Warhol Exhibit to Display the Business of Art

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Sarah Green of the Indianapolis Museum of Art discusses the upcoming Andy Warhol exhibit (beginning October 10), which will show the entrepreneurial side of the late artist. She explains he did not shy away from exploring the "comingling of art and commerce."

Our very own Tom Schuman delved into the issue with his article, "Business of Art: All $ign$ Point to Warhol," in the September/October edition of BizVoice.

Education: Adding It Up (2 + 2 = $)

They’ve tried it in Dallas, Chicago, New York and Washington, D.C. among other places. The results have been mixed at best. Overall, in this writer’s view, there’s something that just doesn’t feel right.

It, in this case, is paying students for academic performance. And it, in this case, adds the twist of rewarding parents with cold, hard cash if their kids pass certain math tests and if the parents go "above and beyond" by attending conferences with teachers.

Shouldn’t parents already have an interest in the education progress of their offspring? Shouldn’t students take the responsibility, with the help of their parents, to try and perform to the best of their abilities? I know the answer and also realize what should happen doesn’t happen all the time. But high expectations, in my opinion, instead of high rewards, would yield more productive results.

Your thoughts? Here’s an excerpt from the Houston Chronicle:

The Houston school board signed off Thursday on the $1.5 million program, which is funded by the Dallas-based Liemandt Foundation. The incentives will go to students and parents at 25 elementary schools that rank among the lowest in math achievement.

The pilot program — thought to be the first that offers joint incentives for parents and students — will allow fifth-graders to earn up to $440 for passing short math tests that show they have mastered key concepts, according to the draft proposal. Parents will get slightly less money for their children doing the work, and they can earn an extra $180 for attending nine conferences with teachers to review the youngsters’ progress.

Combined, the students and their parents can pocket $1,020.

Parents can opt out of the pay program, which also is expected to include money for teachers – up to $40 per student – for holding the parent conferences. The Houston Independent School District already has the nation’s largest program that rewards teachers and school staff for boosting students’ scores on standardized tests.

Nationwide, public support is low for school districts paying students for specific behaviors, such as reading books, attending class or getting good grades, according to the 2010 Phi Delta Kappa/Gallup Poll. About one in four Americans favor the idea. A similar number said they had paid their own children for academic accomplishments.

The Houston program appears to be based on the Dallas work. Second-graders in Dallas were paid $2 for each book they read once they passed a simple quiz to confirm they had done the reading. A study found that the students who were promised money improved in reading comprehension and language more than those who weren’t offered the reward.

The idea of paying parents intrigues Dan Ariely, a Duke University professor who studies human behavior, but he said he expects little long-term benefit from the cash rewards for students.

"The parents actually have some control over the kids," he said. "They can tell the kids to study."

For the students, he said, the monetary incentive will do nothing to instill in them a love of learning. "What is questionable is whether you could create short-term learning or not," he added. 

Indiana Senate Race Getting National Attention

Shailagh Murray of The Washington Post has an interesting article today about the Coats/Ellsworth Senate battle for Evan Bayh’s vacant seat. The piece focuses on Ellsworth, and raises some real questions regarding whether or not he can overcome Coats’ early lead in the polls, or gain some much-needed name recognition by November.

Ellsworth, 51, has taken few legislative risks during his two House terms, sticking mainly to local interests. He ensured Indiana hardwoods were included as eligible materials for green building incentives in the stimulus bill. He helped to remove federal barriers that restricted the yields of Indiana tomato growers. He secured funding to improve the lock system on the Ohio River.

At the state fair, Ellsworth met local pork industry officials over a lunch of "garbage burgers," pork patties topped with pulled pork barbecue, and got an earful about a stalled trade agreement with South Korea that is worth about $10 per hog for Hoosier farmers. The officials didn’t understand why the Obama administration couldn’t get the deal done.

"I hear you," the congressman reassured Michael Platt, executive director of Indiana Pork. "But you’re seeing more and more Democrats open to trade agreements, provided they’re fair to American workers."

Ellsworth supported three pillars of the Democratic agenda – health care, the stimulus and the financial regulatory overhaul – but voted against the climate-change bill that passed the House last summer. He opposes abortion and federal funding for embryonic stem cell research. He won the endorsement of the National Rifle Association over Coats, who supported several gun-control measures during his tenure in Congress.

He favors extending the full menu of 2001 tax cuts that are scheduled to expire at the end of the year, including preserving lower rates for the top income brackets – a position that could put him at odds with Democratic leaders and the White House.

"In this fragile economy, although they did add to the national debt, now is not the time," Ellsworth said of the taxes in an interview last week between campaign events.

Yet he does not shy from his party affiliation. "We Democrats have nothing to be ashamed of," Ellsworth told 35 Democratic activists who assembled in Indianapolis on a hot weekday afternoon in August for campaign training. The dingy room was cluttered with binders, water bottles and telephone lines, the signs of a busy election office. Canvassing guidelines taped to the wall instructed volunteers to "knock and take a step back" and "bring dog treats."

So what do you think? Will party trending hurt Ellsworth in November? Does he have a shot to win?

Tax Issues Taxing Voters Across the Country

Statewide ballot measures are much more common outside Indiana than on Hoosier ballots. More than 140 such initiatives are being left to voters this fall, with significant fiscal consequences for many. The efforts include both tax increases and cutbacks:

Washington State is one of nine states without a state income tax. Bill Gates Sr., the father of the Microsoft founder, wants to change that. Gates is lending his high-profile name and influence to a ballot measure that would tax the income of individuals who earn more than $200,000 and couples who earn more than $400,000. His son — the world’s second-richest person — definitely falls into that category.

The elder Gates, who also co-chairs the Bill and Melinda Gates Foundation, says Initiative 1098 would generate $1 billion a year in new revenue dedicated to education and health care. He also says it would put an end to Washington being “the most regressively taxed state in the country.” If approved, the measure would gin up an extra $11 billion over five years by taxing 38,400 high-wage earners in Washington, while lowering certain business and occupation taxes and cutting property taxes by 20 percent. “The very future of Washington hangs in the balance,” Gates says.

Opponents of Initiative1098 contend the measure would open the door to taxing not just the rich, but residents who earn all levels of income. They also say the measure, if it passes, would eliminate a key advantage the state has to lure businesses. “Don’t Calitaxicate Washington,” they plead.

Washington is one of several states where voters this fall will weigh in on ballot measures that, if passed, would have enormous fiscal consequences. Voters in California, Colorado and Massachusetts will take up tax questions that could expand or shrink the foundations on which future budgets are built. Drama awaits on the spending side of budgets, too. In Arizona, voters could blow a $450 million hole in the state’s current budget if they reject two key measures this fall. And in Florida, voters will decide whether to save billions of dollars by relaxing limits on class sizes at schools.

In total, more than 140 statewide measures have qualified for the November ballot, according to the National Conference of State Legislatures. Stateline has compiled a guide to the most crucial ones to watch here.

Tully: Trying to “Primary” Lugar Would be Ill-Advised

Indianapolis Star columnist Matthew Tully penned a column today contending that if a faction of the GOP was to push for a primary ousting of Sen. Richard Lugar in 2012, it would be an ill-fated and ill-advised decision. He writes:

However unrealistic it seems, it would be foolish to assume any long-term incumbent is untouchable, given the mood of the voting public of late. And most Republican insiders I’ve talked to expect Lugar to indeed face a challenge from a faction of the GOP that thinks he’s been in D.C. too long and worked with Democrats too often.

Still, there are reasons to believe Lugar will not suffer the same fate that has ended the political careers of some of his Senate colleagues. Here are five:

  1. Some social conservatives complain about Lugar, but he remains popular in the eyes of mainstream conservatives. Some ideologues portray Lugar as a liberal, a ridiculous suggestion for a guy who, according to The Washington Post, has voted with his party 84 percent of the time this year. That’s one percentage point less than the Senate GOP average. "There may be disagreements on certain policies," said Luke Messer, a former executive director of the Indiana Republican Party. "But he is deeply respected by Republicans.

  2. If Lugar does face a tough battle from the far right, many Democrats and independents likely would cross over to vote in the GOP primary in order to back him. "People on our side respect Dick Lugar," said former state Democratic Chairman Robin Winston.

  3. Gov. Mitch Daniels, who worked for Lugar for years, remains extremely popular. His support would help the senator. Additionally, the well-run political organizations of the two men have worked closely together and likely would continue to do so.

  4. Unlike some of his colleagues on the front end of the anti-incumbent wave, Lugar won’t be caught off guard. He has already made clear he is running again, a shrewd move that should keep any top-tier Republicans from entertaining the idea of a run.

  5. And here’s the final reason Lugar won’t lose in 2012: Hoosiers are smarter than that.

I’d like to "go rogue" here and offer my personal thoughts as a voter (which do not necessarily reflect the position of the Indiana Chamber): As someone who falls in the political center (a.k.a. abyss) of this conservative/liberal paradigm that’s been shoveled out in modern American politics, I find folks like Sen. Lugar to be rather refreshing in their willingness to think, compromise and generally try to make government actually work.

While it can be fun to draw ideological lines in the sand, get sanctimonious about protecting your team and toss around catchy barbs like "RINO," it’s far more productive to discuss ideas, consider the other side’s point of view and actually try to enact helpful legislation when the time warrants it. Personally, I’d argue Sen. Lugar has done that honorably for years.

Advertising: Make It Count

ManagementToday.com offers some thoughts on how to keep your advertising effective. Some valuable suggestions here:

4. Focus on faces
The face is the center of our being, the barometer of a person’s health and beauty. It’s also how we evaluate whether we like somebody, and the place to check if we distrust what we’re being told. Fake smiles don’t fool us; everybody’s a natural facial coder. For instance, ‘surprise’ that lasts for more than a second isn’t genuinely felt surprise; it’s canned, another case of ‘spin’ and is intuitively rejected. Our results show that the casting alone can account for a 30% swing in consumers’ emotional response to an execution that is otherwise identical in format and messaging.

5. Make It memorable
Ad agencies too often set a pace that feels like a blur to consumers. Their clients can meanwhile be foolishly blind to the need for an ad that achieves an emotional peak. People notice change; a solution where the ‘pain’ of the status quo isn’t conveyed adequately means the solution isn’t perceived as valuable and the storyline just drones on.

6. Relevancy drives connection
‘Us’ and ‘me’ is everything; attachment and self-esteem are the motivations that work best. Differentiation from rivals doesn’t by itself deliver anything on behalf of your target market. In Latin, the words ‘motivation’ and ‘emotion’ have the same root, i.e., to move, to make something happen. Without emotional engagement, you’re dead.

7. Always sell hope
Meaningfulness is the key to sustained happiness. Create a powerful context, a way to enhance confidence and security, or else you’re merely selling a product or service instead. When we’re happy we embrace a branded offer, and are inspired to solve problems at a clip that’s as much as 20%faster (with superior results). In other words, happiness isn’t ‘soft’.

8. Don’t lead with price
Price has only to be heard to be pigeon-holed, short-circuiting the emotional connection. In contrast, value gets assessed over time, based on the build-up of brand associations and experience of the offer. Make money by building a relationship. Loyalty is a feeling, after all, and when it comes to price it depends on overcoming people’s natural aversion (disgust) about surrendering cash to purchase a company’s goods.

Avoiding the Late Afternoon Lull

Maybe 5-Hour Energy drink should have sponsored this one. In a none too surprising result, a new survey by Accountemps finds that 4 p.m. to 6 p.m is the least productive time of the day for employees, with 2 p.m. to 4 p.m. a close second.

More than 1,000 senior managers were surveyed. A couple of highlights and Accountemps’ advice for battling the late afternoon blues.

Managers were asked, “In general, what is the least productive time of day for employees?” Their responses:

8 a.m. to 10 a.m.  – 10%
10 a.m. to noon – 4%
Noon to 2 p.m.     – 19%
2 p.m. to 4 p.m. – 28%
4 p.m. to 6 p.m. – 37%
Don’t know – 2%

“All professionals experience lulls in productivity, but the late afternoon, in particular, may not be a good time to hold brainstorming sessions or take on highly challenging projects,” said Max Messmer, chairman of Accountemps and author of Managing Your Career For Dummies®, 2nd Edition (John Wiley & Sons, Inc.). “High-performing individuals are typically attuned to their most productive times of the day and, when possible, schedule their critical tasks during those hours.”

Accountemps offers five tips to help professionals avoid the afternoon slump and maximize productivity:

  • Plan ahead. Don’t push challenging projects off until the end of the day, when your energy may wane. Use your less-energetic periods to catch up on more routine tasks, such as responding to e-mails and reading industry publications.

  • Get out and smell the roses. If you feel your energy beginning to dip, stretch or take a short walk to recharge. Try eating your meals or holding afternoon meetings outside.

  • Eat well. Remember to make time for lunch and nutritious snacks throughout your workday. Avoid high-carb foods, which can cause you to crash later.

  • Track goals. Keep a to-do list to remain focused, and ensure it’s visible on your desk so you can check items off as they’re completed. There’s nothing more motivating than making progress on your projects.

  • Switch gears. If you’re struggling to focus, take a quick break and research something new. Changing tasks can help increase your productivity late in the day.

Too Much Government in Too Many Places

Check out these words of New York Attorney General (and candidate for governor) Andrew Cuomo:

Our system of local government is broken … New York has more than 10,521 overlapping governments, including counties, towns, villages, school districts, special districts and public authorities. These entities impose layer upon layer of taxing structures — with citizens receiving multiple tax bills annually — resulting in the highest local property tax burden in the nation … To hold government to account the people must have a government they can understand. But what they have today instead at the local level is a ramshackle mess. The current local government system is the product of sheer historical accumulation — not logic, reason or common sense.

Well said. No, make that very well said. The Indiana Chamber and many, many others have put forth a strong case in recent years that township government in our state is beyond repair. Each new revelation of outlandish township reserves, unsightly administrative costs to deliver poor relief and outright criminal behavior further makes the point.

But like most challenges, it’s not just an Indiana problem. The Governing magazine article that featured the Cuomo quote also included the following. Maybe, just maybe, the momentum will grow, lawmakers will step up to the plate and all Hoosiers will benefit.

Rich Pahls, a Nebraska state senator from Omaha, has proposed merging many of his state’s 93 counties. The jurisdictions were designed for the days of the horse and buggy, he pointed out to the New York Times, not an era when “people will drive 100 miles to the grocery store.”

New Jersey, meanwhile, has some of the highest property taxes in the country, thanks in part to its 567 municipalities, a third of them with fewer than 5,000 residents, along with 611 school districts and 486 local authorities. Bergen County alone has 70 school districts and 76 superintendents.

New York State has more than 10,500 governmental entities that levy taxes and fees, and that depend on state largesse for any number of needs. This includes towns, villages and a multiplicity of water, sewer, lighting, school, 911 and other districts. Erie County, which is where Buffalo is located, has over 1,000 such local governing entities alone.

But while political leaders in the U.S. have been talking about local government rationalization, in Denmark, they’ve actually done it.

In 2007, Denmark shrunk the number of municipalities from 271 to 98. County government was completely eliminated. Fully 455,000 local government employees were involved in the restructuring; and 30,000 physically relocated to a new site. The government projects $274 million (1.6 billion DKK) in savings from the restructuring.

The implementation of this massive reform, which began in 2002, offers important lessons as other governments look to achieve big cost savings through rationalizing local government.

Anyone hoping to rationalize the delivery of services from the state level on down must first understand where the opportunities lie to eliminate duplication and inefficiency. Then, you need to lay the groundwork for public acceptance of the change. Both of these goals can be served by gathering hard data on what every unit of government does, how much it spends and what it gets for its money. Only after these goals have been achieved can you make that information readily available to the public.

This is not an easy task. The collection of data alone is enormous. But data gives you the ability to shine a light on what is taking place under the status quo, making the tough task of driving change a little easier.

Bowen Engineering Founder to Teach at Purdue

Having interviewed Bob Bowen for a BizVoice article in the past, I can vouch for the fact that it rarely takes him long to bring up his passion for Purdue University. (Funny, during the conversation, I conveniently neglected to mention the four years I spent in Bloomington.) Now, the founder of Bowen Engineering Corporation, a thriving central Indiana company that has many Boilers on staff, will parlay his passion for Purdue into helping a new generation of graduates:

Robert Bowen, founder and chairman of Bowen Engineering Corp., is the first Hancher Distinguished Fellow, teaching a class in construction engineering and management at Purdue University this fall.

Donn Hancher was one of the founding faculty members of the College of Engineering’s Division of Construction Engineering and Management. He earned his bachelor’s, master’s and doctorate degrees in civil engineering at Purdue and was a faculty member for 16 years.

The teaching fellowship will be funded by an endowment set up by engineering alumni, including Bowen.

While fundraising for the endowment is still under way, Bowen is volunteering his time to teach during the fall semester. His class, "Leadership and Advanced Project Management," focuses on the technical challenges of the construction industry and the managerial decisions needed to keep a project moving forward.

"Donn Hancher and Bob Bowen have something key in common: They both are passionate about the success of Purdue’s CEM program and its students," said Mark Hastak, head of construction engineering and management.

When fully funded, the Hancher fellowship will be a renewable, three-to-five-year teaching appointment, Hastak said. The idea is to find professionals who are willing to share their experience and knowledge with future leaders in the industry.

"CEM has been searching for ways to involve industry leaders in the classroom, and the Hancher Distinguished Fellow is perfect," Hastak said.

The classes will involve more than war stories, he added. "The Hancher Fellow will push our students to a better understanding of the challenges they will face and the skills they will need."

Filibuster: Changing the Magic Number?

Recent reading included a short piece about a potential change to the filibuster law. If pursued, it would not come without controversy.

For those following the goings-on in Washington over the past couple of years, 60 has been the magic number for the Senate to cut off debate on legislation that lacks bipartisan support (which has been harder to find than "insert your own joke here"). Republicans have used their now 41-seat minority to block action on several issues, while Dems have offered various "perks" to gain support. The current party in power wants to lower that number to 55.

It can be done on the first day of the next session. Vice President Joe Biden can overrule the certain GOP objection and set the stage for the rule change, but how will voters react in 2012? Will they take it out on the Democrats as a "power grab?" The determining factor might be the final tally after this November’s election. A 54-46 majority might be enough to convince Dems this is their only course of action in order to achieve their objectives.

By the way, there was no cloture (the official name for the filibuster rule) before 1917. Debate could not end as long as one senator was willing to keep talking on the Senate floor. The original cloture required 67 votes; Democrats lowered that number to 60 in1975.