A Bittersweet Goodbye from the FBEI

As graduation arrives in a mere 3 days, I have spoken to many undergraduate and MBA students who are experiencing a strange mixture of joy at their accomplishments but also anxiety, concern and fear. Certainly, they enter into this next chapter of their lives in a challenging business, economic, and political era, but the source of this anxiety is something much more personal and touching.

Many conversations with graduating students have focused on the great relationship built up over these past years in school, either at our lovely ocean front campus or at Mission Valley. The rhythm and routine of the certainty created by an academic schedule is now being replaced, and often with something far less certain. For some, it means a move away and the knowledge that we will see each other again only if circumstances allow.

The first year I sat as a faculty member in graduation, I was profoundly moved by watching the festivities around me but even more so by the embraces, photos, and introductions to families and friends who were there to celebrate a great accomplishment. Those are great memories and for those whom I stay in contact with, across many industries and parts of the world, these relationships have grown even deeper. Ultimately, graduation proves to be a very bittersweet experience for us all.

So to all of our pending graduates I say to each of you ‘well done!’ Finish strong in these final days and know that many of us are praying, supporting, and hoping the best for you both now and in the future.

Sincerely,
Randy Ataide
Executive Director

Cathy Gallagher – Director
Commencement truly is a bittersweet moment for us as we have been blessed to get to know many of you in different settings and on varying levels. We are so excited at what the future has in store for each of you, yet saddened by the thought that life may somehow get in the way of continuing the relationship we have worked so hard to build. Please know nothing give us greater joy at the FBEI then when we reconnect with our alums, whether it be a week, month, or year after they graduate. We want to maintain contact with you, have coffee, lunch, take a moment to catch up on what is going in your life, and celebrate accomplishments with you. We want you coming back to give a bit of yourself, share your experiences with those who are following behind you, and provide connections within your own network, or tap back into our network. So as you go on your way, wherever life is taking you beyond PLNU, take a moment to look over your shoulder now and again and say hello to those who remember you, brag about you, pray for you, and wish you well.

Lynn Reaser – PLNU Chief Economist
You are entering a world that holds both unprecedented opportunities and challenges.  Stay true to your values and you will never go astray.  Strive for excellence and work for a better world.  We are extremely proud of you.  Stay in touch and know that we will be here for you.

Dieter Mauerman – Economic Research Assistant
We are proud of each of you. In your future careers make the most of each opportunity you are presented with.  Don’t be afraid to go against the norm and be yourself.  Relationships made in school are often times the most rewarding, so come visit us and don’t forget to stay in touch.

Emily Gallentine – Manager
Over the past year as Manager of the FBEI, I have gotten the sincere pleasure of walking with many of you through opportunities, successes, trials, stresses, fears, and professional growth. At the FBEI, we get the distinct joy of completely understanding what our business partners mean when they say to us, “There’s just something about those PLNU students.” “That something” they are speaking of will take you far in life. We are proud of you and are honored to know you. Although this time is bittersweet for us all, we continue to be your biggest fans and will be here to support you today and in the future. Best of luck and congratulations PLNU Class of 2012!

Structural or Cyclical? Or does it even matter? (#2)

By: Randy Ataide

A recent post provided some initial thoughts upon our return from the National Association for Business Economics annual policy conference in Washington D.C. I have enjoyed my times at these conferences the past few years, but am enjoying it much more since we have been joined with energetic, fun and very intelligent PLNU MBA’s. There is something about young professionals and executives walking into a business or economic seminar or event that electrifies a room.

I wrote of my great fear of long term unemployment and the toll it is taking on our nation. Listening to Fed Chairman Ben Bernanke, I firmly agree that in moving forward towards prosperity, the economy must grow more rather than only focusing upon cutting and trimming. If not, we risk the vicious convulsions racking much of Europe these days. And I think this is true not only of nations but of many other organizations, for profit and nonprofit alike, small, medium or large in size.

In any organizational context, it is important to realize the difference between prudent stewardship and resource accountability and leadership vision, strategy and action. While these practices are related, too often the former dictates the latter. It is analogous to allowing a Human Resources Department to have disproportionate power in a company. While the standardization of practices, policies and procedures is a worthy goal for a company, HR must be there to support the organization rather than drive the organization. Too often, constraints placed by bureaucrats stifle and choke off innovation, entrepreneurship, creativity and in the final analysis, company growth. When stifling agents and activities choke these critical activities off in companies, we find that it matters little if a downturn like we are currently experiencing is structural or cyclical. It matters little if it is a large nation, public corporation a university or a micro-enterprise—the diversion of personal and organizational energy into such activities leads to low growth.

Last Wednesday night, I had the pleasure of hosting the 2011-12 PLNU Entrepreneur Enrichment Program, and listening to 12 young entrepreneurs and their mentors and advisors speak of the transformative process of taking an idea through the project and planning stage.  (For more details see). Entrepreneurs care less about cyclical or structural patterns and cycles, for they seek to create their own opportunity, win or lose. Entrepreneurs such as Arthur Cachero, Jamie-Lee Kwai, Ryan Baer, Ashton Runyon and all of the others who completed the EEP are inspirations to us all. All of us, including Mr. Bernanke and the rest of our political, business and economic leaders, should take a cue from these aspiring change agents, for they seek to create their own opportunities, rather than to ponder the questions of cycles or structures, or make time for the bureaucrats and technocrats. I say to each of them, forge ahead into the positive and prosperous future you seek.

Why I Teach?…Professor Randy Ataide unpacks his journey and shares his joys of teaching

In late 2004, Dr. Bruce Schooling, then Dean of the Fermanian School of Business, asked me if I would consider teaching the second half of a management course for MBA’s. At the time, I was the CEO of my own agricultural company near Fresno and while the thought of teaching was appealing, I had serious questions regarding my capacity to be able to succeed at teaching, let alone the 640 mile weekly round trip from my home. Preparing a syllabus and laying the theoretical foundation for a class was completely new to me, as were all of the many other things needed to teach. At a deeper level, I wondered if I could translate my own experiences in business and entrepreneurship to the classroom level.

The course turned out to be exhilarating (at least for me!), and even the long solo drive provided a respite from the burdens of the company and its many functions, initiatives, and burdens. At the completion of the course, I had built some excellent relationships with students which inspired me to seriously consider the possibility of joining PLNU full time, leading to a decision within the next year to move to San Diego. Since then, I have been busy with many tasks and responsibilities, but I have also taught a significant number of courses at both the MBA and undergraduate level.

This past Wednesday, I arrived at my office at PLNU and the flashing red light of my office telephone was informing me of a voicemail. Entering my code, the steely mechanical tone of the automated system was replaced by an exuberant voice of an MBA that I quickly recognized. She proceeded to report in enthusiastic terms how she had taken the principles learned from our Negotiation Strategy and Value Creation MBA course, and applied them into an employment setting. She explained that these skills had enabled her to successfully negotiate a new position that met or exceeded her personal and professional goals and expectations. In a most gracious and affirming way, she thanked me for the knowledge learned.

I recall coaching Little League many years ago when our son was young, and my initial year our team, despite our best efforts, went 0 and 16. Every time we were near a win, the opposing team, not wanting to be the first to lose to us, would quickly shuffle their lineup late in the game and bring in their ‘Ace’ to overpower our young hitters. With two close friends as fellow coaches, we worked hard to keep our boys encouraged and build skills throughout that long season. Morale remained high and the following season we won many games and finished second overall in the league tournament. The memories of those boys and coaches and the mutual encouragement we provided each other stay with me to this day.

There are days when I wonder why I teach, for I may be very busy or tired or stressed out (or some combination of all of these.) I question my effectiveness and after the class is completed I have doubts if I have been able to provide to the students information, knowledge, and skills that are of use to them, both now and in the future. Like my Little League team, I know that we often do not see an instant uptake, but with time the opportunity for a positive result increases. The unexpected phone message this week, just like the regular cups of coffee and conversations I have with a number of alums, or the visit I had last week in L.A. with a couple of young entrepreneurs from my class in 2006, are all examples of what provide me the continued energy to stay in the classroom. At the end of the day, they are all reminders to me of why I teach.

The Secret to Success: Silencing the Snooze

By Randy Ataide

Often when I travel, I find myself in an airport bookstore wandering the aisles. While I am an avid user of eBooks and other technological innovations, I do enjoy seeing what is currently being published and pushed to the mass markets. The blaring headline of “Ten Quick Steps to Success” or “Become a Real Estate Millionaire with Nothing Down!” usually upset my stomach, as little more than thinly veiled scams. Ugghhh!

Students, alumni and others in business frequently ask me about personal and professional success, and while this is not a topic that I have done any amount of research on, I do believe that there are certain things that any person can do which usually has very positive results. In fact, I can say that among most successful people I know, they often share one thing in common more than anything else. It is not the status of your university, a  specific field of study, grade point average, gender, socio-economic background, geographical location, career path or any of the “usual suspects.” It is something much simpler and much more accessible and attainable by anyone.

We have all heard the famous quotation of Benjamin Franklin “Early to bed, early to rise, makes a man healthy, wealthy and wise.” Perhaps our parents or grandparents recited this short proverb to us, and anyone who was raised in a farm community knows that this is near gospel to those populations. But the philosophical foundations of this traditional wisdom run much deeper, for Aristotle wrote “It is well to be up before daybreak, for such habits contribute to health, wealth, and wisdom.” In many religions the spiritual value of the early morning is at least one area in which we find much agreement. This time has been called “the heroic minute” and it is likely that Jesus often went early to find solitude to pray, think and meditate.

My students and peers at least appear to be surprised when I tell them I was a slothful and unmotivated youth, a poor student and with little life direction. At the age of seventeen, my own body clock altered, and four years in the military only reinforced this discipline. For nearly forty years, I have been a notorious early riser (you should read some of the comments I receive from people who notice the time stamps of some of my early morning emails!) I find this to be a superb time of reading, writing, thinking, praying and looking ahead to my day. The great value in having several hours of absolutely uninterrupted time cannot be overstated. Ben Franklin offered another bit of wisdom of well: “The early morning has gold in its mouth.” My own experience is that while this may not be literally true, the early morning does give one a great competitive advantage, a head start to the day in productivity which most others cannot catch up to through the rest of the day.

Recently, I have met with several young professionals, each in very different fields and all in the mid to later twenties. Without any prompting, all told me that they are rising earlier and found much of what I wrote above to be true. I have great confidence in each of them achieving their own level of success. My advice to you? Save your money on the slick airport books, lectures or other systems of success. Simply set the alarm clock, brew some coffee, and start your day!

The Other Gold Rush

By: Randy M. Ataide

Much has been made of the huge rise in commodity prices in the past few years, with prices of gold, silver and other precious metals dominating the business headlines, and many people cashing in through the proliferation of “We Buy Gold!” shops seemingly sprouting overnight throughout the country. But there has been another “gold rush” occurring in our midst, one that is just starting to get the attention of people outside of the industry.

According to a recent report by the Federal Reserve Bank of Kansas City, U.S. Midwest farmland rose over 25% in value, and some states exceeded single year price increases of 40%. This was the highest price rise in farmland in the U.S. in the survey history, and some reports pegged individual sales of Midwest farms at $20,000 per acre. For California’s own massive farm region of the San Joaquin Valley, booming exports of almonds, walnuts and other commodities has driven this land significantly higher as well, while at the same time, regulatory and water limitations have only served to make existing land and farms even more valuable. In the past ten years, California coastal lands in Santa Barbara, Santa Maria, Paso Robles and other areas have seen explosive price growth as a major wine industry has emerged, turning former idyllic ranch and grazing lands long overlooked by most into the “new Napa.” (There are now well over 200 operating wineries in the Paso Robles/Templeton/San Luis Obispo region.)

For those of us in the coastal regions, such prices would hardly catch our eye, and seem like a bargain. Imagine your own twenty acre spread in San Diego for a mere $200,000? (Can anyone say ‘Green Acres?) But for those in agricultural production (farmers), lending (bankers), services and supplies (tractor and track sales), etc., this is an alarming state of events. In any region, the escalation of farmland prices is always a very mixed blessing for the local farmer, for while it does indeed give them a bump in their “paper wealth” it typically makes it more difficult to obtain financing and operating loans and can distort the long term view of farming through enhanced competition from speculators and outside investors. How does an agricultural banker provide long term stable funding to farmers when speculators push the price upwards for the underlying asset being collateralized?

Over the past month or so, I have seen several investor newsletters that counsel their clients to consider purchasing farmland as an alternative investment, providing a tangible asset for the savvy investor in turbulent times in the global markets. As an opposing view, I would counsel caution for such investments. There are so many variables in the proper valuation of farmland, with the essential need for local knowledge often missing as to a particular parcel’s actual viability and suitability for production in these investor solicitations. In any particular area, even adjoining parcels can have very different values for reasons only accessible to a careful and experienced eye.

In my own business and investment experience, I think that farming is best left to farmers. If the bug hits you in 2012 to acquire some real estate, I would look first to opportunities closer to home, perhaps an undervalued and distressed residential or commercial property where information, knowledge and variables are better understood.

The Death of Europe?

By: Randy Ataide

Crazy talk, right? I was meeting with a Portuguese friend a few days ago, and this is what she asked me. Well, actually, it was more of a statement. This was the second time on this trip that I heard this phrase from two different people. I don’t think we have heard much along these lines back in the U.S., but then again prior to coming to Europe I had not heard serious conversation of the end of the Euro as common currency. That is now being openly discussed in many areas of public and ordinary life.

Most of you know I have been in Europe for November and for a few days into December. I have had the opportunity with a group of PLNU MBA’s and colleagues to visit Portugal, France and Germany, and discuss the current Euro zone (and world) crisis in great detail with both experts and ordinary people. The news here that we accumulated this past month has been far more sobering than I expected and understood from my perspective in San Diego.

Rather than attempt to provide you with some great economic and business details and projections (I think we all know someone who can do this far better than me!), I thought I would share some snippets of conversations which I have recorded below. These may give you some idea of what is happening here. I hope you enjoy them and find them interesting

“The contagion is here and spreading.” – OECD Chief Economist to the MBA group, 11/21/11

“I object to the German and French Dictatorship.” – Portuguese political leader, morning news, 11/29/11

“People here have long concluded that a single Euro for the Euro Zone cannot continue.” – Portuguese man, 11/7/11

“The Italians are being bailed out. What is next?” – Overheard from two elderly Portuguese women on a street corner, 11/28/11 (It is somewhate shocking to be seeing economics being talked about by elderly people normally thinking about the fresh fish at the market.)

“You Americans get what you pay for. You are an untaxed country.” – Economist from the University of Paris II, 11/21/11

“The primary reason the EU and the Euro was created was to stop wars in Europe. If we lose the Euro where do we go?” – Said by a Parisian economist to us, 11/21/11

“The Germans took nearly 100 years to repay their debts from WWI to the Allies. And then they corrupt us with easy money that they want repaid in three to five years. How is that fair?” – Said to me in private conversation by a Portuguese woman on 11/28/11.

“The future is the relationship between the United States, Germany and India. This is the only power that can stand against the Chinese.” – Said by a German University leader in Stuttgart to me, 11/8/11

“Brazil? Wait two more years until the World Cup and Olympics passes. Then you will see the bubble deflate there and wreak havoc on the high-flying Brazilians.” – Said to me by a Lanaguage Instructor, 11/29/11

“Yes, we have fine roads and bridges, but there are no businesses and commerce to support them. We are like a child given a pair of oversized basketball shoes to grow into but we have no ball to play with. ” – Lisbon CEO comment to me over lunch, 11/29/11

“The EU provided us much but the price we paid was abandoning our industries such as fishing, clothing and cork. Now what do we do?” – Said to me by a Portuguese man, 11/25/11.

“It is feeling very much like the 1930’s in Southern Europe. We see the rise of the German power in the North and it concerns us. The future is so unknown.” – Two Portuguese men, said to me on 11/5/11.

Q&A with Dr. Lynn Reaser for Recent College Graduates

by: Dr. Lynn Reaser

Q: If I’m a graduating college senior and can’t get a job in my field, should I go on to graduate school this fall? The alternative is getting a job in some other sector in the meantime and at least gaining work experience.

A:  Yes.  Although there is no guarantee, the job market should gradually strengthen over the next two to three years.  More education and training could give you the competitive edge.   To further enhance your resume, gain some work experience in the summer or while in school either on a paid basis or as an unpaid intern.  Your school or work decision should, however, consider your financial situation.  If you are already encumbered with a large student loan burden, the addition of more debt for graduate school could become unwieldy.  In that case, taking a break to earn some money might be a prudent decision.

Radical Biblical Economics at PLNU?

By Randy M. Ataide, JD 

All of us have seen the humorous commercials for a major credit card company with the burly Vikings placed in various situations but always closing with the catchy question/slogan “What’s in Your Wallet?” In the next few months, the PLNU community will have multiple opportunities to enter into not only the “what” of your wallet, but also the why, how, where and when of our wallets as well.  

In April, PLNU’s Center for Justice and Reconciliation will be hosting Ched Meyers, a biblical scholar and popular educator. Meyers is a noted author, organizer and advocate who has for 30 years been challenging and supporting Christians to engage in peace and justice work and radical discipleship. At chapel and at Brewed Awakening, Ched will interact with the PLNU community about his vision of compassion, equity and justice, utilizing the gospel of Mark and his own experience in the founding of Bartimaeus Cooperative Ministries committed to mutual aid and discipleship. His writings and language are freely sprinkled with terms such as radical economics, ecojustice, jubilee and other phrases all of which are concepts and recommendations that are uncommon to most conversations on economics.  Undoubtedly, PLNU’s time with Meyers promises to be provocative, insightful and challenging. (For more information on the Brewed Awakening events see http://www.pointloma.edu/experience/academics/centers-institutes/center-justice-reconciliation/brewed-awakening/spring-2011-schedule)

But how should Christian businesspersons and economists respond to Meyers? While at the present time I am drawing no personal conclusions as to his views, as a member of the School of Business faculty at PLNU and an entrepreneur and businessperson, I must admit that I often wince when I hear church leaders, pastors and theologians speak on business and economic issues. While they may properly identify an unjust situation and experience, frequently I think that they show little understanding of practical economic realities, especially when it comes to the operations of businesses and the decision-making processes that we use. All too often, sharp lines are drawn as if Christians engaged in business are not “fully” Christians, and that such efforts and endeavours are far apart from “God’s work.” This concern led me to present a paper titled A Transformational Undertaking: Entrepreneurship and Economic Freedom that challenged some fundamental notions and understandings of radical and jubilee economics at the Prophetic Imagination Conference held at PLNU in 2010. (A version of this paper appeared in the Fall 2010 PLNU Viewpoint.)

In the book, Church on Sunday, Work on Monday, Dr. Laura Nash of Harvard Business School and Scotty McLennan, dean of religious life at Stanford University, suggest that business and economics is not as simple as religious leaders tend to think it is. Capitalism is frequently reduced to a monolithic concept labeled as “The Market,” that inevitably exploits all participants except the most powerful. In my own experience, misconceptions about the marketplace create hurtful and inaccurate stereotypes that portray even Christian businesspeople as uncaring, unthinking, exploitative, and unengaged. Events of the past few years that led to a global economic crisis certainly do need examination and critique, but we should work towards a richer and more accurate view of business and economics than is often portrayed – one comprising numerous relationships and actions, full of nuances and complexities.

Spurred on by this opportunity for the PLNU community to engage with Meyers, and with a desire to have a deeper dialogue on the important issues of personal and communal economic decisions and the results and effects of these decisions, not only will we have Meyers appear in several venues, other PLNU voices will attempt to expand upon Meyer’s message. Dr. Jamie Gates and I will appear in a follow-up chapel to discuss radical and jubilee economics, but more importantly faculty members of the Department of Sociology and the Fermanian School of Business will engage in a series of articles to appear preceding Meyers’ time at PLNU in April. Short opinion pieces will be written on a variety of economic issues including debt, vocation, justice and personal economic decisions which should provide many members of the PLNU community the opportunity to enter into this important dialogue. These articles should be appearing not only in The Point Weekly but in social media sites to make them widely available. There will likely be diverse opinions expressed on these issues providing for interesting reading but more importantly to provide time for personal and communal time of study, reflection, prayer and action.

Therefore, many of us are looking forward to participating in a vigorous yet temperate and gracious dialogue with Meyers and others and sincerely believe that this is an important topic for all of us at PLNU. I am grateful to Dr. Jamie Gates and PLNU for their leadership in bringing Meyers to PLNU and also for Dr. Mary Paul and Mark Carter for seeking to broaden the economic conversation, creating a great opportunity for students, colleagues and friends to share in this very important issue that affects all of us.

Used Tires, Good Intentions and Unintended Consequences

 By Professor Randy Ataide

Over the Christmas holidays I read an interesting article by Victor Davis Hanson, a retired professor of the classics at CSU Fresno, a fifth generation raisin farmer in Selma near Fresno, and a Senior Fellow at the Hoover Institution with a strong historical proclivity.  He is a thoughtful and practical scholar who has not lost touch with the land his Swedish ancestors helped settled in the late 1800’s.

The article is titled “Two Californias” and can be found at http://www.nationalreview.com/articles/255320/two-californias-victor-davis-hanson?page=1 I heard Dr. Hanson on a LA radio station discussing the article, and he is equal parts wistful and insightful.

This is an important piece for those of us in and outside of the business school and community. Tomorrow, the Business & Economic staff (joined by the indubitable Jose Munoz of our MBA program), travels to Selma  (the epicenter of Hanson’s article) and then later in the day to Porterville to provide two separate Central Valley economic forecasts for hundreds of farmers, bankers, real estate professionals and residents of the region.  What Hanson writes about is the regulatory environment that has overtaken our great state. Driven by the political and demographical realities of the much richer and populous coastal regions, the Central Valley of California, the breadbasket of the world, has been in a “whipsaw” for many years. Let me share a very brief personal illustration of the reality we face in the Valley, having farmed there for many years.

For many years, people dumped their worn out auto tires at the local landfills as general waste at a very low cost. Laying aside the impossibility of tires decomposing naturally, with time these tires would work their way to the surface and just create more problems for the landfill. Alternative industries such as shredders and fuel extractors tried to get involved, spurred often by short-term congressional programs and tax breaks. Massive piles of tires would sprout up throughout the Central Valley, with millions of tires now creating a fire and sanitation hazard. (The refuse, from benign ordinary waste to toxic sludge of the major population centers frequently ends up in the Central Valley. Out of sight, out of mind.)

So what to do with a widely used discarded product required by all citizens, no longer wanted by the municipal landfills? As the price of waste services went up and the restrictions on what could be legally dumped increased, the price of dumping a single tire went from a few cents to a few dollars (as high as $5 or more depending on the size and type of tire). The result, at least where I come from, was predictable: inhabitants of the Central Valley began to dump their tires (and much more) at places other than the authorized dumps. The small llanteras (tire shops) that dot the Valley would undercut the chains and the evil “big box” stores with no used tire fees, and one had to wonder where those piles of tires went that were being piled up behind the shops, homes and corners. (A topic for another day, but if you remove the dreaded “big boxes” from the Central Valley you will see great economic devastation and deprivation; Valley people often don’t have the economic luxury of shopping at Vons or Save Mart, let alone Whole Foods, Henry’s or other sources. They are worried more about affordable milk and toilet paper more so than organic Belgian Endive.)

From personal experience, I know where these tires went all too often. For those of us who own farms in the area, the higher the regulatory burden and fees rose on waste, the reality was that garbage, including tires, car batteries, mattresses, diapers, toys and much more, would appear on our properties overnight. I have friends who awoke to find piles of tires on their ranches. I woke up to the joy of multiple used mattresses and sacks of discarded Christmas toys, with some bags of wet garbage as a bonus. Did I mention pets? I woke up to more puppies and kittens dumped in my driveway over the years, and then I had to deal with the cost of someone else not wanting an unwanted litter. I guess people figure most farms want twenty or thirty dogs to feed.

Who is then responsible for the abuse of the farmer’s property? Of course, it is the farmer. He or she would have to remove the debris because the County agency, if notified, would promptly want to issue a fine to the farmer for an illegal dump. Most of us would promptly clean it up, at our own expense and time sorting through disgusting debris to keep our own properties clean.

The economic realities of the past few years has now only accelerated this problem. While we in the large cities, far from the site of where most of our food and fiber is grown, debate the merits of what in my mind are sometimes dubious environmental benefits at high costs, the reality of the hundreds of thousands of people in the Central Valley grows further apart from what we live in. One more regulation here often means one more violation there. It is like squeezing a hose.

Regulations on business have by many accounts nearly destroyed the existing manufacturing, agricultural and light industrial base of California. While we all need to envision and work towards a sustainable, green and far better future for not only us but our children and grandchildren, my opinion is we should not do this in a way that ruins the present. In my 25 years of farming, I personally experienced a “quiet revolution” in the use of harsh chemicals and pesticides in farming from my father’s generation to mine, done widely  but without publicity and fanfare, and these transitions can be done. But Sacramento and a population that views food and fiber production from a  idealistic results perspective and not from a production reality is destroying the Central Valley. We are soiling in our own bed.

As an entrepreneur who worked in a sector of agriculture that was devoid of the farm subsidies that many other commodities have, I have long maintained that there are two things that our nation cannot afford to lose to other countries: national security and food. While we can have a discussion that cars, computers, clothes and many other goods and services are fungible goods open to the forces of the free market, when we move our food and security offshore we lose our sovereignty and capacity to exist as a free nation.

The Tough Art of Recommendation Letters

 By Randy Ataide

One of the “joys” of being in business for many years is the task of writing recommendation letters. Even if an employee was less than stellar, one can usually find a way in which you can diplomatically write a letter which delineates for the careful reader what is being said. There is no standard format to follow in such situations, and in large part the ability to write, read and interpret such letters and recommendations is an art and skill that comes with experience. Our tendency should always be towards grace in both composition and interpretation, but within limits. It is a difficult but necessary skill in business.

As an attorney, this situation is analogous to that of the testimony of witnesses—one needs such testimony to provide commentary, observation and opinion as to a specific event before the bar. And such testimony, when unbalanced by either understating or overstating what actually was observed, can seriously erode the process and search for truth. It is the same for recommendation letters for employment. Some years ago my partner and I made a multi-year contractual employment decision on an executive who turned out to not have the track record that we thought he had. It was a very expensive blunder made in part by recommendations that others made and our unwillingness to validate the recommendations.

Recently, I came across a publicly posted recommendation letter by one executive regarding a firm’s past senior executive who left a company after a few years of service. Both of these persons were seasoned professionals. Knowing some of the facts of situation I was surprised to read that the executive was, among many other stated attributes, “brilliant, respected, innovative, accomplished, entrepreneurial, and esteemed.” The letter was effusive and unhesistant in its praise of the departed executive; there was no possible interpretation other than that the executive was simply one of the finest, if not the finest, in the specific industry. It was not unreasonable to conclude that any company that would let such a talented star go was losing a formidable asset, when in my view, the reality was far different than stated in the recommendation.

This letter made me think about the many letters I have written myself and continue to write, most particularly for students of mine as they make their way from the classroom to the workforce. Do my words really count? Do I have a responsibility to inform the reader that the student performed well but not superbly? Is there a difference between good performance and excellent? Should other factors help shape my opinion and language used? Does overly stating the qualifications or performance of someone actually harm those who do perform in a superior way and deserve such recommendations?

The concern for the business community should be similar to that of many of our other institutions when attributes and performance is inflated and exagerrated. Certainly, everyone has an opinion, but I have yet to use in any letter for any person the phrase “esteemed” let alone “brilliant.” I am not categorically opposed to such language but want to be very careful when I would ever use it. (Similarly, my students know that I am a stickler when it comes to using the word “perfect” in a presentation or paper!) When does a recommendation pass from mere hyperbole to persuading a company to invest potentially hundreds of thousands of dollars on a leader who cannot lead? Is there a greater responsbility to the business community? I think so.

For me, this current situation is a good reminder of the importance of not overstating someone’s qualifications and performance, for an attempt to be “nice” can in fact do the opposite of what is actually needed in such situations. Sometimes, a person asking for a recommendation is far better served by taking him or her to coffee, talking about what went wrong or right in the past situation, and possibly offer wise counsel for how to improve in the future. Recommendation letters, especially for executives, are not participant ribbons handed out to grade school children with little consequence or long-term impact.