Are Americans as Entrepreneurial as We Think We Are?

We Americans pride ourselves on our self-reliance, independence, and strong sustainable work ethic. We believe that our individualistic, entrepreneurial approach to solving problems and meeting needs is what has made us such a prosperous nation. As Tom Peters, the personal branding guru suggests, we are all a bunch of Davy Crockett’s living by our wits and taking care of ourselves one autonomous nonaligned person at a time.

I would think that this Recession, which we are all experiencing collectively to a greater or lesser degree, would be a perfect time for Americans to demonstrate our self-governing nature. With high unemployment, it becomes necessary for each person to self-manage the riskier and more uncertain conditions of life. If ever there was a time to live by your wits, it is when you cannot rely on an employer to provide you with the means for a long-term comfortable, or even basic lifestyle.  

And yet, a reasonable question to ask is, are we as resilient to weather a personal economic storm as we might think we are? Is the typical American worker, most of whom are influenced historically by European traditions, trending toward a practice of creating our own jobs or still relying on organizations and outside employers to be our anchors? Do we have it in our DNA to face an uncertain future truly entrepreneurial or are we just too fatalistic? 

Malcolm Gladwell in his latest book Outliers extracts two historic proverbs, one Western and one Eastern, to point out that Asians may have historically developed more productive work habits and perhaps keener intelligence than have those from the West. The Western proverb (Russian in origin) translates to: “If God does not bring it, the earth will not give it.” The other (Chinese), “hard work, shrewd planning, and self-reliance or cooperation with a small group will in time bring recompense.”

Our European ancestors, who lived under a strict feudal system, may be dominating our current job search practices more so than our Asian ancestors. Our Western mindset may still be predominated by a thought pattern of yielding to higher powers for a determination of our destiny, be they divine or corporate, rather than by relying on individualistic self-sufficiency.

As we search for quality work our traditional and still generally practiced approach is to see, “who’s hiring.” We’ve developed more sophisticated and digital means of doing so, but the widely accepted premise remains that job seekers look for and strive to fill openings offered by bigger and more powerful organizations.

Not too long ago, I had a seasoned and experienced professional ask me to look at his resume and portfolio. He had been in a variety of management positions for different companies from diverse industries. He was unemployed and looking for a position to fill. His documentation was impeccable, rich, and impressive. I had no substantive suggestions to make regarding changes to his papers. However, I did challenge the nature of his approach to finding work. Given his depth of experience, I told him that he would be better off looking for problems to solve within the industries he is most familiar with, rather than limiting himself to looking for someone else’s job openings.

This concept of “grabbing the bull by the horns” by leaning into industries you know and designing solutions to common or hard to solve problems is one that I would like to develop more fully in my next blog. For now, I ask readers to think about the wisdom of creating your own entrepreneurial opportunities vs. just relying on job search techniques. These times may call for a two-tracked approach that optimizes both, not just one path.

New Hampshire Economic Stimulus Update

Now that it has been three months since the American Recovery and Reinvestment Act of 2009 (ARRA) has been law it’s a good time to see what effect this law may be having in New Hampshire. New Hampshire, like every other state needs the help. Our seasonally adjusted unemployment rate is 6.2% compared to 8.5% nationally. So, we’re in better shape than some states, for example Florida is at 9.7% and Indiana at 10.0%, but we haven’t seen unemployment like this since the early 1980’s. The question is, are New Hampshire residents getting jobs yet as a result of the Stimulus money? I’ve been looking into it and this is what I can tell at this point.

There does not seem to be a lot of new hiring yet due to the ARRA. For certain projects and positions in Transportation and Education particularly that have already been planned for or have been underway, then the reallocation of production revenue from the ARRA is keeping those people employed. But they had jobs already. For the vast majority of stimulus categories (see below) we are in one of two places:

1. The Federal guidelines stipulating the expenditure of ARRA funds have yet to be made public.

2. Grants are being or have been written by those state government agencies and organizations who now know the Federal guidelines and they are in the process of bidding for the dollars or awaiting awards.

In either case, the bulk of new hiring to come out of the ARRA is still somewhere down the road. We expect that Washington wants this money injected into the Economy as soon as possible, but in order to keep some control over the quality of the expenditures there is bound to be some red tape involved… and there is.

Here are the categories identified for receiving ARRA funds:

Business/Community: Refers to community development and services, Small Business Administration, and the Rural Business Program.

Education: Including a lot of education for the disadvantaged, early childhood, with some arts funding and technical training thrown in.

Employment/Nutrition: This is a catch-all for job training, hot lunch programs, activities for youth, assistance for needy families, among others.

Environment and Energy: Everything from weatherization projects, polluted site clean-up, energy efficiency, clean water, and more.

Health: Community health centers, SCHIP, health information, and Medicaid assistance are covered.

Housing Facilities: Public housing programming, National Guard, rural housing, and even firefighting assistance falls here.

Public Safety: The Attorney General’s office is getting into the act with violence against women prevention, victimization compensation, and fighting Internet crime against children, being included.

Technology: Basically this is extending broadband to rural areas that don’t have adequate coverage.

Transportation: This looks like the big shovel-ready kahuna, resulting in road, airport, in short, construction jobs.

If you want to look more into the details of the Recovery Plan in New Hampshire go to http://www.nh.gov/recovery/index.htm. I’ll periodically be checking into the status of the plan. As a career professional I want to be able to advise clients how to take advantage of these dollars by knowing who is hiring and for what jobs. I suppose if you’re far to the political right you see this money as tainted and like South Carolina Gov. Sanford won’t dirty you hands with it. But for the rest of us, this is real money designed to lift us out of Recession, while improving government’s and society’s various infrastructures.

If you’re fine with that, stay tuned.

The Pain of Unemployment

The pain may not be as deep as losing a child, parent, or spouse and it may be better than undergoing a severe personal injury, but the despair brought on by being unemployed can be a close second. This is a pain that sticks with you constantly. You may be able to find occasional diversions or be fortunate enough to have the psychological makeup to exercise mental rationalizations that can keep you sane, but for most, if not all, the dejection felt by not having work is profound. This condition should be faced with the fortitude you would have to muster if one of the above-mentioned tragedies were to happen.

Think what you will of Raum Emanuel, the President’s Chief of Staff, but I love his line, “Never let a crisis go to waste”, or some such policy driving quip of his. When you’re faced with lemons, what choice do you have but to make lemonade. What’s the alternative? Depression, paralysis, and confusion? I would think you’d rather choose something that gives you forward momentum.

Doing something of value will help you cope. Your spirit may be so shocked by circumstances that to attempt a fruitful activity may not feel any more productive than just carrying on as if you were in control of your life. It may be very hard to pull yourself out of bed or away from the TV or away from the bottle or the smoke or whatever, but again, what choice do you really have to make things better? If a German concentration camp prisoner like Victor Frankl can find meaning and personal strength during his situation, cannot most of us deal with a comparatively easier situation like unemployment?

So, what to do? I suggest two things. One, get is to get engaged with a systematic and very personal career search. And two, is to consider volunteering for a cause you value. 

Use this time to deeply explore what it is you want from work and how it can best intersect with the rest of your life. Ask yourself if you have been on a path that you love and want to continue navigating or if you would really rather do something different. Either way, you can put together a self-improvement project and be able to devote more time to it than would be possible if you were working full time. It’s a great time to be both contemplative and calculating. Make finding a job be your job. Your boss is yourself. Perform for this executive as exactingly as you would for someone you really wanted to impress. Start planning. It’ll help, I promise.

Volunteering can give you something structured and scheduled to do that contributes to an initiative that you would like to see advanced. I don’t need to start a list of things that you can do. It is endless. There is no limit to the ways that we can make the world a better place in which to live. Find your way (or ways) and commit yourself to it. No, you won’t make money. But among all the intangible benefits that can be derived from such an effort, two practical goodies can come about… Uno, you will increase your network of connections that may come in useful someday, and dos, you have something worthy to put on your resume to account for the time you were not “working”. 

Best of luck with this life challenge. I know it’s not easy.

The Uncertain Value of Outplacement

So, Outplacement is getting a bad rap. The service does not appear to be coming through the Recession with its reputation intact for delivering value, dependability, and reliability. There are three reasons for firms to offer Outplacement to their employees: it improves the firm’s recruitment and retention of quality workers, it improves employee morale, and it reduces the likelihood of legal challenges from angry laid-off staff. Given that Outplacement should be a wonderful benefit to offer downsized employees and that the need for Outplacement services is greatest when there are a lot of people who need new jobs, you’d think this is a great time for the Outplacement business.

And in a way it is. Outplacement firms are busy. For example, I recently tried to pick up some career consultation work with Lee Hecht Harrison, a firm specializing in Outplacement, only to hear that they not only had no work for me, but that their Manchester, NH office had been deluged with calls like mine. I’m reading too that there has been much activity at Outplacement firms nationally. The Insala Outplacement Industry Forecast for 2009 offers a case in point. 

But on the other hand, it is not good for this business to be widely thought of as ineffective. Recruiters are hearing stories of companies unhappy with the results of their expended Outplacement dollars. New Hampshire Business Review reports in their April 10-23 issue that a workplace review and ratings web site, Telonu.com, released survey results showing 94% of respondents rating Outplacement support as poor or very poor! 

Why such a dismal opinion? Well, the first thing that comes to mind is the supply/demand problem. There are more job seekers than available jobs right now. That fact alone will lead to some despondency. But where do these people get the notion that Outplacement necessarily leads immediately to another position? Yes, I know that’s the point of Outplacement, but it can’t be a guarantee, especially in these times.

If you have gone through three or six or twelve months of Outplacement service and are still unemployed does that mean that the service was inadequate? Perhaps. Or it just means that the Recession is really bad. If an Outplacement provider is very clear with you about what reasonable outcomes can be achieved, then you could go through the course and still feel that you gained value even if you are still without a job.

Outplacement should be designed simply, unambiguously, and as rationally as possible. This should be more about direction than dreams, focused not fuzzy, more coaching than counseling. It should be as much about skills as knowledge.

Outplacement needs to have the following features and goals. It should:

  • Be customized and directed to your specific situation.
  • Leave you clear and confident about the next step in your career development, which is reflected in your whole job search effort.
  • Assist you in developing job targets that include desired industry, geography, organization size, position, and company style/culture.
  • Go beyond Networking to include skill development in directly contacting those with the power to hire.
  • Teach you how to maintain valuable relationships.
  • Instruct you in interviewing, interview follow-ups, and negotiating the terms and conditions of employment, including salary.
  • Be a low overhead operation replacing cubicles and service-provided computers with your home computer and an expert coach.
  • Have available long-term service options, for up to a year, if necessary.

You should always walk away from Outplacement feeling that you’ve got the knowledge and skills to effectively engage in the job search scene. Remember, most of your competition does not have the quality edge Outplacement can give you.

Sure, it’s tough out there. There is even more reason to systematically prepare yourself. With a well delivered Outplacement you might not have that great next job right away, but you will at least feel that the time spent was worth it.