thriving in 2014 event presentation

THRIVING IN 2014:Key Lessons from the 2013 Government Shutdown Survey & Strategies for Success in a Challenging Environment1/15/2014

#2014Strategies @ORIresults

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AGENDA

Introductions

Key Findings from the 2013 Government Shutdown Survey

Implications of 2014 and Beyond

Open Forum Q & A

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INTRODUCTIONS

Mike Clarke, President & CEO

Kathy Albarado, President & CEO@HeliosHR

Dr. David Rehr, Professor@DRehr

#2014Strategies @ORIresults @HeliosHR @DRehr

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GENESIS: The Fury of Trade Group CEO’s

“They need to make decision and do the job they have been voted in to do. It

should have never come to this point. Poor leadership examples on everyone's

part.”

With the level of hostility and disorganization, lack of compromise and

distrust resulting in a shutdown of the business of government you should all be fired and replaced with competent

people."

“Stop acting like children!”

“Get back to working together to get this country fixed. It's broken and this

bickering is only making it worse. All incumbents should be voted out unless significant bi-partisan progress can be

made in the next 6 months.”

“Stop this madness. You are embarrassing all U.S. citizens by your

actions. Learn the definition of "statesman" and start acting like one.”


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CONTEXT: The Shutdown by the Numbers

16 DaysDuration of the partial shutdown

of the federal government

$2.5 BillionTotal compensation costs, including benefits, paid to

furloughed employees

850,000Number of furloughed federal

workers

6.6 million daysTotal number of furlough days

incurred across the federal workforce

0.5%Decline in GDP growth caused by

the shutdown as estimated by Moody’s

$24 BillionOverall cost to the economy

based on a Standard & Poor’s estimate


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CONTEXT: The Shutdown by the Numbers

1.2 millionIncome verification requests that the IRS was not able to process

during the shutdown

$152 millionAmount the travel industry lost each day according to the U.S.

Travel Association

700Loans the SBA was unable to process, totaling $140 million

8,000Home loan decisions for low

income families in rural communities by DOA

156Aircraft purchases, valued at $19 billion that could not be

completed due to the closure of the FAA’s Aircraft Registry

2 millionLiters of beer, wine and distilled alcohol stuck at port waiting for

export certificates


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DOWNSTREAM EFFECTS: The Case of San Juan, WA


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IMPACT: Extent of Impact by Sector

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Not at all

Slightly/Somewhat

Significantly/Moderately

31%

38%

32%

9%

35%

56%

4%

15%

81%

21%

33%

46%

Extent to which your Organization was Impacted by the Federal Goverment Shutdown

All Respondents

Federal Government

Government Contactor

Non-Federal Sector


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RESPONSE: Reactions to the Shutdown

0% 20% 40% 60% 80% 100%

Delayed or canceled strategic investments

Delayed or canceled hiring decisions

Decreased or adjusted staff hours

Sought more info from the government

Delayed or canceled conferences or meetings

Communicated to clients, members & stakeholders

Communicated with employees

5%

9%

8%

19%

12%

24%

26%

17%

33%

37%

39%

44%

48%

66%

37%

53%

64%

39%

75%

71%

91%

14%

23%

24%

27%

31%

38%

46%

Steps Taken In Response to the Shutdown by Organization Type

All RespondentsFederal GovernmentFederal ContractorsNon-Federal Sector


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OUTLOOK: Optimism Varies Significantly By Sector

0% 10% 20% 30% 40% 50%

Association/Nonprofit

State Government

Commercial

Contractor

Federal Government

33%

21%

39%

36%

10%

37%

21%

41%

48%

11%

Growth and Budget Outlook by Sector

GrowthBudgets

“Uncle Sam may not be your favorite uncle, but he’s definitely your richest one…”

CEODefense Contractor


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OUTLOOK: The Troubling Optimism Gap

35%

19%24%

Optimism: Your organization’sbudgets

Owner/Senior Exec Manager/Supervisor Mid-level and below0%

10%

20%

30%

40%

50%

40%

20%

28%

Optimism: Your organization’s growth


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OUTLOOK: A Challenging Road Ahead

0%

20%

40%

60%

80%

100%

Revenues Budget Number ofstaff

Salaries Benefits Training &prof. dev.spending

Meeting &events

spending

14% 11% 12% 12% 12% 13% 12%

28% 37% 29%15%

25%38% 42%

37%35% 43%

60%56%

40% 37%

21% 17% 17% 12% 6% 9% 8%

Operating Outlook for the Next Six Months

Up

NoChangeDown


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PLANNING: Key Resources for Success

% 10% 20% 30% 40% 50% 60%

Capital/financing for strategic investments

Sales and marketing support

Help identifying customers or prospects

Identifying strategic partnershipopportunities

Qualified staff to do the work

18%

20%

20%

24%

33%

31%

41%

47%

44%

46%

29%

15%

23%

26%

55%

23%

24%

27%

29%

40%

Key Resources Needed to Achieve Strategic Objectives in the Next Six Months

Overall

Federal Government

Contractor

Non-Fedral Sector


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PLANNING: The Challenge of Attracting the Best & Brightest

%

10%

20%

30%

40%

50%

60%

33%

46%

55%

40%

Qualified Staff are a Key Resource to Achieving Strategic Objectives

Non-Fedral SectorGovernment ContractorFederal GovernmentOverall

0% 50% 100%

Don't Know

Less Likely

Neither More nor LessLikely

More Likely

6%

65%

19%

10%

Likelihood Qualified Staff will Want to Work for the Federal Government

Federal Staff: 75%!


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PLANNING: The Deep Discontent of the Federal Workforce

59% Overall Satisfaction

(2012: 63%)

54% Satisfaction with pay

(2012: 59%)

44% Access to needed resources

(50% in 2010)

34% Advancement opportunities

(42% in 2010)

45% Recognition for good work

(54% in 2010)

KEY (DIS)SATISFACTION INDICATORS

Source: Federal Employee Viewpoints Survey: Employees Influencing Change


http://www.fedview.opm.gov/2013files/2013_Governmentwide_Management_Report.PDF

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PLANNING: Growth & Financing Strategic Investments

Businesses having access to the capital they need

62%

Entrepreneurs wanting to start new businesses

60%

Strong National Economic Growth

74%

%

5%

10%

15%

20%

25%

30%

35%

18%

31%29%

23%

Capital/Financing is a Key Resource to Achieving Strategic Objectives

Non-Fedral SectorGovernment ContractorFederal GovernmentOverall

Less Likely due to Washington’s Governance…


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PLANNING: Washington’s Drag on the Economy

CEO’s/Senior Executives who contacted a member of

Congress during the shutdown(54% Overall)

75%


“This fiasco, including the sequester and shut down, have almost killed us. Small business is the majority of our economy. Take care of it please!”

OwnerCommercial Business

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PLANNING: Loss of Faith in Washington’s Governance

0%

20%

40%

60%

80%

100%

Optimistic Neutral Pessimistic Don't Know

6%

14%

74%

6%9%

21%

68%

2%5%10%

85%

0%7% 9%

83%

1%

Optimism that the Goverment will Address Priorities Important to You

Overall

Democrat

Republican

IndependentRespondents LESS CONFIDENT in the government’s ability to

address the country’s challenges

79%


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The Message for Washington: Do your Jobs!


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PLANNING: The Ascendancy of Social Media in 2014?

0% 10% 20% 30% 40%

Don't know

Lower Quality

About the same

Higher Quality

3%

34%

35%

28%

Quality of information about the shutdown on social media compared

to traditional news channels


0% 10% 20% 30% 40%

Slightly/ Not atall Valuable

ModeratelyValuable

Valuable/ VeryValuable

34%

31%

35%

Value of social media as a way to learn about the shutdown and surrounding

legislative debate

THRIVING IN 2014: Key Strategies for Success in a Challenging Environment

Q&A#2014Strategies @ORIresults @HeliosHR @DRehr

THANK YOU!John KagiaDirector, Strategy & InsightORI571-257-3205

www.ORIResults.com/shutdownsurvey