Episode 102 – The World of Dealership Finance
In this episode, I am joined by Garry Bartecki of GB Financial services and also the cover story author of the September 2020 issue of Material Handling Wholesaler. Garry and I discuss the world of dealership finance as we get into the current state of finance due to COVID-19, financing vs. leasing vs. renting, and how operations can work with their dealers to save some money during slower times. Key Takeaways Garry has been involved in the financing world for over 40 years working with dealers in multiple different ways. In those 40 years, there has never been anything quite like what has happened in the last few months during the pandemic. Garry discusses what the current climate looks like in financing which includes banks being more strict with loans. He mentions even companies that are in good standing are getting put under the microscope for new financing. This has to lead to a shift into renting over financing. Rentals are on the rise as there is so much change going on in their current environment. Garry’s guidance is to rent for the current need and then send back the equipment when it is not needed anymore. This allows for more flexibility and also keeps you from any long term commitment that may hurt you in a slower business period. He also recommends taking a look at all your current agreements and discussing with dealers if there are any potential changes to the terms that could be beneficial to you. During the current times, Garry suggests taking a close look at all of your current equipment and what costs are associated with them. He says to prepare for the long haul and not to take on any additional debt through leasing or financing which is why he favors renting. Additionally, he suggests looking at options for your lift trucks that may reduce overall costs like switching to lithium-ion batteries. Overall, taking a magnifying glass to your costs right now is the way to protect your balance sheet and help you get through tougher times. EP 102: The World of Dealership Finance This is the 4th installment of our partnership with Material Handling Wholesaler Magazine focusing on the cover story for their September 2020 issue. Host Kevin Lawton talks to cover story author Garry Bartecki of GB Financial Services about the current state of financing due to COVID. They get into financing vs. leasing vs. renting and how operations can work with dealers to alleviate some costs in slower times. Find the new issue of Material Handling Wholesaler at MHWmag.com Read the full cover story at Material Handling Wholesaler’s website here. Connect with Garry on LinkedIn here
Eleven tips for creating work/life balance in the virtual workforce
When you work remotely—as so many people are doing in the age of COVID-19—there’s no natural boundary between your workday and the rest of your life. Jackie Gaines shows you how to build and maintain greater balance so work doesn’t take over everything else According to a recent report, the average “pandemic workday” is 48.5 minutes longer than before. It also shows we are attending about 13 percent more meetings and sending 1.4 more emails per day to our colleagues. But this uptick in productivity has a downside: It’s destroying many people’s work/life balance. “Our work/life balance is already in jeopardy thanks to the impact of COVID-19,” says Gaines, author of Wearing the Yellow Suit: A Guide for Women in Leadership (Huron|Studer Group Publishing, 2020, ISBN: 978-1-62218-110-0, $24.00). “Extended workdays only intensify the situation. We are all working hard at our jobs while trying to homeschool our kids, keep the household in order, and still carve out time to connect with loved ones and enjoy our lives. It’s a challenge for everyone.” When you work from home, the “workday” becomes a slippery slope—especially when you’re constantly interrupted by your kids to help them get their schoolwork done online. If you’re not careful, meeting your work demands in this chaotic environment can crowd out your other priorities. But Gaines says you can take back control by getting very intentional about protecting your work/life balance in these unusual times. “We all need time to recharge from work,” says Gaines. “By setting some healthy habits for greater balance, you’ll be a much better employee or leader during work hours, and you’ll have more energy and focus for the other things you value.” Here is your to-do list for living a balanced life: Recognize the need for balance and commit to addressing it in your life If you just devote all your time to work, then you’re going to be neglecting the social, spiritual, and a multitude of other important aspects of your life. Be a whole person; be fulfilled in all different aspects of your life. Figure out what works for you The “right balance” is a very personal thing and will change for each person at different times in their lives. There is no “one-size-fits-all.” What we need as a young adult is very different from what we need in our senior years…it also may be very different based on our culture, our gender, or any variety of factors. The point is…it is unique for each of us, but definitely something that we all require in our lives. Beware of the technology chains that bind Cell phones and PCs blur the distinction between work and personal time. Don’t fall victim to this temptation. “In the age of nonstop virtual work meetings, you’re probably already sick of technology by the end of the workday,” says Gaines. “Spend time outside of work away from your devices. Have a conversation with someone in your household. Take a short walk for fresh air. Read a chapter in a book.” Use your faith to help put life into perspective “Faith makes all things possible,” says Gaines. “It offers me a healthy way to balance all personal, interpersonal, work-related, and community responsibilities. It is a rock to stand on in this crazy world…strength.” Be organized The most important issues related to having a good balance are organization, planning, and time management. This could mean planning meals a week in advance, laying out clothes the night before, and spending as much evening time with young children as possible. Recognize that balance takes work Balance is a necessary part of life—especially right now. It’s up to you to manage it. The choices made have costs and benefits associated with them. It is something that always has to be kept in mind to ensure that no component is neglected for too long. Here are some choices to think about: Consciously separate work and home. Consciously put family first. Work fewer hours. In work-from-home scenarios, set boundaries between work time and leisure time. Choose shift work so one partner is home to care for other family members. Learn to make do with less. Have goals Know your goal and plan accordingly. Know your priorities in life and what’s important. Don’t sweat the small stuff “I don’t stress out about daily life situations and I remember how fortunate I am to be healthy and safe,” says Gaines. “Most of all, you live only once and you need to strive for what you want and make the best of it. I don’t want to regret anything I didn’t do now when I am older.” Enjoy life—focus on what is going well, not what is stressful Take time to play, laugh, love, work, cry together, and respect each other. We all make mistakes at home and work. Take time for yourself and smile. Remain fit and use exercise as a way to deal with stress “I feel people who exercise regularly are better able to handle stress,” says Gaines. “Whether it’s 5:00 a.m. or 6:00 in the evening, exercising can improve the quality of your day. I also believe in recognizing the need for leisure activities that you enjoy, feeling connected to the community, and having goals for the future.” Make a date with yourself “You have probably heard about this trend for married couples to have a date night actually scheduled,” says Gaines. “I would like to push you into starting a new trend: date night, or morning…lunch…weekend…with yourself. If scheduling works best for you (it does for me), go for it! During your date time, do whatever it is that makes you happy—exercise, read, meditate, pray—whatever gives you just a small break for yourself. You will be surprised at the change you immediately start to feel in the quality of your life.” Remember, there is no magic pill that helps you find balance. We have to spark that journey in ourselves or continue on the cycle of madness. Finding balance has to be a
The World of Dealership Finance
The World of Finance at this moment is in a state of flux and will probably continue to be through 2021. I am preparing this column on July 27 just before the Cares and PPP program stimulus is set to expire at month-end. So far, the $600 per week stimulus has fortified consumer spending. The PPP program has done the same by keeping employees on the payroll. What happens if these stimulants go away? There is little doubt that jobs that were available six months ago are no longer there. Consequently, a significant number of our population will still be unemployed for the remainder of 2020 and perhaps well into 2021. Add in what is happening in the rest of the world and you can see that for many industries and personal services the outlook will be frightening. Taking this all into account, management in the material handling industry has to manage the balance sheet and cash flow, determine if results are according to plan and adjust the program as necessary to reach cash flow goals, keeping in mind that their ability to price products and services according to pre-COVID levels have and will continue to be challenged for some time to come. In this environment both cash flow and balance sheet management top the list in terms of where company managers must spend their time. This is an interesting interaction because solving to improve either goal can have just the opposite impact on the latter. For example, when you lease equipment the lease accounting reduces your earning and thus EBITDA, and in most cases is more expensive cash wise. Buy the equipment and your EBITDA and cash flow improve but makes your Debt Service and Debt to EBITDA covenants harder to reach. Me, I prefer to meet my covenants because banks today are not as friendly as they say they are. Speaking of your balance sheet and cash flow, please consider your credit policies and AR collection policy keeping in mind that a historically steady customer can become a credit risk practically overnight. Waiting until month end to review AR days outstanding could reduce cash flow if a customer credit score changed at the beginning of the month and you kept providing parts and services as if no change occurred. At our last MHW conference, a company called CREDITSAFE demonstrated how they can notify you immediately if a customer credit score has improved or deteriorated. You get a daily or weekly email highlighting which scores changed and why which is better than waiting 45 days to figure out you are not going to get paid. A very cost-effective product as well. Dave Gordon is their contact that covers both the material handling and construction equipment dealers. If you wish to stay ahead of the collection process you can reach Dave at David@dealerfinancialresources.com. Worked with Dave at AED and can assure you he knows the equipment dealer business. Let us review our Finance World in terms of leasing, rental, and financing transactions. LEASING In this current environment, I prefer to outsource as much as I can to keep costs under control and personnel spending their time on customer needs and not my internal needs. And I believe this goes for you as well as your customers. For trucks, vans, and cars needed to service customers I like to explore my options with a Fleet Management Company who can provide an analysis of what equipment I need along with the services I need to operate the equipment efficiently. I do not know about you, but a company must know their fleet and have accurate data to manage the equipment in the house. Somehow that never seems to work out the way it was planned. And with many companies having a lower employee count maintenance seems to fall by the wayside. These leases can be drafted to allow flexibility should the markets turn against your dealer activities. Current data indicates that Open-End leases are more appealing than a Closed-End lease. In any event, the FMC gets rebates for fleet transactions that lower the cost of ownership and at the same time manage the entire process to maximize uptime and expenses associated with the fleet. One-stop-shop that frees up your managers to profit from customer involvement. While leasing, as mentioned previously, currently avoids impacting the balance sheet the new Lease Accounting Rules when enacted will cause lease transactions to become a balance sheet item. That being the case I would discuss this future development with your bank to see how they will handle this change. Many bankers say they will not include the lease accounting “debt” in their calculations, but who knows if they will stick to that promise. If covenants are tight, I would try for month to month short term rentals if you believe the bank will include the leases in the calculation. And let us keep in mind this is the last year for Bonus Depreciation. If you can put the bonus deprecation to good use, you may want to purchase equipment or enter a capital lease that has be capitalized on the balance sheet. Needless to say, there is some thinking and planning that goes along with lease transactions. BANK FINANCING Any facility providing financing to your dealership is going to spend more time doing due diligence about your business. So, management beware because while banks understand that COVID has caused depressed earning and EBITDA results, they will still expect covenants and cash flow requirements to cover debt service. You would think that a customer who has always covered debt service would get a pass for Q2 20 but do not count on it. As we mentioned previously keep debt off the books and budget and execute to cover debt service for each Q of the year. Bank rates are good. For how long, who knows. Refinancing is certainly on the table if you can reduce debt service as part of the deal. But banks are nervous. Do
Powerful thoughts for relationship selling
Here’s the rock, paper, scissors game of selling: The relationship is more powerful than the price. The relationship is more powerful than delivery. The relationship is more powerful than quality. The relationship is more powerful than service. The quality of your relationships will determine the outcome of events when there is a problem or issue with price, delivery, quality, or service. I’m NOT saying that if you have a great relationship you can ignore important issues and skate by I AM saying that a great relationship will act as a buffer, and allow all problems and issues to be resolved harmoniously. And just to put the power of the relationship issue to rest, it is also the single biggest factor in determining reorders. Jim Cathcart is one of America’s foremost experts on selling through relationship building. “I’ve studied relationships over the past two decades,” says Cathcart, “And have not found anything more powerful to drive the sale.” Cathcart’s book called Relationship Selling is a benchmark study on how to do it right. He has compiled some observations and metaphors that might bring awareness to the power of your relationships with your customers, coworkers, vendors, friends, and even family. Feel free to share them (giving proper credit to the source and author) with others. When the relationship is right, the details are negotiable. When tension is high, the relationship is wrong, then the details become obstacles. When there is not much difference between your product and your competitors, there had better be a big difference in the way you deal with people. In selling and service as in medicine, prescription before diagnosis is malpractice! We judge ourselves by our intentions, but others judge us by our actions. Motivation is like bathing. It may not last, but it’s still a good idea now and then. (I find it works best every day how about you?) A professional is no longer determined by the business he or she is in, but rather by the way that person is in (and does) business. Observe the Platinum Rule: Do unto others as they would have you do unto them. If you want to improve your circumstances, begin by improving yourself. It is impossible to avoid leading by example. Somebody is always watching you. Maturity is being able to get yourself to do what needs to be done when it needs to be done whether you feel like it or not and still doing it well. Worrying is a mental rehearsal for (self-imposed) disaster. Become the kind of person who would (could) achieve your goals, and the accomplishment of those goals will be the natural byproduct. People will teach you how to deal with them if you’ll pay attention to the (spoken and unspoken) messages they are sending. One sincere gesture can do more for your business than thousands of dollars’ worth of advertising. It’s not just whether you sell the right item that counts. It’s whether the customer realizes, feels, and believes that it was right for them. The best way to get what you want is by helping others get what they want. People don’t care what you know until they know that you care. Your pay will always be equal to the contribution you are making. To give yourself a raise, make a greater contribution to others. Successful salespeople think and act as the owners of their careers. There are no traffic jams in the extra mile. Go there if you want to get anywhere. The rules of selling are not as tough as the rules of the relationship. Relationships are hard to develop, take time to mature, and must be nurtured along the way. BUT once achieved, are the most powerful force in the business world. How you treat others is determined by how you treat yourself. Are you treating yourself to the right preparation? Are you qualified to build a relationship? Do you possess the characteristics of giving first, professionalism, self-esteem, self-confidence, honesty, and integrity needed to make relationships work? If you think you “have it all together,” think again. You must work on yourself as much as you work on those you seek to relate to. Looking for a way to evaluate your capabilities? The biggest judgment you make each day is the one in front of the bathroom mirror. Reflections don’t lie. Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at salesman@gitomer.com or call him at 704 333-1112.
Diminishing returns
Now, more than ever, our industry is trying to leverage their existing assets, and get more production out of fewer resources. This is not news. Nobody looks for ways to waste money. Our efforts however are even more pronounced in an economy besieged by a pandemic none of us saw coming. Planned initiatives we envisioned in the fall of 2019, may have included targeted marketing, data mining, and rental investments. It’s amazing how quickly these strategies go into the dumpster when a cataclysm of this nature disrupts the supply chain and forces our customers into hibernation. When this happens, the knee-jerk reaction in most dealer boardrooms is to “pull in your horns”, stop investing, and preserve capital. I was a dealer principal for 17 years, and when the water got choppy, (anybody remember 2008?), I felt the natural tendency to do this myself. There are numerous ways to trim operational expenses. A dealer’s biggest cash draw (much like other businesses) is payroll. Cutting off paychecks is never easy, but certainly has the ability to “right the ship” in the shortest possible time frame. The strategy regarding WHERE (or who) to cut, however, should be predicated on if these decisions are short term, or a more permanent change. I saw this in 2008. At that time, many dealers cut their sales staff by eliminating their Customer Service Representatives (CSR’s), and shifting the responsibility of long-term customer care to the existing equipment salespeople (ES). Although this feels intuitive, there are pitfalls in this plan. The logic SEEMS solid. Why have TWO of your salespeople walking into the same customer location. Especially in more rural settings where covering the geography is more expensive and time-consuming, it just seems to make sense to have a utility infielder instead of a position player. The results however clearly show, that if dealers are truly expecting this strategy to give them 2 for 1 return on their investment, they are going to be sorely disappointed. There are multiple reasons why this seldom if ever produces the desired result. Hunters and Farmers Although both an ES and a CSR are considered part of the SALES department, the roles that they undertake and the skill sets they need to be successful are very different. I always explain this dichotomy by talking about the difference between a hunter and a farmer. Hunters have a singular agenda. They are focused on their target (the sale). Their planning and intent are pointed at a single moment in time (the date of decision). Hunters, especially in our business love to get the order. Their skill set is aligned with this process. Scout, Identify, Track, Scope, Shoot, and Bag. After the sale is completed, the hunter, based on a natural proclivity, wants to simply reload and get back out in the weeds to find another target! Farmers are a completely different construct. Their achievement is measured by their ability to Cultivate, Water, Fertilize, Protect and Harvest. Customer care is a different process than product sales, and it requires an employee who sees their success as a byproduct of customer advocacy and loyalty. Over the years, having viewed dozens of dealer sales groups across the country, I can say with all assurance that “in general”: Hunters don’t farm very well, and Farmers don’t hunt very well. It’s an exceedingly rare individual who can perform BOTH functions WELL. Customer Expectations Some dealerships have NEVER had a stand-alone CSR. The ES team automatically adopts the role of CSR. I am not so concerned about these dealers in the current climate. I could argue that your dealer value proposition and your competitive position in the marketplace could vastly improve if you diversify your service offerings, and actively sell “customer-care” with a dedicated CSR team. My focus however is on dealers that want to generate a payroll advantage by doubling-up these functions. If your CSR team is productive, and they are advocating for your customers in the way that they should be, then your customers have grown accustomed to this level of active participation. Does your ES have the time to replicate the frequency and the quality of these visits? Unless the customer wants to purchase more equipment, the short answer is no. The inability to manage customer expectations is the NUMBER 1 reason why dealerships lose business to their competitors. Customers have an expectation and vision of your competitive offering and value. A big part of that value (no doubt), is the relationship that was built with your CSR. It is unlikely that the ES will have the time, or the motivation to provide this level of service for every customer in the territory. If you don’t do something to intentionally interface with that customer and actively manage their expectations, your customer retention rate (at least from a service standpoint) is at risk. Warranty Part of the return on the investment of a CSR can be calculated in the warranty department. If a CSR handles the delivery of equipment, and the warranty documentation properly, they can save the dealership from having to constantly issue gratis repairs that rightly are not covered under warranty. The ongoing customer RELATIONSHIP with the CSR, allows them (once again) to manage the customer warranty expectation. As a dealer, you can expect that warranty gratis will be a recurring theme if you choose to consolidate these duties. Goals and Leadership Many times, the consolidation of ES and CSR sales teams normally happens in dealerships where the CSR staff is currently ineffective, and their duties are not well defined. Often this condition is caused by a gap in focus and leadership. Who does your CSR sales team report to? In some dealerships, it’s the equipment sales manager. If your equipment sales manager also leads the CSR team, consider how this manager is motivated and compensated. My argument with having the sales manager in charge of the CSR team is simple. It’s the same argument for not having the ES assume this role. Skills, Agenda,
MHI Partners with Women in Manufacturing
MHI has announced that we have formalized a partnership with the Women in Manufacturing (WiM) association. With this partnership, MHI plans to grow the already established Women in Supply Chain Industry Forum and the annual Women in Industry Conference, along with creating new content and opportunities for our members. Women in Manufacturing is the only national trade association dedicated to providing year-round support to women who have chosen a career in the manufacturing industry, representing men and women from manufacturers in every job function.
Women In Trucking Association (WIT) and Espyr announce continued partnership to support professional driver health
WIT provides drivers with continued Espyr behavioral health support programs Women in Trucking Association (WIT), a nonprofit organization with the mission to promote the employment and recognition of women in the trucking industry, and Espyr®, the leading provider of customized behavioral health solutions, announced a continued partnership to support professional driver health. The partnership will provide truck drivers who are members of WIT with an additional 90 days free access to Espyr‘s Fit to Pass℠ coaching program and TalkNow℠, Espyr’s CDL Driver Support Hotline. The trucking industry has been on the front lines of the pandemic since it struck our nation, and they continue to move the economy despite their daily exposure to the COVID-19 virus. This has led to a great deal of stress and uncertainty for those worried about exposing their families and friends in addition to worrying about their own health. Espyr’s Fit to Pass℠ is a customized coaching program designed to improve the health of professional drivers and help them meet the physical requirements of the DOT recertification exam. TalkNow℠ is a tele-mental health solution that provides immediate support for driver mental health and work-life related issues. Drivers and their family members can speak with an Espyr mental health professional without an appointment and without waiting. Espyr’s professional driver health services have been provided to all current WIT members for the past 90 days, and now, thanks to Total Transportation of Mississippi, this benefit has been extended for an additional 90 days. “Our drivers are on the frontline daily to ensure families across America have the essential items needed, said John Stomps, CEO of Total Transportation of Mississippi. “Their health and well-being are one of the most critical aspects of our Company. It’s important to the corporation that our drivers receive both physical and mental health support. With so many uncertainties in the world today, such as COVID, worrying about their own health and safety, as well as their family’s well-being. We are more than grateful to be in partnership with ESPYR to ensure our drivers are receiving the best support possible!” We have been so impressed with the results of our drivers who are participating in this program. From weight control to concerns about passing a CDL physical, our drivers are receiving both physical and mental health counseling through our partnership with ESPYR,” said Ellen Voie, President and CEO of WIT. “Professional drivers are among the many unsung heroes helping us to live through these difficult times, and we’re very grateful to Total Transportation of Mississippi for providing the funding for these programs.” “We are so thrilled to have Total Transportation of Mississippi join us in support of professional drivers’ health,” said Rick Taweel, President and CEO at ESPYR. “We have already seen some incredible stories of how drivers nationwide are turning their health around by creating healthy life-changing habits while on the road. And at a time when burnout and stress are becoming prevalent across the country, it is even more important that we invest in drivers’ health and well-being. Support of these kinds of services by Total Transport of Mississippi shows that it’s not just about the freight. It’s about caring more for the people who move the freight.”
June Manufacturing Technology Orders reach the highest monthly total of 2020 at $346.7 Million
U.S. manufacturing technology orders soared to $346.7 million in June, a 56% increase over May 2020 according to the latest U.S. Manufacturing Technology Orders report published by AMT – The Association For Manufacturing Technology. Total orders were down 6% from June 2019. Orders for new machines totaled $1.69 billion through June 2020, 26% lower than the total through the first half of 2019. “Given the level of uncertainty businesses are facing, the strong June orders are a sign of the underlying health of the manufacturing sector,” said Douglas K. Woods, president of AMT. “While promising in the current climate, June orders were still about 9% lower than the monthly average of 2019. The signals point to the current downturn not being as deep as initially expected; however, the duration of the downturn remains an open question. “June orders saw growth in several industries over the previous year. Notable increases were in the automotive sector, which almost doubled orders over June 2019. Agricultural equipment manufacturers nearly quadrupled and manufacturers of HVAC and commercial refrigeration equipment more than tripled orders for manufacturing technology. “It appears that the industries focused on end-use products bucked broader economic trends and increased capacity, while industries farther up the supply chain followed the general tide,” Woods observed. “It is only a matter of time before sectors farther up the supply chain will need to increase their capacity as inventories deplete and demand increases for component parts. “Between conversations with members and other data points, we are expecting this momentum to carry into July even if total orders are slightly below June. We will continue to monitor how quickly demand rebounds, but as Mark Killion of Oxford Economics noted in an address to the AMT membership in late May, a broad recovery across all customer industries may prove to be ‘irritatingly slow.’”
132 trainees set to launch their careers at KION Group in 2020
132 trainees set to launch their careers at KION Group in 2020 This year, the intralogistics group is offering 16 vocational apprenticeship courses and eleven-degree apprenticeship courses that open up a range of career prospects Including the most recent crop of vocational and degree apprentices, the KION Group’s German companies are currently training almost 600 young people The application and selection phase for training places in 2021 has already begun This year, 132 young people will begin a vocational apprenticeship or a degree apprenticeship with the KION Group. Of the new entrants, 107 will be working towards one of 16 technical or business qualifications, while 25 will embark on one of eleven bachelor’s degree or degree apprenticeship courses. Within its brand companies Linde, STILL, and Dematic, as well as at KION Group IT, the KION Group employs almost 600 vocational and degree apprentices at nine locations in Germany, including the latest recruits. Of the young people starting out this year, 87 have chosen technical jobs, such as mechatronics engineer or industrial mechanic. 20 of the new recruits opted for commercial training, e.g. professional qualifications in wholesale and foreign trade or in industrial sales management. 25 of the new starters decided on a degree apprenticeship, most of them choosing the route towards a BSc in business information systems. “A large number of applicants shows that our innovative products and growth areas make the KION Group an attractive employer for young people,” says Anke Groth, Labor Relations Director and Chief Financial Officer of KION GROUP AG. “We would like to offer good prospects to as many young people as possible by providing them with solid vocational qualifications – even at a difficult time, such as during the current coronavirus pandemic. Well-trained and skilled, motivated workers are the key to maintaining our competitiveness in the long term.” As they begin their training with the KION Group companies at the start of August or September, the new apprentices will be laying the foundation for their future careers. KION Group IT, Linde, and STILL are organizing ‘Welcome Days’ and induction weeks to help the new starters settle in. During guided tours, factory visits, discovery tours, and team-building exercises, the trainees get to know each other as well as their new companies. Following this orientation period, they all head off to their respective courses or departments, where they receive close support from their trainers and attend seminars for their personal and professional development. STILL in Hamburg, for example, is running a one-week seminar with the theme ‘Bestsellers of 2030’ this year. The trainees and students are asked to take an existing product – such as a vehicle drive system – and improve it to make it fit for the future. The new recruits get to plan the design as well as the commercial details. “Our aim is to get them to engage with our products and to identify with our company. We also want them to collaborate, to develop viable, innovative ideas, and to produce specific solutions,” explains Jan Wehlen, Head of Vocational Training at STILL in Hamburg. “Each group of participants presents the ideas they have developed to a panel of judges consisting of senior managers from the company and then faces critical questions on all aspects of their project.” At Linde Material Handling, project-integrated training is a core part of the program. The trainees form teams across departments to work independently on improving the company’s processes and workflows. This provides them with the experience of using a systematic approach and teaches them important interpersonal skills. Exceptional trainees also have the opportunity to undertake a four-week placement at one of Linde MH’s global sites, explains Christopher Klix, Head of Vocational Training at Linde MH in Aschaffenburg. Of the 77 apprentices who finished their training this year, 70 were taken on by the company, a retention rate of more than 90 percent. The application and selection phase for training places in 2021 has already begun. For more information on training, degree apprenticeships, and on the careers available with the leading supplier of intralogistics equipment, please see: https://www.kiongroup.com/en/Careers/Apprenticeships/ or visit the websites of KION subsidiaries Linde Material Handling, STILL, and Dematic.
WERC to become a division of MHI
The Material Handling Industry (MHI) and the Warehousing Education and Research Council (WERC) announced today MHI’s acquisition of WERC which will offer expanded knowledge and educational resources to both association’s audiences. MHI has acquired the assets of WERC and will operate WERC as a division of MHI. WERC was founded in 1977 when a number of individuals from the distribution field came together in search of education, research, and networking opportunities in the field of warehousing. Since then, WERC has developed educational programs and conducted research concerning the warehousing process and to refine the art and science of managing warehouses. Today, WERC offers a variety of networking and educational opportunities for warehousing professionals including their annual WERC educational conference, local WERC chapters, industry research, online learning, and facility certification programs. WERC members are the leaders and influencers in the warehousing, distribution, and fulfillment industries, across North America and around the world. “The acquisition of WERC complements our overall strategy to continue building our knowledge offering for the industry. This investment represents an important strategic opportunity offering additional value for both MHI and WERC membership. Together our platform will be stronger and deliver more value to the industry and our members,” said George W. Prest, MHI CEO. “WERC offers an exciting opportunity for MHI to strengthen and expand the member value for both WERC and MHI’s members in the areas of industry thought leadership and education,” said John Paxton, MHI COO and CEO Designate. “The combination of WERC’s members and their expertise in the warehousing and distribution space supports MHI’s strategy to bring material handling and logistics solution providers and users together in a collaborative environment for connecting, educating, and advancing the industry.” Michael Mikitka, CEO of WERC added, “WERC joining MHI provides a major growth opportunity for both our associations through an extended service offering for all members. As our industry evolves, together our associations will leverage its resources to provide the products, services, and information to advance distribution logistics professionals to do their jobs, excel in their careers, and make a difference in the world.” Mikitka will join MHI as Executive Vice President of the MHI Knowledge Value Center and will lead the WERC division within MHI. The expanded association will serve MHI’s 840 member companies and WERC’s 750 professional members.
MHI cancels 2020 Annual Conference and creates a digital event for its members
MHI has decided to cancel its 2020 annual Conference in Florida and replace it with a new digital event for its membership. “Due to the pandemic, it is with a heavy heart that for the first time in our 75-year history, we have made the decision to cancel our 2020 Annual Conference that was to be held in Orlando, Florida the week of October 12th.” said Geroge Prest CEO of MHI. ” What we are going to do is deliver member value through a digital event that includes two keynotes, a Transformation Age Roundmap 3.0 panel, and all industry group and community meetings.” Roadmap 3.0 Panel: Transformation Age: Shaping Your Future October 6, 10:30-11:15 AM The meetings will include a pre-event panel discussion on the U.S. Material Handling & Logistics Roadmap 3.0: Transformation Age: Shaping Your Future. The panel will be moderated by Roadmap 3.0 author Emmy Lou Burchette, Burchette & Associates and Thomas Boykin, Deloitte Consulting. Panelists include Brett Wood, CEO of Toyota Material Handling, Melonee Wise, CEO of Fetch Robotics and Naras Eechambadi, CEO of Quaero. Keynotes October 12, 1:00-2:00 PM Building Your Brand as a Leader and a Company During Challenging Economic Times Dorie Clark, Branding Expert and Author Branding expert Dorie Clark will discuss how to cultivate a powerful professional reputation both as an individual leader and as a company. With the current global environment, now more than ever companies and professionals need to continue to reinvent themselves and ensure that others recognize their unique skills and abilities. October 15, 1:00-2:00 PM Risks and Opportunities Ahead: Strategies and Scenarios Jason Schenker, President of Prestige Economics and the Chairman of The Futurist Institute COVID-19 has created wildly high uncertainty for the economy, the job market, housing, financial markets, the 2020 election, and national security. Join MHI Partner Jason Schenker for a fast-paced review of the current state of these risks and an essential deep dive into the outlook ahead for material handling equipment manufacturing, supply chains, e-commerce and automation. The digital event will be at no charge for MHI members. Click here for the current schedule.
ALAN Storm Alert – Isaias
The American Logistics Aid Network (ALAN) has issued an alert that it is monitoring Tropical Storm Isaias as it treks through the Caribbean, producing heavy rains with the potential to cause life-threatening flooding. This storm comes as ALAN continues to support Hurricane Douglas’ brush with Hawaii, Hurricane Hanna’s strike in South Texas, and the continuing COVID-19 pandemic. What ALAN is doing Yesterday ALAN began checking in with business, government, and nonprofit partners in the Caribbean and along the East Coast of the United States, to assess their readiness and any anticipated needs for logistics support. AlAN is also closely watching the infrastructure and industries likely to be affected so that we can assist with coordination efforts if and when needed. What You Can Do If you are a nonprofit that will be working on this or any crisis event, please share your anticipated or actual needs via our request for assistance forms. ALAN knows the pandemic has stretched everyone’s resources. But if you are a business and still able to offer pro-bono transportation, warehousing, equipment, or expertise, please let us know now. ALAN will match your offer with requests for support – together ensuring that those affected by the storm – or any crisis – receive the nourishment, hydration, and medical care they need. ALAN said they would share any unmatched requests in their Situation Snapshot on our micro-site, where you can always see the latest in logistics needs. ALAN also wants to ensure you have all of the information you need to protect your organizations and employees. They encourage you to log in to or request registration to ALAN’s free Supply Chain Intelligence Center. This is where you’ll find important information on potential impacts on shared infrastructure like roads, ports, airports, and more. As always, they are grateful for your financial support to help them keep the lights on. Donations to fund our work have suffered due to the pandemic. Your gift will allow us to continue our year-round work of serving communities affected by the crisis. Find more ways you can protect your organization, stay up-to-date, and become a part of the solution by checking out our handy STORM check-list.
PTDA welcomes six new members
The Power Transmission Distributors Association (PTDA), the leading association for the industrial power transmission/motion control (PT/MC) distribution channel, welcomed six new member companies. New Distributor Members: Allied Electronics & Automation (Fort Worth, Texas) is a high-service distributor of automation and control, electronic, electrical, mechanical and maintenance products from more than 450 world-class suppliers. With sales offices across the Americas, a focus on digital customer experience, ship-to-order accuracy and more than 3.5 million parts available for purchase online, engineers, designers, maintainers and purchasers trust Allied to provide a wide range of solutions across the entire product lifecycle. “As a leader in the distribution of industrial automation and control products that are critical to the design, operations and maintenance of modern industrial factories, the opportunities for industry collaboration and advocacy that come with PTDA membership are ideal for us at Allied. Through this opportunity, we look forward to cultivating relationships with new suppliers, manufacturers and customers in the future,” said Ken Bradley, president, Americas Region. Learn more at www.alliedelec.com. Consolidated Bearings Company (Cedar Knolls, N.J.) is an authorized wholesaler of precision bearings and related products, providing their customers access to the world’s best manufacturers from one reliable source. Established in 1932, they have remained steadfast in their mission to always put the customer first and continue to lead the industry due to our constant dedication and ongoing investment in customer service and quality products. “PTDA provides us with an opportunity to engage with industry leaders. The excellent educational offerings along with the valuable networking events make our membership essential in this leading association for the industrial PT/MC distribution channel,” said executive vice president, Daryl Rubinstein. Learn more at www.consbrgs.com. Global Parts Source dba Industrial Electric Service (Safford, Ariz.) is a family-owned and operated business with over 45 years of experience providing quality industrial parts. They know how important it is for the customer to get the right part as quickly as possible, so they have over a hundred thousand products from the best brands. They provide local delivery and fast shipping worldwide. Learn more at www.globalpartssource.biz McNaughton-McKay Electric Company (Madison Heights, Mich.) is a wholesale distributor with the capabilities, processes, technologies and employees to provide the innovative solutions their customers depend upon to move their business forward. Whether they have complicated process applications or simply need a list of products delivered, they have extensive experience in optimizing the distribution and solutions process to meet their unique needs. “We pride ourselves in both the relationships we share with industry partners and the knowledge we bring to the market. We joined PTDA to strengthen those associations and to help us expand our understanding of the industry,” said Bruce White, director of supplier relations. Learn more at www.mc-mc.com New Manufacturer Members: Dayco Products LLC (Troy, Mich.) is a global leader in the research, design, manufacturing and distribution of essential engine drive systems and aftermarket services for automotive, truck, construction, agriculture and industrial applications. Dayco’s 100+ years of experience in drive systems allow them to equip all customer applications around the world with the most effective drive systems to meet customer-specific performance requirements. Dayco’s world-class global distribution network services the aftermarket industry with a full offering of kits and products to meet each local market’s needs. “Dayco has launched its new industrial product line with all new formulations and established itself as a true industrial power transmission partner for PTDA members,” said Tom Tecklenburg, vice president of aftermarket, North America. Learn more at www.daycoproducts.com WON ST LLC (Sterling, Va.) provides industries with innovative linear motion & rotating bearing solutions. These are precision products that used to be fully integrated into designs. Industries served include semi-conductor, medical, machine tool, packaging, measurement & testing. They manufacture standard & special products to meet customers’ needs for the most challenging and demanding applications. “Through PTDA, we look to engage with customers and industry leaders so that we may learn, educate and ultimately build long-lasting and productive relationships,” said Paul Lee, president. Learn more at www.wonststore.com. The Power Transmission Distributors Association (PTDA) is the leading global association for the industrial power transmission/motion control (PT/MC) distribution channel. Headquartered in Chicago, PTDA represents power transmission/motion control distribution firms that generate more than $16 billion in sales and span over 2,700 locations. PTDA members also include manufacturers that supply to the PT/MC industry.
Episode 95 – Getting through the Pandemic with Vecna Robotics
In this episode, I was joined by CEO and Founder of Vecna Robotics, Daniel Theobald, as we reconnected post MODEX 2020 show (Episode 94) to discuss what has happened in the industry since the pandemic has hit and how Vecna Robotics is helping companies get through. Key Takeaways Vecna Robotics has embraced its philosophy of helping the community by reaching out even more to the community as it needs help during the pandemic. They have an amazing policy that employees should be dedicating 10% of their workweek to community and volunteer work. This can create a great culture and also an amazing corporate reputation. For Daniel’s time, he works as the President of MassRobotics which is an innovation and startup hub for new robotics companies in the Massachusetts area. With social distancing being a requirement in most facilities, the idea of deployment becomes a point of concern for some. Vecna Robotics has been working on addressing making deployments less labor-intensive which has been able to help them during this time because there is no more on-site person needed. Once the robot is delivered, it is turned on and then you can work remotely with a Vecna Robotics representative to do all of the mappings that are needed. The beauty of getting your first robot taught its surroundings is that it can share that information with each robot that you add to your fleet so the setup needs to be done just once. In the previous episode, we talked about Vecna Robotic’s orchestration engine Pivotal which is doing great work in helping facilities to maintain social distancing as well. By putting in more constraints about how close a robot can get to another robot or to the human workers, which are tracked in the system as well, the robots can help to control the distance of everyone working within the facility. One of the differences in our industry as opposed to most others during this time is that we have been experiencing increases in volume, with some companies even experiencing peak related type volume. That brings some different challenges including being able to hire enough workers but also to be able to keep that workforce distanced. Vecna Robotics’ robots are able to help with this challenge by having the robots do optimization to not only keep the distance as mentioned above but also to take the best path to get the most work done. Daniel discusses the difference between how a human mind would optimize versus how the robot would optimize. Listen to the episode below and let us know how are you dealing with the COVID times in the comments. EP 95: Getting Through the Pandemic with Vecna Robotics
Change management for implementing Mobile Robotics
As part of MHI view’s ongoing video program, this MHI view episode focuses on: Technological innovations are typically pioneered by large corporations with budgets to invest heavily in new, sometimes experimental equipment. Automation solutions are no different. However, to implement mobile robotics effectively, organizations must consider the changes they are about to undertake. To view the video, click here.
MHI Next-Gen Supply Chain Update: Building the next generation workforce
MHI’s 2020 Annual Industry Report aims to address the workforce shortage holistically – focusing on how technology, data, and culture can come together to bridge that gap. This episode of the Next Gen Supply Chain Update Series focuses on building the next generation workforce. Click here for the video.
A new approach To differentiation
Every organization wants to stand out from their competitors, but very few are truly successful at it. Outside of the frequently lauded names such as Apple, Amazon, and USAA, companies continue to do a lot of ‘talking about’ and ‘studying’, yet struggle to capture the same magic. The problem is these same organizations are using an old set of tools for a new set of challenges. The complexity of the customer has increased exponentially over the last 10-20 years. New technologies, communication channels, globalization, and new business models have disrupted, upended, or completely eliminated industries and products. “Instant” response and gratification have quickly become the baseline expectation, rather than the exception. So reasonably speaking, utilizing the same methods, mentality, and tools to capture and understand customer needs in a way your competitors won’t is virtually impossible, because they’re using the same tools and approaches as well. Traditionally, the method begins by “talking with customers” and observing them using the product or service in real life, examining the environment they use it in, understanding what broader objectives they have, and identifying ways in which improvements can be made. A fairly straightforward process. However, what’s missing is the magic of identifying differentiation. How will your organization discover something unique and different, that your competitors haven’t already seen? It requires a new methodology that encourages bold, measured action, and looking beyond simply “the today”. This brings us to the Brand Differentiation Canvas. The Brand Differentiation Canvas helps companies identify not only how they can differentiate, but serves as a strategic management tool and visual chart describing a company’s unique value, aligns focus, and illustrates potential trade-offs. The Brand Differentiation Canvas includes two main components: The “Ask” Grid – Designed to address 4 core areas: the Why, Who, What, and How. To be examined in this order, your team works to brainstorm each of these parts of the grid in-depth, contributing a wide range of ideas and concepts. “Moon” Commitment Statement – Based on the famous John F. Kennedy speech about the U.S. commitment to the space race and putting a man on the moon, the “Moon” Commitment is your organization’s bold goal – what you want to achieve that no other competitor has. The Pragmadik Brand Differentiation Canvas* Let’s go deeper into the process. The “Ask” grid is comprised of 4 building blocks of differentiation. Each of these is designed to get your team to explore deeper questions about: Why – Defining the bigger purpose – what broad objective you want to achieve for your customer and defining how you will measure success. Who – Defining the ideal target audience, where the greatest opportunity lies, along with those audiences and segments to avoid and not pursue. What – Identifying what products, services, processes, methods, and channels you need to achieve your bigger purpose/objective. How – Identifying an execution approach, leveraging your best internal assets and skills, and selecting key partners to provide unique support. The Brand Differentiation Canvas can be printed out on a large surface so groups of people can jointly start sketching and discussing brand differentiation elements with post-it notes or board markers. It is a hands-on tool that fosters understanding, discussion, creativity, and analysis. Differentiation can be a big challenge when it comes to today’s customer. However, by utilizing a new tool and a new approach, organizations can uncover unique differentiation opportunities and leapfrog their competitors. *Brand Differentiation Canvas is a Trademark of Pragmadik. About the Author: Andrea Olson is a speaker, author, behavioral economics, and customer-centricity expert. As the CEO of Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing.
Episode 94 – Vecna Robotics at MODEX 2020
In this episode, I was joined by the Founder and CEO of Vecna Robotics, Daniel Theobald at MODEX 2020. I have talked to Vecna previously and visited their HQ on Episode 33 but this is the first time I got to speak with Daniel and it was a great discussion. We discussed Daniel’s very interesting background, Vecna’s beginnings, the need for flexibility, their Pivot.al orchestration engine and also his role at MassRobotics. Key Takeaways Daniel has an incredible background in technology, growing up in Silicon Valley and being a part of many different technology programs throughout his schooling. The idea for Vecna was never rushed and their approach was to make sure they had a full stack to offer to their customers. With Vecna they wanted to focus on empowering the employee to do more to help employee retention and give them a better work environment. Vecna offers a range of automated forklifts that helps you to do repetitive movements of loads from one point in the distribution center to another reducing the need for employees to do these redundant tasks and helping to elevate what they do on a daily basis. Flexibility and adaptability have become so important in our world due to the increase in consumer demand and the need to meet increasingly higher expectations on service levels. Daniel discusses how Vecna helps you to bring that flexibility and adaptability to your operation. Their automated forklifts help to free up employees so they can do other more detail-oriented tasks. It also helps to take care of repetitive tasks when you need to be flexible on headcount either by choice or by market conditions. As we know and as Daniel mentions, in our industry, there is a lot of turnover for employees so at many times there can be a shortage of labor which Vecna can help address by having a consistent always their robot employee. Pivot.al is Vecna’s platform that controls and communicates to all of its robots. What is great about this platform is that it can be attached to any machine so that there is not a limitation in hardware. Daniel discusses how one of Vecna’s differences is that they did not build a hardware solution around their software but they built the software to be flexible for you. In addition to this flexibility, this orchestration engine works with other automation solutions outside of Vecna as well to help facilitate communication between different robots and systems. The overall goal of Pivot.al is to optimize your operation through AI so that everything can be manipulated to make the most optimized movements instead of just moving to move. With the strength of Pivot.al as an orchestration platform, Daniel says “Automation was so last decade” meaning that the different pieces of automation have been created and rolled out to the industry but now the focus needs to be on orchestration and how these automation solutions can operate together. We had a great discussion about how bottlenecks can be created from not looking at the whole picture and how by improving or automating one part of the process it can actually make another part a bottleneck. With the orchestration engine, you are able to see the whole picture and realize potential bottlenecks before they are actually in place. Keeping an open mind to the big picture is the key to true improvement and moving forward. Daniel also discusses his role as President of MassRobotics which is a group of robotics companies in the Massachusetts area that helps to support each other and helps to push the robotics industry forward. This is a really great group that is helping to improve the collaboration of robotics companies and also giving the ability for them to learn from each other to help the industry grow as a whole. Listen to and watch the episode below. Let us know your thoughts in the comments. EP 94: Vecna Robotics at MODEX
Women In Trucking Association Accelerate! Conference goes virtual
The Women In Trucking Association (WIT) just announced that its sixth annual Accelerate! Conference & Expo will transition to a completely virtual format to take place Nov. 12-13, 2020. After monitoring the recent escalation of COVID-19 cases nationwide, as well as in Dallas where the in-person conference was originally scheduled to be held Sept. 23-25, it has been determined that focusing on a comprehensive virtual event is the best path forward for the association and our attendees, said Brian Everett, organizer of the event. “This decision was made in conjunction with soliciting feedback from more than 400 WIT members, sponsors, exhibitors, and other key stakeholders,” he said, “which has confirmed that our community is fully supportive of a virtual conference.” “Diversity in experience, skills, and perspective is proven to be critical to the success of any company in transportation, and gender diversity is a critical path to this goal,” said Ellen Voie, WIT president and CEO. “This conference is one way for our industry to share new ideas and best practices that encourage the employment of women, recognize their accomplishments and success stories, and ultimately minimize obstacles faced by women in this industry.” This 2020 Accelerate! Conference & Expo will include these dynamic features: More than 40 educational sessions over two days focused on critical transportation issues and trends, along with perspectives of women in the industry. Five themed tracks are Leadership, Professional Development, HR/Talent Management, Operations, and Sales and Marketing. Panel discussions featuring insights and best practices from industry professionals and leaders, as well as professional drivers. Peer-to-peer interactive roundtable discussion groups that accommodate live discussions around common areas of interest. Dynamic virtual exhibition bringing products, services and value to the marketplace and facilitating dialogue between provider and buyer. All these features also will be available on-demand for those who cannot participate in the live virtual conference on Nov. 12-13. Group discounts are available to companies wanting to support teams interested in gender diversity within their organizations. More details and registration can be found at https://info.womenintrucking.org/accelerate-conference.
The CEO moment: Leadership for a new era
COVID-19 has created a massive humanitarian challenge: millions ill and hundreds of thousands of lives lost; soaring unemployment rates in the world’s most robust economies; food banks stretched beyond capacity; governments straining to deliver critical services. The pandemic is also a challenge for businesses—and their CEOs—unlike any they have ever faced, forcing an abrupt dislocation of how employees work, how customers behave, how supply chains function, and even what ultimately constitutes business performance. Confronting this unique moment, CEOs have shifted how they lead inexpedient and ingenious ways. The changes may have been birthed of necessity, but they have great potential beyond this crisis. In this article, we explore four shifts in how CEOs are leading that are also better ways to lead a company: unlocking bolder (“10x”) aspirations, elevating their “to be” list to the same level as “to do” in their operating models, fully embracing stakeholder capitalism, and harnessing the full power of their CEO peer networks. If they become permanent, these shifts hold the potential to thoroughly recalibrate the organization and how it operates, the company’s performance potential, and its relationship to critical constituents. Only CEOs can decide whether to continue leading in these new ways and in so doing seize a once-in-a-generation opportunity to consciously evolve the very nature and impact of their role. Indeed, as we have written elsewhere, part of the role of the CEO is to serve as a chief calibrator—deciding the extent and degree of change needed. As part of this, CEOs must have a thesis of transformation that works in their company context. A good CEO is always scanning for signals and helping the organization deliver fine-tuned responses. A great CEO will see that this moment is a unique opportunity for self-calibration, with profound implications for the organization. We have spoken with and counseled hundreds of CEOs since the pandemic first hit. It is clear to us that they sense an opportunity to lead in a new, more positive, and impactful way. If a critical mass of CEOs embraces and extends what they have learned during the pandemic, this CEO moment could become a CEO movement—one that is profoundly positive for the achievement of corporate, human, and societal potential. As Rajnish Kumar, chairman of the State Bank of India, reflects, “This will be a true inflection point. I think that this pandemic, in terms of implications, will be as big an event as World War II. And whatever we learn through this process, it must not go to waste.” Aspire 10x higher The global health crisis and its resulting business dislocations have unlocked change at a pace and magnitude that has made even the boldest and most progressive of CEOs question their assumptions. From what we have observed, there are at least two related areas that are ripe for innovation: goal setting and the operating model. Think bigger and faster During the pandemic, many organizations have accomplished what had previously been thought impossible. Cincinnati Children’s Hospital Medical Center (CCHMC), for example, scheduled 2,000 telehealth visits in 2019. It is now handling 5,000 a week—a goal that, prior to the pandemic, it had estimated would be accomplished several years from now and only after a large-scale transformation. At Dubai-based Majid Al Futtaim (MAF), attendance at movie theaters fell (as a result of government-mandated closures) while demand for its online supermarket soared; in two days, the company retrained 1,000 ushers and ticket sellers to work for the online grocer. Without the crisis, that speed and magnitude of reskilling to leverage talent across MAF’s portfolio of companies would never have been contemplated. Best Buy, which had spent months testing curbside pickup at a handful of stores, rolled it out to every store in just two days. In four days, Unilever converted factory lines that were making deodorants into ones making hand sanitizer. Life insurers have wrestled ingeniously with a unique COVID-19-related problem, says Jennifer Fitzgerald, CEO of Policygenius, an online insurance broker: “Some consumers don’t want the examiner in their house. We’ve seen a lot of flexibility from carriers. Some have moved quickly on the electronic medical-record side. We’ve also seen carriers increase the face amount that they’re willing to underwrite using data instead of the medical exam. . . . Overall, I think this has pushed the industry to adopt some changes much more quickly than it otherwise would have.” In a week, companies went from having 100,000 people working in offices to having 100,000 people working from home—a shift requiring systems and policy transformation that under normal circumstances might have taken years. Of course, the unprecedented scale and speed of the pandemic have created a “burning platform” impetus for these feats, but it is still remarkable that organizations have been able to make it happen. These achievements have come partly from people working faster and harder, although this is not the whole story, and many CEOs are taking the long-term view. Says Guardian CEO Deanna Mulligan, “We’ve been worried about our broader team in general because they’ve been working very hard. We’ve found that people are substituting their commuting time with working. Our IT guys are telling us that they’re getting three extra hours a day out of the coders. We’re mandating across the whole company that they can’t work after a certain hour at night or that they have to take a vacation because nobody’s taking their vacation days; they don’t want to waste their time off hanging around at home. But it’s going to be this way for a while, and we don’t want them to go a whole year working at this pace without a break.” CEOs are recognizing that the barriers to boldness and speed are less about technical limits and more about such things as mindsets toward what is possible, what people are willing to do, the degree to which implicit or explicit policies that slow thing down can be challenged, and bureaucratic chains of command. Realizing this, CEOs are appropriately celebrating the magnitude of what their