Archive for January, 2007

Design…Why it Matters

Tuesday, January 30th, 2007

by Dean Whittaker

Why should we care about design? An awareness of design is a right-brain-directed function that lets us conceptualize and innovate new products and experiences. We experience design every day, not only in the products we use, but also in the process and procedures we share. Design differentiates in a world of abundance. It separates the boring and humdrum from the exceptional. In a world that overflows with so many choices that we have a $17 billion storage locker industry to hold our “extra” stuff, how can products stand out and be heard, seen or felt?

To remain relevant in a world of abundance, one must continually innovate and create the new. This can be an innovation in the banking industry such as on-line banking or product changes in the latest pocket digital camera. But innovate we must, or we run the risk of our product becoming another commodity in the world economy as we compete with China and India to be the low-cost provider.

In A Whole New Mind , Daniel Pink describes six right-brain competencies that we need to add to our portfolio, including left-brain analytical, sequential, textual skills. One of these is design. Design is described as consisting of function and significance . Function means the process, experience or product needs to perform its intended purpose; significance means it must have value to the person experiencing the design.

Recently I purchased a roller-ball pen. I paid $64 for it. Now, why would I pay $64 dollars for a pen when a $1.39 pen would perform the same function? No, it is not because I’m trying to support the local economy (although that is partially the case). It is because this pen has significance to me. It is a Frank Lloyd Wright design pen. Clearly, I value the significance of the pen in addition to its functionality. The profit margin on this pen is not in its function, but rather in its significance, which came about through design.

Design helps us differentiate our organizations, products, services and ourselves in a world that tends to turn everything into a commodity. We design our lives by the choices we make, the things we buy and create. We strive for meaning and significance in a world of overwhelming abundance.

One local economic development organization is initiating “high-design” awareness in local businesses through the creation of a Design Council. The Council helps major design schools from around the country collaborate with local firms through an internship program. In addition, the Council has hosted local firms to demonstrate the use of design in their products.

On a more personal level, how do we re-awaken the sense of design lurking in the right sides of our brains? Daniel Pink suggests keeping a design journal in which we note the designs that attract our attention in our daily lives. He recommends several other ways to increase our design awareness, such as choosing an annoying product and offering the producer ideas for improvement; reading design magazines such as Dwell, How, iD, Metropolis, O Magazine, Print and Real Simple, and visiting design museums such as the Eames House in Los Angeles. By being more observant of the role that design plays in our everyday lives, we begin to develop a sense of design and how it impacts all of us.

From an economic development point of view, the following quote from Pink summarizes why design matters: “Design is a high-concept aptitude that is difficult to outsource or automate – and that increasingly confers a competitive advantage in business”

Shifting Gears

Tuesday, January 30th, 2007

by Jami Miedema

It’s old news that employment has shifted and continues to shift from manufacturing jobs to service jobs. During the 1980s, service jobs surpassed manufacturing jobs in terms of U.S. employment to make up more than 70% of the economy and become the leading sector contributing to the country’s GDP today.

(Source: Stevenson, W. J. (2007) Operations management (9th Ed.) McGraw-Hill Irwin: New York )

So why has this shift occurred? What does this mean for workers in the manufacturing industry? Should we be concerned?

The shift from manufacturing to service jobs is caused by many factors, the two most important being increased productivity and outsourcing. With increasing technology, many manufacturing jobs have been replaced by machines or robots, which are able to increase output without the need for more workers. Also, outsourcing helps companies cut costs by sending tasks overseas to low-cost countries.

Although last year’s unemployment rate was at a low of 4.6% and 1.8 million jobs were added to the economy, debate continues about whether or not these newly created jobs will leave displaced manufacturing workers better off when they pursue a new job. On the one hand, last year the hospitality and leisure industry added approximately 353,000 jobs, averaging $9.60 an hour. But the average manufacturing job in 2006 paid $16.82. This outlook is bleak for manufacturing workers who may have to start out at the bottom, making far less money and foregoing benefits. On the other hand, there is promise of growth in jobs that pay higher-than-average wages. For instance, 153,000 financial jobs were created last year, averaging $18.79 per hour. Even so, workers will need training to compete for the higher-paying jobs, making it difficult for those workers to get back on their feet. If displaced manufacturing workers are worse off in their new service jobs, this may mean a lower standard of living for them and their families. Even though the debate is unsettled, this issue should be of concern (Schoen).

Source:

Schoen, J. W. (2007, January 5). “Latest jobs report is a tale of two sectors.” MSNBC Interactive . Retrieved January 8, 2007 from http://www.msnbc.msn.com/id/16457835/.html

Perspectives Merge: The Probability of a Federal Minimum Wage Increase

Tuesday, January 30th, 2007

by Rebecca Rooy

It’s all about perspective.

The House discussed a bipartisan-supported bill today to introduce a federal minimum wage increase. For much of the nation, particularly the 5.6 million people who support themselves and their families on a minimum wage income, it is long overdue. It has been ten years since a minimum wage increase has been seriously considered in Congress. The current federal wage of $5.15 an hour has been in effect since 1997, although many attempts and bill presentations have been made since that time. However, this House bill finally falls in majority favor. The current bill pushes for a $2.10 increase over 26 months through a series of steps.

The bill is expected to pass on the House level, and will proceed to the Senate shortly thereafter. The Senate is projected to examine a compensation of sorts for the small business community. The health of small businesses is always a strong concern for Congress, and this wage increase in accordance to tax compensation is contingent on that perspective.

Economists and politicians seem to have an exhaustively continuous debate concerning the effects of minimum wage. However, after a study in October of 2006, a group of Nobel Prize winning economists declared a minimum wage increase was in order. The economists claimed that the wage increase would not hinder employment growth as has been projected by some. When adjusting the current wage of $5.15 an hour for inflation, the study shows the minimum wage is the lowest it has been since 1951.

At this point, 28 states already offer a higher minimum wage than the federal minimum wage. It seems that the federal government is taking heed.

For me, it’s about supporting the working class. I hail from a county that has been deemed the second poorest in the state of Michigan . A large part of its population depends on the government’s awareness of the incessant struggle between the cost of living and the minimum wage. I have learned about the effects of a living wage and the benefits of valuing a worker. Since the majority of minimum-wage workers are women or minorities, it is increasingly important to show this type of continued support. It’s all about merging the business perspective and the living person perspective: this bill will set the course to reinstate the significance of compassion through business to the workers who drive the country to its true success.

Chipman, Kim. “House to Lift Minimum Wage; Senate May Add Tax Breaks.” Bloomberg. C-Span News. 10 January 2007 . <www.bloomberg.com>.

“’100 Hours’: House Dems Eye Minimum Wage Hike.” CNN News. 10 January 2007 . <www.cnn.com>.