The Ed Eppley Experience
The Ed Eppley Experience

Episode 13 · 2 years 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 epley experience. First of all, this is at epple. Thank you for joining us. This is version two of our navigating, managing and leading in these turbulent times. We've got a slightly different panels today. Just to reminder. The purpose of 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 one do their jobs, as well as to keep your business viable and what can be some very, really tough times. I think we've got everybody muted except the panelist. If for any reason we call out to you, Seawan headinger, who's producing from Albur Querque, New Mexico, will help us with that. But our panel today we have Scott Macomb again, CEO of Heartland Bank. Scott, you can wave. He did a great job and helping US understand both SBA and financial things. Last week we got Janet gracer from Outin San Jose, Car California, and in that area, the bay area. She's going to be back to talk about PR and communications. We've got Holly Turner. She's a CFO for stampede consulting and she's a former assistant administrator for the SBA and she brings a legislative and a background on the SBA that should be able to add to what Scott talks about about. And then we've got Margaret Soda. She's up in Wisconsin today. She's the eight hr for and labor relations for PSA airlines and she's a friend and client, so she's living real time some of the challenges that everybody is is faced with and dealing with the staff in and she's got a number of locations that she's has to deal with. So we're interested to hear from her. I'll be here to talk a little bit more about management and leadership and what I've been talking, or hearing I should say, from my clients. So first half again we'll re recap put each of us is experiencing and hearing from our clients and then we'll turn it over to chat questions from from the audience. I'm sure there'll be some spurreds based just upon what what they share. So I think I've covered everything. Joel Kessel is in the background to receive your chat questions and he's going to be feeding them to me. Joe of I forgot anything. Thumbs up. We're good to go. Good to go. All right, great. Thank you, Scott. You got your five minutes talk to us. All right, good deal. I'm probably need five minutes. Walcome everybody. Last week we talked about, you know, what's coming down the Pike and the cares act and sets so forth. Obviously that passed Friday got signed into law. The lenders in the banks have been waiting your patiently for that guidance. The guidance came down this past Tuesday and since Tuesday we've been trying to ask for further guys, because the the rules that came out of treasury and the SBA were rather vague. There's, as you can probably imagine, behind the scenes in the bank there's a lot of things that have to happen. There's a lot of rules associated with that and and the banks with the way this is working, as the money is coming from banks, you know, to and guaranteed by the SBA. So the banks are actually out there out their money, out their capital, even though they don't have to use that as a zero whisk risk, waiting as far as their capital allocation so it's not going to deplete their capital it's still cash on their bounce sheet that they're going to put on a street and they need to know its specifics about how it's going to be be paid back, when it's going to be paid back in such a so forth. So I'm sure everyone's probably already read a short paper, you know, on most of the parameters. We talked about that last week. Some of those changed for what we were expecting and that's the other reason why we needed more clarification. So what we're getting, biggest questions that we're getting from our clients and across really the the the stratosphere here, is that you...

...know, what do I do? What program is right for me? What qualifies? That kind of thing. So we are we are working with our clients. I would we we're suggesting that other folks go to their primary financial institution so and have that question. Now there's going to be some fin text jump in the mix. I don't golden sacks is planet on jumping in the mix and having a brand ended product. No, cabbage is out there. There's all kinds of tax. If you can't get a response from your financial institution, you can jump through go through those hoops. However, you're probably not going to get the same kind of advice you would from your your banker, okay, or your your financial person other folks to there's another thing called an agent. So an agent can help facilitate your decision and help you fill out and gather the necessary documentations. The agent also gets paid. They're going to get paid by the bank. They get paid usually like a certain percentage of the origination fee that the SBA is going to pay financial institutions. So we find your accountant, if you have a CPA, those kind of people. Some of them are acting as agents and can and can help you facilitate that and then they are subsequently making making a rain switch with other financial institutions to get you taken care of. So deaths, there's different provisions there too. So not just the money out on the street but also the tax consequences. I saw a gentleman ask a question about the taxes there. You know, if you're if you don't need the money, then there's but there are a provisions in the cares act for specific tax provisions. Now I'm not allowed to give tax advice. That's a disclaimer. Okay, a lot to give tax by, but I can tell you that that there is an employee retention credit that you are you'll be able to use and employer payroll tax payments that can be deferred, as well as net operate that nets hus making net operating loss provisions. Now that you'll be able to call back. Okay, so from one, eighteen, nineteen and twenty, you can refile and take the losses now against pass taxes as you pay. So so you want to make sure that you're qualifying, you know, and you're in. You're taking the time to figure out what the right strategy is for your particular company, because it really varies across the board. So, besides that, we are seeing people trying to line up for their you know, for their you know, for their assistance. You may want to check with your financial institution to see if they're even going to participate in the program because of the certain parameters. Some are not. So smaller institutions that are not a SBA prefer are doing a referral model. So I would definitely be calling and finding out, you know, whether that's the right place for you to go to begin with and what resources are going to have to help you. Okay, thank you, Scott. Holly I was going to have Janet go next, but given your connection to the SBA and and I just think why don't we just have you go next? If you don't mind, Janet, I'm going to have holly follow up and you can talk a little bit about what you're hearing and seeing, since it connects to what Scott's talking about. Your muted, Holly. So I have been talking to the SBA and treasury officials every day over the past few weeks and I have great relationships with them. They're good people. I just want to say that. But they are overwhelmed. So this is they've never dealt with anything like this before. They've the disaster loan side. I've been through disasters while I was at SBA. It is very stressful on the system. When we declared a nationwide disaster, it just threw them into a tailspin. So they're trying to process disaster loans internally. They've streamlined that process. They've removed a lot of the red tape. So if someone is looking at a disaster loan, and I do get a lot of questions like this, Scott mentioned, you know they're basically two types of loans that small...

...business owns are looking at. So SBA is processing those disaster loans. They've made it a lot easier now, but it could take a long time to get your money. During hurricanes it's sometimes takes people five months to get their money and usually those are for physical pairs to damage buildings or damage equipment. They rarely do economic injury loans. It's just very hard for them to evaluate what the injury is. So I would anticipate that it's going to take them a long time to process those. There is an option to get a tenzero a advance on that disaster loan. So if you go online and apply, you can get in an advance. You put your bank information in there and they'll deposit it. They're saying within three days. So that is an option out there. If you decide not to move forward with a loan, you get to keep the tenzero. It converts to a grant. If you move forward with a loan, which could be months down the road, you will have lots of paperwork to sign, more documents to produce. Then that part, that Tenzero, would be a forgivable bull part of your loan. So it's tenzero dollars that's available on the seven a side. So basically, if any of you have ever applied for a seven a SBA loan through your accredited Lunder, your bank, this is similar to that, but it's totally different. Essentially, the hill are elected officials in the hill just needed some sort of a vessel to be able to get this money out to small business owners and since the seven a program was already in place, they decided to use that. But they had they just strip all the requirements out of it. So no collateral, no personal guarantee, the small business owner is not paying any fees at all. The bank is being paid directly by the federal government. I mean the form is literally two pages long to apply for this loan. So but with which is great that they've done this and very smart, but they went really fast and there are still some outstanding questions out there. So every day we're getting more guidance from Treasury and more guidance from SBA. We we have more on how to get the loan. I think they're there are a lot of questions out there about how to get the loan forgiven. What exactly does that formula look like? What do I have to show? I've got, you know, I'm happy to share what I do know about that, but I think we're waiting for treasury to give us more. And I keep mentioning Treasury because the SBA has been without an administrator for a long time now. They just got a new administrator, they don't have a general council. Their short staff right now. They had a lot of turnover in that agency recently, and so treasuries really taking the lead on this and and passing everything off to SBA. So that's really kind of a behind the scenes I know there are lots of questions out there and I'm happy to answer those as we get down the road. Now that's that's great. And Joel, if people don't have their chat open, Joel is adding information about all of our panelists as they speaks and links to be able to get to them and their information. So if you need more and you want to reach out to any of our panels directly, that's this is how you can do that. Thank you, Holly. I'm glad you're here. Janet. Good Morning. Good Morning. So from a communications my clients are still, and I think many organizations and businesses are still, 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 had extensions of the shelter and place orders different across states. The implications of those are different for individuals for businesses. We've had school closures extend. Here in California, the Governor Man dated all school should be closed for the direct remainder of the school year. We tend to be ahead of the curve on some of these decisions. So I expect that this is going to trickle out. So all of these types of more government...

...driven decisions are having a direct effect on businesses, their employees, their customers, how they're doing business, how they're managing the impact on their professional, personal financial lives. So my clients are saying to me, how do we best communicate? What do we best communicate? When do we best communicate? Across the board? Still so what I what I have now continued to say but have evolved a little bit, is number one, we still need to stick to the fact. So this is your credibilities on the line. Stay away from rumors, stay away from here say and make sure that you're telling your people and your customers or whoever it is what you do know and if you can talk about what you don't know and what you're doing to close that gap, it's still a good idea share for employees. It's important to this time, now that we know this is going to continue to go on for quite some time. You really need to share your company goals for navigating through this together so that people can say, focus on what's most important, what can they continue to do in this remote, disperse, virtual workforce that we have today? So keep people aligned and focused on the same important business goals. That should be important part of your communications. But the last thing and probably the most important thing that's really stood out to me with my clients, but other leaders who are doing this well, is communicating with empathy and vulnerability, regardless of excite of the aisle you're on. Many people have noticed governor Cuomo doing a pretty exceptional job on this front, and he's getting a lot of attention for sticking to the facts but also being very personal in his approach. That authenticity is winning him a lot of points and a lot of audience eyes and airs because he's communicating in a way that's just this is personal to everybody on some level and he's pulling that out in his own communications. He's made this very personal to him, talks about his impact this is having on him personally, and he does it still with great strength, but in a way that's extremely relatable. So when people are out there talking to their customers employees, if they can bring the sense of empathy and vulnerability to their communications along with the facts, they're going to be perceived in the best possible way. So I had really advised to work that into your style and too, your approach, if you can. If, Janet, if I'm the formal leader of the business and that's just not who I am, but there is somebody on my executive team who has the capacity to do that intuitively, is it okay for me to have them share the platform for that, leading that communication, because they're they're clearly better at it than am I? Yes, I think what I would say in that situation, Shin, not to take away from your the you know, main executive leadership role, right, if you an approach where the leader is give a seem more giving, like the sorts, you know, the authority on the facts and the information and like general, you know, shepherd in the business forward and have the other person come in to put it more into that personal contact and that it's there's a role for both to play. There's also more of the you know, the person that's in front and then the person that's behind the scenes dealing with all of the teams and individuals. Okay, it's so, it's permissible, is what you're saying. It would be if maybe not ideal, but it can. It can, it can serve the purpose. Okay, thank you. Yeah, welcome. Welcome, Margaret Soda. Let's hear how things are going for you and PSA airlines and and and your your headquarters are in Dayton, but you're working out of Wisconsin right now. Correct? I am. We're all kind of doing a remote work and I'm one of those who commute into work every week. So kind of a perk we get with the airline at...

...the at the when we're operating well. You know, I guess a lot of our focus has been kind of around the communications piece, but we learned pretty quickly we were tackling this from a safety perspective and focusing on team members and also trying to keep abreast of what's going on. Are we going to be shut down as an airline? Are they going to keep us running? How do things get impacted? But maybe I'll just share a couple of the things that we've been doing and where we shifted along the way. So market before we continue, just for everybody's benefit. PSA is a closely held regional carrier of American Airlines. Correct. Okay, so that they're entity underneath American Airlines. Go ahead. Yeah, so we're owned by American so one of the few things we were doing is, like I said, initially it was just a safety focus and we realize we needed to come together as an executive every single day from a staffing perspective. So rather than having staff every week, we have staff every day and then we still have our covid nineteen updates at the end of every day. We also have twice a week our directors updates and we include our managers once a week in those types of communications. A lot of that is just understanding the regulations. What's changed. Employees have information coming to them on the news every single day, writing and updates. And when you get a shelter and place order and you have to very quickly be able to communicate to the numbers. Are you in essential business. What does that mean for you to be going to work and is it's safe? We also very quickly started having we have four different labor groups our crew, which would be consider our pilots and flight attendants. Those unions were pretty quick active sending US notices of what they expected us to do. So we really had to engage agency. Here is what we're doing, here's what we're willing to do, and we couldn't just stay on a decision. So we made a decision, for example, not to let team members wear gloves. Within a week or two we've moved off of that and said you can wear gloves, and we have to take a lot of that guidance from American Airlines as well. It's stay connected with that. It's the temperature checks. The FAA also Su provides what they call the safety updates, because safe cos and their guidance on what we should be doing for our crew. So it gives us guidance on if they're in hotels, so you know when crew members are overnighting, where they overnighting? How do they get access to food? Restaurants are shut down, they only have so much money available to them. They have their per dems now they have delivery seas and charges there really being hit and and we're having to deal with these types of quessions on a daily basis. Well, the other piece of it is we have our OCC so our central operating center is where we have, you can imagine, a room that's just the heart of the airline, where we dispatch flights. We know where all of our crew are, what's happening our maintenance control, where our aircraft, what aircraft need what maintenance, and we keep all these key people together and we've had to make tough decisions as we've had team members get sick or get quarantined. And we have a hot site where if we were to have a disaster, we'd go there, but we've had to open that so that we could make sure we had time to clean facilities and and make tough decisions to allow team members to work from home. That otherwise wouldn't we and we've continued to extend that and get more more flexible with that. We've worked to develop training for leaders on Hey, you have team members working from home. Now, what does that mean? And now that we've extended our work from home guidelines to the end of the month, we're focused on. How do we now engage with each of the team members who are trying to do their job from home as well? What percent of your flights are operating compared to normal...

...right now? About thirty five percent. Yeah, so we typically had eight to nine hundred departures a day. Our April schedule came in with about fifty percent cuts in it, but we've been having to cancel flights on top of that. When this first started, we could not figure out the focus was on fixing April in May and getting the best schedules out for our crew members to bid. So March people would see march schedules, aircraft flew, you'd fly, I'd be flying and you'd have five or six other people with you, because as an organization we're focused on fixing what is may going to look like? What is April going to look like? Our April schedule is focused at, like I said, fifty percent and we're canceling an additional two to three hundred flights a day. And and then may was built at thirty five percent and we hope June in July goes up. But it's all about how do you communicate that to team members? We have different aircraft type. You know, they see rumors, they see us many a craft they you know, and every work groups different. So, yeah, staying connected with those leaders and even we've learned. We can update directors, we can update anagers. Sometimes supervisors just don't know how to handle when it employeces, I'm sick, can I send them home? We now have to do temperature we do temperature checks for every employee when they come in to work and we have them throughout the day if they're not feeling well and we send you home if you do have a temperature. So how many? How many? Roughly, how many employees have you had with the virus that you know of? Well, we have had about a few hundred and fifty people ask for medical leave. Of that, about a hundred have received a S and we're waiting results. We have only had about ten test positive. Okay, so most results are still pending. This has come pretty quick so okay. We also had to really look at expanding. You know, we had a pandemic leave phase. So're we made the decision relatively quickly that we would pay team members and keep them hold because we didn't want them coming into work and getting their coworker sick, especially in a occ kind of dispatch operate, and but it only covered if they were ill. So then we started to expand that to say, okay, now, if your family's all we don't want your coming to work right because they may be asymptomatic, but we want to quarantine. So then it turned into sort of this quarantine pay and then we only had available for like if you had daycare issues, you know, things like that, school issues. It was unpaid leave. So we just launched this morning paid leave programs because our team members the cares act was a big thing for us to understand. How how is that going to impact us? From can we furlough? Can we not furlough? Can we talk about furlough? Do we keep our team members whole? But when you're still only running twenty percent of your operation and yes, you're getting some, some money from the government, but you're not allowed to furlow anybody, how do you then have measures to help control costs? So on a flip side of it, we're having to deal with almost as though you're in bankruptcy mode, of conserving cash, reducing spend, going back to vendors about costs, delaying projects. We've delayed almost the majority of our programs. We've stopped recruiting, we've sent team members and training. We've decided to rent end training, even though we're going to pay people their training pay, just so we don't have the whole town food class. Okay, we've had just quick decisions every single day. happening. Yeah, pretty Dret Conian, relatively speaking, just to make sure you can serve cash right. Yes, you know. And when this started we started to reflect and you know, in our industry we can relate back to the eleven...

...and I would say within a week it was this is way worse, and you know, and that first feeling of that like how do you survive this? How do you make sure you're doing the right things for your employees, but yet you're making sure you're coming out of this. So one of the things, I mean very quickly, you helped us refocus on this idea of well, what is our thematical right, what are we trying to do? You know, and and it's not just about surviving, it's about coming out of this stronger too. So yeah, good. Thank you. Just real quickly, the thematically, what I've been hearing from clients is more about. Okay, this is this is significant. This is not a little blip in the road. This is going to be big for our organization in some way, shape or form, and still in some were not entirely sure of. So the question that it's hasn't been verbalized exactly this, but but the the sentiment that I'm hearing is, how do I keep people motivated and focused when we probably still have the worst yet to come? How do we, how do we keep people inspired and keep the troops rallied when, in fact, the the storm has not yet the the hurricane I is not yet hit landfall and we know there's going to be more damage. So I don't you know, I don't have a great answer for that, other than that thinking again in the context of what would constitute a win in the next week for your organization. If you had to say it's Thursday, April second. So if we fast forward to April the ninth, what would it? What would have win look like for us as an organization between now and then? And and use that as a way to help people think about since it's not business as normal, here's a way we can at least rally around. We all agree that if we can make this happen in the next five business days, then we're ahead of where we are today. So that 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. Joel, you've asked for questions there. Are there any that I need to look at right now, or do I do? I need to refer to my list, Joel, I'm just looking for you. Go to my list or not? Are you typing me where? Go ahead and refer to your list right now. Okay, one one that I was wondering about is, and I don't know who's going to answer this, if any or all of our panel wants to weigh on in this, is it better for everybody to take a pay cut and retain everybody, or should we furlough or fire several marginal performers right now and maintain wages? You got some, you got some, you got some people that are definitely not you know, you probably wouldn't him again, but they haven't done anything bad enough to get get laid off get fired. But but this is an opportunity right now where got to make a choice between them. Am I going to keep everybody whole, or am I going to? And but to do that I got to do a pay cut for everybody. What. Does anybody have any feelings about what they would do in that situation? And I a'lwigh in on this. I've least you know, we've seen. I counsel some some larger organizations on this and they're dealing with this right now and they have been through this before. They've been around for a long time and they saw that back during the last recession that we had when they just did across the board twenty percent pay cut. At first it was a bonding kind of team like we're in the bunker together, and it really kind of bonded everyone together. But pretty soon after, after a few weeks of that, there's some resentment started to grow amongst their higher performers and people who really give their blood, sweat and tears to the organization. They became resentful that the ones and it's very obvious to our teams who's really pulling their weight and who's not, and it they became resentful later on. So any way, that was just some interesting insight. They were having that discussion again for this situation. What do...

...they do? They did. They opted against the twenty percent pay cut this time and they let people go. So they they isolated in certain individuals that were marginal and said look good, the sorry, you have to go, but that's the way they allow them to stay more financially viable at this point. Exact. Okay, all right, hey, there's a question for Scott. Is. Is there a deduction for the payroll taxes that was floated at one point? Do we know? And maybe holly, you know as well, Scott, holly? Yeah, I mean I think there is. There is a deduction for certain payroll taxes, but that's a year 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 different state right so certain states could have sales tax other kinds of taxes that are that they're waving. I know a high there's not waiving any of that just yet, but that would be a year and thing. And yes, you need to consult your tax adviser, you know, on what those deductions would be and you can take those of you if you did, if you did a payroll protection program though loan or Grand Loan, then it was forgiven, you can't take that deduction. Holli, any thoughts? Yeah, I do think that 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 all, either at all or part of it, whatever portion is forgiven, is not going to be considered income, so it will not be taxed. So that's something for everyone to know. We are at seeing the delay and payroll taxes, but if you're using a peo or some other payroll processing firm, a lot of those firms are not letting you do that because they don't want to try and track down that money from you later on in the year. So they're they're making you pay that as you process payroll. But we will. We're working on another simulus bill now. The president is very much want either a pair roll reduction or a payroll elimination. The tax portion, the federal portion, either a limited eliminated cut in half reduced significantly for a short period of time. He's not been able to get that so far, but I would think they're going to push for that again in the next bill that's going to be coming out one of the things Paul Pant who's down in Trinidad and friend and a client, he wrote and I saw to everybody, that a paycup may make employees choose employee benefits and unemployment benefits over the job and I have a number of clients who have expressed you know, you know, somebody would actually be better off financially to take 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 Dan Whylei sent this. So what are you communicating to your board investors? How frequently should you be communicating to other stakeholders who are may not in the Business Day to day? That's a I hadn't thought about that. That probably is if you got private equity involved. I wonder how often they want communication. Janet, do you have any thoughts about that? You know, I think you're right. I mean a lot of my you know, for the more of the small to midsize companies that I've been working with, their board and their investors are on a lot of different boards, and so I don't I think that it has to really be tailored based on where the business is at and how frequently you have updates that are meaningful to the business. I know and what I read in the news, especially in like the biotech space, you have investors that are heavily invested in one company coming in with some like extra parachute money to really shore up that particular investment, which means others that are raising for series, you know, see you right now, may not be getting in the money they want. So they have to think about you know, I'm probably not going to go and bugs those investors so much and like keep it more right sized for...

...where you're at in those conversations for boards. I mean I think again it probably depends on the size of the company and the stability of the company and the type of leadership and relationship they have, but I do think frequent updates and communication are going to be needed. Margaret How's, how was a communication to Dallas changed for you, because there was regular communication with Dallas all the time anyways. But whats it gotten? More frequenters a pretty much the same game now. It's definitely more frequent. So and we obviously get a lot more information requests. So there are daily updates and I would say we're part of their executive meetings rather than once a week, twice a week, and then, you know, they were driving a lot of the legislation around that the cares act as while so really feeding and understanding both ways what that what that was going to mean, so that we didn't overstep on something that they went be able to take advantage of was also kind of important for that too. Way. Okay, Holly and Scott, there was a question I floated out to you last night. I forget exactly what that was about the VC back business. You remember what the question was? Do either be recall it? I do. I do because I tease holly about it because I didn't know the answer and I said don't leave me in suspense still tomorrow. So I'll ask the HOLLANDS. You can't answer that question. Repeat the question for us, Holly, and then and then your thoughts. So in general, the question was and I think it was coming from an Austin Texas Person Sign from Austin, so it was great to hear from somebody from home. But they were asking about companies that get VC backing or have investor backing at the starting a company or or along the way. Yeah, Chris, winslow. That's right. Okay, so there are there are some rules at Asba that govern it's all about the size. So you have to generally be a business of five hundred employees are less, and they have affiliation rules. So if you have backing owner, if you have a VC from that's a has an ownership stakes, then there will be sometimes where if the ownership is to a certain degree, it will trigger affiliation status and you'll have to count all of the VC's employees and possibly all of the other entities that they've invest it in as well at have ownership. So again, these rules were written by people who have never had a private sector job in their entire life and so they just it just doesn't make sense to them. So I've worked through several of these when I was at SBA, just under normal circumstances, kind of walking the staff at SBA through how this works. And so they've actually recently changed those rules as of April first of last year, lessening the requirement. So they're really looking at a control issue. Now, does that VC firm have the control over the entity to make decisions? And it's and it's either. So it's that a fifty percent ownership steak? Does they have control over board members things like that? It's a little confusing, I will say. For this particular situation we give we're just using the seven a structure to be able to get the money out the door. I legally they've waived a lot of the rules and I the intent is that it does that, that there should be no affiliation. Considered that as the intent. Whether they can get the language tight enough to explain that and make everyone feel comfortable about that. You know they're just swamp right now, but the intent is that every small business should benefit from this, even if they have pc funding. It'Scott anything to add. Oh okay. Joel sends a question out from Bill mcbrayer. What are people hearing about paying hazard pay for essential workers so they have to show up maybe be in close proximity to others? Is Anybody on our panel hurt anything about what other companies are doing in that regard? We are seeing,...

...you know, truckers, people that are that are essential to the the supply chain for grocery stores, grocery store workers, those kind of folks are getting bonuses. So Kroger is doing that across the Board for folks because they are. You know, now it's not just I work at the store, it's I'm working ten hours at the store and it's, you know, busy. Are All ten hours. It's, you know, they're trying to take care of clients. I know that the supply chain, truckers and other kinds of folks, also the manufacturing companies. That are starting to change. So Ohio's put out a plead, governor Towin's put out a plead of manufacturers to sign up to make masks, make gay owns, make other parts for respirators and then things that nature. Those folks are all, you know, now being funded by the Federal Governor of the state government, and and so they're they're starting to enhance things that way for hazard pay and things of that nature. If you got to motivate people, if you can't motivate them, just to do it because it's the right thing to do. That that that helps as well, though, with, you know, with little extra pay, Margaret are you can do anything at PSA. Now that there really isn't anything. We do have critical pay, but that really results that we have a staffing problem them or were in a really major your regular operations. We can call critical. So if we need people to come in and we're not getting enough volunteers, we end up putting out where we could double or triple pay, okay for certain periods. Yep. If anybody else has got any experience or is got specific strategies that they're doing in the audience, please please write them in your chat that you do and if they're too long to write, tell us and we'll still call on you. You can share with us if you want to. If you want to do that question from Dan Whylie was about what do you got to what are you doing if you've got an individual, unknown employee 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, if anything, to isolate those people who I don't know, I guess. I think a question I would ask is, in my mind, is it probably makes a difference if they're bad morale. Is this is unusual, this is just right now isolated. It's not normal versus if they normally have bad morale, I think I'd respond differently. I think if this is an isolated case, I'd really work hard to talk and understand and you know, this could be fair, this could be they got real problems at home. There's there's there could be other factors. If they've genuinely had been bad morale and this is just giving them an excuse to do that even more than often, I probably would take more of a tough line with them. What say? The rest of you agreed. I'll time in. Ed. It's a great I agree. You know, I was are all the companies on here? You have your set of core values and I think doing an analysis of Hey, is this, is this core value issue that really isn't conflict with our company, or is this fear? There is a lot of fear out there right now and it can impact people differently. But I also like to think that in when times get tough that people's true character it really is revealed as well. So conflicting insight there. Yeah, yeah, you find out who you want in your foxhole in times like these, don't you, Margaret Scott, as employers of others, do you have any thoughts about that question, about somebody with bad Morell now? I think your spot on, ed. And then, you know, I don't want to say we're all kind of keeping a checklist of how did you respond during this time? And you know, for us, furloughs and things like that are kind of being punted to after September. But these behaviors are noticed and if it's impactful, and especially if their leader role, we would coach and we've been really clear that you still have...

...to abide by our values, our policies, are programs and leave through this. So there's a real issue. It still needs to be addressed. It's got anything else. Yeah, we're doing this. We're doing the same thing. We would have one of our people port for the partners reach out and have a conversation. You know, you have to be sensitive to what people are dealing with out there. So it regard us or whether it's you know, bob is usually a stick in the mud and now just being more of a stick in the mud. Unfortunately. You got to have a little bit of a reset here with the current situation and have that conversation again with Bob and then and then, obviously, if the things continue, though, you know, we still got to run our businesses, you know. So you're going to have to make business decisions if somebody is not, you know, playing ball and all that. I mean you have to handle that. So you're have to say, look, Bob, you know, if you're going to be a stick in the mud, Moun't you. We don't need that right now. We need you to go this way if there's no other ancillary circumstance, you know, or or something else there. But you have to take the proper precautions. Otherwise you set yourself up, you know, for claims of not being sensitive during the time, these trying times and all that, because we know people are having problems. So we're recommending folks go to counseling. You most of most of our health insurance plans have free counseling sessions, any of that kind of stuff to help mitigate but then if bob still being obstinate Bob, then Bob needs to be dealt with. Everybody's got a Bob, everybody's got a bomb. Go ahead, we just said, you know, even team members who are upset. We've seen a real spike and at the points. So if you have like a hot line around either I didn't get to work from home when someone else did, and you know those are sort of anonymous. But we've had to deal with a lot more of that through this and a lot more specific to pandemic. Am My essential or you know, I get the same accommodation as someone else. Yeah, Paul and Trinidad also wrote, and I think this is right. There are also, at the other end of the spectrum, people who are rising and not only rising to the occasion, excelling under these circumstances, and so this is an opportunity right now to look around that some some people are demonstrating for you that they have a capacity to manage and lead at a level that probably we didn't we did. We either have it permitted them to be able to manage and lead at that level or we just didn't realize they had the capacity. And they're showing it now and and they need to know that you're recognizing, you're seeing them step up at a level that that is really powerful and and that you, you know that they can continue once once we get back to some level of normal. MRTY grender asks what marketing message is appropriate now, and and so, Janet, I'm kind of looking to you to start to lead on this, and and Scott, I'll come back to you because I know you've always had a strong marketing and brand presence for the bank so Jan what's your thoughts about how much, if anything, should you should you be promoting about your business? It's really important not to be toned as to what's going on around us, and I think a lot of companies are doing a really good job and talking about what they're doing as it relates to coronavirus. Like where? What are contributing? What are the how are they evolving and adjusting their business to be supportive of their employees, making things that healthcare providers desperately need? Like most companies in their communications are tying what their brand is to what they're doing directly in relationship to the coronavirus crisis. So that's the mobilk of the communications there. They that one more time. They're connecting what...

...there can. The majority of the communications from businesses are connecting what they're doing that is immediately relevant to the coronavirus. Okay, so they're not talking about, oh, we're launching this new thing. Those things are like off the table unless they're launching something new that's going to help the coronavirus. Okay, it's just otherways you can really appear to be quite tone deaf and it's not gonna it's kind of like wasted energy. Yeah, or could even be counterproductive. Scott, have you? Have you changed your marketing and advertising right now? Scott, you know, we we have always been just kind of relationship driven. We don't we don't advertise products and that kind of stuff. It's really a more about hey, let's build a relationship and figure out what's right for you. So so it's kind of worked out pretty well for our stuff. We have, you know, fifted our marketing budget, though, because, you know, there's Evans that we're going to happen to. Got Canceled. We've got promotions. Selling is dead. So if anybody's out there, I almost want to respond to people send me an email and say hey, what, I've got a sales software. Do you want to get on a phone call? And I'm like now I'm helping thousands of customers eat. You know, I don't have time to do that. So, but what we've done is we've taken our our marketing approach though, and turned it into it kind of helps our brand anyway, but to how can we help the community? These are resources for you. You know. We've taken those marketing dollars and put them into two places that the need the help, you know, that are not large Internet, you know, national corporations. Yeah, and try to just try to keep our message straight, that that we're here for you. Let us know whether your customer or not. Let us know how we can be a resource to you and we're all in this together. That's kind of been our map marketing message. Okay, what about an executive right now who is feeling torn, pulled in twenty two directions? What advice to do? Any of you have, and I know Margaret, you have a CEO to whom you report in your organization. Holly, you're the CFO of stampede consulting, right. So if you've got somebody else in the organization that's supposed to be the formal leader and you know that they're being chant challenge to be focused, what, what, if anything, should you be doing to support people above you and the organization to be able to think more clearly and and and not not get into this whip psalm mentality of trying to do everything and getting nothing accomplished? I'm not go ahead, okay, I'm just going to say. You know, it's reminding myself every single day that I should have that conversation and pick up the phone and talk with our president, just recognizing when he does have stressful situations, when we're in those moments, being able to push back on if that's not the right decision, if we're waiting for too much information, if we need to communicate, just really keeping those balance points. I work for someone who's very data driven and right now we have to make decisions sometimes without a lot of information and data and that can be extremely stressful. So it's just pausing and sometimes picking up that phone and it's the late my conversation and, quite honestly, the other night I picked up too calm, I think on Sunday night, and he was playing the guitar and I was quite happy he was trying to find something else to do because I don't know that he's, you know, had a moments of peace for the last month. That was yeah, yeah, holly had something to add. Yeah, it was just I mean it's it's hard. My husband and I own our company together and we have about three hundred employees and I I I feel their stress every day and it's it's we're we're taking on their...

...fear and their insecurities about the future and it's I mean, it's weighing on us and it's because we know we care about our people. So the other thing I would say is, you know, during and Scott mentioned this a little while ago, but this is a good time for people who have lost some revenue, maybe some of their customers. Mean, though, customers that are sticking with you. This is a this is a good time to express gratitude to them and appreciate them, because they may they may be your soul source of revenue moving forward. Just depending on what kind of a business you have, they may be your lifeline for the next few months. So for not forgetting about them and expressing gratitude to them and in your staff as well, and just reassuring them. Mean we don't get into these businesses as entrepreneurs and it's you know, it's what I say. It's the WHO else would work twice as long as a regular W to employee for half the half the month off the hey, and it's it is full, but this is what we've signed up to do and we have a responsibility to our people to be strong manage our own stress so that we can help them manage theirs. Do you think right now, and this is this is any of the panelist? I'd love to hear your response here. Do you think right now that business owners, presidents, the CEO's, are more inclined to to act too quickly or to not act quickly enough? You think they're the do like we're go ahead and we're we're seeing. We're seeing both. We see paralysis and that's starting to weigh a little bit because, you know, the longer this last, people understand they have to do something. And then we see some folks that are that are, I'm jumping over the moon, just immediately. So so we're seeing a little bit of both of that, both of those kind of reactions. But by and large, though, I think you folks that are, the more season they are in managing their business, the more patient they are and more calculating they are. So I'm finding that the the business owners that have been around for a while off there around, you know, back in two thousand and one for that crisis, or or the one in two thousand and eight to two thousand and ten. I mean, we got a lot of battle scars on US right, and so we understand that the Rome wasn't built a day and making certain decisions could be the more of the problem than the more of the solution. So we're seeing it on both sides, but it's directly related to the maturity and the leadership skills of the of the team that's running the company. Holly, Janet, Margaret, any thoughts about business owners executives being too quicker too slow? I mean I we've been quick. We took quick action, but part of that is just our personality. We're risk averse and not super optimistic. So I think some degree it will. It'll be a combination of past experience but also just your general outlook on the world and we're in self preservation mode to a certain degree. So we had to go to the plan of what if we don't have another penny come in for the next six months? What does that look like? And we immediately went into that mode because in the end that's what's best for all of our employees as well. If we can be strong when this is when we're on the upswing, then that helps them versus us not taking this too seriously and it's spending all of our all of our cash reserves. And you said you had three hundred employees. Did I hear that? Correctly. And are they all? Are they all the DC based, or they're all O were the nation? All right, Janet, what do you see with your clients? Too quick to pull the trigger and not quick enough if you know, I have to say it really does marry up with experience. So with some of these, especially the much smaller companies that I work with that are still private and very small, like early stage biotech companies, it's just,...

...you know, the reality in which they're operating is just very different from a much bigger company or even, you know, a company like the size of Holly. So okay, it does depend on level of experience and it also depends on who they have on their team supporting and surrounding them, because sometimes they may not be quite ready to make the call, but somebody else who's an expert will say 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, because they've given us just recently the same in place ordinance that came out from the local county in which many, many can farmacco companies, set require within forty eight hours, every company had to post like detailed notices all over their offices around how they were going to maintain the separation between employees who were required to be on site sell. So those are things where it's, you know, maybe you don't really feel it's needed or whatever, but it's like that is the local ordinance. You actually need to do that to follow the practices in place. So I mean, I think it's just it's really evolving and I think is people settle more into the reality that this is not going away, that their you know, employees are going to be work from home and now apparently doing second jobs as teachers of their children. Like the new normal is just going to be very, very different and it's going to go on for a while. Margaret, anything you want to add? No, okay, that's right now that I've got I got one last question that I want to throw it people. It is this is a this is probably a profound event in business. So I think the the question is, how fundamentally different do you think business will be going forward because of this? And try to keep your answers here and in less than a minute if you can. So is this? Are we going to go back to pretty much business as usual in in you know, six months, or are we going to see a lot more different things happening in business as a result of what everybody's expecting, like supply chain to China and so forth? I'm I'm thinking about all those kinds of things and how much different will business be now going forward? So who wants to go first? I'll go real quick. Thank you. Will we will forever be changed. Our whole focus of growth for the last you know, three five years has really defined what we're doing and who we are, and that is not going to be who we are when we come out of this at all. We will be shrinking and we haven't had that at our airline for many years. Okay, and so it's going to be all about quality, not quantity, kind of a thing. Yeah, okay, Holly. What are your thoughts going forward? Yeah, I mean, look it depending on what the business is it. Yes, they will be impacted forever. To I think manufacturers are going to look to start bringing back supplies and and manufacturing back to United States. You know it. We don't ever want to be dependent on another country again. I think is the sentiment right now. Will that wear off after a couple of decades? Probably, but in the next ten years. I think there's going to be moved for that. And and then I think all of this the social distancing stuff, I think it's going to change how businesses work, and that's that's okay too. You know, it's okay for grocery stores to be a little bit cleaner and you know, and for us to just learn to be considerate of those around us and some of their needs that they have and sometimes put them before ourselves. I know we're dealing with that narcy'. I'm I am really ledgis. I'm all for making permanent that the senior citizens...

...get the shop first at Kroger's, get our own hour. I'm really behind 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 clients and other businesses that I've worked in the healthcare space, I you know, I think that I have some level of hopefulness that there really will be a breakthrough any other vaccine and other treatments that come along between now and twelve day, eighteen months to help mitigate this. And until that point I think we're going to have significant waves and ups and downs and I think there will be like deeplasting impression and scars on people and businesses from this, but I also have seen we as a community have some short term memory loss, you know. So once, you know, once we're able to get more of the healthcare point of view under control, you know, some level of normalcy, get out of a crisis mode and into a more of a management mode with vaccines and treatments and fixing the health care system that's going to be really struggling and really broken down to some extent, and then rebuilt back up from this. I think that I am a hopeful that will find our way back to some peace of mind and some continuity. There will be those scars left to Scots mentioned that many people have from before got. Yeah, I know. I would hope I deco all the comments over is made there. You know, I think business itself is going to be everybody was challenged something. Not Everybody, but most votes were. Were challenged, from the normal office environment to changing their entire environment and how they go about doing business. And I find about half my clients are liking it. So if you're invest in commercial real estate, you know, look out, because I think the office spaces, that kind of stuff that the cohatch and the versa and they shared office environments are are probably going to be and wor in vogue, especially as the we have the younger generation jumping into the workforce here, where they're where they're working at all hours of the day and night and keeping kind of different schedules than maybe a Gen xer or or a baby boomer would have. So so I see that happening. The other thing I think I see happening to is that, you know, in the last ten years, you know, we've had since the financial crisis, the financial crisis, you know, heard a lot of folks, but this affects everyone, all right, everyone, and so there isn't anybody that's not affected by this. There's no company that's not affected by this. Some are doing well, some are not, but there, there. It's going to go down, as you know, obviously one of those big events and I think folks are going to probably re you know, re establish what their priorities are, a new maybe sense of the entitlements that we have here in the United States and and the way that we depend on food being on the shelf and they in the you know, they're in the supermarket, maybe a new respect for farmers that are doing their job and the sofood supply chain. So it trucker right now is one of the most important people, and the nurse, those kind of things. It's so the other thing I think it's going to transform as education. You know, I think we found the the the answer to the cost of education, and that is we're eliminating the overhead of education and trying to expand teachers across the larger classroom, using digital technologies and taking advantage of students ability to learn quicker. So so I think that those are some of the things that are there. The Financial Services Industry has been required to have a pandemic response since two thousand and three and so we already have plans that we've been...

...in acting. So a lot of companies that are not required to do that, they're not supervised or regulated by some Federal Authority. But world's definitely are going to be the same after this and I'm hoping that they'll be some sort of, you know, normalcy after this, though, that we can get, you know, the country back together and and continue to be the greatest nation on the planet. Yeah, I I am wrestling with what normal means and we we probably will see a new normal pretty soon, hopefully sooner than later, but it probably won't be the normal that we've we've come from and more to follow. For our audience, thank you for joining us today. I want to thank our panels again, Janet Gracer, I want to thank Marvit Soda, Scott mccomb, Holly Turner. You've got the ways to connect with them if you want to do so. I want to thank Joel Kessel, behind the scenes, Lindsay knocks, Lori Zen and that Devasi and Seaun headinger, because they helped us produce and put this together. I'm guessing we probably won't have another one of these next week unless there's an outpouring for everybody to say, Hey, we want to we want to do this again. I'm guessing it would probably try to do another one in the three to four weeks and and see where people are and see what what we know then versus we know now. But if there's a hue and cry that everybody says we want to, we need another one next week, we will certainly respond to your request to do so. But on behalf of everybody, want to thank you for your questions. You're for your participation panelas thanks for your expertise in your thoughtful responses to all of these scenarios that we've been we've been talking about. And with that, I'm going to wish everybody good luck. Be Safe, be well. Hope you get to be outside and be with loved ones and everyone in your circle of friends and family are well. With that, we're gone. Thank you. Thank you for listening to the ED epply experience. For more information on building a more sustainable, smarter and Healthier Business, visit www the eply groupcom for resources, tips and ED's latest blocks. That's the EPLE EPP l Ey groupcom. Plus, take a free assessment at the eply Groupcom assessment to find out how you measure up as a highly skilled and accomplished manager, and we're to focus on improving your skills.

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