Clean Underwear for Everyone!

Have you ever turned your underwear inside out and worn it a second time? I mean, have you done it since college? (Or in the case of unmarried males, since you turned 50?)

Well, I’m not quite there yet, but it’s getting embarrassingly close. You’d think that being out of work would leave me a lot of free time to get caught up around the house, although those of you who have read my previous confession of procrastination ("How to Avoid Doing Anything") already know better.

The thing is, being unemployed is exhausting. For one thing, people expect you to do extra stuff that they would never otherwise ask of you. After all, “You’re not doing anything.” So chores that might usually fall to the man of the house have become my duties – things like getting the tax information together, paying the bills, taking the car in for repair, doing the yard work, snaking the bathtub drain, etc. Sure, my husband will point out that I always did those things even when I had a job. (Let’s not go there, shall we? I want to keep this marriage intact.) But nowadays, I feel extra guilty about not doing them because after all, I’m unemployed, bringing in no money and I’m not doing anything. So I’m not blaming him. Not today, anyway.

For one thing, I’ve applied for law school. While the chances for my getting in this year are slim to none, I’m optimistic about next year and I’m taking classes at the university, finishing my undergraduate degree, and studying to boost my LSAT score. So that takes a lot of time.

Then there is the community action volunteer work. As a business person, I was active in a number of organizations and I still hold office in some. Just because you are temporarily out of work, doesn’t mean you should remove yourself from your peers in the business community. Some would even advise that those contacts and visibility are more important than ever for future employment. After all, the tooth fairy isn’t going to pay for law school. And there’s my volunteer work with homeless shelters, which has been a part of my life for so many years I can’t even imagine a world without it.

And then there is social media. Social media is like heroin. The more you get “connected” the more relationships you form. And relationships, like marriage, require constant work to stay viable. My drug of choice is LinkedIn. And within LinkedIn, my “family” is Career Insider Network. But two weeks ago, I started seeing another group on the side.

It began innocently enough. Bloggers Helping Bloggers seemed like a good way to connect with other frustrated writers such as myself. But part of being involved with this group required that I read a lot of blogs. They were fascinating and I have learned a bunch of stuff. And because I find it rude to visit a blog and not contribute to the conversation even modestly, I always leave a comment as a footprint to show that I was there. Frankly, it’s gotten out of control. I have been known to wake up in the middle of the night and check my groups to see what’s going on. (Don’t tell my husband. He thinks I’ve developed a bladder problem.)

So now, the house has gone to hell in a handbasket. The laundry is piling up. I still haven’t finished my homework for tomorrow’s class. And while I’m making confessions, it’s after 4:00 and I haven’t eaten yet today. I’ve just been on the computer endlessly. Enough! It’s time to throw down my mouse and go cold turkey. I’m going to get dressed (yes, you heard that right), go downstairs and wash a load of clothes while I make myself a grilled cheese sandwich.

Free. Free at last! Clean underwear for everyone!!!.
(Are we having fun yet?)

The Sadness of the Hawai‘i Women’s Business Center

Brief disclaimer: Feel free to skip this. It isn't funny. It isn't even very interesting to anyone but a handful of people. It's just that occasionally you have to get something off your chest and say what needs to be said. That doesn't make it important to anyone other than me. I understand that.

I haven’t written anything lately because, frankly, I just don’t feel very funny. My heart is heavy as I mourn the closing of the Hawai‘i Women’s Business Center (HWBC).

I have been careful not to speak about the Center since leaving as its Executive Director last summer. But with its passing, I think that there are a few pretty serious problems that should be brought to light and discussed. They have to do with Washington bureaucracy run amok, the failure of community support on the most fundamental of levels and a political circumstance that makes it impossible for a federal agency to go to bat for a local not-for-profit organization that it helped parent.

The Hawai‘i District Director of the Small Business Administration (SBA), Jane Sawyer, was one of the founders of the HWBC. She and co-founder Cherylle Morrow, HWBC’s final program director have both done superlative jobs in holding things together through the devastating economic storm of the past couple of years. As far as I know, HWBC was the only free economic development center in the state whose mission was assistance to Moderate to Low Income (MLI) women.

This is a loss to me, personally, because I worked so hard to build the Center up and I have so much invested in it. The loss is overwhelming to clients who depended on the Center to assist them in becoming self-sustaining. But it is an even greater loss to small business in Hawai‘i and the community as a whole, whose government and financial industry have let them down once again.

(I hate acronyms and it pains my fingers to type them but there are going to be a lot of them in this article because the federal government is an organization that has never met an acronym it didn’t like.)

The Structure of the Operation: The HWBC had two funding mechanisms:

1. a national component, as part of the U.S. Small Business Administration (SBA)
2. a local component, as the Center is required to match all federal funding with local dollars

Congress created and funds the federal Women’s Business Center (WBC) program through an earmarked line in the SBA budget, much like the federal Small Business Development Center (SBDC). The SBDC is similar but much older and better supported.

The Hawai‘i Women’s Business Center was funded in part through matching funds from the Office of Women Business Owners (OWBO), the division of the SBA that oversees the WBC program. Unfortunately, only about 30% of our funding came from the SBA and all of that was in “matching dollars,” which meant that we had to find outside funding for every dollar that was “matched” by the SBA – and then only for a limited amount each year. That still left approximately 70% of the HWBC operating budget coming from outside resources.

The Hawai‘i Women’s Business Center was unusual in several ways, all of which have to do with community support. Many WBCs are attached to their local Chamber of Commerce or other local economic development organization that provides on-site staffing. The Department of Economic Development in the administration of Mayor Mufi Hannemann was generous in allowing us space within a city-owned building at a substantially reduced rent. As much as that was appreciated, HWBC was one of the few stand-alone centers with no assistance from an on-site partner. (We did not share a receptionist, an accounting staff, pooled record-keeping resources, etc.).

Community Investment: Additionally, many WBCs enjoy strong economic support from their local banks, often as a part of the financial institution’s federally mandated Community Reinvestment Act (CRA) requirements. Much has been made of the fact that the Center opened in 1998 with startup money from American Savings Bank. True and appreciated. But it has been years since any local financial institution has made a substantial donation or grant to the Hawai‘i Women’s Business Center. This was always a mystery to me since all banks are required to reinvest in their communities by federal law. It is also to the advantage of financial institutions to see that entrepreneurs applying for SBA-guaranteed loans have been nurtured to a degree that their success is better assured.

How the CRA Works: The CRA was created by Congress in 1977 to prevent banks from excluding or “redlining” low-income or minority communities from access to credit. It was designed to encourage banks to meet the credit needs of the “entire” community in which they operate. In 1997 the ways in which banks could meet the CRA mandate were broadened to include investments in the community as well as loans. There were also provisions for special consideration of minority and female owned institutions and partnerships as well as broader interpretation of community investments aimed at economic development of LMI segments of society.

So What? As Dr. Seuss once said, “Things like this are important to know – and that’s why I’m bothering telling you so.”

At virtually every other WBC, they enjoy a partnership with a variety of local financial institutions through grants and donations. Some are programs to support a bank's CRA performance evaluation, others are donations from the banks' foundations. Either way, this makes sense to me, since non-profit WBCs help women start businesses (which will need a bank), improve financial literacy (good for banks), become self-sufficient and increase family assets (also good for banks and S&Ls). Additionally, the HWBC assisted clients with a variety of SBA loan applications as well as working to obtaining traditional financing through a local banks or other lending institutions by helping to develop a workable business plan, raise credit scores, and fill out complicated paperwork and other forms of assistance. All of this is good for banks both directly in the formation of services and indirectly by creating a stronger community economic base.

So why did Hawai‘i banks fail to support the HWBC in ways that other communities were able to take for granted? I don’t know. I never figured it out. This is not a criticism of the local banking industry. It’s just what’s so.

State funds: Unlike our sister-organization, the SBDC, which receives funding from the Hawai‘i Legislature through a line-item in the state budget, the HWBC has never been part of the state’s funding plans. Many other states have included WBCs in their economic development budgets or fund the WBCs through grants-in-aid. The state of Hawai‘i, however, has never given the HWBC a grant-in-aid, despite many requests. Why doesn’t the state support the HWBC in ways that many other WBCs are able to take for granted? I don’t know. I do know that money is tight and there have been practically no grants-in-aid given over the past several years. But even before the current economic crisis, the State of Hawai‘i has never seen fit to award a grant-in-aid to the HWBC. This is not a criticism of the state legislature. Once again, it’s just what’s so.

Federal Funding: When the SBA began funding the WBCs through OWBO, the allocation was $150,000 per year. In the two years that I was Executive Director of the HWBC, we faced significant and steady annual cuts in the per-center program budget. Annual allocations have now fallen from an average of $150,000 per year per center to as low as $80,000 per center.

During this same period, the demand for services increased wildly. Historically, small business creation runs in a counter-cyclical fashion to overall national economic health. When the economy is running well at “full employment,” fewer people are thinking of starting their own businesses. When economic conditions deteriorate and layoffs increase, people launch their own ventures in increasing numbers. WBCs are on the front lines of this situation; as the economy tanked, women turned to entrepreneurship as a way to provide for their families. Walk-in traffic increased dramatically at the very time when our funding was being cut.

Loan Programs: Between the initial funding pool enacted in February 2009 and three additional appropriations, the American Reinvestment and Recovery Act (ARRA) funneled a total of approximately $730 million to temporarily eliminate fees for SBA loans and increase the portion of each loan that the government guarantees, up to 90%. That has supported more than $27.5 billion in lending to more than 60,000 small businesses nationwide.

This was terrific news for small businesses in America, but it created a serious problem for already under-funded Technical Assistance Providers (TAPs) such as the Hawai‘i Women’s Business Center. TAPs are vital to the SBA program because small businesses such as one and two-man operations often need extra help in putting together a workable business plan, a fiscally responsible cash flow chart, an accessible back-up strategy and other tools required to guarantee that the borrower will be able to replay the loan in a timely manner. This is a labor intensive process on the part of the TAP and it is often accompanied by stringent time deadlines.

TAPs are required to attend seminars, participate in phone conferences and review reams of written information in order to learn the specifications of each different SBA loan program (I believe there are somewhere between five and seven different ones currently, including ARC). The TAPS then work with clients from helping them find the right program for their needs to actually submitting the paperwork. When the ARRA was first passed, it contained $25 million for staffing-up to meet demands for new programs. Unfortunately, not a cent of that money trickled down to the WBAs. The result was a LOT more work with another cut in funding.

Anyone who understands physics knows that you can’t cram 10 lbs of work in a 5 lb. bag. And, anyone who understands finances will appreciate how important the Technical Assistance Providers are to the program: A government-backed loan reduces the risk for the lender because if the small business borrower defaults, the government eats the guaranteed portion of the loan (in some circumstances, that’s up to 90% of the entire loan amount). So the less assistance small business folks are getting, the more likely they are to default on the loan. This would be a disaster for the federal government. This is federal bureaucracy at its most inept.

Buried in Paperwork: While we are on the subject of federal bureaucracy, let me point out that because of its legislated structure and funding, the WBC Program is complex. The paperwork is overly complicated and inefficient. In report after report, huge chunks of the exact same information is required to be typed into forms, in defiance of the federal Paperwork Reduction Act of 1980. During my period at the HWBC, I can honestly say that there were large periods when I was so inundated with redundant federal paperwork, I didn’t have time to do my job.

Untimely Payments: SBA grant payments are supposed to be made to the WBCs in quarterly installments (more or less). When I first came to the center in the summer of 2007, it was not uncommon for a Center to go four to six months (or more) without a payment. OWBO recognized that they had a problem and instituted new procedures designed to fix the problem. On September 20, 2007, Anoop Prakash, Associate Administrator of the SBA’s Office of Entrepreneurial Development testified before the Senate Committee on Small Business & Entrepreneurship. Prakash talked about “…grant disbursement backlogs and delays, and other customer service issues that have affected at least one-third of Women's Business Centers and have periodically placed them in difficult financial circumstances.”

Even after the restructuring that was intended to fix the system, testimony related to SBA Entrepreneurial Development Programs and the Role of Women’s Business Centers in an Economic Recovery submitted to the U.S. House Committee on Small Business on February 11, 2009, admitted that huge problems remained. “While there has been some significant improvement in the speed with which grant monies are disbursed, the paperwork burden remains exceedingly high – especially when compared with other federal, state and local procurement procedures that WBCs follow – and the program grant disbursements are not always made in a timely manner. In recent years many WBCs have waited months before they received the funds for the services that they were delivering throughout the course of the year.”

Can you imagine how difficult it would be to maintain reasonable cash flow in your business if your primary client regularly withheld all payments for half a year at a time? How would you meet rent and payroll? How would you continue to provide your services and products to your clients? How can any federal agency that purports to “provide business training, counseling and other resources to help women start and grow successful businesses,” withhold payments and behave in such an un-businesslike and unconscionable manner?

In the end, the loss of the HWBC is more than just unfortunate. It is a blow to small business in Hawai‘i and should be a serious concern, as it is indicative of several significant problems in both Washington, D.C. and in our community.

Shame.

How Not to Get Promoted.

People sometimes send me unsolicited questions, asking for mentoring or just advice. I’m not sure why folks do this, as my personal life is a mess and I would be the last one I would approach for counsel. Nonetheless, they do. So let’s open the mailbag today and see what is in it. Oh, look! It’s a nice young lady complaining that she has been working in a company at the same job level for 7 years and is sick of getting passed over. What advice can I, as a longtime President/CEO/Executive Director/boss-type, give her to help her get promoted in today’s business culture?

One might ask the more obvious question, “Why is she asking me? Has she not noticed that I, myself, am currently out of work?” But that trifling aside, I have been a boss at various companies for about 28 years total, and I can definitely reveal the top 10 ways NOT to get promoted (if that’s your goal). In just the last five years, I have been faced with every single one of these situations with one employee or another. Seriously, folks! Here they are, in no particular order:

1. Talk stink about me in the workplace. Word will never get back to me and even if it does, I will admire your forthrightness.

2. Hide information from me. What I don’t know won’t hurt me.

3. Fight with your co-workers. There’s nothing like a constant stream of distraction to keep the productivity juices flowing.

4. Refuse to share your job skills with anyone else in the office. That way, when you get sick or go on vacation, no one will be able to update the website, or access the administrative calendar, or batch the credit cards or figure out your filing system. It may play havoc with the commerce but it will make them appreciate just how valuable you are around here!

5. Dress for comfort, not for business. Sure, low heels and a skirt might be more appropriate than fleece pants and tennis shoes, but you work best when you are relaxed. What do they think this is, a business?

6. Be late every day. You will know that you have reached your goal when your co-workers have a daily pool to see who can come closest to your actual arrival time. (Again, keep in mind that I’m not making this up.)

7. Adhere tightly to your job duties. If it’s not on your job description, why should you do it? It’s not your problem. And if you find yourself with extra time during the day, use it to check in with your grown daughter, write funny e-mails to your friends or play on-line solitaire.

8. Do a requested task when it is convenient for you, not necessarily as soon as I ask. After all, who am I to dictate your schedule?

9. Bring your problems to work with you. Share them with everyone – me, your co-workers, our clients. The more the merrier!

10. Don’t offer to help me with anything. If you had wanted my job you would have applied for it.

I hope that this has been useful to you. Personally, if I had a job right now, I would thank my lucky stars and not worry about crawling to the top until things calmed down. I’d hunker down, kiss my boss’s feet and cash those paychecks as fast I got them.

Meanwhile, keep those cards and letters coming. Next week’s blog: How many ways can I, as a client, shoot myself in the foot and still pretend that I’m not limping?

Happy weekend!

All Dressed Up and No Place to Go

Being out of work has a number of down sides – the ability to pay the rent comes right to mind. But an additional disadvantage is the lack of opportunity for business travel. Since this is, first and foremost, a business blog, it behooves me to bring to your attention a new survey conducted by Hilton Hotels and printed in the March 9, 2010 issue of Inc. Magazine revealing that women love business travel more than men do, and why.

It turns out that women like to have someone clean up after them. This is not so important to a man, probably because he already has a maid at home that does that for him every day (it’s called a wife). For a woman, having someone make her breakfast is a huge treat. For a man, it’s just another Tuesday.

I don’t know about you, but one of the first things I do when I check into a hotel room is dump the entire contents of my purse on the bed (hopefully the second bed in the room). I never get the chance to clean out my purse at home, but in a hotel room, the night before the conference starts, I have time to do those things that I can't do at home.

For instance (and this may seem gross to some people, so just avert your eyes if you can't handle it) the second thing I do is cut my toenails. Yes! It isn't like I couldn't do it at home, but there is always something more pressing to do. But alone in a hotel room, I can do as I please. I can watch TV till 2:00 a.m. without anyone bitching at me about turning out the light. I can wander around naked without fear that my son will bump into me on the way out of the bathroom. I can order room service and I don't even have to wash the dishes afterwards.

I can "organize" my makeup, because in a good hotel there is always lots of room on the bathroom counter. My bathroom at home never has that much counter space. So I lay all of my makeup out for the next day, lining up my brushes and wiping the stray eyeliner shavings off the lipsticks with a Kleenex. I know that I am not alone in this ritual because it’s the exact same thing that George Clooney did when he checked into a new hotel in Up in the Air.

Another great thing about business travel is luggage. I have a confession: I am a luggage slut. I have stupid amounts of luggage. I like the “features.” The pop-up handle; the four wheels that spin in every direction; the multiple pockets with zippers…..ooooh, I love the zippers. I have a lot of black luggage, because then when you travel with multiple pieces, they all match….sort of. But lately my favorite is a bright red carry-on. I used to over-pack like crazy but no more. Now I can (and did) travel from my home in Hawaii to a mainland business conference and then directly on to a three-week vacation in Europe with nothing more than a carry-on. I’ve learned to co-ordinate everything around one color. Thus, when I travel I wear more black than a Muslim widow.

I’d like to say that I came upon this wonderful Hilton survey all by myself, but the truth is that I got turned on to it by a business contact, Carol Margolis, who writes about travel at Pearls of Travel Wisdom (you can find her link in “My Favorite Blogs” on the right side of this page). I like Carol partly because she always has good info but also because she is the only person I know with even more luggage than me. How can you not love any woman who actually features photos of her luggage collection on her website?

Anyway, you can read the whole article about the Hilton survey in Inc. online at
http://www.inc.com/news/articles/2010/03/survey-suggests-women-like-business-travel.html, but be prepared to be shocked when you discover the bizarre array of stuff that people steal from hotel rooms. We’re not just talking about the occasional robe (although Carol does admit that a particularly soft pair of Fairmont Hotel slippers “just fell into my bag …. seriously!”). According to this survey, 2% of the guests admitted to filching the iron, alarm clock, lamps, even artwork. Artwork???

In any case, I believe that the main reason women such as myself like business travel so much is that it allows us to pamper ourselves without feeling guilty. It’s the one time I don’t have to put someone else’s needs ahead of my own. For just a few days, I’m king of the castle and I’ll do as I please. Hey, maybe I'll take a big, long, undisturbed BATH! But you can be assured that I won't take the towels or the bathrobe. Hey, I have standards – they are low, to be sure – OK, real low, but still.......

All this talk about business travel is reminding me that I need to go out there and find a job – preferably one that requires occasional travel because my purse is getting out of control, my suitcase collection is lonely, and I have an extensive business wardrobe (I’m a bit of a clothes horse) that is currently gathering dust. Frankly, I’m all dressed up with no place to go. Bummer.

The Biggest Mistake Employers Make When Filling a Top Job

Job Opening: Looking for an Executive Director. Must have minimum of 5 years top management experience. Prefer candidate be aprox. 5’7” 155 lbs. with dark red hair and a deep, throaty laugh. Send resume to: Blah, blah, blah.

Would anyone really place an ad like this in the Jobs Section? No. But they might just as well, because subconsciously that’s what they want.

There’s a mistake made by employers nearly 100% of the time when looking for a new hire. They seldom think of themselves as hiring a new employee. Instead, they seek to “replace” the old employee with a clone. They do this because:

1. That’s the way we’ve always done it (official company motto: “Live and Don’t Learn.”)

2. It’s easier that way.

3. If things go badly, the responsibility is easily diffused.

But I disagree with this philosophy. (You knew that I would.) And here’s my rationale: When an employee leaves, for whatever reason, if the employer just thinks in terms of replacing that employee they deprive themselves of an chance to wipe the state clean and begin anew. Perhaps, 12 years ago, when that position was first created, there was an excellent job description written. In fact, I’ll bet that they are still working from an updated version of that same job description to this day! Maybe that’s swell. I doubt it.

Nonprofits are particularly bad about this, by the way. Small staffs and volunteer board members who can’t afford to “waste their valuable time” tend to think in terms of the immediate problem rather than the big picture.

We all know the definition of insanity: continuing to do the same thing and expecting a different result. During this current lousy economy, everybody has to start thinking outside the box. What worked in 2007 probably won’t work in 2010. When a person leaves, it creates a remarkable opportunity to re-think the job with something that is more appropriate with the changing world of doing business.

By the way, this same axiom is true with Board members as well. There are a startling array of lousy practices that are used when replacing an exiting board member. But one of the worst (and most popular) among female-heavy boards is to let the person who is leaving nominate her friend or co-worker to replace her slot. That would work well if this were a sewing circle, but with a Board of Directors, not so much. Men do this to some extent, too, but with men the nominee is more likely to be someone that the outgoing member has worked with on another board. Men are more incestuous; women more friend-driven.

Frankly, ladies, it’s just this sort of thing that is holding us back in business. A Board of Directors isn’t about “friends.” It’s about who can do the job. A vacancy on the board is an opportunity to look at where the organization is at that moment and define what is required to take it where it needs to go. If an organization is having governance problems, then maybe a strong HR person is needed. If funding is the overriding issue, then the board needs to understand that each member has a responsibility to give or raise a certain amount each year. (This is a very common procedure in nonprofit boards.) If the organization is having branding and image difficulties, then you need to pack the board with high profile, heavy-hitters to create credibility within the community.

Whether it is an employee or a board member, the company must have a really clear picture of what it needs today, as opposed to what was needed three years ago; because the likelihood of them being the same is very low. And what better opportunity to reassess that situation than when an opening occurs.

Now where did I put that dark red hair dye?