Meeting #26 09.10.2020

I started these Leadership Roundtable discussions back in March with one goal in mind: provide a forum for business leaders to discuss the issues they were facing during a time of great uncertainty. I tell you, at the beginning of this Covid-19 crisis, I think we all really needed this.

That was six months ago – SIX MONTHS! Half of a year has passed! Thankfully, things have gotten better. While there is still some insecurity, we can leave the house, get a haircut, visit with clients, see friends and family, even go to a bar or a restaurant. Yes, the coronavirus is still dominating the headlines and we have to wear a mask in public indoor areas, but things have changed.

Change is something we discussed during our roundtable today … not the changes we’ve faced over the last six months, but how we can change this forum to be more beneficial for you in the future.

It seems like every week has become more of the more of the same. We talk about the media, masks, politics, our mood, and so on. We have this great forum for business leaders, and we’re not talking about how to improve our businesses.

It’s time to change that, and we talked a lot about how we could change that for future roundtables. There were lots of great ideas, including:

• Discussion innovative sales function and ideas to increase sales
• Problem solve a specific user-submitted issue
• Develop a “Last 100 Days of 2020” program
• Bringing value to mid-market business owners
• Workshop ways to better lead sales teams

So, I’m not sure how this forum will change in the coming weeks, but change is coming.

Other Things

I’ve talked about this before, but I really love the “How I Built This” Podcast. I just listened to the one about Rad e-bikes, which is on pace to triple their businesses. Very interesting. Check it out.

I also read a story on last month’s Sturgis Motorcycle Rally in South Dakota – and how a liberal think tank says it was a Covid super-spreader event that could cost up to $12 billion in public health. If you ever needed proof that you can do anything you want with numbers, this is it. Read More.

That’s it for me. Have a great week!

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #25 09.03.2020

We’ve made it to Labor Day weekend, and a much-needed break. I’m hitting the road again in the RV and I’m looking forward to an extended weekend. Many of you, and your employees, are also looking forward to this weekend, or as Mike Walz of Miller Baking put it – a break is “preferable to mutiny.”

Some, obviously, need it more than others.

But, before we left for our destinations, we discussed a number of important topics during our weekly Leadership Roundtable.

Poor Bob

Our usual first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) yielded some strange results. While most were at an 8, 9 or 10, Bob Gross of Gross Automation was a 5.

A five? What gives?

Well, Bob’s company is in the middle of a Sales and Use Tax Audit by the State of Wisconsin.

“My company is getting a colonoscopy right now,” he said, joking, but not joking.

Bob went on to describe the auditing process – the entire crazy process.

The biggest issue he’s facing is that his company does a lot of international sales – and is not authorized to collect tax in many foreign countries. However, if it ships from Wisconsin then Wisconsin wants you to collect sales tax.

“Wisconsin wants you to export, but apparently the Sales and Use Auditor did not get that memo,” Bob observed.

The whole process sounds awful, and we get why you are down, Bob. Or, as Adam Brown of Good Land Wing Company and Sign Effectz put it, “I’m surprised you’re at a 5, to be honest.”

The Other Side of the Coin

While Bob is going through some things, others are doing better. Adam Brown recalculated his 3rd quarter projections and has determined he’ll be up 3 percent over last year, and the fourth quarter “is really looking good.”

Mike Walz hired a production manager and is going to have a couple of days off … something he hasn’t done in a long time.

Ranking in 2020

Adam asked an interesting question. How would something we rank as a 9 in 2020 measure up in any other year?

It’s an interesting question. We’ve faced some crazy challenges this year, so maybe it is leaving us with a better outlook. Maybe we appreciate what we have, and what we can achieve, more.

It makes sense. Like the old saying, “things are better when you earn them for yourself,” we certainly have earned a slice of contentment after the last several months.

But, is that affecting our ranking of things? I think we will always be happy when we are successful, and worry when things aren’t going exactly as planned. What I think 2020 has done is shown us what is truly important. Family, friends, our clients and our employees – they are important. Those other life distractions (or enhancements) aren’t. Sure, they’re nice, but when it comes right down to it, they aren’t a top priority.

Revisiting ICP

One thing we talked about early on was the importance of an ICP – Ideal Customer Profile. For those who need a refresher, an Ideal Customer Profile is a portrait of the client you want to do business, build a mutually beneficial relationship with, and grow with.

During tough times, many forget the importance of an ICP. Heck, sometimes a paycheck is a paycheck … or is it.

An ICP isn’t always about who you should be doing business with, it shows you who you should avoid doing business with.

I asked the group if anyone was using an ICP, and it was mixed response. Adam Brown said that Sign Effectz has an ICP, but also does jobs outside of it because they often lead to ones that do.

Good Land Wing Company, on the other hand, needs one. After switching from fried to baked chicken, they neglected to redo its audience focus to those who are looking for a healthier fast food option.

“So, we’re going through a SWAT analysis of Good Land to get back to the core,” he said.

Bob Gross said his company needs to redevelop its focus as part of his company’s evolution.

For reference, it seems like we refine our ICP several times a year, so it never hurt to give it a look.

Hitting the Road

Well, I’m out of here.

Have a very happy and safe Labor Day weekend. You’ve all worked hard, and you deserve a break.

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #24 08.27.2020

Good morning, everyone. It’s going to be another hot one out there today, but I’m not going to complain. We’ll have enough to complain about, weather-wise, in a couple of months.

Following my RV trek, I have been a little disconnected – which is both good and bad. I didn’t find out about major events like the unrest in Kenosha and Hurricane Laura until days after they first hit the news.

While these things are dominating the headlines, and I am personally troubled by both, we kept most of the conversation during today’s Leadership Roundtable focused on business.

Highs and Lows

Results of our first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) were wide-ranging – with 13% saying they were a 10, 25% at a 9, 38% at an 8, 13% a 7 and 13% at a 6. Never have we had such a varied response.

Adam Brown of Good Land Wing Company and Sign Effectz, said he was an 8 because he’s optimistic about his sales team.

Kurt Person of Bosch said he’s a 10 – he accepted an offer over list price on his Cedarburg house after only two days on the market. His company is also looking to hire 12 engineers from the outside. And the Powersports industry, which his division at Bosch supports, is set to have a record-breaking year in sales – with inventory completely depleted in most areas.

Our optimism poll yielded similar results, with 44% of people saying they are More Optimistic, 44% the same as last week, and 11% less optimistic.

When asked if anyone wanted to comment on why they selected less optimistic, it was silent. Adam Brown surmised that it couldn’t be discussed without, “going into politics.”

You’re probably right, Adam.

The New Normal

I asked the group if we’ve settled into this new world of ours, and if we are surviving or thriving. I was pleasantly surprised by the answers.

Mike Walz of Miller Baking said his company is thriving. Sales are higher than they have ever been, and a recent partnership with Culver’s Restaurant is paying off big time.

The Wisconsin-based chain is serving Pretzilla Pretzel Bites for a limited time, and the product is beating all expectations.

“Sales are 40% over predictions,” Walz said. “They are talking about extending it.”

Like many restaurants, Culver’s is drive-thru only. Because this a new adjustment to their business model, predicting sales is more difficult, Walz said.

Kurt Person, who talked earlier about Bosch’s recent Covid-related successes, talked about how other fast food restaurants have adapted. Singling out Chick-Fil-A, he marveled at how quickly restaurants have been able to adjust.

Adam Brown admitted his restaurants have had a difficult time adapting. Providing an extra layer of difficulty is the fact that one of his restaurants is in the City of Milwaukee. In order to continue operating a dining room (which Brown said was not highly used) they had to develop a 30-page reopening plan and submit it to the city. That said, with UWM students heading back to campus, the East Side location has gone from being the worst-selling location to the best.

Complications by Covid

Our lives have been interrupted. No newsflash here with that statement, still it is amazing from week to week to see how it is still affecting us. Here’s a few new ways:

• Building a house? Or a deck? Be prepared to pay more for building supplies. One person on the discussion said they have a relative who has been planning to build a house. They got an estimate last fall and, because of material shortages, the price has gone up by $80k.
• Door Dash, and other food delivery services, are becoming more popular. So much so, that companies are setting up industrial kitchens in parking garages as a hub for these deliveries. These kitchens contract with dozens of restaurants – preparing food solely for delivery. Think you’re ordering food from the Chinese restaurant downtown? It may actually be prepared in one of these kitchens.
• Where is the worst place to own a business in Wisconsin? Bob Gross of Gross Automation says it is Wauwatosa, while Adam Brown said it is definitely Milwaukee. Each made compelling, and sometimes hilarious, arguments in support of their opinions.
• The Wisconsin Badgers were supposed to have their home opener next weekend. I’ll be shedding a red tear.

Ending on a Positive Note

Bob Gross shared some exciting news. His company has been selected by the Metropolitan Milwaukee Association of Commerce for a Focus on the Future honors. The award celebrates how companies like Gross Automation are evolving in response to Coronavirus.

Bob said he didn’t know anything else about the honors, but said he is very excited to see what happens at the virtual event on Sept. 18 at noon.

“It’s good to see something nice to come out of this,” he said, and we couldn’t agree more. Congratulations!

Have a great week.

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #23 08.20.2020

I’m back in the saddle again here in Wisconsin, and while inaugural RV road trip was amazing it is good to be home. Apparently the Democratic National Convention was this week in Milwaukee … doesn’t look like a lot of people showed up.

Meeting #22 08.13.2020

I’ve been in my little anti-Covid bubble in my RV – doing work in the morning and screwing off in the afternoon. I have to say, it has been pretty sweet. Not surprisingly, when I sent out the invite for today’s roundtable, I received a lot of “out of office” replies. Seems like a lot of people are following my lead.

Good for you!

Because we only had two non-Vx-ers show up, Kurt Person of Bosch and Adam Brown of Good Land Wing Company and Sign Effectz, it was a shorter summit.

Finally Found a Home

After spending a good 10-15 minutes talking about mask rules around the country, the discussion turned to exciting news from Kurt. He and his family are selling their Cedarburg home and moving to Iron Mountain, Michigan.

Kurt said that while they were thinking about eventually moving to the U.P., things changed. So, they decided to move up their plans.

Congratulations, Kurt!

Working for a Livin’

Helping with the decision is the fact that Kurt is still working from home, and business in his division – Powersports – has been brisk.

As he mentioned a few weeks ago, sales in this division (which includes things like ATVs, Motorbikes and Marine Equipment) are way up this year. The marine industry, which usually tapers off this time of year, is still going strong.

“There is no dealer inventory,” he said. “And the dealers are screaming for replenishment.”

It does not look the same for the automobile and heavy motor industries – they are projected to be down by about 30 percent. One well known company is currently looking to simplify its business, decrease output and create demand with fewer products.

Sometimes Bad is Bad

Demand at restaurants is in flux as well. Sales are down about 40 percent at Good Land Wing Company, Adam Brown said, and they are looking at ways to improve sales – one of which is a new take on catering.

Much of Good Land’s catering business came from office orders. With more people working from home, catering has down to almost nothing. Brown said they are looking into a new mass delivery system to replace it. Hope that works out!

His other business, Sign Effectz, is doing much better. Business forecasts show this company will do the same or better than last year. Plus, He made four hires this week, a 50/50 mix of replacement and new positions.

Do You Believe in Love?

Adam Brown put out a press release touting the benefits of the Payroll Protection Program, and he’s hoping it will get some traction.

“You gotta talk about the positives and the stuff that’s going right,” Brown said. “I feel pretty strong about it. They are not getting due credit for developing that whole program.”

It’s a great article, and you can read it here.

Fore!

I’m heading home. This has been a great first adventure in the new RV, but I’m looking forward to getting back to Wisconsin. Not my lawn, I imagine it is quite overgrown. Shoot me a message if you want to hit the links.

Have a great week!

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #21 08.06.2020

I’m traveling down the open road this week, and I have to say I’m really liking this new lifestyle – living the RV life. It doesn’t hurt that I have unplugged from virtually all media outlets and I got a new margarita machine for my birthday, so I’m having a pretty good week.

Weekly numbers

For the most part, the rest of you were having a good week, too. Results of our first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) showed almost everyone was an 8 or 9 – all except for Adam Brown, the owner of Goodland Wing Company and SignEffectz, who clocked in at a 7.

Adam had a case of the Thursday morning blues. Apparently, he had just sent out an email to his sales team to update forecast data in CRM – a reminder email he dreads writing because it makes him feel like he’s babysitting adults. This led to our first discussion.

Motivation and Accountability

As leaders, we expect our team members to complete tasks – no matter how trivial they may think they are. While the primary goal of our sales staffers is to go out and sell, they also have to do things that are not selling – updating CRM, handing in mileage expenses, and other reporting. It’s not glamorous, to say the least, but it is important.

For Adam (and the rest of us), seeing a massive pool of sales forecasts is a misrepresentation of reality – because a lot of those sales have died. At the same time, a good salesperson doesn’t want to say die – they believe they can get the paddles, yell “clear,” and shock the sales process back to life.

It’s an internal conflict that definitely does need to be addressed – but how?

Jeff Van Straten of Payroll Data Services said it’s an accountability issue that can be dealt with through coaching.

“Sports are the blueprint for holding people accountable,” he said.

While many agreed with this, there is one other thing to consider.

There Is No I in Team

When we talked about motivation, the conversation naturally drifted to incentives – such as monetary rewards for completing tasks or achieving goals.

Individual incentives are great, but they don’t necessarily solve the issue at hand – especially when you look at your sales staff as a team.

Joe Fazio of Commerce State Bank said he motivates his teams by setting bank-wide goals.

Coaches coach teams, and the most successful coaches get their teams to motivate or bring up individual players.

If you provide an incentive for the team, and the team has an underperformer, they will help lift that team member up.

Look for that single measure that everyone can contribute to, and your team will flourish.

Where’s the good news about PPP?

No matter where you fall on the political spectrum, it is hard to deny the success of the Payroll Protection Program (PPP). As Adam Brown pointed out, there are many businesses that would have closed if that life vest wouldn’t have been thrown to them.

But, why aren’t we hearing those stories? The small family business that would have laid off workers for months? The midwestern manufacturer that didn’t have to shut down its production lines? The team of sales people who didn’t have to go on unemployment? Where are those stories?

Is it politics? Is it the fact that the media would rather report on doom and gloom? Do these businesses not want to admit publicly that they needed help?

Whatever the reason, it’s a shame!

Masking the Issue

I’ve been out of Wisconsin, so I’ve missed out the Wisconsin Mandatory Mask order. I’ll certainly put one on when I return, but I think one unintentional consequence is that they will discourage casual spending. At the gas station, maybe I’ll just pay at the pump and skip putting a mask on and going in to buy a bag of Cheetos. Maybe that’s a good thing.

Welcome to the Dog Days of Summer

Ever wonder why they call it the Dog Days of Summer? According to Mark Kannenberg of RBP Chemical Technology, it has nothing to do with dogs.

It has to do with stars. The Romans noted that Sirius, the Dog Star, was around during the hottest days of summer. Sirius is the brightest star in the constellation Canis Major – or Large Dog. So they started calling this time “diēs caniculārēs” or “dog days.”

“You can’t make that up,” Mark said. You sure can’t.

Speaking of summer, I’m going to get back to enjoying it. Have a great week!

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #20 07.30.2020

Remember a few weeks ago when I said I needed a break? Well, I finally took one, which is why today’s Leadership Roundtable was run by Vx’ers Amy Elleson-Bastar and Eric LaRose. I heard they did a good job, at least that’s what they told me.

The discussion was a little more freeform than usual, which is probably why the first 10 minutes were devoted to a discussion about the differences between whiskey, bourbon and scotch and duty-free shopping. Still, they managed to hit on some good topics.

The weekly numbers

For the most part we were doing ok this week. In our first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) almost everyone was an 8 or 9, only Bob Gross of Gross Automation was the sole 7, though after explaining why we all figured he was grading himself high.

Bob said he is currently refinancing his property, and part of the loan is though the SBA. Well, the SBA denied his application because they don’t supply loans to gas stations. Of course, Bob doesn’t run a gas station, but has spent the last several weeks trying to prove it. Our idea was to send the SBA rep a coupon for $100 in free gas, and when the come to collect on it they won’t be able to … because it’s not a gas station. Sorry, Bob, that sounds awful!

Kurt Brandt of LinqThingz shared a similar experience he had with the Department of Defense back in 2008. As a new administration took over, the DOD was instructed to go back to all defense companies that had received grants and re-audit them. The goal? Retrieve money for the government, despite the fact that it had been approved and audited under the previous administration. Hundreds of hours later, Brandt emerged from underneath a mountain of paperwork. He didn’t have to pay anything back, but other companies we not as lucky.

I guess the lesson is: done doesn’t always mean it’s done.

According to our weekly optimism poll, most of us were more optimistic (50%) compared to last week or at the same level (38%.) Mike Walz of Miller Baking was the lone person who was less optimistic. Why? Two reasons.

1. He watched the news. People! To quote Morrissey, “Stop watching the news, Because the news contrives to frighten you.” No one on the face of the earth has ever said, “you know, I was feeling like garbage, until I watched the news. Now everything is better.”
2. He needs help at work. Miller Baking is rolling out a new product, and they need a new plant manager – which is a very specialized, hands-on position. However, they are having a hard time finding the right person, and they can’t wait.

These two things really had Mike down, but ….

Amy B to the Rescue

After briefly drifting to another topic, Amy brought the discussion back to Mike’s personnel issue and mentioned to Mike that she may know someone.

Adam Brown, the owner of Goodland Wing Company and SignEffectz, mentioned to Mike that Indeed has a lot of new features, including technical assessment screenings, that could help him find the right person.

That’s why we do this people. When business leaders get together to discuss the issues they’re facing, good things happen. Leaders helping leaders – does it get any better than that?

Ready to read a depressing book?

Kurt Person of Bosch recommended Silicon States by Lucie Greene. It was written in 2018 and she predicted everything we are going through right now. Sounds like a fun, light read.

Other recommendations?

“Stay off social media,” said Adam Brown. We couldn’t have said it better, Adam.

Ok, I’m going back on vacation. Have a great week!

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #19 07.23.2020

I have become less tolerant of negative people.

Unfortunately, there are a lot of them out there right now. Not this group (thank God!), but I think you all know who I’m talking about – those people who don’t respect what you’re doing or what you’re trying to accomplish with your business. In fact, they seem to be doing everything they can to drag you, and everyone else around you, down.

Here’s the thing: even though it’s a shitshow all around us, at the end of the day things are pretty good. There’s more opportunity out there, optimism for the most part is growing (we’ll address this later), and the sweet distraction of baseball has officially started.

Still, there are a lot of assholes out there – and for every one of those we’re dealing with in life there’s a good person we’re not connecting with. And while the assholes appear to be winning, as Bob Gross of Gross Automation pointed out, we don’t have to let them win.

I know the grind is hard, and honestly there are times when I’m kind of sick of it, but as Jeff Van Straten of Payroll Data Services said, it’s so important to stay positive – for us, our team and our clients.

Strange Consequences of Covid-19

Since Coronavirus first reared its ugly head, we have experienced shortages in the marketplace. Some made sense: hand sanitizer, material for making masks, supply chain interruptions. Other shortages, however, have been … odd: toilet paper, kayaks, yeast, meat, change (coins, not the ability to adjust).

The latest strange scarcity is used cars. As Bob Gross observed, used car inventory is lower and, consequently, prices are significantly higher. This is the unintended outcome of two things:

1. Fewer people are using Uber. Kurt Person from Bosch said a spike in used car sales has been directly attributed to ride share customers not feeling comfortable about getting into another person’s car.
2. The Cash for Clunkers program. As Bob Gross noted, during the last recession the federal government funded the removal of inefficient vehicles from the market. Could this have led to a shortage of used vehicles today? It’s very possible.

Interesting, right?

On a related note, Kurt Person said the auto industry is way off for the year. The forecast for U.S. production is around 12 million vehicles for the year, down from its usual 17 million. Not only that, while new trucks are selling, new smaller vehicles are not.

The Numbers

When it comes to our first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) 56% of us are a 9, 33% of us are an 8 and 11% of us ranked as a 10. That’s a fine cluster.

when it comes to our optimism about the state of life this week vs. last week, 80% of us are the same or more optimistic while only 20% are less.

Celebrating the Wins

Back to being positive, Bob Gross shared simple technique for keeping his focused on the good things – a board of wins. Employees are encouraged to write down their wins for all to see, then at the end of the month they have a celebration.

“Why not celebrate your wins?” he asked.

This spawned a discussion of wins celebrated recently by everyone on the call. Most, of course, couldn’t go into detail except to say they won a new client, they are launching a new product, or they are hiring, but it was great to hear that there were so many wins out there.

Question of the Week

We expect a lot from our teams. That’s why we set goals, sales quotas, revenue projections, etc. In the wake of a global pandemic, I wondered: As leaders – are we tempering our expectations because of Covid-19, or are we driving towards performance?

The short answer is: yes, but …

“2020 flushed down the toilet in terms of goals and continuous improvement projects,” said Adam Brown, of owner of Goodland Wing Company and SignEffectz. “Now we’re just trying to get back into the swing and are maintaining.”

Adam also said his forecasts show third and fourth quarters trumping last year because of catch-ups. We’re all hoping that comes true.

Kurt Person said his company has agreed “to soften EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). “We’re still looking to be positive sales growth over last year,” he said, but added that in order to stay positive the company doesn’t want to hinder sales achievements by getting overly focused on the numbers.

Again, it’s about staying positive, and moving in the right direction.

“There’s nothing that can’t be solved by an increase in sales,” said Bob Gross.

Wrap It Up, I’ll Take It

I’m hitting the road soon, taking the first long-distance RV trip. Knowing that is on the horizon really elevates my mood. So did today’s discussion. I probably came in as a 7 but ended at an 8.

And, even though I’m sure there are rants and raves I could go on as I wrap up this summary, I don’t want to change my optimism score. Have a great week!

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #18 07.16.2020

It’s that uncomfortable time again – the weeks leading up to an election. To make matters worse, we are still dealing with Covid 19, and everyone has an opinion on just about everything. The second we settle one debate, a new one arises – masks, racism, Columbus, school openings (with or without masks) – it’s emotionally, physically and mentally draining.

That defeated feeling came across in today’s call. Our weekly number echoed this, with 87% being at an 8, with no 10’s in the bunch. It seems any type of happiness is drowned out by the lingering situation.

Bob Gross, of Gross Automation, stated he was a 6 this week. He said he was exhausted from trying to keep his team intact. People are leaving to go back to their home countries or leaving for better opportunities. Plus, with Wisconsin’s Work-Share program in place, hiring is a lot more difficult because they would have to work a full five-day week, as opposed to current employees only working three days.

To Facebook or Not to Facebook…That is the Question?

Much of today’s call was spent discussing Facebook and the toll, or role, it is taking on/in our lives. Facebook has become the destination for conflicting opinions – without the possibility of intelligent discussion or middle ground for compromise.

Adam Brown voiced his concern for Facebook and social media for the younger generation. He has a daughter and boyfriend living with them. Adam feels they are being are influenced at a high regard and feels that social media is steering them blindly down a road. He feels certain groups are taking advantage of their innocence.

Joe Fazio does not understand the attraction to Facebook and feels it breeds depression. In addition, Joe said he does not watch the news and says everything has become too political. Because of this, it is easy for us to get down on things, but we need to make focus on positive. He admits that he is not the most optimistic guy in the world, but feels we need to train ourselves to be positive.

I personally, only use Facebook for groups and not individual posts. There is no point trying to find real news on Facebook because headlines are not written to inform, they are written to generate revenue. Basically, Facebook is just depressing.

Covid 19 Issues

It seems as soon as we started moving on from COVID 19, it doubled down on us. You can blame the spike on this or that, but the reality is this: it’s here and we need to deal with it. The ugly part of this, outside from the virus itself, is everyone putting in their two cents on the situation. News flash: It’s not helping!

Masks have been mandated in most cities around the country. In Milwaukee, business owners can be fined for employees not wearing masks in the workplace. But how do you enforce mask use?

Adam Brown said he is just doing his due diligence, but feels he will be getting some resistance from his staff. Adam currently does not have policy if someone disobeys. He expects everyone to wear them, but he is aware that some of his employees are hyper-sensitive to it. Ed Samera recommend having employees sign a liability waiver, stating they won’t hold the company liable if they don’t wear a mask.

The issue of testing also came up. When and how do you test people if someone is positive in your workplace? Dan Voissem said when one of his employees has tested positive, he was immediately worried about the three other people who were in close contact. While he did his due diligence by turning to the Health Department for guidance and having his employees tested, results and information came slowly. It took 9 days for the positive test to come back, 14 days for the remaining tests and response from the Health Department.

Mike Walz said he has one person that has tested positive twice in three months, but is asymptomatic. Due to this, he feels testing is not always accurate. He said a second person is very ill with symptoms of Covid 19, but their test came back negative.

A Few Business Highlights

Joe Fazio, of Commerce State Bank, said there was no new word on PPP forgiveness. Everyone is just waiting for more guidance. The Main Street Lending program is out right now and not many banks are participating. Clients that were struggling before are still struggling.

On the other hand, banks are doing fairly well. Because mortgage rates are really low, mortgage volumes are double compared to last year. So, there seems to be some hope, at least in the mortgage world. If you are in the market for a refinance, now may be a good time. So not all negative this week.

I hope everyone has a chance to disconnect this weekend and in the coming weeks. I’m heading up North to play some golf. As they say, it’s only going to get worse before it gets better before it gets worse, so buckle up. We will weather this storm, and the next one, and the next one.

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #17 07.09.2020

I received a lot of “Out of Office” replies when I sent out the invite for this roundtable, so I wasn’t expecting a lot of people. And while it was a smaller group, we still hit on a lot of important issues.

If I had to pick a word of the day, it would be “exhausted” – as in “I am exhausted.” It hit me this week that I am tired. But, while the usual remedy for this is to get away, that feels almost impossible. You just can’t escape the negative.

That negativity definitely influenced our weekly polls. While we had one “10” in our first poll (On a scale of 1-10, with 10 being Great – what is your personal “number” this week?), we also had a “6” and a “7.”

“The uncertainty, it’s exhausting and it’s just so complicated,” said Mark Goldstein of the Goldstein Law Group, who said he was the “6.”

Amy Elleson-Bastar, our VP of Sales Engagement, listed herself as a “10” having just come off of a weeklong vacation. She said the key to happiness is ignoring the negative.

“I tend to tune it out,” she said. “I can’t solve it, so I just concentrate on the positive things.”

Schools Out/In?

I am very curious to see what happens with higher education this fall. In my humble opinion, the value proposition of college has been teetering for a while now.

College has gotten very expensive, and it is going to be much harder for them to justify that expense if the college experience is tampered with.

Some schools are already cancelling athletic programs – a major source of funding, recruitment and school spirit. Add the fact that students and parents are already uncertain about returning in the fall, and you’ve got a recipe for disaster.

College was as much about transitioning to an adult as how much you learn in the classroom, but I just don’t know what happens if you take that away.

It’s tough to be young right now

I spent the Fourth of July weekend surrounded by a bunch of young smart people, and let me tell you it’s not easy for them right now. Many, who have recently graduate from college, are having a difficult time finding work.

As many of you know, my son, Lukasz, recently took a job in California. He is one of the lucky ones. Others in his age group are getting job offers rescinded because of all of this uncertainty.

That also means there’s a lot of talent out there, which is something to keep in mind.

In search of a pleasant diversion

We talk a lot about the negative reports in the media, but not as much time discussing the positive. So, I posed the question: What are we reading (watching, listening to, etc.) that doesn’t put us in a horrible place. Here’s the answers from the group:

• • • • The Wall Street Journal, How I Built This NPR Podcast (Me)
      • Lord of the Rings, Superman Adventures, the last Rambo, anything but the nightly news (Bob Gross)
      • Rex Chapman on Twitter. And Hamilton on Disney+ (Mark Goldstein)
      • Podcasts – Coaching for Leaders, Jocko Podcast, and Positive U (Jeff Van Straten of Payroll Data Services)
      • Alone on Netflix (Eric LaRose, Vx Group)

Optimism is Lower

A quarter of us said we were less optimistic in our second weekly poll (How do we feel about the state of life in the U.S. and the world this week vs. last week?) and 50% said we were about the same as last week. Why?

Probably don’t need to go into the state of the world and the lack of good and reliable information out there, but that appears to be the cause of this.

“This is one of the most difficult problems we’ve ever faced … and the media just isn’t helping at all,” said Mark Kannenberg of RBP Chemical Technology.

Eric LaRose, our resident media expert, said there is a good reason for that. Major media companies, like Gannett (owner of the USA Today and the Milwaukee Journal Sentinel, which recently was acquired by Gatehouse Media), made the conscious decision years ago to migrate from traditional journalism to “content generation.” This change in philosophy is a way to attract the more visitors and increase ad impressions, but also places inane content like cat videos, thinly veiled opinion pieces and top 10 lists on the same level as investigative journalism and information important to the health of the public.

“This strategy, while beneficial to media companies, is not helping us,” he said. “This allows media companies, which are more interested in being first to report something (even if it isn’t factual) and bolster ad impressions to increase shareholder wealth, to control a very important conversation that, quite frankly, they are no longer qualified to lead.”

Sports

Before this whole thing started, I spent a lot of time watching sports, watching SportsCenter and going to games. I liked sports, and after they cancelled everything, I didn’t know what I was going to do. Now, I find myself not really missing them. I don’t know how to feel about that.

I guess that’s a good place to end things. Have a great week.

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #16 07.02.2020

Welcome to July! As we launch into the Fourth of July weekend, it has never been easier to see how things have change – especially here in Cedarburg. Usually, I would be preparing to stake out my position on the sidewalk for the annual parade, and many of you would be stopping by to chat, have a beer or both (usually both). The parade would roll into a cookout, then music, then fireworks.

There is no parade this year, no music, and, while there will be fireworks, Cedarburg is treating them like a 1990s rave – not telling anyone where they will light them off until the last minute.

But while things are different, we are adapting – instead of the parade many of us are heading out of town, instead of a picnic in the park with the entire city we’re having bar-b-cues with family, instead of running around some of us are planning to take a good long nap. We are adapting, but still missing the way things were.

How We’re Doing

That might have something to do with our weekly numbers. When it comes to our first weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) 20% of us are at a 10, 80% of us are at an 8 or above and no one is below a 7! That is in large part because things are looking up.

“Business is so strong we can’t make enough product,” said Mike Walz of Miller Baking.

Mike Hokanson of CL&D Graphics said things are going well businesswise, but Coronavirus has reared its ugly head at the company’s South Carolina division. As unnerving as that was, he praised his team for handling it well and not panicking.

“If that would have happened a month or two ago, it would have been a much different reaction,” Hokanson said.

Our collective optimism is a different story: 44% are more optimistic than last week, but 33% is about the same as last week and 22% are less optimistic. Contributing to the “less optimistic” is the usual uncertainty – more people testing positive, more politics, more negativity … you know, the usual.

But it’s not doom and gloom. Adam Brown, of owner of Goodland Wing Company and SignEffectz, said sales team morale is up. And, on a personal note, I mentioned that my mood swings have tempered in the last week or so.

Kurt Person from Bosch, who has been disconnecting up north near the U.P., and said he has witnesses a flurry of activity – people shopping, riding motorcycles, walking around, and so on, and that has him feeling a lot better.

“If you didn’t know better, you’d think things were right back to normal,” Person said.

Reconnecting Teams

So, one thing I’ve noticed lately is that teams aren’t as connected as they used to be, the obvious byproduct of stay-at-home orders and the increase in working remotely. So, I asked the group: What are we doing to improve our connections at work?

Kurt Brandt of LinqThingz has found success using Slack (which we also use at Vx). For those of you who don’t know, Slack is a messaging tool that allows teams to message by person, team or topic. Kurt said it not only allows his team to be in constant communication, Slack has also eliminated the need for meetings and note-taking because it creates a searchable record of all conversations.

Adam Brown said he’s helping bolster the strength of his team by listening to them.

“I’ve become more sensitive to everyone else’s opinion, even if I don’t agree with it,” Brown.

Emotional well being is definitely part of team (re)building, especially now. This week I had my first “masks required” in-person meeting – which was strange. It’s hard to judge mood or conversational context when you only see a person’s eyes.

Mike Hokanson said his company pushed for social distancing over mandatory masks for that very reason. In the end, it’s about making people feel safe at work.

Kurt Person said Bosch is taking safely to a whole new level – removing doors and other touch points. And, if a door is required for air control or something else, an automated door is installed.

Keeping in Touch

While we’re going to keep these roundtable discussions going, I have launched a way for us to connect during the week. Text “Leader” to 18887038611 to join our Vx Group Leaders Roundtable messaging group. I promise I won’t text you too much.

That’s all for this week. Have a happy and safe Fourth of July.

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #15 06.25.2020

It’s been 100 days since we were first introduced to this new normal, or at least the thought of it. 100 days ago, it was St. Patrick’s Day. Instead of hanging with our friends Guinness and Jameson, we were hanging at home, not quite sure what was in store. 100 days from now will be October 3. Fingers crossed we have football to watch and the new normal won’t seem so new after all.

This brings me to the theme of this meeting, “Challenges are opportunities in disguise.” I asked everyone what their number one challenge is for quarter 3 and quarter 4. The responses were varied.

One big question was how to find and engage prospective clients, especially since travel is limited and sales is still (and in my opinion will always be) dependent on some face-to-face interaction. Zoom calls and phone calls aren’t cutting it all the time. As Joe Fazio of Commerce State Bank stated, “We are not driving around knocking on doors”.

Sean Fulton of Hydro-Thermal echoed this challenge. His biggest struggle is educating customers on his product – steam technology. While it is an old technology, it’s still something not a lot of people are familiar with. It posed the question: How do we get creative in discovering opportunities if we aren’t traveling? Sean mentioned leveraging channel partners who already know the technology. He also mentioned that he’s positioning the company as the subject matter experts in the field. This can help alleviate some of the need to travel, but not all of it.

Mark Kannenberg of RBP Chemical Technology also voiced his concern with selling today. He mentioned how sales teams are having to rely on the dreaded cold calling. No one likes a cold call. I hate them. I don’t mind a call from someone who I have a pre-existing relationship with, but I tend to not answer those that I don’t know. Mark stated that cold calling isn’t feasible for companies like his anymore.

Adam Brown of Sign Effectz summed it up well, saying you must have a “confident vulnerability” when selling. You must show that you are confident your products and services but are not egocentric. You need to be relationship sellers.

The Latest on PPP

On today’s call, we got the latest scoop on PPP from our friend Joe Fazio, “PPP repayments continue to be a moving target.” Joe mentioned the bigger thing now is the Federal Reserve’s Main Street Lending Program. This is targeted toward middle market companies (more than $10m in revenue with a good set of employees, typically owned by group of investors). This is a “new money situation,” Joe said. This program should be used if you are trying to do an acquisition, not for refinancing debt. The Federal Reserve will buy 95% of the note helping banks to mitigate their risk.

Joe also took some time to share information about a group he’s found very beneficial, Private Directors Association. He said this group has been a helpful resource for information. The group hosts regular Zoom meetings and has chapters throughout the country.

Weekly Pulse

As usual, we took our weekly pulse. This week everyone seemed a bit more optimistic. We had 8% very optimistic about this week compared to last and 33% more optimistic. Bob Gross of Gross Automation, said that he feels conflicted because he’s more optimistic about his company, but feels less optimistic about greater ecosystem. We all agreed that disconnecting from the news and the world around us can help boost our optimism levels.

Adam Brown stated that the news and the world around him can leave him feeling emotionally drained. He made a metaphor to running. He said he’s at the point of the race where his legs are going numb. He stated the only way to change this was to just disconnect.

For our “number” this week, we had 36% state that they were a 7 and another 36% state they were an 8. Joe Fazio told us a funny story about why he came to his number. He said he has a client who sells flags and flagpoles. His client told him that his flagpole sales are up. On the surface, this doesn’t seem like a huge deal, but according to his customer, flagpole sales have been a consistent indicator of economic activity. When flagpole sales are up, economic activity is up. Perhaps this customer should market these statistics as “Flagpole Indicators.” Either way, it sounds promising.

The skepticism creeps in when talking about the next six to 12 months, which takes us back to our original point as to what the next 100 days will bring. I’m looking forward to baseball and sports again.

The consensus on the call is we all can benefit from a few days (or weeks) going “off the grid.” If you do head off the grid, enjoy your time. I try to stay off it as much as possible. Shoot me a text if you want to enjoy a motorcycle ride or want to grab a beer or coffee sometime.

Until next week,

EZ

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #14 06.18.2020

While it took some time for us to get around to this quote, this was the theme of this week’s leadership roundtable. There’s a lot of “discomfort” in the world right now. Unrest, uncertainty and change tend to bring that.

Like many of you, I have been thinking a lot about uncomfortable things, and the problem with thinking about uncomfortable things is that it makes us feel just so darn uncomfortable.

And, if our biggest business opportunities can be birthed from difficult situations, then how can we manage being uncomfortable – at least long enough to uncover potential growth prospects?

The answer for this may not lie in what we do when we are confronting discomfort, but what we do when we’re not.

“Something that has been important is bike riding,” said Cheryl Smithem of Charleston PR & Design. “I’ve upped my commitment to how many miles I’m going to ride this year.”

Cheryl might be on to something. Exercise does improve mental health by reducing anxiety, depression, and negative mood and by improving self-esteem and cognitive function, according to a Primary Care Companion to The Journal of Clinical Psychiatry article.

Personally, exercise (usually in the form of golf) allows me to take my mind off of things and unplug. But, at the same time, it’s not like the chatter stops. Our emotional status feels like its connected to the status updates we’re reading on social media – gently tugging us left and right.

Adam Brown, the owner of Goodland Wing Company and SignEffectz, said he found a way to create some silence.

“I took about a week and checked out. Social Media. News Updates. Everything,” he said. “It’s just noise. You can’t have a conversation. You can’t sit down. You can’t have your Zen moment. It’s just chaos.”

Vx Group team members Haley Moore and David Tisdale also shared some insight on dealing with the uncertain. David said he’s become aware of “the triggering of everything.”

“I’ve been noting every time I get trigger by something, and try not get too stressed about it,” he said. “I’ve been learning a lot.”

Haley was reminded of an Under Armor ad slogan: The only way is through.

“To me that says the only way to get through the uncomfortable part is to go through it,” she said.

And, for those of us who have the ability to work through it, there will be growth – either personal or business growth – on the other side.

Important Announcement

Jaymee Harvey Willms, Executive Director Big Brothers Big Sisters of Washington County, needs our help … and it will be fun. BBBS is hosting “Golf Fore Kids’ Sake” on June 26 a Washington County Golf Course in Hartford. This is a great fundraiser for an amazing organization that has been doing a lot for the community – especially during the pandemic. Because of Covid, they are seeing fewer corporate donations, and we need to step up and help. Plus, golf. More information about the event is here.

Optimism and Other Odds and Ends

So, how are we doing? Our weekly polls show we’re doing pretty good. When it comes to our weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) 40% of us are at a 9, 20% are at an 8 and the rest are at a 7. Life gets a passing grade!

Our optimism poll shows most of us are holding steady (50% same) or are more optimistic (40%), only 10% are less optimistic.

What’s contributing to this?

“Business is picking up. It’s getting better,” said Adam Brown. “We’re going to have a strong year, as long as there’s not another bomb dropped on us.”

Bob Gross, of Gross Automation, said he started having in-person meetings again. “It’s almost feeling normal,” Gross said.

Gross also said that he learned his company will receive an Economic Injury Disaster Loan – something he wasn’t expecting at this point. “It’s a nice cashflow thing to have in our back pocket,” he said.

But, not everything is good. “We were told for the first time that companies are buying US only,” said Ralf Pursche of Bloksma Corp., the Germany-based producer of material flow and workpiece carrier solutions with a Cedarburg office. Ralf’s products are made in Germany, and because they ship from Germany the require lead time for orders. To avoid supply chain challenges, some companies want products that are produced closer to home. “I lost a few orders I thought we would get.”

Getting a Little Political

One stray observation on the current climate is really sticking with me.

“It’s getting harder to communicate,” Adam Brown said. “We can’t have a conversation without having politics come into it.”

He’s right. It’s getting increasingly difficult to not only sift through the noise, it’s harder talking to people in general. Have you seen social media comments lately? Things can escalate quickly.

Cheryl Smithem mentioned that she attended a virtual workshop on de-escalating conflict – specifically on social media and other textual platforms. Here’s one takeway: “When we get into those conversations where we feel triggered, it’s important for us to before we respond,” she said. How? Zoom out. Visualize yourself zooming out of the situation and find commonalities. Sometimes it’s as far back as “we both breathe oxygen.” That’s were you start. “It’s important to find that resonance.”

Thanks, Cheryl!

Well, I’m ready to wrap things up here. Hopefully I’ll be seeing some of you at “Golf Fore Kids’ Sake” on June 26. If not, let’s hit the links soon!

Have a great week.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #13 06.11.2020

Emotionally, I’m all over the map this week, and I don’t really know why. It’s almost like I no longer experience middle ground – it’s optimism, followed by terror, followed by optimism, followed by some expletive. And, after talking to the group, it almost felt like I was bringing everyone else down.

I was quite happy to hear that everyone else is not in the same emotional boat. In fact, our weekly poll (On a scale from 1-10, with 10 being Great – what is your personal “number” this week?) showed that my 7 (which is still pretty good) was in the minority. Most of us (75%) were an 8 or better. We even had a 10! A 10! I don’t think we’ve ever had a 10!

“It’s summertime and I’m heading to the lake soon,” said Kurt Person of Bosch, the person responsible for the high mark. “I’m not going to let this pandemic affect that.”

Adam Brown, the owner of Goodland Wing Company and SignEffectz, is also feeling pretty good.

“Sales are picking up and I’m feeling optimistic,” he said.

However, because of some unpleasant internal discussions about personnel changes, Bob Gross, of Gross Automation, isn’t feeling at optimistic. “This has been very emotional,” he said.

Mike Walz of Miller Baking is seeing a definite rebound. “Our business is coming back really strong,” he said.

Joe Fazio of Commerce State Bank said that he’s seeing a lot of businesses getting help right now but wonders what will happen when that assistance runs out.

“As a banker, my concern isn’t today,” Fazio said. “My concern is the end of this year, beginning of next year.”

Highs and Lows of PPP

Contributing to my mood this week is a recent news report that PPP, the Payroll Protection Program that was supposed to be our lifeline, might be treated as taxable income. Not that I expected there wouldn’t be strings attached to the funds, but it seems like there are a lot of important questions about PPP that still aren’t being answered.

Joe Fazio said he hasn’t heard anything official about this, something he’s not surprised about. In fact, it seems like PPP rules are changing week-to-week, sometimes day-to-day. With that, he offered a personal recommendation – once you qualify for forgiveness get it done as fast as you can before the rules change … again.

Speaking of banking, Bob Gross asked Fazio about the current banking environment – specifically how bankers he’s been dealing are busy chasing PPP issues for clients and aren’t able to evaluate things like real estate loans moving forward.

Fazio said that might be an issue with the bank, not the industry. Using the last recession as an example, many banks were skittish about lending for real estate no matter what the client’s credentials were. That had more to do with the banks, and it might be what some people are experiencing now.

“Make sure you’re not having to deal with your bank’s problems,” Fazio said. “That’s not your issue, that’s your bank’s issue.”

Optimism

Again, our second weekly poll revealed a little about my mood: This week just has me feeling less optimistic. Thankfully, the majority of us are not in the same funk, as 46% of us are more optimistic about the state of the world and 15% are very optimistic. 31% of us are about the same as last week.

So why, amidst news reports of protests and the pandemic, are we more optimistic? Adam Brown it has everything to do with choice.

“We need to accept the situations in front of us as what they are. I have little control over coronavirus or protest. Worry, for me, is a complete waste of energy, he said. “Everybody has a choice to be happy or angry or afraid. Choose to be happy.”

Jeff Van Straten, President at Payroll Data Services and CEO at The Clearwing Group, agreed with Brown, saying negative energy has a way of working itself through the entire organization.

“Problems are opportunities in disguise,” he said.

Mike Walz said this whole situation reminds him of the Great Lakes. A few years ago, news outlets were reporting that the Great Lakes were at their lowest levels ever and that those low levels would be the “new normal.” Now, the lakes are close to the highest levels ever recorded.

“Everything is a big deal when it is happening,” Walz said. “We need to look at where we are going and stay focused”

Feeling Better

I have to say, I was feeling more optimistic after our meeting, so thank you. Funny, I started hosting this meeting so we could support each other, but I didn’t think I would be the one who needed a boost.

Hopefully, we can all get together for a ride, or some golf, or just a beer, soon.

Take care and have a great week.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

P.S. Also, besides the camaraderie, I got a chuckle out of Joe Fazio’s book idea: “Business is Hard, Business is Easy.” Couldn’t have said it better.

Meeting #12 06.05.2020

This has definitely been a week of ups and downs. The good news is that employment numbers are looking better – the U.S. added 2.5 million jobs in May and unemployment is down from 14.7% to 13.3%. Still not where we need to be, but it is a start.

Unfortunately, during a time when we should be celebrating the reopening of a lot of businesses (albeit with Social Distancing requirements), the headlines now reflect the very real issue of racial injustice. For the last 10 days, people have taken to the streets to protest.

This emotional rollercoaster has definitely influenced our poll numbers this week. This week’s poll, (On a scale of 1-10, with 10 being Great – what is your personal “number” this week?), 78% of us were at a 7 or above, down from 92% last week. While the ratio of 8 or higher remained unchanged from last week (at 66%), 6 went from 8% last week to 22% this week.

Steve Hipp, President and CEO of Leader Paper Products, said he had a particularly bad week because he had to announce a rolling furlough schedule at his company.

Jeff Van Straten, President at Payroll Data Services and CEO at The Clearwing Group, said his personal number went up this week after he was able to get Clearwing involved in the Work-Share program – which is worth about $25k a week to the company.

What is Work-Share?

According to the Wisconsin Department of Workforce Development, Work-Share was developed to help companies avoids layoffs – allowing workers to remain employed & employers to retain trained staff during times of reduced business activity.

The Work-Share Program (also called Short-Term Compensation or STC), is designed to help both employers and employees. Instead of laying off workers, a qualified employer can plan to reduce work hours for at least two employees.

Workers whose hours are reduced under an approved Work‐Share plan receive unemployment benefits that are pro‐rated for the partial work reduction.

Jeff Van Straten said there are a number of steps businesses need to take to qualify, but it is definitely worth it. “If and when things bounce back, we won’t be starting at square one,” he said.

Brian Christian of B2B CFO® pointed out that some businesses have been able to combine Work-Share with the Paycheck Protection Program, which gives businesses the ability to really extent their cash.

Speaking of PPP, Brian also mentioned that PPP has been extended from 8 weeks to 24 weeks. In addition, payroll forgiveness was originally 75%, meaning three-quarters needed to be used for payroll expenses. That number has been lowered to 60%, giving businesses the ability to spend a greater portion on rent, lease payments, utilities, etc. Whatever loan is left must be paid back over five years at an interest rate of one percent instead of the original one year at one percent.

For more information on Work-Share, visit our documents page or the Wisconsin Department of Workforce Development website. https://dwd.wisconsin.gov/uitax/workshare.htm

Optimism – Holding Steady

So, how optimistic are we about the world right now? For the most part, we’re holding steady with 58% saying they are about the same. Again, that’s because we appear to be going from one thing to another.

“Once you get over one strife, another comes along,” observed Adam Brown, the owner of Goodland Wing Company and SignEffectz. He added that while businesses and restaurants are opening and sales are up, the general mood is “hold your course, there’s no relaxing, no auto tilling on this sailboat.”

Personally, I think it feels like a boxer – we’re taking the punches until the world gets tired, and hopefully we’re still standing.
Still confident, but still in the ring.

Remote or No?

After a lengthy discussion on politics and current events, we talked for a while on working remotely. At this point, we are all experts at this topic. As I mentioned last week, most of my team returned to the office last week both in Wisconsin and South Carolina, but many businesses are still working remotely.

Kurt Person from Bosch said while all salaried positions are remaining work-from-home, people can take online safety training to return to the office. For those that do, it is a different would. Work areas have been separated to comply with social distancing recommendations, and people are responsible for keeping shared workstations clean and sterilized.

Jeff Van Straten said that while there are some people who want to return to work for the social aspect of the office space, many are not. They are now developing a long-term strategy on what to do with office spaces.

Brian Christian said that a lot of businesses are going to be reviewing whether or not they need to maintain office space. “I think you’re going to see a lot of vacancy rates going up,” he said.

While more people are working from home, Jeff Van Straten asked if anyone had come up with new ways to measure employee performance. At this time, the answer is no.

Kurt Person also talked a little about traveling. At Bosch, limited domestic travel will be returning soon, but international travel is currently prohibited until after the first of the year.

Wrapping it up

I had my first two face-to-face meetings this week, and it was great. I look forward to these meetings every week, but I’m going to be much happier once we can get together in person as a group.

Thanks again everyone for taking the time this morning. Have a great week.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #11 05.29.2020

Memorial Day in Wisconsin was a time of transition. From my vantage point at a campground in Door County I saw people starting to venture back out into the “real world.” With each passing day, more and more people began to dip their toes in life.

And while other people shared similar Memorial Day observations – lots of people out on fishing boats, ATVs, bike, kayaks, and more – at our weekly Business Leader Summit, this testing of the waters is a metaphor for the entire world. People are starting small – going shopping, eating at a restaurant, going to a bar – and seeing how it goes. Then, they do a little more.

This is how our economy will be rebuilt – one small step at a time. I’m encouraged by this … and so are a lot of you. In our weekly poll (On a scale of 1-10, with 10 being Great – what is your personal “number” this week?) 92% of us are at a 7 or above – and 66% are at an 8 or above.

Returning to Work

At the Vx Group, we reopened our offices this week. Almost everyone returned (ironically, the one person who kept saying he missed working in the office the most was the one who continued to work from home – but he assures us he will return next week, he just had to supervise contractors). For us, it feels like we’re getting back to normal, but for some of you the return to work was fraught with challenges.

Adam Brown, the owner of Goodland Wing Company and SignEffectz, said he started to bring designers back to the office to address work quality issues. Brown said, because of distractions at home (not having the proper work environment, interruptions, kids in home school, etc.), he found his team was completing tasks at a slower rate and the finished quality was not on par with pre-Covid output.

He also said a lack of person-to-person contact also probably played a role.

“We’ve focused for years on inspiring and influencing workers,” Brown said. “My influence has been cut down to like 5%.”

It brings up an interesting question: How do we lead with the added impersonal disconnection of technology?

The last three months have been spent on Zoom, and that kind of worked. But that shift was a big change for people, and a lot of people dislike change.

“There is security in routine,” Brown said, and new technology requires the team to comprehend and embrace it.

Cultivating relationships and influencing behavior remotely is difficult. You can’t pop into someone’s office and say hi, given them a congrats or a pep talk, or gauge people’s body language. And, as leaders, it is hard to gauge worker efficiency. Traditional measurement was making sure people worked their 40 hours. Now …

“As business leaders we have to look at other metrics besides butt-in-chair time,” said Jill Zoromski, of JaZ Humanagement.

Mike Walz of Miller Baking said when he arrived at the company, the corporate culture was very time-oriented – focusing on time working not what was being done. When they changed that philosophy to refine the focus on task completion efficiency improved.

Jeff Van Straten of Payroll Data Services said his employees appear to be working fewer hours at home, but work efficiency and quality are as good, or better than pre-Covid levels. “Busy does not equal effectiveness,” he said.

That said, Jill Zoromski mentioned while it is possible for people to be more efficient working from home, there is a possibility they are able to do the same amount of work in less time because they are wasting time at the office – socializing, etc.

Feelings, Nothing More Than Feelings

How do we feel about the state of life in the U.S. and the world this week vs. last week? Half of us feel about the same as last week. 28% of us are very or more optimistic while 21% of us are less optimistic.

Mike Walz fell in the latter group this week, saying there’s “so many things we can’t control, but we have to deal with.”

Jeff Prom of Sharon Cutwell said he’s more optimistic after seeing more people are out. “That’s the stuff that needs to start happening for our economy to open back up,” Prom said.

Couldn’t agree more!

Mental Health

Going to get serious for a second. As leaders we have a responsibility to our employees – being able to recognize mental health issues and lend a helping hand, or a kind ear, when needed.

This has been a difficult time and even though we are starting to get back to work, this is not over. We have workers who represent the entire spectrum of worry levels – from not worried at all to full on panic. And all these emotions have relevance.

Social media plays a larger role emotionally and on mental health for younger employees, as Haley Moore pointed out. She recommended you promote a social media detox and remind them that they are a reflection of your company.

At the same time, we do need to get back to work. So, I’m not saying we should coddle everyone, but I’m not saying we should ignore them either. We need to keep them on task – inspire them, lead them and, if needed, be there for them.

To lighten this up a bit, we also have to understand that for almost three months our teams have been stuck at home – trying to teach their kids new math, not showering and having more conversations with their pets than other people. They are going to have to relearn a lot of things, so just know the first couple of weeks might be a little rough.

But here’s to a new month and summer!

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #10 05.21.2020

We have begun to rebuild. Businesses are reopening, production lines are restarting, and orders are beginning to trickle in. But this sudden business resurrection is creating new issues – especially when it comes to staffing.

Now more than ever, our operations need to run flawlessly. We need to give our customers the quality products and services they deserve. But from staffing shortages, to unoptimized workforces, there are lots of issues out there.

“We’re having difficulty finding people,” said Mike Hokanson of CL&D Graphics. His company is getting orders, and customers are used to a quick turnaround. But staffing levels are low, and the pool of applicants is harder to navigate. The company is receiving a lot of applications, but not necessarily from the right people.

Sean Bolling of Bentley World-Packaging said his company is rebuilding staff as well, but it is a hirer’s market so now is a great time to be “very finnicky about who you are getting.”

Jill Zoromski, of JaZ Humanagement, said another issue facing manufacturers is training new employees. Most training was developed prior to social distancing, creating issues now when adding new staff. However, while hiring is presenting some issues, this may be a good time to trim ineffective workers.

Jill said she has heard of companies reducing pay by 20 percent across the board. While this probably made sense in the short term, it is better to optimize the workforce by getting rid of low performers.

“I don’t think it’s a good idea to punish everyone,” she said.

Still, while we’re starting to get back to work, it’s a slow relaunch and sacrifices do need to be made.

Kurt Person from Bosch said 4,500 employees will go to a four-day week starting at the end of May, and that work reduction is projected to last through the end of the year. This is in reaction to the auto industry which will experience a 30% “volume reduction for the year.”

Some Businesses Bounce Back Better

There’s opportunity in every challenge, and right now is no different. As Kurt talked about issues they are facing at Bosch, he mentioned an interesting thing – powersports equipment sales are up. Seems that when it comes to social distancing, off-road bikes, ATVs and other off-road equipment is becoming more popular.

In fact, because sales have been so brisk, many dealers are low on inventory and manufacturers are desperately trying to increase inventory. This has actually boosted some of Bosch’s output.

Other industries are faring better as well – bicycles, backyard swing sets, decks … basically anything that improves social distancing life.

This Week’s Numbers

We once again asked everyone what their number is for the week. Overwhelmingly we were at an 8 or above.

Mike Walz of Miller Baking said he’s at about a 7. Orders are increasing, which is good, but like we discussed earlier staffing as been an issue. The company made the decision to test everyone for Coronavirus, but because test results are slow many people don’t feel comfortable returning to work until they know everyone has tested negative.

In our second poll, “How do you feel about the state of life in the US and the world this week vs. last?” 94% of us feel the same or are more/very optimistic. Why? More people are working and we’ve reached the acceptance phase of Covid-19 – this is here, and we have to deal with it the best we can.

Corona Complex

I don’t know about you, but I have been more connected to work lately than I ever have been. I feel a deep obligation to my clients and employees to be there whenever they need me. I’m calling it the Corona Complex.

We all want each other to succeed, and we are all in this together, so we are taking less time for ourselves. After a couple of months of this, I’ve realized this is unsustainable. Now that the weather is clearing up, I’m going to take a little time for myself and I suggest everyone do the same.

We’ve all been working hard – putting out fires, keeping things moving in the right direction, maintaining relationships, keeping the lights on. We’re coming out of this stage, and we all deserve some time in the hot sun, with a cold drink, and a wandering, unrestrained mind.

Have a great Memorial Day weekend, everyone!

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #9 05.14.2020

It might not seem like it, but there’s a lot of opportunity out there. It has been easy for us to get inwardly focused on our own business, doing the same thing over and over. And because of that, it’s hard to see that growth opportunities are virtually limitless.

This whole Coronavirus thing has me thinking about this quote:

For the last two months or so, our concentration has been focused on … well … the sh*tshow. Easy to understand why – all our businesses have been affected by it. We should really be focused on market share – which was one of the themes of today’s business leadership meeting.

Large companies focus on market share more than anything. For example, Molson Coors has a 24% share of the North American Beer Market – a roughly $121 billion market, and they can pull up that data at any given time.

As midsized business owners, a lot of us don’t look at market share. Honestly, it’s hard to look at a document that shows you have less than one percent of total market – even though you know your business is crushing it.

But, what I’ve found is that we’ve been looking at the wrong number – the other 99% of the market is opportunity.

For example, let’s say your business has a 1% share of $100 million market. Now let’s say the market shrinks by 50% (in this scenario the value of your sales don’t go down). Now you have, two percent of the market share.

Sure, you’re thinking, “Big deal, still making the same amount of money,” but that’s the wrong number – the correct one is the $49 million in opportunity that’s still out there – even if the market decreased by half!

Doing Things Differently

Now, with that revelation, I’ll be the first to admit that it will be a challenge to make an impact – especially since you won’t be the only company out there fighting for a larger slice of the pie.

The next question you have to ask is: “How do we become a newer, fresher, more innovative company?”

Jeff Prom, of Sharon Cutwell, said it becomes a creative exercise.

“You can’t go about getting business the ways you did before, those channels have been dried up,” he said. “If you open the same doors you opened before, you’re only going to find an empty space.”

So, it comes down to looking at how your company is going after clients and making necessary changes based on market share acquisition goals.

For example, the Vx Group recently hired John Benzinger as our VP of Global Market Development to work with the Aerospace industry. He started on Tuesday during what is probably the biggest hit the Aerospace industry has ever taken. But, the aerospace market is about $685.6 billion, so even if it takes a few financial blows there is still plenty of opportunity.

In the long run, moves like this could pay off. Or, as Jeff said, “It starts with the optimism that it can be done.”

Our Confidence Level

What a strange day. In the span of a couple of hours we went from being under a Stay at Home order to the Wisconsin Supreme Court saying the order was unconstitutional and, with no plan or guidance in place, the Wisconsin Tavern League instructed bars to ‘open up while they can.’

Ah, the sh*tshow. With that in mind we asked: How confident are you in yourself? Can you lead your business through this crisis?

Most, 83%, are highly confident while 17 percent were somewhat confident or unsure. While those numbers look good, they are a mixed message.

Adam Brown, of owner of Goodland Wing Company and SignEffectz, said while he is highly confident he will come out of this ok, he’s not as confident when it comes to other people in his life.

“We have a life raft that seats 20, and there are 50 people in the water,” he said.

Dave Stern of Harrigan Solutions said that while he’s optimistic, he can’t predict the future.

“Our challenge isn’t how we’re getting through this, it’s what is this going to look like in 6 months,” he said.

Jon Rauser of The Rauser Agency said that while he remains optimistic, there are just too many unknowns when it comes to the future.

“I’m preparing for the worst, and the worst isn’t so pretty.”

This dumpster fire is brought to you by …

Not to jump back on my soapbox, but the fact that we don’t have access to any reliable information is the driving force behind our fluctuating confidence and optimism levels.

As Jeff Prom pointed out, early on it was about defeating a virus but reports have evolved into political football. It’s us vs. them, he said/she said, politics as usual. We have a governor who is saying we’re going to descend into chaos and Senate and Legislative leaders who never bothered to come up with an alternative plan in case the Supreme Court sided with them.

To me this is just a total failure in leadership.

But, we can learn something from this. We can become better planners. We can dive into market share data, create an action plan and move forward. Beyond the nightly reports, the tweet-worthy quotes, the manipulative headlines and the information dumpster fires there is opportunity. We can seize it, capitalize on it and grow.

I’m Eric Zoromski and I Approve This Message!

Thanks to everyone who joined us today. I passed a sign recently that said, “this too shall pass.” Doesn’t that sound nice? In the meantime, let me know if you want to hit the open road on our hogs, play some golf, or sip some bourbon by the fire pit.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #8 05.07.2020

Momentum: I don’t know about you, but the Vx Group had some great momentum leading into this Covid-19 crisis. We had an amazing 2019, and the first quarter of 2020 was off to a great start. Now, that momentum is broken. Getting that momentum back has occupied most of my brain activity as of late. And, I know it’s not just me.

Everything has been flipped upside down in this “New Normal” – a term I’m loathing more and more each time I write it, and we are all trying start moving in the right direction again. So, I threw this question to the group during today’s leadership meeting: How can we get that momentum back?

Here’s what you had to say:

• • • • Sean Bolling of Bentley World-Packaging: Motivating the Team – We can use this time to plan and be ready to be stronger upon recovery. It is the gift of time to get done what we couldn’t before. “We’ll crawl out of this a lot stronger than we crawled into it.”
      • Mike Walz of Miller Baking: Keeping the team focused. Giving them opportunities to be more self-sufficient, make decisions and plan together for the re-opening. “We can’t control when restaurants re-open, but (the team) can have plans together for when business picks up again.”
      • Joe Fazio of Commerce State Bank: Private Directors Association is an organization to help people network for directors. Provide training to become a director for organization. Fazio is working on starting a Chapter in Milwaukee. For more information visit https://www.privatedirectorsassociation.org/
      • Ed West of Badger Magnetics: This caused us to find solutions to nagging things, find ways to operate more efficiently and continue to expand. “We’re lucky, we’ve had some great opportunities come our way because of the Covid, so we’re feeling pretty positive.”

Personally, I’m excited for today because we’re unveiling our six-year plan to our team. I’m excited for the Vx Group’s future.

The Weekly Pulse

This was kind of a strange week when it came to our normal polls.

Everything seemed be moving in the right direction with our “What is your personal number of the week?” poll. All of us said we were at a seven or above – that’s pretty good. More than half of us rated ourselves at an eight or better.

But, when it came to optimism, 25% of us said we were Less Optimistic than last week. What’s the cause of the downward trajectory? Confusion – much of which is being caused by conflicting and often erroneous news reports.

Bob Gross, of Gross Automation, said he’s less optimistic because of confusion created by the Payroll Protection Program (they keep changing the rules) and uncertainty caused by political infighting over stay at home orders.

To the point of the PPP, Jill Zoromski of JaZ Humanagement said she has heard of several companies that have returned or are thinking about returning the money because of the confusing terms.

Chris Evenson of Nephele Consulting Services summed it up with one word: unsettling. When unemployment climbs, it’s unsettling, Every day that people can’t go back to work is unsettling. How the government is going to pay for all of this is … unsettling. “The first poll I put a nine based on our business, but the second one is less optimistic.”

But Mike Walz of Miller Baking said the confusing news reports might be helping. People are realizing that all the information out there is a muddled mess. This is not an event, it’s a new thing we must live with. They are realizing they are going to have to live with this and staying home is not the answer.

Jeff Prom of Sharon-Cutwell echoed those statements, saying his optimism comes from seeing some states reopen for business which will help the world create benchmarks and move forward. “Doing nothing is not a solution.”

Joe Fazio of Commerce State Bank recommended this piece from Cushman & Wakefield on how to reopen your workplace.

Kids Need Your Help

Before the meeting started, Jaymee Harvey Willms, Executive Director Big Brothers Big Sisters of Washington County, made an impassioned plea for volunteers. There are currently 47 kids on the waiting list in Washington County alone who are looking a big brother, big sister, big family (yes, the entire family can be involved). “If you are looking for an incredible, impactful opportunity for you and your family, this is it.” They are still making matches during quarantine, they’re just doing it digitally. For more information, contact Jaymee at jaymeehw@bbbswashco.org or visit http://www.bbbswashco.org/.

Meeting #7 04.30.2020

Teamwork. Let’s face it, we wouldn’t be leading anything without a team. We have all assembled some great teams – true professionals who share our vision and want the company to succeed. That has me thinking about this quote:

Of course, this is under normal circumstances. We all know we are not currently operating under normal circumstances. Do we believe the power of team can make us thrive at any time, even in times of crisis?

I threw that to the group this week, and we pretty much agreed that the strength of our teams is what will guide us through this crisis.

“When I’ve had a team that’s on board in the past, they have been unbeatable,” said Mike Walz of Miller Baking.

So, what can we do to motivate our teams? The general consensus is to take the time to connect with them.

“People need more of a purpose right now,” said Mike Hokanson, President at CL&D Graphics. He added that rather than long discussions about the numbers, production backlog or customer demands, he has been spending, “a lot of time talking about purpose and mission.”

Jeff Prom of Sharon-Cutwell talked about his two-pronged approach he calls “Survive and Thrive.”

Survive: Taking an honest look at where we’re at. Not just use optimism, but deal with the current situation and plan accordingly.

Thrive: With the team focused, we brainstorm projects to set up for a positive situation upon recovery. Focus on the positive so we’re not sitting in doom and gloom.

Mark Goldstein of the Goldstein Law Group added that he tries to make sure all conversations he has with his team are meaningful. He asks a lot of open ended questions. He lets them talk and listens.

Some other things include:

• • • • Mike Walz says he makes it a point to touch base with employees. For the most part that has been on the phone, but he said he’s starting to go back to the office next week and will be doing walk-throughs.
      • Mark Goldstein said they went from beginning- and end-of-day huddles to having virtual coffee together in the morning and Friday afternoon cocktails, during which they talk about non-work things. We at the Vx Group do the same (Friday cocktails over Zoom). If you’d like to join us, let me know.
      • Joe Fazio of Commerce State Bank says it’s important to just say thanks – he’s made videos of himself and drive thru bankers, vowed to donate money to charities selected by his team and is writing handwritten notes to his workers.
      • Ed West ended the discussion with an amazing suggestion: Smile. Remember how confidence is contagious?

The Weekly Pulse

In our survey of the group, which once again consisted of about 30 business leaders, we asked “What is your personal number of the week?” Most of us are above an eight (14% said 10, 27% rated themselves at a nine, 36% said eight.) Nobody ranked themselves at a four or below.

When asked how optimistic we are, 90% of us were the same as last week or better. And, while no one felt it was all doom and gloom, there were a few people who said they were less optimistic.

Mike Walz attributed that to the amount of politics being played. Mark Goldstein said that while optimism might be lower, we at least have one bright spot – Georgia. The state recently reopened and we’ll soon have some real data about returning to normal.

You Down with PPP?

A quick read of the room showed that we are all set when it comes to applying for and receiving assistance from the Payroll Protection Program. However, there are still a lot of questions about the program.

Last week, several high-profile companies were embarrassed (and publicly shamed) by reports they accepted PPP money even though they did not meet the requirement.

Mark Goldstein talked a little about residual confusion about forgiveness of the loan. Here are some key points:

• • • • Any company that received over $2 million will now be subject to an audit
      • At the time of application, all applicants agreed to the term “current economic situation deems this loan necessary”
      • FAQs 31 and 37 provided by the Treasury included additional caveats that state you must have a lack of access to other liquidity

For the most part, Mark said small- to medium-size businesses should be okay and some details about repayment are still being worked out. That said, if you have received PPP money you can return it by May 7 – no questions asked.

Bill Kadrich, Senior Vice President at Marine Bank, has provided a two documents on PPP FAQs and Disbursement Requirements. We have that on our resources page.

Should We Talk About the Weather?

After a couple of days of rainy weather, we’re about to experience a weekend of excellent spring temps here in Wisconsin. I want to remind you that golf courses are open, with some restrictions, and riding motorcycles 6 feet apart is an appropriate social distancing activity.

Thanks to everyone who joined us this week. Let me know if you want to ride.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #6 04.23.2020

Confidence. The legendary Green Bay Packers Coach Vince Lombardi once said, “Confidence is contagious. So is a lack of confidence.”

I’ve been thinking this quote a lot about that lately, and I discussed why at our sixth leadership meeting. Recently, some people have asked me if everything is ok. Apparently, I was giving off the vibe that I was troubled, or I had a lot on my mind.

Generally, I’m a confident person, and as many of you have noticed and pointed out I’m kind of hard to read. My poker face is strong. But, with all of the scrambling around, I gave off the impression that my conviction was lacking.

That’s what made me think about Lombardi’s quote. We need to not only have confidence in ourselves as business leaders, we must always show it. If our confidence in our ability to lead – to make the next right next choice – is high, then there is no reason to doubt if we can successfully navigate this from a business or personal perspective. That will provide the boost others need, as well. “Confidence is contagious” – contagious being the operative word, and ironically appropriate.

Speaking of which, based on three polls, we are all starting to feel a little better. On a scale of 1-10, we’re averaging around an 8 – not bad. When asked how confident we were in our leadership abilities, 80% said we were highly confident. And, when it comes to our optimism about the state of life this week vs. last week, 25% of us are very optimistic, 50% more optimistic, 20% the same, 5% less optimistic.

THE THREE Ps

Jeff Van Straten of Payroll Data Services shared an email from Strategic Coach Dan Sullivan with me outlining the Three Ps, a very effective way to take things day by day. The Three Ps are:

• • • 1. Be present – By focusing only on the 24 hours in front of you, you stay grounded in the here and now (rather than worry)
      2. Be positive – When other people feel better after interacting with you, you will too
      3. Be productive – Measure your progress at the end of the day

Thanks, Jeff!

MMAC

The Metropolitan Milwaukee Association of Commerce has been hosting a great series of webinars – including a daily webinar on Milwaukee Health and Economy and weekly one focusing on Business Strategies during the Pandemic. I’ve found these to be very informative and generally accurate. I would highly recommend checking them out.

RELIEF PACKAGE UPDATES

Payroll Protection Program is still top of mind for all of us – with many of us having already received funding. We talked again about the importance of tracking those funds to ensure these loans are forgiven. I’m personally using two bank accounts, transferring money in to the payroll account on a schedule.

Bill Kadrich, Senior Vice President at Marine Bank, also mentioned that it appears the PPP will get a second round of funding and reminded people to get their applications in if they haven’t already.

QUESTIONS FROM THE AUDIENCE

We ended the meeting by asking a few questions we’ve been hearing a lot lately.

• • • • How do we compete with unemployment? At issue here is that workers on unemployment can make the same as, or more, than they would if they were working. Jill Zoromski, of JaZ Humanagement, explained that while unemployment isn’t voluntary – people can’t just choose to be unemployed, some employees, like ones with children at home, can decide to stay home where they would receive FMLA (2/3 of pay from the company) or give their employer the option to be furloughed. That, of course, is just one example. According to her calculations, the breakeven point for employees is around $23 an hour. Jill said many companies are using “Combat Pay” incentives to keep people coming in to work – raises, future bonuses. Also, there is a rather harsh message for people who choose to remain on unemployment: Unemployment runs out and when it does there is no guarantee the job will be here when you’re ready to return.
      • How many companies are making long term or permanent decisions on Work from Home? A lot of our employees have been forced to work from home, but what is up in the air is if this is going to a permanent fixture. Dan Voissem of Badger Plug said his company has made a sizable investment in technology – laptops, scanners, etc. – to enable its workforce to continue working from home. He said it has been going smoothly but doesn’t know if people will want to stay at home once they return to the office.
      • What Services are You Identifying that You Need when You Return or Moving Forward? Adam Brown, of owner of Goodland Wing Company and SignEffectz, said customers will dictate many changes. At Goodland, he is already planning to add permanent sanitation stations for customers.

FINAL THOUGHT

I can’t take credit for this, but I feel like Jill Zoromski, of JaZ Humanagement, said it best right before the meeting started.

“I am making my mental list of things I never want to hear again – “the new normal” is one of them.”

I couldn’t agree with you more.

Thanks to everyone who joined us this week. Stay confident and we’ll talk again soon!

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #5 04.16.2020

Grit, Grind and Gratitude: That was the theme of this week’s Business Leader Summit. Joe de Sena, founder of Spartan Race and one of the few people who has run the Iditarod without dogs, called this the “Three Gs of Success.” I’ve been thinking about this all week, and these truly are the three things we need right now:

• • • • Grit: How do we succeed? We do the hard work, make the hard decisions, keep pushing forward.
      • Grind: Yes, it’s hard. But we fall in love with the process. Like running a marathon, you become infatuated with the exhaustion, the sore muscles, the mixed emotions you get at mile 22 when you’re getting closer by you still have over four miles to go.
      • Gratitude: We appreciate what we have – our business, our customers, our employees.

During the meeting I asked the group to rate how they feel things are going. For the most part, there is a feeling of optimism amongst us – combined with a generous dose of uncertainty.

Mark Goldstein of Goldstein Law talked a little about how there was a shift in tone over the last week – people aren’t posting cute memes about working from home in their pajamas, they are more serious. He shared a post from TEND about the emotional toll COVID-19 his having on people. Your brain on COVID-19 breaks down to:

• • • • 75% focused on worry, fear, uncertainty, confusion, anxiety, boredom, fatigue, etc.
      • 10-15% is coping with the situation
      • The remainder is available energy for motivation and focus

And while that doesn’t leave a lot of room for the 3Gs, Goldstein also expressed deep gratitude for having a deployable skill during these times – blessed with a distraction and a purpose.

Adam Brown, the owner of Goodland Wing Company and SignEffectz, leaned more towards uncertainty, saying that decisions are made on data, and there’s not a lot of reliable data coming in – making it hard to make decisions about what steps to take in the future. He also feels uncertainty from the customer base. “Whether it’s real or not, it’s there. It’s going to change the way people buy from us,” he said.

Make Walz, of Miller Baking, said that while the last few weeks have been about “how do we get through this?” now he and his team are focusing on: “What does it look like after this?

“That’s the new foundation for business,” Walz said. “It puts me on the optimistic side … it’s another opportunity to figure out.”

Jill Zoromski, of JaZ Humanagement, said that while there is a lot of uncertainty, the goal is to just take it one task at a time.

“You don’t have to know the future, you just have to do the next right thing,” she said. “One foot in front of the other.”

Side note – as profound as that statement is, it’s from Frozen 2.

WHAT DOES THE FUTURE HOLD?

So, when this pandemic comes to an end, what will this new world look like? It’s hard to say. Joe Fazio, of Commerce State Bank, asked the group what they thought people would do once the stay at home order was lifted. Would they hop in the car and go to Wisconsin Dells? Go see a movie? Eat at a restaurant? Go buy a car? Go to a sporting event? Visit a National Park?

The truth is: we don’t know. This is where I agree with Adam Brown – the key to figuring this out is in the data – but the data is corrupted. We are guided by what we see and read on Facebook, the news, Twitter. All of these articles, stories and posts are created by someone with the sole purpose of eliciting a reaction – click the post, comment, buy something, share it.

This is where it gets frustrating. In a room of business leaders who, on a scale of one to 10 ranked their optimism for the future, the average was around 7 (6.9667 to be exact – thanks for the 7.5 Chris!). Considering what we are going through, a seven is pretty damn good. But are we seeing that optimism on social media? No. It’s doom and gloom, emotionally manipulative and incredibly frustrating to someone like me who just wants some real information!

Stepping off my soapbox now.

WHAT WE CAN DO NOW

I shared a bit about a tool from EntreLeadership that can be used to keep a pulse on how your employees are doing. This is a free tool (for now) where your employees can take a poll at the end of each week to provide insight on how they are doing. I’ve found it to be quite useful.

We also talked about keeping our employees safe now and in the future. Ed Samera of the Vx Group and Jill Zoromski talked about the importance of creating policy, signage and anointing a safety czar to make sure people are maintaining a safe distance and keeping up with safety measures – not a hall monitor, someone who cares.

Adam Brown talked about how he has provided his team with face shields and other safety equipment. He said that while it seems like it might be overkill, it makes the staff feel better and shows that the company cares.

We also discussed Small Business Association Paycheck Protection Program – which many of us have applied for. We’ve talked about PPP over the last few weeks, and we are now realizing that it creates some challenges. First, PPP encourages companies to keep people’s pay at around the same rate – but is that the right decision for the long term? Then, if you bring people back, what happens after eight weeks, do they go back on unemployment? If you reduce their wages, will they come back? With unemployment at around $970 a week, they might choose to not come in.

Of course, none of us have a definitive answer to these questions, but discussions like this are important.

Joe Fazio reminded everyone that there are rules – especially if you want this loan to be forgiven. Keep detailed records, show it is going toward payroll, document everything. Bill Kadrich, Senior Vice President at Marine Bank, shared a tentative forgiveness guide, which we’ve posted on our resources page.

GOLF ANYONE?

The cold weather has me feeling better that we can’t play golf. Fact is, I do have to say that I am looking forward to hitting the links with all of you when this is all over.

Keep Grinding it out.

Eric Zoromski
zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #4 04.09.2020

While I stated the primary theme of this, our fourth leadership meeting would once again be “Perseverance,” by the end of the meeting I decided it should really be “Embracing Change.” Because while we touched on important topics like applying for SBA loans, strategic hiring and our general sickness over certain new common phrases, much of the meeting was spent discussing the “new normal” office environment – specifically working remotely.

THE NEW “NEW NORMAL” – WORKING FROM HOME

More people are working from home, and it’s a new challenge for a lot of us – both from a managerial and operational standpoint. And, let’s face it, WFH comes with its challenges and rewards.

The biggest reward is that we can still get things done. Our sales staff can still sell, engineers can still troubleshoot issues and despite being confined to our homes we still have reach in the “real world.”

“I like Zoom meetings better than regular meetings,” said Tom Gelin, President of Air Flow Inc., adding that he could see this becoming a regular part of his company’s operations – and it could allow him to work from “Italy for a month.”

Jeff Prom of Sharon-Cutwell talked a little bit about his company’s experience – the good and the bad. One of the positive outcomes could be a new service offering – Virtual Engineering Support. This service will alleviate the need for travel when it comes to troubleshooting issues.

On the other hand, while technology has been great for maintaining existing relationships, Prom said he feels it would be harder to create new relationships virtually. Or, has he puts it, “there’s a finite limit to the relationship you can build on Zoom.”

“We’re excited about the use of technology, where it makes sense,” he said. “It’s great for information sharing, it’s not great for building relationships.”

For Brian Gallagher of Zebrafi, working from home has been a part of his regular life for years and said that after the last big economic downturn customers started to value relationships less. In fact, he doesn’t meet 80 percent of his clients until launch.

“It’s more fun to meet face to face, but It’s more productive to meet in a virtual environment,” Gallagher said.

So, will WFH become a normal part of the new, new normal? If it does, both Gallagher and Jill Zoromski, of JaZ Humanagement, say your company should have an established WFH policy. You can find a sample WFH policy in the Resources Section.

OPERATION DIVERSIFICATION/STRATEGIC HIRING/OTHER GOOD NEWS

COVID-19 had knocked us all down a little bit, but we’re starting to experience some small victories. Jeff Van Straten of Payroll Data Services said he was encouraged to see reports that the curve was flattening. Jill Zoromski said she is aware of several companies that are using this time to strategically hire some key positions. Sean Bolling of Bentley World-Packaging said they are cautiously looking at strategic hires.

Adam Brown, the owner of Goodland Wing Company and SignEffectz, said that while he has had a lot of orders put on hold, they have expanded production of ADA code compliant signage for the construction industry and just purchased another machine. He added that all indications look like the third and fourth quarters of this year are going to be “gangbusters.”

There is also an emerging sales trend – diversification of supply chain and nearshoring more business. While price drove original trends to offshore manufacturing business, COVID-19 is serving as a big reminder that there are convenience benefits to keep some of the supply chain local.

SBA, PPP, EIDL

We started the meeting with a special shout out to Bill Kadrich, Senior Vice President at Marine Bank. After talking at the last meeting about resources available to businesses, he then jumped into action and started helping businesses navigate the application process. Thanks, Bill!

Joe Fazio of Commerce State Bank joined our call this week and provided an update on Small Business Association Paycheck Protection Program applications – basically a lot of businesses have been submitting applications for them. His bank alone has approved over 100 loans worth over $40 million – and he’s heard similar stories from other banks in the area.

Fazio also recommended that businesses look at the Economic Injury Disaster Loan. Once a small business is approved for this, they can get a $10k advance that doesn’t need to be repaid.

More information is available in our Resources Section.

WE’RE HERE FOR YOU

I’m keeping a running list of things that I don’t want to hear again after this is all done, and it starts with the phrase: “We’re here for you.”

Yes, it’s nice, but spammers are using it as a marketing message – quickly draining it of any meaning.

Thanks to everyone who joined us this week. We’ll talk again soon!

ez

zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #3 04.02.2020

Perseverance: That was the overarching theme of our third leadership meeting since the COVID-19 crisis came knocking on our doors. With more than 40 people in attendance, we came together as the business owner community to discuss how we will survive and thrive in the months to come.

Help for Now

As it was with our second meeting, the lion’s share of this gathering was devoted to assistance available to small businesses – specifically from the $2 trillion CARE Act.

Bill Kadrich, Senior Vice President at Marine Bank – an SBA preferred lender, and Mark Goldstein of the Goldstein Law Group – an employment law practice, took turns discussing what the relief package means for businesses. Highlights included:

• • • • The speed at which the aid was approved by the U.S. Government is impressive. Most programs like this take months or years to implement, this took a matter of weeks. That said, the rollout has been messy.
      • It is all very confusing: Many people who filled out the application for SBA assistance last week are being asked to fill out another form this week.
      • An Economic Disaster grant up to $10K to provide relief to businesses that are currently experiencing a temporary loss of revenue, is available through the Small Business Administration’s Economic Injury Disaster Loan program. (More info here – https://www.sba.gov/page/disaster-loan-applications)
      • Businesses can start applying for the Paycheck Protection Program on April 3 – providing small businesses with access to $349 billion in forgivable loans to pay their employees during the COVID-19 crisis. Lot’s of confusion and conflicting information about this. Additional information is available from Treasury.gov and here – https://home.treasury.gov/system/files/136/PPP–Fact-Sheet.pdf
      • There are lots of rules and exclusions, many of which are still being refined. Approved SBA lenders should know more before April 3.
      • Much of this aid does not help businesses like restaurants that are really being hit.
      • Application deadline is June 30. Speculation is that if the $349 billion is used up more will be authorized – but at this time that is speculation.

Staying Healthy

Jill Zoromski of JaZ Humanagement discussed several programs that impact businesses and employees directly affected by COVID-19.

Generally, the Act provides that covered employers must provide to all employees:[2]

• • • • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
      • Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.

A covered employer must provide to employees that it has employed for at least 30 days:[3]

• • • • Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.

It’s our understanding that businesses will receive 100% tax credit for dollars paid out under this new act. More information is available here – https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave

Brad Gador of ER Wagner also shared his company’s current protocol on what to do if an employee tests positive for COVID-19. I’m working on getting a copy we can share with the group.

• • • • All non-essential to being at plant are working from home
      • Temp checking at entrance
      • For employees who were becoming nervous about coming in – shared letters from customers to show essential nature of their business
      • Action plan on positive test

New Business Development

As we wrapped we had a brief discussion on when is the right time to pursue new business. At the Vx Group, we believe this is a great time to open new doors and build new relationships. With people working from home in greater numbers, they are keen on talking. We are also finding that many people are looking at their supply chain right now – either searching for new suppliers or commiting to diversifying their supplier base. The time isn’t right for everybody, but for many people it is.

We’ll talk more about that at our next meeting on April 9 at 8 a.m. In the meantime, check out our recent article on How to Accelerate Growth in a Time of Disruption. https://www.thevxgroup.com/2020/03/29/accelerate-growth-in-time-of-disruption/

Keep fighting the good fight everyone!

ez

zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #2 03.26.2020

We hosted our second leadership meeting today, with about 30 people in attendance, and we discussed a number of topics from our mental state during the COVID-19 crisis to applying for relief from the Small Business Association, keeping the Coronavirus out of our businesses and maintaining sales in this climate.

Mentally, we all gave the impression that things are better this week. Jeff Van Straten of Payroll Data Services summed it up perfectly by saying, “There’s still uncertainty, but we’re settling in.”

And we are definitely coping in our own ways. Adam Brown, of owner of Goodland Wing Company and SignEffectz, talked about his new hobby – 3D printing safety masks using plans from the Billings Clinic. I talked about a family cocktail hour I hosted via Zoom. But it really feels like Kurt Person from Bosch is make the best of this situation – unplugging from work and snowmobiling, skiing and restoring a classic car with his youngest son.

Business (Not) As Usual

When it comes to business, we are all doing the best we can. Jeff Prom of Sharon Cutwell said his company is one of the lucky ones because they serve the aerospace industry – an essential business. He also said he has been busier than usual, a sentiment shared by a number of participants. But some noted busy isn’t always good.

Jeff Van Straten confirmed that in the wake of reducing his labor force he was busier but none of the additional work is revenue producing.

Stimulus for Small Businesses

Jeff Van Straten added that relief could be on the way in the form of Disaster Loans from the Small Business Association – a loan of up to $2m for small businesses. https://disasterloan.sba.gov/ela/

While he said the application wasn’t too complicated, the SBA’s website is really slow due to a lot of small businesses applying for emergency relief. He recommended accessing the website during off hours – middle of the night – and to have all paperwork ready ahead of time to avoid being kicked out of the website. The three-step process is outlined here – https://disasterloan.sba.gov/ela/Documents/Three_Step_Process_SBA_Disaster_Loans.pdf

Jeff Van Straten and Jeff Koser, Founder & CEO at Zebrafi, Inc., (how many Jeffs do we have on this thing?) both said there is no cost to apply, no obligation to take the loan if approved and you would have up to 30 years to pay back the 3.75% interest loan.

And, with a lot of people talking about the stimulus package, Ed Samera of the Vx Group shared a link to what is actually in the 1,000 page document – https://www.axios.com/whats-in-coronavirus-stimulus-bill-320eedcb-ce06-4dea-b736-8fa59a4dd5b0.html.

Keeping COVID-19 At Bay

We also discussed what we are doing to keep the Coronavirus out of our facilities. Brad Gador of ER Wagner said his company is checking the temperatures of all workers as they enter the manufacturing facilities. Mike Walz of Miller Baking said that while they continue to operate the made the decision to not hire temporary employees for the time being and have a plan in place to start testing employee temperatures next week. The CDC has created a guide on what businesses can do to prevent the spread – https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html.

Adam Brown asked if anyone had info on resources to help his company deal with employee anxiety and Advocate Aurora Behavior Health was mentioned as a possible resource – https://www.aurorahealthcare.org/services/behavioral-health-addiction.

Key Account Management

We briefly talked about today’s final topic – Key Account Management and Sales. Both I and Brad Gador talked about the importance of communication and compassion right now – even just checking in to see how people are doing. Jeff Koser shared a blog post put together by his company on the subject and it is definitely worth the read. https://zebrafi.com/during-the-covid-19-pandemic-is-it-still-okay-to-ask-for-the-order/

We plan on keeping these discussions going for as long as we need them. Take care, stay safe and we’ll talk soon.

ez

zoro@thevxgroup.com
262.389.0745 (phone & txt)

Meeting #1 03.19.2020

Our first leadership meeting was held today, with 23 people in attendance. From product and component manufacturers to restaurants to entertainment and service leaders – we had a wide spectrum of business represented.

Obviously, the restaurant business is being hammered. Adam Brown, owner of Goodland Wing Company and SignEffectz shared that restaurant sales are down 80%, and he has cut his staff from 50 to 10 in the last week. All three restaurants are carry-out only. His SignEffectz team is meeting to discuss sales projections as the forcast is “out the window”!

A number of leaders spoke a bit about health and personal wellness of both the leaders and their teams. We were all encouraged to take advantage of any type of wellness program that we may have in place as part of our health insurance programs or other initiatives we may have invested in. While Workforce Health’s Occupational Health clinic traffic is down 80%, their telephone coaching volume has increased dramatically, so there are resources available. It may be a good time to re-communicate those programs to your employees.

We spent some time talking about the wellness of the leaders on the call. We all turn our attention to our employees first – but if we’re not physically and mentally healty it can become impossible to lead. TAKE CARE OF YOURSELF!

There is clearly a tone of fear and potential slowdown in some industries. There are also opportunities, so spend a little time thinking about the potential to pivot slightly to a high-demand niche. We will see a longer decision cycle, some orders canceled or put on “pause” but so far no one is reporting dramatic changes.

Mike Walz of Pretzilla reported that they are working closely with the FDA/FEMA on food supply, and as of now operations continue largely business as usual.

From an Ops perspective we discussed a number of actions:

• • • • Staggard breaks and lunches to avoid large groups
      • Safety first, but keep running while we’re safe
      • 1-2x per shift workstation cleaning. One business has moved a person to full-time cleaning of common areas

Jeff Prom from Sharon-Cutwell shared a thought that resonated with me that he shared with his team. “We have a responsibility to keep the economic engine going”. If the supply chain for major suppliers breaks its impact is exponential.

Regarding communication, we all agreed that employees want to hear from leadership. Take the time. Sit down and talk. It doesn’t have to be perfect and polished. Do it. Frequently. We also discussed providing information to your employees families regarding what you’re doing to keep their loved ones safe. Great idea.

We decided to keep this meeting going weekly. You’ll be receiving an invitation via email shortly. If you need anything don’t hesitiate to contact me.

Chins up everyone!

ez

zoro@thevxgroup.com
262.389.0745 (phone & txt)