Tag Archives: businesses

Joel Kotkin links population increases in Sunbelt, Great Plains, and Mountain West with positive business climates

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Joel Kotkin argues the recent population growth and population loss in certain regions of the U.S. is related to business climate:

These trends point to a U.S. economic future dominated by four growth corridors that are generally less dense, more affordable, and markedly more conservative and pro-business: the Great Plains, the Intermountain West, the Third Coast (spanning the Gulf states from Texas to Florida), and the Southeastern industrial belt.

Overall, these corridors account for 45% of the nation’s land mass and 30% of its population. Between 2001 and 2011, job growth in the Great Plains, the Intermountain West and the Third Coast was between 7% and 8%—nearly 10 times the job growth rate for the rest of the country. Only the Southeastern industrial belt tracked close to the national average…

Energy, manufacturing and agriculture are playing a major role in the corridor states’ revival. The resurgence of fossil fuel–based energy, notably shale oil and natural gas, is especially important. Over the past decade, Texas alone has added 180,000 mostly high-paying energy-related jobs, Oklahoma another 40,000, and the Intermountain West well over 30,000. Energy-rich California, despite the nation’s third-highest unemployment rate, has created a mere 20,000 such jobs. In New York, meanwhile, Gov. Andrew Cuomo is still delaying a decision on hydraulic fracturing…

Since 2000, the Intermountain West’s population has grown by 20%, the Third Coast’s by 14%, the long-depopulating Great Plains by over 14%, and the Southeast by 13%. Population in the rest of the U.S. has grown barely 7%. Last year, the largest net recipients of domestic migrants were Texas and Florida, which between them gained 150,000. The biggest losers? New York, New Jersey, Illinois and California.

As a result, the corridors are home to most of America’s fastest-growing big cities, including Charlotte, Raleigh, Atlanta, Houston, Dallas, Salt Lake City, Oklahoma City and Denver. Critically for the economic and political future, the growth corridor seems particularly appealing to young families with children.

This is part of a larger demographic trend that has taken place in the last 50 years in the United States: larger population growth in the Sunbelt and West. This has been accompanied by the growth of major cities, particularly places like Dallas, Houston, Atlanta, and Phoenix, and the movement of jobs to these areas.

It would be interesting to view these struggles as part of a larger power struggle between regions. It is obvious to pick up on the political implications but we could also look at economic, social, cultural, and religious implications. These growing Sunbelt cities don’t quite have the global status several of the northern cities do. Is this a function of time or can they catch up? Where does Washington D.C. fit into this – still a compromise city between North and South? How different are everyday lives in these different parts of the country? How much do businesses who relocate to these areas like the regions beyond the bottom-line considerations?

h/t Instapundit

Shopping Harvard students flock to “Sociology 109: Leadership and Organizations”

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Harvard has a tradition that students can spent the early days of the semester “shopping” among classes before settling on what they will take throughout the semester. A sociology class, Sociology 109: Leadership and Organization, was apparently quite popular during this shopping period:

Peter Chen ’13 had shopped the perennially popular Sociology 109: “Leadership and Organizations” last fall, so he expected the course to be somewhat crowded when he visited it again Wednesday on the first day of shopping period.

But when he arrived at the start of the class, student shoppers were already overflowing out the door, blocking Chen’s entrance into the lecture hall.

“I tried to push in a little bit and funnel into the room,” said Chen, who was forced to stand outside the lecture hall for about 10 minutes before wiggling his way into a newly empty chair.

Another Sociology 109 shopper, Stephanie L. Grayson ’14, said she showed up a full 20 minutes early to ensure a seat in the class, which she suspected would be crowded because it was taught by popular sociology lecturer David L. Ager. The course—which will be lotteried down to 80 students by the end of shopping period—drew about 180 shoppers, according to Ager.

What I am interested in is this: why is this particular class so popular? The article hints at a few reasons that certain classes are overflowing in the shopping period: they fulfill certain general education requirements or, as indicated regarding Sociology 109, has a popular lecturer. These are not unusual reasons.

But looking at the title of the course, I wonder if another factor is at work: this sociology class has direct implications for business. The professor has “a Ph.D. in Organizational Behavior, a joint degree granted by Harvard Business School and the Graduate School of Arts and Sciences at Harvard University.” Additionally, he has worked with both businesses and governments:

Ager has consulted and taught for several large multinational firms from different industries including finance, high-technology, hospitality, consumer products, bio-technology, bio-energy, telecommunications, and wholesale distribution. In addition, he has advised large, family controlled businesses around the world. His list of clients includes companies such as Mars, Inc., Rockefeller & Co., Inc., Caterpillar, and Morgan Stanley. His consulting activities include leadership development, strategic planning, talent management, change management, M&A, team building and succession planning.

Prior to coming to Harvard, Ager worked as an adviser to Cabinet Ministers in the Fisheries and Oceans and the Employment and Immigration portfolios of the Canadian government. He also served as a member of the finance organization at Nortel and as the Director of the Mexico Research Initiative at the Ivey School of Business, University of Western Ontario.

While students might have difficulty seeing how sociology classes directly relate to business settings, this class seems uniquely positioned to attract business majors, entrepreneurial types, and others who might otherwise think sociology is impractical.

Or perhaps there is a growing demand among sociology students for organizational theory. It does seem to be growing within sociology itself.

C. Wright Mills influences movie about white-collar cubicles

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A new movie about white-collar cubicle workers is influenced by the work of sociologist C. Wright Mills:

In his 1951 book “White Collar,” the sociologist C. Wright Mills acknowledged the powerlessness of the white-collar worker while also understanding his importance within a larger context: “Yet it is to this white-collar world that one must look for much that is characteristic of twentieth-century existence … They carry, in a most revealing way, many of those psychological themes that characterize our epoch, and, in one way or another, every general theory of the main drift has had to take account of them.”…

Mills’s thinking was a major inspiration for the filmmaker Zaheed Mawani, who documents the resigned reality of the cubicle-coralled white-collar worker in his new film “Three Walls” (you can watch a clip here). Mawani’s film brings to the screen what numerous long-term studies have shown: that a lack of autonomy over one’s daily tasks leads to boredom (at best), utter despair and even increased mortality rates. Yet, time and again, proposed solutions ignore these deeper issues and focus instead (see last month’s column) on the furniture.

Mawani has used the cubicle to explore larger issues in the world of work. As he and I both discovered, passions run high around the most seemingly banal piece of furniture: it has its arch defenders, its resigned occupiers and its rigorously vocal critics. Mawani was interested in examining what the cubicle has come to represent, as he explained in an e-mail to me, “in terms of the shifting nature of white collar work: the lack of job security, increase in temporary workers, our detachment to work (the fact that we no longer stay in the same job for more than a few years and the ramifications of no longer having that employee-employer bond). It’s also about our relationship to technology, the lack of physicality in work.”

Is there really much more to say about the cubicle, a piece of office furniture that has received much criticism over the years? For many, the cubicle has come to represent a temporary space where workers are simply replaceable cogs in corporate machines that tend to benefit some wealthy owner somewhere else.

This discussion reminds me of the design firm IDEO which has been featured in a number of places for creating a different type of workplace: no walls, open desks, lots of toys, lots of collaborative space, and a lot of interaction between workers of different backgrounds in order to take advantage of everyone’s ideas. For an example of how they operate, I’ve had students watch this old ABC Nightline clip about how the company went about designing a new grocery cart. This sort of office seems to appeal to a younger generation and IDEO argues that it is much more effective. (Humorously, here is IDEO’s attempt to build “Dilbert’s Ultimate Cubicle.”)

The idea that office furniture can reveal deep-seated cultural themes is intriguing. I’m afraid to ask what someone might be able to see if they had time to observe my office…

Chicago area businesses looking to move from suburban campuses

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The suburbanization boom after World War II was not just about the movement of residences to the suburbs: it included a large migration of jobs and business headquarters to suburban locations, often large “campuses.” Crain’s Chicago Business suggests this trend may now be going in reverse as Chicago area business look to leave these suburban campuses:

Fleeing urban decay, companies like Motorola Inc., Allstate Corp. and Sears Roebuck & Co. built fortress-like complexes on the fringes of metropolitan Chicago. Jobs and residential development followed, fueling sprawl and congestion across the region.

Today, Sears Holdings Corp. and AT&T Inc. are looking to escape their compounds in northwest suburban Hoffman Estates. A shrunken Motorola has space to let in Schaumburg. Sara Lee Corp. eyes downtown office space after less than a decade in Downers Grove. Companies from Groupon Inc. to GE Capital hire thousands in Chicago while their suburban counterparts shed workers.

All reflect changes in the corporate mindset that spawned the campuses dotting outer suburbia. Empire-building CEOs from the 1970s through the 1990s craved not only cheap real estate but total control of their environments. They created self-contained corporate villages that cut off employees from outside influences.

As the 21st century enters its second decade, many companies are discovering the drawbacks of the isolation they sought. Hard-to-get-to headquarters limit the talent pool a company can draw on and feed a “not-invented-here” insularity that ignores major shifts in industries and markets.

This article suggests more corporations seek the opportunities that cities provide. Chicago certainly has opportunities – it was #6 in Foreign Policy’s 2010 global cities index. I wonder how much of this is driven by different factors:

1. Young people (college graduates, recent graduates) living in the city. We have some evidence that younger generations want denser environments and cultural opportunities. This would seem to go along with Richard Florida’s “creative class” idea that people and businesses move to exciting, innovative, culturally hip places.

1a. As a corollary, suburban places are no longer hip. These campuses are now decades old and involve stodgy suburbanites driving to stodgy workplaces. This is kind of interesting because the technology that would make instant connections possible may still not be enough to keep companies from relocating to the city.

2. Is there a particular business or city that has spurred this new thinking? If this has been shown to “work” elsewhere, it wouldn’t then be too surprising if other businesses followed suit.

3. Some have suggested that some businesses originally moved to the suburbs because their CEOs had already made the move and wanted their workplace to be closer to their homes. Could it be that CEOs and other important people in these corporations are now living in the city?

4. Tax breaks. This has been in the Chicago news recently with several companies, including Motorola and Sears, threatening to leave if they don’t get a better deal. Do these businesses get better incentives from the city of Chicago? Can increased tax breaks keep these campuses in the suburbs?

How other states see Illinois’ income tax hike

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The news this week that Illinois will have higher personal income and business taxes has spread to nearby states. According to this AP report, “neighboring states” are “gleeful” over this news:

Neighboring states gleefully plotted Wednesday to take advantage of what they consider a major economic blunder and lure business away from Illinois.

“It’s like living next door to `The Simpsons’ — you know, the dysfunctional family down the block,” Indiana Gov. Mitch Daniels said in an interview on Chicago’s WLS-AM.

But economic experts scoffed at images of highways packed with moving vans as businesses leave Illinois. Income taxes are just one piece of the puzzle when businesses decide where to locate or expand, they said, and states should be cooperating instead trying to poach jobs from one another.

“The idea of competing on state tax rates is . . . hopelessly out of date,” said Ed Morrison, economic policy advisor at the Purdue Center for Regional Development. “It demonstrates that political leadership is really out of step with what the global competitive realities are.”

A few thoughts:

1. Mitch Daniels watches The Simpsons? Might this admission hurt his possible presidential run or would it help him sell a hipper image? In the minds of some, perhaps where the analogy breaks down is that the Simpson family always seems to turn out all right in the end.

2. Income taxes are just one factor that businesses consider. I would like to read more about this at some point. For example, the conventional literature on suburban development suggests that low taxes is one of the reasons that residents and businesses decided to move out of the city in the first place. It would be helpful to know what are the “most important” factors that businesses consider – is income tax a lesser factor or a greater factor?

3. How many businesses will actually move to Wisconsin or Indiana or elsewhere and is there a way to predict this? It is true that Americans can vote for certain policies or actions by moving. Taxes may even be part of the reason the Sunbelt has grown in population in recent decades. At the same time, there are other factors beyond taxes that anchor people or businesses to certain places. I was intrigued with this question when living in South Bend, Indiana. Some people said they couldn’t wait to leave. Others wanted to stay. What pushes people (or businesses) to the point where they actually will move? Moving is not an easy process – it requires quite a bit of change and money (though money might be saved in the long run).

3a. The opinion of Wisconsin or Indiana held by Chicago area residents is often not the highest. Are these tax increases enough to push people toward places that they chose not to move to before?

3b. Is this “gleefulness” from other states tied to larger issues other states with the state of Illinois?

Considering workplace flexibility

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Some jobs offer more flexibility than others where a worker has an opportunity to structure their own schedule or make it to other important events in life that are held during typical work hours. Sociologist Alfred Young has looked into the issue of workplace flexibility and recently made a report to a conference:

When an assembly-line worker at a Midwestern auto-parts plant studied by Alford A. Young Jr. , a sociology professor at the University of Michigan, left work without permission to coach his son’s football team in a championship game, he paid a high price, Young told about 200 researchers, government officials and employers Tuesday at a Washington, D.C. conference on flexibility.

The story sprang from a study of the means employees use to resolve work-family conflicts–collaborating with the boss vs. sneaking around. The worker, whom Dr. Young called James, had committed to coaching his son’s team, and when the team made the championship round he asked to take a Saturday afternoon off to be present. The boss said no.

When the day arrived, James left work for lunch and later called his boss to say that his car had broken down, saying “ ‘I called Triple-A but I don’t know if I can make it back,’ ” Young says. James got to coach the game, but he also got written up by his supervisor and busted to a lower seniority level.

Such disruptions can be avoided, Young says, if supervisors bend a little, perhaps even breaking a rule or two, to try to find a solution within the work team, perhaps by allowing a shift trade; this benefits employers by motivating employees to go the extra mile and remain loyal to the company.  While this happens routinely at many workplaces, about 80% of all workers still lack the workplace flexibility they want, according to the Alfred P. Sloan Foundation, the conference sponsor. What doesn’t work, his study found, allowing to develop the kind of clash that encompassed James.

I feel like a lot of the talk about telecommuting and the changes that might come to the workplace due to changing technology might really be about increasing the flexibility of workers. If the main concern is that a job gets done, perhaps it doesn’t matter as much whether an employee keeps certain office hours. Younger workers also seem to like the idea of flexibility, to not be completely tied down because of a job. But perhaps even the American small business spirit could be tied to this issue – some people enjoy being able to set their own hours and agenda.  But this may not apply in the same way to areas like manufacturing.

If 80% of workers desire more flexibility, is this something more businesses and organizations should address? I would be interested in knowing what holds businesses back from being more flexible with workers. Profits? Appearances? A certain workplace culture? Directives from higher-ups?

Dealing with slow people on the sidewalk, London edition

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This is an issue I’ve always wondered about: what to do with slow walkers on public sidewalks? Of particular note are people who stop in the middle of the sidewalk to hold an impromptu conference while others try to get around them.

Apparently, this is a concern for others as well. Business owners on London’s Oxford Street have proposed a plan to have tourists and shoppers walk closer to buildings while those who want to get through the area, such as employees and residents, walk closer to the street:

Sidewalk rage may be closer to the point, and an alliance of local landlords and retailers believes it has an antidote. On behalf of London pedestrians who are sick of dodging Oxford Street’s tourist hordes and texting teens, they’re ready to draw the line. A pretend line, anyway.

New West End Company, a group of 600 business owners in the district around Oxford Street, is planning to direct slow movers to walk in a “shopper lane” along store fronts, so that hurried residents and workers can proceed without opposition on the sidewalk’s edges. The concept echoes a gag played in New York City last May, when pranksters laid a chalk line down a sidewalk on Manhattan’s busy Fifth Avenue, with one lane reserved for “tourists” and another for “New Yorkers.”

But London’s line would likely be virtual. Under the plan being hatched by Dame Judith Mayhew Jonas, chairman of New West End Company, maps available at airports, hotels and other traveler spots would tell visitors to cling to buildings. The directive would also be written onto local area maps outside subway stations and at busy intersections.

With little chance of enforcing such rules, how effective could this be? And could tourists and others mount a counter-campaign where they remind the people of Oxford Street how many dollars they bring into the tourist industry and local businesses? (This is unlikely considering the diffuse origins of the slow movers – but it would be interesting nonetheless.)

h/t The Infrastructurist

Happy employees = better workers

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Forbes has developed a list of the 10 companies in the United States that have the happiest employees. This happiness is not just a good thing for the personal well-being of the employees – it eventually helps improve the company’s quality and bottom line:

Studies show that positive employees outperform negative employees in terms of productivity, sales, energy levels, turnover rates and healthcare costs. According to Shawn Achor, Harvard researcher and author of “The Happiness Advantage,” optimistic sales people outperform their pessimistic counterparts by up to 37%. In fact, the benefits can be seen across industries and job functions. Doctors with a positive mindset are 50% more accurate when making diagnoses than those that are negative.

I’ve seen articles/studies like this before. If this is a consistent finding, why don’t more companies make this a priority? It might take some extra money and convincing up front, but if the payoff is harder-working yet more relaxed employees, who wouldn’t want that?