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Paying the price for making bad hires

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* My Crain’s Chicago Business column

“I’ve seen that DGA poll,” a friend of mine says about a survey showing Gov. Pat Quinn leading Bruce Rauner 43 percent to 40 percent.

My friend says the Democratic Governors Association survey, released Sept. 11, shows big-time danger for the GOP challenger. Voters will “move off him in droves when given the right nudge.”

What “nudge” would that be?

Several, he says. The allegations from the Republican primary about abuse in nursing homes that Mr. Rauner’s company once owned. Being a rich guy who didn’t pay payroll taxes two years straight was another.

And then there was “the fraud company thing.”

Click here to read the rest before commenting, please. Thanks.

posted by Rich Miller
Tuesday, Sep 16, 14 @ 9:47 am

Comments

  1. actions speak louder than words,words can hurt,(bruce check your watch to see what time it is)

    Comment by Anonymous Tuesday, Sep 16, 14 @ 9:59 am

  2. If Quinn & Co. can make Rauner look like “Romney, but worse”, I’m not sure how Rauner wins, given Illinois’ blue tilt

    Comment by Summerwind Tuesday, Sep 16, 14 @ 10:00 am

  3. Good points Rich. A record of successful management experience matters and does transfer to govt . . “nudged” to what? The guy with a 30% approval rating, lifelong pol, federal investigations, patronage scandals, tax increases
    etc. . . Not sure I agree with their math but always good to hear from the guys who don’t live in Illinois

    Comment by westsider Tuesday, Sep 16, 14 @ 10:00 am

  4. Clearly the first two commenters did not read the entire article. When it comes to good hires, Quinn does not appear to have much of a track record. Rauner has a few high profile business failures, but for the most part appears to have put together the right management/executive teams to create real value and jobs in the private sector. That skill in the public sector is sorely needed, and one that Quinn sorely lacks.

    Comment by phocion Tuesday, Sep 16, 14 @ 10:08 am

  5. **always good to hear from the guys who don’t live in Illinois**

    What guys from outside of IL are you talking about?

    Comment by AlabamaShake Tuesday, Sep 16, 14 @ 10:10 am

  6. Dumb and Dumber.

    Comment by Touree's Latte Tuesday, Sep 16, 14 @ 10:17 am

  7. Rauner is willing to take the monies needed out of a company to ensure a profit for himself and others, and if ignoring the CEO who went to prison is being “successful at everything”…

    …then “everything” truly means, “did I make money?”, how can you be a governor where the bottom line is providing services that the private sector can’t, won’t, and many times are unprofitable.

    Rauner’s measure of success is the return of monies to those who invest with him. Ask him.

    Pennsylvania pensions.

    That is the glaring example.

    It’s not that he gave monies to Rendell, or was in insider to the the business. What dies Rauner always say?

    “We gave outstanding, outstanding returns.”

    The measure of success is the cash, no matter how the business itself is secured, how the relationship is cemented, but the dollars make it fine.

    Same with Lason, Stu Levine, Pennsylvania pensions, or even not paying payroll taxes…

    …it’s the cash made, that is success.

    Not the way to pick agency heads, “can I profit?”

    Won’t work, especially when choices lead to prison too.

    Quinn has severe problems, with bad choices, but Rauber, his bad choices are driven by profit, and that especially is troublesome.

    Comment by Oswego Willy Tuesday, Sep 16, 14 @ 10:24 am

  8. Quinn has shown he doesn’t do a very good job of hiring management superstars, probably because Quinn tends to favor old friends over unknowns. Even though he’s hired some clunkers, Rauner has shown he can hire good management in the private sector; the big quesiton is if those private management types can successfully transition to a government mindset. I would say the chances of that are about 50/50.

    The path to victory for Quinn is to keep emphasizing his positives (he really has cut the discretionary budget, paid down the bill backlog, tried to reform the pensions albeit illegally and continues dig out by making the required “ramp” pension payments) while also trumpeting all Rauner’s negative business dealings … and hope that outweighs the various Quinn missteps (patronage, perceived corruption) with the voters. Quinn also has to hope the unions come home on election day and the federal investigation doesn’t serve up an October surprise.

    Rauner’s path is to keep pushing on Quinn’s bad hires, preceived incompetence, and hope for an October surprise while describing his successful business ventures and downplaying his business disasters … and keep promising improved schools, low taxes, and great jobs along with pie in the sky, two chickens in every pot, and a new car in very garage.

    Regardless of what the polls say now, I think it will end up a squeaker that may not be decided until late in the night or early the next day.

    Comment by RNUG Tuesday, Sep 16, 14 @ 10:25 am

  9. Can’t read the article. Is it behind a paywall? Is there a free version somewhere?

    Comment by Frenchie Mendoza Tuesday, Sep 16, 14 @ 10:26 am

  10. Rauner has to be planning a shake up of his close consultants after this past weekend of nothing but bad news. No way after spending what he has, against a Governor that both sides agree is in over his head, should this race even be close.

    Comment by Anonymous Tuesday, Sep 16, 14 @ 10:27 am

  11. “keep promising improved schools, low taxes, and great jobs along with pie in the sky, two chickens in every pot, and a new car in very garage”

    You mean, the same things that PQ is promising.

    Remember: PQ’s enacted budget has a 3% income tax in 2015. Rauner isn’t calling for a cut from *that*.

    Comment by Chris Tuesday, Sep 16, 14 @ 10:29 am

  12. Bad hires are the gift that keeps on giving in Government. It’s a lot harder to get rid of them. So, your judgement is doubly important when you can’t ax someone too easily. Certainly not quietly. PQ doesn’t want a head to head on this issue. It’s hard to even think of one great hire he’s made. Try it. It’s really hard.

    Comment by A guy... Tuesday, Sep 16, 14 @ 10:30 am

  13. I am biased but the Rauner spin about his private sector success just doesn’t seem that compelling to me because the only thing we have to back up his great success in business is Rauners word, and Quinn has successfully shown him to be a liar on minimum wage and he’s presented himself in a fake way with that watch and van when he’s got a gold coin swimming pool like Scrooge McDuck hidden behind his moat.

    Where is the worker who appears in an ad and says “Bruce Rauner created my job and as Illinois governor he’s gonna create even more”?

    If Rauner can’t convince Illinois voters he’s gonna create jobs then I think they just throw up their hands and say both these guys are awful, Ill just stick to the party I’m aligned with on the issues and ignore the guy at the top.

    Comment by hisgirlfriday Tuesday, Sep 16, 14 @ 10:34 am

  14. Willy—obviously you have never run anything. The ability to recognize talent, recruit build a team and drive results is critical to any organization Unless you spend your days shooting rubber bands around the office

    Comment by westsider Tuesday, Sep 16, 14 @ 10:37 am

  15. == PQ doesn’t want a head to head on this issue. ==

    There is truth to that. If bad hires extend throughout the reach of the organization you run, there is a tit-for-tat version of nearly every story Quinn would hit Rauner on.

    That includes everything from patients being abused to investments in the Cayman Islands.

    Comment by Formerly Known As... Tuesday, Sep 16, 14 @ 10:38 am

  16. ===Willy—obviously you have never run anything. The ability to recognize talent, recruit build a team and drive results is critical to any organization Unless you spend your days shooting rubber bands around the office===

    How do you know? Why is it obvious? That’s Rauner smugness.

    Further,

    Bruce Rauner, he bails on Lason, and his *cough* “Superstar” gets to do four years…

    Can’t quit “governor”

    Why make it about me, make it about your argument.

    Comment by Oswego Willy Tuesday, Sep 16, 14 @ 10:44 am

  17. ===It’s hard to even think of one great hire he’s made. Try it. It’s really hard.===

    How about if we compare the most important hire of all — Paul Vallas vs. Evelyn Sanguinetti?

    There’s really no comparison, is there?

    Comment by Mighty M. Mouse Tuesday, Sep 16, 14 @ 11:03 am

  18. Guy, I don’t know if hiring “superstars” is the right measure of any Governor. It would be nice, I guess, but most of the best government leaders and managers I knew and worked with over the years were long term government employees (career bureaucrats if you will, a pejorative term in many peoples minds, including Mr Rauner’s, I fear) who knew their agencies, showed up every day, got their jobs done, accepted responsibility when things went awry (which sometimes happens to even the good guys) and got it fixed. Those kinds of people are never going to be known as “superstars”, especially by outsiders. Who were the superstars In Ryan’s administration, or Edgar’s, or Thompson’s, or Walkers? The “super names” come and go, don’t want to stick around and get their hands dirty, are always looking for the next best gig, and too often have no real alliance to the state or it’s government or citizens.

    Assuming age was not immutable, if I put together a cabinet of the best I worked with over the years no one but insiders (there’s that dirty word again) would recognize the names of most of them.

    Comment by steve schnorf Tuesday, Sep 16, 14 @ 11:09 am

  19. ==It’s hard to even think of one great hire he’s made. Try it. It’s really hard.==

    You can’t possibly be serious. That essentially questions the competence of every single hire that has been made under Quinn. It’s insulting and below you.

    Comment by Demoralized Tuesday, Sep 16, 14 @ 11:10 am

  20. ==but most of the best government leaders and managers I knew and worked with over the years were long term government employees==

    Unfortunately these are the exact same people that the general public and Rauner constantly berate. People have zero understanding that it takes people who now how government works to get anything done. If you want to accomplish your goals as Governor you better have people who know what they are doing. Somebody with no government experience isn’t going to know what they are doing. Hopefully they are smart enough to realize that and will surround themselves with people who do have that experience and can help them accomplish their goals.

    Comment by Demoralized Tuesday, Sep 16, 14 @ 11:15 am

  21. @Chris:

    You write:
    “Remember: PQ’s enacted budget has a 3% income tax in 2015. Rauner isn’t calling for a cut from *that*.”

    Not quite. The enacted budget allows the individual income tax rate to go down to 3.75% (not 3%) for six months of the fiscal year. Rauner is talking about bringing it down to 3% for the full fiscal year (eventually). That’s a fair amount of dough.

    Comment by VM Tuesday, Sep 16, 14 @ 11:17 am

  22. ==Mighty M. Mouse - Tuesday, Sep 16, 14 @ 11:03 am:

    ===It’s hard to even think of one great hire he’s made. Try it. It’s really hard.===

    How about if we compare the most important hire of all — Paul Vallas vs. Evelyn Sanguinetti?

    There’s really no comparison, is there?===

    Mighty Mouse. Thanks for making my point. Paul Vallas, great hire. He believes in everything the Governor doesn’t. Hope you weren’t too proud of that answer because it’s goofy.

    Comment by A guy... Tuesday, Sep 16, 14 @ 11:20 am

  23. ===Demoralized - Tuesday, Sep 16, 14 @ 11:10 am:

    ==It’s hard to even think of one great hire he’s made. Try it. It’s really hard.==

    You can’t possibly be serious. That essentially questions the competence of every single hire that has been made under Quinn. It’s insulting and below you.====

    Sorry Demo. Not trying to insult anyone. Just offer me up one great department head. One. I’d give him the benefit of the doubt if I could think of one. Do the exercise in reverse. Name the bad ones that come to mind. That’s very easy. Especially lately.

    Again, not trying to insult anyone here.

    Comment by A guy... Tuesday, Sep 16, 14 @ 11:22 am

  24. === steve schnorf
    Who were the superstars In Ryan’s administration, or Edgar’s, or Thompson’s- Tuesday, Sep 16, 14 @ 11:09 am:===

    Schnorf, Arguably you were. We may disagree often, but you’ve never heard me refer to you as a dope. Nor would you. Who’s the Schnorf? Who’s the Dillard (Thompson/Edgar)? I can come up with at least 10 names right off the top of my head in the Edgar/Thompson/even Ryan! admins. They’ve all gone on to do great things. They were rising stars then. Including you. People recognized it.
    Everyone in the last 2 admins is leaving in shame or being pushed out.

    It’s a fair question that is stumping some of the best (and most challenged) minds here.

    Name someone? It’s tough.

    Comment by A guy... Tuesday, Sep 16, 14 @ 11:27 am

  25. It’s an interesting point that Rich makes about Rauner’s strategy being to hire the best and building around that person (CEO).

    But I think what’s missing is the context of the private equity business. I think that GTCR’s business strategy falls into the category of “if only people knew how these guys made money.”

    The simple fact is that private equity makes its money by finding companies that can be flipped. Sometimes, the changes made at the target company are in fact for the better long term. But too often private equity just spruces the place up to make it more attractive in the short term.

    Moreover, private equity’s big leverage is that they find companies not overburdened by debt, use the equity to borrow most of the money to purchase the company, and then sell a company that is burdened with debt (but has better ratios because of cost cuts).

    It’s because of the amount leveraged that private equity can make a lot of money by making short term changes in the company that may very well hurt the company in the long term.

    In other words, GTCR and other private equity firms make their money by looking at the short term, not by looking at the long term health of the company. You can’t do that in government.

    Without that context, you can’t really evaluate what Rauner means when he says he builds around a CEO.

    Comment by VM Tuesday, Sep 16, 14 @ 11:28 am

  26. @A guy:

    I would argue that Brian Hamer is a pretty smart guy at Revenue.

    Comment by Demoralized Tuesday, Sep 16, 14 @ 11:36 am

  27. ===How about if we compare the most important hire of all — Paul Vallas vs. Evelyn Sanguinetti?===

    She got “hired” by Bruce, even though there isn’t a job yet. lol

    Slip and Sue is Bruce’s “first” hire. That is all you need to know.

    Comment by Oswego Willy Tuesday, Sep 16, 14 @ 11:38 am

  28. Since Rauner called so many people corrupt without proof and incompetent, it’s more than fair to scrutinize him and his business record. He said he was hands-on and successful, except when there were major problems, at which time he didn’t remember and said stuff like he managed too many companies to not know what was happening in them.q

    I never heard of Rauner prior to this campaign. My first impressions of him were bad. He was demonizing union leaders and implying he was going to smash them with his proverbial sledgehammer.

    Naturally, when someone attacks people in this way, some will look to counterattack. As The Who said, “Who the eff are you?”

    Comment by Grandson of Man Tuesday, Sep 16, 14 @ 11:38 am

  29. Guy, many years ago I was named a “Distinguished Alumnus” of my university. In acceptance I pointed out my selection gave hope to many, many who never had it nor deserved it before. I say the same thing to you now, though I appreciate the kind words. If I am/was a superstar the bar is set much too low and the world, including state government has far more of them than we ever dreamed. I did my job, stuck around, had no grand desire to do/be something else. Going on to do great things? I don’t begrudge them, but if they were that good government needed them. You talk about Kirk, a great guy who would have made an outstanding Governor, the people kicked him in the teeth, twice. He’s probably trying to figure out to whom he was a superstar.

    Comment by steve schnorf Tuesday, Sep 16, 14 @ 11:45 am

  30. ===Just offer me up one great department head.===

    Brian Hamer at Revenue is a truly great department head. He’s the longest serving department director in the history of the state of Illinois, and despite the fact that he was originally appointed by Blagojevich he has nevertheless earned the respect of legislators from both parties.

    Comment by Mighty M. Mouse Tuesday, Sep 16, 14 @ 11:47 am

  31. I agree that Hamer has been a very good hire, the type of solid person any administration would want to have and keep around. But ask Brian if he sees himself a “superstar”: he would laugh at the idea.

    Comment by steve schnorf Tuesday, Sep 16, 14 @ 11:48 am

  32. ===But ask Brian if he sees himself a “superstar”: he would laugh at the idea.===

    No doubt. His ego isn’t big enough to think of himself as a superstar. He would never call himself that, but he’s so good at his job that it’s easy to see why others might think so.

    Comment by Mighty M. Mouse Tuesday, Sep 16, 14 @ 11:58 am

  33. And as it has been pointed out, he wasn’t a Quinn hire. Try again.

    He is a solid guy.

    Comment by A guy... Tuesday, Sep 16, 14 @ 12:06 pm

  34. Schnorf. You’re modest. That’s one of the things a lot of people like. If the bar is set too low, we’re still not hitting it. I suspect you came in with something more going for you than an “uncle” or cousin or whatever. Dillard was absolutely a superstar in his staff position. Over a hundred thousand people would say so as Senator, tens of thousands more as a Governor candidate. He didn’t convince enough of people that he was the solution to the problems we have. That doesn’t tarnish his status as a superstar in Government that has no peer in the current administration.

    Comment by A guy... Tuesday, Sep 16, 14 @ 12:10 pm

  35. Rocco Claps, Director of IL Dept of Human Rights was appointed one month after Hamer, in February of 2003. Ask any of his colleagues, staff and anyone who has ever done business with him and you’ll find no better example of a public servant. Quinn did right by reappointing him.

    Comment by Namaste Tuesday, Sep 16, 14 @ 12:11 pm

  36. ===he wasn’t a Quinn hire===

    Quinn hired him at the Cook County Board of Appeals about 15-20 years BEFORE Blagojevich hired him. So he was a Quinn hire, originally.

    Comment by Mighty M. Mouse Tuesday, Sep 16, 14 @ 12:12 pm

  37. A guy,
    = he wasn’t a Quinn hire. Try again.=
    A reappointmnet is a “hire”.

    Comment by Namaste Tuesday, Sep 16, 14 @ 12:12 pm

  38. == Namaste - Tuesday, Sep 16, 14 @ 12:12 pm:

    A guy,
    = he wasn’t a Quinn hire. Try again.=
    A reappointmnet is a “hire”.===

    Oh. That counts for you.

    Comment by A guy... Tuesday, Sep 16, 14 @ 12:25 pm

  39. Unfortunately, for every Brian Hamer there is an Arthur Bishop and an Erwin McEwen.

    Comment by Formerly Known As... Tuesday, Sep 16, 14 @ 12:32 pm

  40. – The ability to recognize talent, recruit build a team and drive results is critical to any organization–

    And if you’re going to run the old pump-and-dump, who better to hire than someone who’s already been clipped by the SEC for insider trading?

    Comment by wordslilnger Tuesday, Sep 16, 14 @ 1:03 pm

  41. @A guy:

    He was reappointed so, yeah, he is a Quinn hire now. Or are you now moving the bar for the question you asked?

    In any event, I’m not sure about this obsession with labeling somebody a “superstar.” If somebody is competent and is doing the job to the best of their ability then they get a pass from me. I would argue most of the directors out there right now fit into this category. As we have seen there are those that end up doing their jobs in a less than stellar manner. But that shouldn’t be an indictment against everybody.

    Comment by Demoralized Tuesday, Sep 16, 14 @ 1:35 pm

  42. …And Dean Smith is the guy who made “the hire”.

    Comment by A guy... Tuesday, Sep 16, 14 @ 1:50 pm

  43. @A guy:

    Fine. If you want to be silly go for it. I love when people ask questions only to move the goal posts when they don’t like the answers they are given. Done with you on this question.

    Comment by Demoralized Tuesday, Sep 16, 14 @ 2:02 pm

  44. Sorry, but I have very little patience when somebody asks a question and then moves the goal posts. /end rant

    Comment by Demoralized Tuesday, Sep 16, 14 @ 2:07 pm

  45. Guy, I think in government Gold Glove winners and singles/doubles hitters carry the day, not MVPs

    Comment by steve schnorf Tuesday, Sep 16, 14 @ 4:08 pm

  46. Demo, loosen the tie. Or the shoelaces. I’ll give you the one reappointment. I’ll accept that you consider that the very same as a hire. That’s not what the Crain’s story was alluding to in terms of finding and developing people, but hey, I’m not going to quibble with you. That being accepted, isn’t it a shame that that’s the best any of us here could do?

    Comment by A guy... Tuesday, Sep 16, 14 @ 4:40 pm

  47. Schnorf, agreed. That’s not what we’re seeing. Lately it’s a revolving door of foul pops retired by the catcher.

    Comment by A guy... Tuesday, Sep 16, 14 @ 4:42 pm

  48. - Chris - Tuesday, Sep 16, 14 @ 10:29 am:

    Quinn lobbied to keep the current 5% rate. It was the GA that refused to extend it.

    Comment by RNUG Tuesday, Sep 16, 14 @ 11:07 pm

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