It’s lonely at the top for small- to mid-sized business CEOs

(ARA) – It is no secret the economy took its toll on the nation’s businesses in 2009. Some businesses shut their doors, others made major sacrifices to stay afloat, while some lucky ones thrived through the turmoil. So what’s the secret to sustaining healthy revenue and profits?

Executive peer issue processing.

According to ChiefExecutive.net, “In the past few years, the failure rate of CEOs has increased significantly even as average tenure has dropped sharply . . . The resulting turnover has placed CEOs in difficult environments without much support.”

This was true for Vistage member Gus Cicala, president and CEO of Project Assistants, Inc., a project management consulting company based in Delaware. After losing clients, such as Freddie Mac, at the end of 2007, other clients began cutting their consulting budgets and Project Assistants saw their revenues drop more than 50 percent in just a year and a half. Facing a cruel reality, Cicala knew he needed to make some cuts, and struggled to make the hard, emotional decisions on his own. He turned to his executive coaching group for help.

Last March, revenues continued to fall, so Cicala’s executive coaching group helped him make one last cut. “It was that last Wednesday in March when things had gotten really rough and I knew I might have to do something drastic,” says Cicala. “When I walked into my Vistage meeting and informed my group I might have to shut down, one member said ‘not on my watch.’”

Sixteen heads are better than one

* Making cuts without cutting too deep. Cicala’s executive coaching group helped him reduce head count and cut salaries, and coached him on how to do this without damaging the morale and work ethic of those he kept. Project Assistants went from 30 to 15 employees and everyone, including Cicala, took a 25 to 35 percent pay cut. With strategized cutbacks, he didn’t have to shut his doors.

* Create variable costs. His executive coaching group helped him see and create variable costs and now Project Assistants is making more profit than when they were double the size. Losing five percent in the first quarter, Cicala made some adjustments with the advice from his Vistage colleagues. While revenue continued to drop throughout 2009, they were able to make a two to four percent net margin for Q2 and Q3 and a seven percent margin for Q4, ending the year with increased profit.

“We survived because my Vistage colleagues insisted I keep trying,” says Cicala. “It was painful advice, but I did it. We are a stronger company because of the employees who stayed with us, and I am a stronger CEO because my executive coaching group taught me how to run a more profitable company.”

Executive coaching groups not only provide the support CEOs need make emotional decisions, but they also help companies remain proactive and ahead of competition.

CEO Dave Dastur, of Chicago’s oldest architectural firm, Jensen & Halstead Ltd., says his company never felt the recession like most of his industry did. According to the American Institute of Architects, January of 2009 was the worst month ever recorded in the 15 plus years they’ve been tracking the industry revenue, jobs, and leads … and they have yet to see an upturn.

“One hundred percent of our work is repeat and referral,” says Dastur. “So, for me, it was about hiring the A players and focusing more on keeping the current clients happier by being engaged.”

While Dastur’s executive coaching group is extremely helpful, Dastur says the monthly speakers were a big help early on.

Expert speakers

* Brian Beaulieu, on macro economics. In the fall of 2007, Dastur thought seriously about a macroeconomics speaker who predicted the downturn. Following the speech, Dastur decided to be proactive in protecting his 141-year-old company, in case the predictions were true by making sure he had cash in hand.

* Jeff Vogelsang, “Lessons Learned on the Turn-Around Trail.” Jeff talks about the things to do to help a failing company. After Jeff’s speech, Dastur took a hard look at his gains and losses and cut a lot of non-essential items that wouldn’t affect the business. This not only helped Dastur cut expenses but helped build cash in case business slowed down enough to need it.

* Kraig Kramers on “CEO Tools.” Kraig has turned around a number of companies and several of his management techniques, as well as ways of tracking numbers and “what gets done,” are helpful in tracking the trends of Dastur’s business and making sure they are moving in the right direction.

Dastur’s Vistage group helped him realize that it was OK to let some clients go. He started off with 20 percent of clients producing 80 percent of the revenue. Now, they have 45 percent of clients producing 80 percent of their revenue.Through December of 2009, 23 percent of architectural jobs have been lost through the recession, according to the American Institute of Architects. While most of the industry had to lay off large numbers of employees, Jensen & Halstead was able to maintain stability.

Executive coaching groups make the top less lonely, and provide sounding boards for companies without a board of directors.

Vistage International is one example of a handful of CEO executive coaching organizations. The organization is represented in 15 countries with nearly 14,500 members. Collectively, members run companies with an estimated $300 billion in revenues and employ two million people. In addition to their executive coaching groups, CEO members have access to expert resources speakers and receive monthly one-to-one coaching from a mentor called a Vistage Chair. The sharing of information in a group is completely confidential, allowing for the open exchange of issues, ideas and solutions. For more information go to www.vistage.com.

Courtesy of ARAcontent

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GARNER — Local and state officials have asked ConAgra Foods for more time to put together a financial incentives proposal that they hope will persuade the company to keep its damaged Slim Jim plant open in Garner.

Officials plan to present ConAgra with an incentives plan by Friday, said Ken Atkins, director of Wake County Economic Development. The company had originally wanted to see a proposal by Jan. 15, he said.

“We’re working on trying to get the details nailed down,” Atkins said

He said an incentives package, which could include state and local grants and tax breaks, could climb into the millions of dollars.

The Garner Town Council held a closed-door meeting Thursday to talk about wooing ConAgra. About half of the company’s plant off Jones Sausage Road was destroyed in an explosion June 9 that killed four and injured dozens 

Mayor Ronnie Williams said a preliminary proposal discussed Thursday includes $450,000 from the One North Carolina Fund through the state Department of Commerce. Garner could match that amount in the form of tax breaks, Williams said.

Atkins declined to comment about the fund and what the state might be willing to offer

Read More:News & Observer

A Research Triangle Park company is in negotiations to invest $60 million in a new data center in a Garner industrial park.

Garner Mayor Ronnie Williams said the economic development project was discussed by the Town Council in a closed session Thursday evening. Williams said the town has not been told the identity of the company.

Boston-based Fidelity Investments, which operates a data center in RTP, confirmed Friday that it is considering expanding its operations

“Fidelity is planning for incremental growth beyond the capacity we have at our existing data center facility,” Fidelity spokesman Vincent Loporchio wrote in e-mail. “Beyond that, however, we do not have anything to announce at this point.”

Williams said Wake County economic development officials have code named the project “F,” and have told Garner officials that the company has an existing presence in RTP.

Ken Atkins, executive director of Wake County Economic Development, declined to comment.

Williams said the company is looking at the Greenfield South industrial park near where U.S. 70 and Interstate 40 intersect. He said the Town Council has been told the project would create between 20 to 35 jobs and would be a $60 million investment.

Williams said the Town Council has not voted on an incentives package for the company, but it has instructed Garner’s economic development director, Tony Beasley, to continue negotiating

Read More: http://www.newsobserver.com/business/local_state/story/287188.html

Degrees that will make you indispensable in the workplace

(ARA) – From digitizing and analyzing America’s health records to developing the next big video game or hardware program, careers in the science, technology, engineering and mathematics (STEM) fields continue to gain prominence in the work force. In fact, the U.S. Department of Labor predicts a growing demand for technological advances will result in a job growth of 22 percent for STEM occupations between 2004 and 2014.

As employment opportunities within these new and emerging industries continue to expand, educational institutions are taking a look at refining curriculums to provide career-focused higher education, and better prepare students for careers in specific fields.

To do this, universities are working directly with high-caliber employers to ensure their future employee needs will be met. DeVry University, for example, works directly with companies including IBM and Cisco to create these student programs. DeVry University graduates from the last five years have worked at 96 of the Fortune 100 companies.

“Students are looking to obtain the education and knowledge needed to succeed in the high-growth industries that continue to thrive,” says Donna Loraine, vice president, academic affairs for DeVry Inc., and dean, DeVry University’s Keller Graduate School of Management. “Our academic structure is one that allows for swift implementation of new programs and curriculum once we notice a specific need, allowing us to better prepare students for these in-demand 21st century careers.”

According to the Center for Education Policy Analysis, technology is pervasive in almost every aspect of daily life, and as the workplace changes, STEM knowledge, skills and the ways in which problems are approached and solved in these subjects are important for a variety of workers.

DeVry worked closely with Cisco using the Cisco Networking Academy program to deliver curriculums that teach students how to design, build, troubleshoot and secure computer networks.

“Working with DeVry University to equip students with technical knowledge and hands-on experiences will help meet growing demand for skilled workers in a variety of industries ranging from broadband and wireless to healthcare and green technologies,” says Amy Christen, vice president of corporate affairs at Cisco and general manager of the Cisco Networking Academy. “Individuals that are trained in the latest technology careers today will be well-prepared for a variety of exciting career opportunities tomorrow.”

In fact, the Bureau of Labor Statistics is anticipating an approximate 45 percent growth in the computer software engineer and application occupations. Anticipating this demand, these student/employer partnerships aim to prepare soon-to-be graduates for these technology careers, while helping to fill a growing need for professionals in the emerging industries around the world.

Courtesy of ARAcontent

Small-business owners see silver lining in the recession

(ARA) – The current gloomy economic conditions contain some good news for the small-business sector.

According to a recent survey conducted by Citibank, some small-business owners and managers are finding a silver lining in the current recession, seeing more high-quality candidates available for hire, rising employee retention rates and gains in market share.

As a business owner, how can you take advantage of these small-business opportunities and make them work for your business? Small-business expert Dan Goodgame recently moderated a robust roundtable of small-business owners, who offer these three tips:

1. Take advantage of the talent pool
As a result of the recession, there is larger pool of highly qualified and highly skilled employees available for hire. Many who may not have considered working for a small firm are now more open to the idea. Take time to interview a variety of job candidates on a regular basis, even if you don’t have a current opening at the company. This technique can help you fill an opening as soon as it is created with the best possible talent, and avoid some of the costs – typically 50 to 200 percent of the employee’s annual salary – normally associated with staff turnover.

2. Retain your best employees
Holding on to your best employees is of course crucial to building your business, and it’s going to get harder as the economy starts growing again. First, create a two-way communication system that allows employees, on a regular basis, to give and receive feedback on their performance and the performance of their peers and managers. Second, create an employee recognition and rewards program that extends beyond compensation and bonus. Be creative with the rewards program; provide employees with paid time off to volunteer at their organization of choice. Provide recognition with “surprise” thank you gift certificates to a local cafe or restaurant. The “thank you” does not have to be a big dollar amount – just the recognition can go a long way.

3. Seek feedback from customers as you seek referrals
With marketing budgets pinched, many business owners are taking a fresh look at ways to gain new sales by winning referrals from existing customers. One of the most effective methods is to seek feedback from existing customers on the quality of your products and services, and on your pricing. Tell customers directly that you want to do whatever is necessary so that they will be so pleased that they will recommend your company to their friends and colleagues. Listen to their suggestions on how you can improve. And when you’ve followed through on their advice, check back with them. If you know of a good prospect, ask your existing customers if they know her, and can introduce you to her and recommend you. One advantage of this approach is that it helps you get the feedback that you need to improve your service, even as it brings in new business.

The small-business sector typically leads the U.S. economy out of recession, and that pattern seems to be holding up in the current downturn. Leveraging tips such as these will be key to surviving the toughest business conditions in more than half a century.

Courtesy of ARAcontent

The state will give the Research Triangle Park company as much as $4.8 million to create the new jobs. As part of the incentives grant, Talecris will have to retain its 2,298 existing jobs in the Triangle, including 1,500 at the Clayton plant already.

Talecris’ new jobs in Clayton will pay average annual salaries of $51,066, state officials said. That’s above the Johnston County average of $33,800.

The company wants to increase production to meeting rising demand for its drugs made from blood plasma. Talecris was considering three sites in South Carolina for a new production facility, a factor that helped it qualify for incentives from North Carolina.

Critics argue that handing out incentives to multimillion-dollar corporations is a waste of taxpayer money. Talecris is the Triangle’s largest biotechnology company and its stock began trading on Wall Street on Oct.

Read More:http://blogs.newsobserver.com/business/talecris-biotherapeutics-to-add-259-jobs-in-clayton

America’s Retirees Working to Protect Health Care Benefits They Earned

(ARA) – Retirees and baby boomers throughout the nation are wondering with great trepidation, what would happen to them if their health care coverage were simply taken away?

Many fear that the current economic crisis in America will speed up that process. It has already occurred with retirees of some of America’s largest corporations, and municipalities are threatening to follow suit. According to Paul Miller, executive director of the national retiree advocacy group, ProtectSeniors.Org, the situation is as dire as the bailout was for the auto industry, Wall Street and America’s major banks.

“There are currently an estimated 18.5 million American retirees and baby boomers in the United States with health benefits being significantly threatened,” Miller says. “If cancelled by the corporations they once worked for, most would be dumped into the federal and state healthcare systems. In effect, this means their former employers would be getting an additional back-door federal bailout at the expense of the taxpayer.”

The health care coverage Miller is referring to is earned retiree benefits that tens of millions of Americans earned and paid for during their working years. He says that for whatever reason, many corporations never actually set that money aside and are using the current financial turmoil to threaten the cancellation and further reduction of these benefits.

Much of his organization’s hope is placed on a bipartisan legislative proposal– titled the Emergency Retiree Health Benefits Protection Act in the 110th Congress — which gained the support of 88 bipartisan co-sponsors. The bill would prohibit employers from making post-retirement cancellations or reductions of health benefits that retirees had earned.

“Companies would be made to live up to the financial commitments made to their employees and retirees, and most importantly, would do so without placing mandates on the employers as to what health plans they provide or monetary ceilings on the amount of health benefits”, Miller says.

Behind its efforts, ProtectSeniors.org has harnessed the support of retirees from 285 companies, 36 unions, 76 municipal, state and federal retiree groups, in addition to 14 retiree associations.

“Lately, economists, talk show hosts, journalists and even politicians have been blaming America’s retirees and union workers for the economic downturn, calling our earned retirement health coverage legacy costs and burdensome,” says C. William Jones, a retiree from Verizon Communications and president of the 100,000-member Association of BellTel Retirees. “I, and tens of millions of retirees like me, worked decades to earn those benefits, taking less pay and forgoing days off to fund them. For companies to now imply that retirees are a liability to them and America is morally offensive and absolutely inaccurate.”

Advocates of the legislation argue that over many years, companies used the promise of post-employment health care coverage to induce employees to stay with that employer or, in some cases, to take early retirement. Companies did not agree to pay retiree benefits out of the goodness of their hearts or social well-being; there were significant financial benefits and tax breaks for them. They further explain that employers benefited financially by not having to pay Social Security and payroll taxes on these benefits.

“Funding these benefits could be deferred by companies in years when earnings were low, unlike payroll that must be paid on time,” Jones says. “Since pensions are based on a percentage of wages, companies also saved on long-term pension costs.”

University Of Alabama School Of Law Professor Dr. Norman Stein, an expert on the nation’s Employee Retirement Income Security Act (ERISA) pension law testified in favor of the proposal at a congressional hearing in the fall, saying Congress should pass legislation “that would make it difficult or perhaps impossible for an employer to terminate retiree health benefits after an employee has retired.” The long time advisor to AARP and the Pension Rights Center argued, “Congress could try to level the playing field for employees with clear, reasonable and consistent rules.”

Just last year the U.S. Supreme Court and ‘Equal Employment Opportunity Commission ruled that it is legal for companies to reduce or eliminate earned health benefits for retirees ages 65 and over, due to a loophole in the ERISA pension laws.

Acting to close that loophole with legislation to protect America’s retirees, Rep. John Tierney (D-Mass.) says, “Unlike pension plans, ERISA does not impose mandatory ‘vesting’ requirements with respect to health benefits. Consequently, many courts have upheld that there is no legal protection for employees. (The Emergency Retiree Health Benefits Protection Act) remedies this and ensures that the reasonable health benefit expectations of retirees from ERISA-sponsored regulated group health plans are fulfilled.”

“America’s retirees are not here asking for a handout or a bailout,” Miller says. “We merely want companies to live up to the promises they made. Give us the health benefits we earned and paid for over decades of loyal service.”

To find out more about ProtectSeniors.Org advocacy call (202) 434-8193 or visit www.ProtectSeniors.Org.

Courtesy of ARAcontent

Outsourcing payroll allows small-business owners to concentrate on their day-to-day operations

(NewsUSA) – As the year turns, small-business owners will start reviewing their past actions and planning for the future. But one big issue -; payroll -; can prove to be a problem every year.

Many businesses find themselves in trouble with the IRS, not because they’re dishonest, but because they miscalculate numbers or miss due dates. The government’s financial penalties can be unwelcome blows to small businesses.

Even if a business employs only one worker, small-business owners can find federal and state employment forms complex and demanding. Some small-business owners might believe that they can save time and money by performing their own payroll calculations, but it’s usually in businesses’ best interest to hire outside payroll service providers.

Small-business owners need to concentrate the bulk of their time and attention on making their business successful. Paychex, Inc., a national leader in the payroll and human resource industry, offers these tips to small-business owners looking for a reliable payroll-processing service:

- Insist on personal service. For best results, you should be talking with the same payroll representative each pay period. That same person should handle any questions or concerns about your service.

- Look for national payroll-processing companies. National payroll service providers are bonded and insured, so any liability for inaccuracy or fraud will not affect your business.

In the event of a natural disaster or other calamity, national providers often have multiple backup systems to preserve data and deliver payroll packages on time. Paychex employs a rigorous backup plan to ensure continuity for clients across the country. Moreover, national providers offer the best confidentiality and security, and payroll deposits are taken care of electronically.

- Look for payroll service providers that also offer human resource services. Integrated HR services might include 401(k) administration, workers’ compensation insurance administration and payment services, health benefits and other employee benefits such as flexible spending accounts and bonuses or other compensation paid on debit cards.

“Small-business owners can realize a new level of productivity and convenience when they choose to outsource their payroll function,” said Walter Turek, senior vice president, sales and marketing for Paychex. “Outsourcing ensures accuracy, timeliness and peace of mind, allowing business owners to focus on growing revenue, instead of worrying about administrative burdens.”

With joblessness in the state at a 25-year high and the needy standing in line for aid, some are making direct pleas for help online instead.

In recent weeks, dozens of people have posted requests for help on the Raleigh edition of Craigslist, the Web site that offers free classified ads. As Christmas approaches, many posts have taken a desperate tone, asking for used children’s clothing, shoes or toys, holiday decorations, even food and rent money.

Thousands of nonprofit agencies across the state are dedicated to easing the suffering of the poor, but Craigslist is a place where people can ask directly for immediate help and connect with sympathetic individuals, not bureaucracies. Especially during the holidays, it’s a high-tech tug on the heartstrings.

“I need some help really badly. My family and I have hit some really hard times and are unable to pay our rent for this month,” read a post Dec. 5 from Zebulon with the subject line, WE NEED A MIRACLE. “The amount is 350.00. I don’t know what we are going to do. We honestly just do not have the money. This is not a scam, I am being as real as I possibly can be. We need help. Can someone help us please!!”

Four days earlier, a woman wrote: “My husband and I are looking for children’s items for a newborn boy and a 7-year-old girl. We are really having a hard time right now, though I know everyone is. …

“We moved to Raleigh and have had a string of bad luck and are trying to put something together for Christmas.”

‘It’s hard to keep up’

Vicki Shearin of Louisburg never thought of asking for help from anybody until this year. Her husband, Ricky, is disabled by end-stage emphysema, and her job as a shift supervisor at a local drug store is barely enough to pay the bills and medical expenses. As he undergoes tests to see if he is a candidate for a lung transplant, she tries to make sure that he’s comfortable and that their three sons still living at home have what they need.

Looking through Craigslist, she sometimes noticed people offering goods for free if someone would pick them up. She went a step further and put up a note in the “for sale” category, under “wanted,” asking if anyone had jeans or shirts in her boys’ sizes he or she couldn’t use anymore.

“I’m not even asking for Christmas help,” Shearin said. “I was just basically trying to find some clothes for the kids. They go from a 10 to a 14 overnight, and it’s hard to keep up.”

Shearin used her home computer. Others post from public computers at libraries or use those of friends.

Craigslist, which is administered by a staff of about 25 people in California, did not respond to requests for interviews about needy persons’ use of the site to solicit help. But other Craigslist users often “flag” them and remove them. Sometimes, the user who objected will add a scolding or cautionary note.

On Dec. 16, one asked why those who need help don’t turn to family instead of strangers. On Dec. 19, another suggested that some of those asking for donations were collecting goods to re-sell later.

On Monday, a user at sale-966789084@craigslist.org wrote: “I recently responded to a post for used FREE tv. The tv we offered was a 20 inch color tv with remote less than 2 yrs old. The POSTER of the add declined the tv saying she did NEED a free tv but wanted it to be 32 inches or larger…. There is a huge difference between NEED and WANT.”

R.J. Moshay, spokesman for Triangle United Way Inc., said he didn’t know people were using Craigslist to appeal for aid.

“I always thought of Craigslist as, ‘I need a roommate, I want a car,’ ” he said

Read More:News & Observer

CARY, N.C. — Regional financial services institutions like Bremer Financial Corporation must find ways to keep operations agile and efficient. When Bremer wanted to find a better financial management system, they selected SAS, the leader in business analytics, to more effectively create and analyze financial reports and budgets.

“With six separate databases required to accommodate the changing needs of our organization, we knew our processes needed an upgrade,” said Bob Buck, Chief Financial Officer at Bremer. “SAS® Financial Management provided a single solution for financial management reporting, budgeting, forecasting and consolidation. We found the solution offered the greatest flexibility for a single database of all financial management information.”

Bremer was frustrated by the need to use multiple modules for the budgeting, forecasting and reporting of financial and non-financial data. The processes in place were slow and inefficient. With SAS, Bremer will have a more streamlined and integrated planning and forecasting process, freeing up more time to analyze and improve financial plans across the organization. The added flexibility from SAS Financial Management will help the finance department manage the growing demands of business line profitability reporting and analysis.

“We anticipate increased productivity of our finance professionals with SAS in place. They will be able to focus their attention on higher-level analysis with less time devoted to managing cumbersome mechanics,” explained Ron Hansen, project manager at Bremer. “In addition to better analysis, the new solution will improve morale and retention of our experienced finance professionals, resulting in a more efficient cost structure for our finance division.”

SAS Financial Management improves the accuracy, relevance and timeliness of financial plans, budgets and reports while promoting the alignment and execution of strategy. SAS Financial Management is one component of SAS financial intelligence, a vision for financial performance management that includes solutions for financial management, activity-based management, dashboards and scorecarding, risk management, and advanced analytics such as optimization and forecasting. By combining the hindsight, insight and foresight provided through these powerful solutions, corporate finance departments can build credibility and confidence within other areas of the company.

Bremer Financial Corporation
Bremer Financial Corporation is a privately held, $7.6 billion regional financial services company jointly owned by its employees and the Otto Bremer Foundation. This unique ownership structure is the only one of its kind in the nation. Founded in 1943 by Otto Bremer, the company is headquartered in St. Paul, MN, and provides a comprehensive range of banking, investment, trust and insurance services to more than 100 locations in Minnesota, North Dakota and Wisconsin. A significant portion of company profits are distributed in the form of charitable grants by the Otto Bremer Foundation to communities served by Bremer. In 2007, more than $30 million in charitable donations were given across the Bremer footprint and employees donated more than 92,900 volunteer hours to their communities. For more information, please visit www.bremer.com.

Read More:CarolinaNewsWire