The Ed Eppley Experience
The Ed Eppley Experience

Episode 13 · 1 year ago

Navigating, Managing and Leading During Uncertain Times, Part 2

ABOUT THIS EPISODE

Our goal today is to help you leave with a little bit more confidence and clarity, about what you should be doing right now, to manage your business and help your people be able to do their jobs as well as keep your business viable in what can be some really, really tough times.

Welcome to the ED Atle experience. First of all, this is at ephile. Thankyou for joining us. This is version to point, oh of our, navigating, managingand leading in these ofturvulent times. We've got a slightly different panelstoday. Just a reminder, the purpose of the day is to help you leave with alittle bit more confidence and clarity about what you should be doing rightnow, to manage your business and help your people be able to one do their jobs as well as keep YourBusiness Bible Ind. What coand be some rerly really tough times. I think we've got everybody muted,except the panlist. If, for any reason, we call out to Sean headinger WHO'sproducing from Alburquerque New Mexico will help us with that, but our panel today we have Scott Mc comb.Again, CEO of Hartland Bank Scott, you could wave, he did a great job andhelping us understand both SPA and financial things. Last week we gotJANED gracer from Outan San Jose car, California, in that area the bay areashe's going to be back to talk about PR and communications. We've got HollyTurner, she's, the CFO for stampede, consulting and she's, a formerassistant administrator for the SBA and shee brings a legislative andbackground on the SBA that should be able to add t what Scott Talks aboutand then we've got Margaret Soda She's up in Wisconsin today, she's the Afhrfor and labor relations for, PSA airlinesand she's, a friend, ind client, so she's living real time. Some of thechallenges that everybody is faced with and dealing with a staff and she's got a number of locationsthat she's has to deal with. So we're interested to hear from her I'll behere to talk a little bit more about management and leadership and what I'vebeen talking or hearing. I should say from my clients so first half againwell recap wat. Each of us is experiencing and hearing from ourclients and then we'll turn it over to chap questions from from the audience.I'm sure there'll be some spurds based just upon what what they share. So Ithink I've covered everything Joel Castle is, in the background, toreceive your chat, questions and he's going to be feeding them. To me, Joe of I forgot anything comes up we'regood to go good Togo, all right great! Thank you! Scott! You got your fiveminutes. Talk to us all right, good deal, I'm probably on lead. FIVEMINUTES WALK IMG EVERYBODY! Last week we talked about you, no what's comingdown the pike and the carsact and such and so forth. Obviously that pastFriday got sigded inthe law, the lenders and the banks have beenwaiting Yo patiently for that guy whos. The guidance came down this past Tuesday and since Tuesdaywe've been trying to ask for further guys because the the rules that cameout of treasury and the SBA were rather vague, thore's, as you can probablyimagine, behind the scenes in the bank, there's a lot of things that have tohappen. Ter A lot of rules associated with that in the banks with the waythis is working is the money is coming from backs. You know to and guaranteedby the SBA, so the banks are actually out the out their money out theircapital, even though they don't have to use that it's a zero wis risk waitingas far as their capital allocation. So it's not going to deplete their capital.It's still cash onteir BOUC set hat they're going to put out on the streetand they need to note tha specifics about how it's going to be bi paid backwhen it's going to be paid back and such and so forth. So I'm sure everyonewas probably already read a a short paper. You know on most of theparameters we talked about that last week. Some of those changed forwhat wewere expecting and that's the other reason why we needed more clarification.So what we are getting biggest questions that we're getting from ourclients and across really the...

...the stratisphere here is that you knowwhat do I do? What program is right for me? What qualifies that kind of thing? So we are. We areworking with our clients, a Ween, we're suggesting that other folks go to theirprimary financial institution so and to have that question now, there's goingto be some fentaxs jump in the mix I don go. It sacks is plannid on jumpingin the mix and having a a branded product, no cabbages out there there'sall kinds of fintex. If you can't get a response from your financialinstitution, you can jump through. You know, go through those hoops, howeveryou're, probably not going to get the same kind of advice. You would fromyour your banker, okay or your financial person. Other folks too,there's another thing called an agent. So an agent can help facilitate yourdecision and help you to out and gather the necessary documentation. So theagent also gets paid they're going to get PAI by the Bank. They get pai,usually like a certain percentage of the origination, feen that the SBA isgoing to pay financial institutions. So we find your accountant if you have aCPA, those kind of people, some of them areacting as agents and can and can help you facilitate that Han. They aresubsequently making making arrangements with other financial institutions toget you taken care of so define hresthere's different provisions theretoo, so not just the money out on the street, but also the tax consequences.I saw gentleman ask a question about the taxes there. You know if you're, ifyou don't need the money, then there's, but there are provisionsin the cares, act for specific tax provisions. Now I'm not allowed to givetax advice. That's a disclaiming! Okay! I want to give taxi fy, but I can tellyou that that there is an employee retention, credit that Youre you'll beable to use, employ or payroll tax payments that coun be deferredd as wellas net oor. Lebro NEP. Excuse me: Net operating loss provisions now thatyou'll be able to call back okay, so from H, neghteen and nine Tudren andtwenty can refile and take the losses now against past taxes that you pay. Soso you want to make sure that you're qualifying. You know, then you're inYoure, taking the time to figure out what the right strategy is for yourparticular company, because it really varies across the board. So,besides that we are seeing people trying to line up for their Y for their, you know for their assistance. You maywant to check with your financial institution to see if they're, evengoing t participate in the program because of the certain parameter. Someare not so smaller institutions that are not SBA prefer or doing a referralmodel, so I would definitely be calling and finding out. You know whetherthat's the right place, where you to go to begin with, and what resources Ta'regoing to have to help you. Okay. Thank you. Scott Holly, I was GOINNA. HaveJanet go next, but given your connection to the SBA- and I justthink- why don't we just have you go next? If you don't mind, Jan I'm goingto have holly follow up, and you can talk a little bit about what you'rehearing and seeing since it connects to what Scotts talking about you're, muted holly. So I have been talking to the SBA andtreasury officials every day over the past few weeks have great relationshipswith them. They are good people. I just want to say that, but they areoverwhelmed, so this is they've never dealt with anything like this before.If the disaster loan side I've been through disasters. While I was at SBA,it is very stressful on the system. When we declare a nationwide disaster,it just threw them into a tailspin, so they're trying to process disasterloans internally, they've streamlined that process, they've removed a lot ofthe red tape. So if someone is looking at a disastalone- and I do it a lot ofquestions like this Scott mentioned- you know there're, basically, two typesof loans that small businessons are...

...looking at, so SBA is processing thosedisaster loans. They've made it a lot easier now, but it could take a longtime to get your money during hurricanes. It sometimes takes peoplefive months to get their money and usually those are for physicalrepapairs to damage buildings or damage equipment. They rarely do economicinjury loans, it's just very hard for them to evaluate what the injury is. SoI would anticipate that it's going to take them a long time to process those.There is an option to get a ten thousand dollar a evance on thatdisaster loan. So if you go online and apply, you can give ten a an advance.You put your bank information in there and they'll deposit it they're sayingwithin three days, so that is an option out there. If you decide not to moveforward with Ha Loan, you get to keep the ten hsand dollars to Converte togrant. If you move forward with a loan which could be monks down, the roadyou'll have lots of paperwork to sign more documents to produce, then thatpart that ten thousand dollar would be a Forgitago boll part of your loan. Soit's Tenzanddola that's available on the sevent a side, so basically, if anyof youhave ever applied for seven, a SBA long through your acredited Lunderyour bank, this is similar to that, but it'stotally different. Essentially, the hill, our elected officials on the hilljust needed some sort of a vessel to be able to get this money out to smallbusiness owners and since the seven eight program was already in place,they decide they use that, but they they just strippd all therequirements out of it. So no collateral, no personal guarantee, thesmall business owner, is not paying any fees at all. The bank is being paiddirectly by the federal government. I mean the form is literally two pageslong to apply for this lun so, but wit, which is great. That they'vedone this and very smart, but they went really fast and there are still someoutstanding questions out there. So, every day we're getting more guidancefrom Treasury and more guidance from SBA. We have more on how to get the loan. Ithink theyre. There are a lot of questions out there about how to getthe lung forgiven. What exactly oes? That formula look like what do I haveto show Ie tot? You know I'm happy to share what I do know about that, but Ithink we're waiting for Treasury to give us more and I keep mentioningTreasury because the SBA has been without an administrator for a longtime now they just got a new administrator. They don't have ageneral counsil, theyare shortstaffed right now. They had a lot of turnoverin that agency recently and so treasurys really taking the lead onthis and and passing everything off to SBA. So that's really kind of a behindthe scenes. I know there are lots of questions out there and I'm happy toanswer those as we get down the road. No, that's that's great and Joel. I! Ifpeople don't have their chat open, a Joll is adding information about all ofour panlist as they speak and links to be able to get to them and theirinformation. So if you need Mo more- and you want to reach out to any of theour pan irectly that this is how you can do that. Thank you. Holly. I'm gladyou're here Janet Good Morning Good Morning that so from a communication spoint my clients are still, and I think many organizations and businesses arestill you know on the front lines with such rapidly evolving information.Things are changing day to day and week to week I mean just recently: We've hadextensions of the shelter and place orders different across states. Theimplications of those are different for individuals for businesses. We've hadschool closures, extend here in California, the Governor Man dated allschool should be closed for the dermainder of the school year. We tendto be ahead of the cur on some of these decisions, so I expect that this isgoing to trickle out. So all of these types of more government driven decisions arehaving a direct effect on...

...businesses, their employees, heircustomers, how they're doing business, how they're managing the impact on their professionalpersonal financial lives. So my clients are saying Tho me: How do we bestcommunicate? What do we best communicate when do we best communicateacross the Bard? Still so what I? What I ame now continued to say, but haveevolged a little bit, is number one. We still need to stick to the facts. Thisis your credibilities on the line, stay away from rumor stay away from here, say and make sure that you'retelling your people and your customers or whoever it is what you do know and if you can talk about what you don'tknow and what you're doing to close that gap, it's still a good idea share for employees. It's important asthis time now that we know this is going to continue to go on for placesome time. You really need to share your company goals for navigatingthrough this together, so that people can say focuse on what's most important.What can they continue to do in this premote disperse virtual workforce thatwe have today so keep people aligned and focused on the same importantbusiness goals that should be important part of your communications, but thelast thing, and probably the most important thing. That's really stoodout to me with my clients that other leaders who are doing this well iscommunicating with empashy and vulnerability, regardless of Etsite ofthe Hilor on many people have noticed governor Como, doing a prettyexceptional job on this front and he's giving a lot of intention for stickingto the facts, but also being very personal in his approach. Thatauthenticity is winning him a lot of plants and alot of audience eyes and ears, because he's communicating in a way- and it'sjust. This- is personal to everybody on some level and he's pulling that out inhis own communications. He's made this very personal to him talks about histhe impact this is having on him personally, and he does it still withgreat strength, but in a way that's extremely relatable. So when people areout there talking to their custors employees, I they can bring this sense of empathy and votability o theircommunications, along with the facts, they're going to be perceived in thebest possible way. So I really advised to work that into your style. ANDTO,your approach, if you can't, if Janitif I'm the formal leader of the businessand that's just not who I am, but there is somebody on my executive team whohas the capacity to do that intuitively? Is it okay for me to have them sharethe platform for that leading that communication, because there they'reclearly better at it than am I? Yes, I think what I would say in thatsituation not to take away from our the you know, main executives, leadershiprole right. It do an approach where the leader is Givin seem more giving likethe athords. You know the authority on the facts and the information and likeGener, you know shepherdy ind, the business forward and Hav the otherperson come in to put it more into that personal context, and so that it there's a role for both toplay. There's also more of that. You know the person that's in front andthen the person that's behind the scenes dealing with all of the teamsand individuals. Okay, it's so it's permissible is what you're saying itwould be, if maybe not ideal, but it can it can.It can serve the purpose. Thank you. Yeah Welcome. Welcome Margaret Soda,let's hear how things are going for you and PSA airlines, and and and yourheadquarters are in Dayton, but you're working out of Wisconsin right nowcorrect. I am we're all kind of doing a remote work and I'm one of those whocan be into work every week, so kind of a perk we get with the airlineat the at the...

...when we're operating. Well, you know, I guess a lot of our focushas been kind of around the communications piece, but welearned pretty quickly. We were tackling this from a safety perspectiveand focusing on team members and also trying to keep abreast of what's goingon. Are we going to be shut down as an airline? Are they going to keep usrunning? How do things get impacted, but maybe I'll just share a couple ofthe things that we've been doing and where we shifted along the way soMargaret before we continue just for everybody's benefit. PSA is a closelyheld regional carrier of American Airlines correct so that theyere notinto te underneath American Airlines go ahead. Yeh Tso we're owned by American, so one of the the few things we weredoing is, like I said initially, it was just a safety focus and we realized weneeded to come together as an executivea every single day from astaffing perspective. So, rather than having stuff every week we have stuffevery day and then we still have our covid nineteen updates. At the end ofevery day, we also have twice a week our directors update, and we includeour managers once a week and those types of communications. A lot of thatis just understanding the regulations. What's changed, employees haveinformation coming to them on the news every single day, Ri and updates, andwhen you get a shelter and place order and you have to very quickly be able tocommunicate to te members. Are you an essential business? What does that meanfor you to be going to work? An USIC save. We also very quickly startedhaving we have four different labor groups, our crew, which would weconsider our pilots and flight attendants. Those unions were prettyquick, active, sending US notices of what they expected us to do. So wereally had to engage and say here is what we're doing here's, what we'rewilling to do, and we couldn't just stay on a decision. So I we made a decision, for example,not a lot TLEA members were clubs within a week or two we've moved off ofthat and said you can wear gloves, and we have to take a lot of that guidancefrom American Airlines as well tstay connected with that it's the temperature checks. The FAAalso sup provides what they call the safety updates, we cet safe coast andtheir guidance on what we should be doing for our crew, so it gives usgidance on if they're in hotel. So you know when crew members are overnighting, whereare they overnighting? How do they get access to food? Restaurants are shutdown. They only have so much money available to them. They have theirpodeums thow. They have delivery fees and charges theyre really being hit andwe're having to deal with these types of quessions on a daily basis. Well,the other peace of it is. We have our OCC, so our central operating center iswhere we have imagine a room. That's just the heart of the airline where wedispatch fights. We know where all of our crew are what's happening. Our maintenance control where ouraircraft but aircraft need what maintenance and we keep all these keypeople together and we've had to make tough decisions. As we've had teammembers get sick or get quarantined, and we have a hot site where, if wewere to have a disaster, we'd go there, but we've had to open that so that wecould make sure we had time to clean facilities and make tough decisions to allow tea members to work from home thatotherwise wouldn't and we've continued to extend that andget more nd more flexible. With that, we've worked to develop training forleaders on Hey, you have tea mumbers working from home. Now. What does thatmean? And now that we've extended our work from home guidelines to the end ofthe month, ere focused on? How do we now engage with each of the teammembers who are trying to do their job from home as well? What percent of yourflihs are operating compared to normal...

...right now about thirty five percent, so we typically had eight to ninehundred departures a day. Our April schedule came in with about fiftypercent cuts in it, but we've been having to cancel fights. On top of that, when this first started, we could notfigure out the focus was on fixing April and May and getting the bestschedles out for our crew members to bid so march. People would see marchschedules, aircraft, fluw, you'd, FY, I'd, be fine and you'd have five or sixother people with you, because, as an organization we're focused on fixingwhat is makgoing to look like what is April going to look like our Aprilschedule is focused at, like I said, fifty percent and we'recanceling an additional two to three hundred fights a day and then may wasbuild at thirty five percent and we hope June and July goes up, but it's all about. How do youcommunicate that to team members? We have different aircraft hype, you knowthey see rumors, they see Soni O Craft Ay. You know and every work group'sdifferent, so yeah staying connected with those leaders and even we'velearned. We can update correctors, we can UPTAK anators, sometimessupervisors just don't know how to handle. When an employ says, I'm sick acan. I send them home. We now have to do temperature. We do temperaturechecks for every employee when they come in to work and we have themthroughout the day. If they're not feeling well- and we send you Om if you do have atemperature. So how many, how many, roughly, howmany employees have you had with the virus that you know of? Well, we have had about a two hundredand fifty people ask for medical leave of that about a hundred half received sand were waiting results. We have only had about ten test positive okay, somost results are still pending. This is come pretty quick. So, okay, we alsohad to really look at expanding. You know we had a pamdemic leave pase, sover. We made the decision relatively quicklythat we would pay team members and keep them hole because we didn't want themcoming into work and getting their coworkers sick,especially in a occ kind of dispatch, Operi and but it only covered if they were ill.So then we started to expand that to say: okay. Now, if your family's Ol, wedon't want you coming to work right because they may be a cyntebatic thatwe want to ake quarantine. So then it turned into sort of this Porntein payand then we only had available for like if you had daycare issues. You knowthings like that school issues. It was unpaid leave, so we just launched thismorning paid leave programs because our team members, the cares act, was a bigthing for us to understand how. How is that going to impact us from HenwyFurlough? Can we not furlough? Can we talk about furlough? Do we keep ourteam members Holl, but when you're still only running twenty percent ofyour operation and yes you're getting some money from the government, butyou're not allowed to furlow anybody? How do you then have measures to helpcontrol cost so on a flip side of it we're having to deal it's almost asthough you're in bankruptcy mode of conserving cash, reducing spand, going back to vendors about costs, delaying projects we've delayed, almostthe majority of our programs, we've stopped recruiting. We've sentteam members and training, we've decided to rent and training, eventhough we're going to pay people their training pay just so we don't have theHoletel en food class. Okay, H, we've had tick decisions every singleday happening Y, a in pretty dreconi and, relatively speaking, just to makesure you can serve cash right. Yes, you know, and when Thir started we startedto reflect, and you know in our...

...industry we can relate back to the nineeleven and, I would say within a week. It was thisis way worse and you know, and that first feeling of that, like how do yousurvive this? How do you make sure you're doing the right things for youremployees, but yet you're making sure you're coming out of this? So one ofthe things I mean, I think, very quickly, you have to refocus on this idea of the what is ourthematical right? What arewe trying to do? You know- and it's not just aboutsurviving it's about coming out of this stronger too so yeah good. Thank you just real quickly that thematically,what I've been hearing from clients is more about okay. This is this is significant. This is not alittle blip in the road. This is going to be big for our organization in someway shape performance and still in some we're not entirely sure of so thequestion that it's, I hasn't been verbalized exactly this, but but th thesentiment that I'm hearing is. How do I keep people motivated and focused whenwe probably still have the worst yet to come? How O? How do we? How do we keep peopleinspired and keep the troops rallied when, in fact, e the storm has not yet the thehurricane? I is not yet it landfall and we know there's going to be more damage,so I don't. I know I don't have a great answer for that other than the thinkingagain in the context of what would constitute a win in the nextweek for your organization, if you had to say it's it's Thursday April second,so if we fast forward to April the ninth, what would it? What would a win?Look like for us as an organization between now and then an and use that asa way to help people think about since it's not businesses normal here's, away we can at least rally around. We all agree that if we can make thishappen in the next five business days than we're ahead of where we are today,so that would be the thinking that I would offer up to the audience so far,based upon what I'm hearing thematically from my audience, Joe you've asked for questions, or arethere any that? I need to look at right now or do I do. I need to refer to mylist Jowl, I'm just looking for you go to my list or not. Are you typingMewe go ahead and refer to your list right, okay, one one that I was wondering about is- and I don't know who's going to answerthis. If any or all of our panel wants to Weig out in this, is it better foreverybody to take a paycut and retain everybody, or should we furlough orfire several marginal performers right now and maintain wages? You got some, you got some. You gotsome people that are definitely not you know you probably wouldn't hire themagain, but they haven't done anything to bad enough to get gettig laid offget fired, but but this is an opportunity right now, where you got tomake a choice between him. Am I going to keep everybody whole or am I Goinna,and but to do that I got to do a paycut for everybody. What does anybody haveany feelings about what they would do in that situation and all Wai in on this Ablu? You knowwe've seen I councel some some large organizations on this and they'redealing with this right now and they have been through this before they'vebeen around for a long time, and they saw the back during the the lastrecession that we had when they just did it across the board. Twenty percentpay cut at first. It was a bonding kind of team like we're inthe bunker together, and it really kind of bonded everyone together, but prettysoon after after a few weeks and that itthereis some resentment started to grow amongst their higher performers andpeople who really give their blets. What and ters to the organization theybecame resentful that the ones and it's very obvious to our teams, who's reallypulling their weight and who's not, and they became resentful later on so anway.That was just Sane, interesting insight.

They were having that discussion againfor this situation. What they do they did. They opted against the twentypercent paycat this time and they let people go so they isolated in certainindividuals that were marginal and said. Look O that? U Sorry, you have to go,but that's the way they allow them to stay more financiallyviable. At this point, it' at okay, all right, hey, there's a question for Scott is: Isthere a deduction for the payroll taxes that was floated at one point? Do weknow and maybe Howdo you know as well- Scott Holly Yeah? I meand. I think there is there's a deduction for certain payrolltaxes, but that's a year en in that's on your tax return later on. You know,so I don't think right now and that, of course, everybody's in a differentstate right, so certain certain states could have sales tax, other kinds oftaxes that are that they're waving. I know in Ohio there's not waving any ofthat just yet, but that would be a year end thing andyes, you need to consult your tax advisor. You know on what thosedeductions would be an Yo con, tick, those if you, if you did a if you did a paywoll protection program, Tho, Lon orgrand o loan, then Itas forgiven. You can't take that deduction. I, like any thought yeah. I do thinkthat, well, first of all on the on the paycheck protection plan right now,guidance, we're getting from Treasury is that if that loan is forgiven, AAneither at all or a pornof it whanever portion is forgiven is not going to beconsidered income, so it will not be taxed. So that's something for everyoneto know. We are at seeing the delay in parel taxes, but if you're, using a peoor some of other peril processing firm, a lot of those firms are not lettingyou do that because they don't want to try and track down that money from youlater on in the year. So there they're making you pay that as you processpayroll, but we will see weare working on another or Simulus bill now thepresident is very much once either a painwoll, deducgen or payrolllimination.The tax portion, the federal portion of either a limited eliminated, cut inhalf reduced significantly for a short period of time. He's not been able toget that so far, but I wuls think they're going to push for that again inthe next bill. That's going to be coming out. One of the things Paul Pantes down inTrenidad and a friend in a client he wrote- and I saw to everybody- that apay cut may make employees choose employed benefits and unemploymentbenefits over the job, and I have a number of clients who have expressed.You know you know somebody would actually be better off financially totake the unemployment it rather than work, and so that is that is a factor.We have to think about that question right now. How about communicating upward and DanWyle sent this? So what are you communicating to your board investors?How frequently should you be communicating to other stakeholders whoare may not in the Business Day today? That's a! I hadn't thought about thatthat that probably is, if you got private equity involved, I wonder howoften they want Communication Janet. Do you have any thoughts about that? You know, I think you're right, I meana lot of my. You know for the more of the small than midsize companies thatI've been working with their board and their investors are on a lot ofdifferent boards, and so I don't. I think that it has to reallybe tailored baseton where the business is at and how frequently you have updates that are median ful to thebusiness. I know and what I read in the news, especially in like the biotexPace: Ouave investors that are heavily invested in one company coming in withsome like extra parachute money to really shore that particularinvestrument, which means others at Araising for series. You know Syouright now may not be getting in the money they want, so they have to thinkabout. You know I'm probably not going to go and bug those investors so muchand like keep it more rate sized for...

...where you're at. In those conversationsfor boards I mean, I think again, it probably depends on the size of thecompany and the stability of the company and the type of leadership andrelationship they have. But I do think frequent updates and communication aregoing to be needed. Margaret Howards, I was a communicationto Dallas changed for you, because there was regular communicationwith Dallas all the time anyways but t has it gotten more frequenters anpretty much the same. cades, no, that's definitely more frequent so and weobviously get a lot more information requests. So there are daily updates and, I would say, were part of theirexecutive meetings rather than once a week twice a week, and then you knowthey were driving a lot of the legislation around this,that the cares act as well, so really feeding and understanding bothways. What that what that was going to mean so that we didn't overstep on somethingthat they woult be able to take advantage of was also kind of importantfor that two way: okay, Holly and Scott. There was a question Ifloated out to last night. I forget exactly what that was about the VC backed business. You remember what the question was toeither me recall it. I knew I do because I teased holly about it,because I didn't know the answer and I said: Don't Leav me in suspense tillTomorrowso Yask the hall and she can dancs that question repeat the questionfor his holly and then and then your thought. So in general the question was-and I think it was coming from an Austin Texas person. Si'm from Austinsois great to heare from somebody from home, but they were asking aboutcompanies that get VC backing or hav investor backing at the starting owcompany or alongway Yeah Chris Wensow, that's right! Okayso there are. Thereare some rules at SBA that govern it's all about the size. You have togenerally be a business AF, five hundred employees or less, and theyhave affiliation rules. So if you have backing a owner, if you have a VC fromthat's an has an ownership stakes, then there will be sometimes where, if theownership is to a certain degree, it will trigger affiliation status andYouill have to count all of the vcs employees and possibly all the otherintaties that they've invested in as well. I have omeship so again these roles were written by people whohave never had a private secor job in their entire life, and so they just itjust doesn't make sense to them. So IV worked through several of these when Iwas at Sba just under normal circumstances, kind of walking thestaff at SBA through how this works, and so they've actually recently trains.Those rules as of April first of last year, Le Lessening the requirement so they're,really looking at a control issue now, does that VC firm have the control overthe entity to make decisions, and it's and it's either so, is a fifty percentownership stake. Does they have control over board members things like that?It's a little confusing. I will say for this particular situation. We Gin we'rejust using the seven a structure to be able to get the money out the doorlegally, they've weived a lot of the rules, and I the intent is that it doesthat that there should be no affiliation considered. That is theintent whether they can get the language tight enough to explain thatand make everyone feel comfortable about that. You know they're just swampright now, but the intent is that every small business should benefit from this.Even if ha, pc funding Scot anything dead. No okay, Joe, sends a question out from Billmcbrayer. What are people hearing about paying hazard pay for essential workers, so they have to show up, maybe beingclose proximity to other is. Is Anybody on our panels heard anything about whatother companies are doing in that regard?...

We are seeing. You know, truckers people that are that areessential to the the supply chain for grocery stores,grocery storeworkers. Those kind of folks are getting bonuses.That's so Yo Kroger is doing that across the Board for folks, becausethey are you know now, it's not just. I work at the STORYT, I'm working tenhours at the store and it's Git busy an all ten hours. It's? U Ow, they'retrying to take care of clients. I know that the supply chain, truckers and other kinds of folks alsothe manufacturing companies that are starting to change so Ohios, put out aplea, governor Dowinas, put on a plead of manufacturers to sign up to makemasks, make ggowns make other parts for respirators, and then things o thatnature. Those folks are all Gotin, now being funded by the Federal Governor ofthe state government and and so tre they're, starting to enhancethings that way for hazard, pay and things of that Najure. If you got tomotivate people, if you can't motivate them just to do it, because it's theright thing to do than that helps as well, though, with you know, with alittle extra pay Margaret are you can do anything at PSA? No ththere really isn't anything. We dohave critical pay, but that really results. If we have a staffing problem or we're in a really major yourregularoperations, we can call critical. So if we need people to come in and we're notgetting ough volunteers, we end up putting out where we could double ortriple K, okay or certain periods yeah. If anybody else has got any experience or as got specificstrategies that they're doing in the audience, please please write hem inyour chat that you do and if they're too long to write tellison we'll stillcall on you a you can share with this. If you want to you want to do that, question from Dan Wyly was about whatdo you got ta? What are you doing if you've got an individual uknownemployee with bad morale, to keep them from infecting the rest of the team?That's got good morale. What's what are you doing right now, ifanything to isolate those people? Who I don't know? I guess I think aquestion I would ask is in my mind is it probably makes a difference ifthey're B bad morale is. This is just unusual. This is just right nowisolated, it's not normal versus. If they normally have bad morale. I thinkI'd respond differently. I think if this is a isolated case, I'd reallywork hard to talk and understand, and you know this could be far. This couldbe. They got real problems at home, theres there's there could be otherfactors if they've genuinely had bet bad morale, and this is just givingthem an excuse to do that. Even more than often, I probably would take moreof a tough line with them. What's say the rest of you agreed I'll time. INEAD, it's a Greaagree. You know, I'm sure all of the companies on here you have your set ofcoer values and I think doing an analysis of hey is this. Is thiscorevalue issue that really is in conflict with our company or or ismhisphere thereis a lot of fear out there right now and it can impactpeople differently, but but I also like to think that in when times get toughthat people's true character, it really is revealed as well, so w conflictinginsight there, yeah Y, ah H, you find out who you want in Your Fox Hole intimes like these? Don't you Margaret Scott, as employers of others.Do you have any thoughts about that question about somebody with bad rell?Now I think your spot on ad and then you know, I don't want to say we're allkind of keeping a checklist of. How did you respond during this time and youknow for US furloughs and things like that are kind of being punted afterSeptember, but these behaviors are noticed and if it's impassfulnd,especially if theire leader role, we...

...would coach and we've been really clearthat still have to abide by our values, ourpolicies, our programs and Leed. Through this there's a real issue, itstill needs to be addressed. That's got anything else, yeah we're doing this,we're doing the same thing. We would have one of our people, porfolio partners, reach outand have a conversation. You know you have to be sensitive to what people aredealing with out there, so it will regard es whetherit's you know Bob is usually a stick on the mud andnow o just being more of a stick in the MoD. Unfortunately, O got to have alittle bit of a reset here with the current situation and have thatconversation again with Bob and then and then obviously, if the thingscontinue, though, you know, we still got to run our businesses. You know soyou're GOIN NA have to make business decisions. If somebody is not, you knowplaying ball and all that I mean you have to handle that. So you have to say,Lek Bob. You know if you're going to be a stick on the mad matyowe. Don't needthat right now we needeu to go this way. If there's no other ancellarycircumstance, you know or right or something else there, but you have totake the proper precautions. Otherwise, you set yourself, you know for claimsof not being sensitive during the time these trying times and all that,because we know that people ere having problems so recommending folks go tocounseling you most. The most of our health insurance plans have freecounseling sessions any of that kind of stuff to help mitigate. But then, ifbob still being the obstinate Bob Han bobbnees be doin, everybody's got a Bob. Everybody's got a Bob Go ahead, you know een t embersere, absed, we'veseen a real spike and ethics point. So if you have like a hotline aroundeither, I didn't get to work from home whan. Someone else did, and you knowthose are sort of anonymous, but we've had to deal with a lot more of thatthrough this and a lot more specific to panemic of, am I essential, or you knowI idid get the same accommodation as someone else. Yeah Paul and Trinithad also wrote, and Ithink this is right. There are also, at the other end of the spectrum, peoplewho are rising an and not only rising to the occasion excelling under thesecircumstances, and so this is an opportunity right now to look aroundthat some people are demonstrating for you that they have a capacity to manageand lead at a level that probably we didn't we we either have it permittedthem to be able to manage and lead at that level, or we just didn't realizethey had the capacity and they're showing it now and, and they need to know that you'rerecognizing your seeing them step up an a level that is really powerful and anda that you, you know that they can continue once once we get back to somelevel of normal Marty, grender ask what marketingmessage is appropriate now and and so Janet, I'm kind of lookingto you to start to lead on this and Scottup come back to you, because Iknow you you've always had a strong marketing and brand presente for thebank. So yeah. What's your thoughts about how much, if anything, should youshould you be promoting about your business? It's really important not to be tonedeaf to what's going on around us, and I think a lot of companies are doing areally good job in talking about what they're doing as it relates tocronavirus like were what are atributing, what are t, how are the day,evolving and adjusting their business to be supportive of their employees,making things that health care providers desperately need, like mostcompanies in their communications, are tying what their brand is to whatthey're doing directly in relationship to the coronavirs crisis. So that's the mobole to the communications. They Ay that onemore time they're connecting what...

...there can. The majority of thecommunications from businesses are connecting what they're doing that isimmediately relevant to the CRONA Iras? Okay, so they're not talking about. Ohwe're. Launching this new thing. Those things are like off the table unlessthey're launching something new, that's going to help the Koronavires it's just otherwise, you can reallyappear to be playing tone death and it's not GOINGNA. It's kind of like wasted energy yeah orcould even be counterproductive. Sot, have you have you changed yourmarketing and advertising right now, Scott, you know we. We have always beenjist kind of relationship driven, we don't we don't advertise products andthat kind of stuff. It's really a more about hey. Let's build a relationshipand figure out. What's right for you, so so it's kind of worked out prettywell for our stuff. We have, you know, shifted our marketing budget,though, because there's e vense that we're going to happen, they gotcanceled, we've got, promotion selling is dead, so, if anybody's out there, Ialmost want to respond to people. Send me an email and say hey what I've got asale software. Do you want to get on a phone call and I'm like? No, I'mhelping thousands of customers EAT YEU O. I don't have time to do that so, but what we've done is we've takenour our marketing approach, Te and turned it into it kind of helps our brand anyway. Butto how can we help the community? These are resources for you, Yeah K, we'vetaken those marketing dollars and put them into to places that the need thehelp. You know that are not large Internet. You know nationalcorporations yeah and try and just try to keep our message straight that thatwe're here for you, let us know whether you'R Customr or not. Let us know howwe can be a resource you and we're all in this together. That's kind of beenour MA marketing message: okay, what about an executive right now,who's feeling torn pulled in twenty two directions? What what advice do any of you have,and I know Margaret you have a CEO Towhom, you report in yourorganization, Holly Your the CFO of Stampeat, consulting right. So if you've got somebody else in theorganization, that's supposed to be the formal leader, and you know thatthey're being challenged to be focused. What what? Ifanything, should you be doing to support people above you in theorganization to be able to think more clearly a and and not not get into this quipsaw mentality oftrying to do everything and getting nothing accomplished? An that's gdgo ahead, Yookay, I'm just going tosay you know it's reminding myself every single day that I should havethat conversation and pick up the phone and talk with our president justrecognizing when he does have stressful situations when we're in those momentsbeing able to push back on. If that's not the right decision,if we're waiting for too much information, if we need to communicatejust really keeping those balance points, I work for someone who's veryDada, driven and right now we have to make decisions, sometimes without a lotof information and data, and that can be extremely stressful. So it's just pausing and sometimespicking up that phone and it's telate Lyke conversation and quite honestly,the other night picked up to Callm, I think on Sunday night and he wasplaying the guitar and I was quite happy. He was trying to find somethingelse to do, because I don't know that he's you know had a moments of peacefor the last month, Thats Yeah Yeah holy you had some do too yeah. I wasjust I mean it's it's hard, my husband and I own our company together when wehave about three hundred employees, and I I feel their stress every day and it'sit's-...

We are taking on their fear and theirinsecurities about the future, and it's I mean it's weighing on us and it's because we know we care about ourpeople. So the other thing I would say is you know during in Scott mantionedthis a little while ago, but this is a good time for people who have lost somerevenue. Maybe some of their customers mean the customers that are stickingwith you. This is hiis a good time to express gratitude to them andappreciate them because they may maybe your sole source of revenue moving forjust depending on what kind of a business you have. They may be yourlifeline for the next few months, so for not forgetting about them andexpressing gratitude to them and an your staff as well and just returingthem moovion. We don't we get into these businesses as entrepreneurs, andit's you know it's. What do IY say it's? Who else would work twice as long as aregular wemploy for half half the moon of the and it it is essful, but this iswhat we've signed up to do and, and we have a responsibility to our people, tobe Thong, manage our own stress so that we can help the manag hairs. Do youthink right now- and this is this- is any of the panalist I'd love to hearyou responsoor? Do you think right now that business owners presidents CEOSare more inclined to act too quickly or to not act quickly enough? You think ththey're, the two like we goahead were we're seeing we're seeing both we see, paralysis and t en that's starting to weigh alittle bit, because you know the longer this last people understand they haveto do something, and then we see some coks that are better I'mn jumping overballoon just immediately so sowe're, seeing a little bit of both of that anboth of those kind of reactions by large Thaug. I think, folks, thatare the more season they are and managing their business, the morepatient they are and more calculating. They are so I'm finding that the thebusiness owners that have been around for a while if they're around you knowback in two thousand and one for that crisis or or the one on two thousandeigte. Two Thousand and ten I mean we got a lot of Baul car tons right, andso we understand that e rom wasn't built Oday and making cernn decisionscan be be more of the problem than then moreof the solution, so we're seeing it on both sides, but it's directly relatedto the maturity and the leadership skills of he of the team. That'srunning the company Holly Janet Margaret andhe thoughtsabout business owners executives being tooquick or too slow. I mean we've been quick. We took quick action,but part of that is just our personality. We're risk overse and not super optimistic. So I think somedegree it will it'll be a combination of past experience, but also just yourgeneral outlook on the world and we're in self preservation mode to acertain degree, and so we had to go to the plan of what, if we don't haveanother penny come in for the next six months. What does that look like and weimmediately went into that mode because, in the end, that's what's bestfor all of our employees as well. If we can be strong when this is when we'reon the upswing, then that helps them versus us not taking this too seriously and andspending all of our all of our cash reserves. Tand, you said you had threehundred employees. Did I hear that correctly and are they all? Are theyall the DC based or they're all over the ACA, all right Janet? What O youseen with your client too quick to pull the trigger, not quick enough. You know, I have to say it really doesmarry up with experience so with some of these, especially the much smaller companiesthat I work with, that are still...

...private and very small, like earlystage biotech companies, it's just you know the reality in whichthey're operating is just very different from a much bigger company,or even you know, a company like the size of Hollis, so okayit doys dependon level of experience, and it also depends on who they have on their team,supporting and surrounding them, because sometimes they might not bequite ready to make the call. But somebody else, who's, an expert willsay this is what the local legal guy like. This is the government guidance.We have to do this x now, and this is what it has to look like, becausethey've given us just recently the sayand place, coordinance that came outfrom the local county, in which many many Oeond fromcical companies said required within forty eight hours,every company had to post, like detailed notices all over their officesaround how they were going to maintain the separation between employees, who ererequired to be on site cell. So those are things where it's you know, maybeyou don't really feelis needed or whatever, but it's like that is thelocal ordinance. You actually need to do that to follow tha the practices inplace. So I mean, I think it's just it's really evolving and I think, aspeople settle more into the reality that this is not going away that theiryou know, employees are going to be work from home and now apparently doing second jobs asteachers of their children like they new normal, is just going to be very,very different, and it's going to go on for a while smarga anything you want toadd now okayit I oright. Now then I've got.I got one last question TDID, I want to throw it people it is. This is a this is probably a profoundevent in business, so I think th. The question is: How fundamentallydifferent? Do you think business will be going forward because of this andtry to keep your answers here, an in less than a minute? If you can so, isthis a ar we going to go back to pretty much business as usual in you know sixmonths, or are we going to see a lot more different things happening in businessas a result of what everybody's expecting like supply chain to Chinaand so forth? I'm thinking about all those kinds of things and how much bifdifferent will business be now going forward so who wants to go first I'll, go real, quick t. We will. Wewill forever be changed. Our whole focus of growth for the last on know.Three five years has really defined what we're doing andwho we are, and that is not going to be who we are when we come out of this atall, we will be shrinking and we haven't had that at our airline formany years, okay, and so it's going to be all about quality, not quantity,kind of a thing: yeah, okay, Holly, Wha r. What are your thoughts going forward?Yeah, I mean look it depending on what the business is. Yes, they will beimpacted forever to. I think manufacturers are going to look tostart, bringing back supplies and and manufacturing back to the United States. You know we don't ever want to bedependent on another country. Again, I think, is the sentiment right now. Willthat wear off after a couple of decades, probably, but in the next ten years Ithink there 's going to be a moved for that and and then I think, all of this,the social distancing stuff. I think it's going to change how businesseswork and that's that's. Okay, too. You know it's. Okay, our grocery stores tobe a little bit cleaner and you know, and for us to just learn to beconsiderate of those around us and some of their needs that they have and and sometimesput them before ourselves. I know we're dealing with that N OURC I'm. I amreally Legisti'm all for making...

...permanent that the senior citizens getthe shop first at crogers get our own hour, I'm reallybehind that. Go ahead, Janet fundamental change in business. You know I do think there will be some,but when I look at a lot of the my cients and other businesses that Iworked in the healthcare space, I you know, I think that I have somelevel of hopefulness that there really will be a break through any either vaccineand other treatments that come along between now and twelve to eighteenmonths to help mitigate this, and until that point I think we'regoing to have significant waves and ups and downs, and I think there will belike deeplasting impression and scars on people and businesses from this, butI also have seen we is a community have some short term memory loss. Youknow so, once you know once we're able to get more of the healthcare point ofview under control. You know some level of normalcy get out of a crisis Modaninto a more of a management MoD with vaccines and treatments and fixing thehealthcare system. That's going to be really struggling and really broken down to some extent andthen rebuilt backup from this. I think that I am hopeful that we'll find our wayback to some piece of mind and some continuity there will be. Those scars laugh aScotts mention that many people have from before cot yeah. Now I would hope I decae all thecomments that it is made there. You know I think business itself is goingto be. Everybody was challenged, something not everybody that most ofthose were challenged from the normal office environment, to changing theirentire environment and how they go about doing business, and I find ouhalf my clients are liking it. So if you're Investieng in commercial realestate, you know look out because I think that office spaces a d that kindof stuff, but the co hatch and the versa and the shared officeenvironments are probably going to be even more in vogue as especially as he we have. Theyounger generation jumping Ino the workforce here, wer there, wherethey're working at all hours of the day and night and keeping kind of different schedules,and than maybe a Jenxer or or a baby bilt. Or what have so so I see thathappening. The other thing I think I see happening to is that you know. Inthe last ten years you e we've had sinse the financial crisis, the pantialcrisis, you know, heard a lot of folks, but this affects everyone, trineeveryone, and so there is anybody, that's not affected by this there's nocompany- that's not affected by this. Some are doing well, some or not, butthereit's going to go down. As you know, obviously, one of those big events- andI think folks are going to probably re- you know reestablish what theirpriorities are, the new, maybe sense of of the entitlement, so we have heare inthe United States and and the way that we depend on food being on the shelf,an they orget, the you know in the 're in the supermarket, maybe a new respectfor farmers that are doing ther job and the SUFOT supply chain. So it's arerright now is one of the most important people and the nurse those kind ofthings I so tether thing. I think it's going to transform as education. Youknow, I think we found the the the answer to the costof education, and that is we're eliminating the overhead of educationand trying to expand teachers across the larger classroom, using digitaltechnologies and taking advantage of students ability to learn quicker. Soso I think that those are some of the things that are there. The FinancialServices Industry has been required to have a panlike response since twothousand and three, and so we already...

...have plans that we've been in acting so a lot of companies that are notequired to do that: they're, not superlised or regulated by some FederalAuthority, but worlds definitely no going to be thesame after this adand. I'm hoping that ther'll be some sort of you know. Lormal see after this, though,that we can get you know the country back together and and continue to bethe greatest station on the planet yeah, I I am wrestling with what normal means, and we probably will see a new normalpretty soon, hopefully sooner than later, but it probably won't be thenormal that Wewe've come from and more to follow for our audience. Thankyou. For joining us today, I want to thank our panels again, Jane Grazer. Iwant to thank Margaret Soda Scott mccombe, Holly Turner. You have got theways to connect with them. If you want to do so, I want to thank Joe Castlebehind the scenes. Linsey knock Lorriezin and Bat Davassi and Sean Headinger, becausethey helped us produce and put this together. I'm guessing. We probablywon't have another one of these next week. Unless there's an outpouring foreverybody to say, hey we want to. We want to do this again. I'm guessing Iwe'e P, probably try to do another one in th three to four weeks and and seewhere people are and see what what we know them versus we know now, but ifthere's a Huan cry that everybody says we want to, we need another one nextweek. We will certainly respond to your request to do so, but, on behalf ofeverybody, want to thank you for your questions, your FFOR, yourparticipation, panelis. Thanks for your expertise and your thoughtful responsesto all of these scenarios that we've been we've been talking about, and withthat I'm going to wish everybody good luck be safe bewell. I hope you get tobe outside and be with loved ones, and everyone in your circle of friends andfamily are well with that we're gone. Thank you. Thank you for listening to the ED applyexperience for more information on building a more sustainable, smarterand healthier business visit www the eply groupcom for resources, tips andadds latest blocks. That's the apply EPP. L, Ey groupcom plus take a freeassessment at the EPLI GROUPCOM assessment to find out how you measureup as a highly skilled and accomplished manager and were to focus on improvingyour skills.

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