What does a new Treasury Secretary have to do with Global Relocation?

Well, maybe a lot. What follows are some key excerpts provided by the Wall Street Journal that I've filtered to reflect his statements surrounding Europe and China. Or course, his influence will impact US relationships worldwide:

Paulson, in His Own WordsMay 30, 2006 12:26 p.m.
Henry Paulson, newly appointed to the job of Treasury secretary, has been a solid supporter of the Bush administration in commentary pieces published in The Wall Street Journal, the Financial Times and elsewhere. His arguments frequently also cite the benefits to Goldman Sachs, where he has been the sole chief executive officer since 1999. Below, excerpts.
* * *
On the pain and benefit of globalization
Today's global economy is in the midst of a period of … intense growing pains. The emergence of new technologies, more efficient global capital flows and production, distribution and servicing networks are converging to create new levels of competition and challenge our traditional notions of comparative advantage. … It is in America's interest to push for open markets that have the power to create new demand from consumers in emerging economies. (Full text)-- The Wall Street Journal, July 14, 2005

On Europe's failed deregulation, opposition to mergers
Europe must restructure its inadequate pension systems while finding the right mix of regulation and taxation. It needs less intrusive government regulation. It needs to liberalise and integrate its capital and labour markets and to promote development of continent-wide clearance and settlement systems. And it needs more accountable corporate governance. These are admittedly daunting challenges. Regrettably, it is unclear that Europe is willing to meet them. The failure of the European Takeover Directive squandered 12 years of efforts. Governments, including those in France and Germany, have recently taken some backward steps in deregulating labour markets. Even in the UK, there are worrying signs that regulation is becoming more intrusive in areas such as financial services, telecommunications, water and electricity. Moreover, mergers are under assault across the EU. There are, indeed, legitimate grounds for stopping some mergers; but the EU must be careful to avoid giving the impression of rigidity that risks inhibiting competition rather than enhancing it.-- Financial Times, Nov. 13, 2001

On how the U.S. will lose if it does not do business with China
Chinese economic reform has reached a milestone as PetroChina, the oil and gas company that is the flagship of Beijing's privatization program, has begun offering stock to the public. (Goldman Sachs was a proud underwriter of the initial offering.) Trading in the stock began last week on the New York and Hong Kong exchanges. … This entry of a giant state-owned Chinese company into the international equity market had been far from a sure thing. An array of special interests, led by labor unions, had lobbied hard against it, asking the Clinton administration, Congress and the Securities and Exchange Commission to prevent listing of the shares on the New York exchange. …If Congress turns down normalized trade with China, we are the ones who will be isolated. The rest of the world is eager to do business with the Chinese, and China will still be able to join the World Trade Organization. On the diplomatic level, a no vote would repudiate nearly 30 years of constructive engagement under Democratic and Republican administrations alike. -- New York Times, April 15, 2000

http://online.wsj.com/article/SB114900189210166357.html?mod=home_whats_news_us

Memorial Day

Memorial Day, originally called Decoration Day, is a day of remembrance for those who have died in our nation's service. There are many stories as to its actual beginnings, with over two dozen cities and towns laying claim to being the birthplace of Memorial Day. There is also evidence that organized women's groups in the South were decorating graves before the end of the Civil War: a hymn published in 1867, "Kneel Where Our Loves are Sleeping" by Nella L. Sweet carried the dedication "To The Ladies of the South who are Decorating the Graves of the Confederate Dead" (Source: Duke University's Historic American Sheet Music, 1850-1920). While Waterloo N.Y. was officially declared the birthplace of Memorial Day by President Lyndon Johnson in May 1966, it's difficult to prove conclusively the origins of the day. It is more likely that it had many separate beginnings; each of those towns and every planned or spontaneous gathering of people to honor the war dead in the 1860's tapped into the general human need to honor our dead, each contributed honorably to the growing movement that culminated in Gen Logan giving his official proclamation in 1868. It is not important who was the very first, what is important is that Memorial Day was established. Memorial Day is not about division. It is about reconciliation; it is about coming together to honor those who gave their all.
General John A. LoganLibrary of Congress, Prints & Photographs Division, [LC-B8172- 6403 DLC (b&w film neg.)]
Memorial Day was officially proclaimed on 5 May 1868 by General John Logan, national commander of the Grand Army of the Republic, in his General Order No. 11, and was first observed on 30 May 1868, when flowers were placed on the graves of Union and Confederate soldiers at Arlington National Cemetery. The first state to officially recognize the holiday was New York in 1873. By 1890 it was recognized by all of the northern states. The South refused to acknowledge the day, honoring their dead on separate days until after World War I (when the holiday changed from honoring just those who died fighting in the Civil War to honoring Americans who died fighting in any war). It is now celebrated in almost every State on the last Monday in May (passed by Congress with the National Holiday Act of 1971 (P.L. 90 - 363) to ensure a three day weekend for Federal holidays), though several southern states have an additional separate day for honoring the Confederate war dead: January 19 in Texas, April 26 in Alabama, Florida, Georgia, and Mississippi; May 10 in South Carolina; and June 3 (Jefferson Davis' birthday) in Louisiana and Tennessee.
In 1915, inspired by the poem "In Flanders Fields," Moina Michael replied with her own poem:
We cherish too, the Poppy redThat grows on fields where valor led,It seems to signal to the skiesThat blood of heroes never dies.She then conceived of an idea to wear red poppies on Memorial day in honor of those who died serving the nation during war. She was the first to wear one, and sold poppies to her friends and co-workers with the money going to benefit servicemen in need. Later a Madam Guerin from France was visiting the United States and learned of this new custom started by Ms.Michael and when she returned to France, made artificial red poppies to raise money for war orphaned children and widowed women. This tradition spread to other countries. In 1921, the Franco-American Children's League sold poppies nationally to benefit war orphans of France and Belgium. The League disbanded a year later and Madam Guerin approached the VFW for help. Shortly before Memorial Day in 1922 the VFW became the first veterans' organization to nationally sell poppies. Two years later their "Buddy" Poppy program was selling artificial poppies made by disabled veterans. In 1948 the US Post Office honored Ms Michael for her role in founding the National Poppy movement by issuing a red 3 cent postage stamp with her likeness on it.
Traditional observance of Memorial day has diminished over the years. Many Americans nowadays have forgotten the meaning and traditions of Memorial Day. At many cemeteries, the graves of the fallen are increasingly ignored, neglected. Most people no longer remember the proper flag etiquette for the day. While there are towns and cities that still hold Memorial Day parades, many have not held a parade in decades. Some people think the day is for honoring any and all dead, and not just those fallen in service to our country.
There are a few notable exceptions. Since the late 50's on the Thursday before Memorial Day, the 1,200 soldiers of the 3d U.S. Infantry place small American flags at each of the more than 260,000 gravestones at Arlington National Cemetery. They then patrol 24 hours a day during the weekend to ensure that each flag remains standing. In 1951, the Boy Scouts and Cub Scouts of St. Louis began placing flags on the 150,000 graves at Jefferson Barracks National Cemetery as an annual Good Turn, a practice that continues to this day. More recently, beginning in 1998, on the Saturday before the observed day for Memorial Day, the Boys Scouts and Girl Scouts place a candle at each of approximately 15,300 grave sites of soldiers buried at Fredericksburg and Spotsylvania National Military Park on Marye's Heights (the Luminaria Program). And in 2004, Washington D.C. held its first Memorial Day parade in over 60 years.
To help re-educate and remind Americans of the true meaning of Memorial Day, the "National Moment of Remembrance" resolution was passed on Dec 2000 which asks that at 3 p.m. local time, for all Americans "To voluntarily and informally observe in their own way a Moment of remembrance and respect, pausing from whatever they are doing for a moment of silence or listening to 'Taps."
The Moment of Remembrance is a step in the right direction to returning the meaning back to the day. What is needed is a full return to the original day of observance. Set aside one day out of the year for the nation to get together to remember, reflect and honor those who have given their all in service to their country.

http://www.usmemorialday.org/backgrnd.html

ERC will keep you busy

Well, I should know better. I had visions of multiple daily blog reports from ERC but here we are post-ERC and I'm catching up. This happens every year, I anticipate a nice lazy pace, catching some sessions, catching some sun...it never works out that way.
Always running into someone and often that run-in requires some sort of follow up so at the end of every day, in addition to the regular work neglected there are additional things to do.
No worries, Orlando was time well spent this year. Here's a brief recap of some of the sessions:
Fundamentals - missed it, heard mixed reviews, "too basic" "just right"
Policy - good content, good corporate client perspective, boy there hasn't been much "new" to policy in years
Tax and Legal - just caught the end, well attended and well received
SLA's - best takeaway, escalating SLA's due to implementation and relationship growth, funniest observation, clients struggle with keeping SLA's simple and succinct
Anyone There on Moving Day - lots of people here for a Friday am session, no doubt HHG continues to be the area where ee's and relo mgrs feel the most pain and require a "new" solution
I missed the infamous Oakwood party and did not hear any reviews yet. Hoped for changes...I understand the need to not mention vendor names in sessions/presentations, but also it can be so restrictive at times that it hinders a real "meat and potatoes" discussion. Maybe a happier medium than what is allowed today exists?
Now, "vacation" over...back to the mine.

Live from Orlando...

ERC kicked off to a good start last night. I have not seen anyone get eaten by a gator yet (http://www.foxnews.com/story/0,2933,195851,00.html), but I was keeping my eyes peeled, there were a lot of "sharks" around last night at the start of the ERC convention:)

It seems to me that the exhibit hall (aka "shark tank") is smaller and/or less companies here, but when I asked around, some long time ERC'ers told me its about average. A big presence, Stewart Title (www.stewart.com), no surprise since they have a lot of customers here.

Also, it sounds like there were more than a couple companies "breaking" the no-parties on Wednesday night rule. As a rule, ERC asks that companies all host their client events on Thursday, most comply, but there were a couple I heard who went ahead and had their events last night (thereby removing their corporate clients from the first night vendor parade).

I did a straw poll of realtors I saw last night. Almost to a person, all confirmed what the media's been hyping, varying degrees of "softness" in the real estate market nationwide. And, now it looks like rates will go up again (http://markets.usatoday.com/custom/usatoday-com/html-story.asp?markets=Domestic&guid=%7B17D1B7BC%2D52A1%2D4EF8%2D9215%2D7BAECAB2C98F%7D). Meaning, some adjustments in our industry, more inventory homes, perhaps less homeowners initiations. But I also think that changing dynamics already underway are well suited to a less frenzied real estate market (like the silent but growing us of temporary domestic assignments).

I'm skipping the kick off speaker right now (guys got to get some work done some time), but will share a post about any and all sessions I get to attend later today.

Shootout question: What does the World Cup have to do with Corporate Relo?

Nothing...and everything. First, a disclaimer, soccer (aka football) was never my first sport nor is it one that I follow most closely (hockey..but please don't ask about my Red Wings this year). But, that soccer doesn't make my world turn puts me in the minority compared to the rest of the world. Soccer (football) is the world's most popular professional sport (http://www7.nationalgeographic.com/ngm/0606/feature1/). The 32 countries in contention for the world cup, plus many others across the globe will be fixed to their televisions, radio's and newspapers this summer to cheer and pay close attention to every development (the whole thing begins in Germany on June 9th).

And how does it relate to relo...everyday we move ten of thousands of US citizens to other parts of the world (aka expats) and every day we help companies move tens of thousands of foreign nationals to work and live in the US, and to most all of those folks, its a good bet World Cup soccer is very important.

As a result, I'm replacing the normal link to China Daily (over on the right of this page) to a World Cup link for the duration of the event. For those of us who deal daily with transferees and vendors and clients whose personal satisfaction will rise and fall on the number of goals scored and shots stopped by their team! USA's first game is June 12 http://www.ludustours.com/wcschedule.htm

Arrrrg and ERC in Orlando

When's the last time you wrote something, edited it, read it, left it, came back to it, then went to use it and *poof* it was gone. Either not saved or corrupt or *poof* That happened to someone I know yesterday and I remember thinking "why weren't you saving your work." Well, Murphy's Law triumphs again and I just experienced it myself. Shame, shame, shame.

ERC's national convention http://www.erc.org/news_events/nrc06_session_topics.shtml is nearly upon us, do you have all of your parties lined up? Of course you do, now its time to look at the sessions. I'm excited by some of the topics and it looks like there will be some "teeth" to some of these sessions. I hope that the reality proves worthy of the descriptions. There's nothing worse than when you are anticipating a lively discussion and everyone up on the panel talks real nice-nice. Here's a couple that have caught my eye:

Putting All the Pieces Together – Policy Design and Balance**

Thursday, May 18
10:30 a.m. – 12 NoonThis session will help you achieve a deeper awareness of how policy pieces fit together, and will discuss balancing the full program versus just looking at each component of your policy individually on a cost vs. culture basis. Attendees will develop a deeper understanding of how all policy components fit together to ensure the greatest return on spend and achieve the intended corporate goals and objectives. Learn what drivers affect balance and how to address these issues. Discover ideas and strategies to ensure solid solutions in meeting relocation goals when designing your policy and program delivery.

Will There Be Anyone There for your Transferee on Moving Day?**

Friday, May 19, 2006
8:30 – 10:00 a.m.As capacity shrinks, and direct costs increase, many household goods service providers are becoming more selective as to where to commit their resources. Discover the ramifications of pricing, policy, and process decisions on your ability to find services for your transferees. This session will provide you with the tools to make your program attractive and ensure the highest quality service available in today’s competitive marketplace while meeting your corporate objectives.

Both seem to me very pertinent to large and small relo programs, as well as US and Global.

In case you are not able to attend this year (I know a lot of people not coming, due to travel budgets, time constraints and/or they don't want this to be the one relo industry trip they take this year). Regardless, I will be doing my best to blog from the convention. So keep an eye out for my field reports. And if you want me to keep my eye out or ears open for something in particular, then let me know.

A thoughtful article on implications of pandemics

From our friends at SHRM, good reading.

http://www.shrm.org/hrmagazine/articles/0506/0506cover.asp

Why don't we hear more about pandemic flu at ERC and other industry resources?

I think, unfortunately, pandemic flu or something like it is going to have huge impact on our industry (remember SARS, that was nothing compared to what may happen with Asian bird flu). Funny I don't hear it discussed much, perhaps we are all too busy on the current moment and unable to spend time preparing for things that may or may not happen. From the information I've heard, its not a question of "if" but rather "when." If you have any good information on the relocation industry's attention/thoughts around preparations for pandemic flu, please let me know. Here's an article from Watson Wyatt on the subject of whether companies are creating plans to prepare for it or not:

Companies Preparing for Avian Flu Across the Globe, Watson Wyatt Survey Finds
WASHINGTON, March 21, 2006 –
Multinational companies are taking steps in many parts of the world to plan for the possibility of an avian flu outbreak, a new survey by Watson Wyatt Worldwide, a global human capital firm, has found.
The survey of 90 multinational companies found that 52 percent of companies operating in Asia-Pacific are considering putting programs in place in that region to deal with the avian flu. Forty-eight percent of companies operating in the United States are considering such plans, as are 47 percent in Europe, 44 percent in Latin America and 42 percent in Canada.
Companies are much more likely to already have plans in place (32 percent) in Asia-Pacific to deal with the effects of the avian flu. Only 15 percent have plans in place in the United States, 11 percent in Europe, 10 percent in Canada and 9 percent in Latin America. In addition, about one in five companies is not at all concerned about the avian flu.


Greatly or Moderately Concerned About Avian Flu Plan in Place in Event of Outbreak
Asia-Pacific
74% 32%
Europe
45% 11%
Canada
38% 10%
Latin America
36% 9%
United States
34% 15%

“While focusing on Asia is a logical response to news of flu cases there, employers need to make sure they are considering the possible impact the avian flu could have on all regions,” said Robert Wesselkamper, director of international consulting at Watson Wyatt. “It pays to be proactive when dealing with a virus that could have such a big impact on the workforce.”
Companies also said they were far more worried about an avian flu outbreak in Asia than in other regions. A strong majority (74 percent) said they were concerned to a great or moderate extent about the impact the flu would have on their workforce in Asia-Pacific, compared with 45 percent in Europe, 38 percent in Canada, 36 percent in Latin America and 34 percent in the United States.
“A good first step for companies is to note what worked and what didn’t in their planned responses to past threats such as SARS,” Wesselkamper said. “Companies should also make sure to communicate their formal plans to manage through any business interruption — including alternative work arrangements and reimbursement for preventive and onset treatment — to the entire workforce, particularly associates responsible for deployment.”

About Watson Wyatt Worldwide
Watson Wyatt Worldwide (NYSE:WW) is a global human capital and financial management consulting firm. The firm specializes in employee benefits, human capital strategies, technology solutions, and insurance and financial services and has 6,000 associates in 30 countries. The firm is located on the Web at http://www.watsonwyatt.com/.
Contact
Ed Emerman, 609/452-5967, eemerman@eaglepr.comEmily Rieger, 703/258-7634, emily.rieger@watsonwyatt.com