Tag Archives: Economy

President Clinton Announces Impact of Commitments Made at the Second Annual Clinton Global Initiative America Meeting

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President Bill Clinton announced the impact of the 2012 Clinton Global Initiative America (CGI America), a meeting dedicated to forging collaborative solutions to the United States’ most pressing economic challenges. This year, CGI America attendees, who include leaders from government, business, and nonprofit sectors, made more than 50 new commitments valued at more than $1 billion that will create 32,000 jobs and fill more than 500,000 vacant jobs in the United States.

“This year’s CGI America participants have formed creative partnerships and come up with inventive strategies to accelerate employment, start new businesses, and prepare Americans to take the jobs that are open in the new U.S. economy,” said President Clinton. “From nearly $176 million of new capital that will go to small or medium enterprises, to the nearly 150,000 students who will gain access to STEM education opportunities, this year’s meeting has demonstrated the important advances we can make when working together towards a shared prosperity.”

Throughout the meeting, attendees generated Commitments to Action: new, specific plans to address an economic challenge facing the United States, such as job creation, small business development, clean energy, STEM (science, technology, engineering, and math) education, housing recovery, and workforce development. Some of the commitments announced today will provide underserved young people with skills in digital media and construction, give women and minorities opportunities for entrepreneurship, and transform foreclosed properties into affordable housing.

When fully funded and implemented, the 58 new CGI America commitments aim to positively impact the lives of nearly 3.9 million Americans in the following ways:

  •              More than 32,000 jobs will be created, including 6,600 green jobs.
  •              More than 500,000 jobs will be filled by veterans and their family members.
  •              Nearly 68,000 people will receive improved access to capital or financial services.
  •              More than 117,000 people will benefit from access to job training and certification.
  •              Nearly 760 million kilowatt hours of energy will be saved.
  •              More than $84 million of new capital will be invested in green initiatives.
  •              More than 12,000 people will gain increased access to health services.
  •              More than $640 million of the total value of the new commitments will address housing recovery, including returning distressed single-family housing to productive use, retrofitting homes in 25 new cities, and developing affordable housing units for low-income individuals.

President Clinton concluded the two-day meeting by encouraging leaders to find ways to create an innovative and sustainable tomorrow. In the final session, “What’s Next? Towards a More Perfect Union,” Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development; Regina E. Dugan, senior vice president of Advanced Technology and Projects at Motorola Mobility; Duncan Niederauer, director and CEO of NYSE Euronext, Inc.; Atlanta Mayor Kasim Reed; Neil deGrasse Tyson, astrophysicist and director of Hayden Planetarium at the American Museum of Natural History; and Mark Vachon, vice president of Ecomagination at General Electric, spoke about the importance of STEM education, supporting American innovation, and the future of the American economy.

The second day of the CGI America meeting opened with the “Sustainable Finance” plenary session, where Donna Gambrell, director of the U.S. Department of the Treasury’s Community Development Financial Institutions Fund; Lisa Hall, president and CEO of Calvert Foundation; Ted Howard, executive director of the Democracy Collaborative; and Jim Koch, chair and founder of the Boston Beer Company, Inc., discussed sustainable access to capital to both grow existing businesses and finance new ventures.

Equal opportunity in employment and entrepreneurship was the topic of the second plenary session, “Pathways to Opportunity,” which featured Philadelphia Mayor Michael Nutter; Peter G. Peterson, chairman and CEO of the Peter G. Peterson Foundation; Chelsea Clinton, board member of the Clinton Global Initiative and William J. Clinton Foundation;  John Hope Bryant, founder, chairman, and CEO of Operation HOPE, Inc.; Kyle McCollom, founder of Triple Thread Apparel; Ai-jen Poo, director of National Domestic Workers Alliance; Jerry Sue Thornton, president of Cuyahoga Community College; and Joan Walker, executive vice president of corporate relations at Allstate Insurance Company.

CGI America is sponsored by J.B. & M.K. Pritzker Family Foundation, Allstate Insurance Company, The Dow Chemical Company, ExxonMobil, The Joyce Foundation, The Peter G. Peterson Foundation, and APCO Worldwide.

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Quick-fix Layoffs Strategy Could Hinder Long-Term Economic Recovery

AscentiveBusiness tips from the Ascentive team

Companies relying on short-term measures to deal with current economic conditions, such as cost-cutting by way of layoffs for a potential increase in return-on-assets, risk long-term decline, according to Deloitte’s 2011 Shift Index, released today by the Center for the Edge. In fact, the Index reveals that corporate economic performance in the United States has been declining over time as even the highest-performing companies struggle to maintain strong ROA rates while increasingly losing market leadership positions.

ROA is an indicator of management’s efficiency at using assets to generate earnings. It is calculated by dividing a company’s annual earnings by total assets. Despite labor productivity gains of nearly 250 percent, Deloitte’s study finds that public companies in the United States have experienced a 75 percent drop in ROA over the last 40 years.  The negative ROA trend is playing out across virtually all industries tracked in the Shift Index, suggesting a long term decline caused by deep structural changes.  If companies remain too focused on the current economic conditions and the implementation of short-term solutions such as layoffs, they can be vulnerable to even greater competitive challenges in the long run.

“A profound structural issue weighing on our economy began well before the current economic downturn and likely will continue for the foreseeable future unless business leaders address the underlying challenges,” said John Hagel, director, Deloitte Consulting LLP and co-chairman, Center for the Edge. “In this recessionary period, companies risk making decisions, such as layoffs, traditionally seen as prudent quick fixes that instead weaken their workforces and disrupt the flow of important knowledge, leaving them highly vulnerable amid intensifying global competition.”

According to the Shift Index, a more effective approach for companies may lie in shifting their view of employees from cost items to be cut as pressure mounts to a powerful form of asset capable of delivering greater and greater value over time. Companies that invest in their workforces under tough economic conditions may be able to drive greater returns during periods of recovery.

The Impact of the Super-Empowered Individual

Deloitte’s report indicates that super-empowered individuals are driving companies to be more transparent and find new approaches to cultivate brand preference and loyalty among consumers. Technology provides individuals with the power to drive short-term market fluctuations and is allowing them to leverage digital tools to organize in ways that previously were not possible. The Consumer Power survey (the basis of one of the Shift Index metrics) finds that 49 percent of consumers strongly agree they have more information about brands and products than ever before thanks to the Internet and social media tools. As a result, consumers wield greater power via social networks and sharing information in real-time. The survey also found that consumers trust businesses less often and seek out information via alternate sources rather than “buying in” to traditional advertising, manifesting in greater brand disloyalty.

Companies have the opportunity to use these same digital tools to draw new consumers to their offerings.  According to Deloitte’s analysis, social software also can be used within companies to cultivate a passionate workforce and tap into critical knowledge flows at all levels in order to reverse declining performance.

“Super-empowered individuals and passionate workers connect with like-minded people through social media to advance dialogue, learn and collaborate,” said Hagel. “Organizations should tap into both when seeking champions for a particular cause or product.”

Tapping the Passion of an Aging Workforce

According to the Bureau of Labor Statistics:

The U.S. labor force is projected to reach 166.9 million by 2018;

This represents an 8.2 percent increase from 2008, with an increasing proportion of older workers;

Workers aged 55 years and older are anticipated to leap from 18.1 percent to 23.9 percent of the labor force during the same period.(1)

As the workforce ages companies should consider how to engage workers of all ages and enable them to tap into diverse knowledge flows to deepen their experience and allow for increased collaboration. The 2011 Shift Index suggests that fostering effective participation among workers of all ages can be a key driver of performance improvement as companies draw upon the deepest set of knowledge and skills.

“The ability to ignite and sustain the passion of older workers is becoming more and more important as the labor force ages. Organizations should explore options to retain retiring employees as advisors within the company,” said Hagel. “Passionate older workers could be assigned roles where they can focus their energies on taking on performance challenges that have a measurable effect on a company. They often have well developed networks of relationships both within and across companies that can be very helpful in sustaining more robust flows of knowledge, accelerate learning and improve performance.”

(1) United States Department of Labor: Bureau of Labor Statistics, Occupational Outlook Handbook, 2010-11 Edition

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