Monday, July 28, 2008

BLOG FOR 7-28-08

For the last several years we have experienced the phenomenon of businesses or even individuals “Branding “ themselves, their products, businesses or services. It also seems that there are various views of exactly what it means to brand something.

The late James Davis, then NYC Councilman for the 35th Council District in Brooklyn, once told me that his goal was to have such high name recognition that seeing his name in print, without pictures, would conjure up, in the minds of the public, an image of himself and all of his good works in the city council.

He used as illustration the Nike brand. When we see the Nike name or even just the symbol most of us immediately think about top quality sneakers and sports wear worn by the best athletes in the world. Many of us desire to emulate that image.

In my mind, what we have labeled branding , is essentially talking about our reputation. Although we might decide to have a memorable letterhead or logo or give out trinkets with our names embossed on them, we actually create our brand by the quality of service that we provide daily.

If we provide poor, un- reliable services, or bad attitude, the logo and trinkets will only serve to remind people to avoid using our service. Similarly, if we project self confidence, an open and caring demeanor, demonstrate love and concern for each child, provide dependable quality service, with a glad to serve you attitude, our business will stand out in the crowd and grow almost effortlessly, by word of mouth. If you are consistently providing services in these ways, call it what you may, you will have branded your child care business.

Monday, July 21, 2008

Blog for 7-21-08

I don’t know about you but I’m very concerned about the state of the economy. I‘ve learned that as business people one of the worse mistakes that we can make is not to pay attention to the big picture or the economic trends. Make no mistake about it; what happens in the broader economy will impact your business.

For instance, today inflation is higher than at any time since the 1970’s, and the national un-employment rate has risen to 5.5%. New York State and New York City’s un-employment rate usually exceed the national average. The 2009 fiscal budget for New York City had what some are calling draconian cuts to basic services for poor and working class citizens. But the mayor and Office of Management and Budget (OMB) stated that the cuts would have been deeper if not for a surplus from 2006 and 2007 to off-set some of the projected deficit. The Mayor is credited for saying that 2009 cuts will seem like child’s play compared to the next couple of years.

The continuing financial crisis on Wall Street has caused at least two bank failures so far and over 189,000 employees have been laid off. A crisis on Wall Street directly affects New York City; Wall Street is the engine for NYC’s economy. Corporate taxes and personal income taxes from the financial sector are major contributors to the City’s coffers. Experts are suggesting that the lay-offs that we’ve seen so far are only the beginning.

Lay-offs are also forecast for almost all of the government agencies during this year and next as these entities meet mandated 2% budget reductions. Private businesses and corporations may follow suit if business is bad. Do some reading on current economic forecasts. You won’t get a clear picture from watching the 6:00 PM news.

How might this affect child care businesses? First, it is almost impossible to pass on the increased costs in housing, food, utilities and gas to parents by increasing fees; families are already strapped. Try to do some belt tightening to cut down on cost when ever it is possible and safe. Second, some of your parents will probably be laid off. That’s right! Laid off workers may not need or be able to afford child care, thereby shrinking the market for child care services.
What to do? Be proactive in thinking through some scenarios that might meet the needs of parents who have been laid off. Perhaps they won’t need full day or full week child care. You might consider altering your enrollment and attendance policies. Whatever it is, think it through carefully so that you are prepared if that time should come.

The third and final suggestion is, If you are about to embark on some major project that will cost money, like the expansion of your program, do a re-assessment to make sure that it still makes sense in the current environment.

Monday, July 14, 2008

Blog for 7-14-08

As we continue to languish in the summer heat and humidity, it has been too hot to hold a cogent thought ; much less actively participate in reacting to the draconian cuts to our base line services that the mayor and the city council have agreed on in the over 59 billion dollar 2008-09 budget for New York City.

For the child care community this is almost certainly a signal that the Administration for Children’s Services planned Project Full Enrollment (PFE) will be implemented. Why? Because those cuts have now already been factored into the budget; the city is compelled to consolidate and downsize programs.

Still, the City Council’s General Welfare Committee, Chaired by Councilmember Bill deBlasio, continues to act as though they are concerned about the plight of the child care programs, while knowing full well that the deal is done.

So far the committee has held several hearings and meetings concerning this issue but has not given any indication that it is prepared to go to bat, in any significant way, on behalf of the over 300 publicly funded child care programs in NYC that will be seriously impacted by the PFE initiative starting in September. The City Council passed Resolution 1415 – requesting that ACS produce certain information and documents to justify it plans for Project Full Enrollment (PFE). And it passed Resolution 1420-2008 requesting the Bloomberg administration to place a moratorium on the implementation of PFE.

The problem with this is that City Council resolutions are little more than suggestions. While the child care community may be lulled into believing that they are getting strong support from the City Council, they are in fact getting nothing more than a distraction from thinking of more meaningful ways to save themselves.

Unfortunately, this current City Council has demonstrated time and again that it is not willing to strongly oppose Mayor Bloomberg who has made it abundantly clear that he has no interest in poor and working class citizens in New York City. So while we get several man made waterfalls throughout the city, our elected officials continue their plans to close senior citizens and child care programs this fall.

Monday, July 7, 2008

Blog for July 7, 2008

July 7, 2008
Yes… I know that I’m late up-dating the blog; please forgive me. So much is happening in the child care world it’s hard to keep up with everything. Thanks for bearing with us.

On a sad note, last week I learned that I lost a friend. Dottie Millard and I served together briefly on the Board of Directors of the New York State Child Care Coordinating Council (NYSCCCC). The Council is a state wide organization of Child Care Resource and Referral Agencies (CCR&R’s). In the early 90’s Dottie served a term as the President of the Board and as interim Executive Director during our search for an Executive Director. I served as chair of the personnel committee. During that period the Council successfully led an initiative to have legislation passed and funded that would provide funds for every county in New York State to have at least one CCR&R program. Dottie was one of the warriors in the battle to get that legislation passed. CCR&R agencies work to expand the availability of child care services throughout the state. They work to raise the level of understanding, among our legislators, that the provision of safe, affordable and accessible child care is a fundamental need for all families. We continue to benefit from the work that Dottie did, together with many others too numerous to name here. Dottie Millard was as fine a person as you could ever meet. I pray her soul safe passage into the next life and I offer my heartfelt condolences to her family.

On another sad note, but in a different vein, the Irving Place Child Care Center closed its doors as a child care program about two weeks ago. It seems that they couldn’t hold up under the exorbitant cost of operating the center; most notably for rent and utilities. I understand that Assemblywoman Annette Robinson kept Con Edison at bay for as long as she could, but it was a losing battle. There was no way that the center would ever be able to afford the Con Ed bills.
It appears that Council Member Letitia James was instrumental in helping another local, private group work out an agreement with the owner/landlord and removing the Irving Place group. For me the sad part of this is that we have lost another community based organization led by people of color as we continue the gentrification of Clinton Hill and other parts of central Brooklyn. Our elected officials seem unwilling or unable to pay attention to the details of these situations and to offer real help and support when the media is not near by. In addition, there seems to be a strategy, by government types, to portray the leaders of these failed organizations as villains, inept or poor managers; instead of acknowledging the situation for what it is. As the economy continues to spiral downward, these small groups simply lack the money, resources and government access to maintain their organizations.

On behalf of childcarebusinessconnections.com and the local community, I want to thank Ms. Beverly Johnson and the Board of Directors of the Irving Place Center for the many years of quality child care services that they have provided to the Clinton Hill community.
I hope that you enjoyed your 4th of July holiday, now the summer is really upon us.