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by Jon Spaugy, BIG CEO
EDITORIAL BIG TIMES
MAGAZINE-MARCH/APRIL 2017 Not so long ago, I was talking with a long-time industry watcher and we started discussing how the role of independent agents has evolved over the years. Not just going from the days of hand rating to faxed apps to e-signatures, but how the business of independent insurance sales has changed. Soon after, our editor for BIG Times Magazine, Don Lukenbill, asked me what I wanted this issue’s editorial to be about and I thought a lot about my previous conversation, as well as subsequent ones with other colleagues. Then it hit me. In a pivotal scene from “Braveheart,” Mel Gibson’s character William Wallace shouts “Freedom!” just as he is about to be executed. Of course, the battle between captive and direct writers and the independent insurance distribution system is hardly that cutthroat (I don’t think). But independent agents do offer customers choices that other producers cannot. As with other businesses, the larger product line you offer, the more satisfied your customers will be. A 35 year old single male with a perfect driving record (for example) that contacts a direct writer (for example) will only be given a quote from that particular company. Now we all know that different carriers offer varied coverages and premiums for different drivers. That same driver walks into an independent agency, he will be able to choose from several insurance companies and policies and different premium levels because the producer has the freedom to solicit appointments from a diversity of companies. In addition to different carriers, an independent agency is also able to offer different kinds of insurance. Naturally, the auto/homeowners combo is common at most agencies. But there are specialty markets that an
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enterprising agent can look into to bring in cross-selling revenue but also be a one-stop shop for all their customers’ insurance needs. They can sell marine, various commercial lines, motorcycle, off-road, RV/motorhome, mobile home/trailer park, and anything else their community or niche markets need. Freedom also entails the ability to offer non-insurance products and services – notary public, vehicle registration, etc. Not only does this help the agency pick up customers who may not be looking for insurance at the time (but may later), it also shows customer looking for insurance that the agency can be relied upon to provide other essential services. With the BIG Convention coming up May 5th through May 7th (Golf Tournament on Thursday, May 4th!), I am obviously heading somewhere with this. Freedom also means the ability to pick and choose what you want in your agency’s portfolio. There is no better venue for finding new markets as well as ways to fulfill other ancillary customer needs that the BIG’s annual event. From the numerous vendors exhibiting exciting products and services in the trade show to seminars that show attendees new ways to cultivate and maintain customer relationships, you need to exercise your freedom and be at the convention.
Get Active, Get Involved, Get BIG!
5 Strategies
For Getting The Most Out Of Meetings By Cameron Herold, business development expert and author Many employees probably groan and grumble when they see that the boss has scheduled yet another meeting. But meetings aren’t terrible. We’re just terrible at running meetings. Businesses can make better use of the time spent in meetings, and improve employee morale and productivity in the process, if they follow five simple steps. • Have an agenda. Meetings that don’t have a clear agenda tend to get off track easily. They also often include people who don’t need to be there and would be better off back at their desks, completing important projects. The agenda can be short, but should include the main purpose of the meeting, the possible outcomes and the action items to be covered. An agenda prevents the meeting from being hijacked by some random topic. It also allows your more introverted team members to prepare what they want to say in the discussion. Most introverts won’t chime in when they don’t know the agenda ahead of time and you could miss some great ideas. • Determine a meeting style. There are basically three styles of meetings: information share, creative discussion and consensus decision. In an information-share meeting, the information flows in one direction. Either employees tell the leadership something, or senior management has something to say to employees. Creative discussions are brainstorming sessions. People toss out ideas without any judgments made about feasibility or validity, and decisions come at a later date. Consensus-decision meetings are held when a decision is needed. These can get testy, but eventually the participants need to reach a consensus. Once you’ve concluded the meeting, put it behind you. Don’t continue the discussion outside the meeting.
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• Start on time and end early. If you scheduled the meeting for 10 a.m., start at 10 a.m. This shows respect for people’s times, and also reflects something much bigger. If you can’t start a meeting on time, why would it be any different for anything else that’s going on in a company? End the meeting five minutes early. That gives people time to grab a cup of coffee, check emails, go to the restroom or chat with colleagues before their next meeting. • Foster useful communication. Some people talk a lot in every meeting. Others rarely speak. For a meeting to be successful, you need to get everyone engaged. Foster dialogue with newcomers or quiet people first, and then go around the table, moving up in seniority as you solicit feedback or ideas. Also, make sure people are not distracted because they are responding to email on their cell phones or laptops. • Know your role. Every meeting should have a chair, a timekeeper, participants and a closer. The chair announces the type of meeting it is and makes sure everyone sticks with the agenda. The job of the chair is to prevent the meeting from going sideways. The timekeeper does what the name implies, making sure everyone stays on schedule and that no one lingers too long on any one point. The participants should not be passive observers. They need to arrive prepared to contribute and to remain interested throughout the meeting. The closer generally is going to be the chair. Meetings should always end with the chair posing the question: “Who’s doing what, and by when.” That way each person acknowledges their assignment and their deadline for achieving it. Employee frustration will drop drastically if you can keep meetings focused on the task at hand and avoid wasting time. You should be able to get more done faster, and with fewer people involved.
About the author Cameron Herold, author of “Double Double: How to Double Your Revenue and Profit in 3 Years or Less” (www.DoubleDoubleBook.com), began his first business at age 21. He has been instrumental in the successful sale, branding and integration of 500 business locations with three major companies. He’s best known as the driving force behind 1-800-GOT-JUNK?’s spectacular growth from $2 million to $106 million in revenue in six years. His range of executive roles includes strategic planning, negotiating corporate acquisitions, operations, people, sales, marketing, call centers and public relations. Herold is a top-rated lecturer at the EO/MIT Entrepreneurial Masters Program and a powerful and effective speaker at EO/YPO & Vistage events around the world.
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AS PRIVATE PENSIONS ARE BEING ELIMINATED THE UNITED STATES OF AMERICA NEEDS NEW SAVINGS MECHANISMS
By Stephen S. Santoro All members who are successful insurance agents and brokers need to consider this. You need to help create new savings mechanisms for your clients and insureds Private pension plans are healthier today than they were a few years ago. But as they get healthier, the more likely they will disappear. The rising stock markets since the 1980’s have restored many plans to proper funding (the exceptions being airlines, steel companies and US domiciled auto manufacturers) many employers feel they no longer need to sponsor them. All of you as insurance agents and brokers need to be aware of this. And as a service to your insureds and clients you should consider their financial well-being and futures. These entitlements may not be available when many of you retire at the current rates of consumption. McKinsey & Company (the consulting firm) predicts no growth in private pension plans in the next 5 years. Additional contributions from employers and the requisite investment returns on “defined-benefit-plan assets” will just offset the drain created by benefit payments, plan terminations and the slowdown of benefits earned by workers in “frozen plans”. (Freezing a pension plan means that no new hired workers are allowed to participate but employers continue to fund additional benefits as the existing workforce earns them. Terminating a plan means that no workers can earn new benefits, and all previously earned benefits are either paid off in cash or transferred to an annuity operated by an insurance company.) McKinsey projects that frozen or terminated private pension plans are likely to double or triple in the next 5 years, from 25% of the $2.3 trillion in “defined-benefit-plan assets” to as much as 75%. Strong unions may continue some plans but the past experience of airlines, steel companies and US domiciled auto manufacturers suggest otherwise. Under funding that created all the media and press
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fervor of private pensions in the past is over. Stronger laws and requirements, plus better accounting are the reasons. Tighter pension regulation and better accounting do benefit the plan participants, they are an issue for the plan sponsors. The Pension Protection Act of 2006 and related new accounting standards will further accelerate this decline of the use of “defined-benefit-plans”. All plans must have been fully funded by 2008. Those which are not must make that shortfall up by 2015. In the interim companies MUST show their pension surpluses or deficits on their balance sheets, not in footnotes and FASB (Financial Accounting Standards Board) is planning to add another requirement: Companies must recognize their pension gains and LOSSES as market prices change, rather than smoothing them over a number of years. Prosperity cannot save defined-benefit-pension plans, what will support 74 million baby boomers (now between the ages of 45-64)? What about the 84 million Generation X-ers (24-45) and Generation Y (younger than 24) in their retirements? (You folks, the insurance agents and brokers need to answer that question!) The USA savings rate has fallen from more than 10% in 1984 to MINUS (yes, you read that correctly) 1% in 2006. There is much debate about the methodology and measurement correctness, as savings may be stronger than many believe, however, THERE IS NOT DOUBT: THE USA NEEDS TO SAVE MORE AND CONSUME LESS. 401(k)’s, KEOGH’s, SEP’s and IRA’s maybe the right vehicle to “move” from pensions, but they still are not doing the job. Only 50% of the workers today participate in such plans and MOST fail to save the maximum amounts. Most baby boomers do NOT have the money to carry them through their retirements. Even many of the top-income boomer households have INADEQUATE savings: The average household in the below median half owns less than $130,000.00 in retirement savings, NOT COUNTING THE HOME.
The Aspen Institute asked a group of insurance, reinsurance and financial services executives to consider the problem. Their conclusion: The government and the people of USA should harder to bolster savings, creating savings vehicles that are simple, attractive, supported in part by government with tax deferrals and direct subsidies, managed by the insurance, reinsurance and financial-services professions and are targeted to each important expenditure in a lifetime, such as education, home purchase and retirement. These folks further suggest that Social Security and the insurance, reinsurance and financial-services profession create and sell low cost annuity contracts to people as the retire, to minimize the risk of outliving their savings. These folks go on to say that current low-income workers who don’t have savings plans at their work, be granted a subsidy to save for retirement. This subsidy would improve on the existing savers’ tax credit, giving a federal match of savings up to 3% of income for people earning less than $40,000.00@year. The current sub-prime and Alt A mortgage fiasco suggest a housing crisis where too many people own houses they neither could afford or should have purchased in the first place, these executives decided the issue is not too much house but TOO MUCH BORROWING. Their plan would replace zero- down-payment loans with subsidized down-payments savings-a 50% government match of the first $5,000.00 of savings. For Generation Z (current babies), these executives propose child savings accounts: Newborns get a $500.00 tax-sheltered savings or investment account from the government. Relatives can add $2,000.00@year and low-income families would get a match of a $1,000.00 deposit.
Americans who are perceived to be “more well off” need to put more money aside (save) and the executives plan properly provides better tax shelters for savings in ALL income and wealth brackets. Individual Americans, including their USA government, need to save more and borrow less. All of you as insurance agents and brokers need to be aware of this. And as a service to your insureds and clients you should consider their financial well-being and futures. Thank you to Jon Spaugy and the Board of BIG for allowing my viewpoints. I’ll be back next time! ABOUT THE AUTHOR Stephen Samuel Santoro is a former senior executive officer from 2 Fortune 200 Insurance Holding Companies. Both firms were/are traded on the NYSE. Stephen’s background focused on reinsurance in both USA and tax haven venues. Stephen attended the University of UT from 1975/1980. Stephen has worked in the insurance business and related businesses since 1981. Stephen also has owned controlling interests in 3 managing general agencies in CA and GA. Stephen has also been a controlling shareholder of the parent of GA’s oldest property & casualty insurance company’s parent from 7.2004 through 4.16.2014. Contact him at ssantoro@stephensantoro.com.
These executives focused on low and moderate income Americans, who have the least ability to save and the greatest potential return from doing it. This is welfare, but it is capitalist welfare! Fundamental requirements of “free people” are savings and investment. Savings reduce financial risk and make it possible to take a chance on a new job or take a year off work to acquire a new skill. Returns on investment demonstrate the power of capital appreciation and build wealth among those who need it most.
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Raymond Fernandez
Carnegie General Insurance Agency
By Don Lukenbill After being in the insurance business for a while, especially if you have been around the various trade associations like BIG, you tend to see the same faces. Sure, people come and go, but there is a core group of insurance professionals who have made the growth and prosperity of the industry their careers. One such “lifer” is Raymond Fernandez. If you have attended a BIG (or other association) meeting, convention, or other event, you have probably met Raymond, or at least know of him. Among other accolades bestowed on him, Raymond is a BIGGIE award winner for Marketing Rep of the Year. You will not find another person with a bigger passion for the insurance business or desire to help everyone he associates with become a better professional. Here is a brief look at the man behind the legend: BIG Times Magazine: We always like to start with a bit of background. What sort of happenstance led you to the insurance business? Raymond Fernandez: I was just graduating from high school, and I wanted to go to college to either major in business or psychology. I figured that starting in the industry offered a little of both in the real world back as in 18 year-old kid in 1993. Also, my uncle, Danny Sanchez, had been in the business for 3 years prior. He and Cheryl Fleming were both instrumental in my being able to attain my first insurance job as a file clerk at Eastwood Insurance. I thank them both. BTM: What sort of epiphany made you decide to make insurance your career? RF: I remember the feeling of being in an office. Everyone was always dressed so nice, had a nice tan, and spoke in a very educated manner. I saw they passion
for selling the solution to help indemnify clients, something I appreciate about insurance to this day – “as little as X amount down and be covered for a minimum15/30/5 liability.” BTM: You’ve been in the business a number of years in different positions. Tell us about the changes you have seen in different markets and how reactions have been positive and negative. RF: I think the biggest change has been on the technological side, and how people communicate. The positive is that information is more readily available and perhaps more accurate. The negative is that human factor is removed out of the relationship. It can leave one with a feeling of one feeling more like a “#” (number/hashtag) vs. someone with whom one interacts on a personal level. BTM: For the producer especially, it seems like it all boils down to production versus profit. Obviously insurance is (somewhat of) a public service. What are the differences between high volume and long-term retention business plans? RF: “Production over Profit” only exists in the dictionary. In the long-term or even short-term, a carrier will not want to make one dollar only to pay five. High volume is important to get the fee revenue -- and obviously build premium -- but it must be at a TCR for most carriers below 100%. New high volume business tends to run 20-30 points higher on the loss ratio, where as a seasoned book of business that retains well, has the loss ratio much lower. Finding the right balance and mix is one of the most important areas of product management for a carrier. BTM: Where is the synthesis between low price and quality coverage?
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RF: There are many rating factors that determine why a price is low. As far as quality coverage, only the person who buys the policy can determine that. However, if one wants umbrella coverage or typical lease limits of 100/300, gap coverage, etc., then of course there will be higher premium to pay vs the legal limit of 15/30 and 5. BTM: Obviously, we live in an online world. What do you think are viable venues and what are wastes of time? RF: I feel that anywhere one can get the name out is viable venue, Social media of any kind that you see works well should be utilized. I don’t find that the younger generation looks for insurance in the Yellow Pages anymore. Both of my kids do not even know what the yellow pages are! BTM: Where do you think a company and producer need to come together? RF: I think that a producer needs to be 100% aware of the contract that they sign when taking on a new appointment. The commission structure, UW, fees, and basic principles to sell the carrier. On the company side, I feel carriers need to make sure that the producers they chose are in alignment with their value proposition outside of rate and are needed and not just wanted.
BTM: What qualifications is a company looking for in a new producer? RF: I cannot speak on behalf of other companies. They all look at contracts and appointments differently. However what I look for are the following: Profes-
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sionalism, UW integrity, and whether the producer in alignment with my target market. Do I have adequate representation in the area? How was the paperwork filled out that was given to me in wanting to get appointed? Sometimes the littlest things make the biggest difference. BTM: What should a new producer be looking for in a company? RF: A producer should really be looking at if they feel that what the company has to offer makes business sense. They should not collect appointments for the sake of the one deal that they may lose. Sadly, I have seen appointments be taken away due to non-production, only to not be able to write them later when they are really needed. I go back to try and work with the carriers that you can feed monthly. Often times I see producers who might have about 15 auto markets, yet 80%o of their monthly business goes to 3 of the 15. Eventually, it will be a problem that needs to me addressed. Stay close to your sales manager. That way there are no surprises BTM: Ok, now a little more about you. Look back ten years. If you could jump in a DeLorean and talk to Raymond in 2007, what would you say? RF: One day you will know many of these kind folks you work much more in depth. Embrace the change, find commonality, and build a mutually profitable productive relationship from there. BTM: Now hop in to that same car and cruise to 2027. What would you say to Raymond? RF: Not much different than going back to 2007, the only difference would be find the right balance of doing it faster with the same sincerity .At the end of the day, we are all still people that deal with a wide array of emotions. I hope that I can continue to serve on the same level of service that leaves them feeling satisfied.
BTM: Anything else you’d like to share? RF: I want to say thank you to this industry that has been good to me for the last 24 years of my life. Also, I would like to thank BIG for giving me the chance to share my views. I wish all much success and profit. Cheers!​
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Networking for Nerds: Tips to Help Reluctant Networkers Make Connections That Pay Off By Alaina G. Levine, author of Networking for Nerds
Does your idea of “networking” involve nursing a drink in the corner while your more gregarious colleagues mix, mingle, wheel, and deal? Whether you consider yourself an introvert, socially awkward, or just a networking newbie, fear not. Here are some tips to help you connect more confidently and maybe—just maybe—take your career to the next level. We all know people who can walk into a room full of total strangers and walk back out with a group of new best friends. They’re the kings and queens of conferences and mixers. At every networking event, they make small talk and introductions look easy...while you nurse a drink in the corner and limit your conversations to people you already know. (Frankly, you’d rather visit the dentist or file your taxes than approach a total stranger to promote yourself and your brand!) If this sounds all too familiar, you that you aren’t alone. And better yet, there is a way for you to confidently step out from behind the potted plant you’ve been hiding behind. In today’s connected world, the ability to collaborate and innovate with others isn’t a nice skill to have—it’s a must-have. No matter how experienced or talented you may be, you’ll never be able to fully leverage your technical expertise if you are unable or unwilling to make mutually beneficial connections with other professionals.
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Here are some networking principles that will help you to network productively and (relatively) painlessly: Look for positive partnerships. Don’t think of networking as schmoozing or something slightly sleazy (like selling a used car). Successful networking is about crafting win-win partnerships that bring value to both parties—it is never about trying to extract something from someone. Approach networking with the fundamental idea that you are seeking to find out what people need or what problems they have that you can help them with. Right off the bat, this will help you shed your reluctance to approach others with your projects and ideas. Look at networking through a new lens. For many people, networking has a place on the “dreaded chore” list right up there with cleaning out the gutters. Others erroneously think that networking takes time away from the outputs associated with success in your profession. But it’s important to see connecting with others as a positive activity that advances your success and that’s even (gasp!) enjoyable. Think of it this way: It is always a privilege and an honor to have the opportunity to discuss topics that you and the other party are passionate about. So take pleasure in the gift of meeting new people and seeing what can come from the new exchange. Keep the conversation positive. When you are networking and you meet someone for the first time, discuss only positive topics and steer clear of potentially controversial topics like politics and religion. You want to make a good impression and ensure that your new contact equates you with happy thoughts. Enjoy yourself—to a point. Yes, there’s a reason why alcohol has a reputation as a “social lubricant.” It can help take the edge off your nerves, which often comes as a welcome relief at networking events. Just watch your intake—limit yourself to one small drink, or only a few sips. Remember your ultimate purpose. You are
there to network, not to get drunk. Be open to connecting with friends of friends...and their friends, too! As you network, be open to connecting with people who are not in your industry or who seemingly don’t have anything in common with you. Remember, the six degrees of separation theory says that we are connected to every other person on the planet by no more than six degrees—and it’s surprising how often it’s proven to be true! For instance, there’s a very large chance that you know someone who knows someone who knows the head of HR at a company in which you’re interested. Additionally, you never know what information you are going to learn until you engage someone in conversation. By networking, chances are you will leave with ideas and inspiration to solve your problems or navigate your career in novel ways.”
About the Author: Alaina G. Levine is the author of Networking for Nerds as well as a celebrated and internationally known speaker, comedian, career consultant, writer, and entrepreneur. She is president of Quantum Success Solutions, an enterprise dedicated to advancing the professional expertise of both nerds and non-nerds alike. To learn more, visit www.alainalevine.com or follow @AlainaGLevine.
Give yourself a goal. If the very thought of networking makes you want to crawl under a rock and stay there (hello, introverts!), make it your goal to reach out to just 5 or 10 people with whom you would like to build a partnership. Whether you’re reaching out via email, LinkedIn, or in person at an event, introduce yourself! Let them know why you want to meet with them—namely, that you are interested in exploring the opportunity to collaborate and contribute to their team. That’s all you have to do—and you’ll be amazed at your success! Hidden, game-changing career opportunities are everywhere, but they won’t magically reveal themselves. The only way to access these clandestine gems is via networking. Most people feel that they lack the confidence to network, which gives you a distinct advantage if you do. And trust me—making fruitful connections really does get easier with practice.
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Change Your Behaviors to Become a More Inspiring Leader - Behavioral
Strategist Offers 4 Tips For Broadening Your Mind And Your Leadership Skills
By Rob-Jan de Jong, behavioral strategist and author Habits can be a trap for people in leadership positions – whether they are in business, politics or another field. As leaders, they should provide a compelling vision that inspires those around them. Instead, many of them lapse into automatic and mindless thinking. And that can affect every decision they make – and the actions of the people who report to them. Too often, we don’t come up with imaginative solutions because we let ourselves be ruled by routine and by preconceived notions. We think we know ahead of time what will and won’t work, which makes us quick to dismiss ideas that sound too “out there.” The people who answer to you learn the lesson that creative thinking is frowned upon, even if that’s not the lesson you wanted to teach.
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Simply resolving to have a more open mind likely won’t be enough to turn things around. But de Jong says there are behaviors and practices that, through repetition and perseverance, can help leaders and anyone else develop a mindset that’s open to imaginative and better ideas.
• Formulate powerful questions. Generating ideas starts with asking the right questions and the best questions are thought-provoking. They challenge underlying assumptions and invite creativity. They also give us energy, making us aware of the fact there is something to explore that we hadn’t fully grasped before. Train yourself to catch poorly designed questions, asked by you or someone else, and reformulate them. Questions that begin with “why,” “what” and “how” are best because they require more thoughtful responses than those that begin with “who,” “when,” “where” and “which.” Especially avoid questions that can be answered with a “yes” or “no.” • Expand your sphere of influence. We are strongly
influenced, for better or worse, by the small group of people we have direct contact with. Since we tend to hang out with people who are fairly similar to ourselves, chances are we are limiting our perspectives. He recommends making a deliberate effort to encounter people and ideas that are “profoundly different from the usual suspects you hang out with.” Visit a conference of a different profession, hang out with skaters, join an arts club or buy a magazine randomly off the shelf.
• Break your patterns. You can increase your chances
of seeing things differently if you deliberately break your normal pattern of working, communicating, thinking, reacting and responding, de Jong says. Take a different route to work. Change where you sit in meetings. If you are normally the first to volunteer, hold back.
“Some of these practices may take people outside their comfort zones, and everyone might not be ready to try all of these at once,” de Jong says. “But if you start to put them into practice, you’ll be able to grow into a more mindful, visionary leader one step at a time.”
• Learn to listen. We’ve all been taught the importance of being good listeners. The problem is most of us struggle to actually do it. Often when people are “listening,” they really are waiting for the first opportunity to share their story, their opinion or their experience. Train yourself to engage in three pure listening conversations a week. They don’t need to be longer than 15 to 20 minutes, they can be formal or informal, and the other person doesn’t need to know what you’re doing. Vow that you won’t try to take over the conversation no matter how much you want to. Just keep asking questions and don’t dismiss anything the other person says. After the conversation, reflect on what you learned. Don’t dismiss any ideas or views that don’t align with yours.”Dare to challenge your own assumptions and reframe your beliefs if need be.
ABOUT THE AUTHOR Rob-Jan de Jong, author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com), is an international speaker, writer and consultant on strategy and leadership themes. He serves as an expert lecturer at various leading business schools such as the Wharton Business School (USA), Thunderbird School of Global Management (USA), Nyenrode Business University (The Netherlands), and Sabanci Business University (Turkey).
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WHAT TO DO IN PALM SPRINGS
Everyone knows that Palm Springs is a vacation destination for golf, tennis, hiking, and just about any outdoor activity there is. Especially in May, when the temperature lends itself to being outdoors, there is no better place to be. If you are planning to extend your BIG Convention excursion beyond the convention days, there is plenty to do. A quick trip to the Vacation Idea website (www. vacationidea.com) shows just some of the activities you, family and friends can enjoy while visiting the Coachella Valley and environs:
Palm Canyon Drive
Palm Canyon Drive is the main downtown area of Palm Springs where many of the city’s attractions, galleries, restaurants, and shops are found. It is also the home of the weekly Palm Springs VillageFest. There are several museums on Palm Canyon Drive, including the Aqua Caliente Cultural Museum, the Palm Springs Historical Society, and the Cornelia White House. If you are wondering what to do in Palm Springs, California today, this is a great place to start exploring.
and ends at the Mountain Station, located at an elevation of 8,516 feet. The tram is the city’s most convenient gateway to the surrounding San Jacinto and Santa Rosa mountains. At the end of the tram ride, you will find yourself in the Mount San Jacinto State Park and Wilderness Area.
Palm Springs VillageFest
The Palm Springs VillageFest is a street fair that is held every Thursday night on Palm Canyon Drive in downtown Palm Springs. Also known as the Palm Springs Street Fair, it features three city blocks of art, entertainment, food, and shopping. Merchants on Palm Canyon Drive keep their shops open late during the street fair on Thursday nights so that visitors can enjoy the fair and do some shopping at the same time. 401 South Pavilion Way, Palm Springs, California, Phone: 760-320-3781
Palm Springs Tramway
When you want to get out of Palm Springs for some change of scenery, your best option is to take the Palm Springs Tramway, the world’s largest rotating tramcar. Completed in 1963, the tram takes you for a 10-minute long, 2.5-mile ride. The trip begins at Valley Station
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Indian Canyons
Palm Springs has been a tourist destination since the 19th century, but centuries before that, the area was populated by Indians. Most of the complex and sophisticated Cahuilla communities settled in the Murray, Palm, Andreas, Chino, and Tahquitz Canyons. Palm Canyon is also famous for being the largest California Fan Palm Oasis in the world. The canyons are fantastic for exploring on foot or on a horseback, for picnicking by the stream, or even for meditating. Visit the Trading Post in Palm Canyon for maps, food, drinks, and Indian arts and crafts and to hear about some fascinating cultural lore. 38520 S Palm Canyon Dr, Palm Springs, California, Phone: 760-323-6018
Elvis Honeymoon Hideaway
The Alexander Estate, also called the House of Tomorrow, is a mid-century icon of modernism. Writers have extensively praised its architecture, but it is much more famous for being the place where Elvis and Priscilla Presley spent their honeymoon, and it is where they lived between 1966 and 1967. There are special events organized every year to celebrate this event, along with Elvis’ birthday and death. You can follow one of the expert guides during one of the daily tours to learn about this monumental event and the life of the famous star. 1350 Ladera Circle, Palm Springs, California, Phone: 760-322-1192
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Palm Springs Windmill Tours
Located on 20th Avenue, Palm Springs Windmill Tours provides visitors with a windmill farm tour led by experienced guides who teach about windmills and wind as a source of energy. Visitors learn about the history of windmills while viewing historic pictures exhibited inside the tour building. There are also outdoor exhibits that give further context to the history of wind power and windmills. The two hour tour also includes a guided bus tour through the working windmill farm. The first windmill was built in Palm Springs in 1982. Today, there are over 4,000 windmills spread over 70 square miles. These impressive windmills provide enough power for Palm Springs and the Coachella Valley. If you are looking for great Palm Springs activities, take a look at this unique tour. 62950 20th Avenue, Palm Springs, California, Phone: 800-531-5834 For more information on these or other activities, check with the hotel concierge or visit the Vacation Idea website at www.vacationidea.com
Tax day fun facts
Obviously there is nothing fun about filing or paying your taxes. But if we don’t give something back to Uncle Sam, there would be a lot less productionon the state and federal levels (if that’s possible). OK, we joke about the lack of anything worthwhile coming from our elected officials, but taxes are a necessary evil so our government can continue operating. For some, paying taxes on April 15th – April 18th tis year -- it has turned into a social event, with a parade of vehicles passing through the post office that evening, then off to your local watering hole for snarkily-named shots and $10.40 specials. While you search for more deductions, here are some interesting fun facts about everyone’s least-favorite civic duty (right after jury duty): Federal income taxes were first introduced with the Revenue Act Of 1861 to fund the Civil War. The Act was introduced to gather funds for the expensive conflict that lasted for four years, with the price of war coming in at approximately $2.5 million per day. The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
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The 1040 form was introduced in 1913, mandated for U.S. citizens and residents making more than $3,000 for the taxable year. At three pages long, it was much shorter than today’s 1040 forms The Internal Revenue Service’s website features more than 400 tax forms. It is possible to download 1,132 tax-form related files by following specific instructions and schedules. The United States Tax Code began in 1913 with 400 pages. Today it is over 70,000 pages long. It is small wonder that more than four of five taxpayers use a professional tax preparer or tax preparation software to do their taxes. The IRS receives over 140 million individual tax returns and collects over $950 billion in taxes. The biggest tax deductions are those for taxes paid to state and local governments. Next biggest are for interest, especially on home mortgages. The average standard deduction is $7,000 to $8,000 (as of 2014). Itemizers on average claim $26,084 (again, 2014 data). As a percentage of adjusted gross income, people earning $100,000 to $200,000 pay an average federal tax rate of only 12%. Those earning $200,000 to $500,000 pay 19.6%. According to the IRS, the average tax refund is worth $3,539.00, and 96 percent of returns were paid through direct deposit. On average, 80 percent of returns are filed electronically.
The next recession is just around the corner
Are You Ready?
It’s important to note here that I’m talking about the “normal” economic cycles we experience, not those triggered by major unforeseen events such as occurred September 11, 2001, or the collapse of Lehman Brothers in 2008.
Recession? You’re Crazy, Business is Great! By Dana Borowka, MA, CEO of Lighthouse Consulting Whoever coined the phrase, “What goes up, must come down” must have been an economist. Nothing does a better job of explaining the cyclical nature of our economy. The problem faced by business managers is that once we’ve identified which part of the cycle we’re in, it’s too late to do anything about it. Forecasting the next upturn or downturn, and preparing accordingly, is the secret to business survival.
For most of our clients and readers, business is good to great. Everyone is bullish about higher sales and profitability in 2017. One way to suspect that the downturn has begun is to study your order board. Are sales tapering off? Are orders being placed less frequently and for smaller amounts? This tells you your customers are feeling the change.
The purpose of this article is to highlight a few of the points our panelists explored in more detail: Why expect a recession and what to do now to prepare your business for it.
Are you noticing an uptick in job applicants? This can mean other businesses are beginning to shed workers.
The Ups and Downs of the U.S. Economy
Rather than get distracted by attempting to pin-point the time of the next recession, it’s wiser to simply agree that there will be one, and it’ll likely occur within a few years. With that agreement in place you and your staff can prepare the ship for heavy weather.
History has proven there is a 7-10 year cycle in the U.S. that consists of periods of recession, recovery, accelerating growth, and declining growth. Like clockwork, every decade we cycle through all the stages. The last recessionary period was 2008-2009. Since then we’ve experienced a long period of recovery culminating in what some expect as accelerating growth in 2017. So far so good. But remember, what goes up must come down.
The Next Recession is Just Around the Corner If the U.S. economy has been climbing its way out of the recession for the past eight years, we’re approaching the time when we can and should expect another steep downturn. There will be another recession in the U.S. The only real question is when, but based on historical trends, that time is only 1-2 years away.
Now What?
Beginning immediately, you can take the following steps to prepare your business for operating through a recessionary period. Your management team must accept the same economic picture and be driven to succeed in spite of it. This is a great time for imagination. Work with the team to build action plans based on three different scenarios: a. recession, b. fast growth, c. slow growth. Or, look at it another way. Build a plan for what actions to take if sales drop by 20%, another plan covering if sales drop 40%. If you don’t have an executive dashboard, ask your CFO to build one with indicators for business growth or decline.
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Make sure everyone on the team is mission critical to building value for the business. Get lean, or refocus some jobs so they are contributing more to the value of the business in some way. If you’ve been adding staff the past few years, there’s a good chance you’ve taken on some “dead wood”.
Developing your managers to have excellent communications skills is vital to an organization’s growth, and absolutely mandatory during trying times, such as recession. Learn more about how LCS empowers key personnel so projects flow more smoothly without frustration.
Keep the team motivated. One good way is to identify and acknowledge key people in the organization and make known the succession plan.
In closing I recommend a book by two economists who have been extremely beneficial to our business. The economists are Alan and Brian Beaulieu from ITR Economics. Their most recent book is, “Prosperity in the Age of Decline.” I encourage you to read the book, listen to our Open Line panel discussion audio / slides – and be prepared for the Next Recession.
By all means, get the right people into the right slots now so they are confident in their roles by the time the downturn is really felt. A recession is no time to be breaking in key managers. Don’t overlook your Accounts Receivable department. This may become your lifeline during tough times. Invest in top-notch people and systems. Get your line of credit set. Reduce debt. If you believe the downturn will be accompanied by higher interest rates, do what you can to lock in prices for your raw materials and leases. Take care of your customers. Go out of your way to be seen as invaluable.
The Secret Code Did you notice a common thread in this advice? Six of the eight recommendations involve the quality of your employees and how well they work together as a team. Placing the right people in the right positions, for example, requires skillful hiring aided by in-depth work style and personality assessments. Reduce the risk of hiring or promoting the wrong person. Learn more about our personality assessment services. Pulling the team together and driving forward with a single purpose requires serious team building, not feel-good exercises. An investment in team building now will strengthen the company’s ability to thrive when other companies falter. Learn more about LCS team-building services.
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ABOUT THE AUTHOR Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your organization”. They do this through the use of in-depth work style assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. If you would like additional information on this topic or others, please contact Dana at dana@lighthouseconsulting.com or visit his website at www.lighthouseconsulting.com