Many U.S. CEOs remain confident despite challenging environment

In the midst of the COVID-19 pandemic, many U.S. CEOs remain confident in the growth prospects of the domestic economy and their companies and are accelerating investments in digital transformation, according to a new study by KPMG LLP, the U.S. audit, tax, and advisory firm.

The 2020 KPMG CEO Outlook features insights from 315 CEOs at large companies globally, including 100 in the United States, who were surveyed in July and August about the business landscape over the next three years. Key findings include:

  • Forty-three percent are “more confident” in the growth prospects of the domestic economy and their company (60%) compared with the beginning of the year, while 37% said they were “more confident” in the growth prospects of the global economy.
  • Low to moderate growth is expected. Thirty-nine percent predict 2.5-5% growth, 33% expect less than 2.5% growth and 14% predict no growth.
  • Environmental/climate change risk (21%), talent risk (20%), a return to territorialism (18%), supply chain risk (15%), and cyber security risk (12%) were identified as the greatest threats to their organizations’ growth aside from global health security/pandemic risk.

“U.S. CEOs are resilient and remain optimistic as they continue to rise to meet the challenges and opportunities resulting from the pandemic and ongoing economic uncertainty,” said Paul Knopp, KPMG U.S. Chair and CEO. “They are accelerating the digital transformation of their businesses, but also see a multitude of risks apart from the pandemic—with talent risk becoming front and center in the current environment.”

Digital investments accelerating

The majority of CEOs noted the COVID-19 pandemic has accelerated their digital investments and progress across numerous dimensions by at least a matter of months. These areas include:

  • The digitization of operations and the creation of a next-generation operating model (74%)
  • The creation of new digital business models and revenue streams (70%)
  • The creation of a seamless digital customer experience (73%)
  • The creation of a new workforce model, with human workers augmented by automation and artificial intelligence (66%).

CEOs cited difficulty making quick technology-related decisions (31%) and a lack of insight into future operational scenarios such as new ways of working (22%) as the greatest challenges associated with accelerating digital transformation within their organization.

As they respond to COVID-19 and prepare for the post-pandemic reality, 74% said they were prioritizing investments in new technology and digitization over developing their workforce’s skills and capabilities (26%).

Changing working world

As a result of the pandemic, CEOs see the world of work changing in numerous ways.

  • Sixty-eight percent said they will downsize their office space.
  • Seventy-six percent said they will continue to build on their use of digital collaboration and communication tools.
  • Seventy-eight percent said remote working has resulted in significant changes to company policies in order to nurture their organization’s culture.
  • Seventy-two percent said that working remotely has widened their potential talent pool.

Trust and leadership

  • Seventy-seven percent said they need to re-evaluate their corporate purpose as a result of COVID-19 to better address the needs of their stakeholders.
  • Seventy-seven percent said their communications with employees have improved during the crisis.
  • Eighty-three percent want to lock in the sustainability and climate change gains they have made as a result of the crisis.
  • Fifty-eight percent said their response to the pandemic has shifted their focus towards the social component of their environmental, social, and governance (ESG) program.
  • Sixty-seven percent said they already had—or planned to—publicly declare new measures this year to combat racial discrimination against Black employees.

“As much as COVID-19 changed how people work and how organizations invest in technology, companies are re-assessing their values and purpose,” Knopp said. “CEOs also are placing a greater emphasis on employee engagement and corporate culture in this new working reality.

Taking a customer-first service approach during unprecedented times

The rapid outbreak of COVID-19 has presented an alarming health crisis that has affected almost every aspect of our lives here in the U.S. and around the world. There are significant commercial impacts being felt locally and globally, affecting the way organizations engage and interact with their customers.

For example, firms are having to make significant changes to how they operate at an unprecedented pace. In these turbulent times, they are rediscovering their sense of purpose, innovating rapidly and getting closer to the communities they serve–underscoring the fact that corporate social responsibility is now fundamental to how many successful companies operate today.

Investing in the customer relationship

Research shows that taking a “customer-first approach” and investing in the customer relationship in times of difficulty–such as the COVID-19 pandemic–will be repaid by enduring customer loyalty.

The 2020 KPMG U.S. Customer Experience Excellence (CEE) report, which identifies the top performing brands and industries in terms of customer experience based on a survey, found that brands that were able to continue to transact with their customers in the COVID-19 environment performed better than those that were unable to. It also found that brands that used technology, including AI, to transfer the in-store experience online reaped the rewards of customer loyalty.

“Leaders in our 2020 index are purpose-led companies with deep connective customer relationships, offering online experiences that are immersive, emotionally connective and safe,” according to Julio Hernandez, U.S. Customer Advisory Practice lead at KPMG LLP. “With the move to online accelerating due to COVID-19, the nature of the relationship between brands and their customers has changed.”

Uncharted territory

As the COVID-19 situation becomes more complex, how and when companies should lend support is still uncharted territory. Unlike disaster relief, there is no playbook or roadmap. However, companies must continue to keep their employees’ trust, understand evolving consumer and community needs, and provide products, services and resources when appropriate.

We are already seeing companies innovating rapidly to cope with the uncertainties ahead. For example, working from home may become the new normal as companies find unique ways to respond to customer needs through a virtual, rather than a physical, team-based approach. There is little doubt that COVID-19 will irrevocably change the way businesses will compete over the next decade.

The Six Pillars

The CEE report utilizes Six Pillars of experience that explain how companies navigated the new environment and how they performed in terms of customer experience. Organizations that master the Six Pillars grow more quickly, manage costs better, and make people happier.

High performing customer experience leaders scored high across the following Six Pillars:

  • Integrity, acting ethically and demonstrably in the customers’ best interests
  • Resolution, focusing on proactively addressing customer problems
  • Accurately setting customer Expectations
  • Reducing the Time and Effort customers need to expend by enabling frictionless digital and, where possible, physical interactions
  • Delivering a Personalized experience 
  • Empathy and compassion

Connecting with changing needs of customers

The KPMG Denver office has developed and is implementing a technology solution that is a good example of focusing on the customer experience during this time of uncertainty. This tech solution was developed to help a number of financial services clients successfully navigate through the entire national Paycheck Protection Program (PPP) being administered by the U.S. Small Business Administration (SBA).

Since the PPP program involves a long and complex process, there is the potential for customers to feel disconnected and “in the dark.” It’s also stressful for customers due to frequent changes to the PPP loans from evolving legislation. That’s why it is so critical to remain flexible, innovative and focused on the Six Pillars, which enables the KPMG Denver team to connect with customers successfully. 

To provide a better customer experience and to reduce processing time, KPMG has designed a cloud-based and tech-enabled self-service loan application management solution for several clients to streamline the process.

Lauresa Escribano is Director of Customer Solutions at the Denver office of KPMG LLP.

How COVID-19 has impacted millennials in the workplace

Millennial workers have long been known for seeking employers that provide flexibility, a positive workforce culture and opportunities for growth. And more than other generations, millennials have had a habit of jumping ship if their employers didn’t deliver. In a survey taken by Gallup last year, millennials were 10 times more likely than their older counterparts to say that they’ve changed jobs in the past year.

Of course, that was before the arrival of the coronavirus, which has dramatically altered the way employers operate. I was curious to find out if the pandemic had also changed the way millennials view their work and whether their priorities had shifted in response.

So, I asked Northstar’s younger employees to weigh in on how COVID-19 had changed their perspective on their careers and work. Some of the responses I expected, others took me completely by surprise. As we navigate these difficult times ahead, I thought it might be helpful to share what I found, in case it proves helpful for other employers facing the same issues we are today.

Work/Life Balance Still Highly Valued

Universally, our employees said that the silver lining of the pandemic has been working from home, which has made them more productive professionally and personally. Working remotely, they said, has given them more time with family, helped them better manage their days and improved their emotional well-being. By and large, they also felt they were accomplishing as much as they were in the office without the distractions or hassle of a commute. Not surprisingly, all reported liking their jobs more since moving to a work from home arrangement.

On the flip side, when asked about the worst thing about the pandemic, several mentioned the lack of personal interaction in addition to the pain, suffering and uncertainty caused by the virus. There was also the acknowledgement that some tasks require collaboration that is easier to achieve when working together, face-to-face.

Once life returns to “normal,” the challenge for my partners and I will be to figure out how to satisfy the need for in-person collaboration with the desire to work remotely. One employee noted that the traditional office-based, 40-hour work week now seemed excessive. We don’t know what the office of the future will look like, but it’s clear that the pandemic has convinced millennials that flexibility is a benefit worth retaining.

Virus Provides Career Clarity

For the majority of our employees, the virus seems to have cemented their decision to pursue a career in finance. While a few are taking a broader view and  trying to understand how both their roles and the industry might change in the future, they continue to study for financial exams and remain invested in contributing to our firm. I am guessing this might not be the case if we were in the airline or retail industry, but the good news for us is that the pandemic has provided employees with a renewed gratitude for and interest in our field.

The Role of Mentorship

More than 70%  of Fortune 500 companies now have formal mentorship programs, according to mentoring software provider Chronus Corporation. This comes in response to countless surveys that show millennials consider mentorship crucial to career growth. As a Baby Boomer who prefers in-person meetings to phone calls, I find myself questioning how valuable mentorship can be if it is only delivered virtually.

Our employees, however, appeared to disagree. They not only ranked mentorship as a key ingredient in advancing their careers, but suggested  that mentorship via Zoom or another online platform could still serve a valuable purpose. To my surprise, they also said that employers alone aren’t responsible for providing guidance and career advice; mentorship could come from other colleagues in the industry, through networking opportunities, as well as industry conferences.

A Pat on The Back

Our employees also gave us credit for adapting so quickly to the crisis and providing them with the tools needed to do their jobs effectively. We began working remotely before the statewide stay-at-home order went into place and the majority of our staff continues to work from home to protect their safety and well-being.

Our millennial staffers have also appreciated our increased communication–to both clients and the staff as a whole. The entire firm gathers via Zoom every morning to catch up, which means we are meeting more frequently as a group than we did when we were in the office. Said one employee: “Seeing people’s faces, talking, reminding ourselves of our duties and schedules has been key for accountability.”

This increased communication has allowed us to build a new level of trust with employees, according to a few respondents. And at least one mentioned how the strong foundation we have built has allowed us to operate efficiently and serve clients well even during all the uncertainty and global chaos.

I am heartened to hear that we have established the kind of workforce culture that millennials crave. While it is still too early to say what our operations might look like even six months from now, I am confident that if we stay open to new ideas and continue to keep the conversation going – with all of our employees – they will remain engaged and committed to our mission.

0407 Northstar 24august2011   Fred Taylor co-founded Northstar Investment Advisors, LLC in 1995. The firm specializes in managing personalized investment portfolios for individuals, families, and retirees with a focus on income generation. He is a member of the Colorado Forum and also served as an economic advisor to Colorado Governor Bill Ritter from 2008 to 2010. 

Handling a new normal in the workplace

Never in a million years did I think we’d have a serious business conversation about how many lawyers should be allowed to use the bathroom at once.

What’s the right number? Is it two? Four? Even six? Do we need to investigate the matter and do a little research? Maybe count stalls, measure floor plans, even (God forbid!) do a comparative analysis of the mens’ and ladies’ rooms?

For argument’s sake, let’s say we find the right number. The perfect number. Let’s say it’s three.

How in the world can you tell whether or not there are one, two, three, six or zero people in there at one time? Do you have a system? Some type of punch in, punch out sign? Or do you just ask people holler in there and have the folks using the restroom sound off? Do you need a sign-up sheet? A reservation system?

These topics are as ridiculous as they sound, almost like the start of a really bad joke. Something like, “How many lawyers does it take to use the restroom?”

But in the world of coronavirus, these topics aren’t a joke. They are deadly serious. And in the midst of all this, you have to make decisions within an environment that is supposed to be a place of business.

These are the kinds of moments and discussions that define 2020. It feels like the Twilight Zone.

I am one of many owners of a small business, a law firm in Denver. Moye White LLP employs a total of 134 people, including 66 attorneys. I’m one of five partners charged with managing the firm. When I was asked by my partners to help manage the firm several years ago, I anticipated all kinds of management challenges with business, the law, human resources and all the various issues which pop up and need to be handled on a daily basis.

What I never anticipated was having to have a serious management conversation with my partners about how many lawyers can use the restroom at the same time. It seems unreal, but it is a reality for my business and for businesses across Colorado and around the country.

Like countless other businesses, we took our office completely remote in the middle of March. If you had told me then that it would be harder to return to the office than it was to leave it, I wouldn’t have believed you. But that has proven to be true.

There are a plethora of issues, from the obvious to the mundane to the unreal, to tackle in order to return to the office safely. Everything needs to be handled effectively so people can come back to the office and work as they have for years until now.

Let me share another fun detail. Coffee. The elixir of life, particularly in a law firm. I shudder to think of the sheer volume of coffee that our law firm goes through on a daily basis. Coffee is the fuel that we lawyers use each and every day to operate. We brew it in huge dispensers, multiple times a day, at four different locations in the office.

And now, we simply can’t. We can’t have the huge dispensers. We can’t have people swing by and pump themselves some coffee. We can’t have several people congregating and chatting by the coffee station like before. Coffee is gone.

These new realities have made me rethink everything I know about a workplace. But I’m learning that just because something is crazy doesn’t mean it’s not real. And it doesn’t mean we don’t have to deal with it. And if that isn’t 2020 in a nutshell, I don’t know what is.

There are also countless details that are less humorous. People are scared, and rightfully so. Individual people have individual circumstances regarding health or family or other factors. The spectrum of viewpoints on COVID-19 and its relative risks spans a wide range, making conversations and decisions especially complicated.  

And the hardest part about these conversations is that there is no undoubtedly perfect answer. We don’t know enough to make the perfect decision. We don’t have any previous experience in dealing with these types of issues. We’re just going to have to take it one step at a time, doing our best and hoping for the best.

I really don’t know if we’ll ever figure out the perfect number of lawyers who can use the restroom at the same time. We’ll make a guess, and we’ll devise a system. And it may work, or it may not. We may get lucky and pick the perfect number. Or we may pick a number and system that we use for 15 minutes before we realize we made the wrong choice. 

One way or the other, we’ll figure it out, day-by-day and bit-by-bit. The only thing I know for certain is that somehow we will all find a way to get through this together, so long as no more than three lawyers in our office have to pee at the same time.

Billy Jones is a partner at Denver-based Moye White where he focuses on complex civil litigation and business disputes. He can be reached at [email protected] or 303.292.7930

How some Coloradans’ health habits changed during COVID-19

Are you finding yourself walking more or struggling with your diet these days? If so, you are not alone.

The COVID-19 pandemic may have changed many aspects of our lives, including some of our daily habits that may have an impact on our health. Among those changes may be ways in which some people have adapted their workout routines and changed diets, according to a recent UnitedHealthcare survey.

Here’s a look at how COVID-19 may have influenced health habits–and tips to consider to help people focus on their fitness and well-being amid the on-going pandemic.

Walking and running rank as top exercise options: Most survey respondents (68%) who workout said walking has been their preferred method of exercise during COVID-19, followed by running (28%), body-weight exercises (23%), cycling (21%) and weight training at home (18%). Interestingly, baby boomers and Generation X both ranked walking as their preferred exercise option.

To make the most of your daily steps, try to walk frequently (at least six short walks per day), with intensity (one walk with at least 3,000 steps within 30 minutes), and with tenacity (at least 10,000 steps per day). For added motivation, check with your employer or health plan to determine what wellness resources may be available, including walking-related programs that may provide financial incentives for meeting certain daily step targets.

Impact on people’s diets has been mixed: In terms of eating habits, 30% of survey respondents said their diet is worse now than before COVID-19. This may have resulted from being at home with more snacking temptations throughout the day. However, some people (21%) have used the pandemic to focus on their health and report having improved their nutrition choices.

For additional support, consider online nutrition programs that are designed to encourage weight loss and help reduce the risk of developing type 2 diabetes. By accessing virtual support, people may be able to make “micro-behavior” changes, such as swapping sweet treats for fruit, that over time may contribute to well-being and reduce the risk of certain chronic conditions.

More people plan to get the flu shot: While researchers work to develop a vaccine against COVID-19, 30% of respondents said they are now more likely to receive the annual flu shot this fall. While the flu shot won’t protect you against COVID-19, it’s still an important step to help avoid contracting the flu and experiencing potential complications, such as the need for in-person medical visits.

The flu shot is considered preventive and may be covered through employer-sponsored, individual and Medicare and Medicaid health plans. Vaccines are available through primary care physicians and convenience care clinics. Visit the CDC website at cdc.gov/flu to search for a nearby care provider based on your zip code.

Some people are ready to return to the office: Many respondents (51%) said they are comfortable returning to work when the time comes; however, 28% reported that they wouldn’t be. As for common workplace norms, one-third (34%) of employed respondents said they would stop shaking hands at work no matter the circumstance, thus helping reduce the risk of viral transmission.

Some respondents (35%) said they’d use an alternative physical greeting, such as a fist or elbow bump; and others (31%) said they’d continue handshakes despite the potential risks of COVID-19. To help return to the workplace as safely as possible, consider checking with your employer to determine what changes may have been made, including physical distancing, temperature checks, on-site testing or use of protective equipment (e.g., masks, face shields). People may also have access to ProtectWell™, a return-to-workplace protocol and app may provide helpful information to employers developing their return to work approach.

Many people across the country may be facing new health challenges amid COVID-19. By considering these trends and tips, people may be able to adopt healthier habits at home or in the workplace.

Dr. Michael Bess is the Vice President of Health Care Strategies for UnitedHealthcare.

Back to school chaos: 4 steps to take now to support working parents

As of the writing of this article, politicians and health officials at all levels agree on one thing: COVID-19 is going to get worse before the year ends. Meanwhile, school districts are making plans to resume teaching children in the fall in a wide array of formats, including: in-person classroom, online instruction, “hybrid” of live and online, compressed and variable scheduling, etc.

Some staff may refuse to return to work in schools open for live instruction out of fear of infection. If an outbreak occurs in a classroom, a school may suddenly close and require children stay home. With COVID-19 in control, working parents face a chaotic reality when their children return to school. 

Are you drafting plans right now to support working parents who must balance their children and their jobs?

Sticking your head in the sand, or taking a “Not my problem” attitude is perfectly legal and even tempting. However, being rigid or avoiding reality will likely have serious consequences including workplace chaos and the unnecessary loss of good employees.

For employers who value employees and wish to support them through this chaos, as well as increase the ability to keep the business on track, a radically flexible approach may be needed to manage these inevitable upcoming challenges.

Consider these four steps:

Step 1: Acknowledge the situation and engage employees in innovating solutions.

Survey employees in a discussion over what challenges they face with childcare and children returning to school.

Educate employees about the challenges and solicit an “all hands on deck” attitude.

Coach employees to be solution-oriented and facilitate problem-solving sessions for them to draft their own personal plan for managing and creating back-up plans. Some employees may be stressed out about their circumstances and the uncertainty imposed on them by COVID-19; they may benefit from fresh perspectives on their circumstances.

Engage in “war games” planning to identify and address “What if” scenarios such as, “What if half of our workforce cannot report to work due to school/ childcare closures?”

Step 2: Evaluate current practices and focus on what matters.

Adjust expectations of how work is done—focus on outcomes instead of “face time” hours. (Caution: non-exempt employees must be paid for all hours worked.)

Revisit attendance and leave request policies—allow for legitimate “last minute” requests due to school closures and avoid punitive consequences.

Ask all employees to collaborate and be more agile in responding to the disruption associated with the pandemic.

Evaluate benefits to provide more support to working parents and employees facing other challenges due to COVID-19.

Temporarily suspend “nice to do” but non-essential workplace activities; employees who are spending time on non-essential projects or committees may be needed elsewhere.

Explore how work can be completed in new ways. Empower employees to identify and eliminate wasteful actions, and define work-arounds to focus on core functions.

Identify skills in staff from other teams that can be temporarily reassigned to gaps created by a colleague who had to stay home due to school closure.

Create on-demand pools with the help of temporary staffing firms.

If a 9 – 5 pm, Monday – Friday schedule won’t work for employees, try a schedule that includes evenings as well as Saturdays and Sundays?

Evaluate vacation planning and other planned absences—it may be necessary to disallow them for months at a time. Though not popular, such a step may be one of the temporary shared sacrifices necessary to successfully navigate the chaos of COVID-19 this fall.

Step 3: Offer options to employees and build community.

Offer scheduling flexibility for working parents to plan for known and adjust for unknown challenges: compressed workweeks, intermittent schedules, transition to part-time status.

Build community among employees and guide them to share resources, ideas and creatively get work done while also supporting each other in new ways, such as:

Job sharing: employees with similar job tasks are “paired up” to allow each to take time off.

Task pooling: job tasks are assigned to a “pool” of employees who rotate through and complete work that must be done while having time to meet personal needs.

Cross-training: learning new skills and tasks may be necessary to enable employees to flex and cover for colleagues who must take time off.

Technology makes remote work a possibility for more jobs than employers think; engage employees in remote work planning and drafting new procedures to ensure accountability.

Empower managers to innovate and address evolving conditions, as well as encouraging them to build community with employees facing childcare challengers and devise “win-win” solutions.

Step 4: Maintain compliance and seek advice.

Various laws may impact your plans and require attention to ensure compliance.

  • FFCRA: mandated paid leave for certain employees may be required due to school district closures.
  • FLSA: avoid wage and hour violations for non-exempt hourly employees as well as exempt/ salaried employees who may take leave or work intermittent schedules.
  • Evolving laws: new federal legislation may be passed to amend FFCRA to expand benefits or possibly provide new entitlements; local laws may be passed that impose new requirements on employers.
  • Seek assistance from trusted advisors to navigate legal complexities and inform your strategic plans.

Staying safe while working in client homes

While many Coloradans maintain social distance and stay safer at home, “essential workers” continue to serve their communities.

The term might bring to mind health care workers and grocery store staff, but small-business owners know they’re not alone. Contractors, real estate agents, home health aides, social workers and housekeeping staff are just some of those on the front lines. Many of these workers must enter client homes as part of their jobs, leaving them with little control over their work environment.

While the health and safety of these workers has always been a top concern, the uncertainty of the pandemic makes protecting your employees even more critical. The tips below can help minimize their risk and help keep them safe.

Tips for employees working in client homes

1. Get details on the situation prior to arrival.

Find out whether anyone in the home is sick or under quarantine and, if so, aim to postpone the visit if possible. If everyone appears healthy, use email and phone conversations to find out as much about the project as you can in order to minimize time spent in the home. Also request online payment for services to reduce in-person interaction.

2. Keep your distance.

Greet the customer verbally, but don’t shake hands. Let the customer know that you will be keeping a 6 foot distance from everyone throughout the job.

3. Wear proper protective gear.

Many jobs already require gear such as masks and gloves. Even if your role typically doesn’t require them, consider wearing them now to keep yourself and others safe.

The Centers for Disease Control and Prevention is now recommending that everyone wear a mask; a homemade mask is acceptable if a manufactured respirator/mask is not available.

4. Bring your own tools.

Whether it’s a mop for washing the floor or a pen to sign paperwork, bring your own equipment to avoid having to touch the homeowner’s belongings. Make sure to sanitize all tools upon leaving the home and before placing them in your vehicle.

5. Practice proper hygiene.

Clean and disinfect all work surfaces before beginning the task. Wash your hands when you arrive, before you leave and any other time it feels prudent. Bring paper towels to dry your hands rather than using a hand towel provided by the client. If soap and water are not available, clean your hands with an alcohol-based hand sanitizer that contains at least 60% alcohol, covering all surfaces of your hands and rubbing them together until they feel dry.

6. Keep your vehicle sanitized.

If you share a vehicle, make sure to use an approved sanitizer to wipe down all surfaces between uses. If you are driving your own vehicle, wash your hands or use sanitizer after exiting a client’s house and before entering your vehicle.

7. Wash your clothes as soon as you arrive home.

Change out of your work clothing and take a hot shower immediately after getting home—before you relax or greet family members. You may choose to wash the clothing you wore on the job in hot water separately from other garments.

Tips for specific types of personnel

In addition to the advice above, here are some tips specific to the situations faced by professionals in certain industries.

Construction Guy Turq (2)

Construction workers:

  • To avoid close contact with others, complete as much of the job outside or off-site as feasible, such as building and assembling components or staging materials.
  • If you will be returning to the same site for several days, rope off the area where you’re working and ask clients to avoid using it if possible.
  • If you are working as part of a team, maintain distance and take breaks on rotating schedules.

Housekeeping staff:

  • Maintain strict hygiene protocols throughout the visit.
  • Avoid certain tasks, such as changing sheets, if possible. Explain that the less time you spend touching clients’ personal items, the safer everyone will be.
  • To help avoid spreading contaminated dust, use vacuums with a HEPA filtration system.

The most important thing you can do as an employer is place a high priority on your workers’ health and safety. Encourage them to bring their concerns to you, and do whatever you can to mitigate risks while still meeting clients’ needs.

Access more expert tips from Pinnacol on how to keep essential workers safe, and schedule a free virtual safety consultation at covid.pinnacol.com.

(This sponsored content was provided by Pinnacol Assurance)

Business leaders launch movement to build more diverse Colorado economy

Denver-area business leaders recently launched the Colorado Inclusive Economy, a new movement aimed at rebuilding the state’s economy to work more effectively for all Coloradans. Employers who join the movement commit to hiring and advancing employees of color, developing more supportive workplace cultures and investing in workforce development to create a more diverse and skilled pipeline of talent.

“This is a real moment of awakening for the business community. The pandemic and Black Lives Matter protests have revealed economic disparities and institutional racism that we can no longer ignore. Working collectively and diligently, we can make Colorado a state where every resident has access to the same opportunities and the ability to reap equal rewards,” says Jandel Allen-Davis, M.D., CEO of Craig Hospital and a founding leader of Colorado Inclusive Economy.

Colorado’s economy has been among the strongest in the nation in recent years, but not everyone has participated in that prosperity, with communities of color continuing to lag behind economically. The COVID-19 crisis disproportionately impacted both the health and finances of Black and Hispanic Americans, who tend to work in service industries and in low-wage jobs most affected by coronavirus-related shutdowns. While the unemployment rate for white workers rose to 14.2% in March, the African-American rate jumped to 16.7%, and unemployment among Latinos was 18.9%

The Inclusive Economy movement is not only focused on getting individuals from marginalized populations back to work, but into higher-paying positions that offer long- term career growth. The group’s plan is to collectively hire and develop workers from underserved communities into career-path jobs offering salaries of $40,000 and above and to foster their professional development and advancement.

The group’s founding members represent both public and private sector employers, including Denver Health, IMA Financial Group, Denver Museum of Nature and Science, Craig Hospital, Pinnacol Assurance, Bow River Capital, the Blackstone Entrepreneurs Network and Janus Henderson.

“We invite and challenge our fellow business leaders to join us to build an economy that reflects both the diversity of our state and our common values of shared prosperity. History is calling us to co-create a society where all can flourish,” says Helen Young Hayes, founder of Activate Workforce Solutions and executive sponsor of Colorado Inclusive Economy.

Building a more inclusive culture not only increases economic opportunities but also provides a number of benefits for employers. Diversity can help with overall recruiting, reports Glassdoor, with 67% of job seekers considering a diverse workforce an important factor when evaluating companies and job offers. Racially and ethnically diverse companies are 35% more likely to outperform their competitors, according to McKinsey & Company.

The steering committee guiding Inclusive Economy’s work is developing a list of best practices, a toolkit and other resources to help employers transform their recruiting, hiring, on-boarding, and advancement processes to support a diverse workforce. The committee is also building a database of subject matter experts to help employers implement and optimize workforce diversity programs.

“We’re pleased to be a founding member of Colorado Inclusive Economy and look forward to collaborating with business leaders across the state on this important initiative,” says Blair E. Richardson, CEO of Bow River Capital. “Recent events have revealed the social and economic disparities that exist for women and people of color in Colorado and nationwide. It’s imperative that business leaders join forces to address this issue in a meaningful way.”

Inclusive Economy’s 10-year goal is to demonstrate a collective improvement in the diversity of all levels of staff, from entry-level to managers to executives and board members, along with equitable compensation practices among all groups. The group plans to report its progress by sharing collective data on gains made in workforce diversity, employment and wealth creation.

 

Why 2020 is the year of the moose

2020 is now the year of the moose. Why the moose? Here’s the whole story.

The weather was beautiful as I rolled out of bed that morning; I had a busy day filled with several closings so wanted to ensure I got in a run before the day started.  It was around 5:30 in the morning as the sun was already up in northwest Colorado.  I grab my shoes and leash Luna (my Siberian husky), and we walk to the trail.

I run on this trail several times a week, it is wide and heavily used which makes it an easy quick run.  I was planning on a five-mile jog out and back. As I neared mile 1.5, I see the moose, in full charge, heading directly towards me. While I regularly see moose, bear and other wildlife, I knew instantly this was not a normal encounter. Typically, a moose will let you know they are present, and you can put distance between yourself and the moose and you are fine.  Today was radically different, I knew I was in trouble with the moose suddenly hot on my heels.

With the moose behind me, I immediately took off into a sprint as I heard the hoofs getting increasingly closer; I hear her snorting getting louder. This is not a false charge.  I glance back again to see the moose now just steps behind me.  I knew I had to drop the leash to allow Luna to get away, and hopefully distract the moose.

Fortunately, as I dropped the leash, the moose was momentarily distracted by Luna, giving me a few second head start to dive under a spruce tree for cover.  In any moose encounter, typically you get behind a tree or other object and the moose loses interest.  However, once again, today was different.

I was crouched under a large spruce tree that had tons of branches. I thought I was fine until a few seconds later, the moose turned and headed towards the tree at almost full charge. She saw me crouched in the tree well and began using her hoof to try to break the branches and get at me.  I tried talking calming, yelling and remaining silent, nothing seemed to work.

As Luna circled back to try and check on me, the moose tried to kick her and then quickly comes back to focus on me. This went on for several minutes until a car turns into the parking lot around 15-feet from where I had taken cover. I peeked my head out to see if this will give me a few minutes to run the other way.  Unfortunately, the moose charged the car, which then pealed out of the parking lot, and then quickly came back to me.

The moose got increasingly agitated as I became increasingly worried. She would have done anything for me to leave (I would have gladly obliged), but I was stuck with no way to exit without getting kicked and or trampled.  I didn’t have my phone with me, and my options were running out.

As each minute passed, the moose continued to use its hoofs to break the branches and get closer to me. It reminded me of a bull winding up before a charge.  I knew I had to act quickly if I was going to make it out alive.  I can now see the moose’s face a couple feet away. She was definitely angry, and her snorts were growing louder.  The moose pushed its head through the branches toward me. I knew I had to act, so I lunged back against the tree and gave the moose a swift kick in the nose.  The moose looked at me a bit startled and took a few steps back and then took off.

This was my chance to make a break for it.  I rolled out under the opposite side of the tree and took off the other direction; I’m home in a few minutes.

Before I arrived, my wife was startled out of bed as the doorbell motion sensor went off; she saw Luna running toward the backyard with her leash on, with me nowhere to be found.  She was freaking out when, a few minutes later, I came running down the hill with ripped clothes and blood streaming down my legs.

I called the division of wildlife to report the incident, and as I explained the story the officer asked if this was related to the dog running down the road being chased by the moose. Several people had called in after seeing Luna being chased down the road by the moose.  When I kicked the moose, it lost interest in me and went after Luna, chasing her all the way home.

Why was the moose so aggressive?

After my call, the officer went out and was able to locate the moose because she was still in the area.  He quickly discovered the moose had a brand-new baby calf with her.  It appears the moose had, within the last several hours, the calf, which is why she was acting so aggressive.  Even though I was scanning ahead and cognizant of my surroundings, I never saw the moose or calf before she was charging. The calf, unbeknownst to me, was likely not far from where I took cover, which is why the mom wanted me to leave so badly.

This was, unfortunately, a case of being in the wrong place at the wrong time for both me and Luna.

Why is 2020 the year of the moose?

As we are halfway through 2020, it is apparent that this year is not like any other year we have ever experienced.  Almost every economist missed the recent economic gyrations, because all the planning in the world was unable to predict what this year has had to offer. The virus has thrown the economy into a tailspin, with pieces falling out every day. Just like the moose, the virus has created many instances of wrong time/wrong place, creating a dangerous financial situation.  The huge amount of uncertainty has also made this year even more precarious.

Just as in the moose story, this year will have twists and turns and you cannot let your guard down.  We recently saw an amazing job report that has led to a historic run up in the stock market.  Don’t be fooled, unfortunately, the moose is just get started and there are sure to be surprises that you must prepare for.

4 tips to survive the year of the moose

The moose is indicative of 2020 and is a stark reminder that you must be ready to react to whatever is thrown your way.  The pandemic has been an unprecedented event and will create change that is nearly impossible to predict.  There are four key lessons that the moose taught me that will help everyone stay “alive” during these challenging times.

  • Prepare: Although there is no way to prepare for the test, per se, general preparation is critical. Now is the time to go through what if scenarios to, at the very least, mentally prepare for the challenges ahead.
  • Mindset: Having a moose running at you full force is an important reminder of how important your mindset is. You can have all tools in the world (or none), but at the end of the day, your most important tool is your mind. It is imperative to keep level-headed in order to make the right decisions.
  • Trust your instincts:In difficult situations you don’t always have time to think through all of your options. In my case, if I would have stopped running to evaluate the situation, there is no way I would have made it.  Many times, you will be forced to react, and you must trust your instincts.
  • Do or do not:I always tell my kids that some of the most important advice is from Yoda; Talk is cheap, either do or do not.  If you are going to do something, commit and do it. When my back was against the tree, I had a choice to survive, I went for it and fortunately it worked out.

Summary

The moose is a stark reminder of the challenges and uncertainty ahead. The year of the moose is just getting going and will not end without considerable uncertainty and pain. The pandemic and subsequent shutdowns have forced the economy into a crisis that will not be resolved as quickly as the markets are alluding.  There is no doubt that the year of the moose has plenty of energy left in the tank to wreak havoc.  Now is the time to ensure you prepare, have the right mindset, trust your instincts, and execute so this year does not kill you, and only becomes a pain in the rump with some scratches and bruises like it did for me.  Be safe in the year of the moose.

From Illegal to Essential: Which cannabis companies will survive COVID-19

With coronavirus spreading throughout the United States and around the globe, businesses across industries are feeling the impact—and businesses in the cannabis space are no exception.

Here in Colorado, the state’s leadership deemed cannabis dispensaries “critical” retail businesses, and the demand for essential products, such as flower, edibles, topicals and tinctures, remains high in our state. Unfortunately, the industry’s massive growth might backfire for many companies as the spread of COVID-19 draws a stark contrast on the long-term stability between different business models in the industry.

With authorities across the country ordering the shutdown of restaurants, bars and other public places and gatherings, some companies in the cannabis space were forced to close, while others turned to curbside pickup or delivery. Many of the shops that could remain open initially experienced a dramatic surge in sales as customers stocked up in fear that their local dispensary would also have to shut its doors during the pandemic.

In fact, reports have shown an increase in cannabis sales. And while campaigns surrounding the legalization of cannabis have slowed during the pandemic, the industry has achieved newfound legitimacy as most states deemed both medical and recreational cannabis dispensaries essential during the quarantine.

Rapid growth—but issues loom for many

The cannabis industry has grown at an astonishing rate—seeing an incredible 15% growth in 2019 alone. In fact, a recent report revealed cannabis is America’s fastest-growing industry. However, many public cannabis companies, with artificial revenue growth and pot stocks, have put their energy into becoming the biggest company in the space, scaling at a dangerous rate and failing to follow basic business principles that promote long-term growth.

While growth and expansion can be quite exciting, these companies often expand into new markets as different states move farther along the path to legalization but fail to recognize whether a store is necessary or even makes sense in that locale. Plus, uncontrolled expansion can cost companies time, money and other resources.

When a company in any industry grows too quickly, it can lose track of its finances and make cash flow mistakes that result in big trouble—despite strong growth, cannabis companies are certainly not immune to business realities. Companies might feel pressured to hire more people sooner than anticipated—putting culture and customer service at risk—and might not be able to cultivate or purchase products quickly enough to fill orders, which can impact quality and customer supply expectations. Increased demand for cannabis products often results in increasing the supply, and you can’t just “make” more cannabis; growing quality product takes time. This simple, often overlooked, reality can prove to not only be detrimental to the product’s quality but can also lead to compliance concerns.

Regulations don’t care about your business issues

Because the legal status of medical and recreational cannabis is continuing to evolve and can vary greatly by state, maintaining compliance with local and state regulations is essential to preserving a company’s reputation and their license to legally operate. From cultivation to sales, every aspect of operation must follow strict regulations, and any missteps can result in significant fines, reputation damage or even a complete shutdown.

By baking compliance into everything the organization does, cannabis companies aren’t forced into difficult positions when new regulations arise—they simply incorporate the new rules into what they’re already doing. Implementing the correct procedures will not only help companies thrive, but it will also create resiliency for years to come. Too-rapid growth, however, can place new employees with insufficient experience in positions to make decisions that should be put in the hands of more seasoned employees.

Culture, culture, culture

Many of these massive companies in the cannabis space have been built to flip versus being built to last, which has a significant impact on company culture from the top down. By focusing on building a successful business, not simply a canna-business, cannabis companies can focus on cultivating a successful culture that drives the company forward.

For growing companies, that means defining a mission and vision upfront, communicating values and teaching all new hires the company way. When a culture isn’t set, new employees are poorly trained, and as a result, customer service and product quality won’t be up to par. With a coherent company culture that’s focused on doing the right thing, quality control and client services aren’t sacrificed for profit, and companies in the space set themselves up for success.

According to industry veterans, as well as a recent article from MarketWatch, cannabis businesses need an abundance of three things to survive the pandemic: cash, cannabis and sales channels. In a time where even solid industries and businesses are struggling (e.g., Wendy’s running out of beef), cannabis companies that grew too quickly or are overleveraged are quickly learning that no industry is safe from disruption and the basic rules of business apply to everyone — even the new kids on the block.

So, which companies will survive post-pandemic? Thus far, we’re seeing the smaller, privately owned cannabis companies that are built to last, not built to flip, are coming out on top. Because it’s impossible to predict the future, a focus on responsible growth, compliance and culture will help ensure the success of any cannabis business—coronavirus crisis or not.