THE SERENUS PRESS · ROA D M A P P U BLI C ATI O NS

Applying History

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� � •Read history to gain a sense of

the past, for the instruction it offers, andfor the pleasure of learning the story of our lives.

Construct within your memory a timeline of key dates,persons, places, and events so that you will be able to place

in perspective the knowledge you will acquire. Recognizecause and effect; test for analogies in historical events.Investigate historical details by asking (and answering) in eachinstance the key questions “Who, what, how, when, where, and

how much.” Probe the meaning of historical significance.Develop competence in corroborating statements of

alleged fact, and in detecting bias and inaccuracy.Evaluate and judge your sources of infor-

mation. Seek the truth. •

Parts of this Guide appeared previously in Business and History,

Careers for Graduates in History, and Getting Down to Work,

published by the Serenus Press.

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The mission of the Serenus Press is to promote the study and use of history and the liberal arts,demonstrating their application in nonacademic settings. We also encourage employers in all sectorsof the economy to provide insight on how to strengthen education that connects good scholarshipwith professional success. To this end we publish Road Map Publications, freely downloadablematerial for educational distribution.

Serenus publications have many applications. They help students choose a college major, reinforcereasons for diligent study, and provide concrete career options. They also aid college administra-tors in recruiting high school students, and show parents as well as teachers the value of theirchildren’s liberal arts education. To date, our material has been used in nearly half the collegesthroughout the United States, as well as numerous schools, historical associations, and libraries.

While many of our publications deal with history, we believe that history – rigorous history – cannot be written, studied, or applied without due regard to other core subjects: English, science,mathematics, and geography. Nor can mastery be achieved of English, science, mathematics, orgeography without an attentive focus on history.

Without limiting the rights under copyright reserved below, no part of this publicationmay be reproduced, stored or introduced into a retrieval system, or transmitted, in anyform, or by any means (electronic, mechanical, photocopying, recording, or otherwise),without the written permission of both the copyright owner and the above publisherof this guide.

The scanning, uploading, and distribution of this guide via the Internet or via any othermeans without the permission of the publisher is illegal and punishable by law.

T H E S E R E N U S P R E S S · R O A D M A P P U B L I C AT I O N S

Copyright © 1997 by The Serenus Press

All rights reserved

Printed in the United States of America

CONTENTS

Introduction v

1. Plan, Collect, and Process 1Planning ~ Gantt Charts ~ PERT Charts ~ Sources of Data ~ Collectionand Processing ~ Electronic Tools ~Feedback and Follow-up ~ Spreadsheets

2. Analyze and Reflect 5Veracity ~ Bias ~ Plausibility and Reliability ~ Cause and Effect ~ AnalogyRisk and Uncertainty ~ Statistics ~ Legal and Legislative Content ~ Pollsand Surveys ~ Projections and Forecasts ~ Patterns of Change and SamenessDouble Checking ~ Statistical Terms

3. Communicate 13

Forming Text ~ Framing Content ~ Expression ~ Illustration ~ Conclusionsand Recommendations ~ Review ~ Graphs and Charts ~ Oral PresentationThe Doctrine of Completed Staff Work ~ Jobs vs. Careers

4. Career Advice 19

Take Inventory ~ Knowledge and Skills ~ Work Habits ~ Research TargetsRefit ~ Action ~ Personal Assessment ~ The Avocation of History

5. Appendices 25

A. On Financial Statements Judging Value and Producing Worth ~ Understanding Financial Statements ~ Analysis of Value ~ PitfallsMore Questions to Raise

B. Typical Industry Organization Chart

C. Federal Government Organization Chart (partial)

D. Business and Academic Resources

6. Selected Bibliography 41

The purpose of this guide is to connect the study ofhistory and historians’ methods to nonacademic

careers in both private enterprise and public service.

Consider how an academic report is produced. Allacademic reports require (1) planning, researching,collecting, and processing data, (2) analyzing and evalu-ating information, and determining a course of action,and (3) communicating knowledge gained.

The same steps are followed when drafting businessreports or making business decisions. These are followedby an entrepreneur developing a business plan, an exec-utive setting long-range goals, a marketer evaluatingproduct placement, an economist examining supply anddemand, or a financial analyst determining creditwor-thiness. They are followed interpreting law, draftinglegislation, determining policy, and practicing diplomacy.And empowered by a diligent study of history, theybecome powerful habits of the mind.

Before discussing connections, a few comments onacademic efforts follow:

· The study of history should teach its students to thinkcritically, ask meaningful questions, dig for soundanswers, analyze dispassionately, communicate withpower and clarity, and learn how the world works. Itshould also improve understanding of the humancondition: Who we are, where we came from, wherewe might be headed. Worthy questions, regardless ofcareer.

· Historical methodology is not mastered without themastery of historical content. You cannot learn howto practice the craft of history without sharpening yourinsight on historical material.

· To benefit a nonacademic career, the study of historyshould be supported by ample course work in English,geography, at least one science, mathematics, andeconomic (including business) history. For depth, itshould also include study of philosophy and logic,government, and at least one of the fine arts. In all ofthese studies learning should transcend single-issueadvocacy.

· On the job, there’s little time to acquire strong back-ground knowledge of the region or issues that must bedealt with. The time to acquire such an historicalfoundation is at school and college.

· If you can travel before beginning a career, do so.Enjoy yourself, but study how other people andcultures live, work, play, and think. Learn a second orthird language, but first master English, proper, gram-matical, well-expressed English.

· Learn to listen and talk to good people from everywalk of life, low, middle and high, male and female.Read history with wide eyes, unfiltered by dogma,ideology, or wishful sentiments.

· Keep in touch with former history teachers. Encouragethem to reach out to students in non-academic profes-sions and learn from business – its history andtechniques (leadership, human relations, informationmanagement, quantitative and qualitative analysis,finance, budgeting).

· Knowledge of history helps, but does not create, soundjudgement. Common sense, personal effort, study andreflection, moral and ethical grounding, and ability arealso required.

Introduct ion

v

PLANNING – All fields, including the humanities, aresubject to planning, be it the academic work at hand, orin some form of budgeting. Business planning, like histo-riography, begins with placing events and actions inchronological sequence. Then the details of what must beaccomplished are considered. These may include finan-cial, economic and social conditions, human resourcecapability and availability, technology, legislation, regula-tion, weather, product supply and demand, competition,and details particular to the individual enterprise.Planning, including strategy and design, must be shapedat the outset for successful results.

In business practitioners must learn, as IBM puts it, to“tackle problems and turn them into revenue producers.”Costs must be weighed against benefits. Those benefitsexpressed in qualitative – rather than quantitative – termsmust then be converted to numbers. This requires at aminimum requiring proficiency in mathematics and anunderstanding of basic statistical concepts.

Cost- benefit analyses underlie most business planning.In it simple form, such a study compares expected finan-cial costs with estimated financial profits. In more sophis-ticated form financial, economic, and/or social results arecalculated, frequently comparing the effects of under-taking a given project with taking no action at all. Basedon discounted cash flow methodology, it is beyond thescope of this guide to detail the techniques of cost benefitanalysis. Further reading may be found in the bibliography.

Several techniques are commonly employed to help esti-mate and control the time and cost of business plans.

GANTT CHARTS – are used to schedule the activitiesneeded to complete a given project; activities are repre-sented by simple bars, displayed line by line in chrono-logical order, their length representing duration. Theymay be produced with pencil and graph paper, byspreadsheets, or by a number of graphical applications.

PERT CHARTS (Program Evaluation and ReviewTechnique) are used to diagram complex activities,showing the relationship between individual tasks.Driven by computer applications, PERT chartsfrequently employ the Critical Path Method (CPM )to calculate the greatest amount of time needed tocomplete a project. Best-case completion scenariosmay be supplemented to represent both optimistic andpessimistic values.

Plan , Col lect , and Process1

Activity

Survey

Plan

Transcribe

Interview

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Process

timeline

Gantt Chart

timemarkers

Milestone

Activity➌

6 days2 days 3 days➊ ➋ ➍ ➎

A

B C

ED5 days4 days

PERT Charts

➌

12 days2 days 3 days➊ ➋ ➍ ➎

A

B C

ED5 days4 days

Original Critical Path: A — B — C — E

Revised Critical Path: A — D — EA. PlanB. InterviewC. SurveyD. TranscribeE. Process

Project Duration: 2 + 5 + 4 + 3 = 14 daysProject Duration: 2 + 12 +3 = 17 days

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PERT charts are capable of dealing with multiple activi-ties and completion times. In the original chart, thecomplete project will take 14 days from start to finish.However, if completion of the survey is doubled from sixto twelve days (revised example), project will require atotal of seventeen days.

As a student, practice simplified planning techniques.Estimate the days or hours needed to complete eachactivity in a reporting assignment. Track your estimates,compare them with actual results. Note which tasks takethe longest and which the shortest time to complete. Usethis information for future estimates, keeping an eye onimproving your results.

SOURCES OF DATA – Typical business require-ments focus on: (a) finance (financial condition andposition, costs, expenses), (b) markets (demand,growth potential, consumer acceptance, competition),and (c) general economic and legal: (labor andmanagement factors, government regulations, techno-logical and environmental issues, economic condi-tions).

Like academia, business relies on current data andinformation, some internally generated primary mate-rial, some secondary. Refresh your grasp of sources andof evidence:

Primary sources offer direct, first-hand evidence andinclude written, recorded, or transcribed material as wellas artifacts such as photographs.

Secondary sources are created by those who did not actu-ally witness the event, but gained their knowledge fromhearing, reading, or seeing images gathered by others.They may include contemporary works by sources whohad knowledge of the event in question, or materialscreated at later periods by people who have neitherobserved or “experienced” the event. Note that secondarysources can include the work of historians.

The formal rules of evidence used to judge primary andsecondary sources depend on one’s profession:

· Legal evidence is used to resolve disputed facts, andmay be the result of personal observation (directevidence), or with conclusions drawn fromreasoning or inference (circumstantial evidence).Eyewitness evidence is drawn from actual observa-tion or physical experience (touching, hearing,seeing, smelling). Corroborating evidence confirmsthe assertions of others. Unlike the observations ofdirect witnesses, corroborating evidence was writtenor created for some purpose unrelated to the event.

· Accounting and auditing evidence is derived froman entity’s financial statements. Its reliabilitydepends on the soundness of the underlying book-keeping procedures and certified by an inde-pendent valuation (audit) or by physicalexamination.

· Scientific evidence is based on hypotheses that canbe tested and experiments that can be independentlyreplicated. Scientific methods include inductivereasoning (specific to general) and deductivereasoning (general to specific).

· Mathematical evidence is proved by verifying truthwithout exception using deductive reasoning.

· Historians tend to test evidence, whether material,documentary, or experiential, for genuineness,trustworthiness, and proof.

Typical Business Plan

· Executive Summary

· Market Analysis

· Company Description

· Organization & Management

· Marketing & Sales Management

· Service or Product Line

· Funding Request

· Financials

· Appendix

— Courtesy of Small Business Corporation

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In business, a combination of all the above may apply.All are fallible, subject to biases, and require carefulexamination. They include publicly available informationfound in Annual Reports, SEC filings, as well as special-ized electronic data either freely available or throughcommercial subscription.

COLLECTION AND PROCESSING – No amount ofelectronic data acquisition or audio recordings canreplace an effective note taking system. Long,verbatim quotes aren’t notes; cryptic, random jottingsserve no purpose. Your system must satisfy yourpersonal need for recall, You can outline importantpoints, format your notes to establish a hierarchy ofthoughts, or use mapping and charting. Attention to oral history skills and thorough back-ground preparation will also strengthen the collection:

· Learn to listen as well as to question. Analyze yourinformant’s choice of expression and body language;research your subjects’ backgrounds, writings, views,and associations.

· Secure legal permission before taking photographs,videos, or voice recordings.

· As data is gathered, leave a meaningful writtenrecord for future recall of details. Check for relia-bility and note to whom credit should be attributed.

· Take risks searching for information. Do not letconventional views of sources control your search.

· Keep fit. If you are working hard, your challengesin collecting information are physical as well asmental.

· Collaborate and cooperate. Business research is nota solitary, contemplative activity. Winning theconfidence of your sources, teamwork withcolleagues, and rewarding your sources intellectuallyplay large roles.

ELECTRONIC TOOLS for the collection of data centeron the Internet, which for all its data richness, bristleswith dangers of error and unreliability. Always cross-check Internet information; know who originated it,who is responsible for the site, and if individual authorsare named, who they are and if they have positive estab-lished professional reputations.

Learn how to use and select a variety of electronic appli-cations. For example, word processors or spreadsheets fornotes; databases for information storage that must besorted, or otherwise manipulated; spreadsheet or special-ized applications for analysis; word processing or pagelayout software (desktop publishing) for final presentation.

Spreadsheets are particularly useful, as numerous func-tions can be performed by spreadsheet commands,including:

· Financial (payments, rates of return, present or futurevalues)

· Mathematical (absolute values, raising to a power,cosine of a given angle)

· Statistical (deviations, averages, distributions )

· Conditional statements (logical relationships, –( if X >3 then Y, else Z )

Note that use of any functions without sufficientknowledge of underlying methodology can producedisastrous results.

Before you choose a spreadsheet software for your project,consider how your data will be imported or exported foranalysis.

Business “intelligence” applications can analyse datadrawn from the Internet, commercial vendors, or in-house sources. “Data warehousing” facilitates thestorage of data. The user can either manually, or usingbuilt-in search engines, “mine” the data for patterns,trends, and other details.

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To understand the methodology underlying businessintelligence, warehousing, and mining may requirecontact with their programmers to follow the underlyinglogic driving the software.

Business software may also generate performance indica-tors (often known as data dashboards) numeric values toindicate achievements, risk or other measure of strengthand/or weakness. Be especially aware of how such

performance indicators are devised and how data hasbeen manipulated to produce them.

FEEDBACK AND FOLLOW-UP – As mentionedabove, few, if any, plans go unchanged. Build in asystem for feedback: confirm, control, and appraise.Note which elements can and cannot be changed –cost, and time (only if changes and a general agree-ment are reached) while integrity (cannot).

Spreadsheets, help to store, organize, and tabulate data. In mathematical terms, spreadsheets create a matrix, arectangular arrangement of columns and rows. The point where rows intersect columns are called cells. Cells are

positions in which numbers, characters, or formulas may be placed.

Spreadsheets

If the quantity 2 were entered incell A1, 4 entered in A2, and theformula A1+A2 entered in cellA3, A3 would return 6.

Spreadsheet used as a database

4

A1+A2

A

1

2

3

2

6result

A

1

2

2

yes

B

3

Able CA

Baker

Charlie

A

1

2

3

Name Amount State

IA

NY

$ 457

$ 632

$ 378

file

record

B C

4

Conditional statements in spreadsheets allow users to specify a single cell, a premise from which one of twoconclusions can be drawn. For example, if the sum of a range of cells exceeds the given value 4, “Yes” wouldappear in cell A2. If the condition were not met, the answer“No” would appear in A2.

Such an expression using Microsoft’s Excel © would read: = I F ( ( S U M ( A 1 + B 1 ) > 4 ) ,” y e s ”,” n o ” )

function

operation

argument

argument separator

nested parentheses

punctuation

operatorresult of logic

columns

B2

cellsrows

cell reference

A

1

2

3

B

5

Analyze and Ref lect

VERACITY – Without solid research, sound data, plau-sible corroboration, and diligent cross-checking ananalyst is at the mercy of misinformation – someone else’s“truth.”

Honest disagreements over interpretation aside,distortions, errors, and outright falsehood are theanalyst’s staple fare. Preconceived notions controlobjectivity. Like picturing a place never before visited,new data is not quite the same as previously imagined.A few of the common pitfalls analysts face in deter-mining veracity (“the truth”) are discussed below.

BIAS – replaces judgements with favored preconcep-tions, It can be introduced – and spotted – by choice oflanguage (invective, exaggeration, and caricature),conflicts of interest, and over reliance on partisan sources.

Bias can be amplified in the news media by headlinesand lead paragraphs that are factually refuted in nearthe end of an article.

Or, one may read that “according to our interviews” aconclusion was reached. Such a conclusion may havebeen reached after only two people were interviewed,both themselves biased.

Reason, logic, and common sense are the first defenseof plausibility. If it doesn’t sound possible, it probablyisn’t.

. Who was responsible for the information? Whatwere the motives for providing it? What interest didthe source have in the outcome of his observations?

· Was the source in a position to see, hear, and judgethe evidence clearly? Are there other factors todistort the source’s observations?

· Does the source have any physical or psychologicallimitations, any inability to comprehend or under-stand what was observed?

· Can you detect a tendency to favor a particularoutcome of the event under observation? Are thereindications of the source as either hostile or sympa-thetic to the matter under discussion? Were theconclusions both feasible and logical?

. Are the views those of the source alone, or is somethird party, possibly a sponsor, dictating points ofview? If so, is the sponsor identified?

· Is the source favorably recognized by other author-ities in the field?

· Can the source’s evidence be independently verified?

· If there are conflicting accounts of the same event,what convincing factors are there to accept one eval-uation over another?

PLAUSIBILITY AND RELIABILITY – Historians arecommonly perplexed by quantitative reliability ofvaluation. So is business. Revaluing the cost of aforeign country’s bread in terms of current U.S.dollars, whether in the 17th century or last month, isa problem both face. As are comparing living stan-dards, or mechanical advantages, or determining thevalues of goods or products that have no immediatesales value (think housing valuations). Anomaliesfurther occur when only a few transactions arerecorded can be recorded for a substantially large base.

The Internet spawns multiple problems of reliability.They begin with the limitations of search engines andextend well beyond in all matters dealing with content.Dangers extend from anonymous sources, to contentoriginated by reliable sources that might have beentampered with and altered.

The responsibility to check is yours. First test plausi-bility: If a proposition is not reasonable, it may wellnot be dependable or accurate. As for reliability, use atest common to auditors: Discover one error, and besuspicious of the entire work.

2

6

CAUSE AND EFFECT – Causal relationships ascribeone occurrence, usually past, to influence the outcomeof another, usually present. As such, they are spectacularlydifficult to define and to disprove. The prime reason –the number of possibilities. The causes affecting so manyissues – consumer choice, global economic dynamics –are driven by an unfathomable volume of complex inter-relationships.

As in an historical analysis, causal relationships in busi-ness must be unwound, layer by layer, each independ-ently checked for accuracy. Easy to say, but it is hard,necessary work.

ANALOGY – Analogies liken one occurrence, usuallypast, to another, usually current. They provide shorthandexplanations of an event, encapsulating a brief summa-tion of a complex condition. Historical analogies are, ineffect, metaphors on steroids. Being suggestive, theybring emotional freight. They can be simplistic slights ofhand that render true or false conclusions by short-circuiting reasoning. Thus, they can be dangerous oruseful, depending on their construction and theiraptness. Often employed to sum up complex situations,they can be used by their authors to disguise either igno-rance or bias.

When using an analogy, the past event should be one thatthe audience is commonly aware. Its aptness depends onthe underlying details, developed from equal or compa-rable causes, and maintaining logical structures. In busi-ness, beware the canard “History repeats itself.” Thecomplexities of innovation, technology, and humanbehavior suggest caution before invoking such analogies.

RISK AND UNCERTAINTY – Risk generally impliesa state which can be assigned probabilities of occurrence,Another view, as stated by economist Frank Knight, isthat uncertainty has no known probability. ThatNapoleon knew there was a probability of defeat atWaterloo is safe to put forward. What the completefactors were in delivering his defeat are unknown, and inan absolute sense, unknowable.

Risk deals particularly with how likely some event willoccur. Insurance, for instance, if carefully constructed,

attempts to base its premium on the probability of anoccurrence happening. Distortions intervene when, forexample legislated regulations may require factorslimiting risk to one party, but amplifying it for another.

Uncertainty, bearing some degree of risk, has its owndynamics. It typically presents the analyst with a branch:go one way and be subject to A, go another and face B.Factors such as the stock market’s “animal spirits” aresubject to both risk and uncertainty.

Both historians, focusing on the past and business people,looking to the future, share a risk factor known to econ-omists and policy makers as “unknown unknowns.” Thatis, when all thoughts about given risks have beenexhausted, something really unimaginable happens.Unknown unknowns are neighbors of the Law ofUnintended Consequences; both stand guard againstcareless invocations of The Past is Prologue to the Future.

Careful construction of chronologies can help define risk.Take care to select appropriate time spans used to deter-mine risk, just as you should to judge value. Also, take careto introduce alternative methods of judging risk. For fullerappreciation of risk and the uncertainties that follow, studythe debate over alternative valuations of real estate mort-gages in 2008, particularly in regards to the accountingconcepts of “market-to-market” and “cash flow.”

Keys to risk management depend on transparency, fulldisclosure, accurate valuation, confidence in information,and diversification (risks that are not correlated with oneanother tend to be lower than those that are). Be suspi-cious of data on the Internet – and from governmentagencies – that can not be cross-referenced. If you consultlarge-scale databases, check if it has been compiled fromreliable third-party sources.

STATISTICS – How accurately statistics are able torepresent “the truth” transcends mathematical formulae.The methods used to collect, analyze, interpret, andpresent statistical data can, imperil results due to errorand bias. An error in any step can invalidate results. Payparticular attention to the choice of words used to presentfinal statistical evidence; such observations may conflictwith the numerical evidence.

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Statistics may be derived from a complete set of numbers(a whole population), or from a portion of thosenumbers (a sample), and are used as a basis for furtherobservations. Statistics themselves describe the mean,median, and mode of a set of values as well as deviations,distributions, and regressions. Only if samples are chosenon a truly random basis may the selection be said to berepresentative. Methods of displaying and summarizingstatistics include graphs, charts, tables, and diagrams.

To visualize this random sample, imagine that each ofthe 16 squares shown here represents a person. If unableto ask each person his opinion on an issue, the positionheld by the group as a whole can be estimated byselecting only a few and questioning them. If selectionwas made randomly, it may be said to be representative,necessary for returning valid results.

Random number generators, designed to provide apatternless series of numbers, are used to determine howa small group will adequately represent a larger, one(known as a sampling problem). Spreadsheets are oftenused to generate random numbers

Correlation is another important statistical concept.When one set of numbers follows another closely, thecorrelation is said to be positive. When one set does notfollow the other closely, it is said to be negative.

Expressed numerically, if the two sets of numbers areidentical, the correlation is 1. If there is no relationshipwhatsoever, it is 0. If the two are exact opposites, thecorrelation is -1. These indices, +1, 0, -1, are called thecorrelation coefficient.

Distributions describe the formation of sets of numbers.A normal distribution is a theoretical arrangement of datausually represented by series of points that, once joined,form a bell-shaped curve. They are the basic buildingblocks for statistical analysis.

A complete statistical analysis involves far more thannumber crunching. For the quantitative analysis itself,higher-end statistical packages that are loaded withfeatures may be needed. Full-feature spreadsheets, lesscostly and easier to use, also have many excellent features

sufficient for fairly complex work; some databases havebasic statistical functions; word processors will typicallyhave only rudimentary arithmetical capabilities.

LEGAL AND LEGISLATIVE CONTENT –

Regulations, set by federal, state, and local governments,present a particular challenge for analysis. Compliance(or noncompliance) must be identified as possibleconflicts among the regulations themselves, as well as biason the part of regulators in interpreting compliance orthe law. Questions to ask:

. Who designed the statistical analysis? Did thedesigner have prior experience? Any biases? Wereresults of the past work questionable?

. How was the analysis designed? What was thepopulation? Was the sample randomized and su•-cient?

. What statistical measurements have been employed?How were they chosen? Have they been proven reli-able and valid in past investigations?

. If cause and effect are described, how have theybeen determined, analyzed, and described?

. Were direct observations noted? Were differentconclusions reached? How have differences beenexplained?

. How was data collected? Could collections methodshave distorted the reported outcomes?

. Has the data been presented fairly? Can any arith-metic or conceptual errors be spotted? If categoriesare shown, have they been drawn fairly? Havedistortions been introduced by displaying graphsthat emphasize unrepresentative periods of time?

POLLS AND SURVEYS – Confidence in polling infor-mation depends on how the sample was determined, itssize, and its margin of error. Generally expressed as apercentage, a margin of error of 3 means that the outcomecould be 3% greater or 3% lower than the predicted results.“Push polls” are polls taken giving intentionallymisleading background, such as framing the questions in

8

such a way to influence the respondent. For example, thequestion “Don’t you think it is wicked of X to believe Y?”Elicits a “Yes.”

Be especially aware of how polls are used to influencepublic opinion rather than extract “the truth.” Forexample, were the survey questions “loaded,” did thepollsters override ambiguous answers with their owninterpretations?

Learn the underlying methods and techniques used.Apply a sense of logic to questions and responses.Questions to ask:

· Who commissioned the survey, and why was itcommissioned? Who paid for the poll? What arethe authors’ known biases and prior experience?What critical comments are available on past work?

· Were the questions worded in a clear, straightfor-ward, and unbiased way?

· What was the question format: (Yes (agree)/No(disagree)? A choice between two written or statedpositions)? An ambiguously worded question? Afreeform opinion on the part of the respondent(later interpreted by the pollster)?

· Were leading questions asked or intimidatingsuggestions made by the pollster(s) prior torequesting a response? Were questions asked in aconsistent manner? Were questions asked in alogical sequence?

· What was the level of response? What was the “noresponse” rate? Was the response truly representativeof the population?

· Were the respondents knowledgeable or competentto answer the questions?

· What statistical techniques were used to analyze the poll?

· Have the poll results been misinterpreted? How?

PROJECTIONS AND FORECASTS – In business,projections generally calculate values for time periodsranging from months to five or ten years, based on dataderived from past experience and anticipated changingcircumstances. Thus sales of a product may be projectedto follow percentage increases realized in past years,tempered by future advertising and shifts in demo-graphics. Forecasts, on the other hand are generally esti-mates predicted by a designated expert at a particularpoint in the future.

While projections and forecasts reflect past experience,they hardly support linear extrapolations. Once again,acute examination of “lessons of the past” is called for.Take a projection of market success. The effects of publicreaction, sales expertise, tax and regulatory impediments,weather, foreign affairs, and other factors may intrude.Again, value comes from the historian’s expertise intesting analogies.

Spreadsheets provide useful tools for calculating andpresenting forecasts and predictions. But any futuremodel must be comprehensible, reasonable.

Computers are rule-based. Be sure you know the rules asintroduced by programmers. Computer models, whetherspreadsheet-generated or stand alone applicationsfrequently lack documentation. Regard them not as“black boxes,” but as withdrawn snapping turtles, andtreat them with care. Obtain substantial information ondata used by the model, how it was obtained, verified,and what procedures were followed to calculate futurevalues. Fear of being thought ignorant often inhibits ananalyst to state, whether to a programmer or a seniorexecutive presenting a model’s results: “I do not under-stand, please explain step by step the underlying assump-tions and the method of calculating output.”

PATTERNS OF CHANGE AND SAMENESS –

Beware of comparing apples to oranges. Whether it isthe historical success of country A to country B, or asin the case of business, such semi-arcane world ofauctions, comparisons of hammer price (the last,accepted bid) to pre-sale estimates, but hammer priceto settlement price (which includes commissions due tothe auction house).

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When patterns break to follow distinct paths, the analystshould reflexively question the discontinuities, as well asthe mechanism behind newly constructed independences.

To test the complexities of prediction, select a currentevent (a security’s price, the value of the dollar to a foreigncurrency, sales volume of a given product, a demographictrend) and, using your knowledge of history, attempt aforecast of the next month’s levels. Check your resultsagainst reality. Was history your guide? If not, why not?Can you determine why certain trends are particularlyunreliable?

Linear or cyclical trends present fewer problems than dolong-term, meandering trends with wispy cause andeffect. Both may be valid trends.

Beware of false patterns: Results may be invalid as theresult of statistical techniques, or more simply the periodof time chosen as a base line. Careful analysis will revealthat the trend lines examined are controlled by theassumptions too complex to make history their guide.

DOUBLE CHECKING – Consider the principalelements used to convey messages by the media.Understand their strengths, weaknesses, and abilities topersuade. Assume you are analyzing a report.

Text – The fact that a report appears in print gives anair of authority. Do not be fooled! Fortunately, you canre-read print to better analyze the statements made.Questions to ask:

· Is the narrative clear? Do you understand exactlywhat happened? Does the report accurately reflectthe context of the event? Are any significant detailsmissing that could alter interpretation?

· Has an author signed the article? Do you reallyknow who he is? (On the Internet, an author canclaim he is anyone and can even invent a bogusorganization.)

· Does the article stick to known facts or are thethoughts of principals interpreted?

· Are opposing views given, or is there only one view?

· If there are conclusions are they consistent – or atodds – with the content of the story?

· Is the material formatted to look like something itis not? (Say, an official or legal document.)

· Are any of the statements put in quotation marksto ridicule them? (Example: “He is said to be‘honest’.”)

· Were remarks quoted out of context, or sequence?

· If hypertext connections are made in the article, dothey connect with relevant material, aiding theability to make an unbiased decision about whathappened?

Image – Images, much like text, must be examined crit-ically. Like spoken words, they can be powerfully decep-tive. Questions to ask:

· What techniques are used to create the images(photos, drawings, paintings, electronic images,maps, diagrams)? Does the technique used producea particular effect?

· Have the images been tampered with, or in any wayfalsified? Have they been artificially staged?

· Did the event really take place, or is the scene just“fictitious history?”

· Who selected the images? Have credits been given?If so, is the source credible and unbiased?

· How is the image composed? What is included inthe background, foreground, and sides? Have anyarrangements been made to overshadow the subject?

· How does the image relate to the text?

· Do captions appear under the images? Do theysupport or contradict the text accompanying theimages?

10

· If there are colors or shadings in the images, are theytrue to the originals?

· Were shots of people taken at intentionally flat-tering or unflattering angles?

· Did the image intentionally highlight personal char-acteristics, either positively or negatively, in orderto deceive? If a person, was the subject pictured notlooking presentable – disheveled, badly dressed, un-shaven, or ill-humored?

· Has an image been falsely posed next to a “smoking-gun?”

· What clues can be detected from a photograph orimage, details that can point to a particular periodor time of day, identify subjects, action, or context?

Voice – Sounds and sound effects can produce powerfulresults and distortions. Listen carefully to broadcasts andaudio clips.Questions to ask:

· Does the host ask the subject direct, pertinent ques-tions that help unravel the truth?

· When questions are unanswered by the subject, isthere an attempt to follow up with a second requestfor a direct answer?

· Is there a tone of voice or an intonation that mocksor suggests irony or sarcasm, or otherwise causesdisbelief, to portray the event is a way fitting thereporter’s bias?

· Have background noises been introduced to simu-late a false environment, or provoke some otheruntoward reaction from the listener? Are there loud(or soft) background sounds used to distract,soothe, or otherwise divert the listener?

· Has the subject slowed his speech to intentionallydistract the audience?

· Has music been used to stimulate a particularemotion or mood?

· Is humor or some emotive emphasis used to masksome problem, or win the audience over and detractthem from the principal intellectual issues?

Multimedia – As multimedia combines text, images,and voice, all the questions considered for text, voice, andimage reports should be considered when viewing multi-media. Questions to ask:

· Have visual props been used by the reporter todistract from the subject, or to create special effectsthat control the production?

· Does the producer, commentator, or reporter playdamaging footage over and over, amplifying nega-tive sound bites?

· Does the interviewer pace back and forth so thatthe person being interviewed will have to followhim with his eyes, thereby appearing shifty?

· Have a number of images been presented so as tooverwhelm, misdirect, or seduce the audience?

· Has unflattering footage been played over and over,combined with negative sound bites?

· Have video clips been spliced to give the impressionof uninterrupted action? Are fast forwards intro-duced to minimize key points?

· Have lighting effects, close-ups, or pans been intro-duced to distort the overall impression of the event?

· Have viewers been influenced by screening picturesof past events to support the current events, therebyfalsely coloring them?

11

Stat i s t ica l Terms

109876

→The median is thevalue appearingat midpoint.

The mean isthe average.

7+8+9+103

= 8.5

→

2,4 ,6 ,7 ,7 ,7

→The mode is thevalue that appearsmost frequently.

wholepopulation

unrepresentativesample

representativesample

normal or bellshaped curve

positivecorrelation

12

the Empire of Rome

t h e E m p i r e o f R o m e

Kerning – spacing between two individual characters

Tracking – spacing between characters and words.

Text justified /centeredNarrow columns can cause problems.

Text aligned leftHyphens can correct a “ragged right.”

A font is a set of characters of a given size and

style (normal, bold, italic). A font include letters,

numbers, symbols, and special characters.

Adequate white space(includes gutter) –essential for effectiveformatting).

The fonts used in this guide are:Adobe Garamond,© a serif font

Hypatia Sans Pro,© a san-serif font

Ligatures are special characters used to repre-sent two or more specific letters. For example,when f is followed by i, the ligature is fi, as in“The seven first centuries....”

asans-serif

aserif

Margins

In the second century ofthe Christian era, theEmpire of Rome compre-hended the fairest part ofthe earth, and the mostcivilised portion ofmankind. The frontiers ofthat extensive monarchywere guarded by ancientrenown and disciplinedvalour. The gentle butpowerful influence of lawsand manners had gradu-ally cemented the union of

In the second century ofthe Christian era, theEmpire of Rome compre-hended the fairest part ofthe earth, and the mostcivilised portion ofmankind. The frontiers ofthat extensive monarchywere guarded by ancientrenown and disciplinedvalour. The gentle butpowerful influence oflaws and manners hadgradually cemented the

Gutter (can refer to space between pages or columns.

fifiligature

no ligature

Forming Text

Note gapsthroughout

(font too largeor column size

too small forjustified text).

6 pt.

8 pt.

10 pt. 14 pt.

12 pt.

a a aaa

Type is measured in point size(72 points to the inch)

Leading – spacing between two lines.

a18 pt.

13

FRAMING CONTENT – The planned, researched, andanalyzed material now must be framed. Whether amemo, report, publication, or speech is planned, beginby writing your objectives in one brief paragraph. Yourwords will guide your next steps and should be useful asan introductory summary or a blurb for future publi-cizing. Then list the issues to be covered, developing ineffect a draft of a table of contents.

Add summary comments after each item, providingmomentum for the full text to come. This could be achronology – a skeletal history of the issue to be exam-ined, each element presented consecutively in terms ofits sequence in time. You will, in effect, determine ahistory – of an institution, enterprise, person, process,place, technology, problems, or ideas.

Begin work when you are freshest; schedule easy taskswhen less concentration is needed. Prepare your scheduleto minimize multi-tasking and interruption. Distractionsare your enemies: Extraneous, undirected web surfing,excessive data, organizing to avoid tough problem solving,egregious breaks, prolonged phone conversation, self-created excuses all foil planned completions. Do not delayshaping your thoughts, and excuses of “writer’s block”are not acceptable. Do not be concerned with masterfulprose. It is easier to edit than write from scratch.

Get to the point, do not ramble. Be specific: Weigh,measure, estimate. Do not write about “many issues,”state what and how many issues exist. Do they representa percentage of a significant whole? What may they becompared with? If currency is involved, is the rate ofexchange vis a vis the U.S. important? Should the amountbe adjusted to current value to take inflation into account?

By practice and discipline you will be able to write orspeak under even difficult conditions, able to producebrief, factual reports and memos under tight deadlines,respecting the rules of grammar, writing, spelling andpunctuation.

EXPRESSION – There are times you might want to “tella story”. Most of the time “just the facts” are required, albeitskillfully told. Consult the bibliography at the end of thisguide for references on writing. Here are some suggestionsto highlight what should be your principal concerns:

Vocabulary – Word choice. Keep them lean. Neverchoose words that your audience will be unfamiliar with.If you use foreign language quotes, include their transla-tion even if you think it obvious. Someone else may not.

Sentence structure – Again, keep them lean but lithe.Vary length. Sound out the rhythm of the words in yourmind, or out loud.

Grammar and spelling – Abuse grammar andspelling at your own peril. If you are not sure, check astandard reference book. There is no excuse for errors;professional respect depends attention to detail.

Annotation – Footnotes and annotations. Shouldscholarly conventions be followed, with footnotes andbibliography? For a formal report, most likely. Even if abibliography is not required, consider including one. Itwill be useful for future reference, especially if controver-sial issues arise. When challenged, you will find yourreferences invaluable.

Format – This involves more than choosing betweensingle or double spaced lines. It is also time consuming,and requires skill, patience, practice, and determination,all worth the effort, because format and design can bethe bridge between your words and the reader’s interest.

Begin by experimenting with how a few blocks of yourtext will look on a single bright white page. Choose anappropriate font. Generally, text written with a serif font(serifs are the short strokes at the beginning and end of acharacter) is easier to read then a san serif font, particu-larly in longer documents. San serif fonts can provideuseful counterpoints as headlines, or titles for graphics.Remember that the object is to make your work easy andpleasing to read.

Communicate3

14

Assume that your report will be printed on conventional8 ½˝ x 11˝ letter-sized paper. The challenge is how to setthe text effectively within margins and gutters. Linelength, font, justification are all important. More thannine to twelve words per line is difficult to read as arenumerous, narrow columns.

Write down your specifications as soon as the firstcomplete draft of your work is done. Your objective is acomprehensive style sheet for the entire document.Include specifications for titles, section headings andsubheadings illustration captions as well as body text.Note fonts and their sizes, leading, kerning, line spacing,special treatment (bolding, italics). With these specifica-tions, set the style sheets. This will save you time.

If possible keep pages either all portrait or all landscape.Make exceptions to this when text and images logicallymust appear on one page. We broke this rule in thisdocument in formatting the organization charts. Placingthem in a portrait orientation would have left a visualgap between elements, breaking their visual coherence.

In reviewing your work, study how the pages of typeappears at a distance. Examine the white spaces that setoff lines of typed words. The relationship between blackand white should be balanced.

ILLUSTRATION – should be just that, illustrating andsupporting, but not overpowering your written text ororal message.

Prepare images, photographs, and scanned works of artwith care. Scale and clarity matter; too small or crowdedwill only frustrate your audience. When scanning imagesscan in color, whether the image is in color or black andwhite. Scan at high resolution – 1200 dpi for example.This will assure the maximum detail. If your image isblack and white, convert to grayscale and manipulate theimage using Adobe Photoshop© or some other imagemanipulation application of your choice.

Avoid using the default “auto correct” options. Try usingsimple controls such as “brightness and contrast,” toadjust the image or clean up spots on background or

other imperfections. Then convert the image to bitmapto reduce file size.

Statistics, polls, financial analyses, and many narrativescan be explained clearly with dramatic punch by judi-cious use of graphs and charts. Construct them accu-rately. Do not overpower your text with graphs thatdetract attention from your message or compelling,factual narrative.

CONCLUSIONS AND RECOMMENDATIONS –

Summaries are essential, succinct, informative summa-tions that will remain in your readers’ minds. In business,recommendations must follow conclusions. How toaddress and redress the problems encountered, or buildon positive steps. At the heart of conclusions and recom-mendations are concrete statements that will make meas-uring the success or failure of your recommendationspossible. Study The Doctrine of Completed Staff Work(page 19) with care.

REVIEW – Reread and proof your work. Examine yourcontent remorselessly, checking and rethinking details.Errors are not to be tolerated. Be prepared to edit and re-edit. Before your copy is final, make sure you have:

· Tested and verified the accuracy of the data, consid-ering opposing points of view, observations, andevaluations.

· Noted the significance of issues and events.

· Differentiated between assumptions and statementsof fact.

· Dealt logically with ambiguity, interpreting itsmeaning and significance.

· Weighed uncertainty, indicating the degree towhich outcomes are probable.

· Drawn valid analogies with past and present eventsthat your audience will recognize.

· Recognized and identified both cause and effect.

15

Graphs are plottedalong lines, called axes.

Graphs and Charts

Line charts – show trendsand changes over time.

Samples of charts use in business applications:

Jan Feb Mar

$100

$75

$50

$25

Apr

100

75

50

25

0

x-axis

y-ax

is

x-axis

y-ax

is

z-axis

2-d graph

3-d graph

y-axis

x-ax

is

x-axis

y-ax

is

To improve effect, axes may be rotated.

Coordinates are used to locate the point atwhich the data are plotted. To enhancevisual impact, points are frequently joinedby lines. Coordinate

100

75

50

25

01st 2nd 3rdTo better represent values, axes are given scales –

also known as intervals. In arithmetic graphs, theintervals are placed atequal distances, Here,each y-axis interval isequal to 25 units, andeach x-axis representsone year.

100

75

50

25

01 2 3

↕

scale

→baseline

In ratio, and logarithmic graphs,scale is not represented by equi-distant intervals. Rather inter-vals are shown in increasing (ordecreasing) frequency.

→

3-d perspective column charts –compare series of items.

Column charts – comparegroups of similar items inorder to display theirtotals. (see also bar charts)

1st Quarter

$100

$75

$50

$25

Year 1 Year 2

30

60

Pie charts – compare partsof a whole at one point intime.

9%

91%

Area charts – showmultiple trends andchanges over time.

Jan Feb Mar

$100

$75

$50

$25

Apr

A

B

C

Stock charts – show high,low, open, close, and totaldaily range share prices.

Mar 5 Mar 6 Mar 7

$90

$85

$80

$75

Apr 8

Bar charts – compareindividual items in thiscase over time. (see alsocolumn charts)

Jan Feb Mar

$100

$75

$50

$25

Apr

16

· Discussed why your evidence is both credible andaccurate.

· Evaluated your evidence in its context.

· Linked details to broad-based issues.

· Represented differing opinions, judgments and views.

· Recognized and explained historical patterns.

· Quantified findings and converted them to numer-ical data, assuring that statistical inferences can bemade and that complete sets of numbers exist,representing a valid sample. Identified whatmethodology will be used to subject the data tofurther statistical analysis.

· Judged fairly. Taken care that inference has notdisguised itself as certainty.

· Answered: Who, what, why, when, where, and howmuch.

· Described complex issues simply.

· Drawn clear, logical, and concise conclusions.

· Made positive recommendations for action,including mechanisms for future monitoring andevaluation.

· Illustrated with appropriate graphs, timelines, orimages, to focus or call attention to your central point.

· Edited to produce a coherent, consistent style.

· Double checked for accuracy, paying strict attentionto detail.

· Identified your sources, giving them accurate andcomplete attribution.

· Placed material in to appropriate electronic format(word processor, spreadsheet, database) to assurefuture ease of use.

· Produced a sound document that demonstratescommand of the English language, rules ofgrammar, spelling, and punctuation.

ORAL PRESENTATION – Synthesize the informationyou have already gathered and analyzed. Import, or cutand paste appropriate material from your analysis forproducing notes.

Rehearse – if you depend on notes or full text, practicehow to orchestrate looking down at notes, then up atyour audience. Do not address the horizon. Look directlyfrom one individual of the audience to another. Showpleasure at being there, consider the audience yourfriends even when they are not.

Your breathing will control your cadence. Practice,memorize what you can. Be thoroughly familiar withyour own written words. Time your presentations inorder to know how many seconds, or minutes it takesyou to read one page of formatted script.

Do not rush though a presentation, speak naturally as ifto a friend who has a slight loss of hearing. Learn tobreathe and enunciate clearly. Words should be formedin one’s throat and chest, not in one’s nose. Iron outverbal ticks – “er’s or “ums.” Do not use jargon. Do notrepeat phrases such as “you know.” Choose words thatfit your audience’s expertise.

Be clear about your tenses: if a position is held now, usethe present tense, if it was a position held in the past, usethe past tense. If you are talking about the future, makeit clear that it will or shall be.

Do not bore with unnecessary statistics. Key your talk towhatever illustrations you may have. Beware of thepossible distracting effects of visuals. Your audience mayconcentrate on a particular image when you want theirattention focuses on your words.

Answer questions directly. If you do not know, say so andconvey what you will do to remedy it.

Plan interesting ways to support your oral report.Consider Overhead projections or sound clips. Avoid

17

Completed staff work is the study of a problem, andpresentation of a solution, by a staff member, in suchform that all that remains to be done on the part ofthe boss is to indicate approval or disapproval of thecompleted action. The words "completed action" areemphasized because the more difficult the problem is,the more the tendency is to present the problem tothe boss in a piecemeal fashion.

It is your duty as a staff member to work out thedetails. You should not consult your boss in the deter-mination of those details, no matter how perplexingthey may be. You may and should consult other staffmembers. The product, whether it involves thepronouncement of a new policy or affects an estab-lished one, when presented to the boss for approvalor disapproval, must be worked out in a finished form.

The impulse which often comes to the inexperiencedstaff member, to ask the boss what to do, recurs moreoften when the problem is difficult. It is accompaniedby a feeling of mental frustration. It is easy to ask theboss what to do, and it appears too easy for the bossto answer. Resist the impulse. You will succumb to itonly if you do not know your job.

It is your job to advise your boss what she or he oughtto do, not to ask your boss what you ought to do. Theboss needs answers, not questions. Your job is to study,write, restudy, and rewrite until you have evolved asingle proposed action--the best one of all you haveconsidered. Your boss merely approves or disapproves.

Do not worry your boss with long explanations andmemos. Writing a memo to your boss does not consti-tute completed staff work. But writing a memo foryour boss to send to someone else does. Your views

should be placed before the boss in finished form sothat the boss can make them his or her views simplyby signing the document. In most instances,completed staff work results in a single documentprepared for the signature of the boss without accom-panying comment. If the proper result is reached, theboss will usually recognize it at once. If the boss wantscomment or explanation, she or he will ask for it.

The theory of completed staff work does not precludea rough draft, but the rough draft must not be a half-baked idea. It must be complete in every respectexcept that it lacks the requisite number of copies andneed not be neat. But a rough draft must not be anexcuse for shifting to the boss the burden of formu-lating the action.

The completed staff work theory may result in morework for the staff member but it results in morefreedom for the boss. This is as it should be. Further,it accomplishes two things:

1. The boss is protected from half-baked ideas, volu-minous memos, and immature oral presentations.

2. The staff member who has a real idea to sell isenabled more readily to find a market.

When you have finished your completed staff workthe final test is this:

If you were the boss would you be willing to sign thepaper you have prepared, and stake your professionalreputation on its being right?

If the answer is no, take it back and work it over,because it is not yet completed staff work.

The Doctrine of Completed Staf f Work

This copy of The Doctrine of Completed Staff Work was found on www.dolan-heitlinger.com/Quote/StafWork.htm with the

following note: “The best original source I have found find for this wonderful piece is from Canadian Major W. H. (Hazen)

Codner, Detachment Commander, RCSU (Prairie) Det Edmonton. He sent me a full military copy signed by Brigadier G.

E. R. Smith, DDST, Supply and Transport Branch, HQ, First Canadian Army and dated 9 August 1943.”

18

“Power Pointitis” or obnoxious use of badly formattedcharts. While visuals can enhance a talk, they can detractfrom your message.

Publicize – Remember, “we are all in sales.” Your work,you thoughts must be marketed, your ideas sold. If yourwork is not made known, your goal is hardy met. Useyour notes and drafts to fashion publicity statements andflyers. Begin with your “objectives” statement. Spend thetime needed to prepare a thoroughly professionalproduct. Any errors will destroy your credibility.Questions to Ask:

· For whom are you presenting your work? A known,specific person or group, or an yet unknown personor a group with an unknown background?

· What does your audience expects from your pres-entation? Have you addressed this directly? Willthey find it easy to read or listen to?

· Is your point of view effectively presented: precise,engaging, and specific? Is it memorable?

· How will you stimulate your audience’s interest?Does it leave your audience convinced and eager tofollow you train of thinking, your conclusions andrecommendations? Will the material increase youraudience’s knowledge?

· Do illustrations provide visual clues to support yourtheme?

· Can you deliver your presentation in the allottedperiod of time?

Jobs vs . Careers

What should you do about employment after graduation? Perhaps you know exactly whatyou would like to do. Perhaps you have somewhat undefined career goals, or even no careergoals whatsoever. No matter which, follow the same process outlined on these pages.

First, a word about terms. Jobs meet short-term needs, and may not involve long-termgoals. The type of employment is generally secondary to economic considerations.Nevertheless, jobs may teach valuable lessons and/or turn into careers. Careers are selectedfor long-term prospects. They can involve a variety of jobs in different fields or areas aslong as you stay focused on some future goal. Given a positive attitude, the differences inthe two can therefore be minimal.

How can your studies add value to your first job? By reaching back into your studies in theliberal arts, a method of approaching some career goal should be apparent. Your studiesshould have taught you to think critically, analyze dispassionately, communicate withpower and clarity, and ask intelligent, meaningful questions. It also should have empoweredyou to better understand the human condition: who we are, where we came from, andwhere we are going.

Your studies do not necessarily assure you of any employment. A job offer and a satisfyingcareer won’t happen without effort on your part. Begin your search looking for a career orjob that you would be keen on, rather than looking for an employer who is seeking someonewith your particular qualifications. This requires a clear vision of yourself—your own goalsand abilities. Begin your search with introspection.

19

TAKE INVENTORY – As a first step towards consid-ering a future career, take stock of yourself: who you are,who you would like to become, and your goals. Examineyour own life as an historian should, dispassionatelyselecting significant facts. Record this data electronically,so that it can be used to build your résumé and othersupporting material later in your employment search.

Begin by compiling information on your accomplish-ments from high school to the present. Build a portfolio,short pertinent examples of your accomplishments thatmight be applicable to your future work. Include data onyour college major, your minor, and any particularcourses you excelled in. Indicate your grades.

Cite other activities: internships, jobs, voluntary commu-nity service, sports achievements, or any other notableextracurricular activities. Add information on pastemployers, your responsibilities, and how your effortsresulted in positive results. Gather newspaper clippings,or examples of outstanding papers or reports you havewritten. Your objective is to collect concrete informationon what you have done, and how it relates to the positionyou seek.

What did you accomplish that drew upon both youracademic knowledge and skills? How have your studiesdirectly improved your usefulness to a future employer?

When compiling your information, refer to the checklistsfound on page 23. In your self-appraisal, take note ofpositive traits by citing (modestly) successful incidents inyour life and studies. Committing such details to writingwill help you appreciate your strengths and weaknesses.

At the same time, think about how to strengthen yournegatives. Character and positive attitudes count.Employers, understandably, seek honest, proactive teamplayers who can motivate others. Such attributes areunder your control. Sharpen them.

KNOWLEDGE AND SKILLS – Academic scores areimportant, but by no means the sole factor of importanceto potential employers. Being a liberal arts graduate maysuggest that, as a generalist, you may be able to take abroad view of events. Senior executives are praised forbeing generalists, junior employees are hired to be special-ists. They must be able to demonstrate how and whytheir studies make them useful.

Divide your list into two categories: Knowledge of yourmajor subject, and command of skills used in masteringthis subject. For example, what have you learned about aparticular period, region, or specialty that is applicableto a nonacademic career ? Can you draw analogies fromyour studies that apply to current events? How haveparticular economic or business events changed thecourse of history; what was their cause and their effect?What skills have you learned: Reasoning, writing,analyzing, researching?

Most jobs involve research – collecting and analyzingqualitative and quantitative data, drawing conclusions,then reporting on findings both in writing and orally. Alldeal with people: Working productively, teaching, andconvincing them. As the maxim goes, “we are all in sales.”

WORK HABITS – are learned through example andpractice. Once becoming second nature, they will proverewarding and satisfying suggestions:

· Focus and distraction – Avoid multitasking whenworking or pondering problems. Shutter yourselffrom conversation and the buzz of the outsideworld. Concentrate on completing one task at atime.

· Details and accuracy – There is no whole if the partsdon’t hold together. Details and accuracy matter!Do not expect anyone to correct your errors kindly.

CAREER ADVICE4

20

· Originality – It is your own ideas and insight thatgive you value. Emulate selectively, adding personalimprovements and flair. Never plagiarize.

· Procrastination – Learn to place priorities on work.When possible, complete critical work first; ifwriter’s (or thinker’s) block intervenes, take a breakby completing smaller, but still essential tasks. Writeoff nonessentials.

· Self-evaluation – Size up your daily work. Learnwhich strengths to emphasize, which weaknesses toovercome.

· Effort – Remember Edison’s sizing up of success:“99% perspiration, 1% genius.”

RESEARCH TARGETS – Learn about business – howit is conducted. Studying history you are largely a spec-tator viewing images of people, thoughts, and actions.Your tasks, confined to specific curricula, are for the mostpart contemplative and solitary. In contrast, business ispeopled with colleagues, superiors, subordinates, clients,prospects, competitors, lenders, investors, and those whoare empowered to regulate and tax you. Tasks are sharplyfocused, and day-to-day tasks lack the “big issues” onwhich academic thoughts are trained. Research itself isnarrowed to specific, frequently mundane and mechan-ical tasks requiring acumen and specialized knowledge,performed under stringent time limits. None of this saysthat creativity is not rewarded, or that productivitycannot be satisfying. It is simply a different mix of andapproach to costs and benefits.

Organization charts show how people and their dutiesrelate to each other. The charts shown as Appendices Band C (pages 37 and 38) are highly generalized; in reality,each entity organizes around the product or service itproduces, with departments such as finance or informa-tion management serving as support. As business historianAlfred Chandler put it: “strategy determines structure”.

When investigating a career, study the actual organizationchart of the entity that interests you. For larger corpora-tions, organizational charts may be found on the Internet.

Research potential employers, before contacting them. Ifthe organization is publicly held, begin with the commu-nications/public relations office. Request a copy of thelast two Annual Reports. Visit their web site on theInternet. Read the pages carefully, then check for relatedemployment openings on job search sites. Ask if youcould talk to someone on the professional staff who cangive you background information on the organization.Come to any meeting well prepared on the organization’sactivities and why you could add value to their staff.

Network with friends, teachers, career advisors, andprofessionals you come in contact with – at your bank,an insurance company, newspaper, Internet chat rooms,elsewhere. Use your imagination. Ask for names ofpotential employers and employees for contacts.

While searching the internet and print media for employ-ment opportunities and demands, note:

· Education requirements vary greatly. The Bachelorof Arts (BA) degree is likely to be required for mostpositions. A Master of Business Administration(MBA) will be needed for a business career while aMaster of Arts (MA) will be required for a publichistory career. Professional degrees are required forsome legal, accounting, health or other specializedcareers.

· Experience can include summer jobs, internships,hobbies, and personal experiences.

· Training can be acquired prior to, or after, employment.

REFIT – At the time you are collecting information,reconsider what it is you have to offer employers. Inparticular consider whether graduate study in history orin another field is advisable (some employers may acceptyou in an entry level position and offer an incentive tohelp complete studies). Consider supplementary under-graduate courses, specifically those covering quantifica-tion and qualification.

From time to time all occupations judge value. Whetherdealing with possessions or with ideas, we make decisions

21

to buy or sell, to support or oppose. Judging value isimportant in business and the language of business is saidto be accounting. While a degree in accountancy is notmandatory for employment, anyone considering a busi-ness career should able to fathom annual reports andrelated financial statements as well as grasp basic statis-tical and polling concepts.

Computer literacy, another business requirement,includes familiarity with basic computer applications –word processing, spreadsheets, and databases. It alsoinvolves extracting information from the Internet, andfamiliarity with applications that aid “qualitative analysis”of subjective, unquantified data whose purpose is to:

· Extract meaning from voluminous unstructured data· Assess in relation to various periods of time· Reconstruct past events· Analyze intent, methods, style, and theme· Compare with other documents

The use of all computer applications requires constantvigilance of both the underlying data’s reliability and theprogramming methodologies that claim to producesound conclusions. Any experience dealing with suchissues is highly beneficial to academic as well as businesscareers.

ACTION – Once prepared, draft a résumé and prepareto call on prospective employers. Suggestions:

Résumé - Well-crafted résumés can open doors topotential employers but they are part of a process, not anend product. Employers do not hire résumés, they hirequalified individuals.

· Be truthful, accurate, specific, relevant, and succinct.

· Summarize your qualifications in telegraph form.Complete sentences are not necessary.

· Express yourself with flair. Use verbs that demon-strate accomplishment, action.

· Distinguish yourself. Provide evidence of uniquecapabilities.

· Build a cohesive profile. Show how you can applyacademic knowledge and skills in other areas.

· Ask for comments about your résumé. Show it topeople who are experienced in the field you wish tochoose.

· Print your résumé on high-quality, white paper.Print it on a laser printer – do not use an ink jetprinter unless the quality is indistinguishable froma laser or offset printer.

Contact by writing – Your words are your represen-tatives. Write with care.

· Keep initial correspondence lean and focused.Letters should be no longer than one page. E-mailsshould be shorter.

· State your purpose clearly, courteously. Isolate andemphasize your key points. Do not bury them inthe middle of long paragraphs.

· Consider not enclosing your résumé in a letter to apotential employer. Ask for a meeting to present itin person.

· Follow up unanswered correspondence with phonecalls.

Contact by phone – Words and delivery matter.

· Draft a script before you call. Include all salientpoints: who you are and what you want. Memorizethe script – do not read it on the phone.

· When phoning, improve your delivery by sittingerect. Square your shoulders, smile and breathdeeply.

· Speak slowly, distinctly. Pronounce your words withcare. To convince others you must be comprehensible.

· “Please” and “thank you” must be part of yourscript. A pleasant tone and cheerful greetings addmuch good will.

22

· When leaving messages on voice mail or answeringsystems, clearly repeat your name and phonenumber twice.

· Phone calls can be productive but are no substitutefor personal contacts. When possible, request ameeting.

Interviews – Be thoroughly informed about yourpotential employer before requesting an interview. Thisincludes the organization, possibly suitable positions, andthe individuals with whom you might speak.

· Request an interview with a senior member of theunit you would like to work for (rather thansomeone in Human Resources). This will increaseyour chances of a job offer.

· Outline, then rehearse your presentation. Tape itfor review, or ask a friend to critique your perform-ance.

· Go with a positive attitude – about yourself, yourhost, and the opportunities you are pursuing.

· Arrive on time for your interview (and be punctualfor subsequent meetings). Dress appropriately; if indoubt, research the dress code. Shake hands firmly;maintain eye contact. Speak clearly and audibly. Situp, don’t slouch. Address your interviewer in arelaxed manner, using coherent grammaticalsentences. Do not begin sentences with fillers suchas “like” or “you know”.

· Demonstrate enthusiasm for your prospectiveemployment during your interview. Point out whyyour education and experience has suited you.Discuss job details that you are familiar with;impress your interviewer that while you can see “thebig picture” you can also keep track of the details.

· Do not waste your host’s time. After initial pleas-antries, be businesslike, direct, and brief. Be tactful:do not assume you host's opinions will coincidewith your own.

· After the interview, promptly thank your interviewerfor the time spent with you, by letter or e-mail.

· If no positions are available, ask for advice. Requestthe names of other people to call on, and for jobleads.

· Request feedback about your meeting from yourinterviewer or another staff member. Ask for aninformal evaluation of your presentation, yourrésumé, and your qualifications.

· Do not lose heart, or feel personally rejected, whena potential employer tells you that there are no jobopenings. Keep searching. Learn as much as youcan about the job market, and what you have to doto successfully market yourself. Don’t look forexcuses. Persevere!

· Do not be discouraged if you cannot see an imme-diate link between your first job and your majorcourse of study. There is no need to turn your backon disciplines you value, nor should you. Look forways to apply what you have learned – knowledgeand skills – no matter what your professionalpursuit. You can always continue your studies andmaintain your academic interests as an independentscholar, on your own time.

A job search requires preparation, hard work, risk-taking,and opportunity. Remember: “Chance favors only theprepared mind.”

23

Academic & civic achievements

q Have achieved academic excellence.

q Have achieved recognition for accomplishments in nonaca-demic areas.

Communications skills

q Able to write clear, logical, grammatical, compelling proseunder tight deadlines.

q Able to write in various styles and formats, i.e. press releases,memos, grant proposals, and long topical reports.

q Able to produce accurate work the first time, and to meticu-lously proof read.

q Able to effectively present oral and graphical material beforevaried audiences.

Interpersonal skills

q Able to develop and maintain personal networks and teams.

q Able to lead, motivate, and when applicable, follow yourleader.

q Able to work effectively within disparate cultures withoutloss of personal integrity.

q Possess tact.

Quantitative / qualitative skills

q Able to work confidently with numbers and words, solvingboth numerical and qualitative problems.

q Able to search for, retrieve, and use information fromdiverse sources: people, print media, libraries,Internet/Intranet.

q Able to analyze and interpret statistics, polls, and surveys.

q Familiar with basic accounting principles; able to analyzeand interpret financial statements.

Computer-based skills

q Possess working knowledge of popular computer applica-tions packages: word processors, spreadsheets, data bases,(graphics and desktop publishing applications helpful).

q Able to navigate the Internet with confidence and effect.

q Able to work with and develop financial and scientific models.

Business acumen

q Able to organize and direct processes, projects, and people.

q Able to set priorities.

q Aware of pertinent current affairs (business, economic, andpolitical) and their historical antecedents.

q Be at least somewhat familiar with basic financial reports,especially budgets.

q Understand the ways and means that businesses operate.

Moral and ethical character

q Able and willing to distinguish between right and wrong.

q Able to consistently adhere to an accepted code of ethics.

q Sense of personal responsibility for legal and ethicalconduct, for yourself and for others with whom you work.

Attitudes

q Positive attitude toward your work, those with whom youwork, and your life in general. An ability to face routinesand adversity with good cheer and enthusiasm.

q Eager to excel.

q Willing to take reasonable risks.

q Hard working and persistent; insistent on successfullycompleting what you have begun.

q Flexible in response to changing conditions and needs (butsteadfast as to your morals and objectives)..

q Curious to understand what you do not know andapproach problem-solving in a logical way.

q Confident in your own worth and abilities, but eager,willing and able to improve them.

Work habits

q Dedicated to excellence and success.

q Dedicated to careful, orderly, accurate work, focusing ondetails while keeping in mind final, abstract objectives.

q Able to work under pressure, maintaining productivityunder stress, and working effectively on a schedule thatincludes numerous tasks.

q Able to transform abstract instructions and ideas into prac-tical, concrete results.

q Self-starter: able to maintain self-discipline and workwithout supervision. Prompt to arrive and willing toremain after formal hours.

q Able to work cooperatively and courteously with a broadrange of people, with varying aptitudes, skills and attitudes.

q Able to take direction from superiors with grace, andwithout obsequy.

q Able to perform well within a routine, repeating processeswithout losing concentration, accuracy, or flair.

q Able to ask penetrating, meaningful questions, with tact.

q Able to complete assignments successfully, regardless ofdifficulty or inconvenience, to draw conclusions, and to acton them to assure successful completion.

Personal Assessment – Achievements & Attributes

24

The Avocation of History

Just because you do not earn a living “doing” history does not mean you are shut out ofthe historian’s preserve. Amateur historians can – and do – write history, practice historicpreservation, monitor history teaching on school boards, participate in historical reenact-ments, sustain historical societies, collect historic objects and documents, and otherwisesupport the promotion and use of history.

Similarly, the study of history and historical methods is not bounded by one’s past formaleducation. Opportunities abound to continue learning, by reading, formal courses, onlineinstruction, or volunteering to assist in historical enterprises.

Whatever your goals, history can be your avocation. Participate:

· Read, research, and write history.· Preserve, restore, and recreate historic resources. · Teach history as a volunteer.· Participate in historical reenactments. · Contribute time, expertise, and funds to historical associations, museums, and libraries.

25

I. Judging Value and Producing Worth

The financial value of an enterprise can be determinedthrough its financial records. One set of these records,financial statements, provides a particularly handy meansof beginning an analysis.

Like an X-ray, financial statements can expose the struc-ture of a business’s financial condition, but they do not,and cannot, present a moving three-dimensional image.Nor are financial statements self-explanatory. Theyrequire training and skill to analyze, and experience tointerpret. A full understanding of financial transactionstakes knowledge of accounting and access to source mate-rial, but much can be learned from an informed layreading of published reports.

The product is what an enterprise offers the public. Itcan be tangible (a toaster), or intangible (counseling serv-ices), or some of both (a book). Worth is produced by anefficient interaction of resources, processes, and products.

To successfully create and distribute a product requiresorganization. Organization charts show how personnelrelate to each other and to their assigned tasks. For exam-ple, small firms combine functions (such as public affairsand marketing), while larger ones expand the number ofdivisions, each emphasizing a particular specialty.

Impersonal resources are needed to make the product.They may be tangible, such as land where a business isconstructed, buildings, tools, or the raw materials used tocreate products. They may also be intangible, unable tobe seen, touched, or weighed such as good will andemployee knowledge. Or, as in the case of money, theymay be physically tangible while having pronouncedintangible properties.

Processes convert resources to saleable goods or services.Some utilize physical actions, such as assembling a com-puter. Others involve the manipulation of symbolicconcepts. Accounting, for example, translates physicalresources into values represented by dollars and cents.

Journal

SourceDocument

Ledger

TrialBalance

F i n a n c i a l R e c o r d s

BalanceSheet

Statement of Cash Flows

IncomeStatement

CostAnalysesBudgets

Analyses ofReceivables

FinancialProjections

SalesAnalyses

AnnualReport

Fin

an

cia

l S

tate

me

nts

F i n a n c i a l R e p o r t s

Appendix A – On F inanc ia l Statements

26

II. Understanding Financial Statements

Elements of contemporary financial records may betraced from ancient Babylonian, Egyptian, Greek,Roman, and medieval European civilizations. Enhancedby the growth of Mediterranean trade at the time of theCrusades (circa 1095-1290), merchants and bankersimproved financial controls, laying the system of doubleentry bookkeeping that underlies today’s financial state-ments as discussed here.

Income statement – (also referred to as the Statementof Earnings and Statement of Operations) shows a firm’searnings and the expenses. It reflects only some of theactual cash transactions. By convention, the statementcovers a twelve month period.Sales include what is earned from the sale of a company’s

goods or services. They are often shown as being “net,” asin “net sales” – meaning some deduction may be fromthe total sales figures. Deductions may be from discountsgiven to customers, the value of products returned, orspecial incentives offered to buyers.

When only the actual cash amounts received from sales orexpenses are shown, the business is said to be recordingrevenues and expenses on a cash basis. On the other hand,if sales and expenses include amounts which customersor the firm itself have only agreed to pay and no cashchanges hand, then sales and expenses are said to berecorded on an accrual basis. Most firms – almost all thelarger ones – record sales and expenses on an accrual basis.

Cost of sales includes such items as product and trans-portation costs – all the direct cost of creating the finalproduct.

Gross Profit is the result of the entire cost of salesdeducted from sales.

General expenses are those expenses related to the admin-istration of the whole firm, particularly such items asoffice expenses (salaries, rent, stationary, etc.).

Provisions for bad debts (also called provision for doubt-ful accounts) are made because a business often assumesthat some customers will not pay what they owe, and arebased on past customer experiences. Provisions for baddebts have been found on financial records of the MediciBank (1397-1494), though explicit methods for estimat-ing uncollectibles remained undeveloped until the 1880’s.

Depreciation differs from other expenses in that it doesnot reflect a direct outflow of funds but rather a concep-tual amount set aside to provide for replacement of anasset. The concept itself is old. Vitruvius, writing onarchitecture during the Roman Republic (27 BC - 14AD), used what we know as the straight-line deprecia-tion method when he advised deducting a fixedpercentage of a wall’s cost over its useful life. The practiceof showing depreciation as a cost on the IncomeStatement was only formally recognized as a deductibleexpense for tax purposes by U.S. law in 1909.

Interest represents payments made for the use of loans orother borrowed funds. The concept of interest may be asold as money itself. Babylonians were aware of compoundinterest calculations as early as 1800 BC. Distaste forinterest has been equally long-standing. Denounced byAristotle (384-322 BC), lending money at excessive rates,known as usury, was banned by Pope Clement V in 1312.

Taxes on income are amounts set aside to pay federal,state, or municipal income taxes. Taxes on items otherthan income (payroll, for example) may be found underother expense headings.

First proposed to finance the cost of the War of 1812,income taxes were not actually levied until early in the

SalesCost of sales

Gross profitsGeneral expensesProvision for bad debtsDepreciationInterest

Total expensesEarnings before income taxIncome tax expense

Net earnings

$ 2,000800

1,200600

40300100

1,040160

64$ 96

Income Statement

27

Civil War (1861) and were repealed shortly after the con-clusion of hostilities in 1864. The Tariff Act of 1913reintroduced the income taxes, extending it to corpora-tions. As the Constitution prohibited direct taxation bythe federal government, the 16th Amendment was passedthat same year. Since 1913, growth of federal and stategovernments’ demands for funding has caused the taxcode to become bizarrely complex.

Net earnings (also called net income) are the final resultof the Income Statement after all legally permittedexpenses and taxes have been deducted. The significanceof this widely cited item, often referred to as “the bottomline” is discussed further below.

Balance Sheet – Balance sheets have changed littlesince they were popularized by a true Renaissance man,Fra Luca Pacioli (c. 1455 - c. 1517). Mathematician, logi-cian, and collaborator with Leonardo da Vinci, Paciolibrought his grasp of natural harmony and equilibriumto accounting practices then already 200 years old.

Using a simple equation, that assets equal liabilities plusequity, the balance sheet represents what a business owns,and what it owes. Assets are economic resources ownedby the company, liabilities are amounts owed to others.Equity, the amount “owned” by shareholders, is equalto assets minus liabilities.

A balance sheet is drawn up (“struck”) at one specificperiod of time: On December 31st or at the close of atwelve-month period established by the business (knownas a fiscal year).

Current assets are items that can be converted to cashduring a firm’s normal business cycle, and are thereforeconsidered “liquid.”

Cash & equivalents include cash, checking or savingsaccounts, and other investments that may easily beturned into cash. These are said to be the firm’s most liq-uid assets.

Accounts receivable are legal agreements between sellerand buyer to pay for purchased items. Payment terms areset by the seller, who commonly will state a period oftime the buyer may purchase an item without incurringa penalty. “Net 30 days,” for example, means the buyerhas a thirty-day period to pay before late charges areassessed. Care should be taken in investigating the sound-ness of these receivables. Is there evidence that thecustomers are able and willing to repay them promptly?Have provisions been made to deduct the adequate sumsfor doubtful receivables?

Inventories include material needed to produce or com-plete the product. They may be coffee beans and bakingsupplies for a coffee shop, or finished or semi-finishedcomponents for a car manufacturer. Inventories are gen-erally carried at the lower of their cost or their marketvalue, a concept appearing as early as 1393 in Englishestate valuations.

Fixed assets include land, buildings, and machinery, theresources used to produce the firm’s goods or services.Fixed assets are items that are not consumed in makingthe enterprise’s product. In the case of buildings andmachinery, fixed assets are subject to depreciation (see

A s s e t sCurrent assets

Cash & equivalentsAccounts receivableInventoriesTotal current assets

Fixed assetsGross fixed assetsLess: accumulated depreciationNet fixed assets

Intangible assetsTotal assets

$ 1,136160200

1,496

3,000300

2,700100

$ 4,296

Current liabilitiesAccounts payableLong-term debt due 1 year Total current liabilities

Long-term debt

EquityCapital stockRetained earningsTotal equity

Total liabilities & equity

$ 200100300800

3,000196

3,196$ 4,296

L i a b i l i t i e s & E q u i t y

Balance Sheet

28

Income Statement). Land, in contrast, may not be depre-ciated, but may be depleted, that is its value may beshown to decrease over time, as in a mine once all the orehas been recovered.

Intangible assets include such items as goodwill – the rep-utation enjoyed by the firm – patents, copyrights,trademarks, and franchises. All but the last have long his-tories, goodwill having been ruled a legal right in 1620following a 200 years English proscription. Professionaldiscussion of intangibles appears in the literature around1916, but was not reflected on sample balance sheetsuntil 1936. Placing an exact value on intangible assets isdifficult.

Current liabilities are those obligations a firm must meetin a period of one year. These may be amounts due forlong-term loans, or it may be for payment agreed to bythe business itself – for instance, supplies or services.

Accounts payable include all amounts contractually owedby the corporation in a twelve month term. Accurate rep-resentation of payables and the current portion oflong-term debt is crucial for determining a firm’s liquid-ity, and its ability to meet short-term obligations.

Long-term debt represents money borrowed for periodsof more than one year. Repayment terms should be stud-ied to see if equal payments are to be made over theperiod of the loan, or if some other form of repayment isrequired. For example, instead of annual payments, onelarge single payment (called a balloon payment) may berequired in the final year of the loan that may be difficultor impossible to meet.

Equity (also Stockholder’s Equity) has several compo-nents. It includes amounts that stockholders have actuallypaid in return for ownership of the firm, represented byshares. It also includes retained earnings, amounts rein-vested in the business from its income over prior years, aswell as retained losses, amounts lost by the company inpast years. The sum total of these pluses and minuses isreferred to as the firm’s net worth. At times these items areshown separately as a Statement of Stockholder’s Equity.

Statement of Cash Flow – Income statements do notreflect all cash that is physically received or paid out by anenterprise, particularly if they are prepared on an accrualbasis. Balance sheets give a static picture of an enterpriseat the end of a period of time, with no indication of themovement of funds during that period. Neither indicatessuch important events as cash being borrowed or repaid,decreases in cash as fixed assets were purchased, orincreases when fixed assets were sold.

The statement of cash flows, or “funds statement”,evolved in the late nineteenth century to fill this void infinancial reporting. A forerunner of present-day cashflow statements was published by the Baltimore & OhioRailroad in 1834. The first actual funds flow statementsappears to have surfaced in a text on accounts in about1908.

The present format used in the statement of cash flows islargely attributed to the early 1920’s to show how work-ing capital changed. After World War II, the total flow offunds was reflected. Cash flow accounting developed inthe 1960’s though it was, in effect, the basis for mostaccounting systems prior to the 1800’s.

Statements of cash flows isolate the inflow and outflow ofactual cash. Two methods are used to prepare such astatement, the direct method and the indirect method. Inthe direct method (shown here), each item in the incomestatement is adjusted from the accrual basis to the cashbasis to reflect actual cash flows. Further, the statement is

Cash flows from operating activities:Cash receipts from salesCash payment for purchasesNet cash provided by operating activities

Cash flows from investing activities:Investment in plant & equipment

Cash flows from financing activities:Issue of common stockIssuance of long term debt Principal payment of long term debtNet cash provided by financing activitiesNet increase (decrease) in cash

Cash at beginning of yearCash at end of year

$ 2,0001,764

236

(3,000)

3,0001,000

100 3,9001,136( 0)

$ 1,136

(Direct Method)

Statement of Cash Flow

29

divided into three logical groupings: Cash flow fromoperating activities, cash flow from investing activities,and cash flow from financing activities.

Cash flows from operating activities, or cash receivedfrom normal operations, is income in the form of pay-ments, not only promises to pay, and cash paid out forservices rendered. Because they represent estimated,rather than actual amounts, provisions for bad debts anddepreciation shown on the Income Statement musttherefore be added back to the net income stream.

Cash flows from investment activities reflect amountsactually paid or received for plant and equipment, invest-ments, or other such transactions not shown on theincome statement.

Cash flows from financing activities consist of cashinflows and outflows. Inflowing moneys may be fromissuing stock or receiving loans. Outflowing amountsinclude loan repayments.

Financial Indicators – Contrary to the reassuringimpression left by the term the “bottom line,” no singledefining number sums up a business’ overall financial con-dition. Such questions are addressed by a variety offinancial indicators. These indicators – usually numbers –help focus on the most important aspects of financialstrengths or weaknesses. They serve more as spotlightsthan floodlights. Remember, these are financial indicatorsmeasuring financial performance. Other indicators mustbe designed for customer satisfaction or product quality.

While individual methods of determining credit risk areingrained in the earliest of commercial exchanges, a for-mal discipline of financial statement analysis took rootonly in the late 1800’s. Among the first techniques:Liquidity analysis, used by bankers to approve credits,and operating expense ratios used for railroad analysis.As far as liquidity was concerned, American bankers gen-erally wanted assurance that the borrowing institutionshad a 2:1 current ratio.

Some of the most common financial indicators include:Ratios, trend lines, comparisons, relations to the whole,cash flow, and share price.

Ratios describe relationships between individual items orgroups of items. They can be expressed as a fraction (½),a percentage (150%), or a rate (2:1). Though by nomeans infallible and sometimes difficult to accuratelyassess, ratios can reduce complex sets of numbers to read-ily identifiable amounts and are as such useful tools foranalysis.

Ratios have their origins in the 1800’s. Bankers whowanted to be sure borrowers could repay their loans usedthe current ratio as a measure. Such indicators are regu-larly compiled by credit and regulatory agencies,investment firms, banks, and other entities with financialworth. Ratios typically focus on a firm’s solvency and liq-uidity, its profitability, and its efficiency and productivity.

Use these measures with care. A single indicator derivedfrom one year’s results and shown in isolation has littlemeaning. Compare firms of equal size in the same lineof business, and use comparable figures for prior periods.Also, be sure to study the cause and effect of any changes;do not rely on numbers to tell the complete story.

Many other measures are used by analysts to help evalu-ate a firm’s financial condition. Some focus on one periodof time, others compare values over periods of time.Much of the information used in these measures is notmade public, not for nefarious reasons, but simply tokeep it from competitors. A successful financial analysthas, therefore, to be both trustworthy and discreet togather such data.

III. Analysis of Value

As a first step in learning how to analyze financial value,select a corporation whose stock is publicly traded. Apublicly-traded company is obligated to publish AnnualReports containing the general information you willneed.

1. Your Firm’s History – A complete report beginswith information on the past. Financial statements arenot in themselves “history”; regard them as a means, notan end.

30

Long-term debt $ 900 = .28

Equity $ 3 ,196

Long-term debt $ 1,496 - Current liabilities $ 300

Working Capital $ 1,300

Net income $ 96 = .32

Total (average) shares 300

Market price per share $ 10= 1.04

Earnings per share $ 9.60

Current ratio measures the ability to meet obligations due the coming year with cash on hand,receivables, and other liquid assets. The higher the ratio, the more favorable the position.

Debt to Equity ratio measures a firm’s ability to meet its payments of long-term debt with fundsaccumulated in its net worth. The ratio considered satisfactory depends upon the industry.

Current assets $ 1,496 = 4.98 : 1

Current liabilities $ 300

Working capital shows the margin of financial safety a firm has to operate during the year. Therecan be too much of a good thing: more than the amount needed for current expenses should beinvested in more productive assets.

Solvency & Liquidity: Can the firm pay all debts owed? Can its resources be readily converted to cash?

Inventory turnover indicates the number of times a firm’s inventory has been sold (turnsover). A high turnover generally shows good salesmanship.

Total sales $ 2,000 = .741

Fixed assets $ 2,700

Total plant turnover indicates how efficiently the firm is using its assets to generate sales.Generally, the higher, the better.

Cost of sales $ 800 = .4

Total inventory $ 200

Efficiency & Productivity: Are the products produced with minimum effort and expense?

Accounts receivable turnover measures how efficiently accounts receivable are turned to cash.A high ratio indicates efficiency, though too high may mean insufficient credit is beingextended.

Total sales $ 2,000 = 12.5

Ave. accounts receivable $ 160

Efficiency ratio measures the efficiency of management in running the business. Generally,the lower, the better.

Earnings per share shows how much each outstanding share earned. Generally, the higher, thebetter.

Price :earnings ratio gauges the degree to which investors value the firm’s ability to earn profits.Generally, the higher the ratio, the greater the degree of confidence.

Rate of return on assets shows how well the firm’s assets are used to produce net income.Generally, the higher, the better.

Net profit margin shows the relation of net income to sales. Generally, the higher, the better. Net income $ 96

= .048Net sales $ 2,000

Net income $ 96= .022

Total (ave.) assets $ 4,296

Profitability: Is the firm earning reasonable profits?

Expenses $ 2,000 = .876

Gross Profit $ 2,700

Financia l Indicators & Ratios

31

History tells a story and should include a thoughtfulanalysis of reported events. Like an historian, you willwant to examine an enterprise without bias over time,look for cause and effect, and see the firm in the contextof the world around it.

To organize your material, draft a timeline of key eventsin your corporation’s history. Material about your firm’spast will be found in Annual Reports, corporatebrochures, past news articles, trade directories, and filmlibraries. If possible, interview employees and retirees.

Do not rely solely on management’s reports. Like riding abicycle, owners and managers have to balance, pedal, steer,duck overhead obstructions, and look ahead for a path, allthe while thinking of their objective, assuring that benefitsoutweigh costs. There is little time to look behind, exceptto glance at what may be catching up with them.

2. Direction and Management – As a vehicle forenterprise, corporations have a history extending back tothe Roman Republic, some 500 years before the birth ofChrist. Corporations are unique in that they are imper-sonal entities, distinct from their owners. Thus,individuals are not held personally responsible for actsundertaken in the name of the corporation, and if a busi-ness fails, the owners’ personal property cannot be seizedby creditors.

The term “management” is unique to the English lan-guage. According to the Association of ConsultingManagement Engineers, managers should: (1) gatherinformation, (2) synthesize information, (3) plan, (4)decide, (5) organize, (6) communicate, (7) motivate, (8)direct, guide, or counsel, (9) measure, evaluate, and con-trol, (10) develop personnel, and (11) promote innovation.

Before the mid-1800’s the function of management wasgenerally performed solely by the firm’s owner. Led bythe railroad industry, concepts of management and offinancial controls began taking on their modern mean-ings in the decade before the Civil War (1861-65).

In a corporation whose shares are owned and traded bymembers of the public, overall direction is the responsi-bility of the Board of Directors, appointed according to

legally established rules. Day-to-day management is car-ried out by officers appointed by the Board ofDirectors.The Directors’ role is to set policy; manage-ment to implement policy. Questions to Ask:

· Who serves on the Board of Directors and on thetop management team? Are their backgroundssuited for their task? Have they been successful inpast activities?

· How are Board members and managementrewarded? Consider salaries, honoraria, options topurchase company stock, and other benefits. Isthere evidence that their contributions to the cor-poration offset these costs?

· Are there any controversies surrounding manage-ment or Board members? Has any informationsurfaced on incompetency, unsavory involvements,or conflicts of interest?

· Do any conflicts exist between the Board and man-agement? Is the Board intrusive, acting as a secondmanagement team?

· Does the corporation seem to be following a logi-cal business plan? Are there any acquisitions,mergers, or divestitures scheduled? To what effect?

3. Creating and Improving the Product –Research is creating a product from scratch, or improv-ing an existing product, includes a search for new ideas.Development are these concepts that are transformed intomarketable products. R&D expenditures cover salaries,material, and general and administrative expenses.

Operations such as manufacture and production involvethe actual fabrication or assembly of a product. Here theinventories of raw material or components are made orassembled into their final, finished state.

In a complex operation where thousands of parts areinvolved, a special department will purchase materialused in R&D or manufacturing. In midsize firms, anadministrative department may be responsible, while insmall firms, whoever needs the part may be the buyer.

32

Questions to Ask:

· How would you describe the product(s) or serv-ice(s) offered by the firm? What is their use? Howdo they influence the lives of the firm’s clients – dothey make their lives easier, less expensive, save time,or simply make life more enjoyable?

· Is the firm successful in converting new ideas toproducts or services that its customer’s value?

· Are there links to campuses to stimulate research ifthis is pertinent?

· What processes and technologies are used to pro-duce the product? Why? Compare them with thoseof competing firms.

· Are the company’s finished product(s) or services infe-rior, about the same, or superior to the competition?

· What raw materials are used to manufacture theproduct? Are they physical or intellectual? Wheredo they come from? How does the firm’s locationaffect its use of raw materials? Are raw material costscomparable to competitors’ raw material costs?

· Do inventories of raw material appear reasonable,too low, or excessive? If a “just in time” inventorysystem is maintained (meaning minimum invento-ries are kept on hand), have plans been made for apossible break in supplies? How is inventory valued?

· Does the firm appear to have too many fixed assetsin relation to sales?

4. Moving the Product – Once the product is pro-duced, it must be moved – psychologically as well asphysically. Public Affairs creates the external ambiance inorder that the firm’s product may be considered in a pos-itive light. It is also involved convincing legislative bodiesof the need for beneficial laws – that is, lobbying.Marketing entails advertising and promotion of a prod-uct, and the actual selling process. Until the mid 1880’s,a firm’s financial statements made little distinctionbetween sales and management. Questions to Ask:

· What public relations ventures does the firm under-take? To what effect?

· How is the market ascertained? What methods areused to identify customers and predict their tastes?Have these methods changed over time? Does thefirm appear to be satisfying the market?

· What are the effects of competition on the firm’ssales? Has the firm dominated the market, or createa niche market?

· How did the firm’s advertising evolve over time?How do the ads relate to the market? What adver-tisements are used, and to whom do they appeal?

· How are sales linked to advertising? To new prod-uct development?

· Do sales progress over time, and at a satisfactoryrate? If not, why not?

· How does the product or service move to the market?

· Are distributors selling their product, or are theysimply increasing their own inventories?

5. Financing Operations – Finance involves plan-ning and accounting for all financial transactions,assuring that sufficient funding is available at all times,and controlling all income and expenditures. Peopleengaged in finance are responsible for the preparation offinancial statements and budgets, insurance, custody offunds, purchase and rental of property, credit and collec-tions, as well as auditing the business. Questions to Ask:

· In what economic climate does the firm operate? Isthe inflation rate low? If not, what adjustmentsmust be made to reflect inflation? If the firm bor-rows, are reasonable interest rates charged?

· How was the original capital raised to finance thebusiness? What return on capital invested has beenproduced over time? Is the firm’s return on equitysufficient to attract investment and reassure banks?

33

· How does the company measure its costs? Does thecost-accounting system appear to accurately reflectthe activities of the firm?

· Are accounts receivable collected promptly? Haveadequate reserves been created for doubtfulaccounts?

· How do the company’s earlier projections andbudgets match up with actual results?

· What are the competitors’ comparable ratios oncapital invested, and other key financial ratios?

· If the firm's shares are publicly traded, how havethey performed over time? How have competitors’stock price performed?

· How does the company maximize its profits?

· What is the total compensation given – salaries andbenefits such as health and life insurance, educationbenefits, time-off – and how is it given to differentgroups (management, salaried workers, hourly-wage earners)?

· How does the firm interact with the community atlarge? What is the effect on the community of thefirm’s payroll, taxes paid, and use of resources?

· How is debt managed? Can the firm repay its debtwithout problems? Are interest rates reasonable?

· Does the firm have assets (cash, equipment, land,buildings, patents, know-how, idle hands, etc.) thatare not being put to productive use?

· Does the corporation have an obligation to fundpensions? How is this done? Is there a sound actu-arial investment plan?

· Are inventories of material used in production keptto a prudent minimum?

6. Information Management – Information man-agement involves conversion of data to information, and

of information to knowledge. Information managerswork with computer hardware and software, systemsanalysis, and computer languages and programming.They must assure the adequate collection, storage, pro-cessing, and output of intelligence in electronic form.Questions to Ask:

· What information systems are used by the firm? Areany additional systems needed? How are data andinformation transformed to decisions?

· What hardware and software are used? To whateffect ?

· How are the firm’s archives and other historicalresources used to create a “working memory”?

· How is information collected, processed, and pro-vided? Are there problems?

· Does the Board/management receive sufficientinformation?

· Does the public get the information it needs?

· How is this information converted to knowledge?

7. Various Support Services – Support servicesinclude administration, human resource development(when administration has other duties to perform), legal,and other specialized functions. Questions to Ask:

· What is the affect of government regulation on thefirm? Can you find information on the cost of com-plying with these regulations, and are theregulations achieving their intended benefits at anacceptable cost?

6. Information on managers

7. Financial statements

8. Report on financial condition

9. Auditor’s notes

10. Other details on business

The Annual Report

1. Financial highlights

2. Message to share holders

3. Summary of activities

4. Details on product lines

5. Information on directors

Contents

34

· Is a trained, qualified work force available for hiringat a competitive wage? How is the labor climate –does the firm face any labor problems?

· What sort of employees are needed by the firm?What education and skills are required? Does thefirm have to provide training to assure basic skills?What training does the firm offer to assure contin-uing development of personnel?

· What patents related to the product does the firmown ?

· How is personnel management carried out? Doesthe firm have significant morale problems? Isemployee turnover low? Has the firm had anyrecent, or pending, labor strikes? Is there a record ofunresolved labor issues?

· What measures are taken to improve and monitoremployees’ knowledge, attitudes, productivity, loy-alty, willingness to excel?

· Are administrative tasks handled in an efficient way?

· Are there any law suits against the business pending?

IV. Pitfalls

Many pitfalls may be imbedded in financial statementsdistorting their interpretation. In theory, distortions suchas those discussed below should be flagged by the inde-pendent auditors responsible for reviewing the records ofpublicly traded companies. Nevertheless, be aware ofthem. Train yourself to meet every statement with yourown refrain: Prove it!

Outright fraudulent information. Methods of detectingfraudulent information is beyond the scope of this guide.Such activities include claiming revenues from fictitioussales, concealing expenses by accounting ruses, falsifyingdocuments, and overvaluing assets. Auditors are sup-posed to prevent bogus accounting entries, but may beunable to for reasons of incompetence or venality.

Illicit intra-company transactions. Selling to one’s ownsubsidiaries at fictitious prices, an illegitimate techniqueused to reduce tax payments, distorts actual results andmay result in future penalties.

Incomplete or misleading information. Many prob-lems in analysis stem from information that is eitherincomplete or misleading. For example, sales may begrouped in one item, “total sales”. Does this represent thesale of one or several products? And what are the prod-ucts? Uncovering such information may reveal hiddentrends.

Auditors’ conflict of interest. Beware auditors who havea vested interest in providing a clean opinion of the finan-cial statements.

Unstated changes in accounting procedure. Incomemay be recorded on a cash basis for many years and thenswitched to accrual basis. As a result, sales may be over-stated, as cash owed for sales tends to be greater thanactual cash amounts received. Such changes should beclearly flagged in financial statement comments.

Questionable procedures for bad debts. Delaying write-offs of bad debts until the next year can make theimmediate results look better than they really are. Theycan also make accounts receivable look unrealistically high.

Inflating sales figures. Beware of policies that allowgoods recorded as sales to be returned for credit. Try toquantify this amount.

Bundling problems under a bland category. Unless theamounts involved are insignificant, beware of items titled“other,” as in “other expenses.” Such categories can dis-guise any number of problems that may be reoccurring.

$3mm$2mm$1mm$0mm

2008 2009

“Net Profit doubled last year” “but was down from 2007 levels”

$3mm$2mm$1mm$0mm

2007 2008 2009

What was shown: What should have been shown:

35

False analogies and failure to site past trends.Management draws inappropriate analogies to pastevents in projecting future prospects, or presents opti-mistic sales forecasts when similar past forecasts failed.

Exposure to risky markets or suppliers. When a sig-nificant portion of sales or supplies involves economicallyor politically unstable elements, beware.

Failure to disclose bases for financial projections.Management should clearly state the premises on whichfinancial projections are based.

Failure to disclose bad news. Management should dis-close information on events that will have a damagingaffect on operations.

Aggregating opposing trends. As shown in the follow-ing example, total sales are only slightly improved whenseen in their aggregate. However, when analyzed, steelhas declined, while wood has increased markedly. Bewareof over-simplified data

Comparing unlike items. Be sure items being comparedare, in fact, comparable.

Inaccurate valuation. A false value may have been placedon a business’ assets, making the new worth appear

higher than it really is. Take, for example, assets pur-chased in a foreign currency, say Pounds Sterling. Theseamounts may be converted to U.S. dollars at inappro-priate rates, making the assets appear under- (or over-)valued. An even more common problem occurs whenassets, purchased years ago in a highly inflationary period,are not revalued to represent their true current worth.

Failure to confront technological change. As technol-ogy changes, so will the value of the business’s assets. Alarge computer mainframe, costing hundreds of thou-sands of dollars, may have little to no worth with theintroduction of a comparable personal computer appli-cation. Old technology may cause a business to spendmore money on manufacturing than its competitors.

Overly optimistic management reports. “We’re justabout to turn the corner.” “We’ll end the common coldwith our pill next year.” Do not believe everything youread.

Misusing statistics. As they say, there are lies, and thenthere are statistics. Examine what is being shown on graphsbelow with special care. It is an example of an omission asthe source of distortion. Be on guard for what has beenleft out as well as what is misrepresented. Except for yourability to probe for an accurate representation, there are nosimple rules to guard against statistical distortion.

Can these items allbe readily convertedto cash?

Will these clients paypromptly?

Sufficient?Fairly valued?

How much in land,how much in equipment?Are they fairly valued?

What do they consist of?Overvalued?

Does this item includeall amounts owed bythe firm?

On what terms wasthe money lent? Canthe interest rate beincreased?

Are the underlyingassets worth theseamounts?

More Quest ions to Raise

Accurately stated?

Current assetsCash & equivalentsAccounts receivableInventories

Total current assetsFixed assets

Gross fixed assetsLess: accumulated depreciation

Net fixed assetsIntangible assets

Total assets

$ 1,136160200

1,496

3,000300

2,700100

$ 4,296

Current liabilitiesAccounts payableLong-term debt due in 1 year

Total current liabilitiesLong-term debt

EquityCapital stockRetained earnings

Total equityTotal liabilities & equity

$ 200100300800

3,000196

3,196$ 4,296

Liabi l it ies & Equit yA ssets

36

37

Res

earc

h &

Dev

elop

men

tIn

vest

igat

e w

ays t

ode

velo

p an

d pr

oduc

epr

oduc

ts a

nd se

rvic

esap

plyi

ng th

e sc

ient

ific

met

hod,

Inclu

des:

App

lied

and

Bas

ic,

Stra

tegy

and

Des

ign,

Prod

uct

Eng

inee

ring

an

d Te

stin

g.

Ext

erna

l Rel

atio

nsPr

esen

t the

org

aniz

atio

n,its

pro

duct

s and

serv

ices

to th

e pu

blic

favo

rabl

yto

secu

re p

ositi

ve im

age

and

good

will

. Inc

lude

s: Pu

blic

Aff

airs

, Pub

licR

elat

ions

, Cor

pora

teC

omm

unic

atio

ns,

Inve

stor

Rel

atio

ns,

Gov

ernm

ent

Aff

airs

,C

omm

unit

y A

ffai

rs.

Pro

duct

ion

The

man

ufac

ture

or

asse

mbl

y of

goo

ds a

ndth

e pr

epar

atio

n of

serv

-ic

es th

roug

h al

l sta

ges

requ

ired

to b

ring

pro

d-uc

t to

mar

ket.

Inclu

des:

Pla

nnin

g, P

urch

asin

g,E

ngin

eeri

ng, M

anuf

ac-

turi

ng &

Ass

embl

y, a

nd

Qua

lity

Con

trol

.

Fina

nce

& C

ontr

ol

Plan

and

acc

ount

for

finan

cial

tran

sact

ions

,as

suri

ng s

uffi

cien

cyan

dco

ntro

l of f

unds

.In

clude

s:Fi

nanc

ial a

ndT

ax P

lann

ing,

Fun

dR

aisi

ng &

Cus

tody

,Fi

nanc

ial A

naly

sis

and

Rel

atio

ns, A

sset

Dis

-po

sal.

Acc

ount

ing,

Bud

geti

ng,

Inte

rnal

Aud

itin

g, S

yste

ms

&Pr

oced

ures

.

Mar

keti

ngG

uide

and

enc

oura

ge th

eflo

w o

f pro

duct

s or

serv

-ic

es to

the

outs

ide

wor

ld.

Inclu

des:

Mar

ket

Res

earc

h, A

dver

-ti

sing

, Sal

es.

Info

rmat

ion

Res

ourc

e M

anag

emen

tA

naly

se, s

elec

t, im

ple-

men

t, an

d m

aint

ain

info

rmat

ion

syst

ems t

oco

llect

, sto

re, p

roce

ss, a

ndou

tput

dat

a. In

clude

s:So

ftw

are,

Har

dwar

e,N

ew M

edia

, & I

nfor

ma-

tion

Sys

tem

sD

evel

opm

ent.

Arc

hiva

lSe

rvic

es, I

nfor

mat

ion

Tech

nolo

gy T

rain

ing

& S

uppo

rt.

Secr

etar

ial &

Leg

alPr

ovid

e ad

vice

and

expe

rtise

to a

ssur

eac

tions

and

doc

umen

tsco

mpl

y w

ith fe

dera

l,st

ate,

and

loca

l law

s and

regu

latio

ns.

Oth

erIn

clude

s:H

uman

Res

ourc

e A

dmin

istr

atio

nan

d ot

her

activ

ities

as

requ

ired

to a

dmin

ister

,op

erat

e, a

nd p

rom

ote

the

entit

y’s m

issio

n.

Su

ppor

t

Res

earc

h, D

evel

opm

ent,

& P

rodu

ctio

nA

rchi

val s

ervi

ces

Cor

pora

te c

eleb

ratio

n an

d an

nive

rsar

y se

rvic

esC

ultu

ral r

esou

rce

man

agem

ent

Gen

ealo

gy a

nd fa

mily

hist

ory

serv

ices

Hist

oric

al e

xhib

it an

d in

terp

reta

tion

serv

ices

Hist

oric

bui

ldin

g m

ater

ials

rese

arch

and

serv

ices

Hist

oric

pre

serv

atio

n &

edu

catio

n se

rvic

esH

istor

ical

film

and

med

ia se

rvic

esH

istor

ical

rese

arch

, wri

ting,

edi

ting,

and

pub

lishi

ngH

istor

ical

tour

ism a

nd m

arke

ting

Info

rmat

ion

reso

urce

and

dat

abas

e se

rvic

esLi

brar

y se

rvic

esLi

ving

hist

ory

stag

ing

serv

ices

Mili

tary

gen

ealo

gy, i

nsig

nia

and

unifo

rm se

rvic

esM

useu

m se

rvic

esO

ral h

istor

y se

rvic

es

Ext

erna

l Rel

atio

nsC

omm

unic

atio

ns W

rite

rC

omm

unity

Affa

irs R

ep.

Gvt

. Affa

irs S

peci

alist

Legi

slativ

e A

ssist

ant

Lobb

yist

Med

ia A

ffair

s Spe

cial

istPu

blic

Pol

icy

Ana

lyst

Publ

ic R

elat

ions

Spe

cial

istR

esea

rch

Ass

ocia

teSu

rvey

Spe

cial

ist

Info

rmat

ion

Res

ourc

eM

anag

emen

tA

rchi

vist

Rec

ords

Con

serv

atio

nist

Rec

ords

Man

ager

Doc

umen

t Spe

cial

ist

Dat

a B

ase

Adm

inis

trat

orIn

form

atio

n R

esea

rche

r

Opp

ortu

niti

es f

orSt

uden

ts o

f H

isto

ry

(Giv

en r

equi

site

educ

atio

n,tr

aini

ng,

abili

ty, a

nd a

ttit

ude.

)

Mar

keti

ngM

arke

t Res

earc

her

Adv

erti

sing

res

earc

her

Sale

s re

sear

cher

Surv

ey A

naly

st

Fina

nce

& C

ontr

olFi

nanc

ial A

naly

stSy

stem

s A

naly

st

Leg

alA

ttor

ney

Para

lega

lPr

eser

vati

on A

ttor

ney

Ap

pen

dix

B –

Typ

ical

Ind

ust

ry O

rgan

izati

on

Ch

art

Man

agem

ent

Edu

cati

on re

quir

emen

ts m

ay in

clud

e: A

dvan

ced

degr

ees (

MA

, PhD

) – h

isto

ry, h

is-

tori

c pr

eser

vati

on, a

rchi

val s

tudi

es, m

useu

m st

udie

s, p

olic

y st

udie

s, li

brar

y st

udie

s,fi

nanc

e, m

arke

ting

, in

form

atio

n sy

stem

s. M

BA

. Pr

ofes

sion

al d

egre

es r

equi

red

topr

acti

ce, f

or e

xam

ple,

acc

ount

ing,

law

, and

med

icin

e.

Typ

ical

Act

ivit

y A

reas

Eac

h in

dust

ry

(bus

ines

s se

rvic

es, c

om-

mun

icat

ions

,co

mpu

ter

soft

war

ede

sign

, fin

ance

, pu

b-lis

hing

, etc

.)co

nfig

ures

its

acti

viti

es

in u

niqu

e w

ays.

Res

earc

h yo

ur t

arge

tco

mpa

ny fo

r ac

cura

teor

gani

zati

on c

hart

.

Adv

isor

y C

ounc

il on

His

tori

c P

rese

rvat

ion

Cen

tral

Int

ellig

ence

Age

ncy

Inst

itut

e of

Mus

eum

and

Lib

rary

Ser

vice

s N

atio

nal A

eron

auti

cs &

Spa

ce A

dmin

istr

atio

n–

Not

e: H

is-to

ry O

ffice

s.

Boa

rds,

Com

mis

sion

s an

d C

omm

itte

esC

omm

issi

on o

f Fin

e A

rts

Bro

adca

stin

g B

oard

of G

over

nors

– N

ote:

Voi

ce o

f Am

er-

ica,

Rad

io F

ree

Euro

pe, R

adio

Fre

e A

sia, e

tc.

Fede

ral A

dvis

ory

Com

mit

tee

Nat

iona

l Par

ks F

ound

atio

n

Nat

iona

l Arc

hive

s an

d R

ecor

ds A

dmin

istr

atio

nN

atio

nal E

ndow

men

t for

the

Art

sN

atio

nal E

ndow

men

t for

the

Hum

aniti

esSo

cial

Sec

urity

Adm

inis

trat

ion

– H

istor

ian'

s Offi

ce.

Qu

asi-

Off

icia

l A

gen

cies

Smith

soni

an In

stitu

tion

Uni

ted

Stat

es In

stitu

te o

f Pea

ce.

Lega

l Ser

vice

s C

orpo

ratio

nSt

ate

Just

ice

Inst

itute

Agr

icul

ture

– N

ote:

Nat

iona

l Agr

icul

tura

l Lib

rary

.C

omm

erce

D

efen

se–

Not

e: U

.S. A

ir F

orce

, Air

For

ce H

istor

ical

Rese

arch

Age

ncy;

U.S

. Arm

y, A

rmy

Cen

ter o

f Mili

tary

Hist

ory;

Def

ense

Thr

eat R

educ

tion

Age

ncy;

U.S

. Mar

ine

Cor

ps H

istor

y C

ente

r; U

.S. N

avy,

Nav

y H

istor

ical

Cen

ter.

Educ

atio

n–

Not

e: Te

achi

ng A

mer

ican

Hist

ory G

rant

pro

gram

.En

ergy

– N

ote:

Offi

ce o

f Hist

ory

and

Her

itage

Res

ourc

es;

Mus

eum

s, H

istor

ic B

uild

ings

, and

Pub

lic T

ours

.H

ealth

and

Hum

an S

ervi

ces

Hom

elan

d Se

curi

ty–

Not

e: C

oast

Gua

rd H

istor

ian’s

Offi

ce.

Hou

sing

and

Urb

an D

evel

opm

ent

Inte

rior

– N

ote:

Nat

iona

l Par

k Se

rvic

e.Ju

stic

eLa

bor

Stat

e–

Not

e: O

ffice

of t

he H

istor

ian.

Trea

sury

– N

ote:

Offi

ce o

f the

Cur

ator

.Tr

ansp

orta

tion

–N

ote:

Offi

ce o

f the

Hist

oria

n.Ve

tera

ns A

ffai

rs

Exe

cuti

ve D

epar

tmen

ts

Inde

pen

den

t A

gen

cies

& G

over

nm

ent

Cor

pora

tion

s

Th

e P

resi

den

t an

d V

ice

Pre

side

nt

Exe

cuti

ve O

ffic

e of

the

Pre

side

nt –

Not

e: N

atio

nal S

ecur

ity

Cou

ncil,

Offi

ce o

f Pol

icy

Dev

elop

men

t.

Ap

pen

dix

C –

Fed

era

l G

overn

men

t O

rgan

izat

ion

Ch

art

(par

tial

)

En

titi

es

of

Sp

eci

al I

nte

rest

to

His

tory

Gra

du

ates

Also

con

sider

supp

ort p

ositi

ons f

orhi

story

-rel

ated

insti

tutio

ns in

field

s suc

h as

fina

nce,

pub

licaf

fair

s, m

arke

ting,

hum

anre

sour

ce m

anag

emen

t, in

form

a-tio

n m

anag

emen

t, or

the

law

.

Supr

eme

Cou

rt o

f th

e U

nite

d St

ates

–N

ote:

Supr

eme C

ourt

Cur

ator

’s O

ffice

; Sup

rem

e Cou

rt H

istor

i-ca

l Soc

iety.

Uni

ted

Stat

es C

ourt

s of

App

eals

Uni

ted

Stat

es D

istr

ict

Cou

rts

Ter

rito

rial

Cou

rts

Uni

ted

Stat

es C

ourt

of

Inte

rnat

iona

l Tr

ade

Uni

ted

Stat

es C

ourt

of

Fede

ral C

laim

sU

nite

d St

ates

Cou

rt o

f App

eals

for

the

Arm

ed F

orce

sU

nite

d St

ates

Tax

Cou

rtU

nite

d St

ates

Cou

rt o

f App

eals

for V

eter

ans

Cla

ims

Adm

inis

trat

ive

Off

ice

of t

he U

nite

d St

ates

Cou

rts

Fede

ral J

udic

ial C

ente

r –

Not

e: T

he F

eder

al Ju

dici

alH

istor

y O

ffice

; The

Edu

catio

n D

ivisi

on; F

eder

al Ju

di-

cial

Cen

ter F

ound

atio

n.U

nite

d St

ates

Sen

tenc

ing

Com

mis

sion

Adv

ance

d de

gree

s ar

e ge

nera

llyre

quir

ed f

or h

isto

ry-r

elat

edgo

vern

men

t ca

reer

s.

Th

e C

on

gres

sU

.S. S

enat

e –

The

Sen

ate

Hist

oric

al O

ffice

U.S

. Hou

se o

f Rep

rese

ntat

ives

–O

ffice

of t

he H

isto-

rian

, U.S

. Hou

se o

f Rep

rese

ntat

ives

.

Age

nci

es t

hat

Su

ppor

t C

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39

Business ResourcesTo produce or distribute goods and services, a variety of resourcesare required. Five categories are described below, each pointing toa distinctive cluster of job specialties. Be aware that none of theseresources are employed singly or in isolation; all are called uponto varying degrees in every business position. An understandingof the nature of business positions not only helps assess careerchoices, but adds a valuable dimension to the study of history.

Human Resources are, of course, the people who staff businessat all levels. Dealing effectively with people is a central require-ment in business; institutional history provides evidence ofbusiness organizations which have succeeded, and those whichhave failed. Motivation, behavior, leadership, and related quali-ties, mirrored by business history, are important in understandingsocial and economic development.

Physical Resources involve buildings, land, and equipment, aswell as raw material and finished products. The history of sci-ence and technology reflects the contribution of physicalresources to society’s material development. Business structuresand artifacts can also serve the more specialized interests of his-toric preservation, bringing practical benefits to their owners, andserving as springboards for community renewal.

Financial Resources are represented by funds and other forms offinancial obligation. Generated internally from operations, raisedexternally as capital or contracted externally as debt, the man-agement of a business’ financial resources furnish case histories onwhich to base an investigation of diverse issues such as the cre-ation of wealth, the effects of taxation, and the role of nationalinterests in international trade.

Information Resources consist of recorded data used to conductbusiness. Information may be in the form of text, numbers, sym-bols, images, and sounds; it may be acquired, stored,transformed, and transmitted by a variety of media and tech-nologies. Information management techniques support the studyof history as well as the management of an enterprise. Bindingother categories of resources together, information should bestudied in multi-disciplinary context.

Intangible Resources are customarily made up of assets such ascopyrights, patents, trademarks, and good will. The concept isbroadened here to include legal, ethical, and moral concerns, aswell as matters dealing with attitudes, such as “corporate culture”.Business practice, no less than business history, is defective with-out reference to morality, personal, intellectual and propertyrights and knowledge of customs and traditions.

Related Academic StudiesTo supplement core history requirements, consider elective stud-ies which strengthen logical, critical, and analytic thinking.General knowledge of economics, and the ability to express one-self in written English, and orally, is no less essential. The morespecialized options outlined below should be chosen to reinforcehistorical studies; they also provide a means to test individualinterest connected to specific career goals.

Human Resources – Select subjects which focus on the humancondition revealing patterns of behavior and of motivation. Theymay be found in comparative literature courses, ideally taken intandem with a foreign language, and respective area studies.Other studies: Social sciences (anthropology, sociology, psychol-ogy), business administration, human resource development.

Physical Resources – Knowledge of the physical sciences are ofspecial significance for making rational decisions from compet-ing claims of scientists and engineers; knowledge of the scientificprocess itself is essential. Other courses: Life, or natural sciences,engineering. For more specialized interests: Historic preservation,urban and regional planning, architecture.

Financial Resources – The language of finance is accounting;accounting bridges business and finance, conveying commercialtransactions into their representation in terms of currency.Courses to study: Accounting, finance, financial analysis; businessadministration; mathematical sciences (calculus, number theory,probability, statistics, and basic business mathematics).

Information Resources – The historian is the quintessentialinformation manager. Archival and records management stud-ies represent one end of the spectrum; computer, informationand library sciences, another. English, communications, andcourses emphasizing quantitative and qualitative analysis are alsoimportant. Art, marketing, communications and political sci-ence can each, in its own way, contribute to knowledge ofconveying information.

Intangible Resources – Master the ethical dimensions of life ingeneral (not restricted to “business ethics”, or “computer ethics”).Study religion, then ethics, philosophy, and logic. Consider lawin its historical context, with reference to the development oflegal concepts upon which capitalism is founded. Study thenature and development of professional ethics.

The greater your understanding of how business is organized, the more numerous connections can be made withacademic subjects. Begin here, then carry out your own research to fit your interests and career goals.

Appendix D – Bus iness and Academic Resources

40

41

General

Barzun, Jacques. The Culture We Deserve.Middletown, Conn.: Wesleyan University Press,1989.

“Business and History”special issue. The PublicHistorian, Summer, 1981.

Cantelon, Philip L.The History of MCI 1968-1988 :the Early Years. Dallas, Texas, Washington, D.C.,Heritage Press: MCI Communications Corp.,1993.

Chandler, Alfred D., Jr. The Visible Hand: TheManagerial Revolution in American Business.Cambridge, Mass.: The Belknap Press of HarvardUniversity Press, 1977.

———. and James W. Cortada. A NationTransformed by Information: How Information HasShaped the United States from Colonial Times to thePresent.eds. New York: Oxford University Press,2003.

Chatfield, Michael. A History of Accounting Thought.Huntington, New York: Robert E. KriegerPublishing Company, 1977.

Chatfield, Michael, and Michael Vangermeersch,editors. The History of Accounting: An InternationalEncyclopedia. New York: Garland Publishing Inc,1996.

Association of Consultant Management Engineers,Association Planning Committee. Common Body ofKnowledge Required by Professional ManagementConsultants. New York: Association of ConsultantManagement Engineers, 1957.

Damer, T. Edward. Attacking Faulty Reasoning: APractical Guide to Fallacy-Free Arguments, 3rdedition, Belmont, Calif.: Wadsworth PublishingCompany, 1995.

Drucker, Peter F. Peter Drucker on the Profession ofManagement. Boston, Mass.: Harvard BusinessPress, 2003.

———. “The Information Executives Truly Need.”Harvard Business Review. January-February, 1995.

Educating Historians for Business: A Guide forDepartments of History. Bloomington, Ind.:Organization of American Historians, 1983.

Einhorn, Hillel J. and Robin M. Hogarth. “DecisionMaking: Going Forward in Reverse.” HarvardBusiness Review, January, 1987.

Emmet, E. R. Handbook of Logic. New York,Philosophical Library, Inc., 1966.

Ennis, Robert H. Critical Thinking. Upper SaddleRiver, N.J.: Prentice Hall, 1996.

Ferguson, Niall. The Ascent of Money. New York: ThePenguin Press, 2008.

Fischer, David Hackett. Historians’ Fallacies. NewYork: Harper & Row, 1970.

Fuld, Leonard M. The New Competitor Intelligence.New York: John Wiley & Sons, Inc., 1995.

Gagnon, Paul and The Bradley Commission onHistory in Schools, The Case for History in AmericanEducation. New York: Macmillan PublishingCompany, 1989.

Selected B ib l iography

42

Gottschalk, Louis. Understanding History: A Primer ofHistorical Method. New York: Knopf, 1950.

Hood, John M. The Heroic Enterprise: Business andthe Common Good. New York: The Free Press,1996.

Kantrow, Alan M. (ed.) “Why History Matters toManagers.” Harvard Business Review, January-February, 1986.

Kerr, K. Austin, Amos J. Loveday, and Mansel G.Blackford. Local Business: Exploring Their History.The Nearby History Series 5. Nashville, Tenn.:American Association for State and Local History,1990.

May, Ernest R, and Richard E. Neustadt. Thinking inTime: The Uses of History by Decision Makers. NewYork: Free Press, 1986.

Novak, Michael. Business as a Calling: Work and theExamined Life. New York: The Free Press, 1996.

Pusateri, C. Joseph. A History of American Business.Arlington Heights, Ill.: Harlan Davidson, Inc.,1984.

Rosenberg, Nathan, and L. E. Birdzell, Jr. How theWest Grew Rich: The Economic Transformation of theIndustrial World. New York: Basic Books, Inc.,1986.

Rowse, A. L. The Use of History. New York: GarlandPublishing, Inc., 1985.

Scruton, Roger. An Intelligent Person’s Guide toPhilosophy. New York: Allen Lane The PenguinPress, 1996.

Shaw, Gordon, Robert Brown, and Philip Bromiley.“Strategic Stories: How 3M Is Rewriting BusinessPlanning.” Harvard Business Review, May-June,1998.

Smith, Adam. The Wealth of Nations. [Original title:An Inquiry into the Nature and Causes of the Wealthof Nations. Published in 1776. Available in variousformats and editions including online.]

Smith, George David and Laurence E. Steadman.“Present Value of Corporate History.” HarvardBusiness Review, November-December, 1981.

Trask, David F. and Robert W. Pomeroy III, Editors.The Craft of Public History. Westport Conn.:Greenwood Press, 1983. [Bibliography.]

Veyne, Paul. Writing History, Middletown, Conn.:Wesleyan University Press, 1984.

Accounting & Finance

Friedlob, George Thomas, and Ralph E. Weldon.Keys to Reading an Annual Report. 2nd ed.Hauppauge, N.Y.: Barron’s Educational Series, Inc.,1995.

Lerner, Joel and James Cashin. Schaum's Outline ofPrinciples of Accounting I. 5th ed. New York:McGraw-Hill, 2009.

Mautz, R. K. and Hussein A. Sharaf. The Philosophyof Auditing. Menasha, Wis.: American AccountingAssociation, 1964.

Parker, R.H. “Misleading Accounts? Pitfalls forHistorians.” Business History, October, 1991.

Sahlman, William A. How to Write a Great BusinessPlan. Harvard Business Review, July, 1997.

Shim, Jae K., Joel G. Siegel, and Abraham J. Simon.The Vest-Pocket MBA. Englewood Cliffs, N.J.,Prentice-Hall, 1986.

——— and Joel G. Siegel. Handbook of FinancialAnalysis, Forecasting & Modeling. Englewood Cliffs,N.J.: Prentice-Hall, 1988.

43

Siegel, Joel G. , Jae K. Shim, and Nicky A. Dauber.The Vest-Pocket MBA. Englewood Cliffs, N.J.,Prentice-Hall, 1986.

Weil, Roman, Patricia C. O’Brien, Michael M.Maher, and Clyde P. Stickney. Accounting: TheLanguage of Business. 9th Ed. Sun Lakes, Ariz.:Thomas Horton and Daughters, 1994.

Wurman, Richard Saul, Alan Siegel, and KennethM. Morris. The Wall Street Journal Guide toUnderstanding Money & Markets. New York: AccessPress Ltd., 1990.

Project Planning & Control

Lewis, James P. Project Planning, Scheduling &Control. New York: McGraw-Hill, 2005.

Research & Language

Barzun, Jacques. The Modern Researcher. 4th ed. NewYork: Harcourt Brace Jovanovich, 1985.

Strunk, William, and E. B. White. The Elements ofStyle, 3rd ed. New York: Macmillan, 1979.

Quantification, Statistics, and Polling

Dollar, Charles M. and Richard J. Jensen. Historian’sGuide to Statistifcs. Huntington, N. Y.: R. E. KriegerPub. Co., 1974.

Huff, Darrell. How to Lie with Statistics. New York:W.. W. Norton & Compnay, Inc, 1993.

Paulos, John Allen, Innumeracy: MathematicalIlliteracy and its Consequences. New York: Hill &Wang, 1988.

Reference Manual on Scientific Evidence. 2nd ed.Washington, D.C.: Federal Judicial Center, 2000.

Schuman, Howard. Method and Meaning in Polls andSurveys. Cambridge, Mass.: Harvard UniversityPress, 2008.

Tufte, Edward. Data Analysis for Policy and Politics.Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1974.

Typography and Graphics

Bringhurst, Robert. The Elements of TypographicalStyle, 2nd ed. Point Roberts, Wash.: Hartley &Marks, 1997.

Dowding, Geoffery. Finer Points in the Spacing andArrangement of Type. Point Roberts, Wash.: Hartley& Marks, 1995.

Tschichold, Jan. The Form of the Book. Point Roberts,Wash., Hartley & Marks, 1991.

Tufte, Edward. Envisioning Information. Cheshire,Conn.: Graphics Press, 1990.

———. The Visual Display of QuantitativeInformation. 2nd ed. Cheshire, Conn.: GraphicsPress, 1983.

———. Visual Explanations: Images and Quantities,Evidence and Narrative. Cheshire, Conn.: GraphicsPress, 1997.

44

Academy of Accounting Historians

Objectives: “ encourage research, publication, teachingand personal interchanges in all phases of AccountingHistory and its interrelation with business and economichistory.”

Journal: Accounting Historians Journal

Business History Conference

Objectives: “encouraging all aspects of research, writing,and teaching of business history and the environmentin which business operates.”

Journal: Enterprise & Society

Cliometric Society

Objectives: “an academic organization of individualsinterested in using economic theory and statistical tech-niques to study economic history.”

Journal: Explorations in Economic History

Economic History Society

Objective: “support reseach and teaching in economicand social history, broadly defined.”

Journal: Economic History Review.

Economic History Association

Objectives: “encourage and promote teaching, research, andpublication on every phase of economic history, broadlydefined, and to encourage and assist in the preservation andadministration of the materials for research in economichistory.

Journal: The Journal of Economic History

Harvard Business School

Journal: Business History Review

International Association for Business and Society

Objectives: “a learned society devoted to research andteaching about the relationships between business,government and society.”

Journal: Business & Society

National Council on Public History

Objectives: “dedicated to making the past useful in thepresent and to encouraging collaboration betweenhistorians and their publics.”

Journal: The Public Historian

Business, Economic and Public History Associations & Journals

Colophon

The text of this guide was set in

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for section heads and captions.

• TEACH HISTORY • PRACTICE AS AN HISTORIAN • CONSULT AS AN HISTORIAN • PRESENT HISTORY

THROUGH THE MEDIA • MANAGE & INTERPRET HISTORICAL RESOURCES • PRESERVE & CONSERVE

HISTORICAL RESOURCES • PROVIDE SERVICES TO SUPPORT HISTORICAL ORGANIZATIONS • APPLY

HISTORIANS’ KNOWLEDGE & SKILLS IN YOUR PROFESSIONAL, PERSONAL, & CIVIC LIFE •