IPAF announces new leadership
The International Powered Access Federation (IPAF) has announced that Peter Douglas is their new CEO and Managing Director, following a thorough recruitment process that attracted almost 50 applicants from around the world. The new CEO and MD will take up post on December 1, 2019 and will be based in the UK. Norty Turner, IPAF’s President, who served on the recruitment and selection panel, says: “The past few years have seen IPAF go from strength to strength, innovating to update its training courses into new languages and eLearning, developing virtual reality applications and creating exciting new events.” He adds: “With Peter being based in the UK, this will consolidate IPAF’s global headquarters and enable full-service support of the organisation’s core market and membership, which in recent years has delivered more PAL Cards than ever before.” “From its formation in the UK in 1983, IPAF has grown into a truly worldwide federation, expanding into new territories and now delivering training, safety guidance and technical expertise in multiple languages in 70 countries. It’s certainly an exciting time for Peter to come on board.” Andy Studdert, who has served as Interim CEO of IPAF and helped lead the recruitment search, comments: “I’m pleased to confirm our recruitment process has attracted some truly impressive candidates and that after such a competitive and wide-ranging search Peter has been selected to lead this organisation as it continues to thrive and grow. I’m honoured to hand over the leadership of IPAF to such a well qualified and enthusiastic CEO. Peter will take IPAF to the next level of excellence.” Peter says “I am delighted and honoured to have the opportunity to lead such a well-recognised and respected global safety, technical and training organisation; I am looking forward to the challenge of making the powered access industry worldwide as safe as it possibly can be.” He adds: “It is a privilege to have been selected for this exciting role and I cannot wait to get started. The work of everyone involved with IPAF is so valuable; promoting the safe and effective use of powered access worldwide and ensuring people conducting temporary work at height get to go home safe at the end of every day is about as worthwhile as any job can get. I am very grateful to be given this fantastic opportunity to bring my ideas and expertise to bear and look forward to working with IPAF staff and industry colleagues once more.”
Sandy Sullivan receives PTDA Foundation’s 2019 Wendy B. McDonald Award
Wendy B. McDonald was one of the power transmission/motion control industry’s true pioneers. To honor her memory, the PTDA Foundation established the Wendy B. McDonald Award in 2014. The award is given to a woman who has established herself as a critical contributor to her company’s success and has affected positive change within the power transmission/motion control industry. This year’s recipient of the Wendy B. McDonald Award is Sandy Sullivan. Sandy joined Nidec Motor Corporation/U.S. Motors in 2003 and rose from a role in business development to her most recent position as national account director. Sandy’s work ethic was to “do whatever it takes” to solve an issue for her customers. Similar to Mrs. McDonald’s experience, Sandy succeeded in this industry through building personal relationships while giving back to the industry. Sandy served on a variety of PTDA committees and task forces. She is especially proud of having been instrumental in establishing PTDA’s Women in the Industry community. Starting with a small group of women getting together at PTDA meetings, it has grown in size and holds quarterly conference calls with open discussion about succeeding as a woman in the power transmission/motion control industry. In her acceptance speech, she urged everyone in the room to think about what they could personally do to inspire or mentor a female in the PT/MC industry. The award was presented to Sandy during the PTDA Industry Summit by Brian Short, Global Strategic Account Manager at Regal Power Transmissions Solutions and President, PTDA Foundation Board of Trustees. For further information, visit ptda.org/WendyBMcDonaldAward.
ELFA releases the Industry Horizon report
The 2019 Equipment Leasing & Finance Industry Horizon Report emphasizes forward-looking economic and industry insights related to the U.S. economy—including near- and medium-term economic risks—based on market insights provided by industry leaders. The Foundation commissioned Keybridge Research to conduct this comprehensive research on the size and expected growth of the U.S. equipment finance market. Key findings from the 2019 Equipment Leasing & Finance Horizon Report include: Total equipment and software investment continued to grow in 2018, with nominal investment expanding by 5.9% to $1.8 trillion. Based on the results of the Foundation’s end-user survey and analysis by Keybridge, approximately 50% of this investment (and 55% of private sector investment) was financed, resulting in an industry sizing estimate of about $900 billion. The end-user survey also revealed that 79% of respondents who acquired equipment or software in 2018 used at least one form of financing to do so (i.e., lease, secured loan, or line of credit). This represents a substantial increase compared to the Foundation’s 2017 estimate (58%) and a return to levels observed in 2015 (78%) and 2011 (72%). The majority of respondents expect the volume of their equipment and software acquisitions to remain the same over the next 12 months (56%), while the share of end-users who expect volume to increase (22%) roughly matches the share who expect it to decrease (21%). Of those who expect acquisitions to increase, the majority (59%) expect to use a financing method to cover at least a portion of the cost. As the longest expansion in U.S. history continues, several economic indicators that have historically provided early warning of a downturn suggest that there may be a slowdown ahead. Overall, a recession will pose challenges for most players in the equipment finance industry. However, those challenges might be mitigated by the adjustments equipment finance professionals can make to their portfolios and strategy in the months leading up to a recession and at recession onset. Based on the new Foundation-Keybridge Equipment Finance Industry Recession Monitor’s current reading, we believe recession-like conditions for the industry—that is, a full recession or a near-recession that drags down the business and industrial segments of the economy, including the equipment finance industry—are unlikely to occur in the next six months. However, the preponderance of economic data suggests that a recession in the next 6–12 months would not be particularly surprising (though the probability appears to be less than 50%)—and a recession in the next 12–24 months is more likely than not.
Innovate to Dominate at the NAW Executive Summit
With a reception and dinner on Tuesday, January 28, 2020, the National Association of Wholesaler-Distributors (NAW) convenes its annual Executive Summit in Washington, DC, to help best-in-class wholesaler-distributors from diverse wholesale distribution lines of trade exchange ideas and best practices with other industry leaders with whom they don’t compete. The event concludes Thursday afternoon, January 30, with a closing luncheon featuring guest speaker John Roberts, Chief White House Correspondent for FOX News. Event participants who register and book their rooms at the Fairmont Washington, DC hotel using NAW’s custom link by Sunday, December 15, will receive a $100 room credit at hotel check-in. More details, including how to register, are available at www.naw.org/es20. The NAW 2020 Executive Summit’s theme is “INNOVATE TO DOMINATE” and over the course of a couple of days, meeting attendees will embark on the road to innovation! Participants will ignite their innovative mindset as they peer into the future of wholesale distribution, explore marketplace platforms, and examine the points of view of today’s business experts and next-generation distribution entrepreneurs who are creating new business models to satisfy industry and customer needs, and create new demand. Participants will immerse themselves in innovative principles and conversations with some of the best and brightest in business and our industry. They’ll leave the NAW Executive Summit with their vision sharpened and with clear perspectives on how to innovate to dominate in distribution so that they maintain their competitive advantage in today’s ultra-competitive digital age. From the General Sessions with industry experts to the Discussion Roundtables with distribution peers, all participants will find plenty of inspiration, actionable ideas, and “Why didn’t I think of that?!” takeaways to bring home to their companies. The NAW Executive Summit is where best-in-class distributors experience the best networking in the industry as they renew acquaintances and talk business with peers who aren’t competitors.
The 1st rule of Leadership Club, Don’t talk about Leadership
We live in a jaded world when it comes to leadership. We have all heard the person that speaks incredible advice on team leadership, recites maxims on how to enable employees, and then, in episodes of critical leadership practice, the same person fails horribly to lead even by the most fundamental measures. Too many people in significant leadership roles from Army Generals to United States government officials to CEO’s to Non-Profit executives have talked a great leadership “game” only to have their own leadership behavior fall woefully short of even the most basic expectations. Everyone can personally point to leadership speeches, leadership books, and leadership articles authored by supposedly “great” leaders that were later exposed as fabricators when their sordid behavior became exposed. Being a leader means more than flowery words, more than motivating speeches, and more than reciting classic quotes from Patton. Leaders who truly care about leading lead with humility, compassion, a focus on results, the mind of a teacher, the ethics of child, a lack of fear to enact difficult decisions, and a dedication to promote the team’s results over their own career aspirations. True leaders focus on the actual exercise of leadership that concentrates on treating people with respect, achieving goals, innovating, improving, serving customers, teaching, and developing people for more and greater challenges. A true leader focuses on action, open discussion, front line presence, and proof of results. Anytime a leader is celebrated more than those they lead and anytime a leader creates a cult of their infallible behavior, there are clear storms clouds of trouble and inconsistency. Lead with Humility. Humility is the constant and consistent recognition that you do not have all the information, insight, and background to solve every problem of the organization on your own. A leader recognizes that others are essential to success. A leader’s passion to explore, analyze, and improve a situation with the insight, contributions and focus from others drives success. The choice a leader makes how to handle mistakes in front of their team is a key leadership exercise of a leader. A leader that understands mistakes and learning from mistakes in front of a group is a sign of humility and a sign of honesty and fearlessness that allow an organization to move to success. Lead with Proof. Leaders that lead with open proof and clear evidence create waves of commitment in their organizations. Evidence based leaders drive commitment because they are honest, open, and clear concerning the results they want to achieve and the manner those achievements will be calculated. Proof convinces the most die-hard skeptics because a leader is not hiding results and open about progress. Leaders that show the entire team the results. Leaders who lead with proof are more open to initiative because if someone finds a new technique to improve a process, the worth of their efforts is in the evidence. Lead without Fear. Fear is the key element that destroys organizations, initiatives, and people. Team’s that are afraid will not act, will not innovate, and will not learn because they are terrified of failure. Great leaders know that stasis, not action, are what organizations need to fear. Leaders work themselves and their teams’ through fear because success comes when fear of the unknown, fear of the competition, and fear of failure are discarded and the potential of success, not fear, is embraced. In my days training in the US Army, we were punished for being afraid and not taking decisive action. Leaders that live in fear of failure paralyze not only themselves, but their entire team. Lead to Create. A leader leads to create. Building, the process of creation, is done towards solving problems for people, products, and services. The creative process finds success in people, concepts, innovations, and locations where others see only past failure, prospective failure, or a cloud of indecision. A focus on creation drives a leader to find problems, propose solutions, and then enabling solutions to solve the problem. Most importantly, creativity is an action step that choses resolute stages over perfect analysis and ineffectual activities that do not solve the problem. Lead to Change. Change is the activities an organization undertakes as critical factors in its environment transform over time. Every organization must change and continue to change to ensure it can continue to successfully execute its primary purpose. Leading to change is the process to align the businesses purpose with new requirements, consumer demands, competitive factors, cost factors, employee talent, and cultural issues to ensure that the organization can continue to successfully execute its purpose. Lead each Person. Leadership is the process where a person applies talents, techniques, and skills to bring an organization towards a set of defined goals. Leadership is a group activity that must be exercised towards the styles, feelings, and necessity of an individual on the team. A leader reaches and interacts with each team member according to their styles to create an environment where all team members believe they are essential, critical, and valued members that are all needed to achieve the organization’s goals. Always lead each person as an individual according to each person’s needs. People are unique, not material to be placed in a leadership “machine.” Lead for Today. No leader’s position is ever guaranteed. Ever. Leaders need to lead for today, improve for today, and makes others better for today. A focus on leading in the present forces a leader to be present for their team and the problems bearing down on the organization. Leading for today also drives a leader to be an immediate problem solver, because you may not be present tomorrow to fix the problem. When you recognize you may not be present tomorrow, it frees a leader to enable, teach, and drive their team to reach what is possible today. Real leaders don’t talk leadership. Real leaders do leadership. The best way a leader impacts an organization is to adopt a humble approach, using proof to excite the team, leading without
How to quiet the ego and lead with humility
If you think you have all answers, it might be time for an ego adjustment. Quint Studer shares advice to help leaders embrace humility and model it for their teams Great leadership is not always about being “right.” In fact, it rarely is. The leader’s job is to bring out the best in employees and to engage them in working together to do what’s best for the company. This cannot happen when a leader is too attached to their own ideas or convinced that they are the smartest person in the room. That’s why Quint Studer says humility is one of the most important traits a leader can have. “Leading with humility is about taking oneself out of the center of the equation, about keeping the spotlight on others,” says Studer, author of the Wall Street Journal bestseller The Busy Leader’s Handbook: How to Lead People and Places That Thrive (Wiley, October 2019, ISBN: 978-1-119-57664-8, $28.00). “It’s about quieting the ego so we’re open to learning and we’re focused on continuous improvement and growth. “Humility isn’t about being meek or submissive or thinking you aren’t good enough,” he adds. “It is about seeing oneself as one truly is. We know our strengths and our weaknesses. When we’re good at something and we receive a compliment, we don’t deny it. Rather we’re grateful that we’re in a position to help others develop that strength.” Humble leaders don’t assume they have all the answers. They know that an inflated ego can cause them to make bad decisions and lead the team down the wrong path. Also, it can alienate employees rather than engaging them, create dependency rather than ownership, and promote individualism rather than teamwork. Finally, an inflated ego can hinder learning, a crucial survival skill in business that enables organizations to innovate and problem solve in step with the ever changing global economy. It’s the leader’s job to model a love of learning for everyone in the organization—and humility is at the heart of that. So, what does humility look like in action? “For starters, humble leaders are those who direct their focus outward,” says Studer. “Intentionally focusing on others allows us to notice things we might not have seen otherwise. We pick up on body language and subtext, helping us build stronger relationships. Leading with humility also means we don’t mind seeking the input of others before making decisions. It means we never push our self-interest over that of the group. Finally, it means we don’t mind asking for help. And because humble leaders are well-liked and appreciated, we will receive it.” When we get intentional and proactive about leading with humility, we will naturally shift to a healthier state of mind. The ego will assert itself less and less. Here are a few tips: First, look for red flags that YOU might have a humility problem. The first step to getting better is always being aware that one has a problem. Hold up the mirror and ask yourself: Are you constantly reminding the people around you of how great or talented you are? Your ability should be evident in the work that you do. People will notice, and your credibility will come about organically. Are you self-righteous? Do you find yourself judging others (often openly) and talking about how you would never do the things they do? Do you take credit for things that were actually a team effort? Do you feel that menial tasks are beneath you? What are your motives? Do you go above and beyond because you value success of the organization or do you do it to gain affirmation? These questions can help you become aware of any red flags that may signal a lack of humility. Hopefully, very few of them apply to you, but most of us have humility slip-ups from time to time. The key is to be aware of it and rein in the ego when it starts getting out of control. Always model what you want to see others do. Never ask your team to do anything you aren’t willing to do, or expect them to keep standards you yourself aren’t able or willing to keep. Humility means knowing everyone stands on level ground. Leaders don’t try to present themselves as “special” or “different.” Develop and promote others on the team. “If you find yourself keeping things for yourself to do to show value, you are likely not coming from a place of humility,” says Studer. “A humble leader will eventually render themselves obsolete in their current role and then move up! Transfer ownership; raise your team up.” Give others credit. Push compliments down to the team. Actively look for places where you can give someone else the win—even better if it’s a junior person and you can use the opportunity as a learning experience. This means teeing them up nicely to be able to deliver something, then recognizing them for doing a good job. Be accessible. Don’t lock yourself in your office. Leading with humility means getting down in the nitty gritty with the team. Work with them, spend time with them, try hard not to be aloof or unapproachable. Make it clear that you have time for them and value interacting with them. Know when it’s appropriate to micromanage. On one hand, humility means letting go of doing things “our way.” If someone finds a new or better way of doing things, rejoice! We’ve done our job and helped them grow. On the other, we need to know when to micromanage. If we take a totally hands-off approach, we may set an employee up to fail. Then, we get to swoop in and be the hero. This is self-serving and the opposite of humility. Strive to be coachable. Seek to be a learner above all else. Be curious; ask if you don’t know. Don’t be afraid to admit if you don’t understand or don’t know what to do. Even the best leaders have strengths and weaknesses, and they never forget this. Ask questions as much as you
HANNOVER MESSE 2020: Digital transformation and logistics
Industry 4.0 and digitalization are transforming all sectors of the economy, including logistics, where once tried and proven material flow models are becoming obsolete as industry looks for new answers that promise greater flexibility and transparency. This transformation process is a source of far-reaching opportunities and avenues for growth for all logistics providers. But for the big, established players among them, it also harbors a certain degree of risk, as many startups are bursting onto the market with smart IT solutions and all manner of new products and business models. “What impacts the digital transformation process will have on individual firms and how big the disruptive potential of it all will be for logistics – these are questions that will be answered for exhibitors and visitors at HANNOVER MESSE,” commented Onuora Ogbukagu, the head of Marketing and Communications at Deutsche Messe AG. “No other platform in the world can match HANNOVER MESSE for its multi-industry focus on all aspects of industrial transformation.” “We know that the market is searching for answers and guidance, and it’s our job to share our experience. Today’s new ideas are much more oriented around technology, rather than hardware, which is why we will be presenting our stories in hall 4, alongside other technology leading exhibitors, rather than occupying the traditional truck pavilions where we have been in recent years” comments Matthias Fischer, President and CEO, Toyota Material Handling Europe. At the upcoming HANNOVER MESSE (April 20 – 24, 2020), some 6,000 companies from all around the world will present a broad array of industrial products and solutions. The innovations on display will include a wealth of logistics solutions from multiple backgrounds, distributed across several display categories. Among the providers of these solutions are such names as Autostore, Hänel, Metalsistim, STILL, Toyota Materials Handling, Sick, Siemens, SEW, Amazon Web Services, Microsoft, Oracle, PSI, SAP, Software AG and viastore systems. They will highlight the benefits of digitalization and present solutions for the digital management and control of tomorrow’s logistics processes. Small IT firms will also be there thanks to an IT group pavilion that puts HANNOVER MESSE within their financial reach. The pavilion is an excellent opportunity for these firms to position their IT offerings amid the broader international and industrial landscape of HANNOVER MESSE. Next year, for the first time, HANNOVER MESSE will also feature a dedicated speaking platform for providers of logistics services. Organized in partnership with the German logistics journal DVZ, the platform will be known as the CAMP Logistics. It will be located in Hall 4 and include a dedicated presentation forum where industry experts will discuss a range of highly topical supply chain issues, such as blockchain, green energy, drones, low-cost sensor solutions for warehouses, big data analytics and risk assessment, and startups in logistics, to name but a few. Spotlight on the future of logistics at the Logistics Forum Then there is the Logistics Forum in Hall 2 with its five-day program of quality discussion on such topics as the platform economy, artificial intelligence, disruptive business models, drones, automated guided vehicles and innovative strategies in logistics for trade and commerce. “Many of the topics discussed at the forum are of relevance for industry generally, and not just logistics. The platform economy is a case in point,” Ogbukagu said. “Many industrial companies at the SME end of the spectrum are concerned at the risk of platform solutions being developed by providers from outside of their industry and are therefore working to develop their own platform solutions.” Another forum topic of relevance to all industries and hence all areas of HANNOVER MESSE is the use of artificial intelligence in logistics. The potential is enormous, and many experts believe that logistics will be the first industry in which AI achieves widespread penetration. Robotics – in the broad sense of classic robots, cobots and automated guided vehicle systems – is another increasingly important factor in the logistics industry. And then, of course, there’s data security – a primary concern for all companies involved in the supply chain. In today’s production landscape, data needs to be shared between manufacturers, logistics providers and end customers. It is therefore vital to ensure that shared data repositories are standardized and secure, so that all companies involved can have confidence that their data will be used only for the purposes that they have authorized. Deutsche Messe’s content partners for the Logistics Forum are the German Logistics Association (BVL), the Fraunhofer Institute for Material Flow and Logistics (Fraunhofer IML), and the materials handling systems, intralogistics and software associations affiliated with the German Engineering Federation (VDMA). IFOY Award presentation ceremony The IFOY Award will be presented during HANNOVER MESSE on Monday 20 April 2020. Awards will be given for the best intralogistics products and solutions in a range of categories. HANNOVER MESSE HANNOVER MESSE is the world’s leading trade show for industrial technology. Under the lead theme of “Industrial Transformation”, the 2020 show will spotlight all the latest trends and topics, such as Industry 4.0, artificial intelligence, 5G and smart logistics. The display categories to be featured are “Future Hub”, “Automation, Motion & Drives”, “Digital Ecosystems”, “Energy Solutions”, “Logistics”, and “Engineered Parts & Solutions”. The program will be rounded off by more than 80 conferences and forums. The next HANNOVER MESSE will be staged from 20 to 24 April 2020 in Hannover, Germany, with Indonesia as its official Partner Country.
Embracing discomfort: Why allowing yourself to be unsettled makes you a better leader
Self-disruption in business is uncomfortable but necessary, says Quint Studer. These tips help leaders get comfortable with discomfort and do what’s right for their business Disruption is inevitable in business. Marketplaces shift. Customer needs evolve. New technology emerges. Employees come and go. Quint Studer says it’s far better for your company to disrupt itself than to let the marketplace force changes on you. If you wait and a competitor takes all the business, it will be too late. Being proactive, not reactive, will let you strategize and better control the process. There’s just one problem: Self-disruption is really uncomfortable. “Over the years, as I have interacted with many individuals and groups, I have recommended various actions that, if implemented, would improve performance and lead to better results,” says Quint Studer, author of the Wall Street Journal bestseller The Busy Leader’s Handbook: How to Lead People and Places That Thrive (Wiley, October 2019, ISBN: 978-1-119-57664-8, $28.00). “Quite often, I get pushback. A common response is, ‘I am not comfortable doing that.’ But much of a leader’s job is spent being uncomfortable and leading others through discomfort as well.” A good example of self-disruption is finding ways to differentiate yourself from competitors. Studer says this can feel uncomfortable to people. “I often suggest letting customers or clients know your training and experience up front,” says Studer. “Think of a scenario in which a chef comes out, introduces themselves, and reviews the dinner options. What if the chef added where they had gone to culinary school and also mentioned their other training and experience? This addition not only impresses the people hearing it, but informs them in a way that they can share it with others. This creates effective word of mouth. “The pushback I sometimes receive is that saying these things sounds like ‘bragging,’” he adds. “My response is, ‘No, it creates a feeling of confidence in the customer.’ Check the information on a poster advertising a concert, a play, or a performer. You’ll see that well-known, positive things are shared (e.g., if the performer is a winner of a Tony Award on Broadway or how many top-40 hits they have). There is nothing wrong with letting people know you are well qualified and good at doing your job.” Yes, taking actions that make us uncomfortable is hard. Taking actions that create discomfort in others is just as hard or even harder. Yet that is part of the leader’s job. If we are to do our job right, it’s inescapable. Here are some tips for handling the “unsettling” that you will experience as a leader and cause others to experience. Realize that discomfort is normal. As M. Scott Peck wrote in his book The Road Less Traveled, “Life is difficult…Once we truly know that life is difficult—once we truly understand and accept it—then life is no longer difficult.” It’s best if disruption comes from you and the organization and not from outside sources. Make time to work on the business, not just in the business. Reevaluate your company regularly. Schedule a time to pick apart your processes and systems. Keep that date, no matter what. Take it one department at a time. You are likely to find what you think is happening inside your company—perhaps even the very basic fundamentals—isn’t happening. This will give you a chance to step in and make needed changes—to disrupt yourself. Get in the habit of asking questions. Regularly ask employees what they think your biggest challenges are. What might the company do differently? What is holding us back? What is working well? (This may be the most important one of all, and, in fact, you should lead with it.) Also, question customers on how you can better serve them, when and where you’ve exceeded expectations, and what problems you solve for them. Never be afraid to ask questions for fear you might not like the answers. If you don’t ask, you won’t know what you need to improve. Own the messages that unsettle you and others. It is easy to blame someone else. Saying to the staff that you don’t like it either, but it is the corporate position, impacts the company poorly. Let’s say the yearly budget you are given is less than you had asked for. It will mean letting the staff know that more help will not be hired or a new piece of equipment will not be bought. As a leader, you have a choice: You can deflect the pressure (and ease the discomfort you feel) by blaming corporate, or you can carry the message yourself. Those who carry the message themselves and take ownership of it are the real leaders. “Don’t be afraid to ask corporate to explain something further so you can better understand the decision and explain it to your staff,” says Studer. “It will still be uncomfortable, but it is the way a good manager handles things.” Understand and explain the why. “I went to a dermatologist about a spot on my face,” says Studer. “The physician looked it over, took a small sample, sent it to pathology, and asked me to wait for the results. About 30 minutes later, he told me it was skin cancer and needed to come out. I then (nicely) asked him where he went to medical school and did his residency. He answered that he graduated from Vanderbilt University School of Medicine and completed both his residency and a fellowship in dermatology there. “Was he bragging or self-promoting by telling me his background? No. He was reducing my anxiety and building my confidence as a patient. That’s the why. Once people understand the why behind what they’re being asked to do, they are almost always willing to push through the discomfort and adopt the behavior. As leaders it’s our job to convey the why in a way that people can truly hear and understand.” Make it a cultural standard to immediately admit to mistakes. This is one of the most valuable things leaders and employees can do, because owning up to mistakes allows you to quickly fix issues and course correct. Yet the prospect of admitting mistakes
Monthly Leasing and Finance Index: September 2019–Volume up 18%
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, showed their overall new business volume for September was $10 billion, up 18 percent year-over-year from new business volume in September 2018. Volume was up 9 percent month-to-month from $9.2 billion in August. Year to date, cumulative new business volume was up 5 percent compared to 2018. Receivables over 30 days were 1.70 percent, down from 2.0 percent the previous month and up from 1.60 percent the same period in 2018. Charge-offs were 0.40 percent, down from 0.42 percent the previous month, and unchanged from the year-earlier period. Credit approvals totaled 76.3 percent, down from 76.6 percent in August. Total headcount for equipment finance companies was down 2.1 percent year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in October is 51.4, down from the September index of 54.7. ELFA President and CEO Ralph Petta said, “September data reflect solid performance on the part of equipment finance companies participating in the MLFI-25 survey. Another month of relatively strong fundamentals in the U.S. economy creates a favorable environment for businesses to continue to grow and expand, driving the equipment finance industry forward. Consumer spending continues to fuel the economy, notwithstanding signs of caution and concern raised by some over the impact of trade frictions with China, a pull-back in the U.S. manufacturing sector and recent geopolitical events in Syria, Hong Kong and elsewhere.” Michael DiCecco, Executive Vice President, Huntington Asset Finance, said, “Growth of 18 percent in new business volume on a year-over-year basis for September and 5 percent year-to-date demonstrates the strength of the industry and confidence that businesses had over the last 9-12 months to invest in equipment. However, it is important to note that the Foundation’s Confidence Index is showing a downward trend over the last three months and is now at the lowest level since 2016, reflecting a more cautious outlook on the strength of the economy heading into 2020.” View the full list of participants
New business travel per diem rates announced for 2020
Recordkeeping for reimbursing business travel expenses can be cumbersome. Instead of reimbursing employees for the actual costs they incur for out-of-town lodging, meals and incidentals, some employers opt to pay fixed travel per diems. These amounts are based on IRS-approved rates that vary from locality to locality. Here’s what you’ll need to know to determine if this simplified approach is right for your business. The Lowdown on the High-Low Method Do You Have a Plan? Employers without a formal expense reimbursement plan may be at a disadvantage when trying to attract and retain top salespeople and other employees who travel regularly. Here’s why. For 2018 through 2025, the Tax Cuts and Jobs Act suspended miscellaneous itemized deductions — for such items as tax preparation costs, investment expenses, union dues and unreimbursed employee business expenses — for individual taxpayers. Under prior law, taxpayers could deduct miscellaneous itemized deductions on their personal tax returns to the extent that the total exceeded 2% of adjusted gross income. Unless your business has formal expense reimbursement policies and procedures in place, your employees won’t be able to deduct any business-related travel expenses on their personal returns. That means, for 2018 through 2025, they’ll be forced to pay out-of-pocket for unreimbursed out-of-town lodging, meals and incidental expenses — without the ability to deduct those expenses on their personal tax returns. On the other hand, employer-reimbursed travel expenses aren’t taxable to the employee. And the employer can deduct reimbursed travel expenses as an ordinary business expense. Under the “high-low method,” the IRS establishes an annual flat rate for certain areas with higher costs of living. All the locations within the continental United States that aren’t listed as “high-cost” automatically fall into the low-cost category. The high-low method may be used in lieu of the specific per diem rates for business destinations. Examples of high-cost areas include San Francisco, Boston and Washington, D.C. (See the chart below for a complete list by state.) Under some circumstances — for example, if an employer provides lodging or pays the hotel directly — employees may receive a per diem reimbursement only for their meals and incidental expenses. There’s also a $5 incidental-expenses-only rate for employees who don’t pay or incur meal expenses for a calendar day (or partial day) of travel. The following items aren’t considered incidental expenses: Transportation between places of lodging or business and places where meals are taken, and The mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Consider reimbursing employees separately for these expenses, and then deducting the amounts as ordinary business expenses. (See “Do You Have a Plan?” at right.) No More Receipts If your company uses per diem rates, employees don’t have to meet the usual recordkeeping rules required by law. Receipts of expenses generally aren’t required under the per diem method. Instead, the employer simply pays the specified allowance to employees. But employees still must substantiate the time, place and business purpose of the travel. Per diem reimbursements generally aren’t subject to income or payroll tax withholding or reported on the employee’s Form W-2. It’s also important to note that per diem rates can’t be paid to individuals who own 10% or more of the business. Updated Rates The IRS recently updated the per diem rates for business travel for fiscal year 2020, which started on October 1, 2019. Under the high-low method, the per diem rate for all high-cost areas within the continental United States is $297 for post-September 30, 2019, travel (consisting of $226 for lodging and $71 for meals and incidental expenses). For all other areas within the continental United States, the per diem rate is $200 for post-September 30, 2019, travel (consisting of $140 for lodging and $60 for meals and incidental expenses). Compared to the prior simplified per diems, the high-cost area per diem has increased $10, and the low-cost area per diem has increased $5. The IRS also modified the list of high-cost areas for post-September 30 travel. The following localities have been added to the high-cost list: Mill Valley/San Rafael/Novato, Calif., Crested Butte/Gunnison, Colo., Petoskey, Mich., Big Sky/West Yellowstone/Gardiner, Mont., Carlsbad, N.M., Nashville, Tenn., and Midland/Odessa, Texas. On the other hand, these areas have been removed from the previous list of high-cost localities: Los Angeles, Calif., San Diego, Calif., Duluth, Minn., Moab, Utah, and Virginia Beach, Va. Important note: Certain tourist-attraction areas only count as high-cost areas on a seasonal basis. Starting on October 1, the following tourist-attraction areas have changed the portion of the year in which they are high-cost localities: Napa, Calif., Santa Barbara, Calif., Denver, Colo., Vail, Colo., Washington D.C., Key West, Fla., Jekyll Island/Brunswick, Ga., New York City, N.Y., Portland, Ore., Philadelphia, Pa., Pecos, Texas, Vancouver, Wash., and Jackson/Pinedale, Wyo. The Fine Print This method is subject to various rules and restrictions. For example, companies that use the high-low method for an employee must continue to use it for all reimbursement of business travel expenses within the continental United States during the calendar year. The company may use any permissible method to reimburse that employee for any travel outside the continental United States, however. For travel during the last three months of a calendar year, employers must continue to use the same method (per diem method or high-low method) for an employee as they used during the first nine months of the calendar year. Also, employers may use either: 1. The rates and high-cost localities in effect for the first nine months of the calendar year, or 2. The updated rates and high-cost localities in effect for the last three months of the calendar year, as long as they use the same rates and localities consistently for all employees reimbursed under the high-low method. Deductions for Employers In terms of deducting amounts reimbursed to employees on a company’s tax return, employers must treat meals and incidental expenses as a food and beverage expense that’s subject to the 50% deduction limit on meal expenses. For certain types of employees — such as air transport workers, interstate truckers and bus drivers —
Mac Rak joins the Rack Manufacturers Institute
Mac Rak, North America’s largest provider of engineered pallet rack repair and protection products, has joined the prestigious Rack Manufacturer’s Institute as an associate member. Mac Rak is a 19-year-old enterprise with manufacturing performed at a new 70,000 square foot facility situated on a 12-acre parcel in Moberly MO. Corporate SG&A office is headquartered in Lockport, IL. Mac Rak goes to market through the material handling distribution network. From inception and through today, the company has been driven and guided by engineering oversight on all products and processes. Mac Rak repair kits meet or exceed ANSI/RMI 16.1 guidelines. Mac Rak produces and provides nationwide installation services for ANY type of pallet rack system. Two of the three repair kit product lines carry a lifetime impact warranty. Mac Rak is excited to join RMI in order to aid in the continuing education of distribution center owners’ and operators’ identification of unsafe damaged rack components as well as their associated remedies. Additionally, Mac Rak looks to aid in the creation of meaningful, practical standards and procedures related to proper pallet rack repair with this new membership.
How to create balanced sales teams
Creating balanced sales teams may not be the first thing you think of when hiring and coaching but when you HAVE a balanced team, the results and benefits are clear to the bottom line, productivity, and engagement in the workplace. So, how can you work to create balanced teams within sales organizations? Well, it starts by understanding what a balanced team truly is…and what it isn’t. We’re all familiar with the sales archetypes that run rampant through pop culture. There’s the typical used-car salesman type, the shark, the “always be closing” type, and more. However, in today’s more sophisticated sales environments, those aren’t what we’re working with. Portrait of a balanced sales team Simply put, a well-balanced team is one where all the elements that make an individual salesperson successful are represented across the team. It’s unrealistic to think that all these employees will have the same level of mental toughness, something we’ve identified as necessary to create successful salespeople. If we look closer, however, we can see that underlying the standard “sales abilities”, you can find out how to balance all your teams’ strengths and weaknesses with a little knowledge. Digging deeper into your sales team’s strengths and abilities No one knows your sales team better than you do, and hopefully, you’ve used assessments to gain a deeper understanding into what makes them tick, what coaching style works for them, and how to develop mental toughness in those employees who are lacking. Let’s take that knowledge, expertise, and assessment information to figure out how to create a well-balanced sales team. You’ve likely already determined which of your employees possess the mental toughness to succeed overall, but what about your other employees? Get to know your employees. This seems like an obvious one, but when you take the time to get to know each employee, you may discover Heather’s capacity to see a complex sale through to the end, or Jona’s uncanny knack to calm an irate prospect down in order to get him to sign on the dotted line. While neither of these traits displays mental toughness per se, they are both crucial to a well-balanced sales team. Using these traits together with mental toughness and other sales-focused abilities and skills will create a well-balanced sales team. But you won’t know about any of these traits or abilities unless you assess your team properly and often AND take the time to get to know them and watch them at work. Ask yourself: How and when do they seem to work best? In which situations do they thrive? What tasks do their coworkers bring to them specifically? How do they respond to clients and prospects? It’s also worth noting that if you DON’T see them as mentally tough, or if they rated low on that attribute, dig into WHY. You may find something there that can help to round out the team. What other aspects can help create a balanced sales team? While mental toughness is one of the best indicators of sales success, it’s certainly not the only one. In our recent article, Power of Personality, we wrote about a few personality traits that are measured by the Caliper Profile found to contribute to sales success: Ego-Drive:A person with a high ego-drive is motivated by the ability to persuade others. For a salesperson, that means they feel good when they make a sale, so they’ll do whatever it takes not to lose. They’re driven by the desire to feed their ego. Empathy:An empathetic person considers how the things they say and do affect others. A salesperson with strong empathy will pay attention to the reactions of their prospects and adjust their tactics based on response. They are constantly taking the temperature of the conversation and will pivot as soon as they feel something is amiss. Urgency:Urgency means that a person feels compelled to complete a task quickly and efficiently. For salespeople, that means proactively setting up calls, following up promptly, setting hard timelines, and consistently pushing the conversation forward. So, our aforementioned “always be closing” archetype may have the trait of Ego-Drive, while the person in the office who gets really motivated on the 25th of every month might display Urgency. Having a team that possesses these traits can be incredibly valuable, especially since they can be driven by different things. Keeping your balanced team motivated One of the key reasons to create a balanced sales team is for it to motivate itself. When you have equal parts mental toughness, urgency, ego-drive, and empathy, your motivation cycle is often picked up by one member or part of the team at a time. While your ego-driven team may help the team start the month on a high note with her energy and desire to win, your empathy-minded team member may help get a difficult sale across the goal line. While the mentally tough employee continues to keep trying despite his low numbers, the urgency teammate can get the team to the end of the month with his focus on hitting the end goal. Note how these styles complement one another and can serve as antidotes when each of the attributes is eventually spent. Pay close attention to your employees’ attributes but know when to coach and activate them so they can motivate one another. Productive, tightly-knit teams have high morale, especially when they must work together to meet challenging goals. About Caliper – For nearly half a century, Caliper has been helping companies achieve peak performance by advising them on hiring the right people, managing individuals most effectively and developing productive teams. The accuracy, objectivity and depth of our consulting approach enable us to provide solutions that work for over 25,000 companies. To find out more about how Caliper can help you identify and develop people who can lead your organization to peak performance, please visit us at www.calipercorp.com or call them at 609-524-1200. Email editorial@mhwmag.com to contact Caliper.
One-Day Dealer Conference highlights
I have just returned from the One-Day Dealer Conference held on September 19th in Rosemont IL. This month I’d like to devote the column to the highlights of the conference and some of the content that we discussed. First of all, I want to thank all of those in attendance. We had a wide and varied group consisting of full line dealers, wholesalers, manufacturers, industry associations, and financial professionals. Wintrust Financial Corporation hosted the event at their facility in Rosemont IL. Intella and Panacea lift truck parts sponsored the event, and were on hand to chat with the attendees. The purpose of the event was to provide a forum of actionable ideas and programs that dealers could go back to their dealerships and implement. The session content ran on two different education tracks. I suggested ideas on dealership aftermarket planning and execution, while Garry Bartecki chaired sessions on accounting rules, tax ramifications, fiduciary responsibilities, and ESOP options for selling your dealership. Below are the highlights of the programs presented in Track 1: TRACK 1 – Dealer Aftermarket Operations Dealer Aftermarket Program Offerings Managing the changes needed in this area of the dealership requires dealers to adopt a new paradigm regarding the equipment delivery process within the dealership. Every aftermarket opportunity starts with the delivery of a piece of equipment which will eventually need to be maintained and/or repaired. If dealers start and maintain an initiative to treat the delivery process as the focal point of the aftermarket effort, this process will take on new significance, and it will present a unique opportunity for the dealer to achieve multiple new objectives: Key Points Dealers should create and offer multiple, unique and comprehensive MAINTENANCE ONLY programs that include all suggested OEM maintenance items at the OEM specified intervals. (Note: This would apply only to customers not already enrolled in a “full maintenance and repair” contract as part of their acquisition. Dealers should ensure that all of the programs offered are presented as multi-year agreements, and that service schedules are based around the estimated equipment duty cycle and application. The sale of standard PM contracts should be approached as a “fallback” service proposal, instead of the initial offering. Equipment warranty coverages should be explained in person and in detail on the day of delivery. This discussion should include warranty limitations and qualifiers. Dealers should create documents that can be signed by the customer affirming a complete understanding of warranty exclusions. The delivery process should be used as an opportunity to sell accessories and special services (“on purpose”). Accessories don’t sell themselves. The delivery process is the perfect time to suggest the addition of these items. Field Based Technician Autonomy and Customer Service Dealers say that they want to get more done with existing resources and manpower. The problem with leveraging existing resources is that it many times requires a dealer to rethink long standing policies that actually prevent employees from being productive. Key Points Dealers should construct internal mechanisms that control van inventory and pricing of common maintenance and repair items, so that field-based technicians can quote, close and complete field-based repairs while they are onsite at a customer location. Development of a field technician service menu program will require the following things: Analysis of the population of equipment being serviced Anticipation of the needed repairs based on the individual technicians’ “opportunities” Investment in van inventory that mirrors the opportunities for each technician. Training for technicians on how to identify, quote, sell and complete additional work “on the spot”. This is not as easy as it sounds. In the session we covered the goals, tools, resources and administrative functions necessary to create a robust service menu program, including: Analysis and assignment of PM’s to individual techs (or vans) Importance of ALL TECHS performing PM servicesDave Baiocchi How to change van stock metrics and mindset from “historical turns” to “opportunity to sell”. We discussed the benefits of instituting programs of this nature, including: Retail revenue growth Labor efficiency and productivity growth Administrative relief Customer service and first-time fix improvement Rental repair efficiency Fuel and service truck maintenance reduction Dealer parts planning The overwhelming majority of dealers do little strategic planning when it comes to the aftermarket side of their business. In many cases dealers have bought into the falsehood that there is not much that can be done to enhance forecasted sales of aftermarket items, as these departments operate only in proportion to equipment sales activity. This viewpoint is in error, as growing revenues can be forecasted by development of dealer-initiated programs, proper use of buying power, and planned campaigns to illicit the sale of accessories, high wear items, and safety products. Key Points How to limit insufficient or incorrect inventory on the shelf How to capitalize on OEM returns processing to keep inventory fresh and moving Creating a vendor qualification process in order to manage the consolidation of vendors How to actually PLAN and set reasonable goals for an increase in the aftermarket business How to use equipment sales history to determine the OEM parts inventory “sweet spot” How to strategically execute short term parts sales campaigns using employees in the CSS Sales department as well as parts countermen, and field service technicians How to “pair” inventory purchases with campaign goals (using your buying power) I will leave it to Garry Bartecki to highlight the Track 2 sessions in his column this month. I will say however that the compliance requirements of reporting your dealer revenue stream have changed, and cannot be ignored. Likewise, sales tax requirements have evolved. The US Supreme court has further affirmed that the SHIPMENT address where equipment is being utilized (whether rented or purchased) governs the sales tax liability. It’s important to understand and set up controls within your accounting system to comply with these changes. Garry also chaired a great session on ESOP options for selling a dealership. Not all dealerships will qualify, but in the right situations, funding can be obtained for a change in
Worried about not making sales? You won’t!
“I need more sales. I need more sales,” you say. Welcome to the club. Everyone needs more sales. “No, no, you don’t understand,” you say. “I REALLY NEED MORE SALES DESPERATELY. My back’s up against the wall. I either make more sales or I’ll lose my business (or get fired). I’m so worried about it, I… lose sleep at night drink too much have a short fuse blame others can’t get any work done at all can’t concentrate effectively all of the above.” If this is you, I have bad news and great news. The bad news is… Worry causes stress. Worry causes negative response. Worry causes ulcers. Worry causes insomnia. Worry causes headaches. Worry causes more stress. Stress causes illness, uncertainty and self-doubt. Self-doubt causes self-destruction and failure. Worry blocks creative thought. The creativity you so desperately need to get out of the hole you’re in. Yuck! Who wants that? Well, nobody wants it, but a lot of people have it. Here’s the great news…Getting rid of worry isn’t as difficult as you may think. You can totally change directions and outcomes with five words… Relax Identify Plan Act Smile Relax. I’ve had a statue on my bookshelf since 1959. It’s a ceramic bust of MAD Magazine’s (smiling with one front tooth missing) Alfred E. Newman. Inscribed on the statue is his famous (only) quote, “What, me worry?” It’s been my credo for more years than I care to acknowledge, but it’s also one of the deep dark secrets of sales success (or causes of sales failure). There’s nothing to worry about – it’s not brain cancer it just sales. You’re not ill, you’re just ill-prepared. You’ve got the total cure within you. Identify. You can’t sell if you’re distracted by worry. You can’t let your worry or stress show to your customers and prospects. They won’t have confidence to buy. But before you can get rid of worry, you must identify its real cause. The real cause of your worry may surprise you. Here are some things that may be adding an additional dose of worry without you realizing it… Non supportive spouse, parents The national news (all bad news) The local news (all bad news) Accepting the blame of others Arguing with others about petty things The newspaper (all bad news) People who complain People who meddle People dwell on problems People who are depressed Violence on television Violence in the movies Look at other aspects of your life that cause anxiety. It may not just be a lack of sales. There may be double (or more) stress points. LIST YOUR CAUSES. Try plugging five or six things into one electrical outlet. It is likely to blow a fuse. It’s the same with you. Identify the real causes and unplug a few things by taking them out of your daily routine. Plan. Once you identify the area that causes worry, change the worry item into an action plan for success. Write a separate plan for each item. Create ways to look at it differently, adopt a new (and better) attitude toward it, or just avoid it. Act. Concentrate on the action (solution) and the worry automatically goes away. It is critical to realize that stress and worry are not someone else’s fault. You bring it on yourself. There is only one sure thing you can get from worry and stress…a heart attack. The alternative is much better and much more fun you can proactively attack your worries and create a wallet bulge. It’s your choice. 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 editorial@mhwmag.com.
One-Day Dealer Conference recap
I am not kidding when I say you missed a hell of a program a couple of weeks ago. We had a nice mix of attendees, in super facilities provided by Wintrust Bank, listened to two presentations by Dave Baiocchi, and finished out the day with our cast of characters in the Rapid-Fire segment of the program. This program was fast moving, had active audience participation and provided a timely list of ISSUES to deal with within the next two or three months. Heck, we even continued the program during lunch. Dave covered two topics. First, how to “get” the maintenance and service business related to the sale of a unit. Second, how to improve parts and service turnover generating a higher percentage of parts and service sales per tech via better management of parts inventory and anticipation of required work. Follow his advice and you are guaranteed more parts and service business with higher margins. The hit of the program was Jim Margner, the state and local tax expert who has been working with me to assist both dealers and rental co. I can hear you now “State and local taxes, who cares?” Well, you better care because there is a new tax in town that is going to generate king size headaches for you from here on out. This new tax is referred to as Wayfair, which results from a Supreme Court decision that states if you sell in a state you have to collect sales tax and remit to the state even if you don’t think you have nexus in the state. As it turns out states seeing a windfall in tax dollars are setting up nexus guidelines you now need to consider determining if you must collect and remit the tax. Furthermore, the states see this as an opportunity to have you register to do biz in the state and at some point, I anticipate you will be asked to file income tax returns for the states you do “business” in. As you can guess the questions were numerous. For example, “I sell into many states, but which ones do I have to collect tax for, and for what type of transactions”. You may be selling on-line, you may be selling via brokers, you may be selling at auctions. What if you sell to A who delivers it to B or C.? Plus, many more examples. The bottom line here is you need a new level of expertise to help decide if you owe tax, at what rate, and to what state. Also, to answer the question whether you need to register to collect tax in that state? Will you need to file income tax returns in that state? And I can tell you the fees and penalties for not filing and remitting can be an eye opener. In fact, this whole issue is insane, and won’t your customers be thrilled that they are now paying tax and ask you to explain why. The answer to their question is “Ask Jim, he will tell you why.” There are customers, however, who are not end users of what you are selling and thus should not have to pay sales tax. In fact, when they initiate a sale, they are required to collect the tax and remit to the state in question. Boy, that sounds simple and gets you off the hook. Right? Not so fast, Mr. Dealer. That is true if you have exemption certificates from them, properly filled and available for inspection by state tax auditors. If you don’t have these forms and did not collect tax you will be assessed the tax (when it is not your tax but your customers) along with penalties and interest. In the end, the purpose of this process will be to help mitigate sales tax exposure. If you think you have potential exposure you get the same answer as before…..ask Jim if you do, and how you might reduce that exposure. Enough about Jim….I suggest you contact him if you need help. He knows your business and the types of transactions you are involved with. And I have seen him work his magic on tax assessments. I think we can safely say “Keep your friends close but your state and local tax person closer”. At least for the next couple of years. Jim can be found at Jmargner@comcast.net or 312 636-1155. After Jim finished up Michael Ploskonka CPA reviewed the new GAAP changes regarding revenue recognition and lease accounting. Again, two technical topics where I see lift truck dealers coming up with 10,000 different approaches trying to apply this new GAAP. When thinking about revenue recognition the new GAAP wants to match revenue earned and matched to what a customer receives according the terms of your contract with that customer. Knowing the dealer business, I didn’t come up with many examples of where this could apply, but there are a few: RPO transactions Maintenance contract revenues being collected monthly as part of a lease payment. Warranty issues Internal Billing. Others (let me know what they are) As far as the lease accounting is concerned it is pretty simple. Any contracts over 12 months in length must be considered as part of this new GAAP and need to be recorded as a liability along with a “right to use” asset that basically offsets the liability you are adding to your balance sheet. But adding liabilities on your balance sheet will cause your debt/equity ratio to change negatively which then may cause problems with bank covenants. Neither of these new GAAP pronouncements impact cash flow. They are only moving the numbers around for better reporting (they say). You can expect questions from customers who need to address the same GAAP issues. One major lease issue concerns a lease with maintenance. Maintenance contracts do NOT have to be capitalized on the balance sheet and as a result your customers will be asking for a breakdown between lease payment and maintenance payment.
Grace under fire: How to manage yourself during stressful, busy times
Workplace stress is a reality, says Quint Studer. But how leaders manage themselves in the middle of the storm is everything. These insights can help leaders—from CEOs to middle managers—successfully navigate the stressors of the modern work environment There’s no question about it: Today’s workplace can be stressful. The long work hours, the endless flow of information, the competing demands on our attention—all of these factors can make us feel perpetually overwhelmed and out of control if not managed well. The conditions that lead to stress are not “bad” says Quint Studer. They’re just reality. But he says the best leaders learn to deal with the conditions and problems that lead to stress in a way that keeps everyone on track. “How you behave when times are bad truly defines you as a leader and sets the tone for how others manage the situation,” says Studer, author of the Wall Street Journal bestseller The Busy Leader’s Handbook: How to Lead People and Places That Thrive (Wiley, October 2019, ISBN: 978-1-119-57664-8, $28.00). “If you create a culture where people fall to pieces when things get tough, it will be too stressful for employees (and they will likely leave), productivity will suffer, and all this ultimately will make your job harder.” Studer explains that relationships are defined by how we behave under stress. Difficult, busy times can put strain on relationships, but they can also forge stronger bonds if handled the right way. “When your team sees you pull things together and navigate them out of a tricky situation, it can be a huge credibility builder,” says Studer. “Conversely, when they see you fall apart, it can create a trust deficit that is hard to recover from, even when things settle down.” A few suggestions for managing yourself with grace under stress: First, eliminate as much stress as you can by being a well-run organization. Work to create a best-odds environment for eliminating problems. Things will go wrong from time to time. You can’t control everything. However, there are lots of things you can control. Make sure you have good processes and procedures in place for eliminating avoidable headaches. For example: Plan for disaster by learning from mistakes and fixing the culprits. Identify stress points and think critically about who they impact. What is causing increased workloads? Use this evaluation to decide where to delegate work and identify team members who might need additional support. (Don’t lower expectations. This will only breed excuses and erode performance over time.) Say no to some requests. This way you don’t have to scurry around trying to do them and then later explain why you didn’t get them done. Learn to prioritize (and teach others to as well). A big to-do list should not freak you out. Everyone is busy and they should be. Just use the list to work in a sensible order (evaluating daily what is most important). Often we try to close out small tasks to make room for bigger ones, when what we should be doing is prioritizing our to-do list and staying focused on the things that really matter. Just “getting things done” may feel good in the moment but what really matters is getting the big things done. Simplify when things get stressful. “Bring order and clear thinking to chaotic situations,” says Studer. “Keep an eye on what really matters and what can be cut away. A good leader can make a potentially crushing workload feel manageable. By taking a cool and methodical approach, you can make a huge difference in helping others stay focused and productive and keep their stress reactions in check.” Create a culture of calm. Be sensitive to the messages you’re sending out. Model calmness when things are chaotic. You teach your employees how to behave based on how you behave. The things leaders do, both positive and negative, get mirrored. And research shows that the ripple effect of negative emotions is considerably more intense than that of positive emotions. If employees see you panicking, they are likely to panic. If they see you staying calm and focused on solutions, they will mimic this behavior as well. “Also, try not to show physical signs of stress,” says Studer. “Wringing your hands and pacing around anxiously will not make things better. In fact, it will likely make your employees more worried and stressed out, negatively impacting their performance.” Don’t blow things out of proportion. Do everything you can to keep a level head. Sometimes our tempers flare when things are stressful. Try to avoid letting little things turn into big problems. When leaders lose their cool, problems only escalate. People get upset, and their productivity plummets. Plus, explosions can cause long-term damage and tank a leader’s credibility. In the end, all of this means more time fixing avoidable problems. Be careful about the words you use and the stories you tell. Avoid using words like “slammed” or “overwhelmed.” There is nothing wrong with stating that you are busy, but how you talk about being busy and carry yourself impacts others. It has a ripple effect. Just because you are stressed, it doesn’t mean everyone else has to be. Don’t bring your stress to the people. Keep the past in its place. Leaders can generate a lot of stress for themselves and others by rehashing mistakes and misses. Yes, frame these mistakes as learning experiences but don’t keep talking about them over and over and telling the story. It just becomes gossip at that point. Instead of focusing on past challenges, look for what’s right and constantly celebrate bright spots. This shifts the focus inside the organization. Don’t pretend to be fearless. “A common mistake leaders make is to pretend that everything is fine when it clearly isn’t,” says Studer. “Sometimes acknowledging that a situation or negative circumstance is real, and possibly even scary, is the best way to build trust with your team and get them to invest 110 percent on solving the problem. This is not the same thing as getting bent out of shape. You can
Begin addressing Opioids in your organization
This toolkit includes sample policies, fact sheets, presentations, safety talks, posters, white papers, reports, videos and more, so you can implement a workplace program on opioids. These materials will help you understand how opioids impact the workplace, recognize signs of impairment, educate employees on the risks of opioid use, develop drug-related HR policies and support employees who are struggling with opioid misuse. Getting Started Learn More Month-by-Month Implementation Plan Learn More Opioids in the Workplace Learn More Understanding Substance Use Disorders Learn More Understanding Opioids Learn More Preventing Opioid Misuse in the Workplace Learn More Understanding Treatment and Recovery Learn More Understanding Stigma Learn More Opioid FAQs and Stats Get the FAQs Case Study: Nationwide Cares Get the Case Study How Opioids Impact Employees’ Safety and Your Bottom Line Get the Infographic Building a Recovery-Friendly Workplace Learn More
The five myths of Business Strategy
Consider some of the most popular myths: Lightning never strikes the same place twice—it does. There is no gravity in space—there is, just less. Humans only use 10% of their brains—actually, a lot more—yes, even men. Pigeons blow up if fed uncooked rice—they don’t. Which myths or half-truths have permeated your organization and what effect have they had on your business? Running a business on myths, flawed business principles, and baseless assumptions creates needless confusion and a lack of strategic direction. A study of 10,000 senior executives showed that the most important leadership behavior critical to company success is strategic thinking at 97 percent. As good strategy is at the core of any organization’s success, it’s important to understand the strategy myths that may be holding back your team from reaching greater levels of success. Strategy Myth #1: Strategy comes from somebody else. “We get our strategy from the brand team/upper management.” This is a common refrain when managers in other functional areas are asked who develops strategy. It’s also wrong. The strategy that you execute should be your own strategy. Why? Because each group’s resources are going to be different. For instance, the sales team has different resources—time, talent, and budget—than the marketing team or the IT team or the HR team. How they allocate those resources determines their real-world strategy. It’s important to understand company, product and other functional group strategies to ensure that your strategies are in alignment. However, their strategies are not a replacement for your strategies. Myth Buster: Identify the corporate strategies, product strategies, functional group strategies and your strategies and seek alignment. Strategy Myth #2: Strategy is a once-a-year process. In a recent webinar presented to more than 300 CEOs entitled, “Is Your Organization Strategic?,” the question was posed: “How often do you and your team meet to update your strategies?” The percentage of CEOs that meet with their teams to assess and calibrate strategies more frequently than four times a year is only 16.9 percent, with nearly 50 percent saying once-a-year or “we don’t meet at all to discuss strategy.” A study of more than 200 large companies showed that the number one driver of revenue growth is the reallocation of resources throughout the year from underperforming areas to areas with greater potential. Strategy is the primary vehicle for making these vital resource reallocation decisions, but as the survey showed, most leaders aren’t putting themselves or their teams in a position to succeed. If strategy in your organization is an annual event, you will not achieve sustained success. Myth Buster: Conduct a monthly strategy tune-up where groups at all levels meet for 1-2 hours to review and calibrate their strategies. Strategy Myth #3: Execution of strategy is more important than the strategy itself. A landmark 25-year study of 750 bankruptcies showed that the number one cause of bankruptcy was flawed strategy, not poor execution. You can have the most skilled driver and highest performance Ferrari in the world (great execution) but if you’re driving that Ferrari on a road headed over a cliff (poor strategic direction)—you’re finished. A sure sign of a needlessly myopic view is that everything is an “either or,” rather than allowing for “and.” Strategy and execution are both important, but make no mistake that all great businesses begin with an insightful strategy. Myth Buster: Take time to create differentiated strategy built on insights that lead to unique customer value and then shape an execution plan that includes roles, responsibilities, communication vehicles, time frames and metrics. Strategy Myth #4: Strategy is about being better than the competition. Your products and services are not better than your competitors. Why? Because “better” is subjective. Is blueberry pie better than banana cream pie? It depends who you ask. “Is our product better than the competitor’s product?” is the wrong question. The real question is, “How is our product different than the competitor’s product in ways that customers value?” Attempting to be better than the competition leads to a race of “best practices,” which results in competitive convergence. Doing the same things in the same ways as competitors, only trying to do them a little faster or better, blurs the line of value between your company and competitors. Remember that competitive advantage is defined as “providing superior value to customers”—it’s not “beating the competition by being better.” Myth Buster: Identify your differentiated value to specific customer groups by writing out your value proposition in one sentence. Strategy Myth #5: Strategy is the same as mission, vision, or goals. Since strategy is an abstract concept, it is often interchanged with the terms vision, mission and goals. How many times have you seen or heard a strategy that is “to be #1,” “to be the market leader,” or “to become the premier provider of…?” Mission is your current purpose and vision is your future purpose, or aspirational end game. Goals are what you are trying to achieve and strategy is how you will allocate resources to achieve your goals. Misusing business terms on a regular basis is like a physicist randomly interchanging element’s chemical structures from the Periodic Table. You can say that the chemical structure of hydrogen is the chemical structure for gold, but that doesn’t mean it’s correct. Starting with an inexact statement of strategy will derail all of the other aspects of your planning and turn your business into the equivalent of the grammar school volcano science project with red-dyed vinegar and too much baking soda. Myth Buster: Clearly distinguish your goals, strategies, mission and vision from one another. If left unchecked, strategy myths can cause you and your business to fail. A 10-year study of 103 companies showed that the number one cause of business failure is bad strategy. Arm your team with the strategy myth busters and your business will soar higher than a pigeon with a belly full of uncooked rice. About the Author: Rich Horwath is a New York Times bestselling author on strategy, including his most recent book, StrategyMan vs. The Anti-Strategy Squad: Using Strategic Thinking to
ELFA announces Lori Frasier will receive 2019 Distinguished Service Award
The Equipment Leasing and Finance Association (ELFA) has selected Lori Frasier, Chair of the ELFA Women’s Council, to receive the 2019 Michael J. Fleming Distinguished Service Award. The award honors individuals who have made significant contributions to the association and the equipment finance industry. Frasier will be formally recognized during a ceremony at the 58th ELFA Annual Convention in Washington, D.C., on October 28. Frasier is recognized as the driving force behind the creation and growth of the ELFA Women’s Council. In 2016 as a member of the ELFA Board of Directors, Frasier proposed an initiative to grow the engagement of women in the association. She led the Board of Directors’ Women in Leasing Working Group, which analyzed survey data from female members of ELFA and identified strategies to increase the inclusion of women in the association. In 2017 Frasier was named founding Chair of the ELFA Women’s Council, a steering committee focused on providing access, inclusiveness and gender balanced leadership across all levels of ELFA and the equipment finance industry. Under Frasier’s leadership, the ELFA Women’s Council has developed a number of initiatives to increase the engagement and representation of women in the association. The Council launched the ELFA Women’s Leadership Forum, a popular annual event focused on leadership development for women at all stages of an equipment finance career. At the ELFA Annual Convention, the Council has presented breakout sessions on gender-balanced leadership and expanded participation in Women’s Council networking events. In addition, the Council launched the ELFA Women4Inclusion LinkedIn group, an online network that brings industry professionals together in support of gender-balanced leadership and inclusion. “Under Lori Frasier’s leadership, the ELFA Women’s Council is helping to lead the evolution of ELFA into a more accessible, inclusive organization that reflects the diversity of our members and the markets they serve,” said ELFA President and CEO Ralph Petta. “Lori and the Women’s Council have been working overtime to increase the engagement and leadership of women in our association and our industry, and this important initiative to achieve gender balance is paying off. We are thrilled to present Lori Frasier with the Michael J. Fleming Distinguished Service Award in recognition of her outstanding contributions.” “I am so humbled and honored to be recognized in this way amongst such an esteemed, committed group,” said Frasier. “I am proud that our industry recognized the need to create an avenue for more women to engage more deeply with this great association and also made investments to accelerate women’s access and inclusion at all levels. ELFA is a better organization today because of the women and men who recognize the fact that we are all stronger and more successful when we achieve greater gender balance in leadership.” Frasier has over two decades of experience in the financial services industry. Currently the Chief Human Resources Officer of CPI Card Group, Frasier started in equipment finance when she joined Key Equipment Finance in 2003 in global human resources management. She served as Senior Vice President of Human Resources and Administration before being promoted to Senior Vice President of Strategic Services in 2009, and Senior Vice President of Strategy and Performance Management in 2013. Prior to joining Key, she held positions at First Data/Western Union. Throughout her career, Frasier has been actively involved with ELFA. She served on the ELFA Board of Directors from 2016 through 2018. In addition, she has served as Chair of the Financial Institutions Business Council Steering Committee and the Human Resources Task Force and as a member of the Compensation Survey and Diversity Steering Committees. She has also lent her expertise to the planning of the ELFA Executive Roundtable for industry executives. Frasier is also active with the Equipment Leasing & Finance Foundation. In addition to being a Foundation donor, she is a member of the Board of Trustees and has served on the Nominating Committee. Outside of ELFA, Frasier has contributed to numerous organizations. She is a member of the Empowerment Council of the Women’s Foundation of Colorado, the Wise Women Council, the Colorado Thought Leaders Forum and the 36 Commuting Solutions Board of Directors. She graduated from the University of Colorado with a Bachelor of Science in Business Administration and from the University of Denver with a Master of Business Administration.
New ELFA survey finds moderate compensation growth in Equipment Finance Industry
A study released today by the Equipment Leasing and Finance Association (ELFA) finds that compensation in the equipment finance industry grew moderately in 2018. The 2019 Equipment Leasing and Finance Compensation Survey measures compensation rates for the 2018 fiscal year as reported by more than 75 companies representing a cross section of the equipment finance sector, including independents, banks and captives. The 2019 Equipment Leasing and Finance Compensation Survey details trends in pay for more than 90 executive, front-office and support positions, including a breakdown of salary (for 2018 and 2019), incentives (including cash bonuses and commissions), long-term awards and total compensation by company type. The survey is a collaborative initiative between ELFA and McLagan, a performance/reward consulting and benchmarking firm for the financial services industry. Highlights from the study include: Total Compensation: Total compensation was up on a year-over-year basis for most functions and levels. On a “same store” basis (constant incumbents in multiple survey years), total compensation was up modestly (~2–6%) at median for key revenue-generating functions from 2017 to 2018. Infrastructure functions received similar increases at median (~2-4%). Salary: Salaries were up slightly on a year-over-year basis. On a “same store” basis, origination roles tended to have increases around 2% at the median. Firms differentiated salaries on a functional basis as >25% of incumbents did not receive increases. Salaries tended to rise between 2–3% for infrastructure roles. Differences by Level: Total compensation increases tended to have a similar rate of growth across all levels of infrastructure and revenue-generating functions, while leadership levels saw slightly higher growth. The survey results are available for purchase at www.elfaonline.org/data/market-trends.