8/14/2019 CEOs Challenges 2009
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B U S I N E S S P U L S E
Executive Summary:Data Collected
December 5-12, 2008
CEO
Challenges:
9 in 09
For several years, The Nicolet
Bank Business Pulse has been
tracking the Top Challenges
CEOs say they expect to face
in the Coming Year.
In 2009, CEOs say there are new
challenges on their plate - some
theyve never seen before. Since
October, when the whole world
changed, CEOs in Northeastern
Wisconsin have been rapidly
reordering business priorities.
Some of the old challenges are
still hanging on, but CEOs say
itll be a Brave New World in thebrand new year.
Last week, The Nicolet Bank
Business Pulse asked CEOs
what they were thinking, doing,
(wishing and hoping, too?)
Its ALL about Sales
As it was last year (and the year
before that), the Top ChallengeCEOs say theyll face is
Increasing
Sales. In fact, Increasing Sales
jumped from 47% saying it was
a Very Significantchallenge to
77% saying the same this year;
18% said Sales would be a
Moderately Significantchallenge;
NO ONE said Sales would not be
a challenge in the year ahead.
(NOTE TO CORPORATE SALES
CONSULTANTS: Get out theSmile and Shoeshine Kits.)
First time on the CEOs plate:
53% said the challenge of
Operating in the Context of
Financial Uncertaintywill be a
Very Significant challenge in 2009;
32% said a Moderately Significant
challenge. From nowhere on the
radar to a strong Number Two
its an impressive move against
the more routine CEO challenge
of Sales, Marketing, Healthcare
Costs. Everything has changed
significantly and quickly
since October.
Handling Increasing Health InsuranCosts dropped like a rock to
third
place on the CEOs Top Challenge
list (33% said, Very Significant).
Handling Increasing Health
Insurance Costs was tied for the
Top Challenge in 2007 (63%
saying, Very Significant). Health
costs slipped to second place at
44% last year. Today, its 33%. Th
decline may reflect the changes
CEOs have made over the last fewyears as well as some slowing
of
healthcare inflation, but chances
are CEOs have bigger Fish to Fry!
(See Challenges #1 and #2.)
Other Very Significantchallenges fo
20-to-30% of NEWi CEOs include:
Improving Quality of Marketing
Efforts (30% Very Significant),
Operating with Increasingly Tight
Credit(28%), Retaining QualityEmployees (25%) and Developing
New Products/Services (22%).
Im not getting information; I'm not managing.John Torinus,
President & CEO Serigraph, Inc
http://www.nicoletbank.com/
8/14/2019 CEOs Challenges 2009
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The top CEO challenges for 2009
0% 20% 60% 80%40%
Increasing Sales
Increasing Financial Uncertainty
Handling Health Insurance Costs
Improving Quality of Market Efforts
Increasing Tight Credit
Retaining Quality Employees
Developing New Products/Service
Recruiting Quality Employees
Developing Cohesive
Top Management Team
Handling Energy Costs
77%
53%
33%
30%
28%
25%
22%
19%
19%
9%
How the Survey is Conducted
The Nicolet Bank Business Pulse is a Quarterly Study of CEOs in
NE Wisconsin (Brown, Calumet,Door, Kewaunee, Manitowoc, Marinette,
Oconto, Outagamie, Shawano, Winnebago Counties) andMenominee,
Michigan. It is designed and implemented by IntellectualMarketing,
LLC.
Participants include: 28% in manufacturing; 25% in services; 18%
retail trade; 5% wholesale trade;6% finance, real estate,
insurance; 5% in transportation, communications, utilities; 6% in
construction;7% in other industries. 19% have fewer than 6
employees; 33% have 6-25; 17% have 26-50;8% 51-100; 16% 101-250; 3%
251-500; 3% 501-1,000; 2% have 1,001 or more.
QUESTIONS to Dr. David G. Wegge (920) 217-7738;
[email protected]
Recruiting Quality Employees
dropped to its lowest point
since Nicolet Bank started asking
about it. As a challenge, just
19% said recruiting would be
Very Significant in 09. Recruiting
Quality Employees was the third
most significant challenge in
07 at 48%, but dropped to 28%last year. The decline is no
doubt
a reflection of the softening
job market and increasing
unemployment that puts more
quality employees into the job
market with less bargaining
power. While unemployment is
about 6.7% nationally, it is
somewhat lower in Northeastern
Wisconsin.
The Appleton MSA unemployment
level was 4.2% in October; Green
Bay MSA was 4.4%. These rates
are slightly higher than 2007
when Appleton was at 4.1%and Green Bay at 4.2%. Goods
producing businesses are
somewhat less concerned about
Recruiting Quality Employees (10%
Very Significant) compared with
service providing organizations
(25% Very Significant).
Handling the Increasing Energy
Costs dropped from 21% saying
it was Very Significantlast year to
just 9% this year. This is proba-
bly a reflection of seeing prices
at the pump dramatically lower
since October, but more likely a
vote of No Confidence that the
worldwide economic slowdownwill keep demand for energy low
and price per barrel, soft.
Summary
With the very significant changes
in the worldwide economic
situation since October, two
brand new challenges were
added to the CEO priority listthis year: Operating in the
Context
of Financial Uncertainty and
Operating with Increasingly
Tight Credit. CEOs said both
challenges will be of significant
concern in the months ahead.
It appears that 2009 is shaping
up to be a year of unique
challenges for CEOs in NEWi!
A key ingredient to success is how
the overall economy performs.
Several economic forecasts
including the Third Quarter
Nicolet Bank Business Pulse,
suggest a long road to recovery.
It will surely test the leadership
skills of NEWi CEOs.
http://www.intellectualmarketing.com/
