July 2004, Issue No. 1, Page One of Two

HOUSTON BUSINESS REVIEW

Happy Fourth of July! Celebrate it by remembering the freedoms we enjoy and those willing to fight for them.

WHY HOUSTON IS HOT (NOT JUST THE TEMPERATURE), by Kevin J. Price

Kevin J. Price is Host of the Houston Business Show and Editor of the Houston Business Review. He is the author of several books and worked as a policy analyst in Washington, D.C. during many of the Reagan years. Mr. Price is available to speak to your group or organization. Please call him at 713.984.0235 for more information.

Houston is hot. Most people who read this don’t need to be informed of that fact because our Summers are legendary. However, Houston is hot for many other reasons, all of which contribute to it being the largest city in the South, the fourth largest city in the United States, and still one of the fastest growing cities in the nation (something that cannot be said for the three largest cities of New York, Los Angeles, or Chicago). Following are some areas that Houston is nationally ranked (thanks to the Greater Houston Partnership for providing the information). This data points to a city that is thriving and should continue to be on an upswing for years to come.

Areas Houston is Ranked #1:

• Lowest Cost of Living and Least Expensive Housing among 27 Metropolitan Populations of more than 1.7 million, according to the ACCRA Cost of Living Index, Third Quarter 2003.

This is important because businesses that move here know that they can give their employees “more” while paying less than they would in other large cites.

• Campus Diversity –– Comprehensive Colleges, Bachelors (West): University of Houston-Downtown, according to America’s Best Colleges 2003 as ranked by U.S. News & World Report.

• Top Cities for African-American Families according to BET Online 2002.

The important thing about these facts is that they point to the rich diversity of this city. By recognizing the differences in people and learning how to bring them together, the people of this city have made Houston an economic powerhouse.

Areas Houston is Ranked #2:

• Best Performing Cities Index according to the Milken Institute 2003.

This index factors in many areas, including regulatory environment, efficiency, and other performance areas.

• Nation’s Most Diverse Campus –– University of Houston, according to the January 2003 issue of U.S. News & World Report.

• Top Universities for Hispanics –– Rice University, according to Hispanic Magazine, March 2003.

Areas Houston is Ranked #3:

• Expanding or Starting an African-American-Owned Business, according to the 2004 ING U.S. Financial Services Gazelle Index.

This, too, is a great indicator of Houston’s economic strengths.

• Most Logistics-Friendly City according to Expansion Management Magazine, September 2003.

• Number of Foreign Consulates (79) according to Houston International Protocol Alliance, December 2003.

This is obvious international recognition of Houston’s prestige.

Other interesting rankings...

High Value Labor Market Quotient, Expansion Management July 2003(#4). This is related back to the cost of living issue above. Quality workers are very affordable in Houston.

Fortune 500 Headquarters (ranked by Consolidated Metropolitan Statistical Area), Fortune Magazine (#5), April 14, 2003.

Metro Areas Favored for Expansions or Relocations, Plants Sites and Parks (#5), March 2003.

Top 10 Metros for Investment –– Houston-Baytown-Sugar Land Metro Area Site Selection (#5), March 2004. This is where the money is going and for good reason.

And ranked number 8 for Best Places to Live (Places Rated Almanac), but we already knew Houston is a wonderful city.

TEN INSIDER SECRETS TO A WINNING JOB SEARCH, by Todd Bermont, as compiled by HBR staff

Mr. Bermont was a guest on today’s Houston Business Show and is the author of a book entitled 10 Inside Secrets to a Winning Job Search. Following is a summary of the 10 Secrets. To get the details, you need to read the book. This summary is based on the book, compiled by HBR Staff.

1) Believe in yourself. If you don’t believe in yourself, your employer won’t either. Taking the time to become mentally prepared to win the job.

2) Identify your core strengths and competencies. Know the things that will win your business and be ever mindful of them as you close the deal.

3) Define the job you really want. Being vague about what you can do, or claiming to be able to do “anything” to get hired will lead to failures in your job search campaign.

4) Justify why you should be hired. You are asking this potential employer to spend money on you so you must make a strong case.

5) Create powerful resumes and cover letters that will generate interest in 15 seconds or less. You must make sure these important job fighting tools “stick out” in a positive way. This includes type font, color of paper, and many other factors.

6) Network and market yourself. Very few people simply get jobs from the newspaper. It's who you know that usually gets you the job. Make sure you know as many people as possible.

7) Utilize available tools and resources. There is a significant amount of information available online and through other sources. Identify and exploit them into your next job.

8) Prepare for every opportunity. Be ready for the job you are pursuing or for the job you can do that becomes available to you.

9) Interview to win. It is no time to be timid when you are sitting across from a potential employer. Be bold, be smart, and be ready to get the position you desire.

10) Finally, follow up and close the deal. Many potential deals and careers were not obtained because people simply failed to follow up. The employer is interested in your self-initiative and how you stay with a job will be a factor in hiring.

TWO TOOLS TO HELP YOU TO FIGHT HIGH GAS PRICES

People are scratching their heads in shock over the massive increase in gasoline prices. Most feel relegated to merely complaining about it, others are calling their member of Congress, and others are considering digging their own wells. However, a rapidly growing segment of the population is using the World Wide Web to find a way to keep their prices under control. One way is through using these two websites: GasPriceWatch.com and GasBuddy.com. For the next few months, these sites might be a consumer’s and business owner’s best friend.

We Houstonians are spoiled. With gas at around $1.75, we feel the Second Coming is upon us. However, according to GasPriceWatch.com, the Houston area enjoys some of the lowest prices in the country, with Katy's prices being around $1.65 a gallon (on the date this was written). Rosemead, California, on the other hand, has the nation's highest prices at (gulp) $3.00 per gallon. The national average is now pushing over $2.00 a gallon.

Both sites have enjoyed a boom of interest in recent months and both of them are helpful. However, my personal preference is GasBuddy. Below is my assessment of the sites.

GasPriceWatch.com. Visually, the site is less than attractive and it requires quite a bit of digging before you get to the information you desire. There is a section where one can put in his zip code and the radius they desire to locate gas stations. I put in mine and asked for it in a 20-mile radius and received almost 2,000 matches. Furthermore, there is a color-coded legend that explains how old the information is, a feature that made me even more confused. I clicked back in put in five miles and got over 300 options. Still too many, back again to one mile and finally I had a number I could work with: 20 stations. But, the question of whether I had the best options hung over my head. This was getting old real quick. Then I noticed that there weren’t any prices for those stations listed on the page. I was ready to check out GasBuddy.

GasBuddy.com. In addition to being more visually attractive than GasPriceWatch.com, GasBuddy.com enables you cut to the chase much quicker. On the home page is a map of the United States (and Canada). Navigate to Texas Texas, then click on your city. In our case, clicking on Houston takes you to HoustonGasPrices.com.There are two tables on this page, one listing the lowest gas prices in the previous 24 hours, and the other listing the highest prices. The site is a little cumbersome to navigate. First you must scroll down to find the option that is closest to you. Stations are broken down into geographical areas (Northwest, West Houston, etc.) and cross streets. The lowest price on the day I visited the site was $1.67 per gallon at Sams Club, 1615 S. Loop West. GasBuddy.com is more user-friendly and contains more information than GasPriceWatch.com.

We will keep links to both of these sites available to you as we weather this current crisis. Hopefully, by bringing this information to you we can help provide a little relief and make driving a little more affordable.

NEED A GREAT SPEAKER?

Don’t look any further than the Houston Business Show Speakers Bureau, sponsored by HoustonBusiness.com™. The Speaker's Bureau features award-winning writers, nationally recognized experts, and entertaining speakers. Perhaps best of all, we provide these speakers free of charge to qualified organizations and speaking engagements receive free publicity for the event in this newsletter, on the HoustonBusiness.com™ Business Calendar, and on the Houston Business Show.

Houston Business Show Speakers Bureau members will be speaking at several events in the next two months. Kevin Price, Richard Sonnier, and Aubrey Theode (Houston Business Show co-host) will be speaking at the Ravenaux Breakfast Club. For more information send an email to arch@achillesgroup.com. Mr. Price will also be speaking at the Houston West Chamber of Commerce, for more information send an email to info@hwcoc.org.

Recent Comments about Kevin Price on the Stump.

Mr. Price has recently given several speeches about the Houston economy. Following are some of the commments about his speech at the Services Cooperative Association ("SCA"):

• Kevin was GREAT! (SCA comment sheet)
• Very clear voice, very interesting! (SCA comment sheet)
• Good stage presence (SCA comment sheet)
• Very thorough and knowledgeable! (SCA comment sheet)
• WOW! (SCA comment sheet)
• Great presentation...Dynamic! (SCA comment sheet)

Get Mr. Price--or one of our other great speakers--and the free promotion that comes with one of our speakers, by calling 713.984.0235 and asking for Stacy Walston.

SALLY HAS A PROBLEM by JP Magill

Houston Business Show commentator JP Magill, a principal of the Achilles Group, provides weekly commentary on HR issues for the Houston Business Review. The Achilles Group is a leading HR consulting firm and can be reached at 281.469.1800

Scenario: Sally’s performance has consistently gone downhill. In the past she was a top performer but now I am considering getting rid of her. So last week I sat her down and told her that her performance was not where I needed it to be. Today she came to my office and told me that her performance had been slipping because she had an alcohol dependency problem. She told me that she is going to start a treatment program next Monday and will need a few days off. What do I do?

I got this call the other day and thought it would make an interesting article. First, abuse of alcohol or any other drug is against most companies' policies. But Sally’s issues are beyond simple on-the-job abuse. Under the Americans with Disabilities Act ("ADA"), individuals who are or have been treated at a bona-fide treatment center/program are protected from adverse employment action/discrimination based on their dependency. In short, an employee who is or has been in a bona-fide treatment program is protected by ADA.

So, what does the employer do? First, Sally’s request for time off has to be granted. ADA requires companies to "accommodate" disabled workers. Sally’s accommodation under the ADA is that the company grants her a reasonable period of time off to receive bona-fide treatment for substance dependency. When Sally returns it is suggested that she be made aware of the performance issues that she had before her treatment. It should be made clear that the company understands why her performance had slipped but that her performance needs to improve. Also, it is suggested that some type of agreement between Sally and her employer be formalized in writing about her treatment program. Basically, the company will continue to support Sally’s efforts as long as she continues and completes her treatments. Such documents should be created by Human Resource professionals or attorneys.

Employers who fail to think through such issues will find their employees’ problems will become their problems in ways they never imagined.

BILLBOARDS ARE AFFORDABLE

Businesses pay thousands, sometimes tens of thousands, of dollars to advertise on billboards in Houston. We think these businesses are wasting serious cash. On the other hand, businesses interested in saving money to reach the same-sized, qualified consumer audience rent a billboard from HoustonBusiness.com™. From between $155 to $180 per day, your business can seen by hundreds of thousands of people daily. Learn more by visiting our Outdoor Division. You'll be glad you did.

Businesses buying multiple days of billboard advertising...

Several businesses are making the smart move of buying multiple days of billboard advertising from HoustonBusiness.com. In addition to reptition--the key to advertising--those companies who purchase advertisements on multiple boards or multiple days get free promotion on the Houston Business Show and in this newsletter. Some of those businesses include:

Furniture Systems & Cubicles, which can be reached at 713.460.1037. FSCI is a leader in meeting your office furniture and cubicle needs.

Time for a new automobile? Call Ian Mac Moy at 832.249.2107 with Park Place Jaguar & Land Rover North for the best deals on the auto of your dreams.

COST EFFECTIVE IT: IT SECURITY, by Richard Sonnier

Houston Business Show commentator Richard Sonnier, of the Information Technology Services firm Nimble Services, Inc., provides weekly information on our show about information technology issues. Mr. Sonnier can be reached at 281.445.4800 x 250 or rsonnier@nimbleservices.com

What is IT security?

IT security is complex, but the concept can be summarized as follows: IT security means that you can trust the information maintained by the IT system. Most of IT security involves the notion of trust. This trust includes the following ideas:

1. Only authorized people can enter, change or see the information.

2. The system will not corrupt the information.

Authorized Access

For IT security, authorized access is the key. Authorized access is the definition of who can access what information on the IT system. At this level it is really simple. The problem is that computers make access really easy and it takes a lot of effort to restrict access to just the appropriate users.

The most critical part of authorized access is making sure the users are the persons they claim to be. This is usually accomplished with the all too familiar password, and passwords are the great weakness in authorized access. For example, an unauthorized person can guess simple six character passwords in a few hours by simply trying every possible combination of numbers and letters using a fast PC. Therefore, many IT systems require longer passwords. However, this results in a race as computers get faster and faster the length of a safe password gets longer and longer. Even worse, the longer and complicated the password is the more likely the user will just write it down on a little note stuck to the computer monitor, which defeats the whole point of having passwords.

Finally, passwords can be a double-edge sword. Once, I had to recover some password protected Microsoft Word documents. An employee who had left the company had encrypted all these company documents with passwords that no one else knew. It required one PC running 24 hours a day for 7 days for each document to recover the passwords. This illustrates two important realities of IT security:

1. The password protection of your IT information is limited to a certain amount of time so you should change passwords often.

2. If someone loses a password, the protection becomes a liability.

More generally, the more security you implement in your IT system the greater you can trust the information; but the greater the initial cost and potential liabilities.

Next week, I will continue this discussion of IT security.

AFFORDABLE HEALTH INSURANCE?

Who says you can’t afford health insurance? Truth is, you can’t afford to not have health insurance. With measures for cost containment that have been implemented, today health insurance is more affordable than at has been at times in the past. Contact the Benefits Division and ask for information on how to offer health insurance through your business at no cost to the employer, how to reduce your tax burden through your health insurance, or inquire about the most affordable and convenient ways for the unemployed to get coverage (hint: it isn’t through COBRA). Call 713.984.2431 and ask for Stacy to request more information.

NONE OF THE OPINIONS EXPRESSED HEREIN ARE THOSE OF HOUSTONBUSINESS.COM™, THE HOUSTON BUSINESS SHOW, THE HOUSTON BUSINESS REVIEW, OR ANY OTHER FIRM OR COMPANY REPRESENTED OR REFERENCED HEREIN. FOR ADVICE OR OPINION, WE SUGGEST YOU CONTACT A QUALIFIED PROFESSIONAL OF YOUR OWN CHOOSING.