Business Insider Magazine

INSIDE: No Recession Says Los Angeles County Economic Development Corporation
The South Bay Los Angeles B2B Magazine • Fourth Issue 2007 • Volume 3, Issue 2 • www.BusinessInsider.us • Complimentary Copy
BUSINESS
insider
The HR Balancing Act $
SLIP
PINK
401(k)
Plans
use
with
care Will Work
For Higher
Premiums
Tips
From
South Bay
Human
Resources BETTER OFFER
Professionals
PRESORTED STD
U.S. POSTAGE
GARDENA, CA
PERMIT 40
PAID
W e end 2007 and ring in 2008 by
bringing you timely information on one
of the most timeless topics in business
management — human resources. I
can’t think of a better way to judge
how well a business is run than by
how well it manages its people. We
decided to theme this issue “The HR
Balancing Act” and found that to be
an accurate description for the ever-
toughening challenges that confront
South Bay businesses. Companies
continually need to find better ways
to hire people and to motivate them
to maximize their productivity. The
health care crisis has brought topics
like health and wellness out of the gym
and into the workplace. Corporate
America now faces potential liability
for how it manages employee 401k
plans, something rarely thought about
just a few years ago. And with a tight
employee-driven job market, com-
panies are challenged to recruit and
retain the right talent like never
before. Employers need to pay more
attention to how they appraise their
employees and think about how it will
affect company morale and perform-
ance. And many businesses are sub-
jected to greater scrutiny to ensure
they are not hiring undocumented
workers. It truly is a balancing act that
requires great dexterity to perform
successfully and our professionals
who submitted articles for this issue
would surely suggest you don’t work
without a net. We also ran an in-depth
article on the economic forecast for
2008 and I personally want to
encourage readers to research and
factor in global monetary policy,
which is very precarious at the
moment, in any predictions about the
future of the economy. With the
dollar dropping rapidly on the world
market, it is wise to focus on more
than local economic factors like our
solid employment base and brisk
regional manufacturing, which were
the kind of indicators the Los
Angeles County Economic Develop-
ment Corporation used to determine
their prediction that the South Bay is
not facing a recession in the coming
year.
David Whitehead
Publisher
In This Issue…
COVER FEATURE:
The Great HR Balancing ACT 17–29, 32–34
Tips From South Bay Human Resources Professionals
Appraising Employee Performance 17
Guiding a Company’s Most Precious Assets for Long-Term Success
Employee Retention Strategies 20
Transform Workplace Stress Into Strategic Advantage 22
A Healthy Workforce is Worth Your Investment 25
Corporate Wellness in the Workplace
Fiduciary Responsibility of Handling My Company’s 401 (k) Plan 27
Do I need an Independent Investment Advisor
Where Have all the Accountants Gone? 32
Candidates’ Market Creates Recruitment Challenges for Accountancy Firms
Employers Face Tougher Regulations for Hiring Undocumented Workers 34
Proposed Regulations Could Impose Hefty Fines on Employers
Health Care Solutions for Small Business Owners 36
Technology Insider
Corporate Compliance 6
IT Requirements with HIPAA, SOX and Other Regulatory Governances
Techno-Ignorance 8
Corporate Illiteracy for the Information Age
The Real Deal 9

Mortgage Money is Back if You Can Qualify
WHO Comes First 10
Why it Matters to Put “Who” First in Hiring Decisions
No Recession for the South Bay 12
Says the Los Angeles County Economic Development Corporation
How to Recession-Proof Your Business 14
Community Announcements and Business Events Calendar 30–31
Meeting, Event And Banquet Resources 39
BUSINESS insider MAGAZINE
The South Bay Los Angeles
Business-to-Business Magazine
Publisher & Editor

David Whitehead
Contributing Writers
Kathleen M. Branconier,
Lori D. Burzminski, Pat Byrnes,
Tom Fuszard, David Holper,
Ken Roberts, Karl Schmidt, Brian Simon,
Tony Traven, Duncan Tooley,
Bob Volkel, David Whitehead,
R. Boyd Zack
Graphic Design & Production

David Whitehead & Susan L. Wells
Copy Editing & Proofing

Brian Simon
Advertising Sales Manager

David Whitehead
Assistant to the Publisher

Alexandra C. Hart
BUSINESS insider MAGAZINE

Welcomes Input From The Community:
All Letters to the Editor should be concise and
include the writer’s name, address and phone
number. BIM will publish select letters address-
ing relevant issues and topics discussed in the
magazine. We will not publish street address,
email address or phone number. If the editor
comments about a letter, the reader may
respond with at least as many words as were
used by the editor. We would like to stimulate a
sincere dialogue. All letters become property of
BUSINESS insider Magazine and are subject to
editing for length, content, grammar, punctua-
tion, etc. Letters may be submitted by email to:
BIMPublications@earthlink.net
Or mailed to:
BIM Letters to the Editor
P.O. Box 1032
Palos Verdes Estates, CA 90274
(310) 872-9732
www.BusinessInsider.us
www.TheBizBoard.net
BUSINESS insider MAGAZINE makes every
attempt to provide business decision-makers
with current and accurate information. How-
ever, BUSINESS insider MAGAZINE disclaims
any implied warranty about the correctness or
accuracy of information published in BIM and
www.BusinessInsider.us or its appropriateness
for a particular purpose. You assume full
responsibility for using the information and
understand and agree that BUSINESS insider
MAGAZINE is neither responsible nor liable for
any claim, loss, or damage resulting from its
use. Opinions and/or claims of BIM contribut-
ing writers and advertisers do not necessarily
reflect the opinions of BIM’s publisher.
© 2007 BIM Publications
& BUSINESS insider MAGAZINE
All Rights Reserved
T E LCU H
C O M N
N O
I NLSO
I DGE YR I N S I D E R
BY R. BOYD ZACK
S O WHAT IS ALL THE HYPE ABOUT HIPAA AND SOX

anyway? Does your company need to be concerned
with the regulations? Are you in danger of being out of
compliance? Do you need to hire a consulting firm to come in
and perform a compliance audit on your company?
If you are working in the health care industry, then you must
concern yourself with both regulations. HIPAA enables health
care providers and insurance institutions to exchange informa-
tion in a standardized and secure manner that is easy and uni-
form. Privacy of Individually Identifiable Health Information is
regulated by entities covered by HIPAA.
But what about organizations that are not part of the health
care industry? Must we expend our IT resources and dollars on
the HIPAA regulations? To answer these questions, we need to
refer back to the regulations and guidelines set forth. As clearly
stated in the United States Department of Health and Human
Services website (http://www.hhs.gov/ocr/hipaa/bkgrnd.html),
the HIPAA regulations do not apply to companies outside the
health industry.
SOX is a completely different beast altogether. The Sarbanes-
Oxley Act (SOX), enacted in 2002, helps improve corporate gov-
ernance of American public companies. An offshoot of the
Enron and WorldCom financial scandals, this law increases the
level of scrutiny of public companies. More importantly, it
makes CEOs and CFOs personally accountable for any financial
misstatements. Public companies now realize that unlike any
other regulation, SOX compliance is a state — not an event.
SOX compliance requires continuous monitoring and
reassessment of financial risks and controls to close any loop-
holes that could potentially lead to misstated financial state-
ments. The key element of the SOX regulations is the
requirement that companies must establish — and then maintain d) The CEO and CFO handle the internal controls.
— bulletproof accounting procedures that eliminate any possi- e) The CEO and CFO report any deficiencies in internal controls
bility of creative accounting. The new systems must promptly or fraud involving the management of the audit committee.
identify any personnel who attempt to alter established account- f) The CEO and CFO indicate any material changes in inter-
ing methods or any existing financial records in an effort to nal controls.
enhance their company’s financial performance reports.
The question to ask is if SOX applies to your company. As Sect 404(a) Internal Control Reports
enacted, SOX applies to: All publicly traded companies in every Each annual report must include an “internal control report”
industry in the U.S., each of their divisions, and all of their stating that management takes responsibility for an adequate
wholly owned subsidiaries as well as any non-U.S. public internal control structure and an assessment by management of
multi-national company engaging in business here. While not the control’s effectiveness. The report must note any shortcom-
required by law as yet, private firms may also comply with the ings in these controls.
SOX financial framework requirements in preparation for initial
public offerings (IPOs), private funding or simply to achieve a Sect 404(b) External Auditor’s Attestation
“best practices” benchmark. Registered external auditors must attest to the accuracy of man-
The SOX elements below require actual certification or spe- agement’s assertion that internal controls are in place and are
cific public actions by companies to remain in compliance. effective.
Sect 404(a) Internal Controls Report is the area in which a
Sect 302 CEO/CFO Certification of Annual and significant IT play takes place. Internal controls include audit
Quarterly Reports ability of systems both manual and automated. Information
a) The CEO and CFO review the entire report. Technology systems that derive or provide information to
b) The report contains no misrepresentations. financial systems used for reporting must include checks and
c) The company presents its financial information fairly. balances to ensure consistency from one point to the next and
6 S O U T H B AY B U S I N E S S I N S I D E R M A G A Z I N E 4 T H I S S U E 2007
to prevent a single individual from falsi-
fying that information.
What does SOX compliance

require?
Public U.S. corporations across entire
enterprises must establish a financial
accounting framework producing finan-
cial reports that are readily verifiable
with traceable source data. The source
data must remain intact and not be sub-
ject to undocumented revisions. Any
changes to software application pro-
grams within the enterprise that have any
bearing on the corporate financial condi-
tion must include documentation as to
what was changed, why the change, by
whom, and when.
Because financial data and financial
applications are all embedded within a
company’s IT enterprise, the responsibility
for compliance to SOX requirements
divides almost equally between the cor-
porate finance and IT departments. SOX
compliance requirements for IT rely on
the Control Objectives for Information
and related Technology (COBIT), estab-
lished by IT Governance Institute (ITGA).
The framework guidelines defined by
COBIT dictate all major accounting firms’
initiatives to audit company IT infrastruc-
ture compliance or shortcomings to SOX.
SOX compliance essentially requires
a complete change in corporate mindset
from an IT perspective. It entails adopting
and adhering to a structured approach to
software and database systems. Some of
the software change management objec-
tives established with COBIT include the
following:
• Software changes must regulate in

accordance with the organization’s
change management procedures.
• Procedures to control the handover
of software from development to test
to production environments should
be set.
• Development personnel cannot
migrate applications and data from
the test environment to production.
• A similar software management pro-
cess is in place whether developing
a new application or modifying an
continued on page 13
4 T H I S S U E 2007 S O U T H B AY B U S I N E S S I N S I D E R M A G A Z I N E 7
T E LCU H
C O M N
N O
I NLSO
T HERE WAS A TIME WHEN THE RICH

AND POWERFUL DIDN’T NEED TO
KNOW HOW TO READ OR WRITE IN
ORDER TO RULE. But can you imagine anyone
doing so today without higher education? Let
alone basic literacy. Imagine a time shortly after
the invention of movable type when mass liter-
acy overwhelmed society and those too old to
learn had to fake it lest they seriously compro-
mise their credibility and authority.
Well, the new information age has done it
to us again. Techno-illiteracy is the great
knowledge gap of our time that is torpedoing
productivity in the workplace. Unfortunately,
a large part of the problem is with senior man-
agement and older employees. Personal com-
puters started popping up in workplaces
across America in the mid-eighties, captivat-
ing the young and curious while drawing con-
BY DAVID WHITEHEAD
tempt from the not-so-young in corporate
management who thought this computer thing was just Managers facing techno shock did everything they could to
another passing fad. This contempt finally turned to fear that delay or sometimes sabotage the implementation of technology
has carried into the 21st Century, where it is still impeding the until they realized they couldn’t hold back the tide long enough
proper implementation of technology in the workplace. to reach their retirement. Others tried to fake it by pretending
If you can relate to this, don’t feel bad. You are not alone. they knew about technologies where they had no training or
This is something that always happens when technology takes education, and gave bizarre directives as a result. Some still do:
a quantum leap ahead of decision-makers’ capacities to learn “Why waste time booking your flight on line when you can call
what it really is and how to make intelligent decisions regard- my travel agent?” Or, “Why don’t you want to use those beauti-
ing its use. It all makes sense when you think about it. When ful paper forms with the triplicate carbons I spent good money
the technology wave started in the mid-eighties, early baby printing for you?” To the tech-savvy generation, these kinds of
boomers had begun to dominate corporate management. The directives seem moronic, but there are still Neanderthals out
vast majority of them never used computers when they were there giving them and enforcing archaic systems.
growing up. Unless they majored in computer science or a For those of us who have spent our careers coping with
technical field that required them to use mainframe computers, techno-phobic bosses and co-workers, it has been a frustrating
they were educated on paper and most of them spent decades experience indeed. I’ve had to deal with people with authority
learning how to manage paper-driven systems while the com- who didn’t understand the tools I used to do my job. Most
puter work was done on mainframes by those mysterious nerds importantly, they didn’t understand the quantum leap in pro-
locked behind the glass doors. Business people were largely ductivity gained by automating systems and thought we were
insulated from the emerging technologies. However, that insu- being less productive when problems crept up while we were
lation disappeared rapidly about 20 years ago and many older developing and troubleshooting our new procedures. Forcing
baby boomers still haven’t recovered from the shock or employees to continue with tedious low-tech systems they
adapted to the tools they must now use to conduct business. know are less efficient harms morale in the long run and
And oh how their subordinates have suffered as a result. causes younger tech-savvy staff to lose respect for manage-
The “paper chase” rapidly morphed into a “megabyte ment. These sorts of problems are still with us and won’t go
chase,” then to a “gigabyte chase” and is now on the verge of away anytime soon.
becoming a “terabyte chase.” It’s not surprising that pre-tech So if you have been covering up your own techno-illiteracy
educated managers went into panic mode when they realized for years and it has been causing problems in your workplace,
they had no competence to manage this stuff and it’s just get- it’s time to face up to it even if you are an old dog. If you’re not
ting worse every year as they become less trainable. Now we ready to retire, you are going to have to learn some new tricks
know why those old nerds who pioneered computing thought to maintain your position of authority and keep the respect of
it was a better idea to keep the real computers with them your subordinates.
behind locked glass doors. continued on page 38
A R E A L E S T A T E P R O ’ S P E R S P E C T I V E
The Real Deal:

Mortgage Money is Back if You Can Qualify
BY KEN ROBERTS
I n the never-ending saga of the

Mortgage Meltdown, Credit
Crunch, Sub-Prime Fallout and
corresponding Real Estate Market Cor-
rection, let’s take a break and see where we are. Certainly we have
amortized payment. Most interest-only loans are essentially adjustable
rate mortgages. They usually have a fixed interest and payment rate for
the first three, five, seven or ten years. After the fixed term of the loan,
they change into an adjustable rate mortgage. There is no negative
amortization, and they are tied to an index like the six-month LIBOR
not seen the worst of losses and write-downs from hedge funds, pen- (London Inter-Bank Offered Rate) plus a margin (lender profit). As of
sion funds and bank exposure to sub-prime investments. Estimates this writing, the six-month LIBOR is 4.853 with a typical margin
project as much as $400 billion in losses by the time the smoke between 2.25 and 2.75, depending on the lender. To calculate the
clears. This is a drama that will unfold slowly over the next year. The fully indexed rate, you add the index value to the margin, say 2.5, and
creation of a $100 billion superfund as a stopgap measure ensures to your fully indexed interest rate is 7.353%. That is what your interest
prolong the coming agony, at least until after the elections next rate would be after the first adjustment at the end of the fixed term if
November. More on this later… that were occurring today. The fully indexed, fully amortized payment
The good news is that mortgage money is back. The secondary on our $400,000 loan example at 7.353% is $2,757 per month. So
market investors for Jumbo loans, those over $417,000, have returned borrowers must qualify for a payment that is $757 per month higher
to the marketplace. Real estate loans are bundled together into mort- than their actual payment. That would require an annual income of
gage-backed securities and sold to pension funds and other investors. over $100,000! So today, the borrower who makes $78,000 can only
A large part of the trauma of the credit crunch that started in August qualify for a $290,000 loan and a $390,000 purchase price with the
was the inability of lenders to sell mortgages they funded off ware- same $100K down payment. With borrowers qualifying for less, you
house lines extended by banks. Investors pushed away from the table can imagine the impact on the real estate market.
and refused to purchase Jumbo mortgages. The ability of lenders to For those interested in the negative amortization, absurdly low
fund and then sell off loans means they will not run out of money to teaser rate loan programs sometimes called Pay Option Arm or Pick-A-
lend. I am thrilled to report that rates for Jumbo loans have returned to Pay, guidelines are also changing and rightfully so. These loans give
normal. We are back to a more traditional spread between Conform- you the option of paying less than you owe; meaning much less than
ing and Jumbo loan amounts, about .5%. So while rates are very the interest-only payment. If you use the minimum payment option,
good again, underwriting guidelines are dramatically different. your loan amount actually increases rather than decreases in the first
The changes intend to right past wrongs in loose lending stan- several years. Originally designed to help well-heeled borrowers man-
dards that allowed people to overextend themselves. The goal is to age their cash flow more effectively, these loan programs have single-
protect consumers from themselves or anyone else who might abuse handedly caused more mayhem than any other. The low starting
the system. This tightening of guidelines will dramatically reduce payment rate, (as low as 1%), has been used to sell an abnormally low
future defaults, but on the flip side make it much more difficult for monthly payment to unsuspecting borrowers without fully disclosing
everyone to qualify. the pitfalls. That and it being used by people buying more house than
As I have said before, the interest-only option loan is a very power- they can clearly afford has been a lethal combination. Imagine paying
ful financial planning tool when used properly. When coupled with a 1% and owing 7.5% or more. When loaded up with a three-year pre-
financial plan to invest what would normally be principal reduction payment penalty and high margin, this loan could have a 9% fully
payments to get a compounded rate of return (as opposed to paying indexed rate! The only safety valve is a negative amortization life cap.
down simple, tax- deductible interest), it is the way to create wealth. When the loan amount increases to 110%–125% of the original loan
With interest-only loans, instead of allowing borrowers to qualify at amount (lenders vary), the borrower loses the option to make mini-
the interest-only payment, new guidelines require bank underwriters mum payments. The good news is that it stops eating up your equity.
to use either the fully amortized payment or the fully indexed, fully The bad news is you end up with a payment that’s triple what it was!
amortized payment. The fully amortized payment is principal plus From our $400,000 loan example, a 1% payment rate requires a mini-
interest. Let’s take a $500,000 purchase with 20% down. That would mum payment of about $1,287 per month. If there were a 110% neg-
mean a $400,000 loan with, say, 6% for the rate of an interest-only am cap reached within two years of taking out the loan, the new
loan. The interest-only payment is $2,000 per month. The fully amor- minimum payment would be $3,093 per month at 7.353%. At 9%, it’s
tized payment is almost $2,400 per month, a $400 difference. To $3,592 per month or almost three times the original minimum pay-
qualify for the interest-only payment, the borrower needs about ment. New guidelines require borrowers to qualify at the negative
$78,000 in annual income. The same borrower needs about $90,000 amortization loan amount cap (110–125% of your actual loan) and
to qualify for the additional $400 fully amortized payment. the fully indexed, fully amortized rate. So they are taking the worst
Now let’s see what happens when we use the fully indexed, fully continued on page 16
C E
R OCL R
U U
M INT M
I N
ESN ITD E
I N
RS I D E R
WHO, WHAT, WHEN, WHERE AND WHY…

And you will notice it starts with the WHO. As business lead-
interact with people and then set them down at a computer for
the majority of the day? Do you end up with a happy employee?
ers, we focus on the WHAT, WHEN, WHERE and WHY, but Or does this person constantly get up during the day and wan-
seldom do we understand the WHO part of the equation when der around the office in order to chat with co-workers?
hiring or assigning people to specific roles. So what normally happens in this case? You establish a policy
I work with several businesses and it is common for a person that limits breaks and then you have a formal discussion with the
to be hired for WHAT they are, looking into their background, employee in question and explain the need to bear down and
education and experience. And then be fired for WHO they are. focus on the job at hand. Does this sound familiar? Now when
This may seem like an oversimplification, but it can have a huge the problem continues and they keep getting up and wandering
impact on your business. around the office, then further action is taken and soon you are
So let’s talk about the WHO. Every individual possesses mea- looking for someone new.
surable talents or work traits that are unique. These are not skills Of course, during this period you invested a significant
that can be learned, but rather represent the way a person actu- amount of time, energy and money in the recruitment and train-
ally views the world and processes information. For instance, ing process. More importantly you have seen a loss in productiv-
there are individuals who are extraordinarily intuitive and can ity — an expensive proposition no matter how you slice it.
instantly relate to people. Throughout their lives, they have been There is a way around this problem. You can definitively
able to connect with people. In this case, their social skills are identify the type of work a person does best through the use of
high on the work trait scale. Therefore, they would be well an assessment tool.
suited for face-to-face customer service or some form of sales. Furthermore, you can use this information to better under-
If you combine that work trait to relate to and interact with stand existing staff and reallocate the work, based upon what
people along with that of someone who is organized, can each person is naturally good at, as a way to maximize work-
instantly recall a great deal of information and can work in a fast place performance while also improving morale.
paced environment, then you have a person who would be ideal The mind-set shift causes you to stop managing the process
for the restaurant industry or event coordination. and trying to change employees’ behavior. Instead, you can
Also, hiring managers assume this type of person would work organize tasks to suit a person’s work traits by understanding
well at any position. Let’s think about this for a moment. WHO they are and the kind of work you are assigning them.
In any job or role, there are specific responsibilities and dif- Once your organization is focused on WHO people are and
ferent types of work that need to be done. If the vast majority of what type of work they are best suited for, then the conversation
the work to be performed requires a person to focus for starts to change in relation to managing people. Managers start
extended periods of time while entering information into a com- focusing on a person’s strengths, instead of trying to overcome
puter and double-checking the information for accuracy, then weaknesses. They start assigning work based upon what an indi-
would you want to hire someone who needs to interact with vidual does best and keep an eye out for training programs in
people? alignment with these work traits. In this case, the employees
What would happen if you hired someone who loves to enhance their skills through targeted training geared toward
what they inherently do best and enjoy The best employers really care about use this knowledge. Then they can train
the most. This concept applies to every creating a positive work environment. their staff on how to measure batting
position and any type of company. They are balanced. Of course you have to average and have some fun figuring
Now managing people becomes less be profitable to stay in business, but with how to maximize potential and bring
stressful and more enjoyable. Why this the right balance both objectives can be out the best in people.
occurs is quite remarkable. When man- accomplished.
agers are no longer investing their Finally, they understand WHO peo-
Tony Traven is a licensee for Culture
energy fighting to change the natural ple are through the use of an assess- Index in the Los Angeles metro area.
behaviors of their staff, managing peo- ment tool and train the front line Tony can be reached at 310- 683-3607
ple requires less effort. Think about this. managers and supervisors on how to or at tonytraven@mac.com.
How much time does it take to manage
your best people? Then how much time
does it take to manage those who are
misplaced?
Extremely progressive /proactive com-
panies know you can measure work traits
and gain a significant insight into the
WHO when making hiring decisions and
clearly matching the type of person with
the position. This applies equally when
creating project teams using existing
employees. The distinction is: Knowing
WHO people are and how they will
respond in specific roles instead of guess-
ing. Knowing comes from measuring
work traits using an accurate assessment
tool and then developing the skills and
knowledge to apply it.
Also, excellent companies measure
the effectiveness of their hiring practices.
I’m going to refer to this as a company’s
“batting average.” Great companies not
only measure employee retention, but
also how effective they are at hiring peo-
ple that make them better. They keep
score.
The best way to keep score and see
how effective you are at hiring people is
to use standard performance criteria for
any position and compare the job perfor-
mance of new hires with existing staff.
How many singles do you hit? This is
where new hires rank in the top 50%…
How many doubles? Top 25%… How
many triple and home runs? This is
where new employees statistically rank
in the top 10%.
Out of all the employees hired in your
company in the last year, what is you bat-
ting average? Are most of your employees
happier and more productive and is the
company more profitable? There is no
need to make excuses for market condi-
tions, but are you getting better and are
you growing.?
C C
E O O
L U
N M
O M
N I ICN S
I N
I D
S E
I D
RE R
BY BRIAN SIMON
D ESPITE GLOOM AND DOOM PROGNOSTICATIONS

across the country on the heels of the sub-prime col-
lapse, the South Bay economy is not heading into
recession, according to the annual forecast released at the end of
October by the Los Angeles County Economic Development
Corporation. The report anticipates marginal area economic
The presence of LAX, growth of 0.9% in 2007 and 0.7% in 2008, thanks primarily to
two ports, Los Angeles Air Force Base favorable short-term prospects for key South Bay economic
drivers, including the defense/technology, recreation/tourism,
and attractive coastal communities international trade, transportation and manufacturing sectors. It
continue to foster the South Bay’s also predicted brighter long-term outlooks for so-called “bou-
economic prospects. tique” industries such as automotive, biomedical and oil (refiner-
ies). Workers’ payrolls should also increase by 4.7% this year
Still, though the LAEDC forecast
and 5.4% in 2008.
predicts continued growth, Despite the relatively good news, the South Bay faces several
the projected figures for the South Bay challenges in the near future, the report concludes. These include
actually fall short of those anticipated dealing with shortages of both land and housing; finding ways to
ease traffic congestion, particularly on the 405; and resolving neg-
for the state and county. ative perception surrounding future Los Angeles International Air-
port upgrades as well as environmental obstacles to port
expansions.
Jobs and Population

Assuming the inclusion of San Pedro and Wilmington as well as
communities in the Harbor Gateway area, the South Bay’s total
population will swell to just under one million people by January
2008. According to 2006 stats, there were about 486,000 jobs in
C O L U M N I N S I D E R
the South Bay, with the highest concen- On the other hand, industrial real CORPORATE COMPLIANCE
trations in professional and business ser- estate is thriving, with vacancy rates of continued from page 7
vices and manufacturing. just 2.2 percent, primarily due to the existing application.
Job losses are expected in manufac- South Bay’s favorable location situated • Staff must follow procedures that
turing, construction and information between two major ports and LAX. The ensure all requests for change get
over the next year. However, the area’s vacancy figures are expected to remain assessed in a structured way for all
thriving aerospace and high tech sector, low due to the shortage of land to build possible impacts on the system.
centered primarily in El Segundo and larger warehousing complexes. • Formal procedures that ensure sign-
Redondo Beach, will keep manufactur- On the office side, the South Bay’s offs or approvals should govern the
ing afloat and in better overall shape overall vacancy stats are higher than release of software revisions and
than elsewhere in the County, the fore- the rest of the County (13.2 percent releases.
cast notes. Retail sales are also expected versus 9.5 percent), but the numbers • Installation of software changes must
to jump by 4.6 percent. are notably skewed due to two inordi- address data conversion.
nately troubled areas (the 190th Street • An independent (from developers)
Business Stats corridor adjacent to the 405 Freeway group must test changes prior to
The 2005 census lists 26,553 businesses and Century Boulevard next to LAX). installation into the production envi-
in the South Bay, with retail leading the The report lists several key recent ronment.
way (with just over 12 percent of the expansions into the area, mostly in El • Back-out plans for software changes
total), followed closely by professional/sci- Segundo where IT and co-location should be in place.
entific/ technical services, and health firms have begun to flock as an alterna- • Internal control measures should
care/social assistance. More than half the tive to Downtown Los Angeles. Though ensure distribution of the correct soft-
businesses have four or fewer employees, asking leases in the area continue to ware element to the right place, with
while just 27 have over 1,000. More than rise, they are still significantly lower integrity and adequate audit trails.
one-third of the total businesses in the than those of the Westside. • The software management frame-
South Bay are based in Torrance and Gar- work should require that a test plan
dena. Insider Summary be created for every development,
The presence of LAX, two ports, Los implementation and modification
Wages Angeles Air Force Base and attractive project.
According to 2006 data shown on the coastal communities continue to foster
report, the South Bay boasts the third the South Bay’s economic prospects. For SOX compliant companies, gone
highest annual average wage ($51,689) Still, though the LAEDC forecast pre- are the days of the ‘quick change’ to IT sys-
among LA County’s 14 regions, trailing dicts continued growth, the projected tems made by the development staff. In
only the Westside and Central/Down- figures for the South Bay actually fall many respects, the pressures SOX exerts on
town LA. Among South Bay cities, El short of those anticipated for the state the IT side of an organization force a higher
Segundo ranks number one by far in and county. level of control and ultimately a higher
annual average wage at $81,621, Not everyone is as optimistic as the level of overall software quality. With inde-
thanks to the presence of the high-pay- LAEDC. Just before the release of the eco- pendent testing required of all changes and
ing aerospace and technology sectors as nomic forecast, a Los Angeles Business new systems as well as management sign-
well as more than a dozen Fortune 500 Journal article suggested that a recession off, the likelihood system bugs appear will
companies. Among industries, the pro- was more likely in Los Angeles than in diminish. Effectively implemented, SOX
fessional/scientific/technical sector pays the country in general. Declines in home causes the IT enterprise in US corporations
the most on average ($96,008). sales, decreased construction, weak to grow up and act like real software devel-
retail/wholesale activity and financial opers/Implementers.
Real Estate market upheaval prompted the pes- Additionally, COBIT establishes several
Like everywhere else, the South Bay will simism. Yet, as writer (Anderson Center measures to ensure security of systems and
continue to suffer from the current hous- for Economic Research at Chapman Uni- data integrity. The list below is a subset of
ing downturn which is not expected to versity Director) Esmael Adibi explained, the security measures required by SOX.
begin recovery until at least 2009, the “These outcomes should not be surpris-
forecast states. Default notices and fore- ing. Significant economic slowdown and • Create security measures in line with
closure rates are also expected to grow possibility of recessions are the natural business requirements, including
in the foreseeable future. outcome of prolonged periods of growth translating risk assessment informa-
The area’s intrinsic appeal continues and years of risk-taking behavior. The tion to the IT security plan.
to fuel housing demand, but new con- adjustment period will be painful in the • Control, monitor and log the use of
struction is limited by the scarcity of short-run but will ensure a long-run sensitive software utilities.
available land. growth.” continued on page 37
E C O N O M I C I N S I D E R
HOW TO
RECESSION-PROOF
YOUR BUSINESS
BY BRIAN SIMON
R
ELIABILITY HAS ALWAYS BEEN THE FOUNDATION of the
American economy. Even in the face of various wars,
acts of terror, natural disasters, market crashes, political
turmoil or other cataclysmic events, one could always bank on
the fact that over the long haul the stock market goes up, homes
appreciate, wages increase and the economy grows. Then again, all
bets may be off in the wake of 9/11 and given that the long-term
effects of the increasingly global economy remain to be seen. Yet so
far, nothing has altered this tried and true formula.
The recent housing downturn,

drought and escalating costs for oil and
energy have prompted mumblings of a
recession on the horizon. Yet according
to the latest forecast by the Los Angeles
County Economic Development Corpo-
ration, this is unlikely to occur.
In the business world, recessionary
cycles tend to cause a shake-out not
unlike evolution: the strong survive and
those who cannot adapt become
extinct. Whether a recession is coming
or not, it is always prudent to be pre-
pared in the event of any economic
downturn.
While some business owners see
cutting expenses and laying off staff as a
quick fix, that mindset often does more
harm than good, especially when con-
sidering the long-term goals of a given
company.
First, the bad news: Nothing is com-
pletely recession-proof. That said, there
are a number of wise safeguards busi-
ness owners can implement to ensure
that the hard times won’t be crippling.
Then again, in the words of South Bay
Economic Development Partnership
E C O N O M I C I N S I D E R
Executive Director Joe Aro, “You don’t

need a recession to put you out of busi- Though it’s important to remain focused
ness.”
Many of the following quick tips are on your core business products and services,
just as valid during economic booms.
it doesn’t mean you should pigeonhole yourself.
After all, it is better to plan for the
worst-case scenario so you are always Find new applications for your product that can
ready for it if and when it arrives.
re-invigorate relationships with existing customers.
Keep a Cash Reserve
While it’s imperative to monitor spend-
ing and to keep a watchful eye on Stay Ahead of the Curve precisely when companies should step
expenditures and revenues, it’s also crit- “The rule in business is to obsolete your- up and evaluate their marketing plans
ical to set some additional monies aside self before someone else does,” says Joe and look to broaden their efforts
for a rainy day. Even some extremely Aro. Keep a close eye on any and all through both existing and new print,
well-run businesses shut their doors in new technology you can incorporate into online and other media options. At the
the wake of 9/11. Why? They didn’t your business, whether that means inte- same time, be careful to focus that effort
have a cash reserve to carry them grating time-saving software, upgrading on your core target market and not to
through the lean periods. How much is your product, or using Web 2.0 applica- waste advertising dollars by simply “get-
enough? Theories vary, but (as is the tions to streamline communications. ting your name out” to whomever.
case in personal finance), at least six
months of operating expenses is recom- Diversify Your Customer Base Cut Waste, Not Want
mended. Though it’s important to remain focused Reducing fixed operating expenses —
on your core business products and ser- those not affected by sales revenues —
Keep Your Customers vices, it doesn’t mean you should pigeon- can help ease financial woes during a
at the Forefront hole yourself. Find new applications for downturn. Examples may include secur-
When it comes down to it, there is your product that can re-invigorate rela- ing better deals for printing services and
nothing more important than your cus- tionships with existing customers. Then health insurance and eliminating
tomers. According to statistics from the look beyond the tried and true to deter- unnecessary extravagances such as cor-
U.S. Small Business Administration, far mine if you can appeal to a previously porate limousines and expensive meals.
and away the biggest reason customers untapped market. “You can’t run your If cutting staff becomes necessary, it
leave a business is not because of price business in a vacuum — not in a global should not mean unreasonably increas-
or product quality, but because they feel market,” Aro says. “You have to ask your- ing the workloads of those employees
unappreciated. self who else can use that product?” who are left.
Stay in contact with your clientele
via newsletters, mailers, e-mails or peri- Increase Advertising and Maintain Open Communication
odic phone calls to keep them current Marketing with Staff
on any new products or services, but It may seem to go against the grain to Keep your employees abreast of what is
most importantly to make sure you are spend more when you have less. Thus, happening with the company — keep-
not forgotten. Additionally, customer many business owners make the mis- ing them in the dark spawns distrust —
surveys are a useful way to invite inter- take of cutting back on advertising and look to them for important and cre-
action and ask for input on how your when times are tough, stating that they ative input that can make a difference.
service can improve. have to reduce expenditures. Yet this is Enlisting employees to develop creative
ideas that can streamline operations not
only helps the bottom line but also
increases morale.
Reducing fixed operating expenses — those not affected by
Sources:
sales revenues — can help ease financial woes during a downturn. 7 Surefire Strategies to Recession-Proof Your
Business by Collin Almeida
Examples may include securing better deals for printing services (PowerHomeBiz.com):
Recession Proof Your Business
and health insurance and eliminating unnecessary extravagances (Blogbusinessworld.blogspot.com)
Surviving a Downturn by Ross Hall
such as corporate limousines and expensive meals. (PowerHomeBiz.com)
Kevin Donlin (Guaranteedmarketing.com)
A R E A L E S T A T E P R O ’ S P E R S P E C T I V E
KEN ROBERTS continued from page 9 are some areas and property types declining faster than others. It is not
case scenario and making you qualify for that upfront. It’s a good thing! an even, across-the-board correction. The credit crunch in August
It will return this loan program to its intended use — those that can really accelerated softening prices because it took buyers without
afford it. viable financing out of the market. With the return of good financing
Lending guidelines still change daily. Finding what we call options, albeit tougher guidelines, buying opportunities galore now
expanded criteria loan programs like stated income and 100% financ- exist for well-qualified buyers and investors. A growing number of fore-
ing is much more difficult. They both require higher credit scores, and closures and bank owned (REO) properties coupled with desperate,
stated income requires lower loan-to-value ratios. But they do exist. motivated sellers will create a big win for those with the capacity to
Now more than ever, you need an expert who is approved with mul- buy. The logic is simple. When is the best time to buy good stocks?
tiple lending sources and who is also a fiduciary to help structure any When everyone is selling. When is the best time to purchase good real
real estate financing. Experts say 50% of mortgage originators will estate? When no one wants to buy. I’ve seen it many times. The last
likely leave the business. That should leave more seasoned profession- substantial real estate market correction ended at the beginning of
als to advise you without personal financial gain as the primary moti- 1998. Prices bottomed out, bounced back and then increased $50,000
vating factor. There are proposals for legislation requiring everyone within a few months. And it only took 18 months for prices to surpass
originating a mortgage loan — whether a broker or bank employee the 30–40% decline we experienced. The only way you knew the
— to be licensed and obligated to adhere to business standards and market hit bottom was after you already missed it! This downturn will
continuing education requirements. Currently, a bank loan officer has end and values, as always, will increase over time. If I were contem-
no licensing or experience requirements. Some states have no licens- plating a real estate purchase in the near future, I would get pre-
ing requirements for mortgage brokers. The public deserves better. approved, have money in hand and be patient. Just the right property
Raising the threshold of entry into the mortgage business is certainly a at just the right price is the right recipe for long-term gain. Excuse me! I
necessary step. Next, professional standards of conduct and educa- think I hear someone knocking. I think it’s Mr. Opportunity!
tional requirements need to be implemented.
A slowing economy and declining consumer confidence make an Ken Roberts is a mortgage planner with nearly 30 years experi-
economic downturn a greater possibility. That should keep rates low ence in the South Bay real estate market. Ken can be reached
moving into next year. The real estate market continues to slow. There at (310) 792-7090.
BY LORI BURZMINSKI
Guiding a company’s most valuable assets to reach its potential

creates a platform for long-term success
W HILE SOME MANAGERS DREAD giving a perfor-

mance appraisal, others see the process as one
more opportunity to ensure a company’s success.
It empowers employees to stretch beyond their comfort zones
and realize their full potential. A formal performance appraisal
racy of the performance appraisal by basing the information on
documentation rather than memory, and ensures the manager
will look at an employee’s performance during the entire
appraisal period rather than just the most recent events. As
important as this information is to the process, having a record of
is a platform from which to summarize the informal evaluations behaviors to back up ratings generally helps a manager feel
that have occurred during the past year, praise the employee for more confident going into the performance appraisal meeting.
a job well done and discuss areas for improvement. Be Truthful. When conducting evaluations, it is critical to
Feedback on employee performance, both positive and nega- present an objective and accurate analysis of the employee’s
tive, is most effective by continuing throughout the entire year as performance and resist the temptation to give false praise. On
needed. Waiting for the annual performance appraisal to pro- the other hand, evaluations should never contain insulting,
vide feedback is a disservice to the employee and to the entire defamatory or inflammatory language either. Never sugarcoat
organization. Bringing performance problems to an employee’s the review, but at the same time be diplomatic and tactful.
attention as they arise also prevents unnecessary surprises during Managers should choose their words carefully!
the appraisal meeting as tend to happen when such problems Be Fair and Consistent. This may require some soul-search-
are “saved up” over the course of the year. ing on the manager’s part to make sure employees are treated
An evaluation system functions as a valuable tool providing equally in the review process. Imposing stricter requirements
constructive comments and suggestions for positive change. A on one employee because of personal feelings, be they posi-
good evaluation system represents an important investment in tive or negative, limits the ability for that employee to grow
an organization’s most important asset: Its employees! and contribute to the company’s success. Likewise, ignoring
problems because a person is well-liked or the manager is
The Appraisal Process afraid to upset them creates similar problems.
Keeping a written “memory file” is an effective way to track Set realistic goals. Unrealistic objectives are surefire ways
and refer back to information about an employee’s perfor- to set up employees for failure. If additional training or guid-
mance during the past 12 months. Reviewing the memory file ance is necessary, make sure that arrangements are made to
for positive or negative performance that occurred during the provide employees with the opportunity to expand their skills.
year allows that information to be objectively incorporated Give employees every reasonable tool to ensure their success.
into the performance appraisal. This could be in the form of
notes on specific behavior. Copies of exceptional documents Common Rating Mistakes
such as letters of appreciation or warnings should also go into Halo and Horns. The tendency here is to generalize ratings
the memory file. based only on one or two specific traits. The shortcomings of an
As a tool to prepare for the performance appraisal, the mem- employee who is especially cooperative may be overlooked as
ory file provides evidence to support ratings, increases the accu- continued on page 18
PERFORMANCE APPRAISALS
continued from page 17
may the strengths of an employee who
frequently argues.
Clones. The manager thinks that by
extremes they will avoid problems by rat-
ing all employees high or low. The man-
ager justifies the high rating because
“they’re all good” or the low ratings
because “they really need to be chal-
lenged.”
Similar-to-Me. The tendency to give
slightly higher ratings to employees who
are similar to you in attitude, work
habits, etc. than to employees who are
different from you.
Contrast. A manager rates an review past performance, the manager lished for the meeting, try not to post-
employee high (or low) because an also needs to give an employee a vision pone or reschedule. The performance
extremely high (or low) rating is given for future performance. Establishing appraisal is an important meeting and
to another employee. This tendency goals gives the employee something to needs to be treated as such.
completely misses the mark of focusing strive for in the long-term. Reviewing At the meeting, the manager should
on the requirements of the job. these goals helps end the appraisal explain the purpose of the discussion.
Most Recent Events. A manager gives meeting on a positive note. Putting the employee at ease by explain-
an undue amount of weight to what the Performance targets should be clear ing that the purpose of the evaluation is
employee has done in the last few weeks and specific. Some examples are illus- to look at overall performance, assist the
rather than what the employee has done trated in the figure above. employee to develop and grow and not
over the entire appraisal period. just to find fault sets a positive and con-
Before, During & After the structive tone for the meeting. A man-
Suggestions Appraisal Meeting ager may want to give a copy of the
Use Examples. Specific examples pro- The manager needs to spend time think- appraisal to the employee to read imme-
vide the backup to support an ing about and planning the items to diately before the meeting starts. This
employee’s performance rating, make cover in the discussion. Sufficient time gives the employee some private time to
the appraisal more objective and give and privacy should be allowed to con- digest the information before sitting
the employee clear examples of both duct the meeting and interruptions kept face-to-face with the manager.
positive and negative performance. to a minimum. To give the meeting and Remarks should be based strictly on
There should be a balance in the use of each other the attention deserved, the performance that is relevant to the job.
examples to support both positive and door should be closed, cell phones Anything else is inappropriate.
negative behaviors. turned off and the office phone not Being a good listener, trying not to get
Outline Future Goals. Although a answered unless absolutely necessary. defensive if the employee gets argumen-
performance appraisal is designed to Once the date and time are estab- tative or emotional and asking clarifying
questions will help defuse a potentially
emotional situation. Remain calm!
In discussing each of the evaluation
factors, the manager should point out
positive skills and accomplishments
whenever possible before addressing the
areas requiring improvement. Clearly
understanding how the ratings work and
effectively explaining those to the
employee helps create an objective envi-
ronment.
In closing the meeting, the manager
should summarize the evaluation, review
specific goals and standards of perfor-
mance and offer training opportunities
for the next review period. It is critical to
have the employee participate in the goal
setting and have a clear understanding of
the expected results and ramifications if
no improvement occurs.
After the Appraisal Meeting

The manager must make time to follow-
up on what has been agreed upon by
both parties. This demonstrates that
both the manager and the company are
serious about empowering employees
to improve and reach maximum poten-
tial. Both the manager and employee
should schedule a follow up meeting
within 30 days or even sooner to review
the employee’s progress.
Any required training should be set
up quickly to ensure the employee is
getting the appropriate training and
skills to get the job done.
If any interpersonal problems are dis-
covered involving other employees, the
manager should set up a meeting with
both employees to address these issues,
getting HR involved if necessary.
When employees continue to per-
form poorly, they must be made aware
that consequences may include further
disciplinary action up to and including
termination. When improvements in
performance are seen, the manager
needs to provide positive feedback and
make note in the memory file.
Additionally, as part of a supervisor’s
or manager’s growth, counseling and
coaching from the HR department, or
from a seasoned human resources advi-
sor, helps a manager become more
effective and ensure a positive outcome
in the performance review process.
When properly structured, the perfor-
mance review process is a valuable tool
for supervisors and managers to create a
positive work environment, foster career
growth and development and continue
to build a successful company.
Lori Burzminski operates South Bay HR,

providing outsourced Human Resources
services, expertise and recruiting for
companies that do not have an HR
department or those that wish to supple-
ment their current HR team with an out-
side advisor. Visit www.southbayhr.com
or call (310) 921-3805.
BY PAT BYRNES
D OES YOUR COMPANY FIND IT CHALLENGING to

recruit and retain quality personnel? Recruiting,
retaining and rewarding the right people are chal-
lenges employers face in every economic climate. Manage-
ment usually knows who the right people are. They are the
ness with your employees. This can be as simple as a quar-
terly letter from the president or a weekly e-mail from depart-
ment heads. The goal is to keep people apprised of the health
of the company and aware of vital issues. In addition to build-
ing trust among your workforce, it will also help employees
ones producing, and sometimes pushing, more than anyone make positive decisions that are supportive of your organiza-
else, and keeping the company on track. tion’s vision.
Here are five steps to developing a retention strategy that
works. The first place to start is with an honest evaluation of your Step 3: Assess Employee Priorities
organization. Once you know who the real keepers are, survey them to deter-
mine their priorities, both work- and life- related. Is your work-
Step 1: Define Your Values System force comprised of risk-takers? Do they have long-term goals or
What are your organization’s behavioral value standards and do they value short-term incentives? The answers to these ques-
vision? Where do you want your company to be in five years tions will help you structure effective reward programs that sat-
and 10 years from now? What behaviors do you tolerate? What isfy these employees’ needs.
shouldn’t you tolerate? Identifying and writing down these val-
ues, serves as the foundation for determining whom you hire, Step 4: Do Your Homework in Your Industry
whom you keep, and whom you reward. To maintain consis- Now that you have an idea of your internal value system and
tency in the organization, it’s important for these values to guide what is important to your employees, it’s essential to find out
your company. Your vision helps identify the employees who what compensation and benefit programs are being imple-
desire to move in the same direction as your business. mented throughout your industry, especially by your primary
competitors. This gives you a clearer view of what is commonly
Step 2: Establish Trust Within All Areas of the Business accepted in the industry and gives you a comparison of what’s
We all seek security in our jobs. However, most of us recog- important to your employees vs. the rest of the industry.
nize this is something we must create ourselves. Security
comes from trust, and trust comes from honesty and commu- Step 5: Create Compensation and Benefits Packages
nication. The bottom line is that employees want to know that Support Company Values and Employees Needs
their employer will be straightforward with them. Employees Your research should pinpoint the key areas that are important to
want to know when things are going well and when things your employees in terms of compensation and benefits pack-
aren’t. To help build trust within your organization, establish a ages. Map this information to your overall plans and budget so
process for sharing important information related to your busi- that your program adds value to employees.
Key Areas to Include in Your
Compensation and Benefits
program:
The foundation for any compensation
package is cash compensation. Most em-
ployees receive two forms of cash com-
pensation: Base salary and a periodic
bonus. Your competitive analysis should
help you determine ranges for cash com-
pensation. Taking into consideration
employee expectations, as well as organi-
zational goals and budgets, you can
determine a “target” quartile for base
compensation for your employees. Bonus
and incentive systems tend to be more
effective if they are based mostly on
objective criteria; although each system
normally incorporates some subjectivity
as well.
b. Retirement Plans
Many companies offer employees long-
term incentives, including qualified retire-
ment plans for all employees, and
non-qualified deferred compensation
plans for selected highly compensated
employees.
Qualified plans, such as 401(k), profit
sharing, and defined benefit pension
plans, offer tax advantages. Employer
contributions are tax-deductible, and
employee contributions are made on a
pre-tax basis. Participant accounts grow
on a tax-deferred basis and are exempt
from creditors. Qualified plans can be
structured to focus contributions on the
basis of performance, age, and/or tenure.
Non-qualified plans permit significantly
higher contributions, but do not enjoy the
same tax treatment as qualified plans.
These types of plans are generally targeted
towards senior executives and have earned
the nickname “Golden Handcuffs” due to
the large payoffs that accompany long-
term service. Like short-term cash incen-
tives, these programs are successful if they
contain the right mix of objective and sub-
jective criteria.
c. Health and Welfare Plans

Benefit plans may be critical to your
employees and these kinds of benefits
generally fall into two categories: Health
W ORKPLACE STRESS IS HIGH on the worry list of every
Human Resources manager. The negative impact of workplace
stress on business is tremendous in terms of profits lost. Stud-
ies show that employee illness, absenteeism and turnover, customer dissat-
isfaction, lost productivity and creativity, and sometimes even workplace
violence are very often the result of workplace stress (see figure 1).
To understand how to best utilize stress to advantage, it is helpful to
understand the energy exchanges at work within the enterprise. Stress
affects the energy level of the company and the individual.
What is Energy?
Energy is the “ability to do work.” This definition comes from the
physics definition of work as “force moving through a distance.” If
time is specified, energy becomes power, as in “horsepower.”
Workplace energy is usually different as it is based on a sharing
of the human life force. Think of it as the “electricity” we bring to
each moment by our connection with the immaterial cosmic life
forces. It is the essence of being alive! It is what gets sapped out
of us when we feel exhausted!
Every business enterprise, when abstracted from its unique
products, its distinctive services, its mission statement, its logo,
its workforce … all of its unique flavor and color, is an energy
converter. It converts the potential energy of a customer’s money
into the chemical and/or kinetic energy of products and services
for its customers. The company does this by employing workers in
another energy exchange. The employment contract is an agree-
ment for a continuing set of energy exchange transactions between
employee and employer.
Where does this threat come from? It
Employment Energy Exchange arises from a real or perceived imbalance
The employment contract involves energy exchange transactions in our energy transactions. For example, we
from both sides. Employees provide energy in manual labor, sense that a manager, colleague or customer
teamwork, intuition, social interaction with colleagues and cus- wants to suck out our energy and give little or nothing in return; we
tomers, mutual support, attitude, demeanor, creativity, mental skills think our workload grows to exceed our energy capacity; we believe
and laughter, among other areas. Employers exchange their energy management is unilaterally reducing its energy contribution, etc.
in money, health care, future security (retirement), work environ- Of itself, the survival response is a good thing for our preserva-
ment, praise, recognition, companionship, meaningful tasks, tion. However, when triggered in the workplace, the response inter-
respect, and more. feres with the desired energy exchange (except in response to fire
The ideal is for each party to see the employment arrangement as alarms and similar dangerous situations). Our blood pressure rises,
a beneficial and balanced energy exchange. In such an environ- adrenaline (epinephrine and norepinephrine) is massively dumped
ment, energy flows freely like conversion of potential energy into into our bloodstream, and resources are diverted from the digestive
kinetic energy in a well-oiled machine. When either side perceives and immune systems to our muscles. Sometimes workplace-unac-
an imbalance, dissatisfaction drains energy in the form of friction. ceptable flight or fight behavior erupts. Most often, that type of
Friction is energy waste. If not remedied, friction leads to eventual response is stifled, but our emotions and our energy transactions
breakdown (employee termination or resignation). with others are still affected. If these chemicals stay in our body too
long, they cause illness.
STRESS = Energy-Wasting Friction High workplace stress levels often lead HR to use outside consul-
What can a company do about this problem? The answer, just like for tants to identify stress-reducing policy changes or employee motiva-
an engine, is to minimize the effects of friction. Friction in the work- tional programs. Both of these approaches are like polishing the
place is called STRESS. Although a minimum of stress is necessary for parts of an engine that interface to one another — good first steps,
growth and strength, too much stress for any organism becomes but the real answer is the OIL!
debilitating. Stress is another name for the emotionally “triggered”
state known as the “fright-flight-fight” survival response. We are trig- Where’s the OIL?
gered when we become fearful; we sense that we are in danger. What is the OIL that will reduce friction in the employment trans-
actions and who has it? The oil is found
within each employee and is triggered by
each stressful event. The oil is adrenaline,
converted under direction of the mind! The
energy exchange transactions of the work-
place can be lubricated and optimized by
an alchemist-like conversion of adrenaline,
resulting in stellar performance.
Use Your MIND

The best solution to stress is to direct the
mind to use the adrenaline to boost posi-
tive performance. Although science is still
advancing in its understanding of the
mind, there is a useful distinction between
the conscious and sub-conscious mind.
The conscious, or rational, mind we uti-
lize in most of our waking hours. It is the
mind that we use for thinking, speaking,
reading, computing, evaluating, writing,
etc. The sub-conscious mind is responsi-
ble for intuition, habits, autonomic body
functions, total memory, self-image, emo-
tions, aspirations, dreams, and limiting
beliefs. Although our rational mind may
believe it is in control of everything about
us, our life is greatly affected by our sub-
conscious mind.
Since our sub-conscious mind runs our
bodily processes and chemical reactions, it
has the power to convert the adrenaline and
direct it toward a positive outcome. Direct-
ing the sub-conscious to do this is not diffi-
cult, but it does take technique and practice.
The conscious mind has developed a protec-
tive screen around our sub-conscious that fil-
ters incoming information and rejects ideas
that do not match our core beliefs. Because
of this filter, easy conversation with the sub-
conscious mind requires distraction of the
conscious mind from its filtering task. Since
deep relaxation alters the brainwave pattern
and distracts the conscious mind, it is the
preliminary step. Then conversation with the
sub-conscious consists of three parts: inten-
tion, imagination and affirmations.
Intention
We have up to 60,000 thoughts each day.
Without a specific focus, these are like a
light bulb sending energy in all directions.
As a society, we generally work with
intention-deficit-disorder. By contrast, a
thoughtfully considered intention for our
STRESS continued from page 23
actions focuses our mind and harnesses our
energy into a narrow laser-like beam.
Clarifying our intention is a requirement for
harnessing our adrenaline response.
Imagination
We can use our imagination to direct our
sub-conscious. This works because the sub-
conscious cannot tell any difference
between information fed to it from immedi-
ate sensory input (what is happening in real
time) versus what is coming from our imagi-
nation. Successful athletes know this and use
it before every competition. They imagine Affirmations “I love this customer.”
themselves performing flawlessly; they use Affirmations are short declarative sen- “I am healthy and well.”
all their senses to perceive themselves win- tences to confirm to our sub-conscious our “I am trustworthy.”
ning. Similarly, employees can imagine desired self-image. These affirmations must “I have fun working smart.”
themselves succeeding, dealing with a diffi- be in the present tense (as if they are true “I relish challenges.”
cult customer, completing a challenging NOW) and positively stated (no negative “I accomplish this challenging task per-
work assignment, or being energized and word allowed). The more descriptive and fectly.”
invigorated. Once an event is accepted by emotion-charged, the more effective they “Keeping my work area neat and safe
our sub-conscious mind as reality (coming are. Examples are: gives me pleasure.”
from senses or imagination), it directs all “I am calm and competent.” “Kind words are all I speak about
activity to achieve the envisioned outcome! “I can do this!” everyone.”
“I respect others.”
“I enjoy and have fun at my work.”
The sub-conscious accepts these state-
ments and puts them into effect.
Alchemist Process
The alchemists sought to convert lead into
gold. The workplace Alchemist Process
converts stress into success. It involves four
steps: 1) Take several deep breaths for a
total body relaxation. 2) Set a positive
intention as the desired outcome of the
process. 3) Imagine calm and complete
success in the next tasks. 4) Recite a few
key affirmations (aloud or internally). It is
quick, taking only 30 to 90 seconds. It is
the true alchemist process because it trans-
forms adrenaline into the focused positive
energy to perform the triggering transaction
perfectly. It is the OIL that lubricates the
business energy exchanges! The employee
using this process both performs better on
the job and goes home happier because all
adrenaline is consumed in well-performed
tasks. A significant secondary benefit is that
the employee who learns this technique
will also use it for converting stresses out-
side the workplace, resulting in fewer off-
the-job problems.
A Healthy Workforce is Worth Your Investment
BY BOB VOLKEL
T HE SOUTH BAY IS WIDELY KNOWN for its healthy

lifestyle. Walk down the Strand on any given day and
it’s obvious how we got that reputation — perfectly
tanned and toned people participating in a variety of activities
from biking and blading to surfing and swimming. But take a
What is a corporate wellness program?
A corporate wellness program is an integrated strategy devel-
oped to improve the health behaviors of employees. Relying
on initiatives designed to drive and motivate employees, cor-
porate wellness programs are a main staple for Fortune 1,000
moment to look around your office. Is your workforce companies because of the economic value they deliver in a
“healthy?” multitude of areas.
We all know the importance of leading a healthy lifestyle;
one based on exercising regularly, eating a well-balanced diet “For every $1 invested, employers can expect a
and living in a tobacco-free environment. Unfortunately, return of up to $10 through lower medical claims,
statistics show that the majority of Americans do not lead reduced absenteeism, improved productivity and
healthy lifestyles, and more importantly, do not know the sim- other factors, according to a survey published in
ple steps to become healthier individuals. the American Journal of Health Promotions.”
“Current smokers missed more days of work and experi- Small and mid-sized employers can yield similar returns and
enced more unproductive time at work overall across create a competitive employment advantage using scalable
11 health conditions compared with former smokers strategies. There are seven key components to engaging
and non-smokers.” — Journal of Occupational and employees in a corporate wellness program.
Environmental Medicine, 2006
Executive Support — Any corporate wellness program must
As an employer, you can be an active participant in helping be embraced by company executives.
your employees adopt more healthy lifestyles. Imagine the Design — A properly designed plan encourages, equitably
value of a program that increases productivity, reduces absen- measures, and rewards all employees regardless of where they
teeism, lowers workers’ compensation costs, lowers health- currently fall in the health spectrum.
care costs and reduces employee turnover. It may surprise you Inspiration — Employees need to understand the motivation
that a corporate wellness program can help you achieve all behind the employer’s investment into the corporate wellness
these goals. In addition, it can bring employees together, cre- program and the rewards for employees if they are successful.
ating a culture of belonging and achievement — a bond that Education — While access to health information is readily
cannot be easily replicated by contending employers. continued on page 26
Top 5 Myths of a Corporate Wellness Program

#1 Why bother? National Health Care will be implemented health occurs in the first 20% of their progress! In a good
shortly. program, employers see impressive productivity gains/
Should a national healthcare program be enacted, it will not absenteeism results (47.5% drop in absenteeism over a six-year
affect productivity, absenteeism, team building or employee period for participants in the DuPont wellness program).
engagement — all of which are positively affected by the
implementation of a Corporate Wellness Program. #4 We already have a disease management component in
our health insurance program.
#2 Our company is too small. A disease management program is not the same as a
Small companies are generally at a disadvantage as big wellness program. A wellness program is a proactive and
companies usually offer higher salaries, better benefits and preventive initiative to improve the health of all employees.
more opportunities for promotion. However, programs like A disease management program is a defensive program that
this can actually even out the playing field. Corporate manages chronic claimants who are already ill.
Wellness Programs usually have a huge effect on employee
retention as they foster employees bonding with other #5 I don’t want to spend any money on a corporate
employees, thereby helping to retain key workers. wellness program.
The dynamic of individual or team achievement is
#3 It takes too long to see ROI. oftentimes more than the tangible dollar value of the rewards
While it can take two or three years to see a meaningful return that drive results. Done right, bragging rights and a movie
on healthcare expenses, 80% of the benefits to an employee’s ticket or Starbucks® gift card can go a long way.
HEALTHY WORKFORCE continued from page 25 will create partnerships that allow workers to retain a degree
available, employers may want to increase motivation to use of anonymity while still providing personalized services.
available resources by bringing in health care coaches who Accountability — Employee accountability and reinforcement
help employees build a customized exercise and nutrition plan. with milestones keep progress on track and solidify the results
Partnership — It is most effective to create an environment of the new healthy behaviors.
that allows employees to improve their health without the risk Rewards — The most effective corporate wellness programs
of being judged and embarrassed. A good wellness program include rewards to motivate healthy behaviors. Rewards vary
greatly and need not be extensive or expensive to generate
results. Conversely, it is not uncommon to see disincentives
Wellness Facts built into a corporate wellness program for those who choose
“Smokers take an average of almost 11 days more of sick not to participate.
leave every year than their non-smoking colleagues.” —
Tobacco Control Journal What type of investment will a corporate wellness
program require?
“Chronic diseases such as heart disease, stroke, cancer and No Cost. Moderate Cost. High Cost. The chart below shows
diabetes are among the most prevalent, costly and pre-
sample solutions at various cost levels. The fact of the matter is
ventable of all health problems and account for more than
75% of the nation’s medical care costs.” — Centers for Dis- that corporate wellness programs are fully-customizable to your
ease Control budget, corporate culture, history and values. Furthermore, it
enables you to start small and expand the program over time.
“55% of adults in California are overweight or obese.” — Those that have and maintain a corporate wellness pro-
California Health Interview Survey, 2006 gram will tell you that it is simply the right thing to do. The
comfort of a do-nothing strategy is far outweighed by the eco-
“40% of all cancers are caused by the typical American
nomic benefits and cultural advantages of a well-built corpo-
diet, lack of exercise and obesity.” — Harvard Report on
Cancer Prevention, 1996 rate wellness program.
“78% of Americans do not meet basic activity level recom- To learn more about developing a new, or enhancing an exist-
mendations.” — Wellness International Network Ltd., 2006 ing, wellness program, please feel free to contact Bob Volkel at
ABD Insurance & Financial Services (rgv@abdi.com) or
310/543-9995). Mr. Volkel is Executive Vice President,
“A Duke University study comparing the costs of the heavi-
Employee Benefits, for ABD Insurance & Financial Services, a
est to those of recommended weight found the number of Wells Fargo Company located in Torrance. Widely recognized
lost workdays was almost 13 times higher, medical claims for its collaborative, client-focused culture and unparalleled
costs were 7 times higher, and indemnity claims cost were customer support, ABD provides innovative employee benefits
11 times higher.” — Archives of Internal Medicine, 2007 consulting and risk management solutions to its diverse,
nationwide client partners.
Understand the Distinction Between a Broker and
an Advisor
A 401(k) plan broker represents prepackaged offerings from an
insurance company or mutual fund family. The investment selec-
tions are typically limited and many times there is no assigned
responsibility for determining the appropriateness of the invest-
ment choices on a regular basis. Brokers are paid commissions,
and sometimes additional fees, that are taken from the partici-
pant’s account and are not required to be explicitly disclosed.
After the product is put in place and everyone goes back to what
they were doing (i.e. running a business), it is often implicitly
assumed that things will run on “automatic pilot.”
By contrast, an advisor acts as a consultant to the plan
sponsor, facilitating a process that considers the consultant to
be a co-fiduciary on an ongoing basis. This presents a greater
Fiduciary Responsibility of opportunity (but does not guarantee it) for the plan sponsor to
receive objective information and advice, independent of any
Managing My Company’s 401(k) Plan obligation or incentive toward a particular investment offer-
ing. Fees may be a flat dollar amount or a percentage tied to
Do I Need to Hire an Independent assets. They can be paid directly by the plan sponsor or
charged to the participants, or a combination.
Investment Advisor? It should not be assumed that having an investment advisor
is automatically a “better” way to go. Whether you use a broker
or an independent advisor, plan sponsors must not forget that
BY KATHLEEN M. BRANCONIER, AIF ®
they need to manage the process and hold all other parties
(ACCREDITED INVESTMENT FIDUCIARY TM) accountable to deliver on the services that were promised. Like-
wise, it is equally imperative to recognize and negotiate the
compensation being paid. This does not have to be compli-
T HE RECENT SIGNING OF THE LARGEST REFORM of

America’s pension laws in 30 years has caused many
plan sponsors to be rightly concerned about their role
as a fiduciary of their company’s 401(k) plan. The Pension Pro-
tection Act of 2006 is causing the world of retirement plans to
cated or overwhelming — plan sponsors can become equipped
to determine an advisor’s qualifications with confidence.
Evaluate and Understand Plan Expenses

The Department of Labor (DOL) explains that fiduciaries are
drastically change due to focus on fee disclosure, participant required to know and evaluate the fees paid for services provided
education and fiduciary responsibility. It is raising awareness of to their plan. “Plan fiduciaries must assure that the compensation
situations in which employers have little or no idea that their paid directly or indirectly by the plan …is reasonable, taking into
company (and sometimes personal) liability is increasingly account the…services provided (DOL Advisory Opinion 97-
exposed. Now is the time for all employers to revisit how their 15A).” A cost analysis of your plan that includes a comparison of
401(k) plan is being managed. The good news is that employ- other providers would be needed to properly evaluate and make
ers can meet the government’s requirements while reducing an informed decision on the reasonableness of the plan costs.
costs and increasing employee satisfaction. Plan expenses include advisory fees, investment management
fees, administration, participant education, investment custody
AS A PLAN SPONSOR, WHAT DO I NEED TO DO and recordkeeping. In most cases these can be negotiated sepa-
TO MANAGE MY FIDUCIARY RISK? rately or as a bundle. In all cases the fees are knowable when the
Plan fiduciaries (which include all decision makers and fiduciary makes it a point to demand the information.
liaisons for a 401(k) plan) are held to extremely high standards
of care. ERISA (Employee Retirement Income Security Act) Employ a Defined Investment Management Process
requires fiduciaries of retirement plans to administer and man- A sound investment management process is also necessary for a
age their plans prudently and in the best interest of the plan’s fiduciary to prudently oversee the 401(k) plan and stay out of
participants and beneficiaries. There is only one way to man- trouble. A process that includes the use of a formal investment
age this risk and that is to engage in a prudent, well-docu- policy statement, careful evaluation and selection of invest-
mented process for gathering information, making decisions ments and ongoing monitoring of investment performance is
and communicating regularly and effectively. In essence, essential in controlling fiduciary risk. The key to this process is
employers must “prove” that they are doing the right things for the documentation of the evaluation and basis for the deci-
their people. continued on page 28
FIDUCIARY RESPONSIBILITY
continued from page 27
sions made. It is very common (but danger-
ous and unacceptable) for employers to
look the other way simply because this may
be intimidating and distractive. Yet with
competent advice it need not be so. And
there are certain “default” strategies that
include layers of fiduciary protection identi-
fied by the Pension Protection Act of 2006.
Communicate With and Educate

Plan Participants
Government wants employers to help issue
a wake up call — According to the 16th
annual Retirement Confidence Survey pub-
lished by the Employee Benefit Research
Institute in April 2006, many American
workers aren’t ready to undertake the task
of financial planning for their own retire-
ment and face the prospect of having to work much longer SHOULD I HIRE
than they expect. Government pressure is mounting, and will AN INDEPENDENT INVESTMENT ADVISOR?
continue to increase, on employers to encourage and make it Recent lawsuits against plan sponsors have prompted many
easier for employees to take responsibility for themselves. companies to rely on the services of an independent consul-
Higher participation rates provide the owners and key tant who can help fulfill their very important role as a plan
executives the opportunity to increase the tax favored contri- fiduciary. Due to changes in legislation and the high level of
butions to their own accounts — The Pension Protection Act prudence required by plan sponsors along with their personal
of 2006 promotes automatic enrollment for 401(k) plans, liability, it is easy to understand how the services of an inde-
which is being embraced by many large companies, setting pendent consultant can be of critical value.
the trend for medium and small companies to follow. Hewitt
Associates, a global human resources consulting firm, believes Typical consulting services include:
that over half of the largest plans will be automatically Helping establish an investment committee as appropriate.
enrolling their employees by the end of 2007. On average, Identifying the costs of the current plan and their impact on
automatic enrollment produces participation rates of about results.
90%, which is about 33% higher than plans who do not use Evaluating current plans in light of the employer’s circum-
automatic enrollment. Enhanced employee participation cre- stances and objectives.
ates more “room” in the testing formulas for highly compen- Drafting an investment policy statement (very important!).
sated employees to add to their own accounts. Providing a process for the selection and monitoring of a
Investment education meetings should be offered to quality menu of investment options.
employees at least once a year — Participants need help with Offering a program for participant education.
how to choose the proper investment allocation that is appro- Regular monitoring against stated objectives.
priate for their specific investment style and risk tolerance. Demonstrating evidence of fiduciary accountability.
Retirement planning questionnaires and asset allocation mod-
els can be used to educate participants on appropriate alloca- Some investment advisors offer education and assistance with
tion of their investments and to help them determine if they are fiduciary responsibilities; certain advisors will even accept
saving enough for retirement. With regular education opportu- their co-fiduciary role in writing.
nities, they will become more comfortable and appreciative of An independent consultant can also help with evaluating
their employer. the reasonableness of the plan costs and should be knowl-
Fiduciary responsibility for participant investing is also edgeable about how to uncover all fees including undis-
increasing — Some employees have no objection to saving, closed revenue sharing arrangements. Revenue sharing, or
but still feel helpless when it comes to investment decisions. “soft cost reimbursements,” is a component of the mutual
The use of a QDIA (Qualified Default Investment Alternative) fund expense (12b-1 fees, subtransfer agent fees and share-
provides fiduciary relief to plan sponsors who meet certain holder servicing fees) that is paid by the mutual fund com-
conditions and use target maturity or lifestyle funds as a default pany to a broker or other provider of 401(k) services for
investment for “paralyzed” employees. offering their mutual fund. The complexity of proper fee dis-
closure can be overwhelming for most EMPLOYEE RETENTION STRATEGIES continued from page 21
plan sponsors. The use of an advisor and welfare plans and work/life programs.
who has knowledge of the retirement Health plans include medical, dental, and vision-care insurance. Welfare plans
plan industry can assist in uncovering include disability, long-term care and life insurance programs. One way to reduce
fees and benchmarking plan costs, employee costs associated with these programs is to implement a ‘cafeteria’ plan which
investments and service providers. enables participants to pay for many of these costs with pre-tax dollars.
Retirement plan investment advisors Work/life programs include ways to foster flexibility, personal and professional
should disclose their compensation growth. Examples of work/life programs include telecommuting, flexible scheduling,
schedule. Payments made directly to health and fitness programs and subsidies for personal and professional develop-
advisors from mutual funds could cre- ment courses.
ate conflicts of interest, and may cause Developing strategy around the right culture, the right processes and the right
the plan to pay more than it should in rewards system can lead to the retention of the right employees. By rewarding the
consulting fees. To eliminate conflicts desired behaviors that help grow a business, you can habituate those behaviors
of interest and to ensure that your and not only retain existing employees but also help you make better hiring deci-
retirement plan consultant is working sions.
for you and in the best interest of the
plan participants, it is recommended Pat Byrnes is founder and president of Actuarial Consultants, Inc. in Torrance and is
that your investment advisor be paid recognized as one of the finest technicians in the pension plan arena today. He is a
past president of the American Society of Pension Professionals & Actuaries (ASPPA).
independent of the investments offered He is also the founding director of the College of Pension Actuaries (COPA). In
in the plan. November 2005, Pat was awarded The Harry T. Eidson Founders Award which recog-
The world of retirement plans con- nizes exceptional accomplishments and contributions to organizations or the pension
tinues to evolve, making it increasingly industry. Recipients of this award are chosen for their contribution over time and
difficult to monitor your 401(k) plan have delivered “above and beyond reasonable expectations.” This award is ASPPA’s
most prestigious honor. He is also co-chair of the Los Angeles Benefits Conference,
effectively. Given the heightened sensi- which is held annually and is sponsored by ASPA, the IRS and more than 20 employee
tivity to a plan sponsor’s fiduciary benefits-oriented organizations. Pat can be reached at (310) 212-2600 or for more
responsibilities, it’s never been more information go to www.acibenefits.com.
important to partner with a retirement
plan investment advisor.
Securities Kathleen Branconier is Manag-

ing Director of Retirement Plans and a
retirement plan consultant of Torrance,
Calif. based M Advisory Group. You may
reach her at 310-530-5525 or kbran-
conier@madvisory.com.
Securities and investment advisory ser-

vices offered through M Holdings Securi-
ties, Inc., a registered Broker/Dealer and
Investment Advisor, Member FINRA/SIPC.
M Advisory Group is independently
owned and operated.
Community Announcements
Lancaster Wins LAEDC Business-Friendly Award
Northrop Grumman, Jack Kyser Also Honored at Annual Eddy Event
BY BRIAN SIMON
T HE 10TH FASTEST GROWING

CITY in the country, Lancaster,
came away with 2007 honors for
Most Business Friendly City in Los Ange-
les County at the Los Angeles County Eco-
a major presence at the event despite
LAEDC regulations prohibiting past win-
ners from competing for three years.
“Lancaster deserves the Eddy — no
question,” said El Segundo Mayor Kelly
and economic development,” he said.
“Lancaster gets the message and we hope
to partner with that great community to
advance the LAEDC’s mission to create
more quality jobs countywide.”
nomic Development Corporation’s 12th McDowell, who posed for photos with In determining the Eddy winner, a blue
annual Eddy awards dinner at the Beverly Lancaster Mayor Henry Hearns. “From its ribbon panel of judges consisting of eco-
Hilton Hotel on November 6. More than innovative Mayor’s Roundtables to its fast- nomic experts from both the LAEDC and
700 business, government and education tracked permitting process, Lancaster has prominent outside agencies scored con-
leaders attended the gala event. created a thriving pro-business environ- testants based on the following criteria:
Situated at the north tip of the county, ment. And, like our city, it does so and • Demonstrated commitment to eco-
Lancaster outlasted five other finalists — still maintains its hometown feel.” nomic excellence as a priority
Burbank, Cerritos, Long Beach, Palmdale McDowell added that being business- • Excellence in programs and ser-
and Santa Clarita — to win the Eddy, friendly is not just fiscally prudent on a vices designed to facilitate business
which recognizes municipalities for their local level, but is also a regional responsi- entry, expansion and retention
commitment to business attraction and bility. “We feel that it is our imperative as • Economic development activity
retention. a city to be a leader and inspire other over the past three years
Last year’s inaugural winner of the cities in the region to up the ante in terms • Competitive business tax rates and
Business-Friendly award, El Segundo, had of their commitment to business growth fee structures
• Availability of economic incentives
• Effective communication with and
about business clients
The LAEDC also recognized a global
corporation with a major South Bay pres-
ence for its Business Leadership Eddy.
Northrop Grumman, a $30 billion com-
pany with 125,000 employees (30,000 of
those in Southern California), was recog-
nized both for its significant contribution
to the job market as well as its commit-
ment to educational, human service and
cultural programs. Headquartered in Cen-
tury City, Northrop Grumman’s Integrated
Systems and Space Technology divisions
are based in El Segundo and Redondo
Beach respectively.
The third Eddy of the evening went to
one of the LAEDC’s own — Chief
Economist Jack Kyser, who is commonly
referred to as the “Godfather” of the Los
Angeles economy. The chief interpreter of
the regional economy for the past 25 years,
Kyser’s annual Economic Forecast is rated
tops by the Wall Street Journal. His most
recent report, released at the end of Octo-
ber, concluded that that the region is not
heading into recession.
Calendar of Events Save the Date!
Redondo Beach Chamber of Manhattan Beach Every Monday:
Commerce & Visitors Bureau Chamber of Commerce South Bay Co-ed, 12:15 P.M., Billy’s Café,
For more information on events listed, please For more information on events listed, please Torrance.
call 310-376-6911 or go to call 310-545-5315 or go to
www.RedondoChamber.org. www.mb-chamber.com. Every Tuesday:
Torrance Women, 7:15 A.M., Mimi’s Café,
Business After Hours Mixer Upcoming Mixers: 25343 Crenshaw Blvd., Torrance.
Wednesday, January 16, 2008, Admission: No charge for members, Riviera Village Co-ed, 12:15 P.M.
5:30–7:30 P.M., Joe’s Crab Shack, $10.00 for guests Chicago for Ribs,
230 Portofino Way, Redondo Beach. 6300 S. Pacific Coast Hwy., Torrance.
Admission: $5.00 chamber members, Holiday Mixer: Wednesday, December 12,
$10.00 guests. 5:30–7:30:00 P.M., Ayres Hotel, Every Wednesday:
14400 Hindry Ave., Hawthorne. Del Amo Co-ed, 7:15 A.M., Mimi’s Café,
Palos Verdes Peninsula Chamber of 25343 Crenshaw Blvd., Torrance.
Commerce Wednesday, January, 16, 2008,
For more information on events listed, please 6:00–7:30 P.M., Kinecta Federal Credit Union, Every Thursday
call 310-377-8111 or go to 1440 Rosecrans Blvd., Pacific Coast Co-ed, 7:15 A.M.,
www.palosverdeschamber.com. Lisa’s Bon Appetít,
February 20, 2008, Mattel Toy Store, 3511 Pacific Coast Hwy. # G, Torrance.
Regional Holiday Mixer 333 Continental Blvd., El Segundo
Thursday, December 13, 5:30–7:30 P.M., WRS South Bay Exclusive Chapter,
Los Verdes Golf Club, 7000 W. Los Verdes El Segundo Chamber of Worthwhile Referral Sources. 11:30
Drive, Rancho Palos Verdes Commerce A.M.–1:30 P.M. at H.T. Grill, 1701 South
(Hawthorne Blvd. and Los Verdes Dr.). For more information on events listed, Catalina Ave., Redondo Beach. Only one
Hosted by the Palos Verdes Peninsula please call 310-322-1220 or go to profession per category. For 30 years, WRS
Chamber of Commerce. Build business www.elsegundochamber.org. has hosted networking events utilizing
referrals with members from South Bay highly effective methods. RSVP required.
chambers of commerce, including Business Mixer No walk-ins. Non-Members: $39.
Manhattan Beach, Torrance, Redondo Beach, Thursday, December 6: 5:30–7:30 P.M., For Information or to RSVP,
Hermosa Beach, Lomita, San Pedro, Palos Citizens Business Bank, 275 Main St., El please call 818-995-6646.
Verdes Peninsula and more! Includes hors Segundo.
d’oeuvres, beer, wine, and soft drinks. Music BNI — Business Networking International,
by Matt Beaumont of Celebrations Mobile Ongoing Events meets Tuesdays mornings at 21143
DJ. Optional: Bring an unwrapped toy for Ali Lassen Leads Club Chapters Hawthorne Blvd, #323 in Torrance.
Toys for Tots. $5 Admission includes Drink The purpose of Ali Lassen’s Leads Club is to assist For information call OCBNI
Ticket. RSVP is a must by December 10. Call you in getting good business referrals that will at 888-476-5350, ext. 1.
310-377-8111 or email expand your business success. Each business
kristin@palosverdeschamber.com category gets an exclusive in each chapter.
STRESS continued from page 24

El Segundo Chamber Hires Former The well-oiled company
Imagine your business enterprise where the
Board President as New Exec Alchemist Process is used by every member of
your workforce. The energy from each
Upon the September departure of Karen Carr, the El Segundo Chamber of Com- employee radiates to everyone they encounter.
merce Board of Directors quickly filled the organization’s Executive Director slot There is an intangible magnetic force attract-
with the hiring of Chamber veteran Marsha Hansen last month. An Indiana native ing customers to your products and services.
and Purdue University graduate, Hansen first became involved with the El The enterprise has become the finely-tuned,
well-oiled, super-charged profit machine that
Segundo Chamber in 1992 while working at the Doubletree Hotel in that com-
it is meant to be. This is how you use STRESS
munity. She served as a Chamber Board member from 1994 to 1999 and was
for Strategic Advantage! Make it so!
President in 1996-97. During her tenure in El Segundo, Hansen also chaired or
co-chaired on numerous committees and was recognized for her volunteer contri- Duncan Tooley is the CEO and founder of
butions. Tooley Transformation Training of Palos
Verdes. He provides transformational busi-
Since 1999, Hansen has worked in the hotel industry in Orange County and ness coaching for executives and
also took time off to raise four children. “I am eager to meet with the business and entrepreneurs. His transformational pro-
community members to learn how the Chamber can best meet their diverse needs grams train the enterprise workforce to use
the mind to work smarter. More information
and I look forward to implementing a menu of services and programs that will can be found at www.TooleyTraining.com.
exceed their expectations,” she said. He can be contacted at 310-832-0830 or
duncan@TooleyTraining.com
BY TOM FUSZARD
Q: How would you describe the most sought-after
candidate?
Halyard: Today, it’s a man or woman with a CPA
certificate and five or six years experience — an
audit manager with a dynamic, broad understand-
ing of the latest trends in accounting and taxa-
tion. He or she reads industry publications and
has an innate sense of technology. Communica-
tions skills are important, too; he or she is easily
able to explain accounting principles and
express a confident professional attitude.
Q: Why does someone leave one accounting

firm for another? Is it mostly a question of money?
Halyard: No, the money is actually down the line
in importance. As in many other businesses, a
prime reason is a lack of upward mobility — just not
enough room for promotion in one’s firm. Another is
friction with one’s immediate supervisor. Still another is
an office atmosphere that may be politically charged,
unfriendly or downright hostile. Very few professionals are com-
A SHORTAGE OF CERTIFIED PUBLIC ACCOUNTANTS

has created a candidates’ market for CPAs on the move.
The U.S. Department of Labor’s Bureau of Labor Statis-
tics reports that employment of accountants and auditors is
expected to grow faster than the average for all occupations
fortable in a firm where there is a lot of noise, commotion or
bickering, or where they hear associates berated publicly.
Then there is the matter of work/life balance, which can
become a reason for seeking a job change. Some firms still
aren’t flexible about a professional’s schedule or worksite. A
through the year 2014. James Halyard, an experienced recruiter, remarkable number of accounting professionals in Southern Cal-
was interviewed on this subject recently. He is Recruiting Man- ifornia are eager to trade two hours of daily commuting time for
ager of Strategic Sourcing, LLC, a Torrance firm that specializes in the chance to live and work in the same zip code.
securing accounting and auditing professionals for Southern Cali-
fornia accounting firms and their clients. Q: How do accounting firms deal with that?
Halyard: In several ways. Some offer flex hours that help to deal
Q: What factors are responsible for the shortage of accountants? with rush hour commuting. In many others you’ll find a dis-
Jim Halyard: There are several: Growth in the number of busi- tributed workforce, with professionals working from home. This
nesses, the increasing complexity of financial laws and regula- opens up a huge pool of candidates, including those with young
tions, and greater need for security and governance of finances children at home, or those who are physically challenged, or
are a few of them. The Sarbanes-Oxley Act, which established a some who can’t put together a carpool — really, anyone who
set of corporate governance guidelines five years ago, requires wants to work in accounting but is unable or unwilling to com-
more disclosure and careful vigilance in the way financial mute. Some firms meet this need by opening satellite offices to
records are kept. That raised demand for accounting talents and bring together small groups of associates.
added some upward pressure on salaries.
In addition, the dot-com boom of the ‘90s and the growth of Q: How do you find the people who are interested in changing
high-tech businesses drew away many bright people who pre- firms?
ferred fast-paced jobs there to the long hours and career Halyard: We do a lot of networking. We never stop adding names
burnouts that were rumored about the accounting profession. and resumes of potential candidates who are referred or recom-
mended to us. We find that our present clients and the people
Q: What effect has the shortage had on salaries? we’ve placed are our best sources for these. I also like using MyS-
Halyard: They are way up, as you might expect. Nationally, the pace.com and LinkedIn.com, which are great networking
increase was 30-plus percent over the past three years, and in resources. Service clubs and volunteer organizations provide some
Southern California we estimate the increase at 45 to 50 percent networking opportunities, but they are less popular than they used
over five years. to be, especially with the younger people in the profession.
Q: That’s a candidates’ market. Q: Are retirees a recruiting market?

Halyard: No question about it. Good candidates are becoming Halyard: Absolutely. There are thousands of highly trained and well
much harder to find. experienced accountants out there who would like to work a cou-
ple of days a week, or pitch in at tax time ing the benefits package… awarding more Jim Halyard and Strategic Sourcing, LLC,
and other times of peak workload. They are responsibility to those who can handle it. can be reached at: Strategic Sourcing, LLC
particularly good candidates for working at I’d take a good look at the whole work/life 3424 Carson Street, Suite 600
home or in small satellite offices. area, and try to provide flexible hours and Torrance, CA 90503
some easing of the commuting burden. 310-542-1841
Q: What is the role of the recruiter, other And finally, I’d be very watchful for the jhalyard@socalsourcing.com
than finding the professionals who are development of tensions or frictions website: socalsourcing.com
willing to move? between staff members, separating those
Halyard: We’re responsible for the search, who could find it difficult to work with Tom Fuszard is a communications con-
the background review and the testing. one another. Harmony is a very valuable sultant and writer in Palos Verdes and
commodity in a professional firm. Chico, California.
Q: You actually test experienced accoun-
tants?
Halyard: Oh, yes. Employers need to be
assured that the skill sets they are looking
for are exactly those being offered. The
background checks and testing help to
establish the level of competency and the
level and variety of experience in various
accounting areas. Candidates don’t
object when they realize that the process
is the same for everyone.
We have one other serious responsi-
bility: It’s finding a sort of personality
match between the candidate and the
employer. Each accounting firm has its
own style — its own DNA. Some
accountants are looking for fast-paced,
high-energy situations where they believe
the promotion opportunities are greatest.
Others prefer a more steady, measured
work pace. Some others may be uninter-
ested in promotion, and are seeking a
firm where they can serve the last 10
years of their careers.
We study client firms carefully and try
to place the hard-chargers in firms that
welcome this attitude. Those who are less
interested in fast-tracking can be recruited
for a different kind of firm. Both the can-
didate and the employer have a lot at
stake in this match-up, and it’s essential
that we get it right. It is a responsibility
that we take very seriously.
Q: What is the best advice you can offer

employers about professional staffing?
Halyard: This may be obvious, but the
best way to keep your firm fully staffed is
to take care of the people you already
have. Make sure you’re providing for your
present staff the kind of situation you’re
prepared to offer new candidates.
That means maintaining a high level of
technological support… carefully manag-
BY KARL SCHMIDT, ATTORNEY AT LAW
T HE DEPARTMENT OF HOMELAND
SECURITY hopes to implement
tougher regulations for employers
hiring undocumented workers that could
leave the latter exposed to legal action that
“constructive knowledge.” This would
make employers responsible for know-
ingly hiring undocumented workers in sit-
uations where they otherwise could
profess ignorance.
“No-Match” Letters and
“Constructive Knowledge”
For nearly a decade, the Social Security
Administration has been sending out letters
to alert employers when it discovers that
was easily avoided in the past. The issue According to Answers.com, “construc- one or more employee names do not
revolves around fake Social Security num- tive knowledge is notice of a fact that a match with the Social Security numbers
bers undocumented workers routinely give person is presumed by law to have, regard- given. Currently, many employees simply
employers and the DHS’s attempt to elimi- less of whether he or she actually does, leave when they learned their employer
nate legal loopholes that insulate the since such knowledge is obtainable by the received a “no-match” letter. This often
employers who hire them. exercise of reasonable care.” The DHS is causes an inconvenient mass exodus of
The loophole that currently protects pressing to have this standard applied to employees, but any legal problems for the
employers from hefty fines is their current employers suspected of hiring undocu- employer often leave as well.
exemption from a legal standard called mented workers. Others, however, routinely come back
with new Social Security numbers and
sometimes even new names. Under cur-
rent regulations, immigration attorneys typ-
ically advise employers to go ahead and
hire a returning employee as long as the
documentation appears to be valid. Until
recently, there was no fear the employer
could be held to have “constructive knowl-
edge” that it was employing a person who
did not have proper authority to work in
this country.
The proposed Department of Home-
land Security regulations provide examples
of what may be deemed “constructive
knowledge” that an employee is an unau-
thorized alien, and “safe harbor” proce-
dures for employers to follow in order to
avoid “constructive knowledge” allegations
after receiving a “no-match” letter.
If proposed regulations take effect,
employers will be required to take affirma-
tive steps to communicate with the agency
that issued the correspondence. Currently,
these issues can be resolved solely
between the employer and employee.
The legislation proposes new time limits
for employer compliance with the proto-
cols, allowing 30 days for initial steps and
up to 90 days to complete additional steps,
which may be required. Plus, there are an
additional three days for completion of Department of Homeland Security and the Social Security Administration from imple-
new I-9 forms. menting the Final Rule entitled “Safe-Harbor Procedures for Employers Who Receive a
If the new law passes, employers will No-Match Letter.” Then the government withdrew the regulations in late November 2007
have to follow uniform procedures for each in order to revise and reissue them in spring 2008. Thus, employers need to follow the
employee who becomes the subject of an status of this case in order to determine if and when the regulations are implemented.
SSA “no-match” or DHS invalid document
notice, in order to avoid exposure to dis- Karl Schmidt has practiced labor and employment law for over 30 years and currently is the
crimination claims from the employee. Chairman of the Labor & Employment Department of the Los Angeles law firm of Parker,
Under the proposed regulations, employ- Milliken. While representing a wide variety of public and private clients, Mr. Schmidt is also
ees who typically left and didn’t return when General Counsel to the Torrance Area Chamber of Commerce. He is listed among L.A.
Magazine’s annual “Super Lawyers” and is included in the 2007 edition of Best Lawyers in
notified of their “no-match” status will now
America. He can be reached at (213) 683-6518 and kschmidt@pmcos.com.
have 90 days in which to resolve the discrep-
ancy. This may defer the mass departure
some employers have experienced, as may
the information that the employer can accept
new identity and authorization documents in
a replacement Form I-9 process. But it also
will require the employer to follow complex
bureaucratic procedures previously avoided.
Additionally, the “constructive knowledge”
standard is ambiguous and leaves many
questions to be answered.
For example, employers need to be
aware that other circumstances, which
confer actual or constructive knowledge of
invalid documentation, may be taken into
account by immigration enforcement
authorities. If, for example, 30 out of 33
“no-match” letter subjects produce new
documentation for the replacement Form I-
9 process, will the sheer numbers and
statistics of the matter constitute construc-
tive knowledge?
Employers faced with this or any other
kind of suspicious circumstances may
want to take into account the exposures
that can result. Non-compliance can result
in fines in the $250–$5,000 range per
worker (often $500 to $600 in a first
offense) but with exposure much more on
the high end of the scale if Immigration
Customs and Enforcement examiners feel
the circumstances warrant a “custom and
practice” allegation.
Thus, employers must be much more
cautious in handling “no-match” letters
which they receive from the IRS.
Judicial Challenge to Regulations

On October 10, 2007, the U.S. District
Court for the Northern District of Califor-
nia issued a preliminary injunction in AFL-
CIO, et al. v. Chertoff, et al. (N.D. Cal.
Case No. 07-CV-4472 CRB). The prelimi-
nary injunction enjoins and restrains the
Health Care employees without offering competitive
health benefits. However, small-business
Here are a few tips to for small business
owners that may help address some of their
Solutions for Small owners also acknowledged that providing
benefits presented certain financial issues as
cost concerns in providing quality benefits
that will help attract and retain employees:
Business Owners well. The survey found: Consider making voluntary benefits
Nearly half reported that increasing available to employees. Because many
BY DAVID HOLPER health care costs have negatively impacted small businesses can’t afford a rich benefits
their employees’ wages. package, voluntary benefits can be a way
Six in 10 respondents agreed that it is for growing companies to enhance their
H
EALTH CARE BENEFITS have important to financially help employees health insurance offerings and provide addi-
become more expensive in recent with health challenges and medical emer- tional coverage for employees without any
years, which put them out of reach gencies. direct cost to their business.
for many Americans. Of the more than 45 Forty-two percent of those surveyed A Health Savings Account (HSA) is
million Americans who are uninsured, agreed that annual increases in health bene- another way for small companies to control
nearly 60 percent are employed by small fits have made them decrease their offerings. their health care costs. With an HSA, health
businesses. Small business owners wear many hats, care options can be expanded, decision-
According to a 2006 survey commis- including the responsibility of making qual- makers can control costs, and employees
sioned by AFLAC of 501 small-business ity insurance benefits available to their get to manage their health care expenses;
owners, many understand the role of a good employees. However, rising health care however, few business decision-makers
benefits package in the hiring process. expenses can negatively impact the bottom have implemented an HSA.
Nearly two-thirds of respondents line as small companies may often struggle Offering a Flexible Spending Account
reported they are concerned about their to afford the cost of insurance while main- (FSA) may also have a positive impact on
company’s ability to provide a benefits pack- taining and recruiting a quality workforce. your ability to attract employees. As workers
age that will attract and retain employees. The success of any organization resides increasingly look for ways to develop a
Half of those surveyed agreed that they within its people, so attracting and keeping healthy work-life balance, employers will
cannot attract and retain top-quality good employees is vital to the growth of have to provide workplace offerings that
small organizations. Because small busi- support this growing employee need. An
nesses are more susceptible to premium FSA benefit can be a good first step in help-
increases, it is important that they are well- ing to accomplish this. FSAs may help save
informed of the numerous health benefit your employees money by reducing their
options available in order to help them taxable income. There are two types of flex-
recruit and maintain top talent. ible spending accounts: un-reimbursed
Because AFLAC recognizes and respects medical and dependent day care. At the
the contribution small businesses make to beginning of each year, an FSA allows an
the growth of our economy, it wanted to elected portion of an employee’s salary to
offer resources relevant to these emerging be redirected to provide reimbursement for
companies. As a result, the insurer launched certain types of medical and day care
a nationwide campaign in 2006 focused on expenses not reimbursed by other sources.
letting growing companies know that There is a delicate balance between
AFLAC may provide an affordable solution profitability and the competition for quality
to enhancing employee benefit offerings to employees. An informed employer is a
help attract and retain key employees. smart one.
The campaign provided free resources
that helped address small business owner David Holper is a district sales coordinator of
needs, including an “Attracting and Retain- Los Angeles Area East for American Family
ing Excellent Employees,” booklet offering Life Assurance Company of Columbus
insightful background information, research (AFLAC). He’s responsible for recruiting, field
training for independent agents and sales
and tips on health benefits. The booklet can coordinators, and new account develop-
be downloaded from AFLAC’s small busi- ment. He began working with AFLAC in
ness-focused website, www.aflacsb.com in 1999 as an associate and quickly rose
the “Tips and Resources” section. through the ranks. David has earned many
The company designed the initiative to awards with AFLAC, including Triple Crown
and the Founders’ Award for Management
proactively engage and address the specific Excellence (FAME). For more information
challenges, concerns and needs of small about AFLAC, visit aflac.com or contact
business owners. David at 310-977-8922.
CORPORATE COMPLIANCE priately manages IT-related risks and oppor- cedures and practices in place that will fit
continued from page 13 tunities. Implementing the COBIT guide- into the COBIT guidelines for change con-
• Set security levels for access control lines defined above in any organization trol and security measures.
depending on a user’s demonstrated can help ensure that their IT systems work When considering the position and
need to view, add, change or delete for the benefit of the organization and that actions to be taken with corporate IT in
data. the data that is so valuable to the company light of the SOX world we live in, busi-
• Review and confirm access rights is properly secured and protected. ness owners should always look to what
periodically. Frequently, privately held organizations is best for the organization. Whether
• Minimize the need for individuals to become frustrated with their IT and their IT upgrading existing systems, auditing your
use multiple log-ins. systems. The IT enterprise simply does not change management process or review-
• Control and access for remote con- deliver the systems and solutions that the ing internal IT procedures, or outsourc-
nection to networks and/or applica- company requires, or does not provide the ing these functions, seeking expertise in
tions is in place. level of service needed. This often occurs the area will save time, money. Under-
• Require adequate passwords as well because the IT department evolves without standing the IT requirements for corpo-
as periodic password changes. structure or guidelines over time. Expecta- rate compliance can be a daunting task
• Establish procedures to ensure timely tions are not set both on the business and for even the most astute businesses.
action relating to requesting, estab- the IT side of the equation. Systems do not
lishing, issuing, suspending and perform at the level of the enterprise and R. Boyd Zack is the President of R.B. Zack
& Associates Inc., a Torrance, California-
closing user accounts. are often riddled with bugs, workarounds
based company with 26 years of experi-
• Log all security activity and immedi- and shortcomings. ence in development, implementation,
ately report and quickly act upon When this is the case, companies maintenance and support of custom
any indication of a security violation. should look to outside consulting or business software and IT services. “Build-
ing Business Applications that Work
• Perform a periodic re-accreditation development firms to assist in getting their
Since 1981.” He can be contacted at
of security. IT on track. A well established software Boyd.Zack@rbza.com or via the web site
• Determine logical access to com- development company should have pro- at www.rbza.com
puter resources based upon the prin-
ciple of least privilege.
What are the penalties for

noncompliance to SOX?
Corporate non-compliance to earlier
government regulations, such as occupa-
tional health and safety rules in the work
place (OSHA requirements) and the pol-
lution controls monitored by the EPA,
resulted in corporate fines, lawsuits and
negative publicity.
Non-compliance to SOX regulations
is harsher. And it gets personal.
A CEO or CFO who submits a wrong
certification is subject to a fine up to $1
million and imprisonment for up to 10
years. If the wrong certification was sub-
mitted “willfully,” the fine can be increased
up to $5 million and the prison term can
be increased up to 20 years.
Should private US companies

concern their IT with SOX?
While private companies do not have to
comply with SOX regulations, many of the
guidelines established by COBIT are very
beneficial. Effective IT governance helps
ensure that IT supports business goals, opti-
mizes business investment in IT and appro-
T E LCU H
C O M N
N O
I NLSO
TECHNO-IGNORANCE Remember, you’re the one with the The best way to turn this situation
continued from page 8 knowledge and experience to run a around is to find methods and systems to
If you’re one of those people with a business. The techno wiz kids may decipher the techno speak in a way you
computer on your desk you rarely use understand computers better than you can begin to understand it and gain some
and an adding machine in your desk do, but they don’t have the same depth meaningful knowledge. You could start
you pull out when no one is looking, of understanding about business. In fact, by taking some computer classes, either
you need help. If you think a spread- this disconnect has done the most dam- with a private coach or at your local
sheet is something you buy for a king- age to business over the last decade. For community college. Make sure you focus
sized bed and a browser is someone example, the dot-com disaster happened on basic office software like word pro-
who shops but never buys, you really because the venture capitalists didn’t cessing and spreadsheets before moving
need to get a grip and get some basic understand the Internet in a way that to more complex applications. The first
computer training. QuickBooks is not a allowed them to make smart investment time this dropped in your lap years ago,
drive-through window at the library and decisions, and the young people who PC users needed to learn cryptic com-
a router is not the receptionist who created the first generation of dot-com mands and every application had differ-
screens your calls. If you just learn companies didn’t understand basic busi- ent procedures for basic file handling and
enough so these mysterious terms your ness economics. They actually thought printing. Some people gave up early on
employees and co-workers use regularly funding a company with massive ven- and never went back. Or if they did go
start to have some meaning in your own ture capitalist money while having no back, they developed strong prejudices
work life, you will feel better, you will plan for producing profits was a viable against technology in the workplace.
be in the loop and you will really know business model. I’m sure their investors In the point-and-click world of today,
how to create a more productive office didn’t see it that way, but they paid a Microsoft Windows has common proto-
with the best tools available. Plus, even high price for their own ignorance. Peo- cols for basic computer functions, so
if you think you’ve done a good job of ple with the foresight to see this coming the process is really much easier now
covering up these deficits for two thought Wall Street investors had lost and just about anyone can do it. If you
decades, trust me when I say this — their minds, but they were powerless to want to self-educate, I suggest browsing
you’re not fooling anyone! stop it. The rest is history. through books at your local bookstore
and buy the ones written intuitively for
non-technical people. The manuals that
came with your computer and software
are often the toughest to understand,
but they are much better now than they
used to be.
Don’t bother with advanced system
and networking information because
you can call in an IT pro to handle the
big stuff. It’s kind of like dealing with
your mechanic. You don’t have to know
how to do the actual work, but you will
be at a big disadvantage negotiating
with your mechanic if you don’t know
the difference in labor and cost between
changing your oil and fixing a blown
head gasket. So with the computer, it is
important to learn the basic structure of
the system and only go into detail with
the applications people use in the work-
place to do their jobs. That way, you
won’t be overwhelmed.
The key is it to understand it is just as
essential to be techno-literate as it is to
be able to read and write. No matter
how well-educated you might be other-
wise, you can’t manage effectively if you
don’t understand the tools of modern
business.
C O L U M N I N S I D E R
BUSINESS MEETING, EVENT,
& BANQUET RESOURCES
310-791-9100 delivery, pick-up and full service
19800 S. Vermont catering. Our banquet room will
Torrance, CA 90502 comfortably accommodate as few as 30
www.holidayinn/torranceca to 50 seated in the back room and up to
100 seated when the room is open to its
Catering full capacity. We can accommodate up
Lisa’s Bon Appetit to 150 people for cocktail receptions.
Lisa’s Bon Appetit provides catering for 310-784-1070
corporate, large scale and charity 3711 Pacific Coast Hwy.
Banquet & Meeting Rooms events. Once you place a catering Torrance, CA 90505
DoubleTree Hotel LAX-El Segundo order with us, you have several options: www.LisasBonAppetit.com
Our six conference and banquet rooms
and 4,500 sq. ft. of modern meeting
space can gracefully accommodate 10 to
150 guests. Whether your meeting calls
for state-of-the-art audio-visual
equipment or an elegant dinner party,
our experienced staff is dedicated to
providing flawless service for every event.
If you have attendees coming in from out
of town, we have 215 newly renovated
rooms and free 24-hour complimentary
shuttle service to and from LAX.
310-322-0999
1985 E. Grand Ave.
El Segundo, CA 90245
www.DoubletreeLAX.com
Banquet & Meeting Rooms

Holiday Inn Torrance Hotel
The Holiday Inn Torrance Hotel is the
perfect location for your next meeting or
event. With 8,000 SF of flexible meeting
space and the ability to accommodate
up to 400 people theater style we are
ready and waiting to create the perfect
experience for your guests. Full-service
catering staff on hand to assist with
every catering need and make planning
your event a breeze. Wireless Internet
access is available in all meeting rooms.
Look again at Holiday Inn Torrance!

Business Insider Magazine - Volume 3 - Issue 2 - 4th Issue 2007

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Business Insider Magazine - Volume 3 - Issue 2 - 4th Issue 2007

Încărcat de

Drepturi de autor:

Formate disponibile

INSIDE: No Recession Says Los Angeles County Economic Development Corporation

The Real Deal 9

Publisher & Editor

Graphic Design & Production

Copy Editing & Proofing

Advertising Sales Manager

Assistant to the Publisher

S O WHAT IS ALL THE HYPE ABOUT HIPAA AND SOX

What does SOX compliance

• Software changes must regulate in

T HERE WAS A TIME WHEN THE RICH

The Real Deal:

I n the never-ending saga of the

WHO, WHAT, WHEN, WHERE AND WHY…

D ESPITE GLOOM AND DOOM PROGNOSTICATIONS

Jobs and Population

The recent housing downturn,

Executive Director Joe Aro, “You don’t

Guiding a company’s most valuable assets to reach its potential

W HILE SOME MANAGERS DREAD giving a perfor-

After the Appraisal Meeting

Lori Burzminski operates South Bay HR,

D OES YOUR COMPANY FIND IT CHALLENGING to

c. Health and Welfare Plans

Use Your MIND

T HE SOUTH BAY IS WIDELY KNOWN for its healthy

Top 5 Myths of a Corporate Wellness Program

T HE RECENT SIGNING OF THE LARGEST REFORM of

Evaluate and Understand Plan Expenses

Communicate With and Educate

Securities Kathleen Branconier is Manag-

Securities and investment advisory ser-

T HE 10TH FASTEST GROWING

STRESS continued from page 24

Q: Why does someone leave one accounting

A SHORTAGE OF CERTIFIED PUBLIC ACCOUNTANTS

Q: That’s a candidates’ market. Q: Are retirees a recruiting market?

Q: What is the best advice you can offer

Judicial Challenge to Regulations

What are the penalties for

Should private US companies

Banquet & Meeting Rooms

S-ar putea să vă placă și