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Contract Employee's Newsletter
Helping Contract Professionals
Manage Their Careers
Vol. 3, No. 6
March 14, 2003
Edited by James R. Ziegler
A Companion to:
The Contract
Employee's Handbook
www.cehandbook.com
Sponsored by:
P.A.C.E. - Professional
Association for Contract Employment
www.pacepros.com
About The Contract Employee's Newsletter
The Contract Employee's Newsletter is a free online publication
for technical and professional contractors containing news, commentary,
tips, links to useful resources, nuggets of wisdom submitted by
readers, and anything else that seems appropriate at the time. The
CENewsletter is published bi-weekly or whenever issues warrant and
time allows. The subscriber list is confidential and will not be
disclosed outside this organization.
In This Issue
Read recent
issues of The Contract Employee's Newsletter.
Featured Topic
COBOL - The Next Big Thing?
Who says that COBOL is dead? The following facts are supplied complements
of my friend, Bill Payson, Director of Legacy Reserves, one of P.A.C.E.'s
strategic partners.
- 75% of all business data is processed in COBOL. - Gartner Group
- There are between 180 billion and 200 billion lines of COBOL
code in use worldwide. - Gartner Group
- The use of COBOL is growing by over a billion lines per year.
- Gartner Group
- 15% of all new applications (5 billion lines) through 2005 will
be in COBOL. - Gartner Group
- CICS transaction volume (such as COBOL-based ATM transactions)
grew from 20 billion per day in 1998 to 30 billion per day in
2002. - The COBOL Report
- Replacement costs for COBOL systems, estimated at $25 per line,
are in the hundreds of billions of dollars. - Tactical Study Group
- "Integration with Legacies" is the number one concern
of IT managers in 2003. - Gartner Group.
- "Where are we going to get the bodies?" is the primary
question from User Groups. - Micro focus International
- There are over 90,000 COBOL programmers in North America in
2002. Over the next four years there will be a 13% decrease in
their number due to retirement and death. - Gartner Group
- There are at least 10,000 "Free Agent" COBOL programmers
in the US today. - The Senior Staff
- The most highly paid programmers in the next ten years are going
to be COBOL programmers who know the Internet. - GIGA Group
- Any programmer with above average skills in COBOL can quickly
learn the basics of Web Enabling, at home, through self-training.
- Bill Lockhart, Legacy Reservist
Java was developed as a programming language that would work on
any platform. .NET is a platform that will work with any language.
.NET makes it finally possible to integrate legacy systems and new
applications all the way from the "big blue boxes" in
the raised-floor computer rooms, through the many layers of middleware,
right down to the desktop and out to the Internet.
.NET and Web Services are bringing COBOL technologies to the forefront
once again in an initiative that is orders of magnitude greater
than the Y2K initiative. That initiative is the transformation and
Web enabling of large-scale Legacy Systems, which are almost universally
encoded in COBOL Business Rules.
The importance of COBOL Business Rules is illustrated in this excerpt
taken from an internal report produced by Legacy Reserves:
In the scramble to save money and speed up Legacy Transfer to
the Internet, there are numerous examples of companies that have
sought to by-pass the complexities of Rules. Some consultants,
more conversant with dot-com fashion than with the less dramatic
methodology of COBOL (upon which almost 80% of the world's business
operations depend) have concluded that Business Rules are obsolete,
which is akin to saying, "You don't have to play by the Rules
any more. Go ahead, give it your best shot."
Now, what many people unfamiliar with the origin and reason for
Business Rules have concluded is this: Because COBOL is 42 years
old it couldn't be any good, because by dot-com standards, if
something is not "new," it is, ipso facto, "old
fashioned." But if you ask, is Logic also old fashioned?
They'll quickly say, "Oh, no, that's a different subject."
But is it? COBOL was designed to standardize Business Logic in
developing Business Plans. It was good for this purpose when Admiral
Grace Hopper "invented" COBOL in 1960, and it has been
improved constantly ever since. COBOL is the most widely "trusted"
computer language in the world. And with good reason.
When you ask a gunnery officer, "Why does the Guided Missile
Frigate USS Hopper run on COBOL," (as we have) you will get
this answer: "Because COBOL can be trusted… You can't
take any chances with guided missiles, you know."
Yes, the business of COBOL is trust. Just trust.
So, to save some time and money would you like to outsource the
US Navy's Guided Missile System to, say, China?
The business of COBOL starts and ends with Trust.
If that's too subtle for you I offer this quote from William M.
Ulrich, President of Tactical Strategy Group, and author of the
groundbreaking new book Legacy Systems Transformation Strategies:
"Legacy Systems manage business and government operations
around the globe. Any organization that believes it can address
critical information requirements by replacing, wrapping, or ignoring
legacy information assets is headed for a train wreck of monumental
proportions."
Can there be any doubt that the marriage of .NET and COBOL is The
Next Big Thing?
Return to Table of Contents.
Marketing Tips
Marketing 101 - The Marketing Mix
If you haven't taken Marketing 101 at your local community college,
I highly recommend it. About ten years ago I took a community college
class called "Introduction to Marketing" and I credit
the insights I gained from that one class for much of my success
as an independent consultant and owner of a multi-million dollar
business.
In your first marketing class they teach you that marketing consists
of four elements:
- Product
- Price
- Place, and
- Promotion.
Together these four elements comprise the marketing mix.
In business, every question is ultimately a marketing question.
That is to say, as an independent consulting business you will always
be concerned with:
- What is it, exactly, that you are selling?
- What are you going to charge?
- How and where will you deliver your product? And,
- How will you build your reputation and promote your product?
That is what we mean by:
- Product
- Price
- Place, and
- Promotion.
If you want to get consulting work in today's economy, or in any
economy for that matter, you must address each of these four basic
marketing issues.
I will discuss each of these elements of the marketing mix
in future newsletters.
In the meantime, why not enroll in a marketing class at your local
community college or business school, as I did not too many years
ago? It will change your life.
Return to Table of Contents
Business Basics
What? You Don't Have A Personal Business Card?!
You absolutely must have a business card as an independent
Contract Professional. This is how you show people you meet that
you are a professional as opposed to an unfortunate "victim
of employment".
Your business card should clearly indicate what you do, and give
your complete contact information. List the phone number of your
cell phone so that you will never miss a call. Include the URL for
your professional Web site and an e-mail address that preferably
includes your name.
When networking, always ask for the other party's business card
first. That way you will be sure to collect their contact information.
Write a brief note on the card to jog your memory later. Asking
for a business card shows interest, and it is flattering to the
other party. They will be more likely to have a good impression
of you because of your interest in them.
Ask them what they do, and how they got started in their profession.
People like to talk about themselves, and if you are a good listener
they will think that you are a very good conversationalist as well
(even if you hardly say a word).
When you give your card out deliver your seven-second introduction.
If they express interest give them your 30-second pitch.
As soon as you get home enter the contact information from the
business cards you have collected into your contact manager (Outlook,
ACT!, Goldmine, etc.) along with notes on the circumstances of your
meeting. You can even buy an inexpensive business card scanner that
will do this automatically.
Collect business cards from everyone you meet. Hand
out your own business card to everyone you meet. Never
miss an opportunity to give away your card and explain what you
do in the process.
If all you do with your business card is clip it to your resume
you are missing the point entirely. Your business card is the afterglow
of a personal introduction. Keep it personal.
Free Custom Printed Business Cards
You say that you can't afford professional business cards? Well,
even if you have no money to buy custom printed cards, there is
a way to get very nice ones at no charge.
VistaPrint, www.vistaprint.com,
is an online printer that uses viral marketing (à la Hotjobs
and Yahoo! e-mail accounts) to provide potential customers with
free custom printed business cards.
VistaPrint's Free Business Cards are the same quality as their
Premium Business Cards. Both give you professional quality, four-color
printing on heavy, 100 lb. card stock.
The Free Business Cards come with the VistaPrint logo printed on
the back side. Premium Business Cards that you pay for come without
the VistaPrint logo. Free Business Cards give you 30 design choices,
versus 300 for Premium Business Cards.
If you don't mind handing out a VistaPrint mini advertisement with
your business cards this is definitely the way to go.
Pretty clever, huh? You can order your free business cards online
in a matter of seconds, and you only pay for the cost of shipping.
P.A.C.E. Offers Two Kinds of Business Cards
P.A.C.E. offers P.A.C.E. business cards to all of its Division Managers. As a Division Manager, your division is authorized to purchase
P.A.C.E. business cards tax free with all of your
own contact information.
P.A.C.E. has two types of business cards available:
- Printed business card: 250 for $27.50 , including shipping and
handling
- E-business card: $4.00 per month.
The e-business card is powered by Exyst.com.
P.A.C.E. Has contracted with Exyst to offer our Division Managers
a contact center where they can list their resume, portfolio, etc.
You receive the following features:
- An e-business card web page displaying your name, job role,
address, phone numbers and e-mail address
- Built-in easy-to-use navigation buttons
- Expandable folders that can include any web page on the Internet
or files you have uploaded
- 5 megabytes of file space, expandable to meet the most demanding
needs
- A vCard that allows visitors to add your contact information
to their address book with a click
- An e-mail link
- A map and driving directions
- Weather information for out-of-town visitors
- Yellow pages to look up local accommodations and other services
for visitors
P.A.C.E. Business cards are only available to P.A.C.E. employees,
but don't let that stop you from owning one of the consulting industry's
most respected symbols of integrity. Join P.A.C.E. today.
As the P.A.C.E. Payroll
Calculators clearly illustrate, any contractor, whether self-employed
or employed by an agency, can convert immediately to P.A.C.E. and
receive all the freedom and financial advantages of self-employment,
all the security and continuity of corporate employment, and the
best benefits package available to any Contract Professional anywhere
in the USA.
Amazing, but true! Independent contractors report that P.A.C.E.
is better than self-employed. And even agency temps will increase
their total compensation as well as upgrade their benefits by converting
to P.A.C.E. as their employer of record, and then having P.A.C.E.
subcontract through their original agency.
Moreover, any Contract Professional that says that he or she joined
P.A.C.E. because of your recommendation will earn
you a 1% referral rebate if and when you also join
P.A.C.E. (So, you don't even have to be a P.A.C.E. Division Manager
to qualify.) If you refer just five contractors your 1% referral
rebates will completely offset P.A.C.E.'s 5% service fee, and
P.A.C.E. will become effectively free.
See for yourself how independent contractors and agency temps come
out ahead when they join P.A.C.E. Link to the P.A.C.E. Payroll Calculators
from the P.A.C.E. home page at http://www.pacepros.com.
Take advantage of the free offer from VistaPrint, or purchase the
electronic and printed business cards from P.A.C.E. Either way,
you will enhance your professional image and increase your chances
of landing that next contract assignment.
Return to Table of Contents.
Contract Employee's
Glossary
Terminology For Contract Professionals
More terms from Appendix
B: Glossary of Terms for Contract Professionals of The
Contract Employee's Handbook.
Middleman
A middleman is an intermediary or agent between two parties. For
example, a dealer or agent intermediate between the producer of
goods or services and the purchaser of those goods or services.
Middlemen present an ethical quandary when they purport to represent
both sides. For example, recruiting firms claim to represent both
the Contract Professional and the client, but their allegiance is
clearly to the client who pays them, which creates a conflict of
interest with respect to the Contract Professional.
Milestone
A milestone is a scheduling event, or flag in the workplan, that
signifies the completion of a major deliverable or a set of related
deliverables. Project-based billing is usually based on the completion
of major milestones in the progress of a project.
Money Purchase Plan
A money purchase plan is a qualified retirement savings plan that
is virtually identical to a 401(k) plan, with the difference being
that the employer contributes 100% of the funds. A money purchase
plan is therefore a type of profit sharing plan. Combining a money
purchase plan with a 401(k) plan makes it possible for employees
to set aside pretax dollars equal to the federal maximum of 25%
of gross wages up to (in 2003) $41,000 per year.
Multiple submissions
Multiple submission is when a client receives resumes for the same
individual from two or more sources. Most companies throw away multiple
submissions to avoid being charged a finder’s fee by more than
one agency for placing the same individual. Multiple submissions
happen when lazy, sleazy, and unscrupulous recruiters submit resumes
without authorization by the Contract Professional, or when the
Contract Professional submits resumes to multiple recruiting firms.
It is especially frustrating when a Contract Professional submits
a resume directly to a prospective client only to be told that the
client already has a copy in their database that was submitted by
a third-party recruiter. Sloppy control over the distribution of
your resume can easily result in multiple submissions, which will
disqualify you from consideration by most clients.
Mutuality of obligation
Mutuality of obligation means that both parties to a contract promise
to provide consideration for an obligation under the terms of the
contract. Work for hire is an example of mutuality of obligation
in which one party promises to pay the other party in return for
a product or service, and the other party promises to provide a
product or service in return for payment by the first party. If
a contract lacks mutuality there is insufficient consideration to
make a binding contract.
Return to Table of Contents.
The Contract Employee's
Project
The Contract Employee's Project is the larger context under which
the following interrelated vehicles operate to promote and defend
the interests of Contract Professionals:
Copyright and
Publication Info
Copyright (c) 2003, James R. Ziegler. All rights reserved.
You may copy or forward this free publication provided it is left
intact with all links and this notice unchanged. Any unauthorized
duplication, including republication in part or in full for commercial
use, is an infringement of copyright.
Published by:
P.A.C.E. - Professional Association for Contract Employment
1355 Willow Way, Suite 244
Concord, CA 94520
USA
http://www.pacepros.com/
Editor:
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
(925) 680-0200
CENewsletters@pacepros.com
Return to Table of Contents.
Disclaimer
The Contract Employee's Newsletter is designed to provide information
in regard to the subject matter covered. Use is granted with the
understanding that the publisher and authors are not engaged in
rendering legal or financial advice. If expert assistance is required
you should seek the services of a competent professional.
The purpose of this information is to educate and entertain. The
publisher and contributors shall have neither liability nor responsibility
to any person or entity with respect to any loss or damage caused,
or alleged to be caused, directly or indirectly, by the information
contained in this Newsletter or by information contained in any
web site or resource referenced by citation or hypertext link within
the pages of this Newsletter.
Return to Table of Contents.
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Sign-off
I hope you have found the information in this newsletter to be
interesting, informative, and provocative. I encourage you to share
the CENewsletter with your friends, colleagues, coworkers, clients,
and agency recruiters.
Why clients? Because you need every ally you can get. Why agency
recruiters? Because they need to know the jig is up.
Wishing you success in your contracting career,
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
Return to Table of Contents.
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