Hartford Business Journal

www.HartfordBusiness.com • September 10, 2018 • Hartford Business Journal 21 OTHER VOICES Growth is CT's best path forward By R. Michael Goman S tates, like most economic entities, will struggle with a classic management dilemma when their expenses exceed revenues. When this happens, they'll oftentimes focus almost entirely on cutting costs. However, turnaround managers learn that it's tough, if not impossible, to save yourself into a sustainable profit. This is because when revenue flatlines or declines, the inexorable growth in ex- penses quickly become overwhelming. If the focus is on costs, the situation will continue to deteriorate and recovery will become increasingly difficult. The belief sets in that survival is only possible if dramatic action is taken — divisions shutdown, sizable layoffs and so on. The reality is that cutting costs is an important step in the turn- around process, but it isn't a path to recovery. Only an increase in economic activity is an indication of recovery, and only increasing revenue can put an organization on a sustain- able growth path. Sustained increases in revenue allow for investment in the future instead of just keeping up with increases in operating costs. As a practical matter, governmen- tal organizations are labor-intensive and the majority of the budget goes to wages and benefits, leaving few options when it comes to reducing costs. There's waste and inefficiency like you'd find in any large organization, but even if all of it could be eliminated, the savings wouldn't do more than temporarily improve the state's budget outlook. I should point out that I'm referring to typical general and administra- tive operating expenses. I'll leave the growth in pension fund obligations to another column. Don't get me wrong, every organiza- tion should constantly be looking for ways to reduce operating costs, improve productivity and increase efficiency. The point is that the best path to improving Connecticut's economy is one that is more focused on growth and less focused on trying to "save ourselves into a profit." We'd be in bet- ter shape already if more of the past few years' talk about cost-cutting had instead been about what we can do to create the conditions that will attract increased investment. Here's the thing: We can change this narrative. To the degree that we've been talking about growth in more than platitudes, that narrative has largely been in the hands of one governmental entity or another. Left in the hands of these well-intentioned folks, the tendency is to create some kind of advertising program, give it a catchy name and market it as a big thing that's going to somehow change the view of Connecticut held by those who are looking to place investment capital. One of the advertising prin- ciples I've learned is that advertising can't turn a bad product into a good one. We have to give people a product they want to buy or, in this case, one in which they want to invest. We have a lot of terrific people in economic development in our state. The problem is that we need to hear more from people who have direct experience running businesses and investing capital. The people we need to hear from are those who are dealing directly with state regulations and meeting payroll every week. The input of CEOs is great, but we need their operating folks at the table, too. Connecticut is blessed with many talented and experienced people working in high-value industries, including financial services, insurance, aerospace, shipbuilding, high-tech and clean manufacturing, bioscience and health care. These industries are also represented by industry associations, which are led by some of the best ex- ecutives in their respective industries. We need to get these people engaged in this discussion, too. R. Michael Goman is a principal of Goman + York Property Advisors LLC, an East Hartford-based real estate advisor. HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: Are apprenticeships a worthwhile workforce-development tool? NEXT WEEK'S POLL: Does your company use social media to recruit for open positions? To vote, go online to hartfordbusiness.com BIZ BOOKS How body language speaks louder than words By Jim Pawlak "Without Saying A Word — Master the Science of Body Lan- guage & Maximize Your Success" by Kasia Wezowski and Patryk Wezowski (AMACOM, $18.95). In "The Out- law Josie Wales," Wales (played by Clint Eastwood) faces off with bounty hunters intent on filling him full of lead. Wales prevails without a scratch. When asked how he knew which one would draw first, he dissects their body language (nervous gun hand, not looking him in the eye, crazy eyes, stood in the back). While it was a movie scene, art does imitate life. We've all been in situations where body language conveyed more than what wasn't or was said. Basic advice: Consider the context. A person who rubs her nose and eyes often may not be insincere; she may have a cold or allergies. Fidgeting or crossing/uncrossing the legs while seated doesn't necessarily indicate a lack of interest — especially during a long meeting. The chair may be un- comfortable, or the person may have back problems. Always look for "tells" — changes in expressions, eye contact, smiling, hand gestures, posture, etc. Those changes may come in response to questions, com- ments or a change in your body language. When changes occur in clusters, they're sending a clear message. With the basics in mind, prime exam- ples of positive body language include: Leaning the upper body forward shows interest. When people are listening and receptive, they maintain eye contact, smile and gesture with open hands. Body language extends to your clothing, too. It's about first impres- sions. Before you shake a hand or utter a word, people will make a judgement based upon appearance. If you're dressed similarly, the person will feel that you have something in common. What about negative body language? Beware of crossed arms and closed hands; while they may mean someone is deep in thought, they usually mean disengagement. Raising the chin and pointing with a finger mean disagree- ment. Lack of eye contact indicates lack of interest, as does tilting the head and supporting it with the arm. 3.7% No 96.3% Yes READER COMMENTS: "You can't pass on institutional knowledge without structured training. Apprenticeships do that." "More secondary school guidance counselors should promote the skilled craftsman trades! For so long they have looked down on anyone not going to college. We need these skilled people and the earnings in most cases exceed college graduates!" "Apprenticeship programs for the specialty skilled construction trades i.e. mechanical, plumbing, electrical and fire protection are now and always have been the backbone of the trade's futures." R. Michael Goman Jim Pawlak Book Review 3.7% No 96.3% Yes

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