Ethical Analysis of Citigroup

Company Assessment: An Analysis of CitiGroup 1 Company Assessment: An Analysis of CitiGroup Introduction With origins dating back to 1812, Citigroup (Citi) is a global diversified financial services holding company providing both individuals and institutions with a broad range of financial products and services. These services include; consumer banking and credit; corporate and investment banking; securities brokerage; transaction services; and wealth management.
Headquartered in Manhattan, NY, Citi currently has over 260,000 employees servicing 200 million customer accounts in more than 160 countries around the globe. Citi is organized into two divisions; Citicorp and Citi Holdings. Citicorp manages the consumer and institutional core client business, while Citi Holdings manages the brokerage and asset management divisions. Based on financial data obtained from the Citi website, the core st business (i. e. Citicorp), represents 92. 9% of the $19. 4 billion ($US) of the 1 quarter 2012 revenue.
The total revenues of Citicorp are geographically diversified across the globe with North America representing 40% of the total, Asia at 22%, Latin America at 20% and Europe, Middle East and Africa (EMEA) accounting for the remaining 18% (Citi Financials, 2012) Over its 200 year history, Citi has been a leading innovator in financial services starting in the 1920’s by becoming the first major U. S. bank to offer compound interest on savings accounts. Also, through the acquisition of Second National Bank, Citi has the distinction of being the first bank in New York to provide separate banking services for women.

Further innovations include; offering unsecured personal loans and customer checking accounts in 1928 and 1936 respectively (Citi Timeline, 2012). Citi’s original mission of offering traditional banking services evolved as they grew, however, since the financial crisis of 2008, Citi has been selling off many of the non-core operations to refocus on the traditional banking model. The refocused mission as stated on the corporate website is: “We strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible. (Citi, 2012) The purpose of this paper is to conduct a review and overall ethical assessment of Citi which will include an overview of the mission, vision and values, ethics and compliance codes, leadership, corporate social responsibility as well as the corporate governance structure. Mission, Vision and Values Clicking on the “Our Company” link of the Citi website, you are immediately drawn to the bolded text stating the corporate vision: “160 Countries. 1 Vision. Citi works tirelessly to provide consumers, corporations, governments and institutions with a broad range of financial products and services.
We strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible. ” (Citi, 2012) It is clear that Citi has a vision that places them as the global bank focused on client service, innovation and financial responsibility. Expanding upon the vision statement is the mission statement of Citi and the principles that guide them. The Mission statement is: “Meeting the World’s Challenges. Seizing its Greatest Opportunities” (Citi Mission, 2012).
The four key principles that guide the company as they endeavor to deliver on their vision and mission are; Common Purpose; Ingenuity; Leadership; and Responsible Finance. Based on the stated vision, mission and principles, in my opinion, Citi can be described as a focused team, rewarded based on talent and merit, operating in an innovative culture with one clear goal to deliver transparent and prudent financial products globally. I consider the written vision, mission and guiding principles of Citi to be quite inspiring.
Ethics and Compliance Codes In early 2005, Charles Prince, then CEO of Citi announced a bold strategy to transform the financial giant that was Citi. His plan, known as the “Five Point Ethics Plan”, was designed to; improve ethical training; focus on talent and development; integrate ethics into performance appraisals and compensation; improve communications; and strengthen ethical controls. (Restoring Ethics, 2012) As the successor of Sandy Weill, who, Johnson (2012) suggests typifies the ethically neutral leader (p. 19), Prince faced considerable skepticism on whether his plan could work in such a large and complex organization that had a history of significant regulatory scrutiny, and was linked to some of the biggest scandals in corporate history (e. g. Worldcom). While Prince had some critics, he also had some support. In the January 28, 2005 edition of BusinessWeek Online, Prince was described as a smart, logical thinker and another quote made by an analyst was…“I believe that non-charismatic Prince is going to be a more positive force at Citigroup than the other three charismatic CEOs going back to the 1960s. (Restoring Ethics, 2012) I believe he vision that Prince delivered after taking over from Weill, continues to be embraced by the current Citi CEO, Vikram Pandit as well as the Board of Directors. One of the key responsibilities of the Citi Board of Directors is to review and approve the Citi Code of Conduct (the “Code”). The Code outlines Citi’s principles, values and standards of practice for all employees of 2 Citi and as such can be viewed as Citi’s ethics code. Employees are expected to read and sign the Code, not necessarily as a condition of employment, but as a formalized agreement to abide by the standards of behavior outlined therein.
Although not a formal contract of employment, the formal approach to signing the Code can be viewed as being integrated into HR practices. A point of interest is that Citi also strengthens the employee requirement to abide by the code by stating that even if an employee doesn’t return a signed copy, they are still bound by its terms and conditions. In fact, in the introduction to the Code, Citi is clear that failure to adhere to the Code can result in immediate termination of employment. The latest revision to the Code was made in 2011.
The code is available in 26 different languages. While in the past, employees had periodic training on the Code, it appears that the training was ad hoc, but according to the Corporate Citizenship Report, in early 2012, Citi rolled out a formalized ethics training program for all employees. In addition to the Code that exists for all employees, there is an additional Code of Ethics that applies solely to the senior financial executives (CEO, CFO, etc…) and financial administrative staff.
While it may appear that this is a sign of a higher ethical standard at Citi, as with the NYSE requirement for a firm-wide code of ethics, Sarbanes Oxley mandates a requirement for a separate Code of Ethics for senior executives. In reading both the firm-wide Code as well as the Code of Ethics for the senior executives, it’s interesting to note that the Code of Ethics reads like a very compliance based document, while the firm-wide Code reads more like a call to action for all employees to act with the utmost integrity. In fact, the word integrity appears 9 times in a relatively short document.
In all fairness to Citi, they do specify that the Code of Ethics should be considered a supplement to the firm-wide Code and they provide a link to the Code as part of the document. Citi also has a set of ethical principles that applies to suppliers. In short, Citi expects that suppliers adhere to the same high standards of practice that governs Citi. The key areas that the principles apply to are; ethical business practices (Integrity, transparency and community engagement); human rights in the workplace; environmental sustainability; and management systems and implementation.
Further information on these principles is available at http://www. citigroup. com/citi/citizen/people/diversity/supplierprinciples. htm. One final point regarding the ethical policies of Citi would be that they operate a 24/7 ethics hotline where employees can report ethical concerns and remain anonymous to the extent that the law will allow. While it is unclear if the hotline is operated independently of Citi, (it appears as if it is not) there is a strong focus on confidentiality and although I was unable to identify the name of the individual, the Code identifies that Citi has an ethics officer.
Leadership It is the responsibility of a leader to establish and foster the organizational climate. The leader’s ability to cast shadow or shed light will permeate throughout an organization and ultimately shape the culture. In short, regardless of who is named the formal ethics officer, the leader of the organization is charged with that duty. Citi is managed by an executive team of 24 senior leaders from key regions and divisions across Citigroup’s global network. While the ethnic origins of the executive are not specifically mentioned, there appears to be a wide range of ethnic backgrounds on the executive committee.
Unlike the Board of Directors however, the executive committee has only 1 woman, Cece Stewart who is the president of US, Consumer and Commercial Banking. Citi maintains a compensation philosophy that attempts to align compensation with their overall Mission statement. The key objectives of this philosophy are to; enhance shareholder value; attract talent; recognize contributions; manage risk; provide independent oversight; and transparency to all stakeholders. You can visit http://www. citigroup. com/citi/investor/data/comp_phil_policy. df? ieNocache=340 for further information on Citi’s compensation policy. Some evidence to support the integrity of Citi’s compensation practices would be that, according to the 2011 Proxy Statement, as part of the process for making incentive awards for 2011, the Personal and Compensation committee considered the April 2011 “say on pay” vote which received as 92. 9% favorable. Perhaps the vote was biased upwards as a result of Pandit’s decision to only accept a “total” compensation package of $1 for 2010, and most of 2009?
While I was unable to find any concise data that represents the pay gap between the top executives and the front line employees, I am pretty confident that for all of 2010, and the better part of 2009, the CEO was the lowest paid employee of Citi. The table on the following page provides some compensation data for the past 3 years for the key senior executives of Citi. 3 Change in Value of Deferred All Other Compensation Compenstion ($) ($) 0 0 0 73,047 51,995 49,117 0 0 0 0 14,700 0 3,750 14,700 9,800 14,700 14,700 9,800 14,700 14,700 Executive Member Year Salary ($) 1,671,370 1 125,001 500,000 500,000 416,667 500,000 500,000 500,000 500,000
Bonus ($) 5,331,452 0 0 2,200,000 Stock Awards ($) 0 0 0 Option Awards ($) 7,839,581 0 0 Total ($) 14,857,103 1 128,751 7,160,916 4,728,462 5,063,817 12,984,481 9,509,800 11,276,454 11,354,536 0 0 11,446,900 10,116,895 10,400,007 Vikram Pandit CEO John Gerspach CFO John Havens COO Brian Leach Chief Risk Officer Manuel Medina-Mora CEO Latin America 2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2,333,333 2,039,836 4,166,667 4,583,333 4,750,000 2,719,781 9,000,000 10,327,374 434,380 5,400,000 2,039,836 5,000,000 3,400,000 2011 2010 2009 546,966 546,966 546,966 4,181,214 0 0 3,998,939 2,719,781 7,450,911 0 9,328,010 361,984 2,119,018 163,047 0 0 0 Source: taken from the 2011 Citi Proxy Report While on the surface, multimillion dollar compensation packages may appear egregious, however, for each of the executives above, approximately 50% of the total compensation package is deferred and/or exists under a multiyear vesting provision that is not only tied to tenure at Citi, it is directly tied to the performance of the organization. For 2011, there does appear to be a “traditional” pay gap between the CEO and the other “C’s” and I suspect that the gap widens significantly as you move down to the front line workers.
By looking at just the total cash (salary and bonus) component of the compensation packages that range from a low of $2. 5 million to a high of $7 million, many people will undoubtedly feel several of the other condemning emotions. But to add a little perspective, for 2011, Citi’s charitable giving was more than 2 times the value of the total (cash and deferred) executive compensation of the individuals above. Also, at a total of $6. 4 billion, the 2011 commitment to climate change initiatives represented over 8% of Citi’s 2011 revenues, and almost 60% of net income.
I must admit, besides a little wallet envy, I feel mostly admiration for the work, both social and economic that the leadership of Citi has done that started in 2005, was derailed during the financial crisis, and has continued over the past few years. Based on this evidence, I would challenge an assertion that the current management is hoarding rewards at the expense of all other stakeholders. When Prince took over leadership of Citi in 2005, his calm, intellectual demeanor was quite the opposite of the “larger than life” charismatic CEO that preceded him.
Since taking over from Prince in 2007, Pandit appears to have followed by example and has demonstrated some remarkable unselfish actions as he navigated Citi through the biggest financial crisis since the Great Depression. Despite the critics of the financial industry, Citi, through sound leadership, ranks well on the triple bottom line accounting metrics that forms the foundation of Corporate Social Responsibility. Corporate Social Responsibility (CSR) One of the biggest criticisms of CSR reporting is that it is simply a public relations tool designed as window dressing to improve image.
After the financial crisis of 2008, no other industry would have as many critics as the financial industry. To provide a little evidence of the integrity of an organization’s CSR claims may help st soothe the critics. Since the early part of the 21 century, Citi has been consistently been a constituent company of the Dow Jones World and North America Sustainability Indexes as well as the FTSE 4Good Index, and in 2011, Citi also became a component of the STOXX Global ESG Leaders indices. It is clear that the CSR activities of Citi are being recognized outside the organization and may have a little more credibility than window dressing.
Citi defines its Corporate Social Responsibility framework as Global Citizenship. The three key focus areas of their citizenship efforts are; delivering financial solutions at affordable costs, sustaining the environment 4 and valuing Citi employees. Progress towards these three focus areas are provided as a summary page within the Global Citizenship report, but also as separate publication (attached as Appendix A). There are four key metrics for Financial Inclusion performance indicator. First, they provide charitable contributions (Strategic Giving), which at $121. 9 million for 2011 (1. % of net income), and represents an average annual growth rate of 13% since the end of the financial crisis in 2008. Second, is Small Business Lending, which at almost $8 billion for 2011, has grown by 75% since 2009, and actually surpassed the 2011 goal of $7 billion. nd The third metric is the provision of affordable housing lending, which at $2. 0 billion, places Citi, for the 2 consecutive year, the top affordable housing lender in the US. The final metric under Financial Inclusion is Global Microfinance. In 2011, Citi has provided microloans to almost one million lenders of which 92% of loans where to women.
Under sustaining the environment performance indicator, Citi includes metrics for e-communications, clean energy, greenhouse gas emissions and using ESRM screening criteria for financial transactions. As one of the world’s leading credit card companies, Citi’s movement towards paperless statements has, at 29% penetration (2011), doubled since 2008. Under the clean energy metric, in 2007, Citi announced a 10 year, $50 billion commitment to activities directed at mitigating climate change. As of the end of 2011, 5 years in to the program, 73% of the total has been committed.
Under the greenhouse gas emissions metric, in 2005, Citi announced a 10 year plan for a 25% reducing in greenhouse gas emissions. As of 2011, there has been a 13. 6% percent reduction since the 2005 baseline. In 2011, the integration of environmental and social factors into the traditional risk management screens for project financing covered over 400 projects globally. Citi appears to have a significant focus on environmental concerns through written policies and statements as well as real action. Further information on Citi’s position on the environment and their ESRM polices can be found at http://www. itigroup. com/citi/environment/ The final area covered under the report card is the metrics that cover the way Citi values their employees. The key metrics are; training; satisfaction; diversity; and employee volunteering. Citi has a very diverse workforce, and though 61 network groups consisting of 15,000 employee members in 18 locations around the world, Citi encourages employee diversity and support. Employee satisfaction has been increasing since the end of the financial crisis and at 73% satisfaction for 2011; it represents an overall 10% increase since 2009.
It is unclear whether the increase in a result of simply happy to have a job in a tough economy, or true job satisfaction, in any event, Citi appears to have a more satisfied workforce. Employee training has seen a remarkable increase since the 2008 financial crises. Training activities cover areas such as, leadership, management, product and compliance and since 2008; training hours have increased by over 80% at 38. 4 hours per year per employee. Employees of Citi provided almost 800,000 hours of volunteering activities during 2011, almost 30% growth over 2010.
It seems that giving back to the community not only is evidenced by financial metrics but also by the employee’s action. Although Citi’s key performance indicators focus on; Financial Inclusion; Environmental Sustainability; and Valuing our Employees, the Global Citizenship report is quite extensive and can be viewed as a supplement to the Citi Annual Report. In addition to the three key focus areas covered above, the report also covers corporate governance, which is covered in the section that follows, as well as, how Citi serves the customer and maintains sustainable and diverse supply chain relationships.
The report outlines both Citi’s achievements as well as the challenges they face and breaks down Citizenship on a regional basis. In guiding their citizenship activities, Citi uses a stakeholder engagement approach to and list their stakeholders as; Customers; Investors; Employees; Regulators; Suppliers; Community Leaders; Non-Governmental Organizations (NGO’s); Socially Responsible Investors; Media; and Competitors. The communication channel used for each stakeholder and examples are included as Appendix B.
Corporate Governance Corporate Governance has been defined as “The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company’s relationship with its stakeholders (financiers, customers, management, employees, government, and the community). ” (Governance, 2012). As an appendix to the annual proxy statement, Citi provides the Citigroup Inc. Corporate Governance Guidelines. Consistent with the overall corporate mission, the corporate governance mission is…”Citigroup Inc. the “Company”) aspires to the highest standards of corporate governance and ethical conduct: doing what we say; reporting results with accuracy and transparency; and maintaining full compliance with the laws, rules and regulations that govern the Company’s businesses. ” (Citi Governance, 2012). This comprehensive document outlines the guidelines and policies with respect to the responsibilities, term, expected qualifications, and compensation of the Board and the committees thereof.
Of notable mention in the governance policy would be the restriction against interlocking directorates, the requirement for personal stock ownership, and the annual review and assessment of board performance conducted by the Nomination, Governance and Public Affairs Committee. 5 One shortfall of the policy would be the lack of any set term for a board member. While there are two schools of thought with respect to fixed term appointments, in my opinion, the advantage of bringing in fresh ideas with new board members would outweigh any potential loss of knowledge that would exit with an entrenched board member.
I believe staggered board appointments with fixed term would be an enhancement to the Citi corporate governance policy. As mentioned in the Ethics and Compliance Codes section above, as a requirement to list on the NYSE, a company is required to have a formal code of ethics. In addition to this requirement, the NYSE also requires a minimum standard for the independence of directors. To meet the regulation, Citi would need a minimum of 9 independent directors. At the end of 2011, 11 of the 13 member board were independent. The two connected members were Pandit, and the Citi Chairman, Michael O’Neill.
The remaining board members consist of a diverse group of active and retired business professionals, a philanthropic foundation president, a former state federal reserve bank official, a leader from the investment management community as well as Ivey league academics. Although only 3 of the board members are women, almost 40% of the members are visible minorities which also includes the Chairman and the CEO of Citi. Simply put, the Board of Directors of Citi is comprised of a very comprehensive representation of their stakeholder groups as identified in Appendix B.
As of 2011, there are 5 standing committees of the Board: Audit; Risk Management and Finance; Executive; Personnel and Compensation; and Nomination, Governance and Public Affairs. A separate Charter exists for each committee that outlines the mission, duties and requirements regarding independence of the committee members. The Audit and Risk management committee is comprised of all independent directors. O’Neill is the current Chair of the Executive as well as the Personnel and Compensation Committees (non-voting) and he sits as a voting member of the
Nomination, Governance and Public Affairs Committee. Among other roles, the Nomination, Governance and Public Affairs Committee is responsible for the environmental sustainability and stakeholder engagement activities of Citi. Since 2005, non-employee directors receive $75,000 per year plus a deferred stock award valued at $150,000 on the date of issuance with a 2 year vesting period. With the requirement to own stock of Citi, as well as the deferred vesting of the majority of the compensation they will receive, directors of Citi are incented to act in the best interest of the organization.
SEC Investigations As a publicly traded, multinational, diversified financial services organization, incorporated in the U. S. , it should not come as any surprise that in the course of their business dealings, both the organization and the individual staff of Citi will be subject to SEC litigations and investigations on a frequent basis. In fact, a search on the SEC website (http://www. sec. gov/litigation. shtml), and filtering the search parameters to include only “Litigation” and “Regulatory Actions” you will actually find too many to list.
In fact, since January 1, 2005, there have been a total of 284 Regulatory Actions and 140 Litigations that has Citi named. It would be quite misleading to state that all litigations listed Citi as the defendant, however from my brief review of some of the search results there appears to be complaints related to the accounting treatment of credit derivatives, fair value misstatements of sub-prime mortgage exposure, many of which listed most of the financial services industry. There was however one interesting investigation made in 2008 that questioned the independence of the Board of Directors.
While I can’t comment too much on the ethical leadership of the firm leading up to the financial crisis, evidence such as the highly publicized investigations, along with the involvement in Worldcom and other major financial collapses, certainly cast a shadow on the past activities. However, during the tenure of the current CEO, as well as his predecessor, the Board of Directors appear to have addressed many of the high level governance ethical shortcomings that were past investigations by the SEC.
Conclusion Perhaps the most difficult aspect of conducting a review of an organization is coming to a definitive stance, based on concrete evidence, on the degree of ethical culture that exists inside the organization. Without living inside an organization, how can you state that ethical conduct permeates across all aspects of the firm activities? Operating in an industry that has undoubtedly has the highest level of public cynicism regarding ethical conduct, how could anyone take the stance that any financial services company scores well from any ethical standpoint?
Despite this challenge, my impression from this review is that Citi does indeed rank well. Since taking over the firm in 2007, carrying on from Prince’s “Five Point Ethics Plan”, Pandit, has lead the firm back on firmer financial ground by shedding much of the troubled assets and refocusing the operation more towards a traditional banking model. Despite participating in the TARP and subsequently paying back all funds borrowed, under Pandit’s leadership, Citi has become one of the best capitalized banks in the U.
S. He won high 6 praise from public opinion by accepting a total compensation package of $1 for most of 2009 and all of 2010, becoming undoubtedly, the lowest paid employee of Citi. Those types of unselfish acts, despite his personal net worth, should be viewed as a sign of an admirable leadership style. The critics statement that he doesn’t need/deserve the money is, in my opinion, ludicrous and shouldn’t overshadow what is a truly admirable action.
An ethical culture starts with an ethical leader posed ready to lead by example and in my opinion, by his example, Mr. Pandit ranks very well. In addition to the profit motive, Citi approaches it business with a demonstrated commitment to environmental and social key performance metrics, engaging with all stakeholders, going above and beyond the simple legal requirements and acting as an agent of moral influence with suppliers.
Adding to this ethical framework a very committed CEO, a strong board representing stakeholders, and ethics training, it’s hard to argue that the firm lacks a robust ethical framework. It appears as if the vision of Prince continues to be embraced by Pandit and Citi’s current leadership. While it may be a long road ahead in the court of public opinion, Citi appears to be on the right track to shed the degree of cynicism the financial industry has, but like most future outcomes, only time will tell. 7 References

Target Costing

Robin Cooper and Regine Slagmulder Editors’ Note: This article is an updated synthesis of in-depth explorations contained in Target Costing and Value Engineering, by Robin Cooper and Regine Slagmulder (Portland, Oregon: Productivity Press, 1997). Part two of the series discusses product-level target costing; part three, to be featured in an upcoming issue, will address component-level target costing. omers. Consequently, the objective of product-level target costing is to increase the allowable cost of the product to a level that can reasonably be expected to be achievable, given the capabilities of the firm and its suppliers (see Exhibit 1). EXECUTIVE SUMMARY• Product-level target costing works to increase the allowable cost of the product to a level that is both reasonable and achievable given the capabilities of the firm and its suppliers.
Step one establishes the target cost by incorporating the capability of the firm and its suppliers into the allowable cost so that an achievable product-level target cost is established. • Step two uses value engineering to identify ways to design the product so that it can be manufactured at its target cost. • Step three applies the disciplining mechanisms to help ensure that the product-level target cost is achieved. The target costing process contains three major sections: market-driven costing, product-level target costing, and component-level target costing.In part two of a three part series, this article discusses how product-level target costing works to increase the allowable cost of the product to a level that is both reasonable and achievable given the capabilities of the firm and its suppliers, in a three step process. Step one establishes the target cost by incorporating the capability of the firm and its suppliers into the allowable cost so that an achievable product-level target cost is established.Step two uses value engineering to identify ways to design the product so that it can be manufactured at its target cost.
Step three applies the disciplining mechanisms to help ensure that the product-level target cost is achieved. PRODUCT-LEVEL TARGET COSTING The objective of product-level target costing is to establish aggressive but achievable product-level target costs. These target costs should place considerable pressure on the firm’s product engineers to find creative ways to reduce the manufacturing costs of the products that they are designing.Target costs differ from allowable costs, because they incorporate the capabilities of the firm and its suppliers into the target costing process. In practice, it is not always possible for the designers to find ways to achieve the allowable cost and still satisfy the firm’s cus1 Product-level target costing can be broken into three steps (see Exhibit 2). In the first step, the product-level target cost is established. This step consists of incorporating the capability of the firm and its suppliers into the allowable cost so that an achievable product-level target cost is established.

The second step consists of using value engineering (and other similar techniques) to identify ways to design the product so that it can be manufactured at its target cost. In the third step, the disciplining mechanisms of target costing are applied to help ensure that the product-level target cost is achieved. The disciplining mecha- Article 32. TARGET COSTING FOR NEW-PRODUCT DEVELOPMENT: PRODUCT-LEVEL TARGET COSTING thereof require that the firm must reduce costs if it is to maintain its desired level of profitability.The degree of cost reduction required to achieve the allowable cost is called the cost-reduction objective and is derived by subtracting the allowable cost from the current product cost: Cost-Reduction Objective = Current Cost–Allowable Cost The current cost is the cost of a new product if it were manufactured today using existing components or variants thereof. No cost-reduction activities are assumed in computing the current cost of the product. For the current cost to be meaningful, the components used in its estimation must be very similar to those that eventually will be used in the new product.
If the existing model uses a 1. 8-liter engine and the new model uses a 2. 0-liter one, for example, current cost would be estimated using the cost of the most similar 2. 0-liter engine currently produced by the firm. Because the allowable cost is derived from external conditions without consideration of the firm’s internal design and production capabilities, there is a risk that the allowable cost will not be achievable. In this case, to maintain the discipline of target costing, the firm must identify the achievable and unachievable parts of the cost-reduction objective.Analyzing the ability of the product designers and suppliers to remove costs from the product (see Exhibit 3) derives the achievable or target cost-reduction objective.
The process by which costs are removed from the product is called value engineering, and it depends heavily on an interactive relationship with the suppliers. The purpose of this relationship is to allow the suppliers to provide early estimates of the selling prices of their products and, when possible, insights into alternative design possibilities that would enable the firm to deliver the desired level of functionality and quality at reduced cost.The unachievable part of the cost-reduction objective (referred to in Exhibit 2) is called the strategic cost-reduction challenge. It identifies the profit shortfall that will occur when the designers are unable to achieve the allowable cost—a signal that the firm falls short of the capabilities demanded by competitive conditions. Typically, in a firm with a well-established target costing system, the strategic cost-reduction challenge will be small or nonexistent, and intense pressure will be brought on the design team to reduce it to zero.For the most capable firms, the achievable cost reduction for a product might exceed the cost-reduction objective. Such firms do not face a strategic cost-reduction challenge.
They can take advantage of their superior capabilities by reducing the selling price of the product to increase market share, by increasing product functionality while maintaining the targeted selling price, or by keeping both price and functionality at their targeted levels to earn higher profits. To maintain the discipline of target costing, the size of the strategic cost-reduction challenge must be managed carefully.A strategic cost-reduction challenge should reflect the true inability of the firm to match competitor capabilities. To ensure that the strategic cost-reduction challenge meets this requirement, the target cost-reduction objective must be set so that it is 2 nisms include progress monitoring and validation and the application of the cardinal rule of target costing: products whose manufacturing costs are above their target costs should not be launched. The monitoring and validation process helps ensure that the savings identified through value engineering are actually achieved.The application of the cardinal rule ensures that the discipline of target costing is maintained. When designers know that target cost violations lead to serious consequences, they are subjected to a real pressure to achieve the target costs.
SETTING THE PRODUCT-LEVEL TARGET COST In highly competitive markets, customers expect each generation of products to have higher value than that of their predecessors. Value can be increased by improving the quality or functionality of the firm’s products or by reducing their selling prices. Any of these improvements or some combinationANNUAL EDITIONS cost-reduction challenge, which creates a powerful pressure on the design team of the next generation of the product to be even more aggressive about cost reduction. In this way, the failure to achieve the allowable cost this time around is turned into a challenge for the future, not a permanent defeat. Second, allowable cost avoids weakening the cardinal rule, which applies only to target costs, not allowable costs. The process by which the strategic cost-reduction challenge is established must be highly disciplined.Otherwise it becomes a mechanism to reduce the effectiveness of target costing by setting target costs that are too easy to achieve.
In most firms, top management approves the strategic cost-reduction challenge before the product-level target cost can be set. Technically, the target cost of a product is the target selling price less the target profit margin plus the strategic cost-reduction challenge. Many firms blur the distinction between the allowable cost and the target cost, however, by stating that the target cost is determined by subtracting the target profit margin from the target selling price.This simplification makes it easier for people to understand the spirit of target costing as being price driven. Obviously, if the strategic cost-reduction challenge is zero, the allowable and target costs are identical. At some firms, even when the allowable cost is considered achievable, it is not referred to as a target cost until the process has reached the stage at which the major component target costs are established. The retention of the term “allowable costs” shows that top management is not willing to invoke the cardinal rule until it is convinced that the target cost is indeed achievable.
chievable only if the entire organization makes a significant effort to reach it. Consistently setting the target cost-reduction objective too high can lead to workforce burnout and, ultimately, the discipline of target costing will be lost. Conversely, if the target cost-reduction objective is consistently set too low, the firm will lose competitiveness, because new products will have excessively high target costs. Again referring to Exhibit 2, the product-level target cost is determined by subtracting the proposed product target costreduction objective from its current cost.That is: Product-Level Target Cost = Current Cost–Target Cost-Reduction Objective The strategic cost-reduction challenge is determined by subtracting the allowable cost from the target cost: Strategic Cost-Reduction Challenge = Target Cost –Allowable Cost The value of differentiating between the allowable cost and the target cost in this manner lies in the discipline that it creates. In most firms, the allowable cost will sometimes be too low to achieve, given the relative capabilities of the firm and its suppliers compared to competitors and their suppliers.Target costing systems derive their strength from the application of the cardinal rule, “The target cost must never be exceeded.
” If a firm continuously sets over-aggressive target costs, violations of the cardinal rule would be common and the discipline of the target costing process would be lost. Even worse, if the allowable cost is known to be unachievable, the design team might give up even trying to achieve it, and effective cost reduction during product design would cease. To avoid this motivation problem, firms frequently set target costs higher than the allowable costs.These target costs are designed to be achievable but only with considerable effort. They allow the cardinal rule to be maintained for almost every product. Consequently, the distinction between allowable and productlevel target costs plays two roles. First, it identifies the strategic 3 ACHIEVING THE PRODUCT-LEVEL TARGET COST Once planners have identified the target cost-reduction objective, the second stage of product-level target costing begins— achieving it (see Exhibit 4).
Several engineering techniques can help product designers find ways to reduce the costs of products.They include value engineering, design for manufacture and assembly, and quality function deployment. Value engineering, the most important of the three techniques, has the primary objective of maximizing customer value—it tries to increase functionality and quality while at the same time reducing cost. In contrast, DFMA focuses on reducing costs by making products easier to assemble or manufacture, while holding functionality at specified levels. Finally, QFD provides a structured approach to ensure that customer requirements are not compromised during the design process.Target costing and value engineering can be viewed as concurrent activities, as can kaizen costing and VA. The application of value engineering begins with the conceptualization of the product and continues through the design process until the product is released to manufacturing.
Even then the process continues, but under the name value analysis (VA). Article 32. TARGET COSTING FOR NEW-PRODUCT DEVELOPMENT: PRODUCT-LEVEL TARGET COSTING The difference between VA and VE is not in the approach taken or the tools used but the point at which they occur in the life cycle of the product.VE is used during the product design and development stages, and VA is used for the manufacturing stage and for purchasing parts. For this reason, target costing and value engineering can be viewed as concurrent activities, as can kaizen costing and VA. It would be wrong to view VE as just another cost-reduction program. VE is primarily about product functions and only secondarily about cost.
The motivating force behind VE is to ensure that the product achieves its basic function in a way that satisfies the customer at an acceptable cost.Consequently, VE programs are the domain of the product engineer, not the accountant. bility of the existing functions. Second-look VE is applied during the last half of the planning stage and the first half of the development and product preparation stage. The objective of second-look VE, unlike that of zero- and first-look VE, is to improve the value and functionality of existing components, not create new ones. Consequently, the scale of changes is much smaller than for zero- and first-look VE. Comparative applications of VE consist of tearing down other products to identify new ways to reduce costs.
We define tear down as “a comparative VE method through visual observation of disassembled equipment, parts, and data arranged in a manner convenient for such observation. ” Numerous approaches to tear down exist. The six dominant techniques are: 1. 2. 3. 4. 5.
6. Dynamic. Cost. Material. Static. Process. Matrix tear down.
VE Techniques The VE techniques can be broken into three major categories: 1. Direct application of VE principles to the product. 2. Tear down approaches using comparative VE. 3. Miscellaneous VE. VE can be applied directly to proposed products at different stages of the product design process.
These different approaches are known as “looks. ” Zero-look VE is the application of VE principles at the concept proposal stage, the earliest stage in the design process. Its objective is to introduce new forms of functionality that did not previously exist. First-look VE focuses on the major elements of the product design and is defined as developing new products from concepts. The objective is to enhance functionality of the product by improving the capa4 The first three methods are designed to reduce a product’s direct manufacturing costs.The next three are intended to reduce the investment required to manufacture the product through increased productivity. There are at least four miscellaneous cost-reduction techniques: 1.
2. 3. 4. The checklist method. The one-day cost-reduction meeting. Mini VE. The VE reliability program.
ANNUAL EDITIONS Checklists The checklist method is used to identify a product’s cost factors and to suggest ways to reduce costs. The checklist consists of a number of questions designed to guide the firm’s cost-reduction activities by discovering cost-reduction opportunities.Checklists help ensure exploration of all possible avenues for cost reduction. One-day cost-reduction meetings are designed to improve the efficiency of the entire cost-reduction process, including VE and tear down methods. Participants from engineering, production, cost, and sales are expected to come up with ideas for new costreduction possibilities. The meetings are a way to overcome limitations in the approval process used for most cost-reduction proposals. The approval process entails circulating written proposals to all involved parties, who indicate acceptance by signing off on them.
Unfortunately, this approach severely reduces the exchange of information and modification of ideas. At the oneday meetings, presentation of the results of various tear-down programs helps initiate discussions. production/sales-preparation stage, and the production/salespreparation stage. DISCIPLINING THE PRODUCT-LEVEL TARGET COSTING PROCESS Disciplining the product-level target costing process begins with monitoring and validating the progress of the design engineers toward reaching the cost-reduction objective.It is at this stage in the process that the cardinal rule of target costing is applied. Only when getting the product to market is so imperative that cost is of secondary consideration should the cardinal rule be violated. Finally, when the product is released for mass production and its actual cost of manufacturing can be measured, steps sometimes have to be taken to reduce those costs to the target level.
Once the target cost-reduction objective has been established, the process of designing the product so that it can be manufactured at its target cost can commence.The discipline of target costing requires that the chief engineer and his or her superiors continuously monitor and validate that the progress the design engineers are making toward this objective. This monitoring ensures that corrective actions can be taken as easily as possible and that the cardinal rule will not be broken. Some firms define an as-if cost at this point in the development process. The as-if cost reflects cost-reduction opportunities identified when the previous generation of the product was being designed or manufactured. In most cases, the as-if cost is above the target cost of the new product but below its current cost.The additional cost that must be achieved is defined as the difference between the target cost and as-if cost.
As the design process proceeds and costs are removed from the major functions, the estimated manufacturing cost gradually 5 Mini VE and VE Reliability Mini VE is a simplified approach to second-look VE. It is applied to specific areas of a part or to very small, inexpensive parts. Mini VE is applied during the development and product preparation stages, the development and production-sales preparation stage, and the production-sales preparation stage.A VE reliability program is designed to ensure that the most appropriate form of VE is applied to each problem. Essentially, it is a “quality of VE” program. If a completely new product design is required, for example, applying second-look VE is not appropriate. Like mini VE, the program is applied during the development and product-preparation stages, the development and Article 32.
TARGET COSTING FOR NEW-PRODUCT DEVELOPMENT: PRODUCT-LEVEL TARGET COSTING falls toward the target cost. Many firms call the updated estimate the drifting cost (see Exhibit 5).Thus, the product design process starts with an as-if cost higher than the target cost and across the design process reduces the expected or drifting cost until it reaches the target cost. At most firms, once the drifting cost equals the target cost, cost-reduction activities cease. There is no reward for achieving greater savings than those required to achieve the target cost. The engineers’ time is better spent on getting the drifting cost of other products to equal their target costs. estrictive, because the product under review causes additional revenues to be generated beyond those generated by the product itself.
Such products include flagship products that create high visibility for the firm, products that introduce the next generation of technology, or products that fill a critical gap in the product line. For such products, the target cost is often relaxed to allow for the “hidden” revenues. However typically, cost reduction pressures are still applied during the early stages of manufacturing until the target cost is achieved.For the products that feature a variety of options, the final fine-tuning of the target cost is often achieved by specifying the features that the standard product will contain. If the manufacturing cost is too high, for example, one or more “standard” features might be converted to “options” that the customer now has to pay an additional amount to obtain. Converting features to options both reduces the cost of manufacturing the standard product, allowing the target cost to be achieved, and increases the selling price of the originally specified product, allowing the target profit to be achieved.Obviously, the reduction in the functionality of the standard variant must be subjected to market analysis to ensure that it is acceptable in the eyes of the customer at the target selling price.
An example might include the conversion of side air bags from a standard feature to an optional one. This reduction in functionality will be acceptable only if competitive offerings treat side air bags in the same way. This fine-tuning process gives firms more leeway to achieve target costs set several years earlier. Similarly, the actual selling price is not fixed until just before the product is launched.Delaying these two critical decisions significantly reduces the uncertainty that a firm, in a multiyear product development process, faces with respect to achieving target costs. At most firms, once the drifting cost equals the target cost, cost-reduction activities cease. The process of comparing the drifting cost to the target cost continues throughout the design process.
Often when the product is ready to be released to production, for example, planners undertake a final review of the feasibility of the target cost.If the estimated production cost is too high, the design is subjected to additional analysis. Frequently, relatively minor changes in the product’s design are all that is needed to reduce the cost estimate to the target cost level. As long as these changes do not alter the product’s price point, the product’s functionality is reduced and the product is submitted for approval. If the design changes will reduce the price point, the product is typically returned to the research and development group for design.The cardinal rule of target costing plays an important role in maintaining the discipline of target costing. Great care is taken to ensure that the sum of the component target costs does not exceed the target cost of the product.
Often, an increase in the cost of one component causes the engineers to explore ways to reduce the costs of other components by an equivalent amount. In addition, to help ensure enforcement of the cardinal rule, most firms have a policy against launching unprofitable or sub-profitable products.When the product design phase is over, the product moves to manufacturing. As part of this transition phase, the target cost is compared to the standard cost of production. If the standard cost is higher, usually the firm takes steps to reduce manufacturing costs to the target level. Often, if the standard cost is at or below the target cost, the design of the product is frozen for the rest of its life, and no further actions, other than general kaizen, are taken to reduce the cost of the new product.As with any rule, the cardinal rule occasionally is broken.
It is violated when a broader analysis indicates that breaking it will be beneficial for the firm. Target costing, by its nature, takes a single-product orientation. Sometimes, this view is too NEXT STEPS One of the key constituents of the product-level target cost is the target costs of all of the outsourced components. These costs are the focus of the next step in the target costing process, component-level target costing.It is in this portion of the target costing process that the discipline of target costing is extended to the supplier base of the firm. Journal of Cost Management board member ROBIN COOPER is a professor in the practice of cost management at Roberto C. Goizueta Business School at Emory University and can be reached at (404) 7276679.
REGINE SLAGMULDER is associate professor of accounting and control at INSEAD France. She can be reached at regine. slagmulder @insead. edu. From Journal of Cost Management, July/August 2002, pp. 5-12. © 2002 by the Journal of Cost Management.

Which Do You Think Contributes More to Personal Happiness

How one responds to a situation is a huge factor that contributes to personal happiness, for the state of happiness is achieved from accomplishing a certain goal. In the 18th century, the 13 colonies was in feud with its mother country, Britain; refusing to pay taxes without representation. George Washington, the General of the Continental Army, was hopeless and at the brink of surrender.
Yet through the motivational articles such as Paine’s Common Sense,” the establishment of the Declaration of Independence, and the arrival of the French, Washington’s morale was boosted. At Yorktown, the Americans and French were able to force Cornwallis to surrender, and the war was finally over. Washing successfully accomplished his goal of leading the colonies to victory. This accomplishment of gaining independence not only gave the 13 colonies happiness, but mainly Washington as well.
As a result of this happiness, the colonies were able to unite into the United States of America. One’s response in a situation definitely supports personal happiness. In the midst of my freshman year in high school, I was asked to help a friend who was struggling in the subject of Biology. After long hours throughout the week, he was finally able to interpret the information. The aftermath was successful and through my teachings, I understood the importance of happiness.

Happiness allows me to feel not necessarily a higher being, rather like an older brother who is helping. This enlightenment taught me that happiness can only be achieved by how one reacts to a certain event. In this particular case, because I helped a friend understand the subject of Biology, I fulfilled a good deed, and therefore rewarded with happiness. Although society always seeks for happiness, it not a feeling that can be forced, rather obtain through good deeds and accomplishments.

advanced Pharmacology


As a nurse practitioner, you prescribe medications for your patients. You make an error when prescribing medication to a 5-year-old patient. Rather than dosing him appropriately, you prescribe a dose suitable for an adult.

To Prepare

Review the Resources for this module and consider the principles of pharmacokinetics and pharmacodynamics.
Reflect on your experiences, observations, and/or clinical practices from the last 5 years and think about how pharmacokinetic and pharmacodynamic factors altered his or her anticipated response to a drug.
Consider factors that might have influenced the patient’s pharmacokinetic and pharmacodynamic processes, such as genetics (including pharmacogenetics), gender, ethnicity, age, behavior, and/or possible pathophysiological changes due to disease.
Think about a personalized plan of care based on these influencing factors and patient history in your case study.

By Day 3 of Week 1
Post a description of the patient case from your experiences, observations, and/or clinical practice from the last 5 years. Then, describe factors that might have influenced pharmacokinetic and pharmacodynamic processes of the patient you identified. Finally, explain details of the personalized plan of care that you would develop based on influencing factors and patient history in your case. Be specific and provide examples.

Reform Movements

Elizabeth Cady Stanton (1815-1902) was a social activist and leader in the early women’s rights movement.  In 1840, when she was a young newlywed, Stanton attended the World Anti-Slavery Society convention in London, which her husband was attending as a delegate.  It was there that Stanton met Lucretia Mott (1793-1880).  At the convention the women delegates from the United States were denied seats after some of the male U.S. delegates vehemently objected.  Mott, in response, demanded that she be treated with the same respect accorded any man—white or black.  During these heated discussions, Stanton marveled at the way Mott, a woman of forty-seven, held her own in the argument, “skillfully parried all their attacks…turning the laugh on them, and then by her earnestness and dignity silencing their ridicule and jeers.”

Following the Civil War, Stanton refused to support passage of the 15th amendment, which gave voting rights to black men but not to women.  She argued that the amendment essentially was based on the fallacy of false dilemma—either black men get the vote (but not women) or only white men can vote.  Instead she pointed out that there was a third option: both men and women should have the right to vote.  Unfortunately, her line of argument and her challenges to traditional beliefs about the role of women were ridiculed.  Although black men received the vote in 1870 with passage of the 15th amendment, it would be another 50 years before women were given the right to vote in the United States.  Nevertheless, Stanton’s persistence and refusal to back down in her fight for equal opportunity for women paved the way for the final passage of this amendment so that other women could achieve their life plans of equal participation in the political life of the country.

Section A: Elizabeth Cady Stanton had close friends such as Lucretia Mott and Susan B. Anthony in her fight for women’s rights.  Discuss ways in which having a support network of people who are skilled critical thinkers can enhance your ability not to use or fall for faulty reasoning.  Discuss ways in which you do, or could serve as a critical-thinking mentor to others. 

Section B: Why did middle-class women activists gravitate to the reform movements (antislavery, temperance, dress styles, prison conditions, peace, education, communitarianism)?  How were the reform movements excellent training grounds from which to promote and pursue a women’s rights movement? Why was the World Anti-Slavery Society Convention of 1840 the birthplace of the women’s rights movement?  Please provide 2-3 specific quotes from your Howard Zinn Readings.

Section C: What do you feel Douglass is trying to convey in his 4th of July Speech?  How are Douglass and Sojourner Truth’s experiences different with regard to other reform movements?  Provide specific examples from your readings and videos.

Leased Line

Leased Line:- A leased line is a private high-performance circuit leased by a common carrier between a customer and a service provider’s network. It is rented on an annual basis and usually carries voice and data or both. Leased lines are mostly used for either internet access (Internet Leased Line) or used privately between two customer sites (Point to Point Leased Line). Unlike a dial-up connection, a leased line is always active. Similarly unlike broadband, a leased line is not contended or shared and delivers dedicated guaranteed bandwidth straight to the internet backbone.
Customers pay a premium for a leased line and it is supported by a comprehensive Service-Level Agreement (SLA) with a guaranteed fix time and a compensation clause. Otherwise referred to as a point to point, private circuit, private line or dedicated access. Leased Line History: Leased lines services (or private line services) became digital in the 1970s with the conversion of the Bell backbone network from analog to digital circuits.
This conversion allowed AT&T to offer Dataphone Digital Services (later re-branded digital data services) that started the deployment of ISDN and T1 lines to customer premises to connect. With the extension of digital services in the 1980s leased lines were used to connect customer premises to Frame Relay or ATM networks. Access data rates increased from the original T1 option up to T3 circuits. Access data rates also evolved dramatically to speeds of up to 10Gbit/s in the early 21st century with the Internet boom and increased offering in long-haul optical networks or Metropolitan Area Networks.


In his 1974 book, Anarchy, State and Utopia, Robert Nozick raises the following thought experiment:
“Suppose there were an experience machine that would give you any experience you desired.  Superduper neuropsychologists could stimulate your brain so that you would think and feel you were writing a great novel, or making a friend, or reading an interesting book.  All the time you would be floating in a tank, with electrodes attached to your brain.  Should you plug into this machine for life, preprogramming your life’s experiences?  If you are worried about missing out on desirable experiences, we can suppose that business enterprises have researched thoroughly the lives of many others.  You can pick and choose from their large library or smorgasbord of such experiences, selecting your life’s experiences for, say, the next two years.  After two years have passed, you will have ten minutes or ten hours out of the tank, to select the experiences for your next two years.   Of course, while in the tank you won’t know that you’re there; you’ll think it’s all actually happening.  Others can also plug in to have the experiences they want, so there’s no need to stay unplugged to serve them.  (Ignore problems such as who will service the machines if everyone plugs in.)  Would you plug in?  What else can matter to us, other than how our lives feel from the inside?”  
Philosopher Shelly Kagan does a nice job of discussing the thought experiment in the following video  (The thought experiment discussion begins about 1 minute in.):

Compose an essay of no more than 1500 words on ONE of the following topics:
(Option A) Consider Robert Nozick’s thought experiment of the experience machine. Compose an essay in which you address the question of whether it matters that you spend your entire life in the machine. To answer this question, consider a life that you consider worth living. Does it matter whether things actually happen? Or is it sufficient to merely have the experience.  
Be sure to focus your essay around the reasons you give in favor of your position (your thesis can even be a blend of yes and no, if you like). State whether your argument is inductive or deductive, and say why. Finally, consider at least one objection to your view, and respond to it. (NB1: You may wish to discuss the conditions under which you would use the machine, and use the appropriate argument forms, if necessary.)  (NB2: Importantly, this is NOT an essay about Hedonism.  The issue here is not whether Hedonism is true or false, or what scholars think about this thought experiment.  The central issue of the assignment is: WHAT DO YOU THINK ABOUT IT?  WHAT REASONS WOULD YOU GIVE FOR OR AGAINST A LIFE IN THE MACHINE?)
(Option B) Robert Nozick argues that he would not sign up to use an experience machine for life.   While this possibility is remote for us, it could be argued that we have many technologies which function as local experience machines.  Compose an essay or dialogue (approximately 1500 words) in which you address the following issue:
Consider a type of technology that you currently use, and address to what extent this technology is analogous to the experience machine in Robert Nozick’s essay.  Be sure to focus on features that are similar as well as different.  Next, address whether you agree with Nozick’s position by considering whether his argument provides reasons why you yourself might wish to limit the amount of time you spend using your chosen technology.  (For example, if you agree with Nozick, does this mean that you should give up your Netflix account?)  Be sure to clearly state your own reasons.  Finally, consider an objection that someone might raise against your viewpoint, and respond to the objection.
Essays are to be typed, using standard fonts and margins (e.g. 12 point font, 1 inch margins) Remember: concision is a virtue!
The citation format is your choice.  Just keep it consistent. 

Essay on I am a Leader

In order to talk about what I see as the main secret of a leader, I would like to start with my vision of the qualities that together give a leadership character.
For a start – sociability. A leader without a team (even if this team consists entirely of one himself) is nobody. He does not have people with whom he will work, and whom he will lead during his leadership. And in order for the team to work like a clock, it is necessary to achieve full trust and respect from each of its members. This can be done in a simple way – by listening (and hearing what is important), talking, observing. As a result of which, revealing what a person needs and what to offer him in order to arrange himself.
Moreover, this should not be the so-called “purchase of location”, and this should be taken into account, because the line between “give the person what he asks for the sake of gaining his confidence” and “give the person what he wants for the sake of obtaining his submission ”Is very small. The “I am to you – you to me” scheme should not always be present, this also needs to be understood.

What I am talking about can be clearly illustrated with volleyball as an example. In this game, there is such a position as a binder. A member of the team located at this place plays the ball, passing passes to teammates and setting the course of the game. In order to understand at what moment and which pass to give to which team member, the binder must know each of the people standing on the field, know or see their preferences at the moment.
For this, in tandem, the team-binder must have unquestioning trust. It is possible to create these conditions only with the communication of the binder with each player, if not outside the field, then on it for sure. Moreover, communication should be both verbal (questions “how would you like to make a pass?”, “Was it convenient?”, Reassurance, praise) and non-verbal (passes in themselves, observation of players, encouraging smiles and actions). The best binder is the one who can achieve the desired result in working with the team a few minutes after the start of the game. And it will not depend on the degree of his abilities in the game itself, but on the ability to talk, hear and observe – yes.
Exactly the same actions should be carried out by any leader, only in a variant adapted to the situation. Then the support is provided.
Next is responsibility. Both the ability to take on and the ability to drag on yourself. If a person cannot be responsible for the actions of himself and the team, if he quits work halfway, then which of them is the leader.
I would say that primary is the ability to bear responsibility for what is done to the end.
Taking the same volleyball and the simplest clear example. Suppose there is player A. He, as the most adequate and encouraging in the team, is going to be appointed captain. Player A refuses. He is guided by one case from the past, when the team changed the coach and started a grueling training. Then player A was very weak in spirit and could not hold out for long after leaving the team. In the future, he returns, but is not ready to take up the position of captain, as he knows for sure that he can give up responsibility for the team halfway, having encountered certain difficulties. We cannot judge whether player A is acting correctly or not in this situation, we can only agree with his decision and accept that he knows himself better than others. Speaking personally of my opinion, I will agree with player A, because if you suspect that you will not be able to convey the responsibility given to you to the end, then you should not take it.
The second, but no less important sub-item is the assumption of responsibility both for oneself and for one’s team. Becoming a leader for people, you must clearly understand that by covering them with your wing of influence, you also take part of the responsibility for any of their failures, even if you do not belong to him in any way, and your failures grow doubly, because if the team is responsible if you alone are fully or individually, then you are responsible to each member of the team or to the team as a whole.
Continuing with illustrative volleyball examples, let’s take a situation where the team captain falls off with poisoning before an important match. Everything would be fine, but the poisoning happened due to the fact that yesterday at twelve in the night the captain, succumbing to his whim, ate dumplings, which had been lying in the freezer for many months. “There will be nothing from once,” he recalls in the morning his nightly thoughts, when he was completely twisted out of his stomach pain. This day the team loses an important match. First of all, due to the loss of support in the form of a leader behind their backs. Also, the libero – a member of the team whose goal is to beat off difficult serveings on the back line – did not sleep all night, because of which he could not concentrate and constantly missed the balls. Both for his mistake and for the mistake of a member of his team, the captain will have to answer to the coach, taking responsibility for the situation.
The next one is to talk about self-confidence and the ability to stay strong and calm in front of people, even when everything has already collapsed. A person always subconsciously feels the uncertainty of another person, so the ability to remain calm and balanced in absolutely any situation is incredibly important. After all, if even the leader is worried or doesn’t know something, then what can we say about the “simple member of the team”, how we subconsciously characterize ourselves, being in someone’s submission.
Taking the same situation that we took in the previous example. The first thing that the captain sees, returning from the coach – a libero knocked out of a rut. The captain is also disappointed and also terribly ashamed, but if he shows this, the team will fall apart. Then he settles in, makes himself smile and enters the hall. He sees how upset the team members are and begins to make an encouraging speech that this is not the last game, and everyone is mistaken. Not to say that he believed in it. Not to say that his teammates believed in this. But the captain speaks so enthusiastically, so confidently that he gradually convinces himself and others that everything is fine. Shake his voice for even a second – everything is gone. Thus, the mood of the captain determines the mood of the whole team. And just like that, the nature of the captain determines the nature of the team. The ability to keep oneself in check, exposing only the best sides is the success of a leader in this direction.
Another important quality is maintaining respect for oneself and others. If people in teams do not respect the leader, then his work cannot be done, because if people do not have respect for you, then they will not be able to listen, because they will not take what is said seriously. In the same way, one must understand that respect must be mutual. If a leader does not respect every member of his team, then what kind of leader is he?
Take another team and another captain. He is, of course, the best player on the field and listen to him, but out of the game he could not get respect. He did not show his definite situational superiority, did not give them a reason. He skips games that he considers uninteresting, names his own players, humiliates, is late, puts them on the table. In response, from his team, he receives what he gives them – a complete lack of respect. As he does not respect his people, so they do not respect him. And, of course, no one will listen to him, and he will not be able to cheer anyone up, and talk seriously when it is required. Just because he does not respect the team, and the team does not respect him.
And the last thing I would like to mention today is independence. This is also a very important quality of a leader. The leader must always do that work himself. Which falls on his shoulders, and sometimes even help members of his team do something. An important clarification is that you cannot do all the work for another person, but when he is confused or does not know what to do, the leader is obliged to take over a part and explain how to do it in the future. Sometimes a leader has to be independent in taking some actions – making important calls, writing and talking with different people, going to institutions, filling out papers, negotiating anything, and so on.
For example, a coach in a volleyball (and any other) team is also, although formal, but still a leader. He needs to negotiate training matches, competitions, fill out paperwork, find vehicles. He also, of course, teaches them, helps to understand what exactly needs to be done in a particular situation on the field. Sometimes he has to help the captain, because he can’t always cope with the task, so, it happens, the coach takes on his role. If there wasn’t a coach, and he wouldn’t do all this, then who would do it?
Of course, these are not all the qualities of a leader that exist, but, in my personal opinion, these are the main character traits that should definitely be present in every leader. Otherwise, he will not be able to cope with himself and the team.
So, I believe that the secret of a leader is the proper use, study, reinforcement and development of qualities that make him a leader. If you develop your abilities in these areas, then you almost automatically become a good leader. The most interesting thing is that there is a basis for these character traits in everyone, the main thing is simply to work on yourself. Developing the qualities inherent in us by nature, everyone can grow a leader in himself. I do this, developing every day. And you?

Business Db 400-700 words

Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. 
The Chairwoman of Board of Directors has selected you to lead the effort to create an international internship program for your organization. You will be leading a cross-cultural virtual team, including the vice president (VP) of human resources and department heads from all areas of the organization from its locations throughout the United States. The team is responsible for developing a 3-month summer program for 50 international interns. The international interns will be selected from university programs in their home country, will travel to the organization’s U.S. locations, will live and work in the United States, and then may have the potential to be offered a permanent position with the organization.
Using the Bloomberg Businessweek B-school connection program, research global organizational culture and respond to the following questions:

What best practices do you recommend for leading a virtual cross-cultural team? What is the difference between leading a U.S.-based virtual cross-cultural team and a global virtual cross-cultural team?
What are the legal or regulatory factors that the team needs to consider for the interns to be employed in the United States?
How will the organization onboard the interns and introduce them to U.S. culture? What types of activities can be hosted for the interns to celebrate their diversity?
What are the benefits of the international internship program to the interns and to the organization?

Provide a reference list at the end of your primary task response of at least 5 articles from Bloomberg Businessweek B-school connection program, and include in-text citations for the articles in APA format.

Causes and Consequences of Public Policy

 Individual Project:
Models are only useful if they help us identify key aspects of policy, mimic reality, communicate concepts in a meaningful way, give means by which they can be tested, and hypothesize about the causes and consequences of public policy.

A. Order and Simplify Reality 
Models need to strike a balance between simplifying reality in order to analyze political life and the danger of oversimplifying. 

B. Identify What Is Significant 
A difficult task in applying any model is determining what aspects of public policy must be included. 

C. Be Congruent with Reality 
While models are only concepts, they must have a relationship with reality.  

D. Provide Meaningful Communication 
A model is only meaningful if it is based on ideas for which some consensus exists. 

E. Direct Inquiry and Research 
Any model must be testable and capable of being validated.  
Suggest Explanations Models must go beyond the description of public policy to explication
Using at least 400 words, write a paper describing 
(1) Do all policy models share certain limitations?
 (2) What are these limitations? (list limitations for at least 3 models we discussed from chapters 1-6)