This Week's Herman Trend Alert Telecommuting to a Better Bottom Line

The Herman Trend Alert November 22, 2006 Maintenance SOX? In the past decade there has been a dramatic increase in corporate accountability. High profile accounting debacles have brought management practices under close scrutiny. To answer calls for justice from shareholders, employees and the public, courts are holding governing boards and the executives they hire to task. One attempt to add safeguards against shareholder fraud result is the Sarbanes-Oxley Act of 2002 (‘SOX’). While established with good intentions, the financial burden on corporations and federal regulators is significant. A recent survey found that companies with average revenues above $5 billion report an average cost of compliance of $4.36 million. Expense areas include more stringent audit procedures, upgraded accounting system technology to enable compliance, and the addition of accounting and controllership staff. Many people are cautiously optimistic that accounting problems of this scale are behind us. The question now is “how might a skittish administration adapt and apply the SOX ‘solution’ to other areas of big business?” Some see equipment and facilities maintenance as an emerging area of concern. Like personal property, corporate assets wear out and need maintenance and replacement. At some point it’s only good business to make these investments. But what prevents a company from putting off these important expenditures--if no one is watching? This situation has already begun to come to the surface in the petroleum products distribution industry. In early 2006 petroleum giant BP reported two pipeline ruptures at its Prudhoe Bay oilfield; one of which totaled some 200,000 gallons of oil. One BP employee admits, “We are at the point where there is so much damage to the lines from corrosion, we don't know where another leak will occur.” Once again, furious shareholders, Alaska residents, and concerned environmentalists are calling for remedy. Consequently, BP is currently under criminal investigation for its pipeline management practices. There are countless other examples of deteriorating corporate assets that may cause harm or damage. There is no question that the regulatory environment will shift to address maintenance and related issues. What remains to be seen is when and how it will happen. Remediation will be costly and time consuming. © Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc." NEED HELP THINKING ABOUT YOUR FUTURE? Our futurists offer thought-provoking and penetrating insights, along with creative ideas to implement right away. Whether you're looking for a speaker or a consultant or a facilitator for your strategic planning retreat, The Herman Group can help you find a person for your needs, no matter what your topic. Call Joyce at 336-210-3548 to discuss your event. REDUCE COSTS BY LOWERING EMPLOYEE TURNOVER If you knew just how much money turnover is costing your company, you would have handled it ages ago! Turnover costs A LOT and it comes right off the bottom line. Let The Herman Group and its team of very experienced consultants help you address your turnover issues right away. We have an impressive track record and stand ready to help you. Call Carol at 800-227-3566; international, call 336-210-3547 for a no-obligation conference call. GOOD SELECTION = BETTER RETENTION If you are not using pre-employment assessments, you are flying without radar---not very smart in today's highly competitive environment. Let us help you better understand your candidates and your employees. In less than 30 minutes, you will know if they can do the job (abilities); their work behaviors, even their personality and attitudes (like integrity & ethics), and those can't be trained. It's very cost effective, too! For more information, contact Joyce at 336-210-3548 or e-mail assessments@hermangroup.com. Validated for many countries and cultures. We offer in-depth help with job descriptions, too! http://www.hermangroup.com/assessments.html. Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers. New subscribers are welcome. There is no charge for this public service. The Herman Trend Alert is received by over 30,000 subscribers in 78 countries, in addition to other websites and printed magazines. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Trend Alert service. Click here to sign up for the Herman Trend Alert. Subscribe or Unsubscribe to weekly Herman Trend Alert View this week's Herman Trend Alert Archived Weekly Herman Trend Alerts

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