power. Offering something to Turkey, to the Middle East and to the world anew is more difficult than ever, but it is very badly needed. We will see whether AKP will be able to do that in the next few years.

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To Innovate or Die: The Global Economy in 2050

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I like shoes. This currently involves me going to a shop -- online or in a physical shop -- and chose from a limited range of styles which various large companies have designed and had manufactured -- most probably in another country, using raw materials from still other countries, all shipped through a global logistics network.

How might I buy my shoes in the future -- hopefully not too distant?

Perhaps like this: Inspired by visual platforms such as Pinterest and Instagram, I go to an online tool, upload a 3-D scan of my feet and design my shoes, using digital templates which propose designs that I can alter -- changing color, tissue, heel heights, types of tips, and so on. I send the digital design to my local 3D print shop to be custom-made out of new, high-performance materials -- keeping for example my feet at a desired temperature; I say, "Siri, make me a coffee", and wait for the delivery drone to arrive.

Attempting to definitively predict the future is a mug's game. But applying some imagination to today's weak signals and emerging technologies can enable us to paint plausible pictures of how the future might look, which we can factor into the strategic decisions we take today.

The shoe-buying scenario in the future is just one example of how radically different the global economy could become. Here are five implications.

First, scale may no longer be important. Shoe companies today have to be reasonably large to survive: it costs money to employ designers and tool machinery, and only by making each run of shoes in bulk can they hope to turn a profit. In 2050, global shoe brands may still exist: I might turn initially to my favourite brand for a digital template. But it will be much easier for small companies and talented individuals to compete, boosted by information networks that spread the word about the best ideas.

Second, trade in finished goods may no longer be important. In this example, my shoes are being put together at my nearest 3D printing shop, not making their way across the seas in a shipping container.

Third, trade in raw materials may also be much less important. By 2050, advances in molecular science could enable synthetic materials to be suitable for most purposes; plastics could be produced locally from recycled trash or biosynthesized from greenhouse gases, at costs out-competing today's oil-based plastic production. Nor might any tradeable resources be needed for energy: thanks to advances in technologies such as solar, power could all be generated cleanly and locally.

Fourth, low-cost labour might no longer be a competitive advantage for a country. It's cheaper now for a labourer to make shoes in India than France. But a 3D printer -- or any of the machines that are likely to take over a range of both white-collar and blue-collar work in the coming decades -- will cost much the same anywhere.

Finally, as trade in physical materials and finished goods declines, trade will commensurately increase in data, digital templates and intellectual property.

While this vision of the future may seem far off, it requires only that we extrapolate from already-visible trends: in customized and personalized production; collaborative product design platforms; globally-spreading access to and literacy in internet, e-commerce and software tools; and advances in additive manufacturing techniques, biosynthesis processes and material science.

When you strip away the advantages of being big, or resource-rich, or having low-cost labour, what are you left with as a means of creating value? Innovation. It is possible to imagine that, by 2050, the capacity to innovate will have become the only source of competitive advantage -- for nations, businesses and even individuals.

This future is not guaranteed to transpire. But it plausibly could. And the question of how best to prepare for it is one that should be exercising the minds of politicians and CEOs, young people and parents alike.

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











How to Be Great at Media for Your Business by Being Donald Trump!

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So far Donald Trump has spent approximately $2 million on his presidential campaign while his competitors have spent as much as 10x that amount. Some competitors, like former Governor Jeb Bush, had to cut some of his campaign staff.

If you think The Donald is only famous because of NBC's hit The Apprentice, you're mistaken. Trump has been a pop culture fixture for over three decades. Whether it's as the owner of the defunct NY USFL football team, the best selling author of real estate books or being the owner of the Miss USA and Miss America pageants, Trump has managed to remain highly relevant throughout the years.

He continues to be interviewed on cable and network shows and he'll also be a host for the award winning NBC show, Saturday Night Live in November 2015.

That level of publicity is priceless... seriously... You can't buy that type of publicity. Regardless of where you sit on the political spectrum, the smart people are paying attention to the public relations, branding and media mastery that Trump is showing.

Why is Trump "The Real Estate & branding guy"?

My theory is Trump represents something akin to the Dunbar Number. The belief is the brain can handle and know intimate details of approximately (on average) 150 people. After that amount, the brain takes short cuts...using a word, a phrase or some other descriptor so time and mental effort is spared.

Trump has managed to stay relevant in the minds of many -- hate him or love him... you remember him!

That matters in doing business, finding a service provider, buying a product or even voting!

How many of you have experienced situations where a friend wanted to sell their house but forgot you were a realtor -- and would have GLADLY given you the listing?

It happens too often... branding and marketing is something i have been experimenting with for years... and it's a science that has been lucrative for me.

If you're a business, brand or blog...it's imperative you get your audience to pay attention....to know you, and give you a descriptor that makes it easy for them to remember you.

I've learned a lot from Trump...about marketing..not necessarily politics but then again - some would argue that marketing IS politics!

Check out HowToGrabMediaAttention.com for a 1-page blueprint I use to stay relevant in the eyes of my audience!

Leave a comment below and let me know a time when a friend or client told you "I wish I had known you did that - I would have given the work to you!"

What did you do about it?

Please like, share, subscribe and repost with credit!

Check out HowToGrabMediaAttention.com for a 1-page blueprint I use to stay relevant in the eyes of my audience!

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











How to Write a Thank You Note That Shines

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I am often asked if I consider a handwritten thank you note outdated. My answer is a resounding NO. Taking the time to send a note is a polite way to show appreciation, acknowledge an act of kindness, congratulate a job well done, or recognize someone for their continued loyalty. There is never a downside to a handwritten thank you note.

Here are seven thank you note etiquette tips that will help you shine:


  1. Keep your desk well stocked. Stationery, envelopes, a good pen and postage stamps should always be easily accessible. Invest in stationery that motivates you to sit down and put pen to paper. Have an array of card stock for different people and occasions. I find that when I collect too many choices, I use only a few of my favorite "go to's" and leave the rest in the drawer. Buy only stationery you love.

  2. Write it by hand. Even if you are not particularly proud of your penmanship, handwritten script conveys a warmth and sincerity that no email or printed letter can match. Take a few extra moments to write as legibly as possible.

  3. Open on the right note. Start with a greeting, using the name you refer to them as when speaking in person. If you address the person by a title or honorific, do so in the note as well. It goes without saying, but double check the spelling of their name.

  4. Follow the time-tested formula. Include a line or two thanking them for their kindness and specifically mentioning the gift or gesture. Give details on how much the effort meant to you, or how you intend to use the new item. Finally, reinforce your connection and reiterate your appreciation: "Thank you again for the beautiful congratulatory bouquet. It brightens my foyer and brings a smile to my face every time I pass by. I look forward to seeing you at the next professional mixer."

  5. Close with warmth. Your sendoff will depend upon the relationship you share with the person. "Sincerely" or "Best regards" is more formal as compared to "See you soon" or "Your friend," which is casual and breezy. Think carefully about how you want to conclude your sentiments.

  6. Put some thought into your postage. There are so many striking and creative stamps available that there is no excuse for using an errant stamp from the bottom of your drawer. Purchase or order stamps online that reflect your personality. Running your note through the company postage meter will greatly diminish the personal touch.

  7. Send it promptly. Ideally you will write and mail your card within 24 hours of receiving the gift or other kindness. Princess Diana was known to write thank you notes at the end of each day, acknowledging even the smallest gesture. Even if you fail to live up to her standards, do not let time work against you. It is always polite to pen a note of thanks.


You may also find Thank You Note Etiquette: After the Job Interview helpful. Visit Diane's blog, connect with her here on The Huffington Post, follow her on Pinterest and Instagram and "like" The Protocol School of Texas on Facebook.

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











Ties for Heroes

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In 2014, there were over 573,000 unemployed veterans in the United States of America. And although many people might be quick to point out that this number is actually an improvement over the 2013 statistics, it's important to keep in mind that the change is not an overly impressive one. The unemployment rate in 2013 for veterans who had served from September 2001 was about 9%. The number declined to 7.2% in 2014, dropping by 1.8 percent.

As discussion about the plight of veterans increases during election season, the subject of unemployment among veterans is sure to become somewhat of a "hot issue" to debate. That the situation needs to improve is a given. The question about how to improve the situation for unemployed veterans, however, is an important one -- and it's always nice to highlight the efforts made by citizens to help support veterans in the quest for work.

While progress, no matter how small, is always desirable, helping the hundreds of thousands of veterans looking for work in today's economy should be a collective priority throughout the nation. With that in mind, let's take a look at some of the amazing programs that are currently in place to help spread awareness and raise funds for this exact cause.

Dress for Success

There are a number of reasons for the poor employment rate among veterans in today's society. Veterans often return home and find themselves unfamiliar with the job market and interview process, for example, and one of the most important factors to consider is undoubtedly the lack of help that veterans receive. For Gulf War-era II veterans especially, it's important to keep in mind that many returning individuals may not have ever had an actual job interview before serving overseas. This is a serious issue that deserves attention. There are a myriad of nuances and unspoken rules by which to abide and observe when applying and interviewing for a job, and many of them are only learned through experience.

Presenting yourself in the best possible light for the job you're applying is vitally important - this is probably a near-universal truth. This is part of the reason why the phrase "dress for success" remains part of modern vernacular. Dressing appropriately plays a big role in how you are perceived as well as whether or not you are considered as a serious candidate for the job. It seems somehow appropriate, then, that veterans are finding help in one of the most unlikely of places: ties.

David Fin Luxury Neckwear

David Herzka has seen exactly how hard it can be for veterans to find work as civilians. After watching one of his best friends return home only to struggle to find a job, he decided to make a statement and draw attention to the issue. As the CEO and founder of the luxury neckwear line David Fin, Herzka reached out to Hiring our Heroes, a program that assists veterans, servicemembers, and military spouses in finding work via activities like job fairs and resume workshops. When he established his tie business in 2014, Herzka ensured that every single tie sale would help benefit the Hiring our Heroes program and help raise both awareness of the program as well as drive more funding its way.

Every tie that Herzka produces features a silk camo tipping in order to remind customers of the need to bring attention to the cause of veteran employment. They also include a small notecard that explains the mission behind the partnership between Hiring our Heroes and David Fin ties. Because the ties are a luxury good that are targeted to businessmen, he is raising awareness among powerful audiences with the ability to help keep awareness of Hiring our Heroes relevant. Additionally, he balances the sales from his ties between keeping his business going and making donations to the Hiring our Heroes project himself.

Whether or not you're interested in buying a tie or just want to help spread awareness to the issue of the unemployment rate of veterans in the United States, keep David Herzka's line of luxury David Fin neckwear in mind. It's nice to see someone care so passionately about the plight of our veterans that he finds a way to work awareness into every tie he sells.

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











Inside the China-U.S. Competition for Strategic Partners

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china focus


No one would have imagined in late 2012, at the start of Xi Jinping's tenure as president of China, that by September 2015 leaders from three U.S. allies would attend an extravagant military parade put on by Beijing to celebrate the end of the Sino-Japanese War 70 years ago. But there they were -- President Park Geun-hye of South Korea, President Miloš Zeman of the Czech Republic and Deputy Prime Minister Prawit Wongsuwan of Thailand -- standing near President Xi earlier this month surveying the impressive display of modern military might.

America is still the world's only superpower, but China is gradually catching up. China's economy has become the second largest in the world, and the leadership is speaking with a louder voice in international affairs. And while historically China has eschewed building formal alliances with other countries, even that policy is slowly shifting: Beijing is courting new partners, including allies of Washington like President Park and others.

But for China to become a superpower like the United States, Beijing needs a new strategy that fully embraces genuine alliances, and not just so-called "strategic partnerships." True allies are most often bound by treaties that commit each country to defending the other in times of security, conflict or war, while "strategic partnership" is only a nice diplomatic jargon for a bilateral relationship involving any number of agreements -- often economic in nature -- that falls short of true alliances.

The concept of alliances has been anathema to Beijing since 1982, when China adopted a non-alignment policy to avoid getting entangled in the Cold War. This position reduced the risk of being dragged into conflicts among other states, especially between the U.S. and the Soviet Union, while allowing for more independence in policymaking. Later on, freedom from diplomatic obligations was a policy that allowed China to focus energies on building its economy.


China's current list of friends is no match for America's.


China's current list of friends is no match for America's. At present China has established about 70 "strategy partnerships" or "cooperation partnerships," including with many American allies, such as Britain, France, Germany and Italy. These friendships are mostly economic in nature, not traditional, full-fledged military alliances, whereas the U.S. has about 60 full-fledged treaty allies that involve military cooperation. By that standard, China has only one full-fledged ally, namely Pakistan, which signed a joint statement with China to upgrade their relationship to an "all-weather strategic partnership of cooperation" early this year.

The ordinary strategic partnership cannot consolidate the bilateral strategic cooperation as reliably as a military alliance. The fundamental difference between domestic society and international society is that there is no central government monopolizing military power in the latter. Thus all states without enough military capability to protect their own security have to rely on a foreign military power or organization for the sake of survival. In comparison with economic aid, military protection is more crucial for the secondary or small states. Surrounding countries will support China to achieve national rejuvenation if in return it provides security protection to those states by making alliances. In the absence of that kind of promise, these neighbors fear that China could use military might against them.

In terms of strategic competition with the U.S., China also needs more military allies in order to maintain a political balance in East Asia. Due to the world's center shifting from cross-Atlantic to the Asia-Pacific, it is very possible for the U.S. to strengthen its Asia-Pacific rebalance strategy if it wishes to constrain China's rise. China will be able to shape a favorable environment for its national rejuvenation if it resumes its alliance tradition from before 1982, especially making new alliances with American allies in Asia Pacific. The more U.S. allies in this region become China's allies, the slighter chance for Washington's rebalancing strategy to achieve its goal.

Although the presence of many foreign heads of state at the military parade shows China's foreign strategy is slowly shifting towards developing more military cooperation with as many countries as possible, the strategy is also faced with another obstacle related to the non-alliance principle, namely economic determinism. In the last three decades, economic achievement has dominated the minds of Chinese people, and thus "improving political ties with economic approaches," called yi-jing-cu-zheng, has become the dominant form of China's diplomacy. Economic partnership is better than no strategic cooperation, but it does not have the same impact as military alliance on bilateral strategic relations.


It is hard to imagine that China can become a leading world power without a majority of its neighbors accepting its role as the regional leader.


China should start by forming alliances from its own neighborhood. Geopolitically speaking, China must attain the strategic support of surrounding countries in order to achieve the goal of "national rejuvenation." It is hard to imagine that China can become a leading world power without a majority of its neighbors accepting its role as the regional leader. The task of national rejuvenation is not only much more difficult than economic development but also requires a different foreign strategy, which gives the top priority to military cooperation with surrounding countries. It is almost impossible for a power to play a leading role in the world when it does not have a safe neighborhood.

It is unrealistic to argue that China is able to make an alliance with most of its neighbors in the short term. Nevertheless, there is potential for Cambodia, Laos and the six members of the Shanghai Cooperation Organization to upgrade their relations with China to full-fledged military allies, like Pakistan, with the title of all-weather strategic partnership of cooperation. The U.S. is certainly the major strategic competitor of China, but its conflict with some of China's neighbors produces the possibility for those states to return to China for protection. Those states, particularly most of the ASEAN states, prefer no regional military dominance from either the U.S. or China. Making an alliance with both China and the U.S. is a strategic approach similar to non-alliance strategy helping them to reduce dependence on or threat from either China or America.

In fact, a deeper bench of allies for China would provide a counter-balance to America's reach, and make the world a more peaceful place. Most people in the West may prefer a unipolar world led by the United States, but not all the world sees it that way. A global balance of power tipped in favor of any one country creates more problems than it solves. All ASEAN states know that the only way to maintain ASEAN's leading role in regional security affairs is to maintain the balance between China and the U.S. and force them to compete for ASEAN's support.

China made the right decision to establish an economic strategic partnership with those countries, including America's European allies, who have neither border disputes nor security conflicts with it, while military alliance is not practical at present. Among all of its neighbors, Japan, the Philippines, Vietnam and North Korea have the least possibility of making an alliance with China. Although the Treaty of Friendship, Cooperation and Mutual Assistance between China and North Korea has not been abrogated, it has become merely nominal. There have been neither military relations nor state summits between these two countries for years. China has to be patient to wait for the domestic change in these four countries, which will change their policy towards China. The Philippines could be the first one because its current president, Benigno Aquino III will step down next year in accordance with the Philippines constitution.


In fact, there is little chance of a new Cold War given that ideology is not a core conflict between China and the United States.


China should learn from the competition between the U.S. and the Soviet Union in the Cold War. The failure of the Soviet Union is partially due to its lack of strategic credibility to its allies, namely those who did not trust Soviet security protection. On the contrary, most of its allies were fearful of Soviet military might after its military interventions into Hungary in 1956 and Czechoslovakia in 1968. That is why the Warsaw Pact was ended before the collapse of the Soviet Union, after East Germany took the lead to sign out this military organization in 1990. In contrast, America's alliance credibility made a great contribution to its winning of the Cold War. This history can explain why Obama's rebalancing strategy gives the top priority to relations with traditional allies.

Many people both in China and America have argued that the world would fall into a new Cold War if China adopted an alliance strategy. But an alliance network is only one of the necessary conditions for a Cold War, rather than a sufficient one. In fact, there is little chance of a new Cold War given that ideology is not a core conflict between China and the United States. Millions of Chinese and Americans visit each other's country annually, not to mention the extensive economic ties between these two countries, factors which also reduce the chance for a new Cold War in the visible future.

It will be crucial to the whole world to prevent military clashes between China and the U.S. and maintain their competition peacefully when China becomes a full-fledged superpower in the next decade. Because conflicts and competition between these two giants are increasing, preventative security cooperation becomes more important than economic cooperation. Establishing norms to govern cybersecurity is a typical case. If China makes alliance with neighbors, especially American allies, it has some function of preventative cooperation. It can help to maintain regional peace in three aspects. First, it will reduce the security conflicts between China and its neighbors after they become allies. Second, it will decrease the danger of American involvement into conflicts between its allies and China. Third, it will transfer the asymmetric military balance to relative symmetric balance in Asia Pacific, making both sides more cautious about any military action.

Also on WorldPost:

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Woman at Work: Smarten Up Your Teams to Boost Revenue -- Females are the Key

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Co-authored by Karin van der Auwera

Women remain blocked from the most powerful and lucrative positions in organizations. In economic powerhouse Germany, to take a striking example, women are typically highly educated, highly qualified and highly committed yet make up only 8.7% of management. Old boys networks is one hurdle, as are German women's underdeveloped awareness of the importance of networking. Another hurdle is their inexperience in positioning themselves into the promotion pipeline.

Additionally, German male managers reportedly tend to give their female staff high and demanding workloads, confident that they will excel and get results. Women, in turn, assume this will automatically win them respect and rewards -- financially and in terms of promotion. Yet they are frequently passed over by male colleagues who are more adept at branding themselves, socializing with their bosses and selecting those tasks which will get them noticed by their superiors.

This is not by any means just a German problem. Indeed, the European Commission is now considering introducing a mandatory quota of 40% for each gender for non-executive board positions, as reported in the Financial Times (July 16, 2015). Progressive Norway famously installed such quotas back in 2003, a reform which increased female board representation and helped to close gaps in pay.

Over the past several years, many studies have shown the advantages of teams which are diverse in terms of skills, age, culture, personality and, most especially, gender. Diverse teams, when well led, are more innovative and creative. Research carried out by Dr. Martha Maznevski, Professor of Organizational Behavior and International Management at IMD, a top-ranked Swiss business school, has shown how well-led diverse teams outperform homogeneous teams.

"Diversity," says J. Frank Brown, Managing Director and COO of General Atlantic and former dean of INSEAD, a leading international business school, "is an absolute necessity for a team, and when I say diversity, I mean it in every sense of the word: gender, race, religion, nationality, sexual orientation, culture, personality type, area of expertise." (https://books.google.de/books?isbn=0230579450)

Business leaders, not just academics, agree. Anne Richards, chief investment officer of Aberdeen Asset Management, the largest listed company in Europe, recently told the Financial Times, "Mixed teams make better decisions. They are able to address challenges from different perspectives and, as a result, come up with better answers." (source: "The Fall of the Endangered Female Fund Manager," by Chris Newlands in the Financial Times, February 23, 2015, pg. 8).

Arguably the most powerful form of diversity is gender diversity. In one study, companies with women board members outperformed those with none by 16% on return on sales, and by a significant 26% on return on return on invested capital. "Gender diversity results in improved performance," Dr. Maznevski explains, "because it leads to different perspectives, angles, and knowledge being brought to the table."

An essential factor in this, according to studies by researchers at MIT, Carnegie Mellon, and Union College, is that women are superior at emotional intelligence. Skills and qualities such as proactive listening, empathy and reading the non-verbal signals that people send to each other help women leaders understand and better guide their teams, departments and companies to better performance, and to greater success on the marketplace.

To break this vicious cycle of females working ever harder while males reap the rewards, women have to learn networking and self-branding skills. What does it take to lead from theory to business reality? It is not enough that executives from both genders merely possess an awareness of this situation: the need to pro-actively identify, support and promote high-performing female employees. In a brutally fast-changing global business environment, modern, future-oriented companies must seize all the competitive advantages they can get. This is the logic of the capitalist system. Ironically, executives can easily access these resources right at home in their companies -- all they have to do is place their high-performing female employees into well-rewarded positions of power and influence.

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Who Will Come After Millennials?

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What will the generation after the Millennials be like in the workforce? originally appeared on Quora: The best answer to any question.


Answer by Scott Hess, EVP, Human Intelligence at Spark SMG, on Quora.


I call the next generation after Millennials "The Post Generation." Generally we're talking about people born after 2000.

In my estimation, it's a group that will be defined by how it navigates and integrates the seismic social, cultural, economic and technological shifts that occurred just before they hit the hot lights of adolescence. In fact, unlike previous generations, it's my belief that what came before their formative years will likely be more important than what occurs during them.

Think about it. The post generation, who are roughly fourteen and younger today, is inheriting a world that is post Obama. Post Facebook and social media. Post mobile computing and smartphones. Post 9/11. Post Columbine and Sandy Hook. Post "don't ask/don't tell" and same-sex  marriage rights. Post legal marijuana. Post local and insular. And, quite obviously, post millennial.

Meanwhile, they're also a group that invests untold time and energy  "posting" their brave new experiences across an ever-expanding social  ecosystem. Aha! Dual resonance! Hence the name post generation, my personal entry into the naming sweepstakes that occurs every two  decades.

A few traits that are emerging:

Precociousness: Due to rampant and largely unbridled exposure to grown-up ideas, brands, devices, and content, they're "old" before their time, and they expect sophistication and navigate around safeguards and dumbed-down content.

Pluralistic: They're all about collaboration and community, and their ideas about trust are less about monolithic experts and more about crowd-sourced consensus.

Girl-Powered: To Posts, women are physically and mentally powerful. They're disproportionately represented in college; have achieved parity at the management ranks at work; and attitudinally are attuned to closing the gap at the executive ranks. And their icons are pure power: Ronda Rousey, Serena Williams, Hillary Clinton (think "texts with Hillary), Angelina Jolie, etc.

Pragmatic: Burned by the recession (and its impact on their parents), less reliant on cookie-cutter constructs like brands, religion, and political parties, Posts will be focused first on "what works," not just on what's cool.


This questionoriginally appeared on Quora. Ask a question, get a great answer. Learn from experts and access insider knowledge. You can follow Quora on Twitter, Facebook, and Google+.



More questions:

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How to Select the HECM Reverse Mortgage Lender With the Best Deal

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My article last week was the first installment of a two-part series on how a senior can safely navigate the highly dysfunctional reverse mortgage market. I suggested that step one is to choose the combination of reverse mortgage features that best meets your needs, which can be done effectively using my HECM calculator, with or without the pro bono help of an expert. (See Selecting the Best Type of HECM Reverse Mortgage). Step two, discussed below, is to find the lender offering the best deal on the particular HECM you have selected.

Reverse Mortgages Have Two Lender Price Components: This is the interest rate and the origination fee. The tradeoff between them depends on how long you will have the mortgage -- the longer you have it, the more important is the rate relative to the origination fee. My calculator does the work for you by showing how much you will owe, with different combinations of rate and origination fee, at the end of any period you specify.

The Stakes Are High: In many markets, including the market for standard home mortgages, the difference between the most competitive price and the "next-best" price is modest, but in the HECM reverse mortgage market it can be huge. I have seen rate differences of over 1% and origination fee differences exceeding $14,000. Among the reasons is that seniors tend to focus on the amounts they can draw rather than what it will cost, and lenders cater to that. With very few exceptions, lender web sites do not disclose prices, and (until now) there have been no published data on reverse mortgage prices anywhere. As explained below, that will change with the publication of this article.

HUD also plays a role in generating large price disparities by setting maximum origination fees. This allows lenders to charge the maximum fee in cases where they should be paying rebates, by telling the borrower that "the Government sets the origination fee."

A Little Knowledge Helps: The market value of a reverse mortgage to the lender originating it depends, among other things, on the initial loan amount. This consists of upfront cash draws including repayment of any existing mortgage balance, plus financed settlement costs.

If there are two transactions that are identical in all respects except that in one case the borrower is drawing the maximum amount possible in cash while in the other the borrower retains her entire borrowing power as an unused credit line, the lender will sell the first at a significantly higher price. In such case, the borrower who draws more cash should get a lower price, and will in the small competitive segment of the market. In the mainstream market, however, the mortgage with greater market value is more likely to generate a larger markup for the lender.

Borrowers for the first time now have access to a table showing competitive prices of selected reverse mortgage transactions, illustrating the price differences described above. An example of prices are shown below:

2015-11-02-1446507924-5772678-HECMprices10262015.jpg

Where Do You Find Competitive Prices of Your Transaction? The best rule for finding lenders who don't overcharge is to seek them on multi-lender shopping sites, where their prices can be compared to those of others. Lenders participating in such sites are prepared to price competitively. That has long been the case with standard mortgages, and it is true as well for reverse mortgages. The difference is that there are about 8 or 9 multi-lender sites covering standard mortgages, whereas at present there is only one that covers reverse mortgages: mine. At this writing, 9 lenders participate.

Remember, A Price Quote Is Just a Quote Until It Is Locked: A price quote is not binding on the lender until it is locked, which does not happen until the house has been appraised, the application has been processed, and the prospective borrower has been counseled. The lock price should be the price the lender is quoting to new shoppers on the lock day, which on a multi-lender shopping site the borrower can check. In the mainstream market, lots of luck.

To view live Kosher HECM Reverse Mortgage pricing, access my Reverse Mortgage Calculator, or for more information on mortgages in general, visit my website The Mortgage Professor.

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3 Myths About Online Small-Business Loans: Busted

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By Teddy Nykiel



Predatory. Scam. Subprime. You may hear these things and more about online small-business loans. They've risen in popularity throughout the last decade as banks have become more risk averse and demand for small-business capital has grown.



And although there may be some truth to these claims, not all online small-business loans are the same -- and they're not all inherently bad. Some can be a good option for businesses that don't qualify for a traditional bank loan, need cash fast or would otherwise turn to a high-cost merchant cash advance.



Below we identify and deconstruct three common myths about online small-business loans.



Myth: They're all unaffordable.



Online small-business loan costs run the gamut. Some, including merchant cash advances, are aimed at subprime borrowers and have exorbitantly high annual percentage rates -- 60% to 200%, according to a soon-to-be published paper by Richard Swart, a scholar-in-residence at the University of California, Berkeley. On the other end of the spectrum, SmartBiz offers bank loans backed by the U.S. Small Business Administration with 7% to 8% APR.



In between those extremes, there are online lenders that offer accounts receivable financing, lines of credit, short-term loans for managing cash flow, and term loans for larger purchases such as inventory and equipment. Those options can range from 7% to 98% APR.



Myth: They're for only subprime borrowers.



Although small-business loans from online lenders can be a good option for borrowers with bad credit, that's not all they're good for. Many borrowers who can qualify for bank loans still turn to online lenders to get cash quickly and conveniently. For example, OnDeck has "a lot of borrowers that are very bankable," including doctors and dentists, OnDeck Chief Executive Officer Noah Breslow says.



But before you go online to get fast cash, make sure you're investing the money in something that will grow your business and make the higher APR worth it. For example, if you have the opportunity to buy discounted inventory in bulk or you get a contracting job that you need to ramp up for, you may be able to justify a higher-cost online loan. But if you're paying a double-digit APR for a loan you need to keep your business afloat, you should rethink your approach.



"If you're using this just to pay the bills and keep the lights on," Swart says, "it's like living off credit cards."



Myth: They're completely unregulated.



Online small-business lenders aren't regulated by the Truth in Lending Act, which requires lenders to clearly disclose APRs. Since they're not held to those standards, many online lenders describe prices in different terms, which can be convoluted. Some borrowers say this makes it hard to compare options for online small-business loans, according to a 2015 study by the Federal Reserve Bank of Cleveland. We've tracked down the APRs for 10 of the most common online lenders and included them in our lender reviews, which we've linked to on the right sidebar.



But online small-business lenders still have to follow other laws, says Los Angeles-based attorney Scott Pearson, who represents online small-business lenders and banks for the national firm Ballard Spahr. Those laws include the Fair Credit Reporting Act, which says that only certain parties -- including lenders -- can check your personal credit, and the Equal Credit Opportunity Act, which stipulates that lenders can't refuse to lend to you based on your race, gender, religion or any other protected characteristic.



The bottom line


The online small-business lending industry is still new and evolving, which leaves lots of room for questions and misconceptions. It's important to realize that "online small-business loans" is a broad category that encompasses many different types of loan products. That doesn't mean, however, that every option is right for every business -- the key is matching your business's needs with the right small-business loan product.



To get more information about funding options and compare them for your small business, visit NerdWallet's small-business loans page. Teddy Nykiel is a staff writer at NerdWallet, a personal finance website. Email: teddy@nerdwallet.com. Twitter: @teddynykiel



More from NerdWallet


The Best Places for Women Entrepreneurs


Suffering From Loan Overload? Consolidate and Refinance


Love 'Em or Loathe 'Em: OnDeck's Daily ACH Payments




Image via iStock.

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The Future of Work? People.

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It's been a while now since the hot topic around has become "the future of work." Digital is gone, economic crisis is gone, (lean) startups are gone, and we're now collectively thinking about what work itself will look like in 10 or 20 years from now.

The question seems to be "what factors will drive change in the way we perceive and live work in our near future?" Will it be the Internet of Things? The new flat, bossless, or liquid organizational models? The peer-to-peer / platform / sharing economy? Maybe algorithms and/or artificial intelligence, mostly?

The list of possible factors goes on. Discussions have a few very good insights and a lot of buzz. Same old story. Let me reframe the problem here, though. What elements external to humanity itself have ever driven change in the history of mankind?

None.

All these factors that I hear mentioned, studied and dissected, are "tools" we've devised and developed to extend our capabilities into the world. To evolve. They are media, in the sense Marshall McLuhan meant the word: the extensions of man. They are all technologies in the way Clayton M. Christensen meant the word, that have always been crafted and then disrupted and always will be.

Generation after generation we devise and create what we need in order to evolve as a whole, as an adaptive system. We extend our bodies and consciousness in order to fly, to compute, to communicate, to be faster, to reach further, and so on. Good or bad is not of interest here. This is just how it works. Maybe a technological singularity will change this. Maybe. But in the meanwhile, and since mankind was born, this is what we do.

I recognize four layers in human systems as basic components, each one built on the previous and also back-feeding to the previous. They are continuously evolving, and in understanding their current status we can have some grasp of how the future we're evolving into looks like. They are, from bottom to top: people, culture, competences, tools and processes.

2015-11-03-1446515661-234499-HumanSystemsChangeDynamicsHSys1.0.jpg

Analyzing how this "sketch" of a human system works stretches beyond the scope of this post. Nevertheless one thing is key: the amount of discussions I hear about "the future of work" is inversely proportional to the depth in this four layers model. In other words, a lot of people are talking about new technologies, tools and processes. Many are talking about new competences. A few are talking about the evolution in culture. And just a handful are focusing on the evolution of people.

All of this is ok, of course. Buzz and trends are one of our anthropological means to implement stigmergy. Conversations about what's happening in the world transfer information to people and countries about where to move next together. But as a human system evolves and all the four layers evolve together, the upper ones are faster to change, they have less change inertia. While the bottom ones need more time to ripen. They are the ones that grant continuity and allow for identity to stabilize.

Now, in times of concentrated change like the one we're living through, if you focus on tools and processes, you'll be observing the results of a change in people that has happened yesterday. It is now reaching the surface and quickly generating new tools and processes, but it has already happened. It is, at best, the present of work. It might not be mainstream yet in some aspects, but from a systemic point of view, it is already all here.

If you want to really have some sound insight of what the future of work holds, you have to look into people. Observe the children in your family, look at the elders, travel and talk to people from different lands and cultures. What is it that makes them tick? What are the problems that bother them most? What are they looking for? And how all of this is different from what you would have observed 20 or 40 years ago?

You'll definitely notice that many things have essentially not changed. From this perspective change is much more focused, indeed. And you will notice a few root areas where things are changing, where the evolution is at work, and that will blossom into the competencies, tools and processes needed tomorrow in our world (of work).

Here follows what I see. But I'd really love to hear from all of you, to put our observations together.

  1. Complexity is reality. It's clear to (almost) everybody today that complexity and variability are back to their full strength, after a century of mechanistic illusion of control and stability. People do not want "experts" telling them how to deal with complexity by technical models and theories. They live complexity as part of life, they always have. And they now want work environments that allow it to be expressed and "surfed", without the frustration that comes from strict planning plus command-and-control industrial-age approaches.


  2. Work is (part of) life. Our work must be balanced with all the other important activities of life. There is no such thing as "work-life balance." Thus we need our work to be aligned with our identity and values, just as all the other important activities in our lives. Moreover, our time is precious, and the present moment is un-wastable. There is a strong desire to live it in-depth and with full meaning.


  3. Tools must be means, not goals. Money, institutions, digital technologies are all examples of "tools" that in the last two centuries have progressively become social goals in many different ways. This has provoked severe identity and happiness problems both on the collective and on the individual levels. These tools now need to be put back in the right perspective, and in some cases even completely re-designed, to revert back to being just a useful means for our collective and individual evolution.


  4. Work is not a place. We have broken free from the factory-employee approach. In the era of knowledge and creativity the value of work is produced through interactions, contamination, exchange. And, accidentally, so is also most of the personal value within our lives. People want to be able to move, to use their feet to go and meet other people, different perspectives, outdoor horizons, valuable creation spaces. This is key to fulfill a basic human need: the need for passion.


  5. We are much more than rationality. People knew it way before neuroscience proved it, but now it is also proven and understood by science. Emotions, intuition, creativity, inspiration, playfulness, are important parts of our being, together with our "cortical brain" rationality. They need to be expressed and cultivated in order for each of us to thrive. And they are key at work for tapping into each person's full potential, and into the multiplied power of co-creation and collective intelligence.


  6. Purpose and meaning are core. Having set profit and power as central goals of most human institutions, both formally and informally, has proven being a devastating choice. This is a fact that in the last decades has been massively recognized by most people in the world. There is now a strong determination to put purpose and meaning at the center of our institutions at all scales, and to have formal structures serve and enable them, instead of the other way around.


  7. We are a unique whole. From the first step of intellectually understanding that we are interdependent beings belonging to the same "family", mankind is now moving into realizing that our individuality is the explicated manifestation of an implicated whole. We are one. This awareness changes everything, from social and environmental actions to the deep understanding of love and fear. For sure it will change the future of work too, at the very least.


Stelio Verzera is a curious and active contributor to the global community evolving the concept and practice of work in this decade. If you'd like to know more about him, start here. Other blog posts by Stelio are here. Credits: thanks Dawna Jones for precious editing support, and Steven Zwerink for the header image.

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Federal Government as Employer: High Road or Bottom Feeder?

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The federal government has long been a model employer. It often has taken the lead in providing workers with benefits like on-site child care, paid family leave, and flexible work-time options in addition to more standard benefits like health care insurance and pensions. After seeing that these sorts of benefits could be provided at a reasonable cost, private employers often follow suit. Usually the first private adopters are large firms, but if the largest firms can provide benefits without too much disruption, smaller firms are likely to go this route as well, in part to be able to compete for workers.

Through this mechanism, the labor practices of the federal government can have a substantial impact on the larger labor market, even without legislation by Congress mandating specific practices.
President Obama is well aware of this pattern. This is why he issued an executive order last year requiring federal contractors to pay their workers more than the federal minimum wage. This will directly affect a large number of workers, but it is likely to have a spillover effect that is several times larger.

The same story applies to President Obama's more recent executive order requiring contractors to offer workers paid sick leave. This could help to encourage the practice of providing paid sick days to a much larger segment of the workforce. (As a practical matter, it would be difficult for a large firm to arrange to have paid sick days for a subset of workers employed on federal contracts, but to not provide the same benefits to the rest of its workforce.)

Historically the federal government has been especially important as an employer of women and African Americans. At a time when both groups were largely excluded from all but the most menial jobs in the private sector, the federal government offered them reasonably well-paying and secure jobs. Women and African Americans with college and advanced degrees were hugely over-represented in the federal workforce and still are today.

These are reasons the public should be especially concerned about the employment practices of the federal government. President Obama has been quite visibly using his executive power to try to promote good workplace practices among federal contractors. But at the same time his administration has been looking to restructure federal agencies with the hope of saving money by downgrading the job quality of large numbers of positions. Many permanent jobs that provide a livable wage and benefits may end up being replaced by part-time or temporary positions.

This risk can be seen in the Defense Department's plans for the "Force of the Future." The plan explicitly outlines plans to have federal pay patterns more closely emulate those in the private sector. That may be a positive change for higher end technical and management personal, who could end with more pay and benefits. But this could imply substantial downgrading for tens of thousands of less-well situated federal employees. For these workers, the changes being put forward in this plan are likely to mean lower pay, fewer benefits, and less job security.

As a huge employer, the federal government has considerable discretion in its management practices. It can act like many private employers and try to pay as little as possible for its workforce. This is likely to have a cost in higher turnover and demoralized workers, but it will mean less money for pay and benefits. There is some evidence that the steps in this direction have already had some effect. In the most recent data from the Labor Department on job openings, the rate for August was than 40 percent above the average for 2007, the last year before the start of the recession. This indicates workers see the federal government as a less attractive place to work than was previously the case.

The alternative employment path is the high road that President Obama promoted with his executive orders on the pay and benefits for workers hired by federal contractors. It hardly makes sense to try to promote high standards for federal contractors while at the same time seeking to reduce the pay and benefits of those already on the federal payroll. Hopefully President Obama will stick to the high road path.

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











Federal Government as Employer: High Road or Bottom Feeder?

$
0
0
The federal government has long been a model employer. It often has taken the lead in providing workers with benefits like on-site child care, paid family leave, and flexible work-time options in addition to more standard benefits like health care insurance and pensions. After seeing that these sorts of benefits could be provided at a reasonable cost, private employers often follow suit. Usually the first private adopters are large firms, but if the largest firms can provide benefits without too much disruption, smaller firms are likely to go this route as well, in part to be able to compete for workers.

Through this mechanism, the labor practices of the federal government can have a substantial impact on the larger labor market, even without legislation by Congress mandating specific practices.

President Obama is well aware of this pattern. This is why he issued an executive order last year requiring federal contractors to pay their workers more than the federal minimum wage. This will directly affect a large number of workers, but it is likely to have a spillover effect that is several times larger.

The same story applies to President Obama's more recent executive order requiring contractors to offer workers paid sick leave. This could help to encourage the practice of providing paid sick days to a much larger segment of the workforce. (As a practical matter, it would be difficult for a large firm to arrange to have paid sick days for a subset of workers employed on federal contracts, but to not provide the same benefits to the rest of its workforce.)

Historically the federal government has been especially important as an employer of women and African Americans. At a time when both groups were largely excluded from all but the most menial jobs in the private sector, the federal government offered them reasonably well-paying and secure jobs. Women and African Americans with college and advanced degrees were hugely over-represented in the federal workforce and still are today.

These are reasons the public should be especially concerned about the employment practices of the federal government. President Obama has been quite visibly using his executive power to try to promote good workplace practices among federal contractors. But at the same time his administration has been looking to restructure federal agencies with the hope of saving money by downgrading the job quality of large numbers of positions. Many permanent jobs that provide a livable wage and benefits may end up being replaced by part-time or temporary positions.

This risk can be seen in the Defense Department's plans for the "Force of the Future." The plan explicitly outlines plans to have federal pay patterns more closely emulate those in the private sector. That may be a positive change for higher end technical and management personal, who could end with more pay and benefits. But this could imply substantial downgrading for tens of thousands of less-well situated federal employees. For these workers, the changes being put forward in this plan are likely to mean lower pay, fewer benefits, and less job security.

As a huge employer, the federal government has considerable discretion in its management practices. It can act like many private employers and try to pay as little as possible for its workforce. This is likely to have a cost in higher turnover and demoralized workers, but it will mean less money for pay and benefits. There is some evidence that the steps in this direction have already had some effect. In the most recent data from the Labor Department on job openings, the rate for August was than 40 percent above the average for 2007, the last year before the start of the recession. This indicates workers see the federal government as a less attractive place to work than was previously the case.

The alternative employment path is the high road that President Obama promoted with his executive orders on the pay and benefits for workers hired by federal contractors. It hardly makes sense to try to promote high standards for federal contractors while at the same time seeking to reduce the pay and benefits of those already on the federal payroll. Hopefully President Obama will stick to the high road path.

-- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.











The Real Reason Your Co-Workers Hate You

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Photo Credit: GraphicStock

When you have to spend nine or more hours per day at work, with the same people, it's a given that the experience would be so much better if you actually liked and got along with the people you have to work with -- especially when it comes to your boss. Yet, for most of us there is typically one or more people who are a regular, major, and painful thorn in our sides.

Some of us don't know or understand why there are issues in the first place and are chronically confused. But, the overwhelming majority of the rest of us believe that the problem is with the other person. We typically describe them as inconsiderate, mean, unfair, petty, lazy, or any other negative word that may come to mind.

How often do you hear a person say, "my co-worker is driving me crazy! She never keeps her word and is so incredibly rude! And I think it's my fault..."

Never? Granted, if you know you really screwed something up with that person you may say that but if you offer an apology, the person accepts it, and things still remain tense then it quickly becomes that person's fault. True?

This what office politics and games are all about -- when people act less than friendly toward one another without sharing the reason or resolving the issues. These depict the mind-bending games/drama we all go through at work. But while two people are not always destined to be "friends," there truly is only one reason these same two people simply can't pleasantly work together without undue amounts of stress.

I worked as a senior level manager in human resources for many years and it took the years between doing that job, and becoming a career expert/coach to learn that the only real cause of office politics and games is fear. And it takes some guts to admit that if it's true for you and it probably is. It rang true for me and I never even realized it.

Fear is the underlying emotion that shows up in our daily lives manifesting itself as anger, jealousy, hatred, envy, etc. It all comes down to fear and it's actually the cause of all relationship problems in and out of the workplace.

I Don't Like That Guy...

There are people at work we dislike and we make up valid reasons for it. For example, John shows up at work as a new employee. While training him, he seems nice enough but to your horror, you discover that he may know a lot more about this job than you know. He may be better at it too. He may even (nicely) point out mistakes you made. This quickly may lead you to say to yourself, "he's so arrogant! He doesn't understand how we do things here. I can't stand him!"

If these or similar thoughts are ones that pop in your head, you will likely just go with them and continue to find all sorts of other things wrong with him as time goes on.

This isn't the start of a good co-worker relationship, is it?

But if you didn't actually just 'go' with those thoughts and stopped immediately to ask yourself, "why does this upset me so much?" The answer you find just might be because you don't feel confident in your own skills and John represents a threat to you - that perhaps he will show you up and prove you less competent. Worse yet, your boss might notice and you could end up losing your job.

The truth is, 99% of what upsets us has nothing to do with the situation in front of us. John is simply triggering something else that is much deeper and if he doesn't trigger it, someone else will. We can't escape it; we must deal with our fears head on and learn to let the other person off the hook.

The Mirror Effect

On the flip side, you may have been at a meeting where everyone gave a short presentation. Yours may have been an amazing one and you felt very proud of yourself afterward. But then there is your friend and co-worker Karen, who shortly after the meeting, starts acting distant toward you and even may not invite you into meetings you previously attended. Eventually, you confront her and she simply tells you all is well and she is a little stressed out with all of her work. But these new dynamics continue, on what appears to be a permanent basis, and you have no idea why.

So, what happened? That question causes more workplace drama than people care to admit but the answer is very simple. It's fear. Again.

We all act as mirrors to each other and perhaps on the day of the meeting, your presentation was really good and she felt hers was really bad. You then became a threat to her. You unintentionally made her feel incompetent and insecure about her place in the company. In her mind, she may have thought, "she's trying to take my job! Why did she pick that topic? That's mostly my area and she's stepping on my toes!"

Drama and games are little more than our own issues being projected onto others so we don't have to face the truth about ourselves. Most people are insecure, at some level, and if fear didn't drive us to constantly defend and protect ourselves, we would all get along just fine despite our little annoying habits and traits.

Yes, there are people in every workplace who really don't belong there -- they may be rude, blatantly lie, or be unreliable. But even then, it's our own fear that causes us to 'hate' them vs tolerating them, as we worry how their lack of work ethic will impact our own jobs.

Talk to Yourself

The key to rising above this workplace drama is to be one who consistently questions your own thoughts whenever you feel hurt or upset. Recognize that the first thought that pops in your head, (i.e. "He is so rude!") almost never explains what is upsetting you. Go deeper. By continuing to ask yourself "why" and "how" questions, dig as deep as you can to uncover the real issue, which is yours and yours alone.

As far as everyone else is concerned, be aware that other people are also often reacting in fear. This is the human condition and knowing that other people may actually feel threatened by you will help you take things less personally when it otherwise looks like they are simply being hateful to you for no good reason.

Compassion goes a long way and works far better than fear ever could. If everyone recognized this "fear factor" we all carried, and acted in compassion towards one another, work would be a much happier place to be.

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World's Smallest Stock Markets

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Does Size Matter?


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Every investor knows the New York Stock Exchange and the NASDAQ. Most people are aware of the Tokyo, London, Shanghai, and Hong Kong stock exchanges. But are you aware of the Lusaka Stock Exchange (LuSE) of Zambia, the Kazakhstan Stock Exchange (KASE), or the Mongolian Stock Exchange?

There are dozens of stock exchanges all around the world of varying sizes and market capitalization. You may find some of the foreign stock markets surprising. For example, could you correctly guess how many companies are on the Mongolian Stock Exchange?

It was one of the world's smallest exchanges after its inception in the 1990's, but today it boasts 610 company listings and a rapidly rising market capitalization ($1.3 billion as of 2012). Granted, it is nowhere near the $18.7 trillion market cap of the U.S. in that same period, but the Mongolian stock market's overall growth is fairly impressive -- and growth is what stocks are all about. The Vietnamese Stock Exchange has done even better, starting in 2000 and growing to include over 800 companies today.

Emerging economies sometimes try to open stock markets to attract foreign capital and spur investment. Usually these nations enlist the help of larger friendly nations to help them set up and regulate their exchange. However, many of the more esoteric foreign exchanges start small and stay small. These markets struggle for several reasons.

  • Lack of Liquidity - It is difficult to establish sufficient market liquidity with few listed companies, and new companies fear entering the market for that same lack of liquidity. It is analogous to the old unemployment line, "I can't get a job because I don't have any experience, and I can't get any experience because I don't have a job."



  • Regulatory Issues - Stock markets can vary in their regulatory approaches. Systems that are either too lax or too rigid or that have confusing rules are liable to frighten away potential investors.



  • Politics - It is easy for governmental interference to scuttle an aspiring stock market, especially in areas with unrest or where the rule of law is poorly upheld.


Even with these challenges and limited trading volumes, some of the world's smallest stock markets keep plugging along.

One of the smallest stock exchanges resides in Laos. Opened in 2010 with assistance from South Korea, it currently consists of only four companies: Banque por le Commerce Exterieur Lao Public (BCEL), EDL Generation Public Co. (EDL-Gen), Lao World Public Company (LWPC), and Petroleum Trading Lao Public Company (PTL).

However, the Cambodian Stock Exchange (CSX) takes the current title of smallest functioning stock exchange. It lists only two companies and only had one for its first three years of existence -- the Phnom Penh Water Supply Authority (PPWSA). In 2014, a second listing joined as Grand Twins International PLC, a Taiwan-owned clothing manufacturer, entered the market.

These two countries, along with Mozambique, Cameroon, Cape Verde, Armenia, Tanzania, Swaziland, Namibia, Syria, and Libya, had the smallest functioning stock exchanges in 2011. Even with the horrible unrest going on in both Syria and Libya, the stock exchanges are still functioning -- although to call them high-risk investments is an understatement.

You may find links to many of the world's exchanges HERE. Perhaps you will decide to invest in one of the eighteen companies listed in the Port Moresby Stock Exchange (POMSoX) of Papua New Guinea or the six companies listed in the Maldives Stock Exchange. You may just be curious about what has the highest trading volume on the Multi-Commodity Exchange of India. Feel free to explore -- just be very careful before you invest.

More from Moneytips

Swoon in Emerging Markets?
Frontier Stocks 101
Today's Headlines: China's Equity Markets: Volatility Rules

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How to Manage Innovation With Design Thinking

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Innovative new products are the lifeblood of society's progress but the risk of market, technology or execution failure is significant. With failure rates of 30-40% for incremental innovations and 95% for breakthrough innovations, rates of return are difficult to predict. Only the best survives in the game of innovation.

Managing New Product Development (NPD) can thus be daunting, especially since most project managers get one to two projects under their belt before either advancing or being let go. Because it is critical to focus on what is important, design teams use of key performance indicators (KPI) so they can manage expectations and so achieve higher satisfaction.

One example is a focus on delivering a high level of Design Quality, as defined by nine Design Quality Criteria - this has been shown to increase inventors' interest in incremental as well as breakthrough innovative projects. Studies of INDEX: Award winners and finalists have shown that Design Quality and the probability of obtaining venture capital funding have a strong positive correlation. The riskier a project, the higher the level of Design Quality is required to be considered worthy of investment.

Knowledge workers and especially creative professionals are largely autonomous. As experts, they call the shots within their field while negotiating interdependencies among all professionals' contributions. Since they cannot be micro managed but still must be shepherded, how do product design managers align multidisciplinary experts in an iterative process to deliver rapid quantifiable progress?

The Design Thinking process is one recent successful approach to managing the New Product Development Process. Spearheaded by Stanford University's d.school and the closely associated design consultancy IDEO, anecdotal evidence suggests Design Thinking is an effective collaborative approach to identifying and creatively solving problems. In addition, it is a non-linear, iterative approach that focuses on user needs, articulating frameworks, and formulating a strategy.

At a high level, Design Thinking informs the conventional iterative design process addressing direction, design and development. At the conclusion of a design project, an "after action" phase takes place to identify learning so as to improve performance on subsequent iterations and projects. This fast cycle "acting - learning" is imperative.

For the Design Thinking process to improve performance, it is paramount to include design in the early business definition stages. Studies at Stanford Center for Design Research, Hanyang University and California State University Long Beach have shown that when design teams are included in strategic planning and strategic criteria are included in an Inspirational Design Brief, projects create more appropriate concepts as well as provide more value to investors.

Devising an Inspirational Design Brief is a real challenge. Informed by the business strategy and utilizing a template containing learning from previous after action reviews, each stakeholder (e.g., marketing, engineering, design) creates a brief. The content of these briefs are compared along with the content of previous briefs and new Design Quality Criteria are then derived. The resulting Inspirational Design Brief is then approved or rewritten.

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An Inspirational Design Brief is but one tool in the quiver of Design Thinking management tools. There are many books that offer practical advice on the application of Design Thinking, such as Change by Design (Brown 2009), Profit from Design (Petersen 2011) and a newly edited book, Design Thinking, brought out by the Product Development Management Association (PDMA). The book defines and develops Design Thinking tools, offers managerial insights for Design Thinking within the firm, how to manage specific contexts of corporate issues and users along with their responses and values.

The book contains insights from research that are more than balanced by implementation details, helpful suggestions, prescriptive organizational advice, managerial checklists, short case studies, successful examples, barriers, and "how-to's".

Design Thinking also has its limitations. The process is primarily useful when developing incremental innovations, addressing recognized needs or clarifying needs in combination with current or new technology. If breakthrough innovation, discovering needs, and developing new technology is the goal, then other approaches may be useful. Here, Gamification in Concept Design, Dark Horse Approach or Design Driven Innovation is a more appropriate method and will be addressed in a future article, 'Design Methods for Incremental & Breakthrough Innovations.'

Co-written with Dr. K. Scott Swan, College of W&M and serving as Fulbright Hall Distinguished Chair in Entrepreneurship for Central Europe at WU in Vienna.

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TRID Trauma Lurks for Home Buyers and Sellers

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New Requirements Could Slow Closings


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TRID, the "TILA-RESPA Integrated Disclosure" reforms mandated by the Consumer Finance Protection Bureau, affects mortgages originated after October 2, 2015. There are numerous differences between "pre-TRID" and "TRID" loans, and lenders/title companies/realtors have spent countless hours preparing for the change. The Truth in Lending, Good Faith Estimate, and Settlement Statement have been combined into two new forms: the Loan Estimate (LE) and the Closing Disclosure (CD). Among the many significant TRID requirements, the biggest may be that lenders must prove borrowers receive their Loan Estimate within 3 business days of application, and the Closing Disclosure 3 business days prior to closing.

The easiest way for lenders to prove disclosures were received in the required time frames is to send them via electronic delivery. Once borrowers consent to e-delivery, the lender can track when the LE and CD are opened, proving they complied with the mandated deadlines. Assuming borrowers have email and check it, e-docs are the most efficient way to deliver and track loan disclosures. DocMagic is the most frequently used platform used for e-docs.

For buyers without email addresses, however, the process is more involved. Lenders must mail the disclosures out, adding multiple days to the delivery process. Appraisals can't be ordered until all borrowers have signed and returned a form called the "Intent To Proceed", potentially delaying their closing.

Once loans are clear to close (or at least close to being clear), all parties on the TITLE or DEED (not just the loan) must receive the CD 3 business days prior to closing (unlike "pre-TRID" loans, which did not have this requirement). For example, a loan in a husband's name, with his wife just on title, requires proving both parties received the CD individually, 3 business days prior to closing. However, DocMagic does not have the means to include non-borrowers in the electronic disclosure process. What's the impact of this seemingly minor complication? Lenders now have to default to delivering CDs via mail or in person, and mail deliveries require adding 5 additional days to the waiting period between sending the CD and closing the loan!

Perhaps over time (years?), all parties involved will master complying with TRID mandates. There's little question though that, at least initially, closings will be delayed, buyers and sellers inconvenienced, and loan locks extended (usually at a cost), due to TRID's requirements. Let's hope there's not too many!

More from Moneytips


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3 Bluntly Simple Personal Finance Advice That Work Miracles

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I have never earned a lot, but I always had the money -- both for essential things and some random spending on things I like. Travels, for instance. Pursuing a location independent lifestyle, hobbies and a lifestyle business, rather than a soul-crushing corporate career.

Now before I move to practicalities, I'd like to make an important disclaimer. This post is targeted at people with mid-income, struggling with optimizing their saving and spending habits, rather than those crumbled under the weight of student loans or crippling credit card debt. I'm sorry, I have never been in your shoes, so I can't give you proper advice.

Right. Now back to the money matters for those who are doing pretty fine, but would love to do it even better!

1. Cut Down On Things You Hate To Pay, Rather Than Those You Like

Among the most common personal finance tips you often see is stop spending money on "guilty pleasures" like Lattes from Starbucks, fancy car washes, or regular manicures. You constantly get nagged for spending money on those, which eventually makes you feel bad and question your savings willpower and give up before you have even started.

The truth is that you don't need to cut down on things you love in order to have more money.

Instead, let's take a look on the things you don't like paying for, but have to. Car insurance, for instance. It drains a hefty sum out of your bank account on a regular basis.

We tend to shop for our insurance once and forget about it for years. But the market realties change fast.

Don't be lazy and shop around a bit. Learn everything about your current plan and what coverage options you have. Next, get on the phone and dial up some of the biggest insurance companies in your area. Than, it's all up to asking the right questions:

- Do you offer discounts for a long-term membership?

- How much will I save by pre-paying the entire year upfront?

- Do you offer discounts for low-risk occupations (e.g. engineers)?

- Can you tell me about the deductible changes I could make to save money?

And the last but not least, here's a tricky question that may not work each time, but is still worth asking: "Company X is offering to insure me for $XXX less" followed by dramatic silence.

Next, when was the last time you analyzed your cell phone plan? Probably ages ago, right?

Here's one truth you need to know about these companies: they waste thousands in marketing budgets, meaning it's cheaper for them to retain an existing customer than to acquire a new one. Take that to your favor and start negotiating.

Again, do your research first. See what's the main competitors are offering, jot down all the prices, benefits, discounts, and other freebies and make the call.

Just like with the insurance company, ask the right type of questions mentioning that their services have now become too expensive for you and you consider switching to competitor X. Don't be afraid to go "all in" and ask the representative to forward your call to the cancelation department. You can continue to negotiate with these folks and even walk away for a short time without having your account cancelled or interrupted.

The same strategy perfectly applies to cutting down bank fees and costs and negotiating better plans with other business subscription services.

Master the art of negotiation and don't be afraid to apply it in real life.

2. Find a Side Income Source

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To sum it up, my idea about financial stability revolves around the concept that instead of merely cutting down dramatically on your expenditures, also learn to earn enough for the lifestyle you'd like to have.

Take advantage of any worthy moneymaking opportunity that comes your way.

Got a spare room or leaving for along vacation? Rent out your place on Airbnb to cover the bills.

Going on a long trip? Grab a buddy via BlaBlaCar to split the gas bill. Or side hustle with Lyft or Uber to earn some bucks on top.

Got extra savings money? Start investing by setting up a Roth IRA (unless you already have one) or invest in precious metals - a time-proven strategy that never fails.

Are you a cooking maven? Invite guests for your fab dining parties through EatWith.

Last, but not least -- you can always get a side job to help you earn some extra cash and potentially replace your full income. There's plenty of online and offline gigs requiring zero to mild prior training. The freelance world is booming, and it's a high time to take advantage of it!

Starting an online business and automatizing it to the point till it becomes more of a passive income is a no-brainer other. You don't need a lot of money as the numerous case studies from The $100 Startup book prove. You don't need to keep a stock of goods if you choose drop shipping as your strategy. You can automate most of your business operations, outsource the rest, and choose to focus only on tasks that appeal to you with the modern tools and apps.

3. Do Not Buy a House as an Investment

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As Ramit Sethi pointed out in his recent article buying a house is "a dumb, dumb propaganda from the multi-billion-dollar lobby of the National Association of Shitty Realtors Who Lie To Take Your Money."

Let's take a closer look on the idea of "owning a house." The Millennial generation I also happen to be part of does not rush into buying real estate, and I believe there are enough good reasons for that.

If there's one thing the crash of 2008 should have taught us, it is that homeownership is no longer a good investment. Sure, these days things are looking more economically stable, and your neighborhood is pretty nice, but Detroit city center was once an attractive place to live in as well. Economic downturns also mean high chances of loosing your job and getting buried by the mortgage you still need to pay.

Mortgage interest rates are another tricky thing to consider as you win only if your house steadily increases in value over the years. If not, well, you have just paid one and a half to two times the original price. Mortgage interest deductions have an "iffy" future, so I would not count much on those.

If you just want to own a house because you like the idea of having one -- go for it. Just make sure it is the house you can afford to have. If you want to get one for the sake of investment - don't do it.

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How to Write Fast and Well, Part 6: The Case of the Murdered Modifiers

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"How will I ever learn to be a good writer?"

It's a scary question -- and the hell of it is, the more you appreciate good writing, the scarier it gets.

But it turns out there's a non-scary answer to how to be good: just avoid being bad.

Think of it as the Sherlock Holmes technique: "When you have eliminated the impossible, whatever remains, however improbable, must be the truth." (The Sign of Four)

Sherlock Holmes Portrait by Sidney Paget, via Wikimedia, in the public domain, Eliminate the bad writing, and what's left will be good (or at least better).

One of the best ways to do that is also one of the simplest: cut out the adjectives and adverbs. Instead, choose the right nouns and verbs.

Consider the difference between these descriptions:

1. It was an amazingly big house.
2. The house covered most of a half-acre.


The first one is weaker. That's because it merely asserts: "Trust me, it was big!" But unless readers know you personally, they have no reason to trust your assertions.

The second one doesn't assert the size of the house, it causes us to experience it in our minds. Thus the meaning of the old, true aphorism, "Don't tell, show."

Using an adjective or an adverb is like boasting about how strong you are. Far more persuasive just to pick up something heavy.

One more example, which I stumbled across a moment ago on the web (and changed slightly to protect the innocent -- we all write like this sometimes):

Through quantitative data and robust visualizations, we can show...

Why do we need the adjectives? Why not just "data and visualizations"?

This modifier-laden style of writing is so common that it has become standard of "serious" prose. But the adjectives aren't serving any useful purpose, they're just pumping up a vague sense of importance.

Especially that "robust." What would make a visualization robust? Is it being displayed on granite?

If you practice casting this kind of skeptical eye on your own writing, I predict it will get better, fast.

But don't just trust me. I'll leave you with two of my favorite quotations, from two of our best writers:

"The adjective hasn't been born that can pull a noun out of a tight spot."
-- E.B. White.
"When you can catch an adverb, kill it."
-- Mark Twain

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How Sugar-Coating Performance Reviews Can Backfire on Small Business

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Going through an interview is one of the first steps involved in filling a job. For many workers, a performance review is also a standard for keeping these jobs. According to Jeff Fermin writing on Officevibe.com suggests that


  • 44% of employees feel their supervisors aren't honest during the performance review process.


  • 45% of HR leaders don't think annual reviews accurately portray an employee's performance


  • 58% of supervisors feel it is not an effective use of their time


  • 58% of executives feel that their performance process does not drive employee engagement.



Whether it's sugar coating the results or being unfair or biased, performance reviews that aren't based in reality will lead to inefficient operational practices.

Here's a look at the importance of HR management solutions for performance reviews. Please keep in mind that it doesn't matter which industry your company operates within, performance reviews are still critically important.

Furthermore, performance reviews need to be carried out on a company-wide basis. From the CEO to the janitor, these reviews are essential to your company's ability to create a culture that leads to high levels of employee engagement and increased profit levels.

Fairness Matters

As an employer, you prefer to have honest employees. It's through honesty that your business is able to thrive because it helps develop a positive company culture. Just as your business needs honest employees, your employees need you to be honest with them.

There's not much worse than not being honest with your workers about their performance based on your expectations. Their performance reviews will determine whether or not they qualify for promotions, and for many of them, promotions will be a determining factor as to whether or not they choose to remain an employee. When the performance reviews are sugar coated, workers believe they have a shot at a promotion, when in actuality, you know they will never climb the ladder. As a result, this leads to bad branding for your company.

Establish Positive Ethics

Your company wants to operate according to ethical practices. When employees aren't treated fairly in a performance review, they see this as unethical and an invitation to perform unethically as well and why shouldn't they? If supervisors are sugar coating or being unfair in their evaluation of the employee's work, shouldn't the employee have the same right too?

Create Boundaries

One of the biggest pitfalls for many companies is allowing close relationships between supervisors and subordinate workers -- ranging from friendships to romantic involvement. Policies and boundaries are needed to ensure personal relationships are kept separate from business. Such personal relationships can affect the honesty and integrity of the review process, and discourage employees from working harder and being engaged in their efforts.

Confirm Expectations

Quality performance reviews that aren't sugar coated confirm expectations. It shows that you expect your employees to perform at a certain level, and more importantly, that you want to see them grow as a worker by maintaining or exceeding this level.

Next Steps

What is your company doing to ensure performance reviews aren't sugar coated? If you have yet to implement human resources management solutions within your review process, there is a big possibility the reviews have not been a true reflection of your workforce.

Small business HR solutions will augment review processes that are flexible according to each employee's role. You'll be able to pinpoint weaknesses and strengths through each performance review, allowing you to position each employee in the best role for them and the business. These reviews will also help determine which employees aren't meeting your company's standards. As your performance reviews become an actual reflection of your workforce, you can create a company that operates at optimal efficiency.

Subscribe to our weekly blog that provides human resources tips to grow your small business and keeps you up to date on the latest trends and changes in employment law.

Margaret Jacoby, SPHR, is the founder and president of MJ Management Solutions, a human resources consulting firm that provides small businesses with a wide range of virtual and onsite HR solutions to meet their immediate and long-term needs. From ensuring legal compliance to writing customized employee handbooks to conducting sexual harassment training, businesses depend on our expertise and cost-effective human resources services to help them thrive. This article first appeared on the MJ Management Solutions blog.

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