This Week's Herman Trend Alert Demand-Driven Workforce Development

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 1998-2008 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." DON'T BE LEFT BEHIND! If you've been thinking about attending our valuable Employee Retention Specialist Certificate Program, don't delay--only three spaces remain. With the employment market heating up, many positions are literally impossible to fill. Attend this course and you will learn dozens of low-/no-cost valuable strategies to attract and retain the talent you need. Recertification credit from HRCI. Next program: May 22-23, Charleston, SC. Call Carol at 336-282-9370 or visit http://www.employeeretentionspecialist.com. GET INSIDE THE MINDS OF YOUR EMPLOYEES Find out what's really going on inside the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-648-1918 or read more at: http://www.hermangroup.com/retentionconnection/exit_interviews.html. NEW BABY BONUS Book Joyce to speak on the West Coast in 2008 and receive 100 of her books of your choosing. There is a new baby in the family, Spencer Jay, and Joyce would appreciate more opportunities to watch him grow. For more about Joyce, visit http://www.hermangroup.com/joyce.html or call Joyce at 336-210-3548. 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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