7. Vienna University of
Technology
Players operate track switches
and adjusting the speed of virtual
trains to prevent virtual trains
from colliding. Researchers Daniel
Wagner, Thomas Pintaric and
8. Vienna University of Technology
Players operate track switches and adjusting the speed of virtual trains to prevent virtual trains
from colliding. Researchers Daniel Wagner, Thomas Pintaric and Dieter Schmalstieg
9. Through mixing
realities, research is
expanding the potential
of embedded training in
the field and in battle
labs to provide
integrated training
anytime, anywhere.
Advancements are
being transferred
across industries from
business prototypes to
hospitality training.
Integrated research in
tracking, registration,
rendering, display, and
scenario delivery are
expanding the
possibilities of
CONSTRUCTIVE
simulation as well as
after action review,
and command and
control visualizations.
10. Kurzweil’s Exponential Pace of Innovation
Keystone
Events
The pace of technological change
“advances (at least)
exponentially”.
–Ray Kurzweil
11. Ray Kurzweil
An analysis of the history of technology
shows that technological change is
exponential, contrary to the common-sense
"intuitive linear" view. “So we won't
experience 100 years of progress in the
21st century -- it will be more like 20,000
years of progress (at today's rate).”
12. http://www.arraycomm.com/pcct/coopers_law.htm
Moore’s Law - Shrink
volume by 1011
increase
Power by 1011
Martin Cooper’s Law -
the no. of
conversations (voice
and data) conducted
over a given area, in all
of the useful radio
spectrum has doubled
every 21/2 years for the
last 105 years since
Marconi, 1895.
Cooper’s Law
1st
Gen Mainframe
2nd
Gen Mini
3rd
Gen PC
4th
Gen Sys on Chip
15. Integrates sensors,
batteries, a control chip,
and an RF transmitter in
a 35mm-long housing.
University of
Glasgow’s
Lab-in-a-Pill
http://www.olympus.co.jp/en/news/2004b/nr041130capsle.cfm
16. MIT Tech Review, 2005
Sensors
Physical
Chemical
Biological
http://www.rieti.go.jp/en/events/bbl/03102801.pdf , page 16
Actuators
Physical
Chemical
Biological
17. “Robots at same
stage as 1978 PCs.”
--Baylor University,
Carbonara and Korpi
Machine Actors
v
v
18. MIT Tech Review, 2005
This is a ROBOT
http://www.rieti.go.jp/en/events/bbl/03102801.pdf , page 16
19. Micro-robotics team and biologists at Tsukuba University
Source: The Guardian
Date: 2 May 2002
State University of New York (Suny)
"Go go gadget: With a
remote control sensor
hotwired to its central
nervous system,
developments like the
"roborat," created at
SUNY's Downstate
Medical Center, herald
the coming of the
biotronic age.
20. NanoBionics: Technical applications of
biological molecules including protein-based
materials, DNA-based materials,
biomineralization, cellular systems and
bioelectronics.
http://www.nanobionics3.de/
21. Adapted from Charles Ostman
Senior Fellow
Institute for Global Futures
NEURO NANO
BIOINFO
What is fueling this
progress?
25. Charles Ostman
Senior Fellow
Institute for Global Futures
NEURO NANO
BIOINFO
Global Jobs Pull
Council on Competitiveness:
National Innovation Initiative
Samuel Palmisano (CEO, IBM): The future
breakthroughs are going to be in
interdisciplinary cooperation -- combinations of
biology, chemistry, and computational science.
Roughly 100 million jobs are going to be
created in a lot of these cross-disciplinary
fields: bioinformatics, hydrogen fuel cells,
broadband infrastructure, on and on.
--Business Week: 10.11.2004
29. Other nations outpace U.S. in engineering graduates.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
240,000
China
India
European
Union
Japan
Russia
U.S.
SKorea
Taiwan
# of 1st degree in Engineering / Science
Source: National Science Board, “Science and Engineering Indicators – 2004”; Table
2-33. Russia, India and S Korea data from University of Texas NCR Report 2004
30. Other nations outpace U.S. in engineering graduates.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
240,000
China
India
European
Union
Japan
Russia
U.S.
SKorea
Taiwan
# of 1st degree in Engineering / Science
Source: National Science Board, “Science and Engineering Indicators – 2004”; Table
2-33. Russia, India and S Korea data from University of Texas NCR Report 2004
3 X
Each
31.
32. Tipping Point
Shanghai Jiao
Tong University
2005 ACM International
Collegiate Programming
Contest World Championship
In China (3.7MM), 42% of
students earn science/
engineering degrees
compared to 5% in
US (380K).
Source: Gunderson, 2005
April 9-13, 2006 – San Antonio, Texas
33. 2008, US will graduate 198,000
Science and Engineering Students
to replace 2MM Retiring Boomers
(Gunderson, Texas Workforce Conference, 2005)
2015, 43% of the current
workforce will retire
(In Barlow, Jamrog, Human Resources Institute, University of Tampa in
Navarro)
2030, 30MM Skilled Worker
Shortage
(Gunderson, Texas Workforce Conference, 2005)
34. Boomers
Generation X
Generation Y
46-64
65-79
80-Present
U.S. Census Bureau, Demographic
Trends in the 20th Century ,
Census 2000 Special Reports,
CENSR-4, Table 5, November
2002.
1946
20501900
1964
1980
Births
STEM
Workers?
Boomers, Low
SES, Minority
& Women.
U.S. Census Bureau, "U.S. Interim
Projections by Age, Sex, Race, and
Hispanic Origin,“ released
November 18, 2004.
35. Census Bureau Projections to 2100
U.S. Race/Ethnic Composition
0
50,000
100,000
150,000
200,000
250,000
2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
(inthousands)
White
Black
American Indian
Asian and Pacific Islander
Hispanic
SOURCE: U.S. Department of Commerce, Office of Technology Policy analysis of U.S Census Bureau Data, Population Projections,
http://WWW.CENSUS.gov/population/www/projections/natsum-T5.html
In John Sargent
Senior Policy Analyst
U.S. Department of Commerce
Census Bureau
Projects
Tripling of
Hispanic &
Asian
Populations by
2050. Non-
Hispanic Whites
may Drop To
Half of Total
Population (US
Census, 2004).
36. Texas Projects 20%
Population Growth
(2000-2015)
The White 15-to-34 age
population is predicted to
decrease 5 to 8 percent
(increase by 2,822).
The Black 15-to-34 age
population is predicted to
increase by 1 or 2 percent, or
perhaps remain static
throughout the state (increase
by 143,404).
The Hispanic 15-to-34 age
population is predicted to
increase 5.8 percent (increase
by 937,599).
As of 2003 Whites No Longer
The Majority In Texas (US
Census Bureau, 2004)
(Source: Regional Plan for Texas Higher
Education, 2002)
Followed by UT, OK and OR.
37. Of Every 100 Kindergartners:(24 Year-Olds)
Source: US Bureau of Census, Current Population Reports, Educational
Attainment in the United States;
March 2000, Detailed Tables No. 2
91 Graduate High School 62
62 Complete at Least Some College 29
30 Obtain at least a Bachelors Degree 6
White Latino
38. Of Every 100 Kindergartners:(24 Year-Olds)
Source: US Bureau of Census, Current Population Reports, Educational
Attainment in the United States;
March 2000, Detailed Tables No. 2
White to Latino
5 to 1Obtain at least a Bachelors Degree
39. S&E Bachelor’s Degrees, by Race
Bachelor's Degrees in Various S&E Disciplines
As a Percent of All Bachelor's Degrees Earned By That Group
By Race, 2000
0%
2%
4%
6%
8%
10%
12%
Engineering Physical Science Mathematics Computer Science Biological Science
White, non-Hispanics
Asians/Pacific Islanders
Black, non-Hispanics
Hispanics
American Indians or Alaskan Natives
In John Sargent
Senior Policy Analyst
U.S. Department of Commerce
40. S&E Bachelor’s Degrees, by Race
Bachelor's Degrees in Various S&E Disciplines
As a Percent of All Bachelor's Degrees Earned By That Group
By Race, 2000
0%
2%
4%
6%
8%
10%
12%
Engineering Physical Science Mathematics Computer Science Biological Science
White, non-Hispanics
Asians/Pacific Islanders
Black, non-Hispanics
Hispanics
American Indians or Alaskan Natives
In John Sargent
Senior Policy Analyst
U.S. Department of Commerce
Opportunity
41. S&E Bachelor’s Degrees, by Race
Bachelor's Degrees in Various S&E Disciplines
As a Percent of All Bachelor's Degrees Earned By That Group
By Race, 2000
0%
2%
4%
6%
8%
10%
12%
Engineering Physical Science Mathematics Computer Science Biological Science
White, non-Hispanics
Asians/Pacific Islanders
Black, non-Hispanics
Hispanics
American Indians or Alaskan Natives
In John Sargent
Senior Policy Analyst
U.S. Department of Commerce
Opportunity
42. Bachelor's Degrees in Various S&E Disciplines As a Percent of
All Bachelor's Degrees Earned By That Gender
By Gender 2000
0%
2%
4%
6%
8%
10%
12%
Engineering Computer
Sciences
Earth, Atmos.
& Ocean
Sciences
Physical
Sciences
Mathematics Social
Sciences
Biological
Sciences
Psychology
Men
Women
5.2:1
3.4:1
2.0:1
1.9:1 1.5:1
1.1:1
1.1:1
1:2.4
S&E Bachelor’s Degrees, by Gender
In John Sargent
Senior Policy Analyst
U.S. Department of Commerce
Opportunity
43. College Graduates by Age 24
Young People From
High Income Families
48%
Young People From
Low Income Families
7%
Source: Tom Mortenson, Research Seminar on Public Policy Analysis of
Opportunity for Post Secondary, 1997 in Latino Health Care Project,
Report at Casey Journalism School for Children and Families
44. • Education & Workforce Context
• Economic Development Context
• What is the 5th
World?
• The Experiment
49. Today, Finland’s progressive strategy includes:
multi-disciplinary and multi-industry collaboration to
integrate nano science-, bio science-, information
science- and cognitive science-based research and
development (Tieke, 2005, p.9); converging design,
art and science in the contexts of education and
human development (Tahkokallio and Koivusilta,
2004, p.1); national R&D policy and urban-rural
development establishing connected regional
centers of innovation; partnering with global high
tech markets and industries (Embassy of
Switzerland, Beijing, 2005, p.12); and leading the
world in “Public-Private Partnership” (with efforts
dating back to the year of their independence, 1917)
(Tieke, 2005, p.12-15).
54. GAME TEAMS
Games have captured
millennials imagination
and time.
Leverage the attention
economy of games to
develop next generation
workforce.
We need to pierce the
veil of play and support
game-based
constructivist learning.
Transdisciplinarity is
the common
denominator.
Games NANO BIO INFO NEURO
Game Builder = System Builder
Educational Pull
55. • Education & Workforce Context
• Economic Development Context
• What is the 5th
World?
• The Experiment
56.
57. Self Organized Innovation Networks –
Cross appropriation of game
technology to other human endeavors.
60. Player is Incident
Commander or subordinate
crisis responder. Responds
to events with choices that
should mirror Department of
Justice NICS doctrine.
• Tactical Map set in player’s
home county
• ICS “hints” throughout
gameplay
• Coordination and
communication required for
success
• Full-scale training is
unaffordable for small
jurisdictions*
• Permits widespread
distribution to many users*
*88% of all jurisdictions are
considered to be small.
Incident Commander
Recommendation: Emphasize human-to-
human computer mediated
communication, interaction and learning.
61. Virtual U models the attitudes and
behaviors of the academic
community in five major areas of
higher education anagement:
• Spending and income decisions
such as operating budget, new
hires, incoming donations, and
management of the endowment;
• Faculty, course, and student
scheduling issues;
• Admissions standards, university
prestige, and student enrollment;
• Student housing, classrooms, and
all other facilities; and
• Performance indicators.
Enlight Software, the Jackson Hole Higher Education Group, and the Institute for
Research on Higher Education at the University of Pennsylvania (data), with support
from the Alfred P. Sloan Foundation and the Spencer Foundation. www.virtual-u.org
62. food-force.com
Produced by the
United Nations'
World Food
Programme, Kids join
a team of emergency
aid workers to save
the fictitious island of
Sheylan from
starvation caused by
drought and civil
war.
The team goes on six
missions to help save
the island. The
additional missions
cleverly use games to
demonstrate how
emergency aid
teams acquire food,
make food packs,
deliver food and
establish long-term
food supplies.
69. Female, 4,
8%
Male, 46,
92%
Average Age Respondent 15
Avg. Age Start Playing Games 5
Avg. Hours of Play Per Week 24
% Mod’ers 34%
Average Hours Mod'ing Per Wk. 5
Average Age Start Mod'ing 12
50 Game Camp Respondents to Date
71. Why do you modify games?
9
8
14
3
9
8
8
9
0 2 4 6 8 10 12 14 16
Playing Yes
Playing No
Learning Yes
Learning No
Show Yes
Show No
Better Yes
Better No
77. Player
Incr. hand-eye coord
reaction time
spatial visualization
neuro-psych. tests
visual attentiveness
and mental rotation
http://www.wehealnewyork.org/BI%20Surgeon%20teams%20up%20with%20Hollywood.htm
James “Butch” Rosser, M.D.,
Chief of Minimally Invasive Surgery,
Director of the Advanced Medical Technology Institute (AMTI)
Beth Israel Medical Center in Manhattan
According to Rosser’s study,
surgeons who currently play or
previously played video games
had a 37% reduction in errors
and accomplish laparoscopic
surgical tasks 27% quicker.
79. Neuro Evolved Robotic Operatives
Agents cope with changing environments and
situations, optimize resource management, and
form adaptive tactical solutions in real time.
Stanley,
Bryant,
Perry,
Patterson,
Gold,
Thibault,
Miikkulainen
IC2
Institute: NERO
Game Builder – AI for Sensors
82. REMIXING –
Constructive media
remixing
TEAMS –
Transdisciplinary
communities of practice.
SWARMING –
Network socialization
and learning
(communal).
GROUP –
Global Generation?
1980
Emergence of the
5th World
198219641946
Boomers
Generation X
Millennials
46-64
65-79
82-Present
5th
World
4th
World
= Digital
Divide
85. This study was funded by the State Farm
Companies Foundation and by Dr. George
Kozmetsky (1917-2003), founder of the IC²
Institute. The study was designed and
analyzed, and the report was written by a
team at The University of Texas at Austin:
Aliza Gold, Senior Producer and Researcher
at the Digital Media Collaboratory, part of
the IC² Institute
Emily Durden, PhD candidate in Sociology
Marjorie L. Kase, M.A. in Communication
Shane Alluah, PhD candidate in Educational
Psychology
Ana Boa-Ventura, PhD candidate in
Communication
The research team would like to thank the
participating schools and their
administrators:
Elgin Middle School
Goodnight Middle school
Miller Junior High
Fleming Middle School
86. Low SES: More TV
and More Video
Games
TV
Games
A. Gold, IC2
Institute, UT Austin, Forthcoming
91. • Students have professional aspirations, but
lack knowledge about how to reach
professional goals.
• Opportunities to learn about and explore
careers are not available at school or
accessed by the majority of students.
• Students lack knowledge about the context
and content of careers.
Aliza Gold, et al, Forthcoming, IC2
Institute
92. Females Males
Designer/Decorator Professional athlete
Doctor Video Game Designer
Cosmetologist Business Owner
Lawyer Engineer
Teacher Lawyer
Business Owner Military Service
Musician/Singer Auto Mechanic
Cook/Chef Computer Programmer
96. Source: Brazell, IC2
Institute, 2004
Yang Cai, Ingo Snel, Betty Chenga, Suman
Bharathi, Clementine Klein d, Judith Klein-
Seetharaman; Carnegie Mellon University,
University of Frankfurt, Research Institute,
University of Pittsburgh School of Medicine.
www.andrew.cmu.edu/~ycai/biogame.pdf
BIOSIM
1.0
110. First Aero
Squadron, Old #
1
1910
• 1910 First military man to
teach himself to fly
• Only person to ever learn
to fly by mail
• First and only military test
pilot flying Old No. 1
• First to invent seat belt
and wheels
• 1911 First to fly more than
100 miles non-stop
• First on an operational
reconnaissance
flight
• First to test use of radio in
flight
Benjamin
D. Foulois
112. SwRI
SFBR
Founder
Thomas Baker
Slick Jr. -
businessman,
inventor,
oilman,
rancher,
engineer,
philanthropist,
peacemaker,
adventurer,
and visionary.
Tom Slick Professorship of World Peace at the University of Texas
Institute for
Inventive
Research, 1949,
Reader’s Digest,
1000 a week,
Circus Tent, 114
Viable
Mind
Science
Foundation
113. 1963
“This Nation
has tossed its
cap over the
wall of space,
and we have
no choice but
to follow it.”
--John F. Kennedy,
Nov 21, 1963
Man-In-Spac
Program
118. 10 patents that have changed the
world.
Cut the number who die from heart
disease in half annually.
Julio C. Palmaz, M.D.
1988
Palmaz Stent
119. Dr. Susan Naylor
& Dawn K Garcia
“Initial
sequencing and
analysis of the
human genome”
Dr. Susan Naylor
Feb. 12, 2001,
Journal Nature
120. Star Wars: Episode 2,
Harry Potter and the
Prisoner of Azkaban, Lord
of the Rings, The Passion
of the Christ, Spider-Man 2,
The Matrix, Pirates of the
Caribbean, Black Hawk
Down, Star Trek Nemesis,
AI, Jimmy Neutron,
Jurassic Park III, Spy Kids,
Charlie’s Angels, The
Tim
Jenison
1985
125. The Historical Experiment
• Continuity
• Ground
• Structure
• Method
• Vehicle
• Mission
Schriever Institute
126. Brigadier
General Robert
F. McDermott
RETIRED
"when the economic history
of San Antonio in the 1980s is
written, the most influential
individual will be McDermott"
--Mayor Henry Cisneros
Founder Air Force
Academy
1. Accelerated Credit
2. Transfer Credit
3. Broaden Education
4. Automation
127. Brigadier General Robert F.
McDermott
RETIRED
Acceleration of Credit
Transfer of Credit
Broader Education
Automation
General Bernard A. Schriever
RETIRED
Dr. Francis Kane
Space Academy
128. The Historical Experiment
• Continuity
• Ground
• Structure
• Method
• Vehicle
• Mission
Schriever Institute
131. • Students have professional aspirations, but
lack knowledge about how to reach
professional goals.
• Opportunities to learn about and explore
careers are not available at school or
accessed by the majority of students.
• Students lack knowledge about the context
and content of careers.
Aliza Gold, et al, Forthcoming, IC2
Institute
132. The Historical Experiment
• Continuity
• Ground
• Structure
• Method
• Vehicle
• Mission
Schriever Institute
133. TEAMS
Game Builder = STEM + ART
Transdisciplinary Action
Learning, problem solving & production.
134. Transdisciplinarity
• creating new knowledge, processes and
systems
• integrated learning, working and problem
solving
• working in communities of practice -
teaming across disciplines
• project based learning that engages real
world local issues and problems
141. spaceTEAMS
• Build 6th
-10th
grade Pipeline to feed 2+2
• Use Extracurricular Robot Program for
Project Based Learning
• Wrap History, Current Cluster Workforce
Needs and Educational Opportunities
around Robot Program
• Context is Space, Mission to Mars & S&T
142.
143. The Historical Experiment
• Continuity
• Ground
• Structure
• Method
• Vehicle
• Mission
Schriever Institute
145. GAME TEAMS
Games have captured
millennials imagination
and time.
Leverage the attention
economy of games to
develop next generation
workforce.
We need to pierce the
veil of play and support
game-based
constructivist learning.
Transdisciplinarity is
the common
denominator.
Games NANO BIO INFO NEURO
Game Builder = System Builder
Educational Pull
The Invisible Train
The Invisible Train is the first real multi-user Augmented Reality application for handheld devices (PDAs). Unlike other projects, in which wearable devices were merely used as thin-clients, while powerful (PC-based) servers performed a majority of the computations (such as graphics rendering), our software runs independently on off-the-shelf PDAs - eliminating the need for an expensive infractructure.
The Invisible Train is a mobile, collaborative multi-user Augmented Reality (AR) game, in which players control virtual trains on a real wooden miniature railroad track. These virtual trains are only visible to players through their PDA's video see-through display as they don't exist in the physical world. This type of user interface is commonly called the "magic lens metaphor".
Players can interact with the game environment by operating track switches and adjusting the speed of their virtual trains. The current state of the game is synchronized between all participants via wireless networking. The common goal of the game is to prevent the virtual trains from colliding.
The success of the Invisible Train installation illustrates the advantages of our Studierstube software framework, a component-based system architecture that has been designed to accelerate the task of developing and deploying collaborative Augmented Reality applications on handheld devices.
Why Handheld Augmented Reality?
Augmented Reality (AR) can naturally complement mobile computing on wearable devices by providing an intuitive interface to a three-dimensional information space embedded within physical reality. However, prior work on mobile Augmented Reality has almost exclusively been undertaken with traditional "backpack"-systems that consist of a notebook computer, an HMD, cameras and additional supporting hardware. Although these systems work well within a constrained laboratory environment, they fail to fulfill several usability criteria to be rapidly deployed to inexperienced users, as they are expensive, cumbersome and require high level of expertise.
Since the early experiments in Mobile Augmented Reality, a variety of highly portable consumer devices with versatile computing capabilities has emerged. We believe that handheld computers, mobile phones and personal digital assistants have the potential to introduce Augmented Reality to large audiences outside of a constrained laboratory environment. The relative affordability of devices that are capable of running our software framework opens up new possibilities for experimenting with massively multi-user application scenarios - thereby bringing us closer to the goal of "AR anytime, anywhere".
Every 10 years?
Cooper first cellular mobile phone in 1973
In simple terms, Moore’s Law states that the number of transistors that can be packed on an integrated electronic circuit doubles approximately every 2 years
(ftp://download.intel.com/research/silicon/moorespaper.pdf
) enabling a size: price: performance ratio of smaller, cheaper and more powerful micro electronics. Law of Disruption states that “social, political, and economic systems change incrementally, but technology changes exponentially
Metcalfe’s Law Value of a network increases proportionally with the square of the number of connections
The goal of the Smart Dust project is to build a self-contained, millimeter-scale sensing and communication platform for a massively distributed sensor network. This device will be around the size of a grain of sand and will contain sensors, computational ability, bi-directional wireless communications, and a power supply, while being inexpensive enough to deploy by the hundreds. The science and engineering goal of the project is to build a complete, complex system in a tiny volume using state-of-the art technologies (as opposed to futuristic technologies), which will require evolutionary and revolutionary advances in integration, miniaturization, and energy management. We forsee many applications for this technology:
Weather/seismological monitoring on Mars
Internal spacecraft monitoring
Land/space comm. networks
Chemical/biological sensors
Weapons stockpile monitoring
Defense-related sensor networks
Inventory Control
Product quality monitoring
Smart office spaces
Sports - sailing, balls
For more information, see the main Smart Dust page at http://robotics.eecs.berkeley.edu/~pister/SmartDust and read our publications (see navigation button above).
Brief description of the operation of the mote:
The Smart Dust mote is run by a microcontroller that not only determines the tasks performed by the mote, but controls power to the various components of the system to conserve energy. Periodically the microcontroller gets a reading from one of the sensors, which measure one of a number of physical or chemical stimuli such as temperature, ambient light, vibration, acceleration, or air pressure, processes the data, and stores it in memory. It also occasionally turns on the optical receiver to see if anyone is trying to communicate with it. This communication may include new programs or messages from other motes. In response to a message or upon its own initiative the microcontroller will use the corner cube retroreflector or laser to transmit sensor data or a message to a base station or another mote.
Longer description of the operation of the mote:
The primary constraint in the design of the Smart Dust motes is volume, which in turn puts a severe constraint on energy since we do not have much room for batteries or large solar cells. Thus, the motes must operate efficiently and conserve energy whenever possible. Most of the time, the majority of the mote is powered off with only a clock and a few timers running. When a timer expires, it powers up a part of the mote to carry out a job, then powers off. A few of the timers control the sensors that measure one of a number of physical or chemical stimuli such as temperature, ambient light, vibration, acceleration, or air pressure. When one of these timers expires, it powers up the corresponding sensor, takes a sample, and converts it to a digital word. If the data is interesting, it may either be stored directly in the SRAM or the microcontroller is powered up to perform more complex operations with it. When this task is complete, everything is again powered down and the timer begins counting again.
Another timer controls the receiver. When that timer expires, the receiver powers up and looks for an incoming packet. If it doesn't see one after a certain length of time, it is powered down again. The mote can receive several types of packets, including ones that are new program code that is stored in the program memory. This allows the user to change the behavior of the mote remotely. Packets may also include messages from the base station or other motes. When one of these is received, the microcontroller is powered up and used to interpret the contents of the message. The message may tell the mote to do something in particular, or it may be a message that is just being passed from one mote to another on its way to a particular destination. In response to a message or to another timer expiring, the microcontroller will assemble a packet containing sensor data or a message and transmit it using either the corner cube retroreflector or the laser diode, depending on which it has. The corner cube retroreflector transmits information just by moving a mirror and thus changing the reflection of a laser beam from the base station. This technique is substantially more energy efficient than actually generating some radiation. With the laser diode and a set of beam scanning mirrors, we can transmit data in any direction desired, allowing the mote to communicate with other Smart Dust motes.
The U.S. output of new engineers raise concerns over America’s ability to compete over the long run. The U.S. is producing less than a third of the number of engineers as China and less than half the number as Europe.
Electrical and electronic engineers represent a third to a half of all engineers hired by the semiconductor industry. In 1993, U.S. universities granted 17,588 BS EE degrees; but only 13,031 in 2002. (Engineering Workforce Commission)
The NSF reports that in 39% of engineering masters degrees (in 2000) and 61% of PhD engineering degrees (in 2001) went to foreign students. The NSF also reports that of the 11,500 foreign engineering doctoral recipients from U.S. universities, only 55% had firm plans to stay – i.e. a post doctoral research appointment or firm employment in the U.S. (1998-2001).
Electrical engineering is the semiconductor industry’s largest engineer employment category. The Engineering Workforce Commission report that in 2001, 9.7% of Bachelors, 51.5% of Masters, and 59.7% of PhD EE graduates were foreign students.
In 1999, Asia alone accounted for more than 49 percent of all science and engineering degrees granted worldwide, Europe 32 percent, and North America 10 percent. In that same year, China produced 195,354 engineers, the United States only 60,914.
Fewer U.S. citizens are in a position to pursue engineering degrees due to U.S. K-12 students’ science and math literacy scores being below those in other countries. The Trends in International Math and Science Study Survey (TIMSS) is a comprehensive study comparing science and math achievement for 4th, 8th and 12th grade students in 34 nations. In 1999 TIMSS found that 8th grad students in Singapore, Korea, Taiwan, Japan, Canada, Australia, Hungary and Finland scored significantly above their U.S. counterparts in both math and science.
The U.S. output of new engineers raise concerns over America’s ability to compete over the long run. The U.S. is producing less than a third of the number of engineers as China and less than half the number as Europe.
Electrical and electronic engineers represent a third to a half of all engineers hired by the semiconductor industry. In 1993, U.S. universities granted 17,588 BS EE degrees; but only 13,031 in 2002. (Engineering Workforce Commission)
The NSF reports that in 39% of engineering masters degrees (in 2000) and 61% of PhD engineering degrees (in 2001) went to foreign students. The NSF also reports that of the 11,500 foreign engineering doctoral recipients from U.S. universities, only 55% had firm plans to stay – i.e. a post doctoral research appointment or firm employment in the U.S. (1998-2001).
Electrical engineering is the semiconductor industry’s largest engineer employment category. The Engineering Workforce Commission report that in 2001, 9.7% of Bachelors, 51.5% of Masters, and 59.7% of PhD EE graduates were foreign students.
In 1999, Asia alone accounted for more than 49 percent of all science and engineering degrees granted worldwide, Europe 32 percent, and North America 10 percent. In that same year, China produced 195,354 engineers, the United States only 60,914.
Fewer U.S. citizens are in a position to pursue engineering degrees due to U.S. K-12 students’ science and math literacy scores being below those in other countries. The Trends in International Math and Science Study Survey (TIMSS) is a comprehensive study comparing science and math achievement for 4th, 8th and 12th grade students in 34 nations. In 1999 TIMSS found that 8th grad students in Singapore, Korea, Taiwan, Japan, Canada, Australia, Hungary and Finland scored significantly above their U.S. counterparts in both math and science.
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America No. 1? America by the numbers by Michael Ventura 02/03/05 "ICH" - - No concept lies more firmly embedded in our national character than the notion that the USA is "No. 1," "the greatest." Our broadcast media are, in essence, continuous advertisements for the brand name "America Is No. 1." Any office seeker saying otherwise would be committing political suicide. In fact, anyone saying otherwise will be labeled "un-American." We're an "empire," ain't we? Sure we are. An empire without a manufacturing base. An empire that must borrow $2 billion a day from its competitors in order to function. Yet the delusion is ineradicable. We're No. 1. Well...this is the country you really live in: * The United States is 49th in the world in literacy (the New York Times, Dec. 12, 2004). * The United States ranked 28th out of 40 countries in mathematical literacy (NYT, Dec. 12, 2004). * Twenty percent of Americans think the sun orbits the earth. Seventeen percent believe the earth revolves around the sun once a day (The Week, Jan. 7, 2005). * "The International Adult Literacy Survey...found that Americans with less than nine years of education 'score worse than virtually all of the other countries'" (Jeremy Rifkin's superbly documented book The European Dream: How Europe's Vision of the Future Is Quietly Eclipsing the American Dream, p.78). * Our workers are so ignorant and lack so many basic skills that American businesses spend $30 billion a year on remedial training (NYT, Dec. 12, 2004). No wonder they relocate elsewhere! * "The European Union leads the U.S. in...the number of science and engineering graduates; public research and development (R&D) expenditures; and new capital raised" (The European Dream, p.70). * "Europe surpassed the United States in the mid-1990s as the largest producer of scientific literature" (The European Dream, p.70). * Nevertheless, Congress cut funds to the National Science Foundation. The agency will issue 1,000 fewer research grants this year (NYT, Dec. 21, 2004). * Foreign applications to U.S. grad schools declined 28 percent last year. Foreign student enrollment on all levels fell for the first time in three decades, but increased greatly in Europe and China. Last year Chinese grad-school graduates in the U.S. dropped 56 percent, Indians 51 percent, South Koreans 28 percent (NYT, Dec. 21, 2004). We're not the place to be anymore. * The World Health Organization "ranked the countries of the world in terms of overall health performance, and the U.S. [was]...37th." In the fairness of health care, we're 54th. "The irony is that the United States spends more per capita for health care than any other nation in the world" (The European Dream, pp.79-80). Pay more, get lots, lots less. * "The U.S. and South Africa are the only two developed countries in the world that do not provide health care for all their citizens" (The European Dream, p.80). Excuse me, but since when is South Africa a "developed" country? Anyway, that's the company we're keeping. * Lack of health insurance coverage causes 18,000 unnecessary American deaths a year. (That's six times the number of people killed on 9/11.) (NYT, Jan. 12, 2005.) * "U.S. childhood poverty now ranks 22nd, or second to last, among the developed nations. Only Mexico scores lower" (The European Dream, p.81). Been to Mexico lately? Does it look "developed" to you? Yet it's the only "developed" country to score lower in childhood poverty. * Twelve million American families--more than 10 percent of all U.S. households--"continue to struggle, and not always successfully, to feed themselves." Families that "had members who actually went hungry at some point last year" numbered 3.9 million (NYT, Nov. 22, 2004). * The United States is 41st in the world in infant mortality. Cuba scores higher (NYT, Jan. 12, 2005). * Women are 70 percent more likely to die in childbirth in America than in Europe (NYT, Jan. 12, 2005). * The leading cause of death of pregnant women in this country is murder (CNN, Dec. 14, 2004). * "Of the 20 most developed countries in the world, the U.S. was dead last in the growth rate of total compensation to its workforce in the 1980s.... In the 1990s, the U.S. average compensation growth rate grew only slightly, at an annual rate of about 0.1 percent" (The European Dream, p.39). Yet Americans work longer hours per year than any other industrialized country, and get less vacation time. * "Sixty-one of the 140 biggest companies on the Global Fortune 500 rankings are European, while only 50 are U.S. companies" (The European Dream, p.66). "In a recent survey of the world's 50 best companies, conducted by Global Finance, all but one were European" (The European Dream, p.69). * "Fourteen of the 20 largest commercial banks in the world today are European.... In the chemical industry, the European company BASF is the world's leader, and three of the top six players are European. In engineering and construction, three of the top five companies are European.... The two others are Japanese. Not a single American engineering and construction company is included among the world's top nine competitors. In food and consumer products, Nestlé and Unilever, two European giants, rank first and second, respectively, in the world. In the food and drugstore retail trade, two European companies...are first and second, and European companies make up five of the top ten. Only four U.S. companies are on the list" (The European Dream, p.68). * The United States has lost 1.3 million jobs to China in the last decade (CNN, Jan. 12, 2005). * U.S. employers eliminated 1 million jobs in 2004 (The Week, Jan. 14, 2005). * Three million six hundred thousand Americans ran out of unemployment insurance last year; 1.8 million--one in five--unemployed workers are jobless for more than six months (NYT, Jan. 9, 2005). * Japan, China, Taiwan, and South Korea hold 40 percent of our government debt. (That's why we talk nice to them.) "By helping keep mortgage rates from rising, China has come to play an enormous and little-noticed role in sustaining the American housing boom" (NYT, Dec. 4, 2004). Read that twice. We owe our housing boom to China, because they want us to keep buying all that stuff they manufacture. * Sometime in the next 10 years Brazil will probably pass the U.S. as the world's largest agricultural producer. Brazil is now the world's largest exporter of chickens, orange juice, sugar, coffee, and tobacco. Last year, Brazil passed the U.S. as the world's largest beef producer. (Hear that, you poor deluded cowboys?) As a result, while we bear record trade deficits, Brazil boasts a $30 billion trade surplus (NYT, Dec. 12, 2004). * As of last June, the U.S. imported more food than it exported (NYT, Dec. 12, 2004). * Bush: 62,027,582 votes. Kerry: 59,026,003 votes. Number of eligible voters who didn't show up: 79,279,000 (NYT, Dec. 26, 2004). That's more than a third. Way more. If more than a third of Iraqis don't show for their election, no country in the world will think that election legitimate. * One-third of all U.S. children are born out of wedlock. One-half of all U.S. children will live in a one-parent house (CNN, Dec. 10, 2004). * "Americans are now spending more money on gambling than on movies, videos, DVDs, music, and books combined" (The European Dream, p.28). * "Nearly one out of four Americans [believe] that using violence to get what they want is acceptable" (The European Dream, p.32). * Forty-three percent of Americans think torture is sometimes justified, according to a PEW Poll (Associated Press, Aug. 19, 2004). * "Nearly 900,000 children were abused or neglected in 2002, the last year for which such data are available" (USA Today, Dec. 21, 2004). * "The International Association of Chiefs of Police said that cuts by the [Bush] administration in federal aid to local police agencies have left the nation more vulnerable than ever" (USA Today, Nov. 17, 2004). No. 1? In most important categories we're not even in the Top 10 anymore. Not even close. The USA is "No. 1" in nothing but weaponry, consumer spending, debt, and delusion. Reprinted from the Austin Chronicle. www.citypages.com/databank/26/1264/article12985.asp
EMBARGOED UNTIL: 12:01 A.M., EST, MARCH 18, 2004 (THURSDAY) Mike BergmanCB04-44Public Information Office (301) 763-3030/457-3670 (fax)Summary tables(301) 457-1037 (TDD) e-mail: [email_address] More Diversity, Slower Growth
Census Bureau Projects Tripling of Hispanic andAsian Populations in 50 Years; Non-Hispanic WhitesMay Drop To Half of Total Population The nation’s Hispanic and Asian populations would triple over the next half century and non-Hispanic whites would represent about one-half of the total population by 2050, according to interim population projections released today by the U.S. Census Bureau. Overall, the country’s population would continue to grow, increasing from 282.1 million in 2000 to 419.9 million in 2050. However, after 2030 the rate of increase might be the slowest since the Great Depression of the 1930s as the size of the “baby boom” population continues to decline. Still, the nation’s projected 49 percent population increase during the next 50 years would be in sharp contrast to most European countries, whose populations are expected to decline by mid-century. (Statements on race groups in this news release are limited to the single-race white, black, and Asian populations and do not cover other single-race groups or the population of two or more races.) The federal government treats Hispanic origin and race as distinct concepts. (See U.S. Census Bureau Guidance on the Presentation and Comparison of Race and Hispanic Origin Data.) From 2000 to 2050, the non-Hispanic, white population would increase from 195.7 million to 210.3 million, an increase of 14.6 million or 7 percent. This group is projected to actually lose population in the 2040s and would comprise just 50.1 percent of the total population in 2050, compared with 69.4 percent in 2000. (See Table 1 [Excel].) Nearly 67 million people of Hispanic origin (who may be of any race) would be added to the nation’s population between 2000 and 2050. Their numbers are projected to grow from 35.6 million to 102.6 million, an increase of 188 percent. Their share of the nation’s population would nearly double, from 12.6 percent to 24.4 percent. The Asian population is projected to grow 213 percent, from 10.7 million to 33.4 million. Their share of the nation’s population would double, from 3.8 percent to 8 percent. The black population is projected to rise from 35.8 million to 61.4 million in 2050, an increase of about 26 million or 71 percent. That would raise their share of the country’s population from 12.7 percent to 14.6 percent. The country’s population also is expected to become older. Childbearing rates are expected to remain low while baby-boomers — people born between 1946 and 1964 — begin to turn 65 in 2011. By 2030, about 1-in-5 people would be 65 or over. The female population is projected to continue to outnumber the male population, going from a numerical difference of 5.3 million in 2000 (143.7 million females and 138.4 million males) to 6.9 million (213.4 million females and 206.5 million males) by mid-century. (See Table 2 [Excel].) The projections for the resident population of the United States are by age, sex, race (including the categories white, black, Asian and “all other races”) and Hispanic origin. They are based on Census 2000 results and assumptions about future childbearing, mortality and international migration.
Council on Competitiveness, National Innovation Initiative Samuel Palmisano (CEO, IBM): So we're trying to get younger people earlier on in their lives excited about technology. There are multiple forms of engineering disciplines, so we're not trying to steer them into computer science or a program that they might find uninteresting. After school, weekend and summer game builder programs. Wayne Clough (President, Georgia Institute of Technology): We created a major called human/computer interaction. And what does that do? It draws in a lot of women and minorities -- which computer science doesn't. (Business Week: 10.11.2004)
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LATIN RENISSANCE – George Cisneros
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Defense, Aerospace, Homeland Security, Information Technology, Microelectronics, Modeling, Simulation and Training, Video Games, Optics/Photonics, New Media/Film and Medical Technologies5
Korean “Information Society” development date back to the 1980’s, however, Information, Communication and Technology (ICT) use and production in the past has been associated with equipment, rather than knowledge-intensive production and services such as software, biotechnology, new media and information services (Hwang, Hur and Choi, 2004, p.11) (Korea National Computerization Agency, 2004, p.7) (Wong, 2004, p.1). A new phase of public-private partnership including programs such as “Cyber Korea 21”, “e-Korea Vision 2006”, and “Broadband IT KOREA VISION 2007” aims to make Korea the leading exporter of knowledge-intensive production in the world (Korea National Computerization Agency, 2004, p.7) (The Korea Times in Swiss Talents, 2004, p.1). This new phase is marked by a transition to integrating convergent information services into the fabric of society, industry, government and education; pioneering the development of technologies, products, services and knowledge-based exports; and supporting the formation and development of new convergence companies.
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Defense, Aerospace, Homeland Security, Information Technology, Microelectronics, Modeling, Simulation and Training, Video Games, Optics/Photonics, New Media/Film and Medical Technologies5
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Defense, Aerospace, Homeland Security, Information Technology, Microelectronics, Modeling, Simulation and Training, Video Games, Optics/Photonics, New Media/Film and Medical Technologies5
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Defense, Aerospace, Homeland Security, Information Technology, Microelectronics, Modeling, Simulation and Training, Video Games, Optics/Photonics, New Media/Film and Medical Technologies5
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The dynamic giving rise to new US-based convergence technopoleis can be attributed to:Shifts in Federal Spending and Policy. Post September 11, 2001 increases in mission-oriented defense spending; establishment and funding of the Department of Homeland Security and homeland security-motivated R&D; and shifts in R&D policy and spending including the renewed commitment to NASA and the Moon-Mars mission. Shifts in State Tax Incentives and Policy. Aggressive State tax incentives and policies encouraging the establishment and growth of high-tech entrepreneurial start-ups, R&D, venture funding, corporate relocation and the outlet of intellectual property from public- universities and R&D labs to the private-sector (especially, technology transfer encouraging the establishment of new high tech firms).
LATIN RENISSANCE – George Cisneros
The dynamic giving rise to US and Global convergence technopoleis can be attributed to:Shifts in Regional Cooperation, Planning and Competition. A bias for action and cooperation among regional economic actors including state policy makers, university presidents, corporate CEOs, economic development officials, workforce organizations and entrepreneurs leading to the rise of Metropolitan Service Areas (MSA) and large geographies of coordination across traditional municipal, corporate and research boundaries. Intersection of Art and Science. In San Diego County (MSA), Central Florida and the Washington DC (MSA) there is a significant focus on the intersection of art-design-engineering-science disciplines and related industries (gaming, aerospace, telecom, wireless, etc). One example is the emerging learning games space which intersects at the boundaries of industries and disciplines related to Modeling, Simulation and Training (MS&T), Video Games, Educational Technology, Human Performance Improvement, Software and Computer Networking. This is one example
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The dynamic giving rise to new US-based convergence technopoleis can be attributed to:Shifts in Federal Spending and Policy. Post September 11, 2001 increases in mission-oriented defense spending; establishment and funding of the Department of Homeland Security and homeland security-motivated R&D; and shifts in R&D policy and spending including the renewed commitment to NASA and the Moon-Mars mission. Shifts in State Tax Incentives and Policy. Aggressive State tax incentives and policies encouraging the establishment and growth of high-tech entrepreneurial start-ups, R&D, venture funding, corporate relocation and the outlet of intellectual property from public- universities and R&D labs to the private-sector (especially, technology transfer encouraging the establishment of new high tech firms).
LATIN RENISSANCE – George Cisneros
The dynamic giving rise to US and Global convergence technopoleis can be attributed to:Shifts in Regional Cooperation, Planning and Competition. A bias for action and cooperation among regional economic actors including state policy makers, university presidents, corporate CEOs, economic development officials, workforce organizations and entrepreneurs leading to the rise of Metropolitan Service Areas (MSA) and large geographies of coordination across traditional municipal, corporate and research boundaries. Intersection of Art and Science. In San Diego County (MSA), Central Florida and the Washington DC (MSA) there is a significant focus on the intersection of art-design-engineering-science disciplines and related industries (gaming, aerospace, telecom, wireless, etc). One example is the emerging learning games space which intersects at the boundaries of industries and disciplines related to Modeling, Simulation and Training (MS&T), Video Games, Educational Technology, Human Performance Improvement, Software and Computer Networking. This is one example
Provide small communities
Novel way to use learning games
Special – business relationship between Breakaway and DOJ
Distribute to 30,000 agencies in Feb
National Incident Command Sys
NICS Training
Free video game teaches kids about world hungerBY JINNY GUDMUNDSEN
GANNETT NEWS SERVICE
Live 8, the global concerts earlier this month to fight poverty in Africa, greatly increased awareness of world hunger. But most kids don't understand how international aid organizations work to help starving people.
That's where a video game can help. "Food Force" gives kids between the ages of 8 and 13 a better understanding of how relief organizations operate.
Produced by the United Nations' World Food Programme, "Food Force" is a free Internet download at www.food-force.com.
Kids join a team of emergency aid workers to save the fictitious island of Sheylan from starvation caused by drought and civil war.
The team goes on six missions to help save the island. Each mission starts with a briefing by one of the emergency aid characters. Kids then play a hands-on game to score enough points to complete the mission. For example, in the first mission, kids pilot a helicopter by using the computer mouse. Time is limited, and youngsters earn points by locating refugees. After piloting, the Food Force character returns to evaluate the kids' performance and uses an accompanying video that shows the program in action to make the whole process seem realistic.
The additional missions cleverly use games to demonstrate how emergency aid teams acquire food, make food packs, deliver food and establish long-term food supplies.
When kids complete all six missions, they can upload their cumulative score to an international database found on the Food Force Web site. The Web site also provides information about how kids can help fight hunger, and it allows them to explore more about the World Food Programme. Teachers also will find lesson plans that incorporate the game.
The program effectively reaches 'tweens and teens with 3-D graphics and characters that resemble those in popular commercial titles, helping bring closer to home the problems of world hunger, which are most often thousands of miles away.
The game is best for ages 8 to 13. It scores a perfect five stars.
For more information, see www.food-force.com, United Nations' World Food Programme, offering free downloadable program for Windows and Macintosh.
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“Although we often hear about the reasons kids should not play video games, there is, indeed, a positive correlation between video gaming and increased hand-eye coordination, reaction time, spatial visualization, neuro-psychological tests, visual attentiveness and mental rotation,” says Dr. Rosser. “Those are all skills that are required to be a successful surgeon.”A study conducted at Beth Israel Medical Center by Dr. Rosser, found a significant correlation between video game experience and proficiency at laparoscopic surgery. According to the study, surgeons who currently play or previously played video games had a 37 percent reduction in errors and accomplish laparoscopic surgical tasks 27 percent quicker. “The studies confirm what some physicians have long suspected – video games can be natural teachers,” says Dr. Mogel. “However, this probably has been unintended by the game designers.”
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The careers are ordered by priority.
Design-related fields are at the top fo the chart for both females and males.
Males in middle school are described in the literature as being more likely to have interests that could be labeled “fantasy careers’ or “glamour careers.”
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supported 5 children by peddling stolen firewood and selling watered-down milk. His notorious business practices eventually earned his San Antonio neighborhood the nickname Beanville.
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Four Spanish frontier missions, part of a colonization system that stretched across the Spanish Southwest in the 17th, 18th, 19th centuries, are preserved here.
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Feb 1910 arrival
March 1910 First Flight
in charge of the first airplane owned and used in the service of the U.S. Army
He was the only pilot, navigator, instructor, observer and commander in the heavier-than-air division of the U.S. Army from November 1909 to April 1911.
Mexican Punitive Expedition: Poncho Villa (March to August 1916)
Taking part in Brig. Gen. John J. Pershing 1916 Mexican expedition was a learning experience for the U. S. Army's first air arm--mainly in respect to its own deficiencies.
designed and used the first radio receiving set ever used in a military airplane
Invented Wheels and Seat belt among other things
first airplane reconnaissance flight
He advocated a separate air force and became chief of the Army Air Corps
Mexican Punitive Expedition (March to August 1916) with General John J. Pershing, the commander of the expedition.
Foulois was slight of stature, combative, outspoken, often impetuous, and seldom diplomatic. Despite a stormy career centered on the fight for an independent air force, he was appointed Chief of the Air Corps in 1931. Along the way, especially as chief, Foulois' s crusading zeal and intemperance earned him the enmity of President Franklin Roosevelt, some powerful members of Congress, and most of the War Department General Staff. When he retired in December 1935, there was no ceremony, no medal for the pioneer who had done so much for military aviation.
The Army bought the Wright aircraft; the agreement required the inventors to teach two officers to fly the machine. Benny was slated to be one of the trainees until he made disparaging remarks about the worth of dirigibles that were contrary to the official War Department view. The Army brass decided to put this outspoken little lieutenant in his place. A shocked Foulois received orders to proceed at once to an aeronautical meeting in France.
This was a heady time for the thirty-year-old lieutenant. He began modifying the plane and experimenting with ways to use it to support ground forces. He substituted wheels for the original skids and installed the first airplane seat belt after nearly being thrown out of the machine while attempting to land in gusty winds. Foulois also demonstrated the airplane's practical use in military operations by doing aerial mapping, photography, and observation of troop movements. When trouble erupted along the Mexican border, he set a cross-country distance record of 1 06 miles on March 3,1911, while on a reconnaissance flight. The same year he designed the first air-to-ground wireless system and demonstrated its practicality. The Army, however, remained unimpressed with military aviation. Its fragile plane spent more time in the repair shop than in the air.
Among the many firsts Foulois attained during his distinguished career are;
1908 First flight as a dirigible pilot
1909 First observer on an aircraft cross-country
1910 First military man to teach himself to fly
First and only military test pilot flying Old No. 1
1911 First to fly more than 100 miles non-stop
First on an operational reconnaissance flight
First to test use of radio in flight
1914 First commander of a tactical air unit (1st Aero Squadron)
First commander of the first mechanized tactical unit in the U.S. Army (1st Aero Squadron)
1916 First to use an aircraft in a combat operation (Mexico)
1918 First chief of Air Service, AEF, 1st Army
1931 First chief of Air Corps to be a military aviator
1933 First Air Corps chief to be awarded Mackay Trophy
1962 First Honorary Staff Member of Air Force Systems Command
1964 First honorary member of the Aerospace Primus Club
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Harold Clark designed Randolph in 1926 and 1927, while assigned as dispatch officer in the Kelly Field motor pool, although the War Department received the land in 1928. Having trained as an architect prior to entering the military, Lieutenant Clark sketched his ideas of a perfect "Air City" on the back of old dispatch sheets. It was, at the time, the largest construction project undertaken by the U.S. Army Corps of Engineers since the Panama Canal.
Dedication June 20, 1930
Once the site for the field was selected, a committee decided to name the base after William Millican Randolph, a native of Austin, who, during his 9-year flying career, earned a remarkable record and contributed immeasurably to the progress of aviation. On Feb. 17, 1928, while returning to his duties at Kelly, he crashed his AT-4 on takeoff from Gorman Field, Texas. Ironically, Captain Randolph was serving on the committee to select a name for the new field at the time of his death. Captain Randolph is buried at Fort Sam Houston National Cemetery.
Randolph Field was dedicated June 20, 1930, with an estimated 15,000 people in attendance and a fly-by of 233 planes, possibly the largest assembly of military aircraft in the world.
Early in 1931, the School of Aviation Medicine from Brooks Field and the first cadets from the Air Corps Flying School at Duncan Field, then a part of Kelly AFB, began relocating to Randolph.
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Tom Slick
legend among the "independents"
hands-on, impromptu deals were often brokered on street corners and over telephones.
"worked out of his hip pocket."
Quest for the Abominable Snowman, yeti and Sasquatch. Creation of a research facility near Loch Ness.
Life made for the movies… Nicholas Cage?
Tom Slick
Tom Slick, born in 1916, was a San Antonio oil millionaire who used his fortune to further the causes of scientific research and peace throughout the world. He founded the Southwest Research Institute, the Southwest Foundation for Research and Education, the Institute of Inventive Research and the Mind Science Foundation. He was also a cryptozoologist and helped finance expeditions searching for the Yeti. There is a Tom Slick Professorship of World Peace at the University of Texas, which also publishes a Tom Slick World Peace Series of books. In 1958 he wrote the book Permanent Peace, which said in the dedication, "To that beautiful new world to emerge when the spectre of war has been banished forever - when the life blood now draining into armaments will, transfused into the bloodstream of the world, bring about unbelievable new progress, prosperity, health and happiness." He died in a airplane crash in 1962.
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“This Nation has tossed its cap over the wall of space, and we have no choice but to follow it.”
--John F. Kennedy,
Nov 21, 1963
Shortly after its creation in 1958, NASA was greatly in need of medical expertise relating to the effects of the space environment on man. With the School of Aviation Medicine (SAM) [later School of Aerospace Medicine (SAM)] moving to Brooks Air Force Base (AFB) in 1959, NASA hired SAM to perform research and experiments relating to medical issues for manned spaceflight. At this time, the Department of Space Medicine at SAM was focused on a set of ambitious research goals relating to the protection of astronauts from the harsh space environment. Initially on a contract basis, SAM performed three projects for NASA.
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Kelly AFB
http://proft.50megs.com/kelly.html#jet
http://proft.50megs.com/kelly.html#jet
THE JET AGE</font> </b>
<p>As the Air Force moved through its first decade of independence, its
aircraft, engines, accessories, and support equipment became increasingly
sophisticated and complex, requiring use of new technologies and innovative
programs to meet the challenges of the future.
<p>By 1951, the <a href="javascript:imageWindow('B-36','b-36-kh.jpg',693,444)">Convair B-36</a> began arriving in ever-increasing numbers at Kelly.  With its powerful R4360 engines, the B-36 rapidly took the place
of the B-29.  Nicknamed the "Peacekeeper," the B-36 was radical in its design;
its six pusher engines gave it a top speed of over 400 miles per hour,
and it was the first American bomber capable of reaching any target on
the globe.
<p>R4360 engines also powered the <a href="javascript:imageWindow('XC-99','xc-99-kh.jpg',619,180)">XC-99</a>.  Convair built this one-and-only transport in 1947 to use the technology of the B-36 more effectively.  As
the large cargo plane to date, the XC-99 set many world records between
1953 and 1955, before the Air Force decided it did not need large transport
planes.  The longest flight - 12,000 miles to Rhein Main Air Base in Germany
- began on August 13 1953.  Carrying the 61,000 pounds of vital cargo, it
flew to Germany via Bermuda and the Azores and returned a week later carrying
another 62,000 pounds.  Every place the <a href="http://www.40th-bomb-wing.com/gallery6.html" target="_blank">XC-99</a> landed, newspaper, radio,
and television reporters were there to convey to the public the excitement
of the spectacular flight.
<p>Another record-breaking flight took place during May 1955.  The XC-99
was put to the test in support of PROJECT DEWLINE.  In conjunction with
the Military Transport Service, the XC-99 airlifted 380,000 pounds of cargo
to Iceland from Delaware, a distance of 2,500 miles. The plane was airborne
210 hours and 41 minutes.  Some trouble was experienced, but the 31 civilian
technicians from the San Antonio depot successfully repaired the <a href="http://www.mysanantonio.com/news/metro/stories/MYSA112804.3B.xc99.9c384019.html" target="_blank">XC-99</a>
at Dover AFB.
<p>Jet engines had become extremely important to the Air Force by 1955.
The <a href="javascript:imageWindow('B-47','b-47-kh.jpg',500,278)">Boeing B-47</a> Stratojet bomber was the first full weapons system bomber.  Designed in 1945, the B-47 was powered by six General Electric J47 turbojet
engines and featured swept-back wings and tail surfaces.  Its mission was
to deliver conventional or nuclear ordnance to enemy targets.  On November
30, 1959, a B-47 bomber set a world endurance record, remaining airborne
for three days, eight hours, and eight minutes, and covering a distance
of 32,900 miles.  After relegating the bomber to reconnaissance and training
missions, the latest Stratojets were taken out of the active United States
Air Force inventory in 1966.
<p>The <a href="javascript:imageWindow('B-58','b-58-kh.jpg',440,312)">B-58 "Hustler"</a> was yet another important addition to the Air Force inventory.  As America's first supersonic bomber, it could range higher
and faster than any other bomber aircraft in the world, flying at twice
the speed of sound.  Its four J79 engines produced over 41,000 pounds of
thrust that could push the sleek bomber at more than 1,300 mph.  The first
B-58 arrived at Kelly on March 15, 1960 to be used for training maintenance
personnel for the new overhaul workload.  On May 26, 1958, SAAMA opened
the B-58 Logistics Support Management Office.  It became the forerunner
of a major area organizational realignment whereby worldwide weapons management
functions would be separated organizationally from the internal depot operations.
Responsibilities outlined for the weapon system manager included budgeting,
funding, computing requirements, and arranging for maintenance.
<p>Kelly repaired and overhauled <a href="javascript:imageWindow('B-52','b-52-kh.jpg',600,353)">B-52</a>s for over 30 years.  In the early 1960s, the B-52 was the major depot-level maintenance workload for SAAMA.
Modifications to the B-52s performed at Kelly increased the load capability
of each plane and increased the aircraft's range.  In addition, the San
Antonio shops camouflage-painted the B-52s for Southeast Asia operations.
This era in Kelly's history ended when the Air Force shifted the B-52 workload
to Oklahoma City in the spring of 1993.  The 36-year old relationship between
Kelly and the big bomber was the longest association between any Air Force
weapons system and a single ALC to that point.
<br> <a name="vietnam"></a>
<br><b><font size=+1>VIETNAM </font></b>
<p>Kelly's workload remained relatively stable until the mid-1960s, when
American efforts to prevent the fall of the South Vietnamese government
led to direct American involvement. Following the Gulf of Tonkin incident
in August 1964, all air materiel areas began supporting Southeast Asia
on a 24-hour basis.  For the next 11 years, Kelly employees were deeply
involved in supplying parts and expertise for the conflict in Southeast
Asia, working both within the United States and overseas.
<p>In May 1965, during the build-up of American forces in Vietnam, the
Logistics Command started sending teams of supply personnel to the Pacific
Air Forces.  Kelly had a lot of volunteers.  By December 31, 1965, SAAMA
had sent 11 supply teams, totaling 89 personnel, on temporary duty to Southeast
Asia to establish supply centers throughout the western Pacific, including
Vietnam.
<p>Kelly also sent maintenance teams to Southeast Asia.  The first team
consisted of six jet engine mechanics that worked in the Philippines on
J57 engines for <a href="javascript:imageWindow('F-100','f-100-kh.jpg',500,359)">F-100</a>s.  Other Kelly workers served in Vietnam on special <a href="javascript:imageWindow('F-5','f-5-kh.jpg',671,262)">F-5</a> modification teams, helped reassemble newly shipped F-5 aircraft at Bien Hoa Air Base, and assisted in the creation of an engine repair facility
at Bien Hoa.  Some workers served on rapid area maintenance supply support
or area transportation teams while others served as weapon system logistic
officers.  Those who remained in San Antonio also strove to meet the demands
for materiel and aircraft maintenance.
<p>On July 1, 1965, Kelly opened as an aerial port of embarkation to provide
though-plane cargo service to Southeast Asia.  Kelly Air Force Base personnel
processed and routed vital war material earmarked for Vietnam to the Southeast
Asian Theater.  By 1967, the pace of the United States build-up intensified.
The <a href="javascript:imageWindow('C-141','c-141-kh.jpg',600,332)">C-141 Starlifter</a> cargo aircraft began to enter the Air Force inventory in sufficient numbers to replace the aging <a href="javascript:imageWindow('C-124','c-124-kh.jpg',366,246)">C-124 Globemaster</a>.  With air
terminal modernization and the increased use of C-141 aircraft, Military
Airlift Command aircrews seldom experienced any delays at Kelly's aerial
port.
<p>On November 1, 1965, SAAMA assumed responsibility for the Air Force's
entire watercraft program.  This included all landing-type vessels, spares,
engines, and combat ships.  Other items included cargo tanks, special service
vessels, barges, small craft, dredges, rigging, and marine hardware.  Earlier
that year, on August 3, Kelly became responsible for assembly and shipment
of the necessary airfield lighting equipment to establish four semi-fixed
installations in Southeast Asia.  
<p>In August 1996, the Air Force Logistics Command established PROJECT
LOGGY SORT (LOGGY-Specialize Overseas Repair Test) to study the requirements
for repair and maintenance of United States Air Force tactical aircraft
in a combat environment in Southeast Asia.  The goal was to provide tactical
fighter units with greater mobility and flexibility.  The <br><a href="javascript:imageWindow('F-4','f-4-kh.jpg',696,400)">F-4C</a> aircraft was selected as the test vehicle because it was the most modern system
in existence and best represented planned future weapon systems.  SAAMA,
as manager for the F-4s aerospace ground equipment, accumulated, analyzed
and established base level repair restrictions on the items.
<p>Weapon systems used in Southeast Asia managed by SAAMA included <a href="javascript:imageWindow('F-102','f-102-kh.jpg',458,262)">F-102</a>, <a href="javascript:imageWindow('F-106','f-106-kh.jpg',472,212)">F-106</a>, <a href="javascript:imageWindow('A-37','a-37-kh.jpg',734,244)">A-37</a>, <a href="javascript:imageWindow('O-2','o-2-kh.jpg',465,246)">O-2</a>, and F-5 aircraft, while the major maintenance workloads
centered around aircraft engines, airfield lighting equipment, life support
system items, aerospace ground equipment, and fuels.  Specific maintenance
workloads were B-52 aircraft modifications such as the T34, T-56 and J79
engine overhaul and recoverable-aerospace item repair.
<p>The early 1970s witnessed the establishment of the Vietnamization Program,
also known as the Nixon Doctrine.  This new policy was the key to planned
reductions in the Untied States military forces in South Vietnam.  As part
of this effort, SAAMA personnel were deeply involved in the planning and
construction of an engine facility at Bien Hoa Air Base.  This assignment
began in February 1971 when the Air Force Logistics Command gave the SAAMA
the responsibility for developing complete plans and specifications for
converting an existing building at Bien Hoa Air Base into an engine overhaul
facility.
<p>One month later, the San Antonio Air Materiel Area became involved with
yet another project to provide logistics support.  On October 20,1972, SAAMA
initiated PROJECT ENHANCE PLUS, to transfer A-37, F-5, and <a href="javascript:imageWindow('T-38','t-38cap.jpg',534,482)">T-38</a> aircraft, engines, and support spares to the Republic of Vietnam to carry on the
war after American withdrawal.  Nearly every directorate at Kelly contributed
to this effort.
<p>The San Antonio Air Materiel Area set several records during this period.
In addition to the transfer of A-37s, F-5s, and T-38s, over 18.3 million
pounds of cargo were sent on 232 missions using C-141, <a href="javascript:imageWindow('C-5','c-5-kh.jpg',1096,396)">C-5</a>, <a href="javascript:imageWindow('Boeing_707','boeing-707-kh.jpg',600,480)">Boeing 707</a> and <a href="javascript:imageWindow('DC-8','dc-8-kh.jpg',450,300)">DC-8</a> aircraft.  United States Air Force Headquarters congratulated all concerned for their support in this project.  They said it was proud of the ability shown by all air logistics centers and other activities to get the job done in spite of the critical time, worldwide scope of the
operation, and the many actions which had to be completed.
<p>A year before the United States ended its involvement in Southeast Asian
hostilities; the military services began to prepare for the return of North
Vietnam-held Prisoners of War.  With the signing of the Paris Peace Accords
on January 27, 1972, "Operation Homecoming" was on. The prisoners were
flown from North Vietnam to the Joint Homecoming Reception Center at Clark
Air Base, the Philippines.  Once at Clark, the POWs were given medical checkups,
issued uniforms and personal items, and made those very important phone
calls home.  After a minimum time at Clark, the POWs flew to the United
States to be reunited with their families and to receive complete medical
and psychological evaluation and treatment.  Lackland Air Force Base and
Fort Sam Houston were designated as reception areas in San Antonio because
each had hospital facilities to handle the needs of the returning prisoners
of war.  Kelly became the reception area.  Flights bringing the former POWs
to Kelly began on February 15 1973.  Although crowds were deliberately kept
small, the occasion was full of joy.  The 11 flights that arrived at Kelly
carried 20 Air Force and 12 Army men.  Kelly Air Force Base took great pride
in welcoming home the brave men who had spent years in captivity.
<p> <a name="changes"></a>
<br> <font size=+1><b>CHANGES</b></font><p>
In 1974, San Antonio Air Materiel Area changed its name to the San Antonio
Air Logistics Center, but the dedication and support to the Air Force mission
remained the same.
<p>The <a href="javascript:imageWindow('C-5A','c-5a-kh.jpg',850,620)">C-5A Galaxy</a>, the world's largest aircraft, entered the Air Force inventory on October 8, 1965.  San Antonio Air Materiel Area had both management
and repair responsibility for the giant transport and its <a href="javascript:imageWindow('TF-39_Engine','tf-39-kh.jpg',470,388)">TF39 engine</a>.  Weighing about 350 tons, the aircraft can transport 98 percent of equipment
issued to an Army division, including the 100,000 pound M-1 tank, self-propelled
artillery equipment, missiles, and helicopters.  On its initial visit to
Kelly on January 31, 1970, prominent figures as well as public spectators
greeted the C-5A.  Since then, the C-5A has undergone engine and aircraft
repairs and modifications.  The largest modification program ever managed
by an Air Logistics Center was the program to strengthen the wings on the
C-5A.  The project was a result of a fatigue testing which indicated that
the C-5A wing had an operational life of only 8,000 mission hours.  The
goal, therefore, was to reach a 30,000-hour service-life by replacing the
center, outer, and inner wing boxes.  On May 14, 1980, a prototype-modified
aircraft was ready for flight test.  Two months later, a scientific advisory
board met to review the results and recommended a continuation of the wing
modification program.
<p>As good as the C-5A was, Lockheed and the Air Force began plans to incorporate
reliability and maintainability factors into the large cargo plane, producing
the <a href="javascript:imageWindow('C-5B','c-5b-kh.jpg',792,524)">C-5B</a>.  The Galaxy "B" fleet added 7.5 million cargo tons per day to
the United States military strategic airlift capability.
<p>With the transfer of B-52 repair and overhaul to Oklahoma City in 1993,
Kelly's workers shifted their attention to keeping the T-38 jet trainers
of Air Education and Training Command ready to fly.  This workload moved
to Kelly in the spring of 1993.
<p>The F100 engine became a major engine workload for Kelly in the late
1970s as <a href="javascript:imageWindow('F-16','f-16-kh.jpg',550,311)">F-16</a>s and <br><a href="javascript:imageWindow('F-15','f-15-kh.jpg',600,364)">F-15</a>s entered the Air Force inventory in increasing numbers.  Air Force officials predicted the F100 to be Kelly's largest overhaul workload since the Pratt and Whitney R4360 engine, which dominated overhaul
activities at the base for more than a decade.  The San Antonio Air Materiel
Area was designated as the Specialized Repair Activity for the F100 in
1969.
<p>The first <a href="javascript:imageWindow('F-100_Engine','f100.jpg',753,600)">F100 engine</a> arrived at the SA-ALC on August 9, 1974.  Primarily
used as a trainer, this first engine was also used as a prototype repair
engine to determine the adequacy of planning documents, technical data,
tools and equipment.  Management and maintenance of the F100 is complicated
by the unique design of the engine.  The engine is divided into five modules.
Defective modules could be removed and replaced with spares to return the
engine to service more rapidly.  Another unique aspect of the F100 engine
is the "on-condition" maintenance feature.  This occurs if an inspection
team determines that the rest of the modules are in good working order.
Only the affected part would be overhauled and the rest of the engine would
be left alone.  In addition, time between overhauls is measured in terms
of cycles, or throttling up and down action, rather than flight hours.
<p>The San Antonio Air Logistics Center also managed the new <a href="javascript:imageWindow('C-17','c-17-kh.jpg',576,431)">C-17</a>, developed by the Douglas Aircraft Company.  This advanced aircraft is a rugged, reliable,
modern airlifter designed to meet requirements established jointly by the
Army, Marines, and the Air Force.  The C-17 provides the United States combat
commanders with the increased mobility to get to the battle sooner-and
to win.  Kelly's involvement in the C-17 program was further strengthened
when Air Force Logistics Command named it the source of repair for the
airframe.  Logistics support responsibility for the aircraft was made virtually
complete in March 1985 when AFLC gave SA-ALC management and repair responsibility
for the C-17 engines, the F117.
<p>Americans have always looked to the future, but the future of Kelly's
involvement in space have been a "now" responsibility for more than 25
years.  In August of 1962, SAAMA “loaned” the National Aeronautics and Space
Administration (NASA) six aircraft - two F-102s, two TF102s and two <a href="javascript:imageWindow('T-33','t-33-kh.jpg',461,219)">T33</a>s - so the astronauts at the Houston Manned Spaceflight Center could maintain
their flying proficiency.  Two years later, Directorate of Maintenance workers
built three Apollo capsule trainers for NASA.  And Kelly's Directorate of
Aerospace Fuels has supplied NASA with the required liquid propellants
from the very beginning of the Space Administration's push into space.  
<p>On November 16, 1973, the Directorate of Aerospace Fuels provided propellants
support to the last of the Skylab space program launches.  In March 1979,
the <a href="javascript:imageWindow('747+Shuttle','747-shuttle-kh.jpg',623,500)">space shuttle "Columbia" perched atop a Boeing 747</a> arrived at Kelly Air Force Base for the first time for a refueling stop on its way to Kennedy
Space Center in Florida.  This was Kelly's most dramatic and visible participation
in support of the space program.
<p>Kelly is home to many other unique organizations.  On June 16, 1958,
prime maintenance responsibility for all items within the Air Force's Nuclear
Weapons Program were assigned to SAAMA.  The <a href="javascript:imageWindow('Bldg_1420','bldg1420.jpg',500,333)">Directorate of Special Weapons</a>
remains the only logistical nuclear ordnance manager in the Air Force.
It managed all United States Air Force nuclear weapon equipment such as
missile re-entry systems, warheads, bomb arming and fusing devices, tools,
and tests handling and training equipment.
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Lieutenant Colonel Edward White
During the third revolution, he carried out the first extra vehicular activity in the United States manned space flight program. He was outside Gemini 4 for 21 minutes, and became the first man to control himself in space during EVA with a maneuvering unit.
he was named as one of the pilots of the AS-204 mission, the first 3-man Apollo flight.
Lieutenant Colonel White died on January 26, 1967, in the Apollo spacecraft flash fire during a launch pad test at Kennedy Space Center, Florida.
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Gordon Peterson wrote ARC' innovate network operating system.
John Murphy, ARCNET chief architect, continues to be amazed about the diverse application for the technology he developed.
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http://www.excimernet.com/MPRKbody.htm
The discoverer of a vision-enhancing
technique used in LASIK surgery
Among his more important contributions
was his discovery of photo refractive
kertectomy (PRK), a technique
that uses laser energy to resurface the
eyeís cornea to produce improved vision.
U.S. Air Force School of Aerospace
Medicine's Radiation Sciences Division.
During his career-long tour here
Taboada pioneered the development of
special devices, made several important
scientific discoveries and advanced
scientific understanding of
concepts with futuristic applications.
Among his more important contributions
was his discovery of photo refractive
kertectomy (PRK), a technique
that uses laser energy to resurface the
eye's cornea to produce improved vision.
Taboada later developed a one-of-akind
instrument (patent pending) to
measure the haze or loss of transparency
that develops in the cornea after
a PRK procedure.
Among Air Force research discoveries
Taboada made that will be the
focus of his entrepreneurial investigations
is the fascinating future possibility
of creating "bionic" human vision.
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The Palmaz Stent®
The stent has dropped the occurrence of death due to heart disease from nearly 500 per every 100,000 Americans in 1970 to less than 200 per every 100,000 today. IP Worldwide magazine recently named the Palmaz Stent® among the 10 patents that have changed the world. Each year, at least 2 million stents are placed in patients worldwide.
Dr. Palmaz is a professor of radiology at the Health Science Center.one of the world's most successful medical devices
http://www.uthscsa.edu/mission/article.asp?id=73
Magazine ranks Palmaz stent among '10 Patents that Changed World'
by Amanda Gallagher
The revolutionary Palmaz® stent, invented by Julio Palmaz, M.D., is listed as one of the '10 Patents That Changed the World' in the August issue of IP Worldwide magazine. Stents are now used in 2 million patients annually to repair clogged arteries near the heart and elsewhere in the body.Dr. Palmaz gained a U.S. patent on the stent in April 1988. The U.S. Food and Drug Administration granted approval for use in cardiac arteries in 1994.
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Chromosome 3, the third largest of the human chromosomes, accounts for 7 percent of a person’s entire genetic blueprint. Increased knowledge of the genome is changing the face of disease prevention, diagnosis and treatment.
“In our Health Science Center labs, we have proven that a gene on Chromosome 3 is linked to ovarian cancer,” Dr. Naylor said. “We are working with many types of genes, including several that suppress formation of various cancers and others that are involved in bone development. Scientists worldwide come to us because we are the resource, the clearinghouse, for information on Chromosome 3.”
The genome, composed of an amazing primordial acid called DNA, is found in the center of every cell. More complex than the most sophisticated computer software, DNA programs the biology of development, puberty, adult life and death. It appears in x-shaped structures (chromosomes) in the nucleus of every cell, is made up of blocks of functional units called genes, and contains four foundational amino acids, abbreviated as G, C, A and T. The order of these acids determines the function of a sequence of DNA.
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1993, Engineering Award for Video Toaster
2003, Emmy Engineering Award for LightWave 3D
10 Emmy Visual Effects awards went to productions that used LightWave as their 3D tool of choice in past 10 years.
2001, Both Emmy® VFX category winners, Star Trek: Voyager and Frank Herbert's Dune.
2002, Series VFX Emmy winner Enterprise: Broken Bow, and then both categories again in 2003, for the series Firefly and the movie Children of Dune; and in 2004 Enterprise: Countdown and Peter Jennings Reporting: The Kennedy Assassination-Beyond Conspiracy.
Tim Jenison, founder and chief technology officer of NewTek, is considered the visionary force behind the desktop video revolution. Jenison founded NewTek in 1985, and led in the development of a series of highly successful products including DigiView, the first video digitizer for a computer; DigiPaint; the Amiga Video Toaster, which provided broadcast-quality video editing and special effects in one complete solution for under $5,000; the Amiga Video Toaster Flyer, which provided quality nonlinear video editing capabilities, affordably; LightWave 3D®; Calibar; and more recently Inspire 3D, Aura, and the new VT[3]. Before founding NewTek, Jenison attended Iowa State University, then pursued a career in the music industry. He began tinkering with and inventing things when he was just a child - an aptitude he put to good use at NewTek.
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http://www.cinetecamilano.it/2002/05_nov-dic/appuntamenti_melies.htm
Gaston Melies' Star Film Company came to Hot Wells, in January, 1910, for a different kind of cure. Fleeing a bitter New York winter, they sought a warmer, more picturesque environment in which to take their moving pictures.
Star Film Company
1910 and April, 1911: the time when the Company was based at Hot Wells Hotel.
produced nearly eighty one-reelers: fast-paced, raucous, sentimental, melodramatic Westerns and comedies. But there are no reminders of them, either, on this forgotten tract of land. No cameras, sets, costumes or scripts. No member of the company -- no actor, director or cameraman -- is still alive.
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McDermott's Contributions to San Antonio
http://www.anbhf.org/laureates/mcdermott.html
In a tribute to Robert McDermott recently, Mayor Henry Cisneros of San Antonio stated that "when the economic history of San Antonio in the 1980s is written, the most influential individual will be him (McDermott)" [4]. After his arrival in San Antonio, McDermott was selected as President of the Greater San Antonio Chamber of Commerce. In this position he initiated the San Antonio Economic Development Council which began a drive to bring business development into San Antonio. When the Hispanic population felt they were not being included, McDermott founded United San Antonio which pulled all the disparate community groups together. In the 1980s he was responsible for getting an undergraduate engineering program at the University of Texas at San Antonio first and later graduate programs in the sciences. With this groundwork laid, he began moving in a formal sense to make San Antonio a biotechnology center for the future. He founded the Texas Research and Technology Foundation, which was established to develop a Texas Research Park. He also helped arrange for the first major gift of $15,000,000 for the park from H. Ross Perot. Today he is regarded as the key influential business leader in San Antonio. In addition to his personal contributions, McDermott believes that USAA should be a corporate good citizen, and it has been so. USAA's Volunteer Corps gave over 30m000 volunteer hours to San Antonio just last year and USA is the city's largest private-sector United Way contributor. Although USAA employees constitute only 2% of San Antonio's work force, they contributed 10% of the total monies collected by United Way.
Brigadier General Robert F. McDermott and USAA - Service Plus Ethics Equals Success Dreamers and doers rarely come in the same package. The historical record is replete with figures who seem to have extraordinary vision, but who are unable to make their dreams come into reality. On the other hand, there are many who have been able to execute the ideas of others, but who do not seem to be able to think in broad terms bout the future. Recent historical scholarship placed John F. Kennedy in the first category and Lyndon Baines Johnson in the second. Robert F. McDermott, Chairman and CEO of USAA is one of the rare individuals who have brilliant conceptual ideas an who have been able to put them into operation. The First Career Prior to becoming CEO of USAA, McDermott had already demonstrated these traits while serving on active duty in the Air Force as the first permanent Dean of the newly founded USAF Academy. Upon assuming his position, the new Dean wished to make the Academy a premier undergraduate academic institution, as well as developer of professional military officers and leaders. He wished to attract first-rate applicants chosen without regard to political connections and to challenge them to meet their potential. He introduced sweeping innovations by overcoming opposition from the military establishment, particularly at West Point and Annapolis, political insiders in Washington, and those who wanted no change at all. The changes included introducing over 25 academic majors, setting up cooperative Master's degree programs with outstanding institutions, building a first class library, faculty and staff, and introducing the "whole man" admission program with little regard to political connections. All this resulted in McDermott getting the Air Force Academy accredited by the North Central Association prior to its first class graduating. This was an unheard of accomplishment. When he retired in 1968, the other military academies were already changing curriculum and procedures to match the newest of the academies. At a ceremony at West Point in 1989, the Superintendent of the US Air Force Academy, Lt. General Charles Hamm, referred to McDermott as the Sylvanus Thayer of the twentieth century, crediting McDermott with bringing all US service academies "into the twentieth century" [6]. USAA - The McDermott Infrastructure With his outstanding reputation as an insurance scholar developed through his teaching and two published books, his solid academic preparation including an MBA from Harvard, and his national reputation as a visionary, organizer, leader and manager, he came to USAA as an Executive Vice President in July of 1968. Over the next six months he would observe all facets of USAA's operation and begin formulating his visions for the future of USAA. When he assumed the role of President and CEO of USAA on January 1, 1969, the company was in good shape overall. Serving the auto property and casualty insurance needs of active duty officers since 1922, it had a solid reputation and had penetrated 70% of its potential market. It also provided homeowners insurance in some states and had just begun offering a basic life insurance policy. The members (USAA is actually a reciprocal insurance exchange - a member-owned cooperative if you will) were basically happy and contented with their company. On the face of it, it would not seem that a new man could do a great deal better than was already being done, but McDermott had observed much during his six-month orientation. While the small company was doing well and had assets of $200,000,000, it was doing well with increasing difficulty. Although basically solid financially, the Board had accorded the departing President "special recognition" by raising the annual dividend to all the members to a new high. This put the previous president in a rosy glow, but placed USAA in a hazardous cash position. One of McDermott's first acts was to cancel the "extra" dividend which created immediate unrest among the members, but which was necessary if the company were to get through a temporary financial crisis. It did. In the operating levels of USAA, McDermott noted many problems. The approximately 3,000 employees (over 90% women) did not like the work at all, and the annual turnover rate of 43% made this clear. To initiate a new automobile insurance [policy required 55 different steps at 55 different desks. Some of these simple steps were mind deadening, like pulling staples or unsealing envelops. The operation required moving files up and down seven different floors, and claims and underwriting maintained separate records on each member. At each desk were shelves and bins piled high with records requiring some action or awaiting filing. So confusing was the operation and so many records misplaced that a crew of dozens of college students searched for missing records every night in order to return them to where they were needed. Most employees felt that USAA was a good place to start, but few wanted to remain there and a career was unthinkable. The employees had little education and less loyalty to USAA. It was clear to McDermott that if USAA were to be a truly great company, sweeping changes would have to occur. Gathering with him a small number of those he brought on board and a few incumbents, he held a serious long-range planning meeting at the American Management Association's Conference Center in Hamilton, New York to set the future course for USAA. At this meeting and, to a lesser extent, those of the next two years, he began to reveal his goals for the future. On the operational side he challenged USAA to become a "paperless" insurance company, which seemed unreachable at the time. He committed USAA fully to use the newest technology to improve the operation and to make employees' jobs more meaningful. As a result, he was certain productivity would rise. He challenged the company to work through a myriad of state regulations and laws to enable USAA to provide automobile and property insurance to all members in all states. As far as employees were concerned, McDermott wanted sweeping changes to orient employees to provide better and more ethical service to the members. He proposed to accomplish this by developing a "corporate culture" that would provide an ethical, and service-oriented foundation that would permeate the entire company. He instituted the USAA Creed which charged members and employees to serve "each other with integrity and dependability" [25]. The goal in handling auto claims would be not to pay as little as possible and still satisfy the member, but to exercise "the highest standards of ethical and professional conduct while transacting claims business" [24]. Providing timely and responsive service with integrity and ethical conduct would build member faith and strengthen USAA for future growth. Training on ethical conduct became a staple in new employee orientation and all training courses. He even sought a new logo to give the company a more solid and a more modern look. McDermott recognized that a corporate culture in itself would not work without building pride among the employees. He challenged USAA to build new employment incentives including pay and other benefits. He pushed the Board of Directors in the direction of building a new facility to house all of USAA to increase efficiency and to give the employees more pride. Perhaps most important of all, he insisted programs be developed to encourage each employee to grow to his or her maximum potential. During McDermott's first few years, dozens of changes swept over USAA and its employees. The pattern for the larger changes was similar - first the vision, followed by long and short-range plans to accomplish the task. Then specialists, often outside consultants, would help in the development of operational ideas and selection of equipment. At the same time, intelligent, hard-working individuals were placed in charge of the projects and were given latitude to build teams and develop the operation programs. At almost the same juncture, plans were made to train affected employees and to prepare them physically and psychologically for the changes. These efforts tended to bring in innovations more quickly than expected with strong acceptance by the employees themselves. The results were more efficiency, productivity, and pride in a job done better than before. A typical example was the introduction of a computer system designed to produce multi-car policies. Today, all companies issue policies that list all the cars owned by a family. In 1969, each car had its own policy. The administrative work required to produce these policies was labor-intensive and expensive. With the introduction of a multi-car computer software system, all vehicles were listed on one policy. Just this change enabled USAA to increase its productivity enormously, deleting hundreds of manpower spaces in one year. A second benefit of this new system was to spread the auto renewal periods throughout the year. This enabled USAA to level out the workload and make more efficient use of available manpower. Over time, the development of USAA's gigantic information systems continually increased productivity and enabled it to provide better service to the members. At the present time, USAA has the largest IBM facility in the United States in terms of the numbers of transactions completed daily. The statistical growth is shown in Appendix 1, but does not really show what it means to the company today. Whereas issuing a policy in 1969 took 55 steps and an inordinate amount of time, today one Policy Service employee handles the entire transaction using his or her computer screen and the policy is on its way to the member in three days or less. This effort was highlighted recently in the February 13, 1989 issue of Fortune magazine [1]. Today, McDermott's earliest visions of leading-edge technology continue to unfold. Still working toward a "paperless" environment, USAA had been working on the development of imaging techniques. After a short experiment with 3M in 1984, McDermott convinced John Akers, CEO of IBM, to work with USAA in development and execution of the image-processing system. Working as partners, USA and IBM computer specialists and engineers were successful. In late 1988, John Akers came to USAA to cut the ribbon and see the new system in operation. Very simply, a document, such as a police report is given the USAA number and entered into the computer system by a process resembling a data fax to the casual observer. Only in this case the document is stored on an optical disk and is ready for recall at any of USAA's image computer screens in a split second. By the spring of 1989 USAA had all policy service documents on optical disks rendering the millions of pieces of paper expendable. After everything is entered on the optical disks, lost documents and misplaced files will become folklore instead of reality. McDermott's effort in improving his work force and pushing USAA into leading edge technology have combined into what Ed Yourdon called in the February 1989 issue of American Programmer one of the extremely rare "Exemplary Data Processing Organizations" in the country [26]. He pointed out how much "influence an exemplary CEO can have in the creation and motivation of an exemplary data processing organization." Improving the Work Force One of McDermott's earliest visions had been to improve working conditions by developing a new facility able to house all USAA employees under one roof. In 1969 he personally looked over properties. He rejected sites convenient to the city center where most employees lived and selected a site in the undeveloped northwest part of the city. He talked the Board of Directors into authorizing the purchase of 286 acres. He wanted good access for the employees and to build a campus-like setting. He wanted room for growth and did not want others encroaching upon USAA itself or its view. Today, the USAA property sits in the center of the fastest-growing area of the city and the value of the property has escalated like the population of San Antonio. As far as the building itself was concerned, McDermott wanted it to be a place where the employees would be proud and happy to work. He wanted the principal aesthetic costs concentrated on the interior and not the exterior. When completed in 1975, it turned out to be a state-of-the-art building for 1989 and was, and still is, the second largest horizontal office building in the country. All the flooring is "computer flooring" enabling the thousands of miles of computer and telephone wiring to be out of sight and to make internal moves easy and economical. The building has a center spine and on the main floor, three different courtyards where the employees can relax body and mind. Each courtyard has a different theme providing additional aesthetic beauty. The work areas themselves have cubicles including telephones and a computer terminal and are located adjacent to the courtyards for breaks. The building also contains other amenities to increase the comfort of the employees. Included is a company store to purchase sundry items, a ticket counter to purchase discounted tickets to San Antonio attractions, a contract post office, a health clinic, exercise gymnasium and outstanding cafeterias. Getting good employees to come to USAA was only one step. Retention of good employees was the next. To assist in both these tasks, McDermott introduced programs to improve the physical well being and health of the employees and to help them develop to achieve their individual potential as well. Building and maintaining the physical well being of the USAA employees has been a multi-faceted program. In 1972, McDermott convinced the USAA Board of Directors to incorporate a physical fitness center into the new building. The resultant 9,700 square foot center houses lockers, saunas, steam rooms, cardiovascular treadmills and exercise bicycles, a Nordic skier and rowing machines. Two professional exercise physiologists monitor the individual exercise programs. Almost 2,000 employees participate in the center's programs. Outside the building are 35 acres devoted to fitness activity areas which include five miles of jogging trails winding through the trees, a multi-purpose soccer field, softball fields, basketball and volleyball courts, and tennis courts. All are equipped with lights for evening use. This year almost 3,000 employees participated in various intramural sports leagues. The fitness and athletic program is balanced by a first-class health service staff and program. Its eight registered nurses provide a complete health-oriented program for employees. Among the programs conducted are brown-bag health seminars, free allergy and flue immunizations, on-site mammograms, free diabetes, hypertension and cholesterol testing and an annual Health Fair. The Health Services staff also provides smoking cessation training which was of significant help when McDermott phased in a "no smoking" policy in all USAA buildings. At the present time, smoking is authorized in only a few lounges and a small section of the cafeterias, with the goal to eliminate all smoking by the end of 1990. Free comprehensive physical examinations are provided to employees over 50 years of age. Confidential employee counseling is also provided. In 1980 alone, the counselors served over 3,000 employees. Part of the counseling service also includes information on area childcare facilities. Other wellness incentives include low-priced "Treat Yourself Right" menus in the cafeteria which encourage good eating habits and a full-time safety director who insures employees have safe working areas and equipment. One result of the employees perceiving that USAA cares for them and that USAA is actually making things healthier and safer for them, is USAA's absentee rate which is 45% below the national average. Helping individuals meet their potential have been the highly successful USAA education and training programs. Soon after McDermott arrived at USAA, he decided to centralize training and education and brought on board a professional educator to do it. McDermott's programs had two great impacts. First, there was visible improvem
But there are many ways insurers' costs can be reduced through more efficient operation, and through more effective advocacy of health and safety programs. Some companies, like USAA in San Antonio, operate much more efficiently than the industry average. According to NICO (National Insurance Consumer Organization -a Nader group) auto insurance rates would drop by an average of 17% nationally if all companies were as efficient as USAA. And USAA provides a 14% dividend to its cooperative owners [11].
In testimony before the same committee, Harvey Rosenfield, the author of California's Proposition 103 also had positive words for USAA in contrast to other insurers:
Moreover, a huge portion of the premium dollar goes to waste and inefficiency on a massive level. For example, according to Best Aggregates and Averages (1988) 23 cents of every dollar of auto insurance Fireman's Fund wrote in 1987 went to claims adjustments and defense lawyers' fees and 28.9 cents went to agent's commissions, executive salaries and other overhead expenses. Contrast that with USAA, a company which itself does exceptionally well in the insurance business and is appreciated by its customers for its excellent service. It paid 12.3 cents per premium dollar to its lawyers, and 6.9 cents per dollar to overhead [15].
USAA has continued to provide service to its members with integrity and distinction, but also has consistently made profits to protect the members' interests and to keep products at a level as inexpensive as possible. In Appendix 1 is a chart which dramatizes the tremendous growth in USAA under General McDermott from the end of 1968 to 1988. As this article goes into publications, the dramatic growth has continued in all the areas noted. For example, USAA's owned and managed assets now exceed 16 billion dollars and USAA has almost 13,000 employees. A National Leader for Automobile Safety McDermott has long been a proponent of vehicle safety. For over a decade he has worked with automobile manufacturers, insurance institutes, private sector businesses, local and national politicians, and the media to secure improved automobile safety equipment and better safety legislation for the country. To this end, he has also initiated two separate safety campaigns, one in 1982 and one in 1988. These addressed the problem of deaths, injuries and property damage incurred through unsafe driving and inadequate safety technology. General McDermott held a national press conference on safety in Washington, D.C. on January 5, 1982.. He also made an appearance on the McNeil-Lehrer Report on the next night. During the interview, he further touted the use of passive restraints and called for prompt governmental acceptance of more rigid safety standards for automobiles. During the 1982 safety campaign, McDermott made history by making USAA the first insurance company to publish a comprehensive report on the comparative safety of domestic and foreign automobiles. The report, produced in conjunction with the Insurance Institute for Highway Safety (HHS), showed the statistical results of actual automobile crashes involving injuries and deaths. It listed which automobiles were most "crashworthy," and which were more likely to cause injury or death in a crash [10]. Another aspect of the first safety campaign was General McDermott's testimony at the November 28, 1983, Department of Transportation Hearing in Los Angeles, California. The thrust of his testimony was to point out the indecisiveness and ambivalence with which the government has treated auto safety by not mandating better passive restraint technology - air bangs in particular -- to automobile manufacturers. As not only an insurance company executive, but also a father and grandfather, he implored haste in implementing improved safety legislation and recommended "a pragmatic, action-oriented approach to get passive restraint technology into existing cars and built into the net generation of automobiles" [9]. An even more extensive and far-reaching safety campaign known as DRIVE SMART was sanctioned by General McDermott in 1988. At the campaign kickoff on Wednesday, March 30, 1988 at a press conference in Washington, D.C., General McDermott announced that USAA would imitate the most extensive package of auto insurance discounts and incentives ever offered [3]. These incentives and discounts were recognized by then-Secretary of Transportation Jim Burnley as bellwether actions in corporate leadership. He stated in a message at the press conference, "I am delighted to say that General Robert F. McDermott, Chairman of the United Services Automobile Association, has accepted the challenge and in turn is setting the standard for the insurance industry. This is not only a fine example of private sector initiative, but of the leadership industry can provide and credibility it can lend in developing public support for new safety technology. " Ralph Nader also stated that "USAA was setting the pace for Allstate, State Farm, Travelers and others" [12]. Included in USAA's program were an Air Bag Safety Bonus and Air Bag Replacement Guarantee, an Air Bag Premium Discount, a Child Safety Seat Discount, an Anti-Lock Brake Discount and other incentives as well. The DRIVE SMART campaign began in San Antonio, Texas, in early April and will continue through 1989 and beyond. In the campaign, USAA spearheads a group of 35 business, community, educational and religious organizations pledging to commit time and resources to reduce traffic injuries and fatalities on American roads. The purpose of the campaign is multi-dimensional, informing people on the four general topics including responsible driving, the use of restraints, proper vehicle maintenance, and buying "smart cars" - cars with the latest safety features. To this end, General McDermott authorized USAA's development of a variety of materials and services to support the campaign. These included billboards, bench ads, taxi and bus ad boards, safety-related videotapes, dozens of public service announcements (PSAs) for radio and television, posters, brochures, bumper stickers, decals and safety displays. Many of the materials were produced in English and Spanish to widen their audience appeal. These materials were also made available without USAA logos so that organizations could use their own logos or message. USAA made these available at no cost to any organization willing to promote the idea of automobile safety. Soon the campaign took on a statewide and nationwide focus. The Texas Highway Department adopted the theme and expanded it to DRIVE SMART TEXAS, placing DRIVE SMART TEXAS signs near entrances and exits of high-traffic areas in the state. Through the cooperation of some business sector participants (e.g. Taco Bell and 7-Eleven), the campaign entered regional and national markets through television advertising and distribution of USAA-produced DRIVE SMART materials at their locations. Public service ads in magazines were then focused toward both military and civilian communities throughout the country. McDermott carried the safety message personally to a national audience in September 1988 when he keynoted the second National Injury Control Conference. The conference was sponsored by the U.S. Center for Disease Control, and about 500 physicians, researchers and educators attended. Additionally, a USAA-sponsored DRIVE SMART AMERICA display appeared at both the National Conference of State Legislatures in Reno, Nevada, and the U.S. Hispanic Chamber of Commerce 1988 National Convention in Washington, D.C. for the purpose of enhancing political interest on safety issues. In all, a total of over 6.5 billion nationwide media impressions for DRIVE SMART were made in 1988. In January of 1989, Diane Stead, Administrator of the National Highway Traffic Safety Administration wrote a letter to McDermott. In it she said she wished "to personally commend you on the actions taken by USAA throughout the year to increase the safety of our nation's motoring public" [22]. McDermott's Contributions to San Antonio In a tribute to Robert McDermott recently, Mayor Henry Cisneros of San Antonio stated that "when the economic history of San Antonio in the 1980s is written, the most influential individual will be him (McDermott)" [4]. After his arrival in San Antonio, McDermott was selected as President of the Greater San Antonio Chamber of Commerce. In this position he initiated the San Antonio Economic Development Council which began a drive to bring business development into San Antonio. When the Hispanic population felt they were not being included, McDermott founded United San Antonio which pulled all the disparate community groups together. In the 1980s he was responsible for getting an undergraduate engineering program at the University of Texas at San Antonio first and later graduate programs in the sciences. With this groundwork laid, he began moving in a formal sense to make San Antonio a biotechnology center for the future. He founded the Texas Research and Technology Foundation, which was established to develop a Texas Research Park. He also helped arrange for the first major gift of $15,000,000 for the park from H. Ross Perot. Today he is regarded as the key influential business leader in San Antonio. In addition to his personal contributions, McDermott believes that USAA should be a corporate good citizen, and it has been so. USAA's Volunteer Corps gave over 30m000 volunteer hours to San Antonio just last year and USA is the city's largest private-sector United Way contributor. Although USAA employees constitute only 2% of San Antonio's work force, they contributed 10% of the total monies collected by United Way. Promulgating Ethical Ideals In addition to what McDermott has done to instill a system of corporate ethics and to integrate it into normal business activity, he has made two other major contributions as well. He is the Chairman of the International Leadership Center Foundation in Dallas. This Foundation supports Leadership America, recognized as the premier off-campus leadership training program for college students in the country. The mission of the Foundation has four principal parts: -Providing ideas, advice and personal involvement to aid the Center in broadening the vision of current and emerging leaders by improving their leadership capabilities; -Formulating policies that insure excellence in all Center activities; -Promulgating high traditional American moral and ethical values that underlie successful leadership through all Foundation and Center activities; -Designing, developing and implementing plans that insure the financial stability and growth of the International Leadership Center. Participating students have all agreed that the Leadership America Program ahs had a major impact upon them because it shows the importance of ethics and values as a foundation for leadership. As a second major action, USAA is underwriting a series of four nationally-televised programs under the title "Raising Good Kids in Bad Times." Produced by Emmy Award-winning producer Arnold Shapiro, the first program, "See Dick and Jane Lie, Cheat and Steal: Teaching Morality to Kids," will air on U.S. Commercial stations in April. Tom Selleck will host the program. Other films will include "The Truth About Teaching," hosted by Whoopi Goldberg, "The American Dream Contest," hosted by Michael Landon, "New & Improved Kids," with Loni Anderson, and James Garner holding the reins on "Take Me to your Leaders." The series has already been contracted by over 98% of the national television market. Robert F. McDermott's achievements in his chosen careers and his efforts on behalf of the insurance and financial services industry, his community and our society and nation resulted in his selection to the American National Business Hall of Fame in 1989. His achievements underline that personal ethical conduct, integrity and respect for God and country provide a foundation for success when carried into the world of business. *This article by Paul T. Ringenbach was originally published in The Journal of Business Leadership, Volume 3, Number 2, Summer 1990. *Copyright 1990. The American National Business Hall of Fame. All rights reserved. No portion of ANBHF may be duplicated, redistributed or manipulated without the expressed permission of the ANBHF. REFERENCES 1. Alster, Norm. (1989, February 13). What flexible workers can do. Fortune, p. 64.2. Best's Insurance Reports. (1989). USAA received an A+ (Superior) rating in Best's Property-Casualty (p. 2625) and Life-Health (p. 2264). Oldwich, NJ: AM Best Company.3. Burnley, James. (Secretary of Transportation). (1988, March 30). [Remarks at a press conference to announce the beginning of the DRIVE SMART safety campaign.] Washington, D.C.4. Cisneros, Henry. (Mayor of San Antonio). (1988, October 6). [Remarks given at the dedication of USAA Towers]. San Antonio, Texas.5. Elkind, Peter. (1987, Spring). McDermott's mission. Best of Business, p. 8-15.6. Hamm, Lt. General Charles R. (Superintendent of the U.S> Air Force Academy). (1988, November 4). {Remarks at the dedication of Arnold Auditorium, United States Military Academy]. West Point, New York.7. IDC Financial Publications, Inc. (1989, February). S&L - Savings Bank Financial Quarterly, p. 82.8. Mack, Toni. (1988, July 25). They have faith in us. Forbes, p. 82.9. McDermott, Robert F. (Chairman USAA). (1983, November 28). [Testimony before the California Department of Transportation]. Los Angeles, California.10. McDermott, Robert F. (1982, January 19). Americans are dying for better gas mileage. Wall Street Journal, p. 13.11. Nader, Ralph. (Founder of Public Interest Research Group). (1988, December 6). [Testimony before the Commerce, Consumer Protection and Competitiveness Sub-Committee, U.S. House of Representatives]. Washington, D.C.12. Nader, Ralph. (Founder of the Center for Auto Safety). (1988, March 20). [Response to the announcement of USAA safety incentives]. Washington, D.C.13. Nussbaum, Bruce, et. Al. (1985, January 21). The new corporate elite. Business Week, p. 63.14. Reich, Kenneth (1988, June 7). USAA again ranks first in satisfaction on auto insurance. Los Angeles Times, p. 3.15. Rosenfield Harvey. (Architect of California's Proposition 103). (1988, December 6). [Testimony before the Commerce, Consumer Protection and Competitiveness Sub-Committee, U.S. House of Representatives]. Washington, D.C.16. Staff. (1970, June). Consumer Reports, p. 433.17. Staff. (1977, June). Consumer Reports, p. 377.18. Staff. (1980, September). Consumer Reports, p. 543.19. Staff. (1984, September). Consumer Reports, p. 508.20. Staff. (1988, October). Which companies offer better service? Consumer Reports, p. 628.21. Staff. (1989, February/March). Twenty-first century mail communications system on-line at insurance concern. Mail: The Journal of Mail Distribution, p. 16-17.15.22. Stead, Diane. (Administrator of the National Highway Safety Administration). (1989, January). [Letter to Robert F. McDermott, USAA]. San Antonio, Texas.23. Turco, Frank. (1988, March 24). Ratio of complaints against 19 insurers stirs state scrutiny. Arizona Republic, p. c7.24. USAA Public Affairs Department. (1985). A mission of trust: USAA Corporate culture. (San Antonio, Texas: USAA Publishing Services.25. USAA Strategic Planning and Analysis. (1988). Strategic planning guidance document. (San Antonio, Texas: USAA Publishing Services.26. Yourdon, Ed. (1989, February 2). Exemplary data processing organizations. American Programmer, p. 26.27. Zemke, Ron, Shaaf, Dick (1989). The service edge. (Foreword by Tom Peters). New York: New American Library.
nt in the service USAA could provide to its members because of the improved education and training the employees received. Second, was the great morale factor it proved to be. McDermott began off-duty educational programs offered in USAA facilities and paid 100% tuition reimbursement for employees attending colleges and university courses. It did not stop there. He also paid for professional development courses leading to professional designations such as CLU (Chartered Life Underwriter) and CPCU (Chartered Property and Casualty Underwriter). McDermott's centralized training concept has provided USAA with a broad diversity of training from entry-level training for claims and policy service personnel to management development courses to make technical personnel ready to assume supervisory positions. The Management Information Seminar provides senior managers a forum to learn about other divisions of the company and to mingle with other senior USAA executives and senior managers. The result is a free flow of ideas across divisions to help all the diverse elements be of maximum benefit to each other. USAA Growth and Diversification In the first long-range planning meeting at Hamilton, New York, McDermott had set out his vision of growth for USAA. The first order of business was to strengthen and expand the Property and Casualty business which was the heart of the company. Developing the ethical and service policy and strengthening the employees were critical parts of the foundation for growth as was development of computer systems to support the growth and improved service. USAA expansion in the Property and Casualty area had two parts - expanding the geographical area in which USAA could sell insurance and capturing a larger portion of the targeted market. When McDermott arrived, USAA could sell auto insurance in 48 of 50 states, but was able to sell homeowner policies in only 31 of 50 states. As a reciprocal insurance exchange that sold only to military officers this was a problem. When officers were ordered to states where USAA could not sell, membership suffered. McDermott established a corporate legal staff and charged it with getting USAA licensed for both lines in all states. With this underway, he initiated USAA's first corporate marketing staff and charged it with bringing in more members. The combination of the two initiatives resulted in USAA being licensed for auto and homeowner policies in all states, and as of the end of 1988, the penetration of the active duty officer market had reached 97%. When one eliminates those who can not be insured, such as those stationed in Warsaw Pact countries, and those without cars, USAA has close to 100% of those active-duty officers it is willing to insure. Today USAA is the 6th largest private automobile and homeowners insurer in the United States. From the beginning, McDermott combined his own sixth sense with those of members' desires to diversify USAA and add lines he believed could be supported. One of the key innovations was his decision to offer automobile and homeowners insurance to children of members through a new USAA subsidiary. With USAA Board of Directors' support, the program went into full swing and is now the fastest growing portion of the Property and Casualty business at USAA. At the end of 1968, USAA had only a small life insurance program in addition to the property and casualty insurance. As result of formal and informal surveys of members, McDermott wished to expand USAA offerings. Under the original bylaws, this was prohibited and so he had to convince the USAA Board of directors to change them to permit diversification. By virtue of his own persuasion and the desires of the membership, the Board reluctantly agreed. Its reluctance stemmed from the tradition-bound mind-set of those wishing to sell property and casualty insurance only. In 1968, USAA stood 504th among American life insurance companies in terms of life insurance in force, but that was soon to change. At that time, USAA offered only whole life insurance policies. Over the years other products were added to the line, and the life insurance ranking climbed slowly at first and then with increasing intensity. Now the USAA Life Insurance Company offers a full range of life insurance products an has added a number of health insurance products as well. In 1976, a line of annuities was also added. Today USAA stands 55th in national raking based on the dollars of ordinary life insurance in force. Success in life insurance led to further entries into the financial services area. Under the USAA Investment Management Company (IMCO), begun in 1983, 12 no-load mutual funds were added over time, each tailored to different member desires and needs. Some of them include money market, growth, tax-exempt, international and precious metals funds. Today, USAA stands 34th in national mutual fund group ranking. In addition to the mutual funds, a real estate division has offered Real Estate Limited Partnerships. Among the youngest of the financial services offerings, the Real Estate Division turned a profit in 1988 and has great future promise. USAA also added a Discount Brokerage, which now numbers 38,000 active accounts and handles stock transfers for IMCO, cutting USAA costs. Almost from his arrival at USAA, McDermott had wanted to open a bank, but various rules and regulations prohibited insurance companies from doing so. In the early 1980s, deregulation of financial institutions and other legal and regulatory provisions made it seem possible for USAA to open a savings and loan institution. In October of 1983, a window of opportunity opened and McDermott moved quickly. On December 30, 1983, USAA capitalized its new savings and loan with $20,000,000 and opened in a renovated trailer building on the USAA property. USAA members joined at a rapid rate. One pundit at the time pointed out that USAA members felt very strongly about the integrity of USAA and its backing of the savings and loan since they sent money to a trailer pointed at the Mexican border. Today, only six years later, the USAA Federal Savings Bank has over $1 billion in assets and has received top marks from independent raters [7]. Another sign of USAA members' strong faith in USAA and what it backs is the USAA Federal Savings Bank's experience with the MasterCard. USAA sent 240,000 pre-approved credit card applications to members. Industry experts predicted that 10-12% might be a reasonable return based on USAA reputation. In the first couple of months, USAA members returned applications to establish a return rate of over 50%. Today over 1 million USAA MasterCards are in use, and USAA's national standing is fifth in sales volume for all institutions issuing a MasterCard. USAA purchased another financial institution in Utah in 1988 and opened the FDIC-insured USAA Federal Savings Association with a gold MasterCard following shortly thereafter. In 1988, in another McDermott innovation, USAA opened the USAA Towers, a luxury retirement center in San Antonio. The 23-story, $75,000,000 building has won high ratings from the retired community and the retirement industry. Many of the strides McDermott has made in the financial services area have produced accolades from members and have received praise from a variety of respected financial institutions. In 1987, the Nilson Report and NBC's Today Show proclaimed the USAA MasterCard as the number one buy in the country. Many of the mutual funds have been praised as excellent investments in national publications such as Fortune and Money. The USAA Federal Savings Bank was given ICD Financial Publishing's first-ever "perfect" rating for an institution with assets of over $50,000,000[7]. USAA Life Insurance Company has received A.M. Best A+ rating since 1975 and the Property and Casualty Division for much longer [2]. The success of all of these USAA programs has been due to the excellent relationship of mutual trust and confidence built up between USAA and its members based on the ethical conduct and integrity of the customers and the company itself. "Service to the Member" is the watchword continually espoused in USAA and is the clearest expression of USAA's positive relationship with its members. That "Service to the Member" philosophy implanted by McDermott has continued during USAA's rapid growth, and a key element of that service is member contact. As a direct-writer, USAA relies primarily on telephone and postal communication with its members. Over the years, McDermott has guided the staff to a communications status - technologically and from the standpoint of efficiency - that ensures members have fast and direct contact with USAA. In 1969, about 99% of USAA's member contact was by mail. Today USAA relies more on the immediacy of telephone contact. Its employees receive about 17.8 million calls a year, and average daily phone volume is about 65,000 calls. With over 1,000 lines, USAA is the largest single point of termination for WATS lines in the country. Still, USAA continues to rely heavily on use of the mail. It is the nation's largest direct mailer in terms of sales volume and fifth largest internationally. A staff of more than 450, full- and part-time, handle approximately 27 million incoming and 73 million outgoing pieces of mail annually. Technology, combined with employee morale and esprit de corps, ensures USAA members receive the best possible communications service [21]. How well USAA is doing in providing service to its members can be measured in a number of ways. The steady growth of USAA and success of its diversification efforts are surely one measure. Another are surveys USAA administers to members which show great member satisfaction. It would be easy to write off USAA's surveys of its own members, but the findings have been confirmed in a number of other places by different institutions. For example, the October 1988 issue of Consumer Reports picked USAA as one of the best three companies in the nation in terms of service. The other two were much smaller firms [20]. This was the 4th such judgment by Consumer Reports over the past 20 years [16, 17, 18, 19]. USAA had the best record in the state for both homeowners and private auto insurance in terms of the fewest number of complaints per one thousand policyholders [14]. The Arizona Insurance Department had the same findings for USAA personal lines insurance [23]. In an industry categorized as a "service Industry", USAA is clearly one of the national leaders due to the leadership of Robert McDermott. In its January 21, 1985 issue, Business Week selected 50 leaders who were representative of the new corporate elite. Of the 9 selected in the "service Gurus" category, McDermott was the only CEO of an insurance firm selected [13]. In the July 25, 1988, Forbes, McDermott said in an interview with Toni Mack that , "if you put service number one, everything else will follow," and so it has [8]. Most recently USAA was among 101 companies singled out in the 1989 book The Service Edge by Ron Zemke with Dick Schaaf [27]. In his foreword to the book, Tom Peters said that the 101 companies described will hopefully have "good management at the top, and throughout any firm, to appreciate just what an unstinting dedication to service can amount to - and to challenge each and every one of us about making such a commitment in our own outfits" [27]. It is clear that providing great service to its own members, USAA has caught national attention as well. McDermott's leadership qualities, within and outside the insurance industry, and his concern for community and country were also reflected in a Best of Business Quarterly interview that appeared in the journal's Spring 1987 issue [5]. Fiscal Management Providing great service has not been done without consideration of the bottom line. USAA has consistently maintained the lowest cost/expense ratio in the insurance industry and has paid dividends to members every year. In the aftermath of the insurance revolt in California in the November 1988 election, consumer advocate Ralph Nader testified before the House Commerce, Consumer Protection, and Competitiveness Subcommittee on December 6, 1988.Although Nader excoriated the insurance industry, he had positive testimony for USAA. He stated:
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McDermott's Contributions to San Antonio
http://www.anbhf.org/laureates/mcdermott.html
In a tribute to Robert McDermott recently, Mayor Henry Cisneros of San Antonio stated that "when the economic history of San Antonio in the 1980s is written, the most influential individual will be him (McDermott)" [4]. After his arrival in San Antonio, McDermott was selected as President of the Greater San Antonio Chamber of Commerce. In this position he initiated the San Antonio Economic Development Council which began a drive to bring business development into San Antonio. When the Hispanic population felt they were not being included, McDermott founded United San Antonio which pulled all the disparate community groups together. In the 1980s he was responsible for getting an undergraduate engineering program at the University of Texas at San Antonio first and later graduate programs in the sciences. With this groundwork laid, he began moving in a formal sense to make San Antonio a biotechnology center for the future. He founded the Texas Research and Technology Foundation, which was established to develop a Texas Research Park. He also helped arrange for the first major gift of $15,000,000 for the park from H. Ross Perot. Today he is regarded as the key influential business leader in San Antonio. In addition to his personal contributions, McDermott believes that USAA should be a corporate good citizen, and it has been so. USAA's Volunteer Corps gave over 30m000 volunteer hours to San Antonio just last year and USA is the city's largest private-sector United Way contributor. Although USAA employees constitute only 2% of San Antonio's work force, they contributed 10% of the total monies collected by United Way.
Brigadier General Robert F. McDermott and USAA - Service Plus Ethics Equals Success Dreamers and doers rarely come in the same package. The historical record is replete with figures who seem to have extraordinary vision, but who are unable to make their dreams come into reality. On the other hand, there are many who have been able to execute the ideas of others, but who do not seem to be able to think in broad terms bout the future. Recent historical scholarship placed John F. Kennedy in the first category and Lyndon Baines Johnson in the second. Robert F. McDermott, Chairman and CEO of USAA is one of the rare individuals who have brilliant conceptual ideas an who have been able to put them into operation. The First Career Prior to becoming CEO of USAA, McDermott had already demonstrated these traits while serving on active duty in the Air Force as the first permanent Dean of the newly founded USAF Academy. Upon assuming his position, the new Dean wished to make the Academy a premier undergraduate academic institution, as well as developer of professional military officers and leaders. He wished to attract first-rate applicants chosen without regard to political connections and to challenge them to meet their potential. He introduced sweeping innovations by overcoming opposition from the military establishment, particularly at West Point and Annapolis, political insiders in Washington, and those who wanted no change at all. The changes included introducing over 25 academic majors, setting up cooperative Master's degree programs with outstanding institutions, building a first class library, faculty and staff, and introducing the "whole man" admission program with little regard to political connections. All this resulted in McDermott getting the Air Force Academy accredited by the North Central Association prior to its first class graduating. This was an unheard of accomplishment. When he retired in 1968, the other military academies were already changing curriculum and procedures to match the newest of the academies. At a ceremony at West Point in 1989, the Superintendent of the US Air Force Academy, Lt. General Charles Hamm, referred to McDermott as the Sylvanus Thayer of the twentieth century, crediting McDermott with bringing all US service academies "into the twentieth century" [6]. USAA - The McDermott Infrastructure With his outstanding reputation as an insurance scholar developed through his teaching and two published books, his solid academic preparation including an MBA from Harvard, and his national reputation as a visionary, organizer, leader and manager, he came to USAA as an Executive Vice President in July of 1968. Over the next six months he would observe all facets of USAA's operation and begin formulating his visions for the future of USAA. When he assumed the role of President and CEO of USAA on January 1, 1969, the company was in good shape overall. Serving the auto property and casualty insurance needs of active duty officers since 1922, it had a solid reputation and had penetrated 70% of its potential market. It also provided homeowners insurance in some states and had just begun offering a basic life insurance policy. The members (USAA is actually a reciprocal insurance exchange - a member-owned cooperative if you will) were basically happy and contented with their company. On the face of it, it would not seem that a new man could do a great deal better than was already being done, but McDermott had observed much during his six-month orientation. While the small company was doing well and had assets of $200,000,000, it was doing well with increasing difficulty. Although basically solid financially, the Board had accorded the departing President "special recognition" by raising the annual dividend to all the members to a new high. This put the previous president in a rosy glow, but placed USAA in a hazardous cash position. One of McDermott's first acts was to cancel the "extra" dividend which created immediate unrest among the members, but which was necessary if the company were to get through a temporary financial crisis. It did. In the operating levels of USAA, McDermott noted many problems. The approximately 3,000 employees (over 90% women) did not like the work at all, and the annual turnover rate of 43% made this clear. To initiate a new automobile insurance [policy required 55 different steps at 55 different desks. Some of these simple steps were mind deadening, like pulling staples or unsealing envelops. The operation required moving files up and down seven different floors, and claims and underwriting maintained separate records on each member. At each desk were shelves and bins piled high with records requiring some action or awaiting filing. So confusing was the operation and so many records misplaced that a crew of dozens of college students searched for missing records every night in order to return them to where they were needed. Most employees felt that USAA was a good place to start, but few wanted to remain there and a career was unthinkable. The employees had little education and less loyalty to USAA. It was clear to McDermott that if USAA were to be a truly great company, sweeping changes would have to occur. Gathering with him a small number of those he brought on board and a few incumbents, he held a serious long-range planning meeting at the American Management Association's Conference Center in Hamilton, New York to set the future course for USAA. At this meeting and, to a lesser extent, those of the next two years, he began to reveal his goals for the future. On the operational side he challenged USAA to become a "paperless" insurance company, which seemed unreachable at the time. He committed USAA fully to use the newest technology to improve the operation and to make employees' jobs more meaningful. As a result, he was certain productivity would rise. He challenged the company to work through a myriad of state regulations and laws to enable USAA to provide automobile and property insurance to all members in all states. As far as employees were concerned, McDermott wanted sweeping changes to orient employees to provide better and more ethical service to the members. He proposed to accomplish this by developing a "corporate culture" that would provide an ethical, and service-oriented foundation that would permeate the entire company. He instituted the USAA Creed which charged members and employees to serve "each other with integrity and dependability" [25]. The goal in handling auto claims would be not to pay as little as possible and still satisfy the member, but to exercise "the highest standards of ethical and professional conduct while transacting claims business" [24]. Providing timely and responsive service with integrity and ethical conduct would build member faith and strengthen USAA for future growth. Training on ethical conduct became a staple in new employee orientation and all training courses. He even sought a new logo to give the company a more solid and a more modern look. McDermott recognized that a corporate culture in itself would not work without building pride among the employees. He challenged USAA to build new employment incentives including pay and other benefits. He pushed the Board of Directors in the direction of building a new facility to house all of USAA to increase efficiency and to give the employees more pride. Perhaps most important of all, he insisted programs be developed to encourage each employee to grow to his or her maximum potential. During McDermott's first few years, dozens of changes swept over USAA and its employees. The pattern for the larger changes was similar - first the vision, followed by long and short-range plans to accomplish the task. Then specialists, often outside consultants, would help in the development of operational ideas and selection of equipment. At the same time, intelligent, hard-working individuals were placed in charge of the projects and were given latitude to build teams and develop the operation programs. At almost the same juncture, plans were made to train affected employees and to prepare them physically and psychologically for the changes. These efforts tended to bring in innovations more quickly than expected with strong acceptance by the employees themselves. The results were more efficiency, productivity, and pride in a job done better than before. A typical example was the introduction of a computer system designed to produce multi-car policies. Today, all companies issue policies that list all the cars owned by a family. In 1969, each car had its own policy. The administrative work required to produce these policies was labor-intensive and expensive. With the introduction of a multi-car computer software system, all vehicles were listed on one policy. Just this change enabled USAA to increase its productivity enormously, deleting hundreds of manpower spaces in one year. A second benefit of this new system was to spread the auto renewal periods throughout the year. This enabled USAA to level out the workload and make more efficient use of available manpower. Over time, the development of USAA's gigantic information systems continually increased productivity and enabled it to provide better service to the members. At the present time, USAA has the largest IBM facility in the United States in terms of the numbers of transactions completed daily. The statistical growth is shown in Appendix 1, but does not really show what it means to the company today. Whereas issuing a policy in 1969 took 55 steps and an inordinate amount of time, today one Policy Service employee handles the entire transaction using his or her computer screen and the policy is on its way to the member in three days or less. This effort was highlighted recently in the February 13, 1989 issue of Fortune magazine [1]. Today, McDermott's earliest visions of leading-edge technology continue to unfold. Still working toward a "paperless" environment, USAA had been working on the development of imaging techniques. After a short experiment with 3M in 1984, McDermott convinced John Akers, CEO of IBM, to work with USAA in development and execution of the image-processing system. Working as partners, USA and IBM computer specialists and engineers were successful. In late 1988, John Akers came to USAA to cut the ribbon and see the new system in operation. Very simply, a document, such as a police report is given the USAA number and entered into the computer system by a process resembling a data fax to the casual observer. Only in this case the document is stored on an optical disk and is ready for recall at any of USAA's image computer screens in a split second. By the spring of 1989 USAA had all policy service documents on optical disks rendering the millions of pieces of paper expendable. After everything is entered on the optical disks, lost documents and misplaced files will become folklore instead of reality. McDermott's effort in improving his work force and pushing USAA into leading edge technology have combined into what Ed Yourdon called in the February 1989 issue of American Programmer one of the extremely rare "Exemplary Data Processing Organizations" in the country [26]. He pointed out how much "influence an exemplary CEO can have in the creation and motivation of an exemplary data processing organization." Improving the Work Force One of McDermott's earliest visions had been to improve working conditions by developing a new facility able to house all USAA employees under one roof. In 1969 he personally looked over properties. He rejected sites convenient to the city center where most employees lived and selected a site in the undeveloped northwest part of the city. He talked the Board of Directors into authorizing the purchase of 286 acres. He wanted good access for the employees and to build a campus-like setting. He wanted room for growth and did not want others encroaching upon USAA itself or its view. Today, the USAA property sits in the center of the fastest-growing area of the city and the value of the property has escalated like the population of San Antonio. As far as the building itself was concerned, McDermott wanted it to be a place where the employees would be proud and happy to work. He wanted the principal aesthetic costs concentrated on the interior and not the exterior. When completed in 1975, it turned out to be a state-of-the-art building for 1989 and was, and still is, the second largest horizontal office building in the country. All the flooring is "computer flooring" enabling the thousands of miles of computer and telephone wiring to be out of sight and to make internal moves easy and economical. The building has a center spine and on the main floor, three different courtyards where the employees can relax body and mind. Each courtyard has a different theme providing additional aesthetic beauty. The work areas themselves have cubicles including telephones and a computer terminal and are located adjacent to the courtyards for breaks. The building also contains other amenities to increase the comfort of the employees. Included is a company store to purchase sundry items, a ticket counter to purchase discounted tickets to San Antonio attractions, a contract post office, a health clinic, exercise gymnasium and outstanding cafeterias. Getting good employees to come to USAA was only one step. Retention of good employees was the next. To assist in both these tasks, McDermott introduced programs to improve the physical well being and health of the employees and to help them develop to achieve their individual potential as well. Building and maintaining the physical well being of the USAA employees has been a multi-faceted program. In 1972, McDermott convinced the USAA Board of Directors to incorporate a physical fitness center into the new building. The resultant 9,700 square foot center houses lockers, saunas, steam rooms, cardiovascular treadmills and exercise bicycles, a Nordic skier and rowing machines. Two professional exercise physiologists monitor the individual exercise programs. Almost 2,000 employees participate in the center's programs. Outside the building are 35 acres devoted to fitness activity areas which include five miles of jogging trails winding through the trees, a multi-purpose soccer field, softball fields, basketball and volleyball courts, and tennis courts. All are equipped with lights for evening use. This year almost 3,000 employees participated in various intramural sports leagues. The fitness and athletic program is balanced by a first-class health service staff and program. Its eight registered nurses provide a complete health-oriented program for employees. Among the programs conducted are brown-bag health seminars, free allergy and flue immunizations, on-site mammograms, free diabetes, hypertension and cholesterol testing and an annual Health Fair. The Health Services staff also provides smoking cessation training which was of significant help when McDermott phased in a "no smoking" policy in all USAA buildings. At the present time, smoking is authorized in only a few lounges and a small section of the cafeterias, with the goal to eliminate all smoking by the end of 1990. Free comprehensive physical examinations are provided to employees over 50 years of age. Confidential employee counseling is also provided. In 1980 alone, the counselors served over 3,000 employees. Part of the counseling service also includes information on area childcare facilities. Other wellness incentives include low-priced "Treat Yourself Right" menus in the cafeteria which encourage good eating habits and a full-time safety director who insures employees have safe working areas and equipment. One result of the employees perceiving that USAA cares for them and that USAA is actually making things healthier and safer for them, is USAA's absentee rate which is 45% below the national average. Helping individuals meet their potential have been the highly successful USAA education and training programs. Soon after McDermott arrived at USAA, he decided to centralize training and education and brought on board a professional educator to do it. McDermott's programs had two great impacts. First, there was visible improvem
But there are many ways insurers' costs can be reduced through more efficient operation, and through more effective advocacy of health and safety programs. Some companies, like USAA in San Antonio, operate much more efficiently than the industry average. According to NICO (National Insurance Consumer Organization -a Nader group) auto insurance rates would drop by an average of 17% nationally if all companies were as efficient as USAA. And USAA provides a 14% dividend to its cooperative owners [11].
In testimony before the same committee, Harvey Rosenfield, the author of California's Proposition 103 also had positive words for USAA in contrast to other insurers:
Moreover, a huge portion of the premium dollar goes to waste and inefficiency on a massive level. For example, according to Best Aggregates and Averages (1988) 23 cents of every dollar of auto insurance Fireman's Fund wrote in 1987 went to claims adjustments and defense lawyers' fees and 28.9 cents went to agent's commissions, executive salaries and other overhead expenses. Contrast that with USAA, a company which itself does exceptionally well in the insurance business and is appreciated by its customers for its excellent service. It paid 12.3 cents per premium dollar to its lawyers, and 6.9 cents per dollar to overhead [15].
USAA has continued to provide service to its members with integrity and distinction, but also has consistently made profits to protect the members' interests and to keep products at a level as inexpensive as possible. In Appendix 1 is a chart which dramatizes the tremendous growth in USAA under General McDermott from the end of 1968 to 1988. As this article goes into publications, the dramatic growth has continued in all the areas noted. For example, USAA's owned and managed assets now exceed 16 billion dollars and USAA has almost 13,000 employees. A National Leader for Automobile Safety McDermott has long been a proponent of vehicle safety. For over a decade he has worked with automobile manufacturers, insurance institutes, private sector businesses, local and national politicians, and the media to secure improved automobile safety equipment and better safety legislation for the country. To this end, he has also initiated two separate safety campaigns, one in 1982 and one in 1988. These addressed the problem of deaths, injuries and property damage incurred through unsafe driving and inadequate safety technology. General McDermott held a national press conference on safety in Washington, D.C. on January 5, 1982.. He also made an appearance on the McNeil-Lehrer Report on the next night. During the interview, he further touted the use of passive restraints and called for prompt governmental acceptance of more rigid safety standards for automobiles. During the 1982 safety campaign, McDermott made history by making USAA the first insurance company to publish a comprehensive report on the comparative safety of domestic and foreign automobiles. The report, produced in conjunction with the Insurance Institute for Highway Safety (HHS), showed the statistical results of actual automobile crashes involving injuries and deaths. It listed which automobiles were most "crashworthy," and which were more likely to cause injury or death in a crash [10]. Another aspect of the first safety campaign was General McDermott's testimony at the November 28, 1983, Department of Transportation Hearing in Los Angeles, California. The thrust of his testimony was to point out the indecisiveness and ambivalence with which the government has treated auto safety by not mandating better passive restraint technology - air bangs in particular -- to automobile manufacturers. As not only an insurance company executive, but also a father and grandfather, he implored haste in implementing improved safety legislation and recommended "a pragmatic, action-oriented approach to get passive restraint technology into existing cars and built into the net generation of automobiles" [9]. An even more extensive and far-reaching safety campaign known as DRIVE SMART was sanctioned by General McDermott in 1988. At the campaign kickoff on Wednesday, March 30, 1988 at a press conference in Washington, D.C., General McDermott announced that USAA would imitate the most extensive package of auto insurance discounts and incentives ever offered [3]. These incentives and discounts were recognized by then-Secretary of Transportation Jim Burnley as bellwether actions in corporate leadership. He stated in a message at the press conference, "I am delighted to say that General Robert F. McDermott, Chairman of the United Services Automobile Association, has accepted the challenge and in turn is setting the standard for the insurance industry. This is not only a fine example of private sector initiative, but of the leadership industry can provide and credibility it can lend in developing public support for new safety technology. " Ralph Nader also stated that "USAA was setting the pace for Allstate, State Farm, Travelers and others" [12]. Included in USAA's program were an Air Bag Safety Bonus and Air Bag Replacement Guarantee, an Air Bag Premium Discount, a Child Safety Seat Discount, an Anti-Lock Brake Discount and other incentives as well. The DRIVE SMART campaign began in San Antonio, Texas, in early April and will continue through 1989 and beyond. In the campaign, USAA spearheads a group of 35 business, community, educational and religious organizations pledging to commit time and resources to reduce traffic injuries and fatalities on American roads. The purpose of the campaign is multi-dimensional, informing people on the four general topics including responsible driving, the use of restraints, proper vehicle maintenance, and buying "smart cars" - cars with the latest safety features. To this end, General McDermott authorized USAA's development of a variety of materials and services to support the campaign. These included billboards, bench ads, taxi and bus ad boards, safety-related videotapes, dozens of public service announcements (PSAs) for radio and television, posters, brochures, bumper stickers, decals and safety displays. Many of the materials were produced in English and Spanish to widen their audience appeal. These materials were also made available without USAA logos so that organizations could use their own logos or message. USAA made these available at no cost to any organization willing to promote the idea of automobile safety. Soon the campaign took on a statewide and nationwide focus. The Texas Highway Department adopted the theme and expanded it to DRIVE SMART TEXAS, placing DRIVE SMART TEXAS signs near entrances and exits of high-traffic areas in the state. Through the cooperation of some business sector participants (e.g. Taco Bell and 7-Eleven), the campaign entered regional and national markets through television advertising and distribution of USAA-produced DRIVE SMART materials at their locations. Public service ads in magazines were then focused toward both military and civilian communities throughout the country. McDermott carried the safety message personally to a national audience in September 1988 when he keynoted the second National Injury Control Conference. The conference was sponsored by the U.S. Center for Disease Control, and about 500 physicians, researchers and educators attended. Additionally, a USAA-sponsored DRIVE SMART AMERICA display appeared at both the National Conference of State Legislatures in Reno, Nevada, and the U.S. Hispanic Chamber of Commerce 1988 National Convention in Washington, D.C. for the purpose of enhancing political interest on safety issues. In all, a total of over 6.5 billion nationwide media impressions for DRIVE SMART were made in 1988. In January of 1989, Diane Stead, Administrator of the National Highway Traffic Safety Administration wrote a letter to McDermott. In it she said she wished "to personally commend you on the actions taken by USAA throughout the year to increase the safety of our nation's motoring public" [22]. McDermott's Contributions to San Antonio In a tribute to Robert McDermott recently, Mayor Henry Cisneros of San Antonio stated that "when the economic history of San Antonio in the 1980s is written, the most influential individual will be him (McDermott)" [4]. After his arrival in San Antonio, McDermott was selected as President of the Greater San Antonio Chamber of Commerce. In this position he initiated the San Antonio Economic Development Council which began a drive to bring business development into San Antonio. When the Hispanic population felt they were not being included, McDermott founded United San Antonio which pulled all the disparate community groups together. In the 1980s he was responsible for getting an undergraduate engineering program at the University of Texas at San Antonio first and later graduate programs in the sciences. With this groundwork laid, he began moving in a formal sense to make San Antonio a biotechnology center for the future. He founded the Texas Research and Technology Foundation, which was established to develop a Texas Research Park. He also helped arrange for the first major gift of $15,000,000 for the park from H. Ross Perot. Today he is regarded as the key influential business leader in San Antonio. In addition to his personal contributions, McDermott believes that USAA should be a corporate good citizen, and it has been so. USAA's Volunteer Corps gave over 30m000 volunteer hours to San Antonio just last year and USA is the city's largest private-sector United Way contributor. Although USAA employees constitute only 2% of San Antonio's work force, they contributed 10% of the total monies collected by United Way. Promulgating Ethical Ideals In addition to what McDermott has done to instill a system of corporate ethics and to integrate it into normal business activity, he has made two other major contributions as well. He is the Chairman of the International Leadership Center Foundation in Dallas. This Foundation supports Leadership America, recognized as the premier off-campus leadership training program for college students in the country. The mission of the Foundation has four principal parts: -Providing ideas, advice and personal involvement to aid the Center in broadening the vision of current and emerging leaders by improving their leadership capabilities; -Formulating policies that insure excellence in all Center activities; -Promulgating high traditional American moral and ethical values that underlie successful leadership through all Foundation and Center activities; -Designing, developing and implementing plans that insure the financial stability and growth of the International Leadership Center. Participating students have all agreed that the Leadership America Program ahs had a major impact upon them because it shows the importance of ethics and values as a foundation for leadership. As a second major action, USAA is underwriting a series of four nationally-televised programs under the title "Raising Good Kids in Bad Times." Produced by Emmy Award-winning producer Arnold Shapiro, the first program, "See Dick and Jane Lie, Cheat and Steal: Teaching Morality to Kids," will air on U.S. Commercial stations in April. Tom Selleck will host the program. Other films will include "The Truth About Teaching," hosted by Whoopi Goldberg, "The American Dream Contest," hosted by Michael Landon, "New & Improved Kids," with Loni Anderson, and James Garner holding the reins on "Take Me to your Leaders." The series has already been contracted by over 98% of the national television market. Robert F. McDermott's achievements in his chosen careers and his efforts on behalf of the insurance and financial services industry, his community and our society and nation resulted in his selection to the American National Business Hall of Fame in 1989. His achievements underline that personal ethical conduct, integrity and respect for God and country provide a foundation for success when carried into the world of business. *This article by Paul T. Ringenbach was originally published in The Journal of Business Leadership, Volume 3, Number 2, Summer 1990. *Copyright 1990. The American National Business Hall of Fame. All rights reserved. No portion of ANBHF may be duplicated, redistributed or manipulated without the expressed permission of the ANBHF. REFERENCES 1. Alster, Norm. (1989, February 13). What flexible workers can do. Fortune, p. 64.2. Best's Insurance Reports. (1989). USAA received an A+ (Superior) rating in Best's Property-Casualty (p. 2625) and Life-Health (p. 2264). Oldwich, NJ: AM Best Company.3. Burnley, James. (Secretary of Transportation). (1988, March 30). [Remarks at a press conference to announce the beginning of the DRIVE SMART safety campaign.] Washington, D.C.4. Cisneros, Henry. (Mayor of San Antonio). (1988, October 6). [Remarks given at the dedication of USAA Towers]. San Antonio, Texas.5. Elkind, Peter. (1987, Spring). McDermott's mission. Best of Business, p. 8-15.6. Hamm, Lt. General Charles R. (Superintendent of the U.S> Air Force Academy). (1988, November 4). {Remarks at the dedication of Arnold Auditorium, United States Military Academy]. West Point, New York.7. IDC Financial Publications, Inc. (1989, February). S&L - Savings Bank Financial Quarterly, p. 82.8. Mack, Toni. (1988, July 25). They have faith in us. Forbes, p. 82.9. McDermott, Robert F. (Chairman USAA). (1983, November 28). [Testimony before the California Department of Transportation]. Los Angeles, California.10. McDermott, Robert F. (1982, January 19). Americans are dying for better gas mileage. Wall Street Journal, p. 13.11. Nader, Ralph. (Founder of Public Interest Research Group). (1988, December 6). [Testimony before the Commerce, Consumer Protection and Competitiveness Sub-Committee, U.S. House of Representatives]. Washington, D.C.12. Nader, Ralph. (Founder of the Center for Auto Safety). (1988, March 20). [Response to the announcement of USAA safety incentives]. Washington, D.C.13. Nussbaum, Bruce, et. Al. (1985, January 21). The new corporate elite. Business Week, p. 63.14. Reich, Kenneth (1988, June 7). USAA again ranks first in satisfaction on auto insurance. Los Angeles Times, p. 3.15. Rosenfield Harvey. (Architect of California's Proposition 103). (1988, December 6). [Testimony before the Commerce, Consumer Protection and Competitiveness Sub-Committee, U.S. House of Representatives]. Washington, D.C.16. Staff. (1970, June). Consumer Reports, p. 433.17. Staff. (1977, June). Consumer Reports, p. 377.18. Staff. (1980, September). Consumer Reports, p. 543.19. Staff. (1984, September). Consumer Reports, p. 508.20. Staff. (1988, October). Which companies offer better service? Consumer Reports, p. 628.21. Staff. (1989, February/March). Twenty-first century mail communications system on-line at insurance concern. Mail: The Journal of Mail Distribution, p. 16-17.15.22. Stead, Diane. (Administrator of the National Highway Safety Administration). (1989, January). [Letter to Robert F. McDermott, USAA]. San Antonio, Texas.23. Turco, Frank. (1988, March 24). Ratio of complaints against 19 insurers stirs state scrutiny. Arizona Republic, p. c7.24. USAA Public Affairs Department. (1985). A mission of trust: USAA Corporate culture. (San Antonio, Texas: USAA Publishing Services.25. USAA Strategic Planning and Analysis. (1988). Strategic planning guidance document. (San Antonio, Texas: USAA Publishing Services.26. Yourdon, Ed. (1989, February 2). Exemplary data processing organizations. American Programmer, p. 26.27. Zemke, Ron, Shaaf, Dick (1989). The service edge. (Foreword by Tom Peters). New York: New American Library.
nt in the service USAA could provide to its members because of the improved education and training the employees received. Second, was the great morale factor it proved to be. McDermott began off-duty educational programs offered in USAA facilities and paid 100% tuition reimbursement for employees attending colleges and university courses. It did not stop there. He also paid for professional development courses leading to professional designations such as CLU (Chartered Life Underwriter) and CPCU (Chartered Property and Casualty Underwriter). McDermott's centralized training concept has provided USAA with a broad diversity of training from entry-level training for claims and policy service personnel to management development courses to make technical personnel ready to assume supervisory positions. The Management Information Seminar provides senior managers a forum to learn about other divisions of the company and to mingle with other senior USAA executives and senior managers. The result is a free flow of ideas across divisions to help all the diverse elements be of maximum benefit to each other. USAA Growth and Diversification In the first long-range planning meeting at Hamilton, New York, McDermott had set out his vision of growth for USAA. The first order of business was to strengthen and expand the Property and Casualty business which was the heart of the company. Developing the ethical and service policy and strengthening the employees were critical parts of the foundation for growth as was development of computer systems to support the growth and improved service. USAA expansion in the Property and Casualty area had two parts - expanding the geographical area in which USAA could sell insurance and capturing a larger portion of the targeted market. When McDermott arrived, USAA could sell auto insurance in 48 of 50 states, but was able to sell homeowner policies in only 31 of 50 states. As a reciprocal insurance exchange that sold only to military officers this was a problem. When officers were ordered to states where USAA could not sell, membership suffered. McDermott established a corporate legal staff and charged it with getting USAA licensed for both lines in all states. With this underway, he initiated USAA's first corporate marketing staff and charged it with bringing in more members. The combination of the two initiatives resulted in USAA being licensed for auto and homeowner policies in all states, and as of the end of 1988, the penetration of the active duty officer market had reached 97%. When one eliminates those who can not be insured, such as those stationed in Warsaw Pact countries, and those without cars, USAA has close to 100% of those active-duty officers it is willing to insure. Today USAA is the 6th largest private automobile and homeowners insurer in the United States. From the beginning, McDermott combined his own sixth sense with those of members' desires to diversify USAA and add lines he believed could be supported. One of the key innovations was his decision to offer automobile and homeowners insurance to children of members through a new USAA subsidiary. With USAA Board of Directors' support, the program went into full swing and is now the fastest growing portion of the Property and Casualty business at USAA. At the end of 1968, USAA had only a small life insurance program in addition to the property and casualty insurance. As result of formal and informal surveys of members, McDermott wished to expand USAA offerings. Under the original bylaws, this was prohibited and so he had to convince the USAA Board of directors to change them to permit diversification. By virtue of his own persuasion and the desires of the membership, the Board reluctantly agreed. Its reluctance stemmed from the tradition-bound mind-set of those wishing to sell property and casualty insurance only. In 1968, USAA stood 504th among American life insurance companies in terms of life insurance in force, but that was soon to change. At that time, USAA offered only whole life insurance policies. Over the years other products were added to the line, and the life insurance ranking climbed slowly at first and then with increasing intensity. Now the USAA Life Insurance Company offers a full range of life insurance products an has added a number of health insurance products as well. In 1976, a line of annuities was also added. Today USAA stands 55th in national raking based on the dollars of ordinary life insurance in force. Success in life insurance led to further entries into the financial services area. Under the USAA Investment Management Company (IMCO), begun in 1983, 12 no-load mutual funds were added over time, each tailored to different member desires and needs. Some of them include money market, growth, tax-exempt, international and precious metals funds. Today, USAA stands 34th in national mutual fund group ranking. In addition to the mutual funds, a real estate division has offered Real Estate Limited Partnerships. Among the youngest of the financial services offerings, the Real Estate Division turned a profit in 1988 and has great future promise. USAA also added a Discount Brokerage, which now numbers 38,000 active accounts and handles stock transfers for IMCO, cutting USAA costs. Almost from his arrival at USAA, McDermott had wanted to open a bank, but various rules and regulations prohibited insurance companies from doing so. In the early 1980s, deregulation of financial institutions and other legal and regulatory provisions made it seem possible for USAA to open a savings and loan institution. In October of 1983, a window of opportunity opened and McDermott moved quickly. On December 30, 1983, USAA capitalized its new savings and loan with $20,000,000 and opened in a renovated trailer building on the USAA property. USAA members joined at a rapid rate. One pundit at the time pointed out that USAA members felt very strongly about the integrity of USAA and its backing of the savings and loan since they sent money to a trailer pointed at the Mexican border. Today, only six years later, the USAA Federal Savings Bank has over $1 billion in assets and has received top marks from independent raters [7]. Another sign of USAA members' strong faith in USAA and what it backs is the USAA Federal Savings Bank's experience with the MasterCard. USAA sent 240,000 pre-approved credit card applications to members. Industry experts predicted that 10-12% might be a reasonable return based on USAA reputation. In the first couple of months, USAA members returned applications to establish a return rate of over 50%. Today over 1 million USAA MasterCards are in use, and USAA's national standing is fifth in sales volume for all institutions issuing a MasterCard. USAA purchased another financial institution in Utah in 1988 and opened the FDIC-insured USAA Federal Savings Association with a gold MasterCard following shortly thereafter. In 1988, in another McDermott innovation, USAA opened the USAA Towers, a luxury retirement center in San Antonio. The 23-story, $75,000,000 building has won high ratings from the retired community and the retirement industry. Many of the strides McDermott has made in the financial services area have produced accolades from members and have received praise from a variety of respected financial institutions. In 1987, the Nilson Report and NBC's Today Show proclaimed the USAA MasterCard as the number one buy in the country. Many of the mutual funds have been praised as excellent investments in national publications such as Fortune and Money. The USAA Federal Savings Bank was given ICD Financial Publishing's first-ever "perfect" rating for an institution with assets of over $50,000,000[7]. USAA Life Insurance Company has received A.M. Best A+ rating since 1975 and the Property and Casualty Division for much longer [2]. The success of all of these USAA programs has been due to the excellent relationship of mutual trust and confidence built up between USAA and its members based on the ethical conduct and integrity of the customers and the company itself. "Service to the Member" is the watchword continually espoused in USAA and is the clearest expression of USAA's positive relationship with its members. That "Service to the Member" philosophy implanted by McDermott has continued during USAA's rapid growth, and a key element of that service is member contact. As a direct-writer, USAA relies primarily on telephone and postal communication with its members. Over the years, McDermott has guided the staff to a communications status - technologically and from the standpoint of efficiency - that ensures members have fast and direct contact with USAA. In 1969, about 99% of USAA's member contact was by mail. Today USAA relies more on the immediacy of telephone contact. Its employees receive about 17.8 million calls a year, and average daily phone volume is about 65,000 calls. With over 1,000 lines, USAA is the largest single point of termination for WATS lines in the country. Still, USAA continues to rely heavily on use of the mail. It is the nation's largest direct mailer in terms of sales volume and fifth largest internationally. A staff of more than 450, full- and part-time, handle approximately 27 million incoming and 73 million outgoing pieces of mail annually. Technology, combined with employee morale and esprit de corps, ensures USAA members receive the best possible communications service [21]. How well USAA is doing in providing service to its members can be measured in a number of ways. The steady growth of USAA and success of its diversification efforts are surely one measure. Another are surveys USAA administers to members which show great member satisfaction. It would be easy to write off USAA's surveys of its own members, but the findings have been confirmed in a number of other places by different institutions. For example, the October 1988 issue of Consumer Reports picked USAA as one of the best three companies in the nation in terms of service. The other two were much smaller firms [20]. This was the 4th such judgment by Consumer Reports over the past 20 years [16, 17, 18, 19]. USAA had the best record in the state for both homeowners and private auto insurance in terms of the fewest number of complaints per one thousand policyholders [14]. The Arizona Insurance Department had the same findings for USAA personal lines insurance [23]. In an industry categorized as a "service Industry", USAA is clearly one of the national leaders due to the leadership of Robert McDermott. In its January 21, 1985 issue, Business Week selected 50 leaders who were representative of the new corporate elite. Of the 9 selected in the "service Gurus" category, McDermott was the only CEO of an insurance firm selected [13]. In the July 25, 1988, Forbes, McDermott said in an interview with Toni Mack that , "if you put service number one, everything else will follow," and so it has [8]. Most recently USAA was among 101 companies singled out in the 1989 book The Service Edge by Ron Zemke with Dick Schaaf [27]. In his foreword to the book, Tom Peters said that the 101 companies described will hopefully have "good management at the top, and throughout any firm, to appreciate just what an unstinting dedication to service can amount to - and to challenge each and every one of us about making such a commitment in our own outfits" [27]. It is clear that providing great service to its own members, USAA has caught national attention as well. McDermott's leadership qualities, within and outside the insurance industry, and his concern for community and country were also reflected in a Best of Business Quarterly interview that appeared in the journal's Spring 1987 issue [5]. Fiscal Management Providing great service has not been done without consideration of the bottom line. USAA has consistently maintained the lowest cost/expense ratio in the insurance industry and has paid dividends to members every year. In the aftermath of the insurance revolt in California in the November 1988 election, consumer advocate Ralph Nader testified before the House Commerce, Consumer Protection, and Competitiveness Subcommittee on December 6, 1988.Although Nader excoriated the insurance industry, he had positive testimony for USAA. He stated:
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The most important thing to understand about Whyville really, is that it’s a place full of kids. It’s a virtual city that belongs to the kids who come from all over the world to have fun. The kids consider this their own town, and they call themselves Whyvillians.
To become a Whyvillian, you create a Whyville persona. In this screen, and every other screen you’ve already seen, for example, each face is a Whyville citizen. To become a Whyville citizen, you create a persona, the most important aspect of which is your face.
You can see here that the faces are varied and very creative. Here’s an amoeba. Here’s someone driving a car. Here is someone wearing a style known as ‘Goth’. The ungliest citizens you see around are in fact us, the city workers.
