Episode #1093: In this episode of the Arete Coach Podcast, Dr. Michael Denning, a Vistage Master Chair, Executive Consultant, and Professor Emeritus, discusses the importance of serving to lead, his learnings from the Air Force, and the power of peer groups. Dr. Denning shares advice for aspiring coaches and gives insight from his years of experience as an executive and executive coach. About Michael Denning Dr. Michael Denning is a Vistage Master Chair, Executive Consultant, and Professor Emeritus. Dr. Denning has been with Vistage International for 24 years and serves as a Vistage Master Chair in 4 groups. Through Vistage, Michael has coached over 250 executives in Arizona. Michael also serves as an executive consultant in leadership, turnaround situations, mergers, acquisitions, finances, global marketing, and strategic planning. At Arizona State University, Michael serves as a professor emeritus in the W.P. Carey School of Business with research and teaching interests centered on leadership, marketing, strategy, and entrepreneurship. Furthermore, Michael is also called an “angel investor.” He invests in small businesses that show significant potential in technology fields. In many of these investments, Michael has held positions on boards or as interim President. Michael has held leadership positions such as the Vice President of Marketing at Memorex Corporation and a variety of other roles at IBM. He has also held executive positions such as CEO, COO, and other presidential roles in 12 companies including Mortgages Limited, Learning Edge, and LandTech Environmental. Additionally, Michael was a member of the US Air Force Academy class of 1967 and served in the Southeast Asia area during the Vietnam War. Michael earned his master’s degree from Columbia University and his Doctorate from Capella University in organization and management with a specialization in leadership. Key highlights Serving to lead Timestamp 09:31 When discussing his executive and commercial positions after his time in the military, Mike shares a story about serving to lead. Early in his career, Mike made a mistake on a presentation he made for a manager. However, instead of throwing Mike under the bus, the manager took full responsibility for the mistakes. Mike shares, “that was one of the best lessons, that if you’re going to lead, if you’re going to manage, then you have to serve your people. Not the other way around.” In discussing servant leadership, Mike shares that servant leadership is vital for management and leadership today. Lessons from the Air Force Timestamp 12:12 After Severin asks, “what did you take from your Air Force experience that helps you today?” Mike shares, “you have to survive in order to thrive,” and the importance of “debriefing after every mission.” He explains that the “concept of trying to learn and continuously improve everything that you do in combat, just like in business” was a key learning Mike gained from the Air Force. Severin and Mike have a powerful discussion on the power of continuous learning and improvement. Mike shares that it is important to learn from both successes and failures, as even successes can show us ways to improve. Are your ethics for sale? Timestamp 30:04 In a discussion about the power of peer groups, Mike shares a story of a “member who was presenting an issue” that revolved around them compromising their workplace culture values. When addressing this issue in the group, another member said, “let me get this straight, so your ethics are for sale?” Mike shares that he will “never forget that line as long as [he] lives.” In response, Severin shares a story from his own time in leadership, removing a fraudulent employee from a business. Mike states that these experiences and learnings are “a gift that we need to share.” Mike’s powerful question Timestamp 38:25 One of the powerful questions Mike likes to ask his Vistage members is, “why do your customers buy from you?” He explains that throughout the years of asking this question, he has “yet to get a really clear answer from anybody.” His second favorite question is about the purpose of their business and how they got to their business. Asking this question gives Mike a “great deal of foundation work that [he] can play with later on.” Being open to learning Timestamp 51:09 A powerful lesson that Mike has learned recently that he wishes he would have learned earlier on is that “there are some people you just really can’t teach, they just are not open to learning.” These coaching clients have to “learn the hard way” and “will not take the lessons from others.” He shares that while he wishes he could screen these individuals out before coaching them, he states that “sometimes you don’t realize they are uncoachable “until you’re well into the game. The only way to get rid of them is just simply tell them that you can’t help them.” Mike elaborates on this and states, “I don’t feel that I can help people who can’t help themselves.” Learning to listen Timestamp 58:49 Mike shares a great metaphor when asked what advice he would give to aspiring executive coaches: “listen as a therapist listens… see as an artist sees.” A therapist listens without judgment and an artist sees what can be in opportunities. Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

Episode #1092: In this episode of the Arete Coach Podcast, Chip Webster, a Co-Founder of TEC/Vistage Keepers of the Flame, Mentor, Strategic Consultant, Business Owner, Author, and former long-term Vistage Chair, discusses the impact of peer groups, powerful questions, civic duty, and safeguarding democracy. Chip closes the conversation by providing insight into his own mission: to make a difference in the lives of others, help others realize their dreams, and be an angel to others. About Chip Webster Chip Webster is the Co-Founder of TEC/Vistage Keepers of the Flame, as well as a Mentor, Strategic Consultant, Business Owner, Author, and former long-term Vistage Chair. Chip is a leader in the peer-to-peer learning space with over three decades of experience, providing high-level mentoring, strategic support, and executive guidance to over 100 companies. Prior to his entrance into the executive coaching field, Chip was the President of Consolidated Directories, his own independent phone book company. From 1987 to 2015, Chip was a Vistage Chair leading 4 groups. During this time, he helped take 2 companies public. In 1999, Chip was awarded the Don Cope Award and was later promoted to President of Vistage Florida where he oversaw 45 Vistage Chairs and 75 Vistage groups. In 2005, Chip co-founded an organization called Keepers of the Flame, a nonprofit organization for 10-year experienced Chairs to share their story, their journey, and their wisdom with their peers. Together, they learn about the soul side of being a Vistage Chair with the intention “that the flame be passed from generation to generation.” In 2007, Chip was named one of the 50 most influential people in the first 50 years of Vistage. He also served as President of the TEC Vistage President’s Council for three years. From 2018 to 2020 Chip was the Chair of the Tiger 21 Tampa Bay Group, an exclusive peer membership organization of high net-worth entrepreneurs and investors. Today, Chip is a member of the Board of Directors for Tampa Bay Watch and the Central Florida Urban League. He is also on the board of Hire Velocity, an executive search talent advisory and RPO company. Chip has also published two books, A Passion for Life: Reflections from the Journey and Paint and Poetry an Ekphrastic Journey. Key highlights Chip’s executive coaching journey Timestamp 03:30 Chip Webster has been in the coaching industry for 35 years and shares that he was “backed into it” and that “it wasn’t [his] objective at all.” Before entering the coaching industry, he was President of Consolidate Directories in Georgia. During his time in this industry, encountering mergers, and seeing potential indicators of “running out of money,” he was introduced to TEC. Chip started coaching with TEC (now Vistage in Florida) and built his first peer group in 90 days. Over time, his peer groups grew. Chip shares that in the 70s, he wrote down his “life mission” which was “to make a difference in people’s lives and help them be successful.” After writing this down, he realized coaching was his calling. As one of the 50 most influential people in the first 50 years of Vistage, Chip has seen great growth in the coaching industry and worked with many successful executive coaches and Vistage Chairs. Mentors and learning from others Timestamp 22:37 In order to be the best coach he could be, Chip “spent as much time as [he could]” with high performers in the executive coaching world. He has made friends with many Don Cope Award Winners and explains that without them, he wouldn’t be who he is today. Chip believes that “we become the average of the 10 people we hang out with” and has used that to his advantage. Later in the interview, he states that he has “been the luckiest guy in the world. Every phase of my life, somebody showed up… or opened a door…” “Everybody wants to tell the truth” Timestamp 36:04 When asked what is “something that is powerful that you’ve learned in your life that others might not have learned yet?,” Chip shares that “everybody wants to tell the truth, they just are looking for someone to tell it to.” He explains that the role of a coach is to turn these life stories into something helpful to the individual. Chip states, “people need connection and they need to have real conversations.” “Act now” Timestamp 38:55 In discussing what sayings and mantras Chip has used in his life, Chip shares a poem he wrote titled “Act Now.” His poem discusses the importance of being active and always moving forward. “Act now, when I act the universe provides all I need. When I act doors open, help arrives. When I act, the unknown becomes known.” - Act Now, a poem by Chip Webster Angels for others Timestamp 42:56 Chip’s “why” is his life mission, “making a difference in peoples’ lives and helping them realize their dreams.” His “why” is to also be an angel for others. Chip explains that this is “why we exist and we’re here to learn.” He shares, “that really is a question I asked myself a lot in the early days of my Vistage Journey… Why are we here? Why do we exist? And it’s to be angels for each other.” Mosaic of life Timestamp 51:50 Chip is 76 years old and has continued to coach and add value to the coaching industry. When discussing why he continues coaching, he explains that “if you’re not adding value, you’re taking up space.” Chip sees life as a mosaic, much like Salvador Dali’s portrait of Lincoln. He states, “I believe that at the end as you’re closing your eyes for the last time, the mosaic of your life is done and it’ll be a picture of you and all the little squares or the different people you’ve interacted with… all those different tiles create who you are.” Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

Episode #1091: In this episode of the Arete Coach Podcast, Ben Griffin, an Executive Coach, Board Advisor, and Founder and President of CEOIQ, discusses lifelong learnings that have brought him to be one of the greatest coaches of our day. During the episode, topics discussed include: inflationary times, the risk of unbridled corporate growth, KPIs to manage your business, the unintended consequence of words, other issues relevant to business owners and coaches, and the work of his new book (in writing) Look Through the Leadership Lens. About Ben Griffin Ben Griffin is an Executive Coach, Board Advisor, and the Founder and President of CEOIQ. Prior to entering the executive coaching field, Ben held several executive leadership positions with insurance companies. He also ran some of his own companies and was the President of Quinox Corporation. He earned his MBA from the Crummer Graduate School of Business at Rollins College. In 2000, he started working as a group facilitator and executive coach with an International CEO advisory organization. Today, Ben is the Founder and President of CEOIQ where he has created an ecosystem for CEOs, entrepreneurs, and leadership teams. He serves his clients as an executive coach and an advisor, offering services such as peer advisory groups, strategic thinking workshops, leadership development coaching, executive coaching, and digital leadership labs with a focus on strategic thinking, human capital development, team alignment, management by objectives, and financial diagnostics. Furthermore, he also facilitates CEO round tables with companies as small as 25 employees and as large as 5,000 full-time employees. Ben is also an avid photographer and has even organized and managed his own jazz band. Key highlights When is the end of learning? Timestamp 05:19 When discussing his journey to executive coaching, Severin asks Ben, “when is the end of learning as a coach, do you know?” Ben responds, “when you’ve drawn your last breath.” He explains that the constant learning and growth he has experienced as a coach is “the one thing… that has constantly kept” him “engaged and coming back.” Working with business leaders in a variety of industries has been a constant source of “learning what those businesses were about, learning the financial models, and understanding the dynamics” of each industry. Moving from CEO to executive coach Timestamp 12:59 Severin asks Ben about his transition from being a CEO to a “servant of CEOs.” Ben explains that this was a “huge transition” and that becoming an executive coach was “the universe teaching me that I don’t really own or control anything in life.” Along with this learning, Ben shares that he also learned the consequence of his words when he was an executive. He shares a story about an “offhanded” suggestion he made that was taken literally when helping turn around a company. However, in coaching, Ben learned that “you can’t have that impact by telling people what to do. You have that impact by leading them through an exploration themselves. It’s more about the questions than the answers.” Ben’s advice for moving through economic hardship Timestamp 20:11 After sharing an experience Ben had leading a company through a season of economic difficulty, Severin asks “what did you do then and what would you advise now” in terms of layoffs and seasons of economic hardship. Ben shares two valuable lessons: “you’ve got to move quickly” and “you’ve gotta stay focused on the fact that if you’re gonna survive, it’s the jobs you’re saving, not the jobs you’re eliminating.” Ben’s “CCIR” Mantra Timestamp 33:13 Ben’s life mantra is “CCIR” which stands for staying “current, connected, involved, and relevant.” He explains that “as long as I’m truing up to that, then I’m being of service to the people that I work with.” As a coach, Ben works to stay current with the challenges faced by his clients and uses this gained knowledge to help stay connected, involved, and relevant to them. Ben’s Powerful Questions Timestamp 49:11 While Ben doesn’t focus on a specific question to ask in his coaching, he does use a “series of continuing questions” as a tool for “exploration.” Before coaching, he will ask his clients to write down what he calls his “arete diagnostic” questions: “what are your expectations? What do you want out of this? What will value look like to you coming out of this?” Doing this helps Ben coach with “no agenda,” “no preconceived syllabus, or outline, or program” because he believes that coaching “needs to go where [his clients] need it to go” which is “different for everybody.” However, from time to time, Ben will use a series of questions inspired by Deepak Chopra: “What is it that you really want to be and do? What are you really doing well that is helping you get there? What are you not doing that’s preventing you from getting there? What will you do differently tomorrow to meet your challenges? How can I help?” Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

Interested in becoming an executive coach, but not sure where to begin? If so, join us as we walk down the path of becoming an executive coach. For those who are currently executive coaches, reviewing the path to executive coaching can help you mentor others on their journey to becoming a thriving executive coach. Step 1: Understand what coaching is The first step to becoming an executive coach is understanding what an executive coach is. By having a clear understanding of what executive coaching is, you can ensure that you are investing your time and energy into your desired career. “An intelligent person is never afraid or ashamed to find errors in his understanding of things.” - Bryant H. McGill Executive coaching is active listening Executive coaches must be skilled active listeners. The ICF’s 6th core competency is active listening. They state that executive coaches focus on “what the client is and is not saying to fully understand what is being communicated in the context of the client systems and to support client self-expression.” Active listening considers a “client’s context, identity, environment, experiences, values, and beliefs to enhance understanding,” summarizes what is said, recognizes when there is “more to what the client is communicating,” “notices, acknowledges and explores the client’s emotions, energy shifts, non-verbal cues,” uses the client’s non-verbal and verbal language, and “notices trends in the client’s behaviors and emotions across sessions” (ICF, n.d.). Active listening is a skill built and used by executive coaches during each session. Vistage Chair and executive coach Robin Stanaland explains “unless you are truly curious and can be an active listener, being a coach will be hard for you. You need to ask questions to hear the answer, not to come up with the next best question or a solution, but instead to really listen” (2021). Active listening acknowledges the power of silence and questions. Executive coaching clarifies goals Executive coaches ask questions and help their clients clarify their goals, challenges, and skills. They help CEOs and business leaders “visualize,” “set goals for the future,” and clarify “strengths and areas for growth” (Stanaland, 2021). Executive coaches help their clients set goals and develop strategic plans to achieve these goals (TheExecutiveCoachingForum, 2015). They do this by asking powerful questions and helping clients “uncover underlying thoughts, emotions, and energy” (iPEC, n.d.). “We must see people in terms of their future potential, not past performance.” - Sir John Whitmore Executive coaching facilitates growth By identifying goals and strategies to achieve these goals, executive coaches facilitate the growth of their clients. A coach's ability to facilitate growth is the 8th core competency of coaching according to the ICF. They state that executive coaches partner with their clients “to transform learning and insight into action” (ICF, n.d.). Executive coaches hold their clients “accountable” for their progress towards their goals (Stanaland, 2021). Growth and skill development is a key return on investment that CEOs and business leaders receive from executive coaches (Philips & Philips, 2005). Executive coaching is asking questions An important characteristic of executive coaching is staying curious and asking questions. Asking questions provokes thought and creates new understandings in the lives of CEOs and business leaders that receive executive coaching. Executive coaching is for executives and their organizations The Executive Coaching Forum’s handbook for executive coaching defines executive coaching as, “a process to benefit the leader and his/her organization. Working with goals defined by both the leader and the organization…” (2015). Executive coaching focuses on executives, their goals, their skills, and the effect that they have on the organizations they lead. Executive coaching accounts for the impact an executive has on the organization as well as the impact the organization has on the executive. Step 2: Understand what executive coaching is NOT Those new to executive coaching will confuse counseling, consulting, advice-giving, and other helping careers with executive coaching. Because of this, it is important to understand what executive coaching is not before investing time, money, and energy into becoming an executive coach. “The ability to ask questions is the greatest resource in learning the truth.” - Carl Jung Executive coaching is NOT giving advice Executive coaches are not advice-givers. Instead, they ask questions out of curiosity and previous insight. Executive coaches see their clients as “experts in their own lives and businesses.” Because of this perspective, they don’t advise a client on what decisions to make and instead facilitate their “client’s discovery of their own answers” (Germond, 2021). Executive coaching is NOT counseling Executive coaches are not counselors. Counselors focus on mental health, trauma, and previous experiences. Executive coaches are forward-focused. They focus on their clients’ current and desired skill sets, not their past trauma or experiences. Counselors focus primarily on “lifestyle issues” while executive coaches focus primarily on “organizational and workplace issues” (Collier, 2020). Furthermore, executive coaches do not have the training to lead clients through complex mental health challenges and are encouraged to make references to mental health professionals as needed. “A coach has some great questions for your answers. A mentor has some great answers for your questions.” - Unknown Executive coaching is NOT mentoring Executive coaches are not mentors. Mentors provide advice and counsel to those in the same career field with less experience than themselves. Executive coaches do not need experience in the same field as those they coach. Instead, they use their expertise in coaching methods and acknowledgment of their clients’ expertise to bring out the best in those they coach (ArdenCoaching, 2018). Executive coaching is NOT instant income When starting down the path to executive coaching, it is important to understand that executive coaching is not a form of instant income. It takes time to build a client base and establish your coaching practice. This is also true for those who join coaching groups such as Vistage. It takes time to build a consistent income from executive coaching. Because of this, it is important that aspiring executive coaches embrace an entrepreneurial spirit and prepare themselves financially for the time needed to grow their coaching business (Stanaland, 2021). “Live your message: practice what you preach. That’s where credibility comes from.” - John C. Maxwell Step 3: Experience coaching If you are interested in being an executive coach but have never experienced executive coaching, having your own executive coach can give you a first-hand experience of what it is like to receive executive coaching. It also allows you to see what executive coaches do up close and personally. Having your own executive coach can also help you continue your journey towards being an executive coach. They can help you establish your goals and hold you accountable for accomplishing your goals. In Episode #1047 of the Arete Coach Podcast, Jill Douka discusses the importance of even the most seasoned executive coaches having their own coach. Adam Harris in Episode #1008 of the Arete Coach Podcast states that “the first thing” aspiring executive coaches should do is get their “own coach” because it will “challenge” their mindset and “thought processes.” “The main purpose of education isn't just to receive a certification that leads to a career, but to become a well-rounded person in so many aspects of life.” - Edmond Mbiaka Step 4: Develop your knowledge and skills While there are no specific certifications or experience required to be an executive coach, it is important for those entering the executive coaching industry to develop the knowledge and skills necessary for coaching their future clients. Certification and training Certification and training are a great way to lay a “strong foundation” for “long-term success” in your executive coaching career (Hudson, 2019). By investing in certification and training, you can develop the “skills, tools and techniques” necessary for coaching success. Furthermore, by investing in training and certifications, you establish your reputation and legitimacy. This can help your services stand out from your fellow coaches (Hudson, 2019). “Learn continually. There’s always one more thing to learn.” - Steve Jobs However, what’s most important is getting high-quality training and certifications. There are three core executive coaching organizations, the ICF, EMCC, and CEE, that each have varying requirements. Skill development Executive coaching requires a variety of skills such as communication, leadership, active listening, and mindfulness. It is important for future executive coaches to examine what skills they have and what skills they should invest more time in developing. For example, if communication is not a strong suit of an aspiring executive coach, they can take training courses specific to communication or work with their own coach on developing these skills. “Curiosity is the wick in the candle of learning.” - William Arthur Ward Step 5: Adopt the stance of a life-long learner Learning never ceases for the high-impact executive coach. Skillful and successful executive coaches adopt the stance of a life-long learner. They stay on top of current economic and business trends that can potentially impact their clients. The best executive coaches keep their ear to the ground for new research and insight that might help those they coach. They continually learn new coaching methods and techniques from their peers and other business professionals. Advanced executive coaches invest in “continuous learning and development” by researching their “own effectiveness as a coach,” teaching and coaching others, accepting feedback and “consultation” from coaching peers, and by helping other executive coaches (TheExecutiveCoachingForum, 2015). “None of us is as smart as all of us.” - Ken Blanchard Step 6: Find your tribe There is a famous African proverb that states “if you want to get somewhere fast, go alone. If you want to go the distance, take a team.” This saying is especially true for those wishing to start a career as an executive coach. By finding a tribe or a group of peers to connect with and learn from, new executive coaches gain access to a wealth of information, knowledge, and insight from those with different backgrounds, experiences, and perspectives. By connecting with your local executive coaching groups, networking with other executive coaches, or listening to executive coaching insights such as the Arete Coach Podcast, newly developing executive coaches can speed the growth of their coaching practice and further develop their coaching skills. Main takeaway Although there are no legal requirements to complete before starting a career as an executive coach, the best executive coaches take intentional steps towards growth, knowledge, learning, and the development of their coaching skills. By learning more about the executive coaching industry, experiencing coaching themselves, gaining the necessary skills and certifications, adopting the stance of a lifelong learner, and joining the executive coaching community, aspiring executive coaches will have the potential to enter a fulfilling and high-impact career. References ArdenCoaching. (2018, July 18). Four Things an Executive Coach is NOT. Arden Executive Coaching. https://ardencoaching.com/four-things-an-executive-coach-is-not/#:%7E:text=An%20Executive%20Coach%20is%20NOT%20a%20Mentor.,Mentors%20provide%20advice%20and%20counsel. Coacharya. (n.d.). Coaching Organizations. https://coacharya.com/coaching-paths-organizations/. Collier, C. (2020, October 15). What’s the Difference Between Executive Coaching and Therapy? - Dr. Cherry A. Collier. Dr. Cherry Coaching. https://drcherrycoaching.com/whats-the-difference-between-executive-coaching-and-therapy/. Germond, G. (2021, January 29). Why Giving Advice Rarely Works — And What Great Coaches Do Instead. iPECCoaching. https://www.ipeccoaching.com/blog/why-giving-advice-rarely-works-and-what-great-coaches-do-instead. Hudson, F. (2019, February 15). How to Become an Executive Coach: The Why and How of Professional Certification. iPECCoaching. https://www.ipeccoaching.com/blog/how-to-become-an-executive-coach-the-why-and-how-of-professional-certification. ICF. (n.d.). The Gold Standard in Coaching | ICF - Core Competencies. International Coaching Federation. https://coachingfederation.org/core-competencies iPEC. (n.d.). What is Executive Coaching. iPECCoaching. https://www.ipeccoaching.com/what-is-executive-coaching. Philips, J., & Philips, P. (2005). Measuring ROI in Executive Coaching. International Journal of Coaching in Organizations, 1, 53–62. Stanaland, R. (2021, October 1). Become an Executive Coach With This 8-Point Checklist | Vistage. Vistage Research Center. https://www.vistage.com/research-center/personal-development/leadership-competencies/20200624-become-an-executive-coach/. TheExecutiveCoachingForum. (2015). Executive Coaching Handbook 6th Edition October 2015 (6th ed.). Copyright © 2022 by Arete Coach LLC. All rights reserved.

As inflation continues to be a leading challenge for both businesses and consumers, customer delight has become a powerful way for businesses to counteract the reduced purchasing power and changing spending habits of customers. When inflation goes up, customer satisfaction goes down In September of 2022, “79% of Americans are dissatisfied with the way things are going” in the USA. Second only to government policies, inflation was said to be the “top issue” facing Americans (Gallup, 2022). “Inflation has, at a minimum, altered the economic mood, and potentially reset the path of global and national economies worldwide for years to come” (McKinsey & Co, 2022). Research from Duke Univesity indicates that people get less “purchase happiness” after buying things when “they feel financial stress”(ScienceDaily News, 2022). What used to delight your customers before inflation, won’t be as effective during seasons of financial stress. “Households are feeling the impact of the Fed’s actions on their monthly expenses as higher interest rates raise the cost of carrying credit card balances, borrowing to buy a house or financing the purchase of a car…Amid lower confidence brought on by pernicious inflation and rising interest rates, consumers have become cautious – but they have not stopped spending” (National Retail Federation, 2022). Why focus on customer delight? There were “more US consumers reporting that they switched brands and retailers in 2022 than at any time since the pandemic began. And most of them say they intend to keep switching, with price at the top of the list of consumer motivations” (McKinsey & Co, 2022). “In today’s environment, consumers are becoming less brand-loyal and turning to private-brand goods to cope with inflation” (McKinsey & Co, 2022). Customers are no longer purchasing goods just because of branding. Businesses now need to entice their former customers via customer delight to continue buying their goods and services. “The quality of customer experience offered by consumer-facing brands and government agencies declined in the year through April 2022… Consumers who might have been more forgiving earlier in the pandemic are also likely running out of patience” (Wallstreet Journal, 2022). By investing in customer delight, businesses can win over the customers of competitors who are providing poor customer experience. “80% of customers said they have switched brands because of poor customer experience.”43% of customers changed brands after a single bad experience (Qualtrics, 2021). “26% of consumers stopped using or buying from a business in the past year” (PwC, 2022). 82% of customers “would share some type of personal data for a better customer experience” (PwC, 2022). “Consumers as a whole are more discerning than ever” (PwC, 2022). “More than half of respondents said getting good value for the price of a product or service is a top reason why they keep using or buying from a business… 30% said they like the benefits, rewards and privileges — discounts, rebates, and special access or offers ” (PwC, 2022). “One-third of respondents said human interaction is important to their loyalty, and for many types of businesses it was more than 50%” (PwC, 2022). “15% say they’re now less loyal to brands they regularly bought from before COVID-19” (PwC, 2022). How to develop customer delight Be consumer-led “First develop brands with high awareness, advocacy, and stand-alone loyalty by adopting consumer-led brand strategies and category-management and design capabilities that consumer packaged goods companies are known for” (McKinsey & Co, 2022). “Recognize the rise of emotional loyalty.” The more you understand your customers’ experience and feelings as they interact with your business, the more you can engage with them and the “more likely they’ll continue engaging with your business”(PwC, 2022). Consider how personalized your customer experience is. Balance “physical and digital customer engagement”. Both are important to today’s consumers (PwC, 2022). “Prioritize efforts to better understand younger and more racial and economically diverse groups” (PwC, 2022). Conduct price changes with precision, not broad sweeps “Instead of implementing broad price increases that may erode customer trust, retailers can tailor their inflationary price response by customer and product segment, considering both margin performance and consumers’ willingness to pay… Retailers that take a surgical approach are more likely to emerge with profitability and consumer relationships intact. Further, retailers can re-evaluate their price and promotion mix during this time; pulling back on promotions can help manage cost increases without raising prices” (McKinsey & Co, 2022). Examine your customer journey What areas do your customers care about the most? Where and when do they interact with your company and products? How can this experience be made better (McKinsey & Co, 2014)? Consider subscriptions 55% of consumers “belong to at least one type of subscription service that allows them to make regular payments for access to a product or service. Benefits of subscriptions also factor in customer loyalty, as discounts, lower prices, faster and/or easier service and automatic renewals were what survey respondents liked most about the services” (PwC, 2022). Acknowledge the impact of inflation How can you make your product more affordable for your customer base? If not possible, how can you increase the value they get from your product or service at it’s current price? Loyalty and reward programs “Assess how rigid your loyalty programs are and reconsider the selection of benefits, including expanding beyond points and discounts to experiential loyalty” (PwC, 2022). Examine your mobile presence What apps, videos, social media, and newsletters from your company and competitors are your customers interacting with? “More than half of consumers check prices on mobile phones and are influenced by what they discover on the web”(McKinsey & Co, 2015). “One-quarter of consumers sign up for loyalty programs cellphones” (McKinsey & Co, 2015). The National Retail Federation predicts that non-store and online sales will grow between 11% and 13% in 2022 (Reuters, 2022). How are leaders investing in customer delight New subscription services to meet consumer needs In response to inflation and a loss of subscribers, Netflix is adding a more affordable streaming service with ads. “We’ve left a big customer segment off the table, which is people who say, ‘Hey, Netflix is too expensive for me and I don’t mind advertising,’” Sarandos said. “We’re adding an ad-tier. We’re not adding ads to Netflix as you know it today (TIME, 2022). Personalized reward and loyalty programs Bed, Bath and Beyond has introduced a rewards program called “Welcome Rewards” and “Welcome Rewards+” to “bring valuable savings, more benefits, and special perks to customers who shop online and in stores nationwide at Bed Bath & Beyond®, buybuy BABY®, and Harmon®.” Welcome Rewards are available to all customers and Welcome Rewards+ requires an annual fee, but with additional perks and benefits for interested customers (PR Newswire, 2022). Creating new ways to help consumers save Apple is planing on introducing a “new high-yield savings account from Goldman Sachs” to their Apple Card users. They share that “Apple Card users will be able to grow their rewards in Apple Wallet by automatically depositing their Daily Cash.” Apple’s VP, Jennifer Bailey, states that this program will allow “users to grow their Daily Cash rewards over time, while also saving for the future” (Apple Newsroom, 2022). Investing in online programs and customer convenience During the COVID-19 pandemic, Discount Tire “launched a new brand message…of providing the best end-to-end customer experience.” Starting in June of 2021, Discount Tire started their Buy and Book online program advertising a “30% shorter average wait time” for customers. The Assistant VP of Marketing at Discount Tire, Lisa Pedersen, shared, "We know how important convenience and time are for the overall shopping experience, and we're here to accommodate… The 'Buy and Book Online' experience is key to ensuring that we provide the most inviting, easy and safe tire and wheel purchase and service experience around" (PR Newswire, 2021). Improving the digital and physical customer experience In 2020, Zara introduced an in-store mode to “make shopping easier, safer, and more sustainable.” This feature gave customers the “option to shop available inventory from the store closest to their location with pickup ready in just 30 minutes.” In-store customers can also use the app to find the location of products they viewed online and even reserve fitting rooms (McMillan Doolittle, 2021). The main takeaway With the current rate of inflation and economic hardships faced by customers, consumer loyalty on the basis of brand and habit alone is no longer feasible. Business leaders can retain customers and gain those lost by competitors by investing in customer delight. Businesses can do this in a variety of ways such as new rewards programs, improved online interfaces and programs, more personalized customer service and experiences, and consumer-led marketing and product innovation. References https://news.gallup.com/poll/401969/satisfaction-shows-modest-improvement.aspx. https://www.sciencedaily.com/releases/2022/02/220228095500.htm#:~:text=Whether%20they're%20getting%20a,financial%20stress%2C%20new%20research%20shows. https://www.mckinsey.com/featured-insights/inflation/how-inflation-is-flipping-the-economic-script. https://nrf.com/research/monthly-economic-review-october-2022. https://www.mckinsey.com/industries/retail/our-insights/navigating-inflation-in-retail-six-actions-for-retailers. https://www.wsj.com/articles/customer-experience-is-getting-worse-11654639388. https://www.qualtrics.com/blog/qualtrics-servicenow-customer-service-research/#:~:text=New%20research%20from%20Qualtrics%20and,single%20negative%20customer%20service%20interaction. https://tethr.com/customer-loyalty-in-recession/. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/for-customer-loyalty-only-the-best-will-do. https://www.pwc.com/us/en/services/consulting/business-transformation/library/customer-loyalty-survey.html. https://www.reuters.com/world/us/us-consumers-spend-record-1-trillion-online-2022-report-2022-03-15/. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/mobile-fortifies-customer-loyalty. https://www.prnewswire.com/news-releases/bed-bath--beyond-inc-introduces-welcome-rewards-301573990.html. https://time.com/6175837/netflix-ads-coming/. https://www.apple.com/newsroom/2022/10/apple-card-will-let-users-grow-daily-cash-rewards-while-saving-for-the-future/. https://www.prnewswire.com/news-releases/new-campaign-from-discount-tire-tells-customers-get-30-shorter-average-wait-time-when-you-buy-and-book-online-301312593.html. https://www.mcmillandoolittle.com/zaras-in-store-mode-pilot-offers-win-win-for-the-retailer-and-pandemic-era-shoppers/. Copyright © 2022 by Arete Coach LLC. All rights reserved.

Episode #1090: In this episode of the Arete Coach Podcast, Severin Sorensen, Host and Curator of the Arete Coach Podcast, takes us through the life, legacy, and contributions of the late Professor Anthony (Tony) Grant Ph.D., the father of evidence-based coaching. The episode explores Professor Grant's life contributions and a new article written by Severin Sorensen, M.Phil., and Nathalie Lerotic Pavlik, MSc, MBPsS, "Towards Evidence-Based Coaching Practice: Taking Out the Sham, and Putting in the Wham – Honoring the Life, Legacy, and Research of Professor Anthony Grant, Ph.D." During the episode, Severin reviews Dr. Grant’s research and explores themes like when is coaching best practice actually bad practice? and how can coaching research inform coaching practice? About Severin Sorensen Severin Sorensen is a serial entrepreneur and lifetime learner with a passionate curiosity for people and businesses. Severin is the CEO of ePraxis LLC, a premier level retained search firm that provides executive headhunting, talent selection, and executive coaching. In addition to finding top talent, Severin has provided over 7,500+ hours of paid executive coaching to entrepreneurs, CEOs, Presidents, and C-level executives. Severin is an ICF ACSTH Certified Executive Coach, Certified Organizational Development Coach, Certified Life Coach, and Certified Positive Intelligence® Coach. Severin is the founder/producer of a new podcast, Arete Coach, that explores the art and science of executive coaching with some of the industry's best coaches. From 2010-2018 Severin was also a Vistage Chair where he coached three CEO and key executive groups. In 2011, Severin received the "Rookie of the Year Chair Award" from Vistage. Since 2013, Severin has added international speaking for Vistage, CEO conferences, executive peer groups, and corporations on the topic of identifying and hiring difference-making top talent. After graduate school, Severin moved to Washington, DC, where he worked on security-related economic and public policy issues that included a brief stint in The White House, as a Special Assistant to the President, for George H. Bush (POTUS 41). In 1994, Severin founded Sparta Consulting Corp., and Sparta provided world-class physical security and safety related management consulting services for public and private sector entities. From 1994-2002, Severin managed HUD's Crime Prevention Through Environmental Design technical assistance and training program. In 2005, Severin sold Sparta to Westec Interactive (Digital Witness), which was subsequently acquired by Interface Security. Severin, a native Californian, grew up in Salt Lake City, UT and graduated with honors from the University of Utah with Economics and Political Science degrees. He completed graduate studies in economics at King's College, Cambridge University (England), where he earned a M.Phil. degree in Economics. Severin has a great love and appreciation for sports, and while overseas, Severin rowed for the King's College Boat Club, and played basketball for the Cambridge University Basketball Team (1986-87). Key highlights Memoriam of Professor Anthony (Tony) Grant Timestamp 10:16 Severin Sorensen shares a memoriam of Professor Anthony Grant, his life, and his journey to coaching research. Before his great success in the coaching profession, Professor Grant left school at 15 years old as a carpenter and guitarist. At the age of 38, Professor Grant enrolled at the University of Sydney. He graduated first in his class and received a variety of awards upon graduation. In 1999, he created the world’s first coaching psychology unit at the University of Sydney with his colleague Michael Cavanagh. Throughout his career, Professor Grant displayed a great passion for helping people and supporting the development of evidence-based coaching. Today, Professor Grant is considered to be the father of evidence-based coaching. Evidence-based coaching research contributions Timestamp 14:18 In this section of the podcast, Severin reviews evidence-based coaching contributions from Processor Grant’s research. His contributions include insights on the value and benefits of coaching, coaching’s effects on engagement levels, coaching with students, and coaching’s effects on goal attainment. Professor Grant was also passionate about setting the standard for coaching research and identifying what studies were “valid, reliable, and relevant.” Solution and goal-focused coaching Timestamp 28:20 Much of Professor Grant’s research was focused on solution and goal-focused coaching. Severin reviews his research which examines the effectiveness of solution-focused coaching when compared to self-insight approaches. Severin also reviews Professor Grant’s research on the mechanisms behind solution-focused coaching and how to implement solution-focused principles into coaching. Methodology insights Timestamp 37:20 Professor Grant’s research also brought insights into a variety of methodologies within coaching. His research supported the concept of note-taking in coaching, the power of difficult conversations, and insight on self-coaching concepts. Severin reviews a variety of Professor Grant’s research on the coaching methodologies that are supported by Professor Grant’s research. Positive psychology and coaching Timestamp 42:51 Another passion of Professor Grant’s was the connection between positive psychology and coaching. Severin reviews his research insights that connect the benefits of positive psychology to coaching. Professor Grant’s research connects the benefits of coaching with positive psychology insights to well-being and the workplace. Download the research paper Click below to download the research paper mentioned above: Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

In light of today’s economic turbulence, business leaders are wondering: what can we learn from past periods of economic downturn that may help us today? Continue reading to find out. “The past can hurt. But the way I see it, you can either run from it, or learn from it.” - Walt Disney COVID-19 Pandemic Induced Recession, 2020 The COVID-19 Recession (sometimes referred to as the Great Lockdown) was a global economic recession caused by the COVID-19 Pandemic. The recession began in most countries in February-March 2020. As a 100-year plague type event, the global economy itself was generally in good shape when this external threat impacted the market. The rapid closure of markets and movement of people and goods stunted the economy and caused a rapid drop in economic activity. In the US, the underlying economy was generally healthy, so it was not the usual circmstances for a recession or central bank intervention. When it became evident that COVID-19 would become a world-wide pandemic, the US economy was shut down due to this 100-year plague. At that time, the Federal Reserve Bank intervened again, stimulating the economy, providing ‘helicopter’ money to rescue industries, businesses, and consumers from the consequence of the sudden stop in forward movement of the economy. In hindsight, the targeted action by the Federal Reserve and Government to put money into the hands of consumers, protect key industries, and launch the PPP program is seen as the vital immediate infusion of capital that helped consumers, small businesses, and impacted industries stay afloat until the economy turned around. Since the underlying economy was healthy prior to the crisis, this recession lasted only a few months, and the economy rebounded. In hindsight, in its response to the COVID-19 pandemic, the Federal Government implemented more quantitative easing, lowering borrowing rates, using the tools honed during the Great Recession of 2007-2009 saying that they “would keep rates near zero” until they were “confident that the economy” had weathered COVID-19 and was back “on track to achieve its maximum employment and price stability goals” (Milstein and Wessel, 2021). According to the Federal Reserve Bank of Richmond, at the start of the COVID-19 pandemic, there was also an increase in C&I or “loans to business enterprises”. However, unlike the Great Recession, this trend did not continue in other sectors such as consumer loans. (Ennis & Jarque, 2021). Unfortunately, as we were coming out of this short-lived recession, the Federal Reserve and the Government kept adding new money, assistance, and programs to the economy ‘over juicing’ the economy leading to rampant speculation and ultimately seeding the economy crisis of today. The Federal Reserve Bank continued purchasing Mortgage Backed Securities through February 2022, and this artificially kept housing mortgage rates low, fueling rampant inflation, housing price increases, and speculation. When the history books are written, they will observe that the Federal Reserve kept historically low interest rates in place providing excess capital long after the economy had turned around, causing speculation to rise, and fueling employment demand well beyond healthy levels, causing unemployment to drop to 3.5%, well below what economists view as typical ‘full employment levels’ of 4%. This caused decreases in productivity and wage inflation as companies could no longer find talent to hire, and began to steal-away employees using greater compensation as a luring factor. The low interest rates and widely available liquidity also spurred inflationary pressures on assets such as residential housing (largely viewed as a hedge against inflation), where some homeowners saw 40% increases in value in only a few years. This rapid rise in price appreciation fueled additional speculation in the housing market causing prices to rise. The recent economic expansion, speculation, and asset bubbles are unwinding now, and may result in a recession within the next 12 months. What follows in this article are historical narratives of three prior recessions and the government’s responses to turning them around, as well as insight that may help business owners and consumers understand the actions that might be taken next. The Great Recession, 2007-2009 The Great Recession occurred immediately after the decade-long expansion in US housing market activity that peaked in 2006, when residential construction began declining. From December 2007 to June 2009, the US housing market collapsed due to over speculation and housing purchases that were stimulated by low interest rates, access to easy credit (with such instruments such as ‘no-doc loans’ and, in some cases, highly predatory lending practices), insufficient regulation of the financial industry and the creation of highly complex and leveraged financial instruments, and toxic subprime mortgages. The terms Mortgage Backed Securities (MBO) and Collateralized Debt Obligations (CDO) amplified speculation, increased leverage, and risk taking in this era. These practices led to high unemployment and the collapse of the housing market as a result. In 2007, losses on mortgage-related financial assets began to cause strains in global financial markets, and in December 2007, the US economy entered a recession. That year several large financial firms experienced financial distress, and many financial markets experienced significant turbulence. In response, the Federal Reserve provided liquidity and support through a range of programs motivated by a desire to improve the functioning of financial markets and institutions, and thereby limit the harm to the US economy. The Federal Reserve Bank also intervened in ways seldom seen such as over-the-weekend forced ‘marriages’ of weak banks to stronger banks, large transfer of risks, Federal Reserve-led infusions of capital, and direct market manipulations to curb rampant speculation and periodically stun or kill-off those shorting the market. In the fall of 2008, the economic contraction worsened, ultimately becoming deep enough and protracted enough to acquire the label “The Great Recession." Causes Low interest rates, speculation, failure of government to regulate the financial industry, specifically in terms of mortgage lending. Consumers, lenders, and financial firms took on too much risk via shadow banking systems and credit loaning. Consumers, corporations, and lawmakers participated in “excessive borrowing” which increased housing prices and created “asset bubbles” (Investopedia, 2022). Fligstein and Goldstein (Princeton, 2014) researched and wrote a valuable research paper on the history of this period where banks created and purchased risky mortgage-backed securities (MBOs) and collateralized debt obligations (CDOs), that allowed easy access to capital for residential borrowers, and also allowed extreme leverage to be applied by banks. Similarities between today and The Great Recession During The Great Recession, the Federal Reserve lowered interest rates “to the lowest levels seen up to that time… to maintain economic stability” (Investopedia, 2022), and these low rates, along with loose lending practices and regulations allowed rampant speculation. Thankfully, today, the banking industry is much healthier and stronger, with guard rails, regulation, and capitalization that make a banking crisis much less likely today from Mortgage Backed Securities. However, what should not be lost, is that the economy coming out of the great recession was weak, and the Federal Reserve bolstered liquidity in the market through a process called Quantitative Easing (QE), making liquidity availability in the market—otherwise seen as creating the environment for approximate 2% GDP growth rate being achieved on an annual basis for about 8 years following The Great Recession. What can we learn from The Great Recession? From the Federal Reserve Bank of St. Louis “High levels of debt, uncertain ability of borrowers to repay debt and an expectation that housing prices will always increase (among other factors) created a comfort level that was misguided.” “Risk needs to be understood across all parts of the financial system” “Choices made in the short-run may have long-run consequences that need to be carefully considered.” (2011) From “Winning in Turbulence” 2009, by Darrel Rigby The clarity in the future and current areas of income for your business is essential Strengthen your business internally for external challenges Simplify your processes Know your cash flow Focus on sales Price with long-term in mind To learn more: Arete Coach Review: “Winning In Turbulence” by Darrell Rigby From Harvard Business Review Businesses that survived the Great Recession mastered “the delicate balance between cutting costs to survive today and investing to grow tomorrow do well after a recession.” They played the long game while also acknowledging current cash flow and decisions that could be made to protect the future of the business. “The CEOs of pragmatic companies recognize that cost cutting is necessary to survive a recession, that investment is equally essential to spur growth, and that they must manage both at the same time if their companies are to emerge as post recession leaders” Summary The Great Recession was a result of poor lending practices, increased debt, and poor mortgage lending practices. Businesses that thrived during these times played the long game while acknowledging current strategies they can take to protect their cash flow. It is vital to understand and acknowledge areas of risk in all aspects of a business. Short-term decisions have long-term consequences. Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning. - Albert Einstein Dotcom Bubble, 2001-2002 Causes The Dotcom bubble was a result of “speculative or fad-based investing” in “internet-based companies during the bull market in the late 1990s,” an “abundance of venture capital funding for startups,” and “the failure of dotcoms to turn a profit.” Investors invested greatly in internet-based businesses in the hopes of gaining profit as internet use grew. In 2001, “the bubble ultimately burst, leaving many investors facing steep losses and several internet companies going bust” (Hayes, 2019). Similarities between today and the Dotcom Bubble Similar to the increased interest in internet-based businesses, there was an increased amount of interest in housing speculation, stock market speculation, and alternate asset speculation including cryptocurrency during the COVID-19 pandemic. Research from 2021 indicates that “the COVID-19 pandemic encourages investing in digital currencies such as Bitcoin” (Béjaoui et al., 2021). However, like the Dotcom bubble, investment in cryptocurrency according to JP Morgan is “highly speculative” and appears to be in a distinct downturn in the post-pandemic economy as seen in the corresponding chart from NASDAQ. It is likely that the technologies underlying the cryptocurrency revolution (such as blockchain, digital currency, etc.) will remain, though who the actors will be that remain is a question. What can we learn from the Dotcom Bubble? From USA Today Many of the internet-based businesses in the Dotcom Bubble, “spent fast and relied on a single source of revenue” such as advertising. Businesses like DrKoop.com, which spent fast and failed to diversify their income, did not survive the Dotcom boom. However, businesses with diverse income bases like WebMD Health Corp, are still thriving today. Other businesses were made obsolete by innovation. For example, Palm and Kodak were both negatively impacted by other businesses' innovation of the smartphone. From Corporate Finance Institute Many startups failed to “adopt viable business models, such as cash flow generation.” “Investment in new start-ups and similar tech companies should only be considered after carrying out proper due diligence” including an analysis of “long-term potential” and “sound business models.” Do not invest in “expectations.” From the Journal of E-Business “Many companies failed in defining their market scope.” The “first mover advantage” is not a guarantee of success. It is essential to continue to “develop the right strategic resources,” “leverage the mass market opportunities,” “commit the necessary financial resources as the market evolves,” and a variety of other business strategies. “Low prices aren’t enough” to beat the competition. Alliances with other businesses can be a useful tool for business success. It is vital to have a clear brand to communicate to customers. Invest in the customer relationship. Summary Businesses that withstood the Dotcom bubble had diversified streams of income. Strategy is a greater tool than prediction. Low prices do not guarantee success. Branding and customer relations are key to success. “The only real mistake is the one from which we learn nothing.” - Henry Ford Oil Embargo Recession 1973-1975 Causes During the 1973 Arab-Israeli War, “Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an embargo against the United States in retaliation for the U.S. decisions to re-supply the Israeli military and to gain leverage in the post-war peace negotiations.” This embargo strained the U.S. economy, as it had grown “increasingly dependent on foreign oil.” Ultimately, the price of oil per barrel quadrupled, “imposing skyrocketing costs on consumers and structural challenges to the stability of whole national economies” coinciding with inflation, the “devaluation of the dollar”(History.state.gov). Similarities between today and the Oil Embargo Recession Just like the Arab-Israeli War’s influence on the oil prices in the U.S., the Ukraine-Russia war has led to significant increases in the cost of gasoline and diesel prices in the U.S., as the U.S. banned Russian crude oil imports on March 8th, 2022. The COVID-19 pandemic also affected gasoline prices in combination with the Ukraine-Russia war (Statista, 2022). According to the Federal Reserve Bank of San Francisco (2007), “oil price increases are generally thought to increase inflation and reduce economic growth.” This is because “oil prices directly affect the prices of goods made with petroleum products” and “indirectly affect costs such as transportation, manufacturing, and heating.” The government tried many unsuccessful measures to curb inflation including the popular “Whip Inflation Now” program that failed to curb inflation. Central bankers and governments also sought to curb inflation through wage, price, and rent controls, and that were punishing to property owners and businesses during this era. What can we learn from the Oil Embargo Recession? All businesses function in a global marketplace and do not go unaffected by external and/or international challenges and changes. The price of oil can be used as a signal or warning sign of inflation. The price of oil influences a variety of products, goods, and services both directly and indirectly. Central bankers and governments can be expected to intervene in markets to curb inflation, and sometimes these interventions have their own undesirable and unintended consequences. Summary Business leaders should acknowledge external events such as war, oil prices, international conflict, and others when strategizing and planning the future of their businesses. The main takeaway By looking at past seasons of economic turbulence, we can learn strategies and insights for future and current times of economic turbulence. Insights from The Great Recession exemplify the importance of risk analysis, cash flow projections, and understanding that short-term decisions can have long-term impacts. Insights from the Dotcom Bubble indicate the importance of strategy over expectations, diversified streams of income, clear branding, and pricing strategies beyond low prices. “You do not move ahead by constantly looking in a rear view mirror. The past is a rudder to guide you, not an anchor to drag you. We must learn from the past but not live in the past.” - Warren W. Wiersbe For more insights related to navigating current economic turbulence, visit: Executive Coaches Huddle: 10 Things To Take Into a Hard Recession (10/07/22); Arete Coach Podcast Episode 1095; Links for Audio and Video versions. Switching Things Up: Maintaining Profit During Inflation Exploring Business Responses to Inflation: Lessons from the Past and Insights for Today Arete Coach Podcast Episode 1052 Arete Coach Review: “Winning In Turbulence” by Darrell Rigby Episode 1083 of the Arete Coach Podcast Reviewing Recession Potential & Key Strategies for Surviving Economic Tsunamis Adapting to Endure: An Arete Coach Review of Sequoia Capital’s May 2022 Presentation References Béjaoui, A., Mgadmi, N., Moussa, W., & Sadraoui, T. (2021, July). A short-and long-term analysis of the nexus between Bitcoin, social media and Covid-19 outbreak. Heliyon, 7(7), e07539. https://doi.org/10.1016/j.heliyon.2021.e07539. Benbya, H., & Belbaly, N. (2002, December). THE “NEW” NEW ECONOMY: LESSONS LEARNED FROM THE BURST OF DOT-COM’S BUBBLE, DISPELLING THE MYTHS OF THE NEW ECONOMY January 2003. Journal of E-Business, 2(2). https://www.researchgate.net/publication/229015395_THE_NEW_NEW_ECONOMY_LESSONS_LEARNED_FROM_THE_BURST_OF_DOT-COM%27S_BUBBLE_DISPELLING_THE_MYTHS_OF_THE_NEW_ECONOMY. Corporate Finance Institute. (2022, January 21). Dotcom Bubble. Retrieved September 28, 2022, from https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/dotcom-bubble. Ennis, H., & Jarque, A. (2017, February). Bank Lending in the Time of COVID. Federal Reserve Bank of Richmond. Retrieved September 28, 2022, from https://www.richmondfed.org/publications/research/economic_brief/2021/eb_21-05. Federal Reserve Bank of St. Louis. (2021, October 5). Lessons Learned from the Financial Crisis: About this Lecture. Retrieved September 28, 2022, from https://www.stlouisfed.org/dialogue-with-the-fed/lessons-learned-from-the-financial-crisis. Federal Reserve Bank of St. Louis. (2013, November 22). Great Recession and Its Aftermath. Retrieved October 14, 2022, from https://www.federalreservehistory.org/essays/great-recession-and-its-aftermath. Fligstein, N. & Goldstein, A. (2014). The transformation of mortgage finance and the industrial roots of the mortgage meltdown. IRLE working paper #133-12. http://www.irle.berkeley.edu/files/2012/The-Transformation-of-Mortgage-Finance-and-the-Industrial-Roots-of-the-Mortgage-Meltdown.pdf. Gulati, R., Nohria, N., & Wohlgezogen, F. (2010, March). Roaring Out of Recession. Harvard Business Review. Retrieved September 28, 2022, from https://hbr.org/2010/03/roaring-out-of-recession Huddleston, T. (2020, April 9). How many recessions you’ve actually lived through and what happened in every one. CNBC. https://www.cnbc.com/2020/04/09/what-happened-in-every-us-recession-since-the-great-depression.html. Investopedia. (2019, June 25). What Ever Happened to the Dotcom Bubble? Retrieved September 28, 2022, from https://www.investopedia.com/terms/d/dotcom-bubble.asp. Investopedia. (2022, May 26). 2008 Recession: What the Great Recession Was and What Caused It. Retrieved September 28, 2022, from https://www.investopedia.com/terms/g/great-recession.asp. Jantzen, R., Pescatrice, D., & Braunstein, A. (2009). Wal-Mart and the US Economy. Eastern Economic Journal, 35(3), 297–308. http://www.jstor.org/stable/20642493. JP Morgan. (n.d.). Cryptocurrencies: Bubble, boom or blockchain revolution? J.P. Morgan Asset Management. Retrieved September 28, 2022, from https://am.jpmorgan.com/us/en/asset-management/institutional/insights/portfolio-insights/ltcma/cryptocurrencies-bubble-boom-or-blockchain-revolution/. Kelly-Barton, C. (2013, December 4). USA TODAY. USATODAY. Retrieved September 28, 2022, from https://eu.usatoday.com/story/money/markets/2013/12/04/lessons-from-dot-com-bubble/3871291/. Milstein, E., & Wessel, D. (2019, December 17). What did the Fed do in response to the COVID-19 crisis? Brookings. Retrieved September 28, 2022, from https://www.brookings.edu/research/fed-response-to-covid19/. Rigby, D. (2009, August 24). Winning in Turbulence. Reed Business Education. Sequoia Capital, Adapting to Survive (2022, May). Link: https://www.aretecoach.io/post/adapting-to-endure-an-arete-coach-review-of-sequoia-capital-s-may-2022-presentation. Sommer, J. (2022, August 5). Lessons From the ’80s, When Volcker Reigned and Rates Were High. NY Times. Retrieved October 4, 2022, from https://www.nytimes.com/2022/08/05/business/inflation-investing-paul-volcker.html. Sorensen, S. (2022, September 23). Arete Coach Review: “Winning In Turbulence” by Darrell Rigby. Arete Coach. Retrieved September 28, 2022, from https://www.aretecoach.io/post/arete-coach-review-winning-in-turbulence-by-darrell-rigby. Ryan, T. (2022, January 7). Recession Proof Businesses: 40+ Companies That Thrived in Recession [2021 Update]. Klint Marketing - Digital Marketing Agency. Retrieved October 7, 2022, from https://klintmarketing.com/companies-started-in-a-recession/. Copyright © 2022 by Arete Coach LLC. All rights reserved.

Episode #1089: In this episode of the Arete Coach Podcast, Norma Rosenberg, a Vistage Master Chair, explores the “oops and ops” term she dubbed as a result of COVID-19. During the episode, we discuss other insights such as the impact of COVID-19 on flexibility, creativity, and improvisation, and sage sayings she uses throughout her coaching practice. About Norma Rosenberg Norma Rosenberg is an Executive Coach and Master Vistage Chair who has been working with CEOs and senior executives for 40+ years. She came to coaching after a career in management consulting with PricewaterhouseCoopers, where she worked with numerous Fortune 500 companies. She has been a Chair with Vistage International since 1999 and has been coaching executives in management, sales, operations, marketing, customer service, and human resources. Her practice today is based in Manhattan and her clientele is a blend of for-profit and not-for-profit organizations. Norma is highly intuitive and perceptive. She is curious-minded, an innovator in the executive coaching field, and is pushing the limits of what coaching can be, particularly in our stay-at-home world. Key highlights “Oops and ops” Timestamp 01:10 Norma has a phrase she created during the COVID-19 pandemic, “oops and ops”. During the pandemic, Norma noticed that every time she tried to type “ops” via text as shorthand for “opportunity,” her text would autocorrect to “oops”. She noticed the connection between these two words “because during the pandemic there were many things that didn’t work like before.” Sometimes “instead of an opportunity” her clients would “wind up with an ‘oops,’ something that doesn’t work well.” Through this experience with her clients, she thought “isn’t this a wonderful learning from this time?” Instead of viewing failures or “oops’” as simply losses, she viewed them with potential for “ops” saying that “a failure creates an opening, a space to rethink everything and come up with something new.” Act now, not later Timestamp 05:58 When discussing a slide from Sequoia’s “Survival of the Quickest,” Norma and Severin discuss the importance of acting now and not later. Norma shares that along with acting now, CEOs should be aware of how and where they are spending their time as a vital KPI. Because the COVID-19 pandemic has changed the workplace so much, CEOs should examine how they have changed where they spend their time and the things they focus on to best meet the needs of today’s workplace. “Don’t tell, ask” Timestamp 15:48 Early in Norma’s career as a consulting advisor for CEOs of Fortune 500 companies, she worked in a male-dominated industry. She shares that she “was the first woman” in the “big four company” that she was with. Because of this, she had “to come up with a way of not seeming to tell them what to do.” In doing this, she started asking questions to help them come up with their own answers, a vital part of coaching. Norma also explains that helping her clients come up with their own answers increased the likelihood that they would implement needed changes in their workplace or career. “Bend and break the rules” Timestamp 25:44 When asked what she meant by writing “you got to bend and break the rules”, Norma explains that covid-19 has been a great example of the need to bend and break rules become some “things just didn’t work” during the pandemic. For example, “being in the office every day” was no longer an option. Because of this, “new ways of working” had to be created. Norma shares that this is a reason why it’s so important to be “flexible” and “rethink” current strategies. Living in the moment Timestamp 31:33 In response to Severin asking “what’s next” for her, Norma shares that she is much “more open and spontaneous” about her future. While she “can’t possibly imagine the whole thing,” Norma feels that she “was made for this time because [she likes] to feel what’s going on with people and pay attention to that” as opposed to having a fixed plan. Today, Norma embraces living in the moment, coaching in smaller increments, is “loving coaching more than ever,” and is enjoying meeting people where they are at in their journey. Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

As we continue into the fourth quarter of 2022, the challenges executives face in regard to employee relations continue to evolve. Recently, we analyzed the latest trend in employee engagement of “Quiet Quitting.” Inspired by this trend, we dove into insights outlined in Matthew Kelly’s The Dream Manager to understand the strategies executives can apply to their practice, and encourage managers to apply to their workforce, for a happier and more engaged workforce. “If you treat people like people, they respond like people? Dreams are at the core of every person. It is there that our passion for life is ignited.” - Matthew Kelly, The Dream Manager About The Dream Manager The Dream Manager is a “business parable about how companies can achieve remarkable results by helping their employees fulfill their dreams.” The company discussed in this book faces high rates of employee turnover and low morale in the workplace. Because of this, the managers in the company set out to discover “what really drives” their employees. They found that “the fulfillment of crucial personal dreams” with individual-specific “help and encouragement” are key to leading a successful workplace. This book is centered on the idea that “a company can only become the-best-version-of-itself to the extent that its employees are becoming better-versions-of-themselves” (Kelly, 2007). The Dream Manager has received praise-worthy reviews from A. McDonald, the COO of Procter & Gamble, as well as Patrick Lencioni, the author of The Five Dysfunctions of a Team. Management lessons from The Dream Manager Below are 6 lessons we can learn from Kelly’s The Dream Manager. After each section, we include questions for consideration that can be used as fire starters for executive coaching conversations. The power of questions A continued theme in Kelly’s The Dream Manager is the use of surveys to analyze the needs, wants, challenges, and goals of employees. Questions can serve as a powerful tool for both executive coaches and managers. In each episode of the Arete Coach Podcast, we ask guests for the powerful questions they use in their coaching practices. Consider Episode #1021 and Episode #1046 of the Arete Coach Podcast for a review of the powerful questions discussed throughout the Arete Coach Podcast. Throughout The Dream Manager, employees are asked why they are leaving their careers and what their goals and dreams are outside the workplace. After The Dream Manager program is implemented, they are even asked how it can be improved. By asking these questions, the managers at Admiral Janitorial Services were able meet the needs of their employees, create programs that fostered the continued meeting of these needs and supported goal attainment, and lastly further improving the program. A few questions to consider: What questions have you asked your employees? Do your employees have a safe space to share their ideas, concerns, needs, and goals? What do you know about your employees? How do you know this? Why are your employees [leaving your company, distracted at work, not engaged, etc.]? How do you know this? Have you asked them? What assumptions have you made about your employees or workplace? “The employees know things about our business that we don’t.” - Matthew Kelly, The Dream Manager The power of personalization Within The Dream Manager program, Admiral Janitorial Services’ employees were given monthly meetings with a “Dream Manager.” These employees were able to address their own personal goals, creating a connection between their personal goals and their careers. Through personalized encouragement and praise, employees were able to establish their “why” for their work and connect this to their personal lives and overall goals. This connection motivated them to excel in their careers and create a workplace with decreased absenteeism, increased retention, improved workplace relationships, improved performance, and improved customer service (BBC, n.d.). A few questions to consider: Do your managers know the individual needs of their employees? Do your managers have a relationship with each employee they manage or are they managing too many people to do this? How do your employees receive personalized support and management? When work fulfills your “why,” engagement increases As exemplified in this book, employees without a “why” or greater purpose for their career are likely to be less engaged. As seen in our recent “Quiet Quitting” article, employee engagement has become a major concern for executives worldwide. By implementing The Dream Manager program and helping employees identify and connect their “why” with their careers, engagement levels at Admiral Janitorial Services increased. According to McKinsey & Co, “employees expect their jobs to bring a significant sense of purpose to their lives” and “employers need to help meet this need, or be prepared to lose talent to companies that will” (Dhingra et al., 2021). Helping employees identify their personal “why” and how it can be fulfilled through their careers can help them find purpose in their careers; ultimately creating a more stable and engaged workforce. A few questions to consider: What are your employees’ “why” for coming to work everyday? How do you know this? How can you support your employees goals, dreams, ambitions, or “why”? What is your company’s “why”? How can employees contribute to this? How does this help your employees achieve their own personal “why”? “Isn’t one of the primary responsibilities of all relationships to help each other fulfill our dreams?” - Matthew Kelly, The Dream Manager Staying green and growing After establishing The Dream Manager program, managers at Admiral Janitorial Services continued to question how they could improve the program; they stayed green and growing. In this mission to continually improve, managers were able to learn new ways of improving the program in ways that greatly impacted employees. The workforce of today has faced many changes and challenges in recent years with the hiring challenges, the rise of the nomadic and remote employment, inflation, and the Silver Tsunami. All of these factors have contributed to changes in the demographics, needs, and desires of the current workplace. Because of this, it is vital for executives to not only remain aware of these changes, but also respond to these changes to best meet their employees’ needs. When managing employees, managers and executives should stay green and growing, by continuing to ask questions and rapidly responding to changes in the workforce of today—not yesterday. In the words of Mark Sanborn, “Your success in life isn't based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business” (Herrity, 2022). A few questions to consider: When was the last time you evaluated your management practices? How are you rewarding employees? Is this the reward they want today? How have the needs of your employees changed over the past 2 years? How have you responded to this? Are your managers receiving training based on the current state of the workforce? Are you managing yesterday’s workforce or today’s? Culture is key In the creation of The Dream Manager, the managers of Admiral Janitorial Services found that they were creating a culture of goal achievement and purpose. Having a workplace culture that is healthy and encourages growth can greatly increase engagement. According to Mckinsey & Co “many of the costliest risk and integrity failures have cultural weakness at their core” (2020). They explain that culture “is an organization’s best cross-cutting defense” and that companies with “strong risk cultures have more engaged and satisfied customers and employees (McKinsey & Co, 2020). For more insight on powerful culture strategies visit Building Resilient Workforces to learn how to create a culture that fosters resiliency and withstands the challenges of the post-pandemic workforce. A few questions to consider: How does your workplace culture support your company’s values, goals, and “why” How does your workplace culture affect your profits and losses? How does your management practice affect your workplace culture? If you could describe your workforce’s culture in 1 word what would it be? Where is your workforce culture today and where would you like it to be 1 year later? “Help your employees in the direction of their dreams and you will create the most dynamic environment in corporate America!” - Matthew Kelly, The Dream Manager Acknowledging financial needs Managers in The Dream Manager acknowledged that many of their employees had goals and dreams that required financial input. After experiencing increased profits from their program, the pay for the employees was increased. They also provided financial advising through the The Dream Manager program. Furthermore, they created a grant program that allowed employees to apply for specific financial grants using the increased profits of The Dream Manager program. In light of today’s current rates of inflation and economic difficulties in a variety of areas and industries, it is important to acknowledge the financial side of good management. Research has shown that when employees are stressed, they are less likely to be engaged at work (Breaugh, 2020). For example, when employees are stressed about how they can afford groceries during periods of inflation, they are likely to be more stressed and less engaged at work. Does your employees’ rate of pay meet their needs today and support their goals for tomorrow? A few questions to consider: How can you increase profits and reallocate these funds to employees? What are the financial needs of your employees? How can your company help meet some of these needs? “The future of your organization and the potential of your employees are intertwined; their destinies are linked.” - Matthew Kelly, The Dream Manager The main takeaway In Matthew Kelly’s The Dream Manager, we see the increased need for human connection and purpose put on full display. We gain insight into the power of questions and personalization, the importance of fulfilling one’s “why,” the impact of staying green and growing, the value of a great workplace culture, and the importance of acknowledging your employees' financial needs. By taking on the stance of a “dream manager,” executives and their managerial staff can see management and human resources in a new light, creating new opportunities for increased engagement, decreased turnover, and more resilient workforces. References BBC. (n.d.). The benefits of a motivated workforce. Retrieved October 4, 2022, from https://www.bbc.co.uk/bitesize/guides/zdn992p/revision/1. Breaugh, J. (2020, March 16). Too Stressed To Be Engaged? The Role of Basic Needs Satisfaction in Understanding Work Stress and Public Sector Engagement. Public Personnel Management, 50(1), 84–108. https://doi.org/10.1177/0091026020912516. Herrity, J. (2022, August 24). 52 Thought-Provoking Quotes on Managing Change Effectively. Indeed. https://www.indeed.com/career-advice/career-development/quotes-on-managing-change. Kelly, M. (2007, August 21). The Dream Manager. Hachette Books. https://www.amazon.com/dp/1401303706/?tag=sounexecbooks-20. McKinsey & Co. (2021, April 5). Help your employees find purpose or watch them leave. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/help-your-employees-find-purpose-or-watch-them-leave. Soundview Executive Book Summaries. (2009). The Dream Manager THE SUMMARY IN BRIEF. www.Summary.com. Strengthening institutional risk and integrity culture. (2020, November 4). McKinsey & Company. Retrieved October 4, 2022, from https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/strengthening-institutional-risk-and-integrity-culture. Copyright © 2022 by Arete Coach LLC. All rights reserved.

Episode #1088: In this episode of the Arete Coach Podcast, Julie Gammack, an Executive Coach, retired Vistage Chair, and CEO of Julie Gammack Productions, shares the power of free press, Julie’s experience finding the “story” that exists in everybody, and her story of transitioning from radio and news to Vistage executive coaching. Tune in for a powerful discussion on personal courage, forgiveness, and the purpose of free press. About Julie Gammack Julie Gammack is a retired Vistage Chair and Executive Coach out of Des Moines, Iowa. Prior to executive coaching, she was a journalist, reporter, columnist, and talk news radio host. Today, she is the CEO of Julie Gammack Productions. Julie has greatly impacted the lives of business leaders in her 20 years of experience as an executive coach of those with businesses ranging in revenue from 4 million to 700 million. Through her executive coaching, she was awarded the Chair Excellence Award. As the current CEO of Julie Gammack Productions, Julie produces a writer’s retreat in Okoboji, Iowa. She has created and held the Blue Ridge Writers’ Retreat, The Aspen Writers’ Retreat, and The San Juan Island Writers’ Retreat. Julie is passionate about journalism and helping writers bring out the story within themselves. Key highlights The courage to make change Timestamp 11:09 Early in Julie’s childhood, Julie learned that “boys and girls had different opportunities.” While her brother was able to make “a lot of money with a paper route,” she was unable to because girls were not allowed to be paper carriers. Years later, she started pushing for change. She shares a story of a time she had the courage to make a change for good in her first year of college. During her freshman year, Julie was on the Student Senate and she introduced a “resolution to abolish women’s hours.” At her college, boys were allowed to be out all night, but girls “had to be in their dorm rooms by 10:00 PM.” After bringing forth this movement, Julie received some pushback, but she maintained courage and moved forward. Her suggested “resolution passed unanimously” in 1968. Today, Julie maintains her passion for fairness and courage. From radio to Vistage Timestamp 25:49 Julie’s journey from radio to Vistage involved several different fields. After her time in radio, she became a newspaper columnist. After this, she worked for a presidential campaign. She then transitioned to entrepreneurship as an “early adopter of technology.” This ultimately led her to work with Vistage. She explains that the skill set she gained in these fields benefited her executive coaching career because it enabled her to ask powerful questions and listen. She states that as a coach “you don’t get there unless you ask probing questions…. you have to be able to listen.” Finding the story in everyone Timestamp 33:10 When discussing the writers’ retreats that Julie produces, Severin asks what she has learned while conducting these. She shares that you have to keep your focus on what is in the best interest of the participants. She also explains that you have to be clear about your “why.” For Julie, her “why” in producing these writers’ retreats is to “help people become better writers” because “there’s a story in everybody.” “Is there somebody you need to forgive?” Timestamp 40:35 Julie shares a powerful story of a question she asked during a writers’ retreat. During a retreat, she played the Barbara Streisand song, “Somewhere” from West Side Story which held the theme of forgiveness. After the song played she asked, “is there somebody in your life you need to forgive?” From this question, a powerful book about forgiveness and healing from the aftermath of loss was created by one of her retreat attendees. Trust yourself Timestamp 48:32 When asked “what’s a lesson you’ve learned recently that you wish you’d learned earlier on?”, Julie shares that she wishes she would’ve learned to trust herself more. She explains that “as human beings” we “spend so much time in self-doubt” and “imposter syndrome.” Instead, Julie advocates defeating imposter syndrome, removing self-doubt, and embracing courage in all of life’s decision-making. Download the transcript Click here to listen to the podcast, or click below to view the podcast outline and transcript: Copyright © 2022 by Arete Coach LLC. All rights reserved.

“Quiet quitting” is a growing workplace trend that encourages employees to disengage from their work, costing employers money, decreasing workplace creativity and resiliency, and ultimately decreasing a business's likelihood to withstand recession and economic downturn. What is “quiet quitting”? Quiet quitting is a trending topic on social media that advocates employees should do only the bare minimum to avoid being fired in their careers (CNN). “At the end of the day, the purpose of quiet quitting is to separate yourself from the stress of your job so that you’re able to focus your energy on other things” (Paige West). Quiet quitting holds a range of meanings. Some quiet-quitters are “still fulfilling their job duties” but not going the extra mile (working overtime, additional training, volunteering for extra tasks) (Huffington Post). Others state that quiet quitting is about employees looking to “untether their careers from their identities” (Wall Street Journal (Ellis & Yang, 2022)). In other cases, quiet quitting represents unfulfilled work, off-task behaviors, and a refusal to contribute outside “their wage.” For example, in a post by @Saraisthreads on TikTok, the following is stated, “Respectfully Susan, it’s 2022. We are acting our wage, so don’t give me extra work, okay? Thank you, thank you!” Why are people quiet quitting? Quiet quitting isn’t new. According to Gallup’s 2022 State of the Workplace Report, only 21% of employees globally are engaged in their work. For America and Canada, only 33% of employees are actively engaged in their work. “Globally, employee engagement and wellbeing remain very low, and it’s holding back enormous growth potential” (Gallup, 2022). 78% of younger, Gen Z, employees request recognition for their efforts multiple times a month according to a Gallup WorkHuman Survey; compared to only 45% of Baby Boomer employees request the same level of recognition (Lorenz, 2022). “Gen Z and younger workers are reporting that they feel less like their work has purpose” (Lindsay Ellis WallStreet Journal). How does it impact your business? Quiet quitting crushes workplace creativity and innovation decreases (Kevin O’Leary, CNBC). Quiet quitting continues the trend of low engagement in the workplace (Wall Street Journal August 15th, 2022). Quiet quitting decreases engagement, which decreases resiliency. This leads to poorer outcomes in times of recession. “Business units… are at an increased disadvantage and less resilient if employee engagement is weak during a recession” (Gallup; Harter, 2020). Quiet quitting costs employers money in new hire costs and productivity costs. “The cost of replacing an individual employee can range from one-half to two times the employee's annual salary” (Gallup, McFeely & Wigert, 2019). How to discourage quiet quitting Increase recognition for excellent work and extra efforts between employees and managers. “Employees are four times as likely to be engaged at work if they strongly agree that they get the right amount of recognition for the work that they do” (Gallup WorkHuman Survey; Lorenz, 2022). Have clear workplace expectations. Let employees know the level of effort you expect and why. Hire engaged employees that value hard work and “have an appetite for professional growth” (Inc; Cohan, 2022). Help your employees find purpose within your organization. Share the “why” behind your organization's existence. “Executives are nearly eight times more likely than other employees to say that their purpose is fulfilled by work. Similarly, executives are nearly three times more likely than others to say that they rely on work for purpose.” (McKinsey & Co; Dhingra et al., 2021). “Gen Z and younger workers report feeling less like their work has purpose” (Lindsay Ellis Wall Street Journal). Questions to consider Are your managers aware of “quiet quitting”? Do they know what signs to look for (decreased effort, off-task behaviors, etc.)? How, when, and how often are your employees recognized for their efforts? If you were to ask your employees what their “why” for their job was, what would their response be? How do you communicate your organization’s “why” with your employees? What expectations do you have for your employees? Do they know these expectations? The main takeaway Quiet quitting, while trending on major social media platforms, is not new to the already disengaged workplace. Quiet quitting has encouraged Gen-Z and younger generation employees to put forth minimal effort in their careers. This is a result of global workplace disengagement and a failure to find purpose or meaning within careers. A workplace with quiet-quitters can reduce creativity, engagement, productivity, and the resilience of a company. Key strategies that employers can use to discourage quiet quitting are reinforcing and recognizing when employees go above and beyond for their team, setting clear expectations, communicating the purpose and meaning of the organization to their employees, and hiring engaged employees. For more insight on how to build an engaged workforce, consider the following Arete Coach insights: Engagement Matters: How To Develop an Engaged Workforce 3 Must Know Insights from Gallup’s Latest Engagement Poll How Employees Avoid Work and Evade Engagement We would also like to thank Vistage Master Chair, Allen Hauge, for his insight on “quiet quitting.” We encourage readers to tune into Episode #1038 of the Arete Coach Podcast for more sage insights from Allen Hauge. Resources CNBC. (2022, August 19). Quiet quitting: Why Kevin O’Leary says it’s a bad idea for your career. https://www.cnbc.com/video/2022/08/19/quiet-quitting-why-kevin-oleary-says-its-a-bad-idea-for-your-career.html. CNN. (2022, August 20). Engineer says she quiet quit her job. Hear what that means. https://edition.cnn.com/videos/business/2022/08/20/smr-quiet-quitting--anti-work.cnn/video/playlists/business-economy/. Cohan, P. (2022, August 21). 4 Ways to Keep Your Gen-Z Workers From “Quiet Quitting.” Inc. https://www.inc.com/peter-cohan/4-ways-to-keep-your-gen-z-workers-from-quiet-quitting.html Dhingra, N., Samo, A., Schaninger, B., & Schrimper, M. (2022, February 27). Help your employees find purpose—or watch them leave. McKinsey & Company. https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/help-your-employees-find-purpose-or-watch-them-leave. Ellis, L., & Yang, A. (2022, August 12). If Your Co-Workers Are ‘Quiet Quitting,’ Here’s What That Means. WSJ. https://www.wsj.com/articles/if-your-gen-z-co-workers-are-quiet-quitting-heres-what-that-means-11660260608. Gallup, Inc. (2022, August 5). State of the Global Workplace Report - Gallup. Gallup.Com. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx?thank-you-report-form=1#ite-393218. Harter, B. J. (2021, September 20). Is Your Culture Resilient Enough to Survive Coronavirus? Gallup.Com. https://www.gallup.com/workplace/311270/culture-resilient-enough-survive-coronavirus.aspx. Lorenz, B. E. (2022, August 29). How to Bridge the Generational Gap in Recognition. Gallup. https://www.gallup.com/workplace/396470/bridge-generational-gap-recognition.aspx. McFeely, S., & Wigert, B. (2022, June 10). This Fixable Problem Costs U.S. Businesses $1 Trillion. Gallup. https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx. @saraisthreads. (2022). Veronica Displays “Quiet Quitting.” TikTok. https://www.tiktok.com/@saraisthreads/video/7134755184529394986?is_from_webapp=v1&item_id=7134755184529394986. Torres, M. (2022, August 2). You Could Be “Quiet Quitting” Your Job And Not Even Know It. HuffPost. https://www.huffpost.com/entry/quiet-quitting-job-coasting-at-work_l_62e42dc2e4b00fd8d83f26c4. Wall Street Journal. (2022, August 15). How ‘Quiet Quitting’ Is Changing the Workplace - The Wall Street Journal Google Your News Update - WSJ Podcasts. WSJ. https://www.wsj.com/podcasts/google-news-update/how-quiet-quitting-is-changing-the-workplace/add4081e-286e-40fb-ae2a-6fb5a427c583?mod=Searchresults_pos2&page=1. West, P. [Paige West]. (2022, August 12). How to QUIET QUIT your job with INTENTION [Video]. YouTube. https://www.youtube.com/watch?v=5c7cUAKWjmo. Copyright © 2022 by Arete Coach LLC. All rights reserved.

Inflation has been a hot-button topic in the post-pandemic workplace. According to the Bureau of Labor Statistics, inflation—as estimated by the Consumer Price Index—is currently at an 8% increase from 12 months prior (2022). This heightened rate of inflation, paired with war, supply chain challenges, hiring challenges, and the effects that inflation has on customer buying power has served as a warning sign of an upcoming recession. As discussed in Episode #1083 of the Arete Coach Podcast, “Surviving Economic Tsunamis,” the best businesses are those that look ahead, prepare, and plan for potential challenges. In light of recent news and trending topics, this insight reviews Winning in Turbulence by Darrell Rigby—a book published during The Great Recession of 2007-2009 (Investopedia, 2022) which examines 9 strategies business leaders can use during seasons of economic downturn to not only survive, but thrive. Strategy 1: Gain clarity Quick takeaways Identify the current and future core areas of income for your business. Strengthen those areas and cut back on other non-tangential areas. Make your core “repeatable” and “adaptable.” Deep dive During seasons of economic downturn, business leaders must, “know exactly where [they] will compete, how [they] plan to win, and how [they] will mobilize the organization to implement the strategy.” This begins with acknowledging that clarity is key. It is essential for business leaders to identify the core areas, services, and products that have the most profitability within their organization. According to Rigby, when leaders concentrate on a “company’s core business dramatically improves the odds of success in a downturn.” Rigby recommends asking two questions to help clarify the core of a business: “Who are the customers that we love the most and that love us the most?” and “What unique advantages do we have?” After clarifying the core of a business, Rigby recommends strengthening the core of the business. He explains that “sometimes the best way to strengthen the core is to refocus it, selling off businesses that are less closely related so the company can grow around a more tightly defined core” (Rigby, 2009). Strategy 2: Encourage “customer loyalty” and advocacy Quick takeaways “The negative effects of lost customer trust can be deep and long-lasting,” but “loyal customers cost less to serve.” Identify your most loyal customers and focus on nurturing them. Only cut costs with strategy, and continue innovating. Deep dive The second strategy to win in seasons of economic difficulty is by “protecting and growing customer loyalty.” All recessions come to an end, but without customers, a business cannot survive in general. Businesses that thrive during an economic downturn invest in customer relationships strategically by identifying their most loyal customers, those that “when you design products and services for them, they say: this is absolutely perfect for me.” These customers promote your business to others. By focusing on the needs and what matters most to this group of customers, business leaders increase their ability to withstand economic downturns “both now and in the long term” (Rigby, 2009). Strategy 3: Build inner strength for external challenges Quick takeaways Internal strength is key for skilled responses to external challenges “None should be satisfied with the status quo.” “Strengthening the organization is one of the most powerful levers any company can pull to improve its performance in a downturn.” Deep dive When external challenges like recession challenge business leaders, an internal organizational response is required. Rigby explains that the internal strength of an organization is “one of the most powerful levers any company can pull to improve its performance in a downturn.” To examine and build an organization’s internal strength, Rigby recommends 5 strategic steps: 1: Identify “crucial decisions” such as those that affect “your ability to stay in business” such as “cost reduction, cash management, and pricing.” 2: Have an “effective system” to make those decisions. What does your decision-making process look like within your organization? Is valuable time lost in the decision-making process? 3: Clarify “roles and processes.” Once your system to make decisions is identified, people must “know who’s responsible for making and executing critical decisions.” Who in your organization is responsible for recommending, agreeing, performing, and making final judgments on critical decisions? 4: “Putting the right people in the right roles.” While some companies cut costs by conducting necessary layoffs, it is important to also consider what talent is currently within the organization and not being used effectively. Are “top-performers” in “critical roles” or are their talents being wasted in less critical areas? 5: “Actively Managing the culture.” According to Rigby “in acute downturn, leaders need to take deliberate action to keep a strong culture from deteriorating” and to avoid “a culture that gets in the way of good decisions” (Rigby, 2009). Strategy 4: “Manage complexity” Quick takeaways Complexity costs money and time. “Focus only on the products that are most important” to your customers, “saving the costs of unwanted production and boosting the margins of best sellers.” Deep dive Avoid unnecessary complexity that slows down your business. Unnecessary complexity can be multiple products, options for customers, projects, or services. Rigby states that “managing complexity brings significant benefits in a relatively short time.” However, “the key is not to eliminate complexity but to balance its benefits with its costs.” Innovation is still a valuable form of business in an economic downturn, but the benefits should be weighed against the costs of innovation in the short and long term. Rigby shares three types of complexity that business leaders should consider managing: “Product Complexity”: Too many options that customers don’t value or need “Organizational Complexity”: Too many people or unclear decision-making processes “Process Complexity”: Too much waste of time or material (Rigby, 2009). Strategy 5: Examine general and administration needs Quick takeaways General and administration departments should be examined by comparing the costs in time and money versus the benefits of these departments. “A combination of reduction, redesign, and restructuring can save about 20% of G&A costs.” Deep dive General support and administration are vital resources for business success. However, these departments tend to grow in seasons of economic prosperity and can waste business funds in seasons of economic downturn. Rigby explains that “in a downturn, it becomes painfully apparent that some incremental support services don’t contribute enough to sales or earnings. While these departments are still a necessity, business leaders can “reduce” support functions to the necessities, “redesign” the “processes that deliver support services” (for example automation), and “restructuring” to “perform most effectively at the lowest cost” (Rigby, 2009). Strategy 6: Focus on “cash flow” Quick takeaways “Knowing your altitude in terms of financial strength and flexibility is crucial.” Businesses with low cash flow “need to focus on defensive actions” while “healthy companies with cash reserves… have more strategic options” Deep dive The cash flow of a company is the lifeblood of a company. Rigby calls business leaders to focus on their “cash flow and liquidity analysis” to determine which actions to best take in their business. Wise business leaders can run model scenarios to analyze the short-term and long-term success of their businesses. According to Rigby, “tracking cash flow weekly for the short term and monthly for the longer term” can provide “a deep understanding” of a business's financial performance and allow the “company to envision the kind of fix it would need to implement when business tightened.” Gaining a perspective of the long-term and short-term effects of an economic downturn, “can help companies gain an integrated perspective on how operations affect the balance sheet” (Rigby, 2009). Strategy 7: “Turbocharge sales” Quick takeaway “When business conditions are harsh, you need every dollar of revenue you can find.” Deep dive Maximizing sales is the seventh strategy recommended by Rigby to win during seasons of economic downturn. He recommends the TOPSales method outlined below: T- “Targeted Offerings.” Identify your “best customers” and who your best customers “should be” to take advantage of and “steal share from a distracted competitor” O- “Optimized Tools and Procedures.” Ensure that your sales managers and reps are optimizing their tools to best sell to your targeted best customers. By “screening” which sales areas fit with the company's “targeted offerings,” “supporting” sales reps facing a “more consultative selling process,” and “tracking prospective sales,” are all ways that businesses can ensure sales are optimized. P- “Performance Management.” Reevaluate the territories covered by sales reps and managers with current data and compare it to the best customer base. Sales- “Resource Development.” Maximize the time reps can spend in front of customers” and “keep overall sales costs under tight control.” Place your best sales reps in the hottest markets for your business (Rigby, 2009). Strategy 8: Price with the long-term in mind Quick takeaways “Promotional price cuts are sometimes called ‘management heroin’. Price cuts are addictive.” “What matters most is how effectively companies manage pricing” Deep dive Rigby warns that while many companies “do need to lower prices in a downturn,” hacking at prices alone is not an effective strategy for winning in times of turbulence. While companies “have to act quickly,” they should create a “pricing strategy,” “set prices on individual products to reflect value to both buyer and seller,” and have “disciplined tactics to manage the aspects of the transaction that most affect profitability.” Effective pricing includes examining what sales and discounts “really work and which waste money,” cracking down on “uncontrolled discounting” by sales reps, re-examining the needs and mindset of customers, and pricing with long-term sales in mind (Rigby, 2009). Strategy 9: See “acquisitions and partnerships” as opportunities Quick takeaways “Recessions present rare opportunities to improve their competitive positions through acquisitions and partnerships.” “Don’t use deals to reshape your company’s competitive foundation. Use them instead to strengthen it, to do what you do better.” Deep dive According to Rigby, “acquisitions completed” during the recession from 2001-2002 “generated almost triple the excess returns of acquisitions made during the preceding boom.” During seasons of economic downturn, businesses can use acquisitions and partnerships to “help executive” their predetermined “strategy.” Before entering an acquisition or partnership, it's important for businesses to have an “investment thesis” outlining why “a proposed transaction will strengthen” the company because “deals are riskier and harder to pull off” during seasons of economic downturn. Rigby also recommends creating a “reacting” “acquisition team” that develops ideas and leads ahead of the competition (Rigby, 2009). Main takeaway While seasons of recession can breed ominous headlines and news articles, it is important for business leaders to recognize that within these seasons, great opportunities lay for advancement, optimization, and customer acquisition. By re-evaluating your business model, gaining a better understanding of your most valuable customers, strengthening your business, managing complexity, reevaluating support needs, gaining a better understanding of cash flow, supporting sales, pricing with strategy, and engaging in acquisitions, business leaders can “win” in “turbulent economic times” (Rigby, 2009). For more insights about today’s economy, we encourage you to review the following: Episode 1083 of the Arete Coach Podcast, “Surviving Economic Tsunamis” Our EconPulse page which provides a snapshot of the current state of the economy Adapting to Endure: An Arete Coach Review of Sequoia Capital’s May 2022 Presentation The Key to Thriving in Turbulent Times: Finding Your Pivot Points 23 Strategies and Methods to Increase Pricing Without Necessarily Losing Your Customers Navigating Inflation: Lessons From The Past & Strategies For Withstanding Inflationary Periods Exploring Business Responses to Inflation: Lessons from the Past and Insights for Today Switching Things Up: Maintaining Profit During Inflation Changing Times and Picket Lines: Lessons & Insights from Amazon’s First U.S. Labor Union References Bureau of Labor Statistics. (2022, July). Table 5. Chained Consumer Price Index for All Urban Consumers (C-CPI-U) and the Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, all items index - 2022 M07 Results. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/cpi.t05.htm. Investopedia. (2022, May 26). A Look Into the Great Recession. https://www.investopedia.com/terms/g/great-recession.asp. Rigby, D. (2009). Winning in Turbulence (Memo to the CEO) (Illustrated ed.). Harvard Business Review Press. Copyright © 2022 by Arete Coach LLC. All rights reserved.