The Honors Program

I had the honor of attending the induction ceremony for new Honors Program members. While I have sponsored a couple of honors options with students, I didn't quite understand the program as well as I do now. Dr. Dan Martin is director of the program and showed a film (produced by a former honor's student) that explained the reason for such a program. The Honors program provides a way for students to challenge themselves beyond the regular curriculum--not unlike other areas like atheletics, art or other extracurricular organizations. Dr. Saz Madison, professor of psychology also spoke at the ceremony; he is a former Rockhurst graduate and was an Honors student. Dr. Madison is a great role model for the kind of people this program can produce. Also at the cermony were several faculty, many of whom teach honors courses like Dr. Kovich and Dr. Sturgill. Congratulations to all 37 new Honors students and I hope they all challenge themselves to do things even they didn't imagine.

AIG -- Defending the Undefendable

The outrage of AIG's (the insurance giant that is now 80% owned by taxpayers) recent $165 million bonus payout is quite understandable. First, the people receiving the bonuses included executives and traders from the derivatives division--the one that led to the company needing a government bailout. John Q. Public doesn't mind when people are rewarded for getting results, but see unfairness when they get rewarded for messing up the livelihoods of others. Second, the government, who now mostly owns the company let it happen--and did so even as they were negotiating a second $30 million bailout just a few weeks ago.

The PR blunder of the bonuses is immense and no less than Peter Drucker predicted such reactions years ago. In writing about the professional manager, who acts as an agent for the firm, Drucker claims their first edict of responsibility was to not knowingly do harm. He then said that there are some issues that are very harmful even if they are done unwittingly. First among these sins is executive compensation. Drucker reasons that excessive compensation schemes (e.g., large bonuses) does harm because of the perception of inequality it creates. This perception is exaggerated, but it puts the company on the defensive, just as the AIG CEO is now explaining to Congress how this $165 million fiasco happened. It sounds like it went badly for Mr. Liddy.

So how can we defend the undefendable (i.e., AIG executives)? Well my colleague, Turner White asked his students a very good question: "Why would AIG pay the bonuses?" The pile on answer is arrogance and/or greed. But there is another answer that makes sense: fulfillment of contracts. Even if Mr. Liddy (and his board who in this case was the President and Congress) hated the idea of the bonuses they felt some compunction based on meeting contractual law. In fact business fundamentally one of an infinite number of transactions and these are governed not only by the honest dealings of the parties involved but by the rule of the law. While bad decision were made all around on this deal, it is as likely the actual commission of the bonus bonanza was a case of feeling compelled to follow the law.

Focus, Focus, . . .

As I and my student enjoy this spring break, I get to catch up on some reading. In the news I notice the theme of not overreaching and trying to do too much. This morning, eBay makes the front page of the Wall Street Journal (usually when companies make the first page it is for the wrong reasons). eBay has been struggling lately because consumer preferences have changed and becasue, according to the article, eBay has strayed from its roots of being an online marketplace for used and clearance stuff. Over the last few years, eBay has tried to expand into retailing and internet telephony only to see this be a drain on profits.

Politically, President Obama is facing his own crisis of overreach. In the last week high profile business leaders and supporters such as Warren Buffett and Andrew Grove have made this exact point. Buffet says "Job 1 is to win the war, the economic war. Job 2 is to win the economic war — and Job 3 . . ." Grove in a more academic tone (he is a successful businessman who likes to play professor) says to change things one at a time--and fixing the financial crisis comes first. The message as today's article from Time suggests is that Obama is trying to do too much; better to focus on just a few things. Of course Obama has the challenge of trying to placate numerous interest groups who helped elect him.

Which leads me to myself -- I have too many things on my to do list this week from too many different realms such as grading for my courses, scholarly writing, tasks I can't put off any longer, taking care of family obligations like getting passports done for my family (and figuring out how to get the pictures the right size for the application!!). Of course, eBay can sell off its extraneous assets but not so easy to get rid of these tasks except to do them. But I am not complaining -- it is spring break.

Dr. Wheeler

A week ago Friday I had the pleasure to interview students for the our annaul competitive scholars event. It was a pleasure because every one of the 14 students I saw were top notch and I was very glad they were considering Rockhurst.

It was also my pleasure because I was able to work with Dr. James Wheeler. In our interviews everyone introduced themselves including the fauclty interviewers. I told the students as way of introduction I had been with Rockhurst for nearly 15 years . . . Dr. Wheeler, silent on the subject at first, finally fessed that he had been at Rockhurst for 53 years. I knew Dr. Wheeler a bit but that number still startled me.

Anyway, Dr. Wheeler is still great with these MUCH younger students. He asked questions about what these kids were passionate about -- one girl gave a moving account of why exactly she wanted to go into nursing. Come to find out he received the 2nd Ph.D. at UMKC for Chemistry. And he still loves teaching. The fact that he has been here so long is not that relevant to him -- but working with students certainly is.