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BRIEFLY:
Illinois wins FutureGen
Mattoon, Illinois, will be the home of a major government and industry research project to learn ways to burn coal without emitting gases.
FutureGen will be built on several hundred acres near Mattoon. The $1.8 billion
project is expected to employ several hundred construction workers and create an estimated 150 permanent jobs.
The FutureGen project will be funded by a combination of public and private funds, although nearly three-fourths of the funding will come from Washington through appropriations to the Energy Department. The technologies developed by the project could help rejuvenate Illinois' coal industry. Illinois coal is known for its high sulfur content which currently makes it less desirable of a fuel source for generation of electricity.
In making the announcement on December 18, FutureGen Alliance president Michael Mudd said site selection was made based on scientific and technical benefits available at the central Illinois location. Construction is expected to begin in 2010 with operations commencing in 2013. In the meantime, additional environmental studies and concerns about the project's costs will be addressed by the coalition before the federal government adds its blessing to the selection.
Mattoon was selected over nearby Tuscola and two more sites in Texas.
Hudson Employment Index for Chicago
After several months of steady increases, worker confidence in Chicago plummeted in November. The city's Hudson Employment IndexSM fell 16.6 points to 80.8. The Windy City's latest measure of worker confidence is dramatically lower than last November's 99.6. The national Index plunged 8.9 points to 91.9, the lowest reading on record.
The Hudson Employment Index for Chicago workers showed: There was a seven-point jump to 44 percent in workers who said their finances were getting worse. Also, 23 percent of workers rated their finances as "poor," a seven-point rise from October.
Fewer workers were happy with their job in November (64 percent) than in October (69 percent). The number of workers expecting their company to cut staff rose from 15 percent in October to 18 percent in November.
The Illinois Index also plummeted 16.6 points to 86.7 in November.
Chief Operating Officer role changing radically in corporate America
The position of Chief Operating Officer (COO) in leading corporations is being transformed not eliminated according to a report released recently by The Conference Board, the global research and business membership organization.
The report, The Changing Role of the COO, is based on in-depth interviews with executives from companies representing diverse industries and a literature review. Executives surveyed include heads of human resources, regional heads, COOs, CEOs, heads of business units, and heads of company research.
"The scope and intensity of leadership demands today call for a team approach at the top," says Dr. Robert J. Kramer, Principal Researcher at The Conference Board and author of the report with contributing author David Harper, founder and managing principal of The Advisory Alliance. "Some companies are deciding that the composition of that corporate leadership team need not include a COO. Others are changing the duties for which a COO is responsible."
The report finds that the need for and the definition of the COO role is determined by the relationship between the COO and CEO, including their personalities, in the context of the needs of the particular business. A risk assessment of the CEO "going it alone" and internal talent management considerations are also used for determination.
Some of those interviewed say that the COO position is evolving from the number two spot in a company to a leadership "on demand" role that changes focus with changing business strategy. The report finds that companies to grow more quickly in an increasingly competitive business world are becoming flatter, with the CEO now going directly to the heads of lines of the business for answers.
History of the COO
The position of COO, though born sometime in the 19th century, reached its apex in the 1970s, when more and more prominent firms began adding the position to deal with greater management needs spurred on by increasing diversification. Its popularity dwindled in the 80s, but was revived with the growth of the dot-com era, only to fall with the era's demise. Most recent studies indicate that only a small percentage of leading U.S. companies currently employ a COO.
Because the role of top corporate leadership is evolving, the COO's job is becoming "situational."
"New demands from a company's external and internal customers affect the general management of the enterprise and, in turn, hold implications for the COO role," says Harper. "COOs of today need to be flexible and adapt to changing demands set by customers and the CEO. As the complexity and pace of today's business increases, CEOs are relying more on a team than just one other top executive."
External considerations that affect the COO role include:
- Strong global, regional, and local competitors.
- The increased power of customers.
- Impatient institutional investors.
- Talented managers who are ambitious and open to opportunities offered by others.
- Global product overcapacity.
- Increased regulatory oversight.
- Relentless pressure to update, or even change, the company's fundamental business model.
The most pressing internal considerations are: the reduction of layers of management and emergence of numerous project-based formats; greater levels of investment in the IT infrastructure, which enable enhanced vertical and horizontal operations and communications processes; and an extensive use of alliances along with robust amounts of mergers and acquisition activity.
Some of the variations of the responsibilities of the COO as reported by executives interviewed include:
- Oversight of a mix of various company operations.
- Oversight of a mix of operations and functions.
- Oversight of a mix of operations and functions, and acts as the organization's senior troubleshooter.
- Engagement in a process of evolution from driving the operations of the company to sharing the overall leadership with the chairman and CEO and other top executives.
- Responsibility for the alignment of operations and people behind the strategy to transform the company's technology, oversight of product development, and innovation, as well as the firm's cost structure and chair of the corporate committee that addresses key people-related issues.
The Conference Board report offers a three-step analysis process that companies can use when deciding whether they need a COO:
- Analyze your company's leadership and general management requirements in the context of your strategy and company culture including the relationship between the CEO and COO.
- Consider the central arguments in favor of and against the COO role in terms of your company's immediate goals and longer-term strategy.
- Assume the COO role is unlikely to add value to the general management of the enterprise and build the strongest case to the contrary.
Source: The Changing Role of the COO: Is the Chief Operating Officer Headed for Transformation or Extinction? The Conference Board,
www.conference-board.org.
US EPA issues rule to reduce mercury releases from steel manufacturing facilities
US EPA issued new air emissions standards that will reduce mercury releases from steel manufacturers using electric arc furnaces. The rule requires these steel making facilities to buy motor vehicle scrap from providers that participate in an EPA-approved program for the removal of mercury switches.
This program, the National Vehicle Mercury Switch Recovery Program, is designed to remove mercury-containing switches from scrap vehicles before the vehicles are flattened, shredded, and melted to make new steel. These switches were used for lighting in hoods and trunks and in some anti-lock braking systems of many vehicles manufactured prior to 2003.
The standards will prevent the release of about five tons of mercury in to the air each year. In addition, the rule will reduce emissions of other toxic metals such as lead, manganese, nickel and chromium by about 52 tons per year and particulate emissions by about 865 tons per year.
For more information, visit: National Vehicle Mercury Switch Recovery Program:
www.epa.gov/mercury/switch.htm.
New laws take effect January 1
With more than 700 new laws taking effect on January 1, the Illinois Manufacturers' Association has highlighted a number of changes to the statutes in its Human Resources and Tax Policy Memos over the last two weeks. In this final installment, we look at more general laws added to the books by the legislature.
Electric rate relief and reform
Last January a decade-long moratorium on electric rates was lifted and new rates were set by a "reverse auction" process. The result was significant increases in the cost for both residential and commercial electricity. Bowing to political pressure, the legislature cobbled together legislative relief that in part creates a state agency to procure electricity in hopes to keep consumer costs under control. Moreover, the Illinois Power Agency is authorized by the statute to build generating plants and sell electricity to cities, rural electric co-ops and government aggregators. The new law also imposed rate relief for customers of both Commonwealth Edison and Ameren. (PA 95-481)
Electric energy net metering
A new law requires the Illinois Commerce Commission to issue standards for net metering (which allows certain non-residential electric customers who generate electricity for their own use to reduce their electric costs by selling excess power to their utility). Net metering must be offered by April 1, 2008. (PA 95-420)
Greenhouse gases
Units of local government are authorized under this legislation to seek help from the Illinois EPA to inventory local greenhouse gas emissions and determine how much they could be reduced. (PA 95-453)
Mercury banned in some products
Sales and distribution of 10 kinds of mercury-added products (mostly medical instruments and fluid meters) will be banned in Illinois beginning on July 1, 2008.
An exception for use of mercury required in products by federal law was included in the legislation, or if the only mercury added to a product is in a button cell. (PA 95-87)
Income tax credit for employer-provided child care
A new law will allow a 30 percent income tax credit for startup costs for a company providing on-sight child care for its workers. (PA 95-648)
Questions on these or other new Illinois laws should be directed to Mark Denzler, IMA Vice President for Government Affairs and Membership.
Join the IMA Energy Program . . .
IMA members looking to compare their electric supply options can go to http://www.newenergy.com/control
and receive a free, no obligation rate quote.
OfficeMax Advantage can save you 30% or more on your office supplies . . .
IMA members and OfficeMax a first-class partnership
Go to: http://www.ima-net.org/membership/programs.cfm
to download your OfficeMax Retail Connect Card and start saving today!̃
The IMA's new strategic partnership with Heritage-Crystal Clean (HCC) caters to your company's environmental needs. Big savings are available to IMA members. To learn more, contact HCC's Jim Skelton at
jim.skelton@crystal-clean.com, call 847-783-5110 or visit:
www.crystal-clean.com.
IMA's Recycling Expansion & Modernization (REM) grant ...
The Illinois Department of Commerce and Economic Opportunities wants to help Illinois companies deal with the issue of reducing waste through the Recycling Expansion and Modernization (REM) Grant Program. Through this grant, the Illinois Manufacturers' Association can offer your company a solid-waste assessment at 25 percent of the actual cost; the grant pays the remaining 75 percent. Join the growing number of companies that are on the path to becoming green. Find out how easy it is to participate in the IMA's REM grant program. It's an investment in your future one that will reap perpetual rewards for your business and your community.
For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
Order the IMA's 2007-2008 Benefits Report at
https://www.ima-net.org/ben_report_order.cfm
Order the IMA's 2006 Annual Compensation Report at
http://www.ima-net.org/reportorder/login.cfm
For more information, go to one of the links above, or contact Janie Stanley at 800-875-4462, ext. 3020, or email:
jstanley@ima-net.org
DATES OF NOTE:
More information/events may be found at http://www.ima-net.org/calendar.cfm and
http://www.ima-net.org/MIT/open.cfm
Kanban/Pull System/
Inventory Reduction
January 7, 2008: Decatur Public Library, 130 N. Franklin St., Decatur
or
January 8, 2008
DePaul University, 150 W. Warrenville Road, Naperville
A key component of most Lean Manufacturing strategies, this one-day Kanban workshop incorporates basic skills necessary to participate in Kanban implementation. Designed for individuals who may use or facilitate the use of Kanbans to move material and reduce waste. Kanban automates manufactured and purchased parts inventory cycles to reduce unwanted inventory and create waste-free processes.
January 10, 2008
Conducting Your Own HR Audit
DePaul University, 150 W. Warrenville Rd., Naperville
Determine your organization's effectiveness in HR, and identify any restraining forces that affect the achievement of company goals. Identify potential compliance issues that can affect a company's defense in an employment practices and policies case. Learn to conduct an HR Audit and practice using sample tools that can be tailored to your organization. For all HR professionals and anyone involved in HR-related activities. $125 for IMA members; $150 for non-members.
January 17, 2008
Effective Presentation Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to create and articulate a clear and concise message, respond to questions effectively. Let us provide you with the skills and tools needed to deliver a winning presentation.
Problem Solving8D
January 21, 2008
Decatur Public Library,
130 N. Franklin St., Decatur
or
January 22, 2008
DePaul University, 150 W.
Warrenville Rd., Naperville
Designed to demonstrate effective problem solving methods, this workshop will focus on root cause analysis, cause and effect diagrams, five "Why" techniques, team oriented problem solving and containment measures.
Contact: Judy Parker, 800-875-4462 x 3036, or email: jparker@ima-net.org
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