Burnout and Educators

As globalization and technology continue to change the way in which businesses function, the need for highly skilled workers possessing the ability to synthesize, analyze, and communicate will be the litmus test separating successful from unsuccessful economies. Where does the US fall in light of this? Can the US produce sufficient highly skilled workers to meet the demands of an ever evolving society? If the 2010 results of the Program for International Student Assessment (PISA) is any indication, then the US was found wanting.The test results showed US students lagging behind many of their peers from other countries in core subject areas. This realization has once more invigorated the consistent intermittent debate surrounding quality education in US schools. In the aftermath of the report, the brainstorming sessions that follows will once more seek to unearth the impediments to the creation of a better education system. What will be discovered? An examination of prior measures unveiled to address the shortfalls of quality education to date seemed to focus consistently on educators as a causative element.The No Child Left Behind Act (NCLB) (2002), as well as research which hints that a high quality teacher is the single most important factor that influences students academic performance give credence to the prior statement. These avenues which seek to focus on ways to increase academic achievement seem to hint that educators are the most critical element impacting the ability of students to perform academically. This conclusion has led to extreme pressures on educators to increase academic performances. These pressures while not new (for as Popham stated, they existed prior to NCLB (2004)), will increase in magnitude as the world continues to change. Can this continuous insistent pressure result in adverse effects for educators? What are the implications for the teaching and learning environment, and invariably society?Relentless pressure to perform in environments that are highly volatile is often conducive to burnout. This burnout is a nemesis to the creation of an education system that is capable of producing students equipped to deal with 21st century workplace challenges; skills which are critical to any country hoping to maintain or achieve a competitive advantage. Drucker makes this point when he coined the term “knowledge workers’ and highlighted their importance for the success of 21st century businesses. This paper examines the principles of rest and highlights the value of rest to educators operating in contemporary educational environments.The paper pinpoints the challenges facing contemporary American education system which may inhibit rest and brings clarity to the dangers of burnout – a condition created by lack of rest. Leaders in education as well as stakeholders are provided with clear guidelines which may be used to prevent burnout and promote rest. The paper ends with a plea for education leaders to adhere to the necessity to rest in order to construct learning environments capable of creating students with the analytical, synthesizing, and communication skills that are critical to meeting the demands of contemporary and future organizations.The day started with an Individualized Education Plan for one of my students. Once the meeting was finished, I analyzed the results from the summative assessment for forty students from the previous day. I realized that fifteen of my students did not grasp some of the key concepts from the lesson and so I commenced planning intervention strategies. Two strategies had to be different to accommodate two of my students who needed modified assignments. This activity took almost fifty minutes. So, I had just enough time to adjust my lesson plans for the day. It was now five minutes before the start of class, and as I checked my calendar, I realized I had a meeting at the end of the day with teachers from my department. I made a note to myself, “just before I leave for the meeting I must remember to call the parents of three of my students as they were not completing homework and had started acting up in class”. As I jotted the note, I glanced at the other meetings and forms that needed attention by the end of the week. As the bell rang one teacher passed my door and as I smiled politely and asked “how are you;” she looked at me and stated “I am overwhelmed, there seems to be so much to do and with all these meetings I am quite frankly exhausted.”Rest -the principle
“After God created Heaven and earth on the seventh day He rested (Genesis 2:2).” According to Botterweck, Ringgren & Fabry, this day, often recognized as the Sabbath stems from the word Sabat, symbolizing cessation from work (2004). Genesis 2 therefore set the precedence for mankind to take a break from work. As one journeys further into scriptures Hosea 10:12 “… fallow your ground… ” when examined through Robbins Social Approach to understanding text represented a call for mankind to desist from their activity. While the verse may have held cultural implications for the Jews as they were farmers, the ramifications for mankind in contemporary society are no different. The principle demands mankind be removed from the confines of work; that time be taken away from the everyday tasks.The value of rest
The necessity for educators to rest is vital to the creation of effective teaching and learning environments. Outcalt (2005) believes rest allows one to regain strength through the renewing of the mind. Rest is akin to the lubricant between two joints; it provides the conditions necessary for smooth operation without complications which may inhibit action. Rest is the indispensable ingredient that fosters motivation and drives creativity, without this ingredient motivation is stifled and the death of creativity fast-forwarded.The value of rest and renewal to educators is critical to the creation of an effective and sustainable education system. As the world continues to evolve and the momentum of change accelerates, the pressure on educators to produce students who are academically proficient to manage the demands of the 21st century will continue to increase. This increased demand will force leaders and stakeholders to demand more from educators; a move which has the potential to drain educators physically, emotionally and spiritually as they work overtime to increase students’ performance. Maslach and Leither (1997) convincingly made similar points when they stated that the speed and rate at which organizations are bombarded with changes may result in leaders and followers becoming physically and emotionally exhausted. In a bid to meet these demands, the possibility that workers will lose rest is likely and unfortunate. Without rest, creativity is stifled, motivation becomes a fantasy, competence is sacrificed, and mediocrity flourishes. These outcomes erode creativity, innovation, collegial relations, and productivity. The end result is that rest is sacrificed and inefficiency is given room to grow.In a society where change is a constant and stability is a pipe dream, the need to be constantly moving to be in sync with societal changes has the propensity to hinder rest. Managers and employees are often driven to work harder and longer to avoid mergers, downsizing, acquisitions and restructurings. The same holds true for educators. Standardized tests show many students not meeting the proficiency bar; drop-out rates climb; more students exercise their first amendment right to explain how entertainers make big bucks with little education and therefore education is not important; and law-makers continue to increase the pressure on educators to produce better quality students. These have factors have helped to create an environment where the necessity for rest often becomes blurred. For many educators, when the pace and workload become too hectic; depression, anxiety and stress are only a few outcomes. Muller made similar arguments when he stated that in today’s world, with its unrelenting emphasis on achievement and efficiency, it is possible to lose the essential rhythm of life and how best to create an equilibrium between work and rest (Muller, 2000).In a world driven by competition, where only the best shapes an organizations competitive advantage, it is easy to overlook educators as people and not machines and it becomes easy to under-value the job they do. It is also very easy to target education systems as the place to make adjustments in order to address societal ills and its inability to produce only the best.The onus placed on educators in the US to produce first class students in a constantly changing environment, creates an environment of high demands. These demands often unrealistic in nature (as education is by no means the sole responsibility of teachers) often result in stress and lethargy in the affected. Maslach and others (1997) succinctly made similar points when they stated that the burden placed on workers to increase productivity creates conditions that are conducive to burnout. Burnout takes away an individual’s vigor, promotes lethargy, and reduces motivation and efficacy. Such end results negatively affects individuals ability to perform, and thereby subtracts from any efforts to maintain or promote long term sustainable achievements.The foundation of burnout
Burnout according to Maslach et.al (1997) is a symbol of foremost failure of the organization to function normally, which is associated more to the state of mind of the organization rather than its followers. It may manifest itself in detachment, disinterest, hopelessness, and de-motivation. According to Maslach et.al (1997), these expressions are damaging to the individual on a personal as well as on a professional level. On a personal level, stress, health issues and anxiety are some of the end results. These personal afflictions spill over into the professional life and slowly drain the individual’s ability to function at their fullest potential.Burnout incapacitates the ability to think and to be innovative in coming up with new ideas, and it limits creativity. It increases workers attrition which may show itself in increased absenteeism, distractions, and loss of vigor. Follower’s dedication diminishes and efficiency may ultimately suffer.Eradicating Burnout
To prevent burnout, Halgesen (2001) calls for both leaders and followers to create an environment of partnership where parties recognize the value of each other. Maslach, et.al (1997) support this hypothesis when they call for organizations to ensure they develop values clarification which they define as, “the expression of personal values and shared values resulting in the endorsed values by the organization” (p. 133).According to Maslach and Leiter (1997), building engagement with work is the solution to burnout. To this extent, they noted some factors which if addressed will help to minimize or eliminate burnout.� Sustainable workload: As 2011 budget debates begin, the need to cut budget for education is once more on the table. The teaching staff and support staff for many schools will once more be targeted. Leaders need to recognize that by removing well needed staff especially in failing schools, they are creating additional pressures on teachers. Evans (2001) posited that the continuous involvement of teachers in their work can lead to burnout; too much work has the ability to compound the situation. While teachers are afforded a long summer break, is it possible to shorten the summer break and distribute “rest days” evenly throughout the semester?� Feelings of choice and control: Policy makers need to ensure that any policy created to promote academic achievement should give educators the impression that their voice counts and that they have control over aspects of the teaching and learning environment that counts.� Recognition and reward: High quality education is a definitive factor that favors countries with a competitive advantage. This quality education if often accessed through educators, yet education is arguably one of the lowest paying professions. What can be done to change this?� Fairness, respect and justice: As the debates continue to find the qualities to define quality teachers, the impetus to align pay with performance may be a
tempting morsel. This morsel should be discarded on two accounts. The first is that research against extrinsic motivation hints at the negative effects of this manner of getting results. Secondly, in an era when Learning communities are expected to be sharing medium where teachers utilize best practice from these sessions; how many teachers will be willing to share their best practices?Conclusion
While the necessity to increase student’s performance continue to reign as a topic worthy of discussion, budget cuts in areas of education seems to put the debate to rest. This has resulted in fewer educators, with heavier workloads and longer hours. This new trend goes against the demands of an era where students with analytical, synthesizing and communication skills are necessary to fulfill its demands. These decisions have the propensity to undervalue educators and may result in burnout; a condition which fosters inefficiency and mediocrity- traits which are not conducive to the creation of effective teaching and learning environments. To avoid this pit fall, leaders must be willing to examine techniques to prevent burnout, if any serious attempts are to be made to produce students with the skills necessary to function in 21st century environments.References:Botterweck J., H. Ringgren & J. Fabry (2004) Theological Dictionary of the Old Testament
Wm. B. Eerdsman Publishing Company Grand Rapids. Michigan.Halgesen. S. (200) Thriving in 24/7: Six Strategies for taming the new world of work
Published by Free Press. New York. New York.Maslach C. and Leiter M. (1997). The truth about burnout
Published by Josey-Bass. San Francisco. Calfornia.Outcalt. T. (2005) The best things in life are free.
Published by Faith Communications. Deerfield Beach, Florida.Popham. J. W. (2004) America’s Failing Schools
Published by Routledge Falmer. New York. New York.

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Why Businesses Do Not Sell

It would be nice to live in a world where every business-for-sale was sold at top dollar. While there is no such thing as a perfect business free from all defects, there are a number of problems that can hinder a sale that could be remedied, if given enough time. This article lists ten of the reasons which are often cited as contributing factors in an unsuccessful sale or a completed deal for less than potential value.Business intermediaries need to be up-front with their seller clients, educating them on the challenges faced, and the likely impact that one or more of these issues will have on completing a successful transaction.1. UNREALISTIC EXPECTATIONSa. Valuation/Listing Price:Arguably, the price a business is listed at is one of the critical elements to a successful sale. An owner’s emotional attachment to their business, coupled with an inexperienced business intermediary’s desire to obtain the listing and please the seller, can be a recipe for disaster. Overpricing a business will deter knowledgeable buyers from establishing communications. Additionally, it will be extremely difficult to defend the valuation when a business has been priced unrealistically. The typical outcome is that the listing will languish in the marketplace and recovery becomes more difficult. Once on the market for months on end at the wrong price, the process in re-pricing and re-listing creates a whole new set of challenges, the least of which is maintaining credibility.b. Unrealistic Terms and/or StructureDeal structure, asset allocation and tax management must be addressed proactively and early in the process. Often the Buyer and Seller place all of the focus on the sale price at the expense of the ‘net after-tax results’ of a business transaction. In most cases, a seller could achieve a deal that provides a greater economic benefit when an experienced Tax Attorney/CPA assists with structuring the transaction. In addition to structure there are a number of other issues that could be problematic, including:

Seller insists on all cash at closing and is inflexible in negotiating other terms.

The buyer’s unwillingness to sign a personal guarantee

The lack of consensus on the Asset Allocation

Seller insisting on only selling stock (typically with a C-Corp)

Inability to negotiate equitable seller financing, an earn-out, or terms for the non-compete

2. PROFESSIONAL ADVISORSFor a successful sale to occur, a business owner must have the right team of advisors in place. An experienced mergers & acquisitions intermediary will play the most critical role – from the business valuation to negotiating the terms, conditions, and price of the sale as well as everything in between (confidential marketing, buyer qualification, etc). Aside from the M&A advisor, a business attorney who specializes in business transactions is critical. Once again, “who specializes in business transactions”. Any professional who has been in the industry for more than a year will be able to point to a transaction that has failed because the lawyer that was chosen did not have the specialized expertise in handling business transactions. Additionally, a competent CPA who is knowledgeable about structuring business transactions will be the third key role. While a business owner’s current legal and tax advisors may have the best of intentions in assisting their client with the business sale, if they are not experienced with mergers and acquisitions it would be highly recommended to evaluate alternatives. In some cases, there is one shot when an offer has been received and it is therefore imperative not to attempt to make a deal that is out of reach and impossible to complete.3. DECREASING REVENUES/PROFITSThe majority of buyers are seeking profitable businesses with year-over-year increasing revenue and profits. When a business has a less stellar track record with varied results or possibly declining revenue and/or profits, complications with the business sale are likely to occur. Not only will decreasing profits and revenue impact the availability of third party funding but it will have a material impact on the business valuation. While buyers traditionally purchase businesses based on anticipated future performance, they will value the business on its historical earnings with the major focus on the prior 12-36 months. For those businesses which have deteriorating financials, the seller should be able to articulate accurate reasons for the decline. Both the lender and the buyer will need to obtain a realistic understanding of the underperformance to assess the impact it is likely to have on future results. In cases where the seller is confident that the decline was an anomaly and is not likely to repeat itself, structuring a component of the purchase price in the form of an earn-out would probably be necessary. In other circumstances, when there are two or more years of declines, the buyer and lender will question “where is the bottom?” and what is the new normal. In this situation, a decrease in valuation will be inevitable. Cash flow is the driver behind business valuations and business acquisitions. The consistency and quality of revenue and income will be one of the key focal points when assessing an acquisition. It all relates to risk. Those businesses with dependable recurring revenue generated from contractual arrangements will generally be in greater demand than businesses who produce income based on a project based model.4. INACCURATE OR INCOMPLETE BOOKSOne of the most critical components to a successful business sale is for the business to maintain accurate, detailed, and clean financial statements that match the filed tax returns. Not only will these financial statements be the basis for the business valuation but they will also be the criteria for whether the business will qualify for bank transaction funding. Too often the business is managed as purely a lifestyle business that is focused only on short term owner compensation, without regard to building long term value. In these cases, the owner has taken very liberal personal expenses that may not be able to be added back when deriving the adjusted earnings. Given the importance these documents represent, a business owner should ensure that the books are professionally managed and up to date. Records that are messy, incomplete, out-of-date or containing too many personal expenses will only give prospective buyers and lenders reasons to question the accuracy of the books. Last but not least, businesses that have a ‘cash component’ will need to report 100% of this income for it to be incorporated in the valuation.5. CUSTOMER CONCENTRATIONBusinesses that have a handful of customers that produce a large percentage of the company’s revenues, will probably have customer concentration issues, especially if one client represents greater than 10% of sales. It is important for a business owner to recognize that a business which lacks a broad and diverse base of customers possesses a higher degree of risk for a buyer as the loss of any one of these large clients could have a material impact on the future earnings. As a result, customer concentration will have an effect on the valuation, deal structure, and salability of the business. Vendor and industry concentration can also pose complications when selling a business. Specialization can be a competitive advantage for a business and assist in winning contracts. However, this same narrow industry focus could be a detriment if it is perceived that the business does possess a broad supply chain and ample options to source products and materials.6. THE OWNER IS THE BUSINESSIt is not uncommon for the owner to play a significant role in the operation and management of the business. This is particularly true with smaller enterprises. Where this situation can present a problem is when the owner is not only the face of the business but also deeply involved with all facets of the company – sales, marketing, operations, management, marketing, and financial. If there are no key employees and there are few written processes and procedures, the business lacks a dependable and repeatable work flow. When it becomes evident that the business cannot operate effectively without the owner’s hands on involvement and personal know-how, it becomes problematic. Of equal concern is the relationship the owner may have with the customers of the business. If the customer does business with the firm largely in part of the relationship with the owner, this situation will create customer retention concerns and possible transition problems when the business is being sold. In summary, buyers want a business that can operate independently from the current business owner.7. THE OWNER(S) IS AGING AND HAS SLOWED-DOWNIt is not uncommon for a business owner to become complacent after running the company for an extended period of time. Becoming tired and lacking the previous ‘fire in the belly’ has a way of spilling over into the business fundamentals. The number of trade shows that the business participates in decreases, the travel and new customer sales calls that routinely took place on a daily basis in the early years, have been paired down. The investment spending on equipment upgrades, vehicle replacement or marketing programs have been cut back. Innovation has come to a grinding halt and the business is on auto pilot. The financials have luckily held steady but for how long? An owner who has become burnt out almost unavoidably transmits their lack of zeal and drive to their staff and clients in a number of subtle ways. The net result is the company’s performance slowly begins to deteriorate. Unfortunately, this situation can become even more pronounced when the owner finally makes the decision to sell the business and mentally checks out at the worst possible time. Transferring ownership can be viewed by some as a highly emotional process, and the decision to sell at the right time is often ignored until the issue is forced upon the owner (failing health, divorce, disability, etc.) and usually at a fraction of the former valuation.8. INDUSTRY IS DIMINISHING OR THREATENED Over the last two centuries there have been a number of industries that have developed and grown significantly. In this same time frame, many new industries have been created while others have become extinct. The future outlook for a given industry will have a direct impact on the valuation and marketability of the business during a sale. Businesses facing obsolescence or mired in a shrinking industry will face an uphill battle when it comes time to transitioning or selling the company. Maintaining a diverse offering of products and services that are relevant to the market, not just today, but also with an eye to the future, will enable a business owner to avoid this situation. Not only will this assist in mitigating the impact from declining sales but also demonstrate to a prospective buyer that the business has a clear path to grow in the future.9. CHOOSING THE WRONG LENDERFrom loan application approval to transaction funding is a process in business transactions that can take six weeks or more, that is with an ‘experienced’ business acquisition financier. Many deals have fallen apart during this time frame because the buyer became aligned with the wrong financial institution. There is nothing worse, for all parties involved, to find out four weeks into the process that either the loan terms previously promised were not correct or worse, that the bank underwriter declined the loan.In the field of business acquisitions, not all banks/lenders are the same. There are conventional loans, SBA backed loans, and there are lenders that provide cash-flow based financing and others that only provide asset based funding. One bank may turn down a borrower for an SBA 7a loan while another institution will readily accept it. Every lender has its own unique and frequently modified lending criteria. Therefore, buyers need to ensure they are working with the right lender from day one, or valuable time is wasted causing the deal to be compromised, or lost to another, better prepared candidate. Buyers should consult with the business intermediary representing the sale to determine which lenders have reviewed and/or pre-approved the transaction for funding. Obviously, buyers who are prequalified from the start and verify that the bank’s lending criteria conforms to the type of businesses they are evaluating, will be the best positioned for a successful acquisition.10. COMMERCIAL PROPERTY ISSUESFor some businesses the saying “location, location, location” cannot be more important to the value of the company. Typically, this will pertain to retail businesses. If the physical location is of major importance, the business buyer will seek assurances that they can either purchase the real estate or be able to sign a long term lease. On the flip side, the business could be located in a part of town that has fallen on hard times or could be located on the owner’s personal property, both situations necessitating that the business be relocated. Also, some businesses are not easily relocatable without affecting the current customer base. All of these circumstances add another layer of complexity to the transaction.Additionally, the type and size of facility can also have a material impact on the sale. If the facility is not large enough to provide the enterprise a sustained growth path, a buyer could become disinterested. Another situation could be the value of the property. If the current owner purchased the land/building a decade or two earlier and the financials or recast do not reflect a current FMV rent/lease payment, valuation problems will occur.Business transactions involving the sale of commercial real estate can be hampered by the Environmental Site Assessments (ESA’s) – Phase 1 and Phase 2. Property that is contaminated can be very costly to clean up and will have an impact on the closing. When this situation arises, it will be important for the buyer and seller to have a clear understanding of the costs to resolve the issue, which party is responsible, and whether a price offset will be warranted.Other complicating factors involving commercial real estate include zoning changes that require a property to be brought up to new codes, and clear definition of who bears responsibility and the cost of this process. Last but not least, the agreement by the landlord with either a lease assignment or offering a new lease at comparable rates.SUMMARYMost small business owners have spent the majority of their life building their business. It is not uncommon for a business seller to become so emotionally attached to the company that they look past some rather glaring problems that a business intermediary, a lender, or prospective buyer will immediately recognize. It is natural for a seller to want to obtain the highest price possible for their business. There is so much bad information on the web related to multiples and business valuations that this should not come as a surprise. M&A Advisors need to be honest and direct in educating a business seller on the challenges faced in a potential sale, the range for a realistic transaction price, as well as creative terms and structuring options that might be utilized. Being a people pleaser and ignoring any potential problems will only provide the seller with unrealistic expectations. In the arena of business negotiations there are few if any “pleasant surprises”. Dealing with issues up front rather than late in the sales cycle process should be the golden rule.

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Finance & Banking Sectors Still the Major Players in IT Recruitment

A leading UK recruitment agency in the IT jobs sector has released data from their Q1 2009 records which indicates a strong resilience in the financial and banking sectors regarding their Information Technology recruiting power.The recruitment agency in question is well placed to provide a litmus test for the UK IT jobs industry having nationwide coverage and a wealth of experience in sourcing and placing vacancies and candidates in the IT sector. The strength of these sectors spans both temporary/contractual positions as well as permanent vacancies. The figures used are all based on actual client requirements that were received over the given period; as such they show national averages and consequently do not reflect specific regional differences.Contractual positions: 1. Finance; 2. Banking; 3. Investment Banking; 4. Government; 5. Telecoms.Permanent positions: 1. Finance; 2. Banking; 3. Pensions; 4. Telecoms; 5. E-Commerce.Given the well documented problems in these sectors in the second half of 2008 and the mixed results coming from the large financial institutions in 2009 so far, it is encouraging to note that these major players in IT recruitment are still topping the list for demand for IT talent. This helps to show the resilience of the IT sector, especially in organisations such as those in banking and finance which heavily rely on high tech systems and computerised data collection and distribution.Although in the back end of 2008 there were numerous redundancies across all job and industry sectors, including IT, the strength and importance of IT workers is borne out by the strong showing from these sectors which were most badly hit in the UK recession. Highly skilled technical staff in the demanding fields of IT programming, analytics and system architecture will always be in demand and are still able to command excellent salaries. Forming the lynchpins of virtually innumerable financial related institutions, the IT systems experts are finding that their skills are once again becoming increasingly in demand as the large organisations start to plan for the upturn that can be expected in the wider economy over the coming months.There may be more of a tendency in the short term for some companies to favour offering shorter term contracts, but as the economy stabilises and begins to show signs of growth we can expect to see a slight shift towards long-term and permanent contracts being offered to the most skilled IT staff, because the need for such professionals will be increasing all the time and companies will be keen to hold onto the top talent.Indeed some companies may already be rueing releasing IT workers last year only to find that they are now urgently in need of the very same skills even now as the first signs of recovery are being felt.The agency continues to closely the monitor the entire IT sector and as the year progresses will be making further informed observations about the UK IT jobs sector. On this evidence, the IT industry certainly remains a strong career path for relative stability and demand for skills.

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