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The Arizona Rkpuhuc BUSINESS 1)2 TuimxY, august 2002 NATION WORLD Is this the best you can do? Well, answer mni'h in nnrthpnstei ranch in northeastern square-mile New Meanwhile, he re Dale Dauten King Features Syndicate ports, "I was looking at my boss out of the corner of my eye for some sign of support and ownership, but it never came. He simply sat nodding until he turned to me and said, 'This was a bad idea, and it should stop, as should any discussions T7. Today, we have both a One-Minute Moron and a Great Moment in Management, allowing us to compare and contrast ways of dealing with the slippery art of feedback. First, we have the story of Jeff Pink-ham, a manager who, at a previous employer, took on a department and discovered it was a fat guy's belt of an assignment: high pressure, low visibility. So, being a gifted boss, Pinkham decided to change the way the department viewed itself.

He started a newsletter that had, in his words, "a definite non-newsletter style, interlacing humor, interesting information about the functions of the group, and all the numerous accomplishments." He reports that the group "got jazzed pulling it together and seeing on paper what a difference they were making." Pinkham took the draft to his VP for approval to release the newsletter, whereupon the VP declared it "really fantastic" and even added an anonymous piece relating how his counterpart at a competitive firm had admitted his own staff's relative inefficiency. Four days later, Pinkham was called to a meeting with his VP and another, more senior VP. The senior guy demanded to know why the newsletter had been created and who was talking with competitors. Pinkham explained, "We have one of the best groups in the business. I thought we should get the word out." Then he ducked the question of who was talking to competitors, "We often talk to colleagues at conventions and professional society meetings." Mexico.

Just out of journalism school, Boyer was director of public relations. His new boss, Joe Davis, a man built like a professional wrestler, gave him his first assignment: Design and write a new brochure about the ranch. Boyer describes turning in his first effort: "I arrived in his rustic office one morning with my work in hand. Joe examined it and said, 'Skip, is this the best you can Rattled, Boyer said he would give it another try. The next day he went back and watched as his boss reviewed his work, then heard the same question: "Skip, is this the best you can do?" Again Boyer said he'd try to do better.

Boyer described the next day: "The third time, Joe look at my work and said, 'Well, is this the best you can I was ready and said, 'Yes, Joe, this is the very best I can he responded. 'I liked your first draft; I just wondered if you That's a Great Moment in Management. Boyer says of his old boss: "The most important lesson Joe taught was self-confidence. He believed in himself, and he believed in you. He also insisted that you believe in you." Most bosses think that the essence of management is checking up; the great ones know it's lifting up.

Dale Dauten's latest book is "The Gifted Boss." Write to Dauten in care of King Features Syndicate, 235 E. 45th New York, NY 10017 or visit his Web site at dauten.com. with This earns the VP a One-Minute Moron Award, not just for cowardice and duplicity, but for being so stupid as to let that meeting take place. This is the sort of guy who sets up mirrors so you can watch yourself getting stabbed in the back. I'm pleased to report that Pinkham has since changed jobs.

Not only has he gotten the knife removed, he now has a boss who recently told him, "I never have to worry about the projects you and your group handle; I just know they'll get accomplished." That's the sort of thing great bosses say, not because they all spend their lunch hours at the Hallmark Card Store, but because great bosses know how to attract great employees, and for them, they are just explaining the truth. Speaking of great bosses, we now come to our second story, this one from the charming Skip Boyer, who is now an executive with Best Western International, but who began his career by working at the national camping center of the Boy Scouts of America, a 214- ing," said Jesse Reyes, vice president at Venture Economics, which released the report jointly with the National Venture Capital Association. The report said venture capital firms raised $1.8 billion in the three months that ended June 30, up from the first quarter's $1.7 billion. But the fund-raising was more than offset by the $2.7 billion the firms gave back to investors during the quarter. Dow Jones News Ward's creditors win right to sue GE unit TRENTON, N.J.

Montgomery Ward LLC's unsecured creditors have won a bankruptcy judge's approval of a liquidation plan for the defunct retailer and the right to sue its owner, GE Capital for at least $500 million. U.S. Bankruptcy Judge Raymond Lyons approved the plan last week, which hinges on fraud claims by creditors against General Electric GE Capital unit. Ward's suppliers say GE Capital duped them into extending hundreds of millions of dollars in credit to the dying retailer before its bankruptcy filing in December 2000. GE Capital failed to persuade 16,000 unsecured creditors to back a rival plan to drop the suit and accept payment of at least 20 percent on almost $400 million in claims.

Under the plan Lyons adopted, unsecured creditors would get at least 4 percent of claims, and perhaps as much as 100 percent, if they win their suit. The decision was made public Monday. Bloomberg News Greenspan swears in 2 new Fed members WASHINGTON Former I'rinccton economist Ben Bcr-nanke and longtime central bank staff aide Donald Kohn were sworn in Monday as members of the Federal Reserve Board. Federal Reserve Chairman Alan Greenspan administered the oath of office in the Fed's boardroom. The two newest members are expected to attend the Fed's meeting next Tuesday to discuss interest-rate policy.

Fed policymakers have held short-term interest rates at 40-year lows at each of its four meetings this year. Amid economic uncertainties and stock market volatility, many economists expect Fed policymakers will leave rates unchanged at next week's meeting. With the addition of Ber-nanke and Kohn, President Bush has selected five of the seven Fed board members. During recent confirmation hearings in the Senate, both men promised that they would work toward greater openness at the central bank. The Senate confirmed the nominations July 31.

Associated Press Venture capital funds show rare net outflow NEW YORK Venture capital firms gave back more money to their investors than they raised during the second quarter, according to a report released Monday. It was the first time the venture capital industry had engaged in "negative fund-rais Complex evidence in the Enron case layers of partnerships and a In the six months since we've been formed, we've tried and convicted Arthur Andersen and Enron's lead auditor, and filed charges against three British bankers in connection with their dealings with Enron. Leslie Caldwell Head of the government's Enron task force in Washington DIGEST other "special purpose entities," of which the company had more than 2,000 scattered worldwide. Practically every deal under the government's scrutiny was blessed by outside lawyers and auditors for Enron, meaning prospective defendants probably will argue they relied on those professionals' opinions that their actions were proper. It's not that the Enron prosecutors have been unable to bring charges.

The government's Enron task force could have elected to name former Enron Chief Financial Officer Andrew Fastow as a defendant in its June criminal complaint against three British former employees of National Westminster Bank PLC, in which Fastow is a central figure. However, that portion of its investigation represents only a sliver of the Fastow-re-lated activities being probed. For its part, the Justice Department says it will bring no charges in the Enron case before their time. "In the six months since we've been formed, we've tried and convicted Arthur Andersen and Enron's lead auditor, and filed charges against three British bankers in connection with their dealings with Enron," says Leslie Caldwell, head of the government's Enron task force in Washington. Justice has not made any arrests of executives yet By Jonathan Weil Wall Street Journal Prosecutors have made two former WorldCom Inc.

executives take the "perp walk," calling in television cameras to film U.S. marshals leading them away in handcuffs. Same with members of the Rigas family at Adelphia Communications Corp. and ImClone Systems Sam Waksal. So why have there been no cuffs yet for anyone from Enron Corp? With public demand for corporate scalps at a fevered pitch, the Justice Department has endured blistering criticism from talk-show hosts, congressional Democrats and ordinary Americans over the fact that none of the collapsed energy company's former executives have yet to be charged with a crime.

Those other cases were the easy ones, the experts say. And while charges against former Enron executives by all accounts are only a matter of time, they still could take weeks, or even months, given the complexities and scope of the activities underlying the investment bank Veronis Suh-ler Stevenson said Monday. MergersAcquisitions The European Union Commission on Monday approved Hitachi $2.05 billion acquisition of the hard-disk drive unit of U.S. technology giant IBM Corp. Initially Hitachi will buy 70 percent of the IBM division, rising to 100 percent over three years.

Hitachi says its goal is to become the world's largest maker of hard-disk drives. L-3 Communications Holdings Inc. said Monday that it agreed to acquire ComCept a closely held maker of reconnaissance and surveillance systems, at an undisclosed sum. By the numbers Interest rates on short-term Treasury securities fell in Monday's auction, with rates on six-month bills hitting their lowest level on record. The Treasury Department sold government charges that the Coudersport, company's controlling shareholders, the Rigas family, used the cable operator as their personal piggy bank, after disclosures in March that the company had guaranteed $2.3 billion in debt owed by other businesses controlled by the family.

Waksal, the former ImClone chief executive, stands accused of illegally selling stock late last year knowing that a forthcoming ruling by the Food and Drug Administration would mark a setback for a key drug under development. Compare those cases with the tasks facing prosecutors looking into Enron. Investigators must delve through thousands of transactions involving intricate swap arrangements and derivative instruments, plus layers upon Houston company's collapse last year. "People just can't fathom how hard it is to do a case like this," says Christopher Bebel, a former federal prosecutor who practices securities law at Shepherd, Smith Bebel in Houston. Consider the charges against WorldCom's former chief financial officer, Scott Sullivan, whose conduct was first disclosed in June.

Prosecutors claim he committed fraud by treating $3.8 billion of ordinary operating expenses as assets over a 15-month period that ended in March of this year, a fairly simple set of journal entries that plumped the Clinton, company's earnings, and one that was hidden from the company's outside auditors. In the Adelphia matter, the Earnings Consumer products giant Procter Gamble Co. reported fourth-quarter earnings Monday that exceeded Wall Street's expectations, helped by increased sales of health and home care products. The maker of Crest, Tide and Prin-gles snacks said earnings for the quarter that ended June 30 were $910 million, or 64 cents per share. MetLife the biggest U.S.

life insurer, said Monday that second-quarter profit rose 21 percent on higher sales of life insurance and fixed annuities and on expense cuts. Net income rose to $387 million, or 53 cents a share, from $320 million, the New York-based company said. International Britain's manufacturers suffered a 5.3 percent decline in output in June, the biggest drop in more than 22 years, the government said Monday. Marketplace General Motors Corp. will award merit raises of 3.5 percent on average to salaried workers this month after delaying the pay increases by two months.

The average raise is the same as last year and is for 53,000 employees in the United States and Canada, a GM spokesman said. U.S. advertising spending will rise 4.8 percent to $610 billion this year, reversing last year's slump when the U.S. economy entered a recession, FLAT ORIGINATION FEE 30 VR. FIXED Investing in Deeds of Trust On Prime Real Estate High Return Doesn't Always Mean High Risk 6.125 $1,000 to $100,000 -on- Fine Jewelry Watches Diamonds Sterling -only- Guarantee to Pay The -f Highest Possible Prices Insured by LLoyds 6.21 I mif.Jmi 1 Ann nil 1 m.

frtv" 1 I tOUYl TOO 10249 11 Scottsdate Rd. $16 billion in three-month bills at a discount rate of 1.600 percent, down from 1.680 percent last week. An additional $16 billion was sold in six-month bills at a rate of 1.555 percent, down from 1.690 percent. The new discount rates understate the actual return to investors: 1.627 percent for three-month bills, with a $10,000 bill selling for $9,959.60, and 1.589 percent for a six-month bill selling for $9,921.40. In a separate report, the Federal Reserve said that the average yield for one-year constant maturity Treasury bills, the most popular index for making changes in adjustable-rate mortgages, dipped to 1.82 percent last week from 1.88 percent the previous week.

0 (Just soutn or Mieai Call: 480.429.8900 American National Partners L.L.C. BK- Daily topics SUNDAY: Investing. MONDAY: Small business. TUESDAY: ePersonal tech. WEDNESDAY: Tourism.

THURSDAY: Big industry and utilities. FRIDAY: Real estate. SATURDAY: Retail, consumer spending. Compiled from Republic news services, including the Associated Press, Bloomberg News, Dow Jones News, New York Times and Knight Ridder Newspapers. DILBERT' i rAAY I USE YOUR THREE-HOLE PUNCH? WHOA WHOA UHOA! BY At First National Bank of Arizona, we believe that a bank should recognize and reward individual relationships.

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