Re: Deadly Disease # 6

["John Hunter" <managementimprovement@gmail.com>]

In addition to the deadly disease of excessive health care costs, I
think there is a systemic failure to think long term - specifically on
costs.  Promises are made that will cost companies large amounts of
money in the future, but people only pay attention to short term costs
shown on the accounting statements (the failure to capture these costs
on accounting statements is another sign of failure).

It seems to me if costs were properly allocated (so 30 years ago, for
example GM, Ford... put sufficient funds away to cover the expenses
they were accruing for promises to employees decades later it should
not have played out as it is).  No question health care costs in the
USA are far too high but short term thinking has also caught up with
many companies (with retire health care and pension costs).  The
companies might not have been able to predict exactly how high health
care costs have risen, but they should have known they were going to
continue to grow at high rates (certainly in 1980 this was not hard
for anyone to see).

There are some good stories we should not overlook.  I don't frequent
Starbucks, but they give all employees (even part time) health care (I
think with no cost now - maybe just no cost if you are full time... I
am not quite sure?  They are likely to change that soon, to having
some portion paid by the employee due to ever rising costs.  Costo,
Target and Trader Joe's also offer pretty great benefits, I believe,
compared to others in their industry - not all companies go for the
"pay the CEO and his golfing buddies millions" and everyone else next
to nothing.  Though that does seem to be the way most companies
"think."

Some links to more thoughts on these ideas:

 http://management.curiouscatblog.net/2006/12/16/starbucks-respect-for-workers-and-health-care/
 http://management.curiouscatblog.net/2005/01/11/usa-health-care-costs-reach-153-of-gdp-the-highest-percentage-ever/
 http://curiouscat.net/cool/excessivehealthcarecosts.cfm
 http://management.curiouscatblog.net/2006/06/22/more-on-obscene-ceo-pay/

Happy Holidays,

        John Hunter
        www.johnhunter.com

On 12/14/06, TQNELSON@aol.com <TQNELSON@aol.com> wrote:
> The news media continues to document the continuing trend of American
> "management" to replace concern for/focus on people with economic goals. This is
> Deming's Deadly Disease # 6 on excessive medical costs and, again, illustrates
> the growing American crisis/need to adopt the Deming approach to in our
> society. Another story illustrating this can be found at:
> http://www.sacbee.com/103/story/92279.html
>
>
> Del  Nelson