Equity, Performance, and Employee Compensation

Every employee at UW-Madison believes they deserve to be paid more, and the vast majority are right. It's time we recognize and begin to address the fact that most workers across Wisconsin are underpaid--in UW and far beyond. Increasing compensation for everyone in the bottom half of the income distribution should be a state and national priority, especially given the evident and long-lasting consequences of widening income inequality.

Unfortunately, the HR Design plan at UW-Madison is nearly silent on the issue of raising compensation for all currently underpaid employees. Instead, it focuses on how compensation levels will be determined and how raises will be distributed when money is available.  It does nothing whatsoever to make sure more money is available. Remember that-- don't allow the desire for more pay to lead you to blindly accept the terms of a plan that doesn't bring more pay but rather changes the terms on which you are paid.  

The biggest change related to compensation in the HR Design is the new and explicit attention to "market competitiveness" in setting compensation levels and determining raises. This is a response to the status quo, which has been identified as a problem with this statement:

"State law prohibits UW–Madison from giving unclassified employees performance-based pay raises unless they are part of an annual pay plan—and there has not been a pay plan in four years" (p. 24).  

What exactly is the problem?  Is it that performance pay cannot be given outside of annual pay plans? Or is it that there hasn't been a pay plan in 4 years? These are two separate issues, and should be tackled separately.  The first is about pay equity, and the second is about the consequences of austerity agendas.  Current discussions conflate these issues-- employees are upset about the lack of a pay plan and thus some are desperate to agree to anything that leads to pay, for anyone, no matter the consequence. That's a recipe for disaster.

It seems the HR team has concluded that the former issue must be addressed and therefore proposed mechanisms for awarding performance pay even in the absence of a pay plan by calling for a model that "balances market competitiveness and internal equity."  Essentially, instead of developing a new model for UW-Madison that leverages scarce resources for fair and humane treatment of all employees, this model opens the door to further growth in salary inequities across and within units.  It does this by promoting salary increases based at least partly on market competitiveness without explicitly requiring attention to internal equity, as part of both the compensation philosophy and the roles and responsibilities of managers.

The reasoning provided for this approach is fallible. We are told that employees want their pay based on market competitiveness-- yet the survey questions utilized in the employee polls ask about these issues in isolation. A better approach would ask employees to rank their preferences-- a pay plan distributed equitably, with some additional pay for performance; pay distributed inequitably, with no overall pay plan provided, etc. In other words, when presented with a false choice, it isn't at all surprising that employees choose to protect themselves. But what we're given here isn't our only option.

A review of extant research leads me to conclude that pay for performance has uneven effects in environments like UW-Madison. The main issue at Madison and across Wisconsin is that pay levels are low-- not that they aren't tied to performance.  Tying pay to a combination of performance and equity will reduce, not enhance, the transparency of the compensation process, and thus likely increase the sense of injustice that already pervades campus.  Basing pay on an unspecified assessment of market value will lead employees to feel even more left out of the process, making them even unhappier. In other words, it is likely that HR Design will do nothing to improve the feelings among UW employees that their compensation levels are unfair and inappropriate.   It may even make things worse.

As an alternative, I therefore propose the following revisions to the HR Design's compensation plans:

(1) Make internal equity a priority in the setting of compensation by describing it as an explicit priority central to the compensation philosophy and part of the compensation function's roles and responsibilities.  Educational institutions are unique environments that place a priority on collaboration, including across disciplines, and it is for the good of our teaching and research at UW-Madison that we be allowed to prioritize internal equity when distributing any and all forms of compensation.  This is an essential revision of state statutes and one we should fight for.

(2) Clearly define the terms "market," "performance," and "merit" in the plan and delineate among them. Be clear, which types of pay result in base increases, and which do not?

(3) Provide explicit guidance to managers working with employees who work across units or in interdisciplinary settings. These areas are where pay based on markets are likely to do the most harm - imagine the sociologist teaching alongside the economist in the same department, where the latter professor (most often a male) out-earns the former (usually a female) 2 to 1. It happens under our current system, and is demonstrably counterproductive. These are the types of problems we can and should fix in order to enhance our ability to retain workers and ensure their flourishing.

(4) Include all employees-- included contracted employees--in the plan to provide a living wage.
 The only people who will clearly benefit from HR Design in terms of current base pay are those at the bottom of the pay scale who will remain university staff and will now receive a living wage under this plan.  The number of people meeting that description is not mentioned in the plan.  That number should be considered in relation to the likely number of jobs that are currently university staff jobs and will instead be contracted out to save the university money. The City of Madison pays living wages to all contractors on contract over $5,000.

UW-Madison should take the lead in reducing income inequality in Wisconsin, not exacerbating it. We are national leaders when it comes to our collective devotion to our work, and that strong intrinsic motivation should be leveraged whenever and wherever possible.  No, it should not be exploited--as it now is-- to justify underpaying us. But do not let the poor practices of our neighbors compel us to lose what's great about our community--we have no desire to become a "winner take all" society.

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Back to College

UW-Madison students are happy students, as we recently learned from the Huffington Post. This high ranking of our institution is a coup when it comes to attracting more applications, and since we rise in rankings by rejecting more applicants (and rightly care about happiness), this will likely be seen as a good thing.

Of course I'm delighted that our students are happy. Pleased as punch that they rate our sports culture and political activity highly (a 9 and an 8 out of 10 respectively), and the opportunities for things to do "endless."  It's wonderful-- they are spirited, free-thinking, and enthusiastic, and as all of my students well know, I love to teach them.

But with love (yes, really) I need to offer a little constructive critique. We have some things to work on and they directly pertain to the educational mission (and indirectly the affordability mission) of our school.   In that same set of rankings we scored just a 6 on "professors accessible" and a 7 on "intellectual life."  Maybe I'm hopelessly old-fashioned, but those are the things that students and families are purportedly paying tuition for-- courses and learning.

Or not.  I suppose, really not.  If you take a look at the latest video produced by the UW-Madison Administration, apparently my framing is not theirs, and a high-quality education offered by professors is not the message Madison seeks to attract and retain students with.

Here is WELCOME BACK to UW-MADISON.  It's definitely maximizing the sports culture rating. But I'll buy you a scoop of Babcock ice cream if you can glean any sense of an academic message about school from it.

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Renewing the Commitment

This piece is cross-posted from the Chronicle of Higher Education, where it originally appeared as part of a forum on higher education and inequality. I highly recommend reading the full set of posts contained on the COHE website.

In 1947 the historic Truman Commission called for national investments in higher education to promote democracy by enabling all people to earn college degrees. Subsequent expansion of community colleges, adult education, and federal aid occurred not in the name of economic stimulation but to reduce inequality and further active citizenship.

Those ambitions have been steadily corrupted. Today the Tea Party casts the college-educated as snobbish and fundamentally disconnected. Many four-year colleges and universities reinforce that perception by focusing on rankings and alumni satisfaction rather than affordability and national service. Educators speak about business objectives, maximizing revenue through models that charge high tuition and give high aid to needy students, and using a meritocracy narrative that denies the strong role played by a family's ability to pay. The results are stark: Among high-achieving students, just 44 percent of those whose families are in the bottom 25 percent of annual income attend college, compared with 80 percent of those whose families are in the top 25 percent.

In this new world, market-based solutions increase inequality by design. As David F. Labaree documented in Someone Has to Fail, credentialing has replaced learning, and as a result, many students are derided for being what the authors Richard Arum and Josipa Roksa dismiss as Academically Adrift.

The current model ensures that private returns in the form of high-paying jobs accrue only to some, and it justifies minimal public investment in education.

Corporations act as gatekeepers, insisting that only degrees from elite colleges matter, while refusing to pay higher taxes to adequately support public higher education. It is to their advantage: They benefit financially from the for-profit colleges that are filling a void they helped create. The reality is cruel: Many families now dream the same college dream families always have, but run in place in their efforts to achieve it. Heavy debt even drags some backwards.

Colleges and universities vigorously participate in this process. As they lose state support, public flagships turn inward rather than to their communities, focusing on the self-preservation and pursuit of prestige that led them astray. Private universities help their public counterparts fail by promoting idealistic standards of "quality" and practices (such as offering grants rather than loans) that the public institutions simply can't afford. Too many leaders of public universities make common cause with elite private colleges rather than with their public brethren.

Underneath it all resides a fear-driven backlash against educational and economic opportunities for people of color and the working class. Since the civil-rights movement, and especially during President Ronald Reagan's tenure, a focus on private rights and personal responsibilities has replaced concern for social welfare. Remarkably, Reagan convinced the nation that individuals should pay to achieve the American dream. No president since has managed to combat that narrative. In today's focus on paying for performance and metrics, we hear echoes of President Bill Clinton's efforts to reform welfare by telling poor mothers to work for it.

Such rhetoric is fundamentally un-American. As John Dewey reminded us, sustaining democracy requires that we collectively provide for all children what we want for our own children. Anything else simply isn't fair. The politics of austerity have resulted in a paucity of active citizens pursuing democratic ideals by maintaining and expanding public investments. In that climate, New York State stands out for bucking the trend and promoting public higher education with limited reliance on tuition. So, too, do the university presidents urging President Obama to put into effect maintenance-of-effort requirements—requiring states to finance public colleges at a minimum level—to renew the social compact on which our great higher-education system was built. They are bravely rejecting the claim that private markets hold the key to great public needs. In doing so, those leaders may help bring the country back together.

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Wisconsin Supports UVA

The nation is waiting on the UVA Regents to do the right thing.  There is plenty of action afoot at UW-Madison to weigh in on these key issues of money and power, and you'll see more in the coming days. In the meantime, let's make this point loud and clear whenever and wherever possible.

‎"In solidarity with our colleagues at the University of Virginia, we affirm that a public institution of higher education is not a business."


Here are initial signatories-- please comment on this post to add your voice.

Gloria Ladson-Billings, Kellner Family Chair in Urban Education, UW-Madison
David Ahrens, President, Wisconsin University Union
Charity Schmidt and Matt Reiter, Co-Presidents of the TAA
Seth Hoffmeister, President, United Council of Students
Beth Huang, Incoming Vice-President, United Council of Students
Sara Goldrick-Rab, Chair, UW-Madison Committee on Undergraduate Recruitment, Admissions & Financial Aid

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More on the Efforts to Marketize UW-Madison

A few months ago I wrote about the HR Design process at UW-Madison.  Some readers questioned the accuracy of my assertions.  We have new confirmatory information obtained via open records requests.  It seems the Huron Engagement has been expensive, indeed.   In the following memo, the Wisconsin University Union summarizes what we now know. It's a bit long, so I have underlined and bolded key points.


To: Interested campus employees
From: WUU
Date: June 20, 2012
RE: Memos from Huron Consulting Group

As you may know, Wisconsin University Union (WUU) has filed a series of open meeting and open requests to UW administration to gain access to information on the HR Design Project (the Project).  We initiated these requests because we believed that the effects of the Project will likely be far-reaching and long-term and that despite the administration’s attempt to project a gloss of participation and transparency to the process, it was fundamentally top-down and opaque.

When the administration finally complied with our request, we were disappointed, though not surprised, that most of the documents added little if anything to our knowledge base. For example, minutes of meetings described the topics under discussion but gave no account of the discussions themselves. The exception to this lack of transparency were memos from Huron Consulting Group (HCG) to the Project managers. These memos very briefly summarized the week’s events and posed concerns and questions on the future work of the Project.

For this reason, a month ago, we filed a new request for records specifying HCG memos to administration along with a request for their billings to the UW. After a month wait, we received the records this week.

The memos did not disclose a “smoking gun.” Instead, they confirmed much of what we know about the potential effects of the recommendations.  The following are excerpts of the HCG memos:

(5/3/2012) The work teams are proposing a “contemporary” but not radical approach to HR management at a research university. The model puts greater emphasis on performance and employee development and shifts the focus from internal equity to external competiveness.

The implied shifts for HR management implied (sic):
• Greater emphasis on data and analysis (over set rules)
• Greater reliance on the skills of managers/supervisors
• Ongoing development of central HR as a center of excellence

I (from the HCG staff member) don’t have a good sense of the project team’s appetite for this type/level of change. If this does turn out to be the direction you choose to go, substantial pieces of it will be phased in over time. Still, it represents a significant amount of change that will to be championed by OHR and supported through the application of potentially significant resources.


(5/10/12) Compensation, Performance Management and Workplace Flexibility all have suggestions related to boards or committees being involved in appeals of decisions that impact employees. Ongoing governance (small “g”) of HR functions and processes will be a topic that we need to address over the summer. This is an area where I expect that the campus community will want more specificity in the fall.

Understanding our resource requirements for the summer will evolve as our project plan evolves. At the same time, I would suggest that adding resources is an opportunity to start to build the long-term capabilities of OHR in areas such as compensation.

*****

These excerpts confirm a few of the central objections we have made in prior analyses:
• Salary equity will be abandoned in favor of labor market “competitiveness.”

• Compensation based on labor market analysis will require a substantial on-going investment to build capacity. It is difficult to estimate the cost for new HR staff members or more likely, consultants, to conduct wage and benefit analyses for hundreds of job titles.

• Supervisors and managers will have substantial new powers due to the major shift in compensation responsibility along with new discretionary authority in promotion, hiring, etc. This will require a major investment in training and, one would hope, oversight and supervision of the supervisors. What will be the safeguards against favoritism, discrimination and other adverse effects?

• HCG advises that, that because these new offices will be “substantial”, HR should build its new “empire” slowly and incrementally so as not to call attention to its long-term costs.

• Committees acknowledged that some form of dispute resolution methods will be necessary but have either not specified how this might occur or recommend that the dispute process be overseen by HR. The HCG seems to recognize that employees will likely want better answers.

Consultant Costs:
Billings to UW from HCG:
Nov. 2011: $32,751
Dec. 2011: $154,738
Jan. 2012: $61,714
Feb. 2012: $93,798
Mar. 2012: $89,976
Total:     $432,977

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The Travesty at UVA-- Commentary from Judith Burstyn

Today I welcome guest blogger Judith Burstyn, professor of chemistry and former chair of the University Committee at UW-Madison.  She has a short commentary in today's Chronicle of Higher Education, and with her permission, I am printing the entirety of that piece here. Judith was a faculty leader in the battle over the New Badger Partnership, and remains a key player in the efforts to preserve shared governance on our campus. 


Apparently, at today’s University of Virginia, business values trump all. There is a troubling recent trend toward viewing all public institutions in market terms, where value is measured by dollars produced. In recent years, UW-Madison has felt this too, as some of our leaders focus on efficiency via new “flexibilities.” But universities are not businesses. The proper role of universities is the creation of knowledge for the public good, and education of the new generations of citizens and leaders for civil society. Business management approaches are ill suited to nurture the intellectual expansiveness that underlies great scholarship and deep learning. Reliance on narrow, industry-driven curricula simply won’t do. Great universities encompass a wide variety of disciplines, methods and perspectives, irrespective of the marketability of the knowledge they create. Nourishment of the young minds of our future leaders is invaluable to our country, and the University of Virginia and UW-Madison are shining examples of excellence in this regard. I worry that this excellence is at risk.

Without the human capital embodied in their faculty, universities have nothing to offer the students who enter their doors. Great scholars are in high demand, and competition to hire and retain them is fierce. As President Sullivan said yesterday, “At any great university, the equilibrium - the pull between the desire to stay and the inducements to leave - is delicate.” If faculty members feel unsupported in their scholarly pursuits at one institution, they will move to another where there is greater support. The best scholars are the ones with the greatest number of opportunities; therefore, maintaining an outstanding cadre of faculty is an ongoing challenge. Money, as salary or support for scholarship, is only one of many parameters that influence an individual’s decision to stay at an institution or leave it.  And perhaps some of those who threaten UVA know this—aiming to drive out many of the full-time faculty, creating the opportunity to replace them with bottom-line focused adjuncts.

It is far easier to lose stature as a great university than it is to gain it; wise university leaders understand this, and they bring change to their institutions through steady and deliberate engagement of faculty, staff and students. This was precisely the type of leadership that President Sullivan appeared to be providing. Meaningful participation by these stakeholders in institutional governance is a hallmark of universities that are the most productive in terms of scholarship, and where faculty are most likely to happily reside throughout their careers. The courageous opposition to President Sullivan’s dismissal by the University of Virginia faculty senate and its executive committee, and the student council and their leadership, speak of an institution where shared governance is valued and appreciated—if not respected by its Board of Visitors.

The unilateral decision to remove a sitting university president, in the midst of a summer weekend no less, is unprecedented. Despite objections to the firing of President Sullivan by faculty and student leadership, including a vote of no confidence in the board itself by the faculty senate, the board continued its takeover. Acting like a cabal of thieves, they met late into the night, emerging with an egregious decision to replace Sullivan, a sociologist of work, with an interim president: Carl Zeithaml, F.S. Cornell Professor in Free Enterprise and Dean of the McIntire School of Commerce. This action is inimical to their responsibility as the governing board of a university.  In the words of Hunter R. Rawlings III, president of the prestigious Association of American Universities and former president of Cornell, “This is the most egregious case I have ever seen of mismanagement by a governing board.”

Last year UW-Madison engaged in many discussions about the creation of its own governing board. The actions at UVA leave great cause for concern. As University of Michigan professor Michael Bastedo has written, governing boards are increasingly embedded in money and politics, engaging in self-interested decision-making.  They tell us “it’s for your own good” in an attempt at moral seduction, and a desire to appear ethical.  Intelligent communities like those at UVA and UW-Madison do not buy this. And they shouldn’t, if they are to remain the excellent and public institutions we can all respect.

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It's Time to Wake Up

The smoldering ashes of public higher education can be seen and smelled across the nation, as the once much-lauded, now much-decried University of Virginia goes up in flames.

Pardon my French, but it's about time everyone opened their eyes, ears, and mouth. This stuff stinks!

It's impossible to count how often during the past several years those of us residing at her sister public flagships have heard UVA held up as a model, a "best-practice" of public higher education for the 21st century.  Haven't you heard all about her wondrous break from state government that allowed her the "flexibility" and "innovative freedoms" to raise tuition while expanding affordability, thriving when the rest of us starved?  We at UW-Madison got an earful of it from ex-chancellor Biddy Martin during the fiasco known as the New Badger Partnership. And true believers abounded.

As I said then, that emperor has no clothes.  UVA hasn't been a true public university in some time. It is not a democratic institution where the voices of all constituencies are honored. It is not succeeding in expanding affordability with Access UVA, an ineffective sinkhole into which millions of dollars have been thrown.   It is not flourishing with strong academic programs and a great faculty retention rate.  It is not innovative, not independent, and not a model.  No, it is a rich man's campus, run by millionaires and political conservatives, who are driving agendas disconnected from the needs of educators and students. And those elites just got their way, evicting a president who appears to have stood up to their efforts at "strategic dynamism"-- e.g. the crappification of all that is good and meaningful, and worth investing in in public higher education.

The people governing UVA are like so many of the so-called "reformers" who think efficiency and flexibility are magical words, and who have conveniently but very wrongly diagnosed the challenges facing colleges and universities as residing in the "inmates" -- i.e. the faculty.  These boards and trustees have an unbelievably disrespectful attitude towards the teachers to whom they pay tens of thousands of dollars to educate their children in what they fondly call an "asylum."

The conservative agenda to defund public institutions at all possible levels has created this situation-- not the faculty.  Don't fool yourself -- those who advocate for "holding the line on college costs"  are not doing it for the good of the students but for the good of the corporations who seek to benefit from the rapid growth of the for-profit sector. It is nothing short of devastating that this agenda had confused the public from embracing a genuine affordability agenda, such as the one I support, that works with educators to find affordable approaches to high-quality education and a system of paying for it that maximizes the enrollment and success of students who will benefit most.

Institutional insiders-- high-level administrator types-- have too-easy embraced (sometimes unwittingly) the conservative agenda because they are paid handsomely to do it.  Heck, if they don't oblige quickly, it's clear they'll be fired! After a bit, they begin to enjoy drinking that kool-aid, since they are ensconced in fancy homes, taken to lovely meals, and sent on jaunts to Paris. It's far easier to embrace the business people than to labor in the trenches doing battle with state legislators who fear college's so-called liberalizing tendencies (what we call "being educated").   It's not surprising that the Board at UVA assumed Teresa Sullivan would go along with them.  It's pretty clear that Biddy Martin would've.   But they made a mistake, since as a sociologist Teresa has a knack for using her skills as an "outsider looking in" as well as an "insider looking out."  She's a sociologist of work and organizations and no doubt saw their scheme for what it was, refusing to play along. After all, she views the university as a "compact among generations," not a compact between business and politics.

She was ousted. Good for her.  Twenty minutes of good hard labor in public higher education is worth far more than decades of pandering to the likes of business school deans, Bob McDonnell and Scott Walker, and wealthy alumni.

Want to be a 'Sconnie, Teresa?  We'd love to talk.

ps. For more superb reading on the UVA drama, I recommend these astute commentaries:

Kris Olds-  a friend, a colleague, a genius
Dagblog -- this guy even uses the word 'neoliberalism'

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Faculty Involvement & HR Design at UW-Madison

As I recently described, UW-Madison is currently going through a process of Human Resources Redesign.  Today at Faculty Senate there was an unexpected and lengthy discussion of the recommendations of the HR working groups that was at times a bit acrimonious (I say unexpected because it was listed nowhere on the posted agenda). The exchanges between the faculty and the administrators--especially Darrell Bazzell and Bob Lavigna--were fraught with apparent frustration and visible annoyance from both men.  At several points, Lavigna said that faculty had been asked several times to participate in the working groups, but few had. Nothing that had transpired, he seemed to suggest, should be construed as an effort to circumvent shared governance, and transparency in the process was always the aim.  Moreover, he responded to faculty questioning, we should know that "our colleagues" had worked hard on the recommendations, and that he, at least, respected that work.

Driving home afterwards, I had a few reflections and observations I hope it's productive to share.

First, it seems all-too-common for our administrators to mistake faculty critique for dismissal of their hard work.  As if when someone says "I disagree or don't like your idea" they are really saying "You didn't try hard to come up with it."  That strikes me as a defensive posturing that's entirely unhelpful, since the critique is leveled at the idea not the person or their effort.

Second, it is also all-too-common for our administrators to bring forth proposals to the community without providing evidence to support those proposals.  The documents from the New Badger Partnership were heavy on big claims and light on data, and the same can be said for the HR recommendations.  As researchers, this is excruciatingly hard for us to accept.  After all, we spend our days seeking proof for ideas.  As such, we expect from anyone bringing forth ideas to say things along the line of "Based on a thorough review of evidence such as X, Y, and Z, we have concluded Q."  Instead, what we were told today was basically "Believe us, we did research--we talked to people in the community at many forums."  Well, that's not research-- it's a convenience sample of anecdotal evidence.  Where is the literature review? Where are the systematic methods? That's what we need to know.

Third, a favorite refrain appears to be "but we asked you faculty to be involved, and you wouldn't do it. Now you can't blame us."  Well...sorta.  But a key  problem underlying faculty non-participation is how administrators treat advice from faculty.  See above-- would you want to participate in meetings where the people you're having discussions with act as though your difference of opinion with them is an assault on their effort? Where they want to have policy discussions based on anecdote? Where they pull the common punch of "this isn't your area of expertise, so what would you know?"  Where requests for data and evidence are consistently met with suspicion?  This is the environment many of us faculty encounter when we serve on university committees.  So some rightly ask, why bother?

Sadly, that creates a vicious cycle-- out of frustration, we don't spend the time on these key administrative tasks that govern our daily work lives, and in turn we become increasingly disenchanted with the place. That goes to simply prove the administrators' point-- when the going gets tough, where are we?

My honest question is this: Does the administration genuinely want the faculty involved? If so, then the kinds of questions we asked at today's Senate meeting should be welcomed. No one should respond defensively when asked for further information -- instead, it should be sought and provided.  Instead of redirecting well-informed questioners to other people, people not present at the meeting, those who proffered their ideas for questioning should offer to promptly ascertain the information and respond.  Data should be plentiful, evidence brought forth, and open debates should ensue.  That's how academia works.  Despite the wishes of some, UW-Madison remains at its core an academic enterprise, not a business. Thankfully, some professors stood up today and  reminded us of that. 

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