Have some extra cash laying around? Don't try and bring it to a bank

From today's NY Times a sign that perhaps for corporations and individuals that even caution, restraint, and endless 'waiting for more clarity before we do anything with our money', may also be losing effectiveness as a strategy or hedge against tough economic conditions:

The article titled: In Cautious Times, Banks Flooded With Cash, describes the plight of some bankers large and small from across the country that faced with shrinking interest rate spreads, (which reduce profits), general reduction in demand for loans and loan products, and a public increasingly seeking 'safe' havens for cash stores, have collected too much cash in the form of deposits, and are even beginning to refuse or discourage customers from giving them more.

From the Times piece:

Bankers have an odd-sounding problem these days: they are awash in cash.

Droves of consumers and businesses unnerved by the lurching markets have been taking their money out of risky investments and socking it away in bank accounts, where it does little to stimulate the economy.

Though financial institutions are not yet turning away customers at the door, they are trying to discourage some depositors from parking that cash with them. With fewer attractive lending and investment options for that money, it is harder for the banks to turn it around for a healthy profit.

So the banks, at least some of them as indicated in the Times piece, can't really make a meaningful profit with all the excess cash and deposits that have come in. While the piece doesn't really try to make us sympathetic towards the bankers and the banking industry, (good luck with that), it does at least seem to indicate that for a few banks anyway, they'd rather play by the rules and at least try to steer some deposits to more productive ends compared to pretty much driven down to zero return traditional deposit accounts.

While the safe havens for cash may not have stopped being safe, at least some of them have become unavailable due to overcrowding. 

The giant cash reserves that many US organizations are sitting on have been well-reported in the last year or so, but this is the first time that I've noticed reports that even the 'sit on all our cash until times get better' strategy might have some practical problems actually being executed.

If the local bank doesn't want your cash, then maybe just maybe, it's time to think of some more creative ways to use those 'unwanted' funds.

It's pretty likely at least one employee out there has a great idea for a new product, improved service, enhanced process - something that could use a little seed money to explore further.

I'll bet you have lots of loyal, solid performing employees that have not seen a raise or bonus of any kind in several years, they might find something to do with a few extra dollars around this holiday season.

And chances are about 100% if you have a job opening at your company you have no shortage of applicants. Hire the one with the best attitude and spend the money to train them how to do the job, rather than waiting for the 'perfect' candidate to walk in. 

The easiest money to spend is other people's money, I get that. But when even the bank won't take your money, it seems to me like their are lots of organizations that could use this advice.

Is your organization sitting on a pile of cash? What needs to happen to stop hoarding and start investing?

No manual provided

We are trained from a pretty early age to expect instructions, directions, user manuals, etc. for new gadgets, tools, and technologies we encounter; and even for new processes we are tasked with performing. What are the steps? What do I do first? And next? Where can I get help if it doesn't work? What are the twenty questions that the thousands of users that have come before me have asked, that the company has managed to nicely collect and list in the 'FAQ' section.Good luck with this one

Most of us, when we open the box containing a new little toy almost instinctively continue to dig into the packaging to find the little instruction card (often conveniently written in half a dozen languages), before we are willing to take our first, halting steps with the new gadget or product. I do it all the time myself, and for good reason, depending on the new technology, software program, or electronic toy, not understanding the basic operations and functionality can lead to a long, frustrating slog trying to conjure up the right series of steps to begin to see value from the new device. Who wants to spend time, money, and attention on some new tool or technology and be unable to get the thing to work right away.

But often the instructions, manuals, user guides, or in the workplace purview the tightly written 'do this exactly this way' document sometimes known as a 'job aid' have such a limiting effect on our ability to see and pursue potential alternatives or new use cases, that these documents effectively become limiters on our creativity.  The manual tells us exactly how to use the new tool. The FAQ not only answers all our questions, but makes us feel like there should be no other questions. The process steps become a cake recipe, leave out one item, or add a bit more of another, and who knows what might result - but one thing's for sure, the warranty will not apply.

When very young children get their first sets of building blocks or LEGOS, there usually are no instructions included. The child simply dumps out the collection of large blocks on the floor and starts using them. Sure, the 'designs' are usually simple and repetitive, but at least they are not prescribed. Once kids, particularly with LEGO sets, begin to progress and build more complex structures, detailed and illustrated building instructions are provide, often running hundreds of pages. You need to follow the instructions very closely to 'correctly' assemble the model, and even one small misstep can result in significant error requiring re-work later on to fix. Assembling one of the larger LEGO sets becomes an exercise in determination and discipline, ultimately kind of satisfying, but also sort of deflating, as by the end of the process all you have really done is to do exactly what was proscribed.

Eventually the 1,325 piece LEGO Milennium Falcon starts to fall to pieces from play, or storage or carelessness, and you're left with a massive pile of pieces, (mixed up with other pieces from other sets), and no real hope of re-assembling the model to its original state, as usually the building instructions are long since lost.

But I think we should see that outcome as much more hopeful, holding much more potential. If we did have all the pieces, and all the instruction manuals, most of us would probably just re-build the same model once again. With the instructions, that is all we could do.

Without the instructions, and without knowing if we have all the right parts, we'd suddenly be free to build anything.

Have a Great Weekend!

Need a Creative Solution? Check out the HR Happy Hour Tonight

It is just about the middle of summer here in the USA, the Major League Baseball All-Star Game was played earlier in the week, most of the country has been experiencing classic July sunshine and heat, and the latest installment of the Transformers movie franchise, a classic summer action movie, is dominating the box office. Due to staff vacations, distractions caused by the good weather, and from having the kids home from school, summer can also be a time where the pace of business slows down a bit, and individuals and organizations sometimes have a rare chance to reflect, recharge, and strategize about business and even personal problems that will have to be attacked in earnest in the Fall, (if not sooner).

Summer also gives us some license to explore and experiment. Traditionally TV networks have tested out new programs in the slower, (and less lucrative), Summer season in hopes of sorting out what might work in the Fall and Winter when audiences and ad rates both increase. Simply put, summer is about the only time all year many of us get to take a little breather, take some stock in what we are doing, (or not doing), and think about what we might want to do differently, or what challenges we'd love to address.

So tonight on the HR Happy Hour Show, we decided to do a bit of 'Summer programming' as well. Instead of another run at recruiting, or HR Technology, or management, or social media in the workplace, we are taking a bit of a diversion with a show called 'Creative Approaches', with our guest Matthew Stillman, author of the fantastic Stillman Says blog.

Matt offers what he terms, 'Creative Approaches to What You've Been Thinking About', by listening to the problems and concerns of everyday people, and via a process of discussion and exploration, offers what are usually challenging and intriguing options and opportunities to help his 'patients?', try and approach their issues.  The killer idea of Stillman Says, is the venue in which Matt conducts these sessions - a simple table and two chairs in the middle of New York City's Union Square. He then documents some of these conversations on the Stillman Says blog.

It really is a remarkable and compelling project, read a few of the stories on the Stillman Says blog and see if you don't agree with me.

So tonight on the HR Happy Hour Show - 8PM EDT / 5PM PDT, Matt will join us for the hour to offer 'Creative Approaches to What You Have Been Thinking About' - this is your chance to call in, tell us about a situation or problem - work, career, school, personal - doesn't matter, and let Matt work a little bit of his creative magic to brainstorm some creative options for you.

Problems with the boss? Not sure if you should pursue a new career? Have a great idea and just don't know how to execute? Call in tonight and let us know.

Here are the details to tune in tonight:

HR Happy Hour Show - 'Creative Approaches' - Thursday July 14, 2011 - 8PM EDT

Call in to ask a question - 646-378-1086

Follow the conversation on Twitter - hashtag #HRHappyHour

Listen live on the show page here, on the call in line 646-378-1086, or using the widget player here:

Listen to internet radio with Steve Boese on Blog Talk Radio

This should be a fun and entertaining show, and I hope you can take a break from margaritas on the deck long enough to join us. Actually, you should bring the margaritas, it is the HR Happy Hour after all!