Hubert Joly, Executive Chairman and former CEO of Best Buy, writes for Harvard Business Review on how companies approach each phase of the COVID-19 pandemic will matter for their employees.
Lead Your Team Into a Post-Pandemic World
Reflections on Memorial Day
Reflections on Memorial Day
Good Morning. On this Memorial Day I want to share my blog with Retired US Army Colonel David W. Sutherland.
This weekend marks Memorial Day, a sacred day of recognition in the United States.
I, like the rest of the team at Dixon Center for Military and Veterans Services, will spend the weekend remembering, honoring, and mourning the United States military members who died while serving in the Armed Forces – some of whom I served with over the course of my 29-year career.
One of these people was the husband of Latrese Dixon. In her book, From Tragedy to Triumph: The Life of a Widow, Latrese reflects on her life leading up to, and journey following, her husband’s death in 2007 during combat operations in Iraq. While her book is a stirring read for Memorial Day, there are many passages that offer lessons and insights relevant throughout the year.
Today I want to share a few pieces of quiet wisdom from this book with you – and what passes through my mind as I read them.
“He was a soldier and he answered the call of duty.”
The members of our Armed Forces put their lives on the line for their country, knowing that it is a dangerous business that could separate them permanently from their families. Yet a service member follows through and perseveres, even amidst difficult times and challenges. It’s called “character,” and it’s explained best not by definition, but by actions such as selflessly putting country before life.
“He died doing what he loved most – protecting his country, protecting his family. Both were inextricably linked.”
For me, the key words here are “inextricably linked.” Those who serve do so both for, and on behalf of, their families, neighbors, and communities. Equally important are the “comrades” to their left and right in times of crisis. Serving our country is a global duty, but it starts with families. You will find courage, love, duty, and sacrifice a commonality among everyone who has served.
“Losing a loved one is hard: healing is harder, but know that their memories continue to live on.”
The worst thing we can do is to forget. We can all use the opportunity created by Memorial Day to remember all those who died while serving, be it in combat, during training exercises, or through accidents and non-combat related deaths. One of the most important deaths for me to remember is death by suicide while on active duty. Ultimately, though, this painful reflection is necessary as it truly is the purpose of Memorial Day.
“The most difficult and hardest thing to do was figure out how to tell the children that their father would not be coming home.”
The narratives of those who have fallen live on through their families. These families are given the honorific “Gold Star” to designate that they’ve had a loved one lose his/her life in service to the nation. If you know a Gold Star family, reach out to check on them this weekend and provide encouragement. If you meet a Gold Star family member in the future, ask them to share their story, then take the time to listen.
Although the COVID-19 pandemic has altered our ability to honor the fallen with parades or memorial services, it does provide an opportunity for us to create our own personal remembrances. Consider the following activities:
• Plant a remembrance tree or flowers with your family.
• Research the achievements of one of our fallen from previous wars and ongoing operations in Iraq and Afghanistan.
• Livestream virtual events from the Vietnam Veterans Memorial Fund and at Arlington National Cemetery.
This Memorial Day weekend, I hope that you take a moment to personally reflect on the achievements and courage of our U.S. service members who died while serving in the Armed Forces.
We at Dixon Center will always remember, and they will never be forgotten.
The Balcony
The Balcony
This week I am going to veer from my usual blog topics, to talk about balconies … and how they have become a source of inspiration and hope for people around the world.
In Italy you can hear music coming from balconies from town to town—”a nationwide concert to lift our spirits” shared one Italian. People were invited to join in, playing musical instruments –or if that is all they had—using pots and pans to join in on the melody. This is also true in France, where a French opera singer sang the French National Anthem from his balcony amid cheers and tears. There was an amazing evening where applause and cheers were heard when the French organized a countrywide balcony tribute to their health care workers. In Spain you can hear the notes of “My Heart Will Go On” … played on a piano on his balcony by a gifted Spanish musician and the beauty of the huge crowd who joined in.
And in New York, if you listen closely, you can hear the cheers of New Yorkers, from balcony to stoop, honoring health care workers and first responders, and the music from our Broadway musicians who will not be silenced even by COVID-19. And there are photos all over social media showing New Yorkers having balcony picnics and making elegant champagne toasts with their neighbors.
The balcony is a phenomenon within a phenomenon.
I found myself thinking about the many ways balconies have been used over time to communicate messages of good like those of the Pope for individuals of the Catholic faith on Easter morning, or for those romantics who can recite verbatim the balcony scene in Romeo and Juliet. Balconies certainly have been used to spread messages of evil, divisiveness and genocide, such as in the era of Mussolini and Hitler.
What is striking about the balcony scenes of today is the sense of optimism that is generated from these simple moments of sharing. The message that we really are in this together—one global community. These moments remind us of the courage and resilience of the human spirit. They remind us that we always do seem to get back up—one way or another. They remind us how deeply we are connected and how important this connection is to our health and well-being.
There have been moments of extraordinary sorrow since the pandemic struck. And there have been moments of extraordinary kindness. Both will remain with us for a very long time. Both need to be acknowledged.
I have been deeply honored by the many people who read my blogs and who write to me sharing their perspectives on the current reality.
Tonight I may cheer about the importance of this connection from my window.
FY2020 First Half Financial and Operating Results
FY2020 First Half Financial and Operating Results
The Fedcap Group Reports Fiscal Year 2020 First Half Operating and Financial Results
- Broadened services in key areas of focus
- Expanded international operations
- Effectively responded to COVID-19 health crisis
- Strengthened liquidity and preparing for post COVID-19 challenges and opportunities
New York, May 14 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for the first half of fiscal year 2020 ending March 31, 2020. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas: Workforce Development, Education, Occupational Health and Economic Development.
Management Comment
“For the most part, The Fedcap Group’s first half fiscal year 2020 results represented a continuation of the positive momentum we have experienced over the last several years,” said Christine McMahon, President and Chief Executive Officer. “We were continuing our growth trajectory, achieving favorable outcomes for the populations we serve, expanding our work internationally with the launch of a new contract in Canada, and looking forward to the expansion of our Career Design School offerings. Throughout the period, we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual/developmental disabilities, the previously incarcerated and those on public assistance. At the same time, we made investments to enhance our technology infrastructure through upgrades to our financial, HR, fundraising and business development platforms.
“With the onset of COVID-19, we turned our attention to rapidly and effectively responding to the crisis. We activated our Business Continuity Plan—focused on People, Workplace/Operations, Finances, Information Technology and Communications. We prioritized the health and safety of our employees, clients and communities by implementing new protocols, including strict sanitary and physical distancing procedures that adhered to or exceeded CDC guidelines. With respect to finance, we stress tested our liquidity against a wide range of likely scenarios, evaluated relevant Disaster Assistance and additional cash conversion opportunities, and succeeded in bringing in federal and philanthropic dollars to cover a portion of our increased operating costs. We ensured that our technology platform was capable of managing the shift to online learning and telehealth, and finally, provided frequent update to all of our stakeholders on the evolving situation,” said Ms. McMahon.
2020 Financial and Operating Metrics
The first half of fiscal 2020 revenues were $129.4 million. Lower year-on-year comparisons primarily reflect the downsizing of our home health business, which contributed revenues of approximately $10 million in last year’s first half, a COVID-19 revenue impact of approximately $3.5 million and the wind-down of a large project that was completed in 2019. In the first half of fiscal 2019, revenues were $145.3 million.
Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.
- Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of fiscal year 2020 we employed over 1,500 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings. During this pandemic client demand for Total Facilities Management has increased significantly, and we have worked diligently to meet the need.
- Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of 2020 we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services. We placed 5763 people in jobs and provided job retention services. We have continued to provide most of these services via video conferencing and technology platforms during the current healthcare crisis.
- Education and Occupational Healthrepresent growing bodies of work in the areas of early childhood services provided through Easterseals and assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. We provided services to 4421 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages—ending segregated employment in sheltered workshops. Transitioning this work to a telehealth model during COVID-19 has involved engagement of families and a learning curve for staff.
First half fiscal 2020 operating expenses were $130.8 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating loss of $1.4 million for this year’ first half, largely reflecting the impact of uncertainty about continued funding and allowable remote services at the start of the COVID crisis. We expect results in subsequent quarters of fiscal 2020 to stabilize and show some benefit from COVID-related opportunities and assistance.
During FY 2020 The Fedcap Group began the process of increasing its working capital line of credit to coincide with the many growth opportunities that exist.
At March 31, 2020 cash and marketable securities were $15.9 million compared to $22.2 million at the same time last year. Cash balance trends continue to reflect slow paying government funders, and The Fedcap Group is working diligently with these entities to ensure more timely payments for the services it provides.
Summary and Outlook
First half fiscal 2020 presented unprecedented operating conditions, and The Fedcap Group rose to meet these challenges.
Some of the organization’s activities during this period include:
- Front Line Work: COVID-19 has exposed some of the most vulnerable in society. In response The Fedcap Group’s front-line staff stepped up by:
- Deep cleaning over 18,000 square feet of facilities.
- Providing 27,214 pounds of food toiletries and other essentials 833 families through our child development centers and special education schools.
- Partnering with organizations to cook 120,000 meals in our commercial kitchen and deliver to the homeless and individuals in shelters.
- Provided childcare to health care providers and first responders.
- Pivot Service Delivery Model as a Result of COVID-19: As regulatory bodies and government guidelines reduced or, in most locations across our footprint eliminated our ability to provide in person services, we rapidly pivoted to the provision of online learning and telehealth services.
- 1400 staff were trained on remote work and the provision of telehealth services.
- Provided 6556 telehealth meetings over a 6-week period
- Expanded online educational platforms allowed us to continue to provide work readiness training and courses resulting in certification in high growth sectors.
“I could not be prouder of The Fedcap Group leadership and staff who have worked tirelessly to continue to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This demonstrates the strong culture that unites us and supports our confidence in The Fedcap Group’s ability to continue to effectively navigate the COVID-19 health crisis and to emerge from it as an even stronger organization.
“We are optimistic as we prepare for the “new normal” and are planning our approach to the path forward. While we continue to expect challenges ahead, we are operating with rigorous financial and risk management controls and procedures to manage our cost structure and conserve cash.
“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers, who are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. Specifically, we believe that demand for our on-premises Facilities Management Services will increase as will the need for our workforce training and development work to help get individuals back to work. Additionally, we see further opportunities for The Fedcap Group’s services and expertise in the education and public health arenas to address the increased needs of the populations we serve.
“The Fedcap Group has the unique ability to leverage complementary capabilities and qualifications across our organization to achieve positive outcomes for clients. Spanning 22 states and three countries, we are approaching our funders with innovative ideas about how to optimize service delivery within the ever-changing environment. Our leadership in providing relevant services, our strong financial position and the dedication of our staff give us confidence in The Fedcap Group’s ability to remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients,” said Ms. McMahon.
About The Fedcap Group
For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 265,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.
The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state and local government to improve the way services are designed, funded and delivered.
Conference Call Details
Date:05/14/20 at 11:00am EDT
Phone:
US: 1-844-792-3735
UK: 08002799489
Canada: 1-855-669-9657
Link to Webcast: www.fedcapgroup.org/results
Financials
Fedcap Rehabilitation Services, Inc. and Subsidiaries Statement of Financial Position
Consolidated Statement of Activities and Changes in Net Assets
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Perspectives on COVID-19 Long Term Impact
Perspectives on COVID-19 Long Term Impact
Like many of you, I am spending quite a bit of time reading, listening to interviews and podcasts, learning as much as I can about what the experts are saying about the post COVID-19 world.
In an interview yesterday morning on CBS Face the Nation, Eric Schmidt, former Google Chairman and CEO, said that the past two months has brought forth 10 years of forward change. I found his perspectives interesting and worthy of further discussion. Schmidt shared that the crisis has made the internet a necessity if one is going to be part of society—employment, education, consumerism, health care—all driven by access to the internet. He delved into the concept of telehealth, citing that 80 percent of medical appointments are now occurring via telehealth; that it is much easier for users and has been something people have been advocating for, only going into the doctor when absolutely necessary. Is this the future of health care?
He also discussed the potential need for employers to be much more flexible about the concept of where employees work, possibly considering more space if employees are going to come to the office and practice social distancing, implementing a hub and spoke system to minimize commuter travel, and of course carefully evaluating who really needs to come to the office. He emphasized that the crisis has uncovered the weaknesses in the technological infrastructure in rural parts of America as well as some city and state governments—stating that increased access to broadband and upgraded hardware must be part of the post COVID-19 environment.
Forbes also took an interesting approach to their examination of the future in an article by Tracy Brower predicting how COVID-19 will change the future of work. Some of the things that rang true in the article for me include:
Employers will maintain the expanded support they provide employees. Many employers have added to employee support systems as a result of the coronavirus crisis, and I agree that it is likely this new programming will be maintained, including support for employee mental health and overall wellness. We have all learned in profound ways the importance of employee engagement, and this knowledge should drive our approach to employee communication.
Leadership will improve. In the toughest times, the leaders who excel are those who communicate clearly, stay calm and strong, demonstrate empathy, think long-term and take appropriate decisive action. These are the leaders who leverage the crisis as an opportunity to improve systems and service delivery.
Company culture will become a focus. Like leadership, company culture is paramount to an organization’s success. Brower suggests that is it very likely companies will increasingly acknowledge the importance of culture as context for performance and employee engagement.
Work will become more flexible. Many companies have been resistant to letting employees work from home, but as Brower states, “this unexpected global work-from-home experiment has forced companies to accept it as a legitimate option.” Many of us have increased our technology infrastructure and software options to facilitate remote work. “Teams are figuring out how to collaborate at a distance and leaders are improving their ability to manage based on outcomes and objectives rather than presence, leveraging a growing comfort with technology,” says Brower.
Innovation will flourish. As I have shared in previous blogs, innovation often stems from crisis. We are forced to imagine new solutions, new ways of seeing problems. “Companies will learn from the requirement for greater innovation and create the conditions for expanded levels of creativity, exploration and problem solving,” indicated Brower.
I suspect a bit of all of the above will be true. We will adapt, we will learn, we will evolve and eventually, most companies will come out the other side stronger.
COVID-19: Impact on Philanthropy
COVID-19: Impact on Philanthropy
The Coronavirus pandemic has inspired help and support from all levels of society, from billionaires to corporations to individuals around the world, as the crisis brings us together with a common purpose, whether it is offering support to health care organizations and workers or a neighbor in the building who is unable to go out for groceries. Because much of what we are doing in providing these critical services is unfunded, many of us have looked to our donors and foundations for help.
There is a lot being discussed about demand vs capacity.
Aaron Dorfman and Bethany Maki from the National Committee for Responsive Philanthropy indicated that we are in “a perfect storm of nonprofit challenges including high demand, an uncertain economy, a constantly changing news cycle, and a real fear for the future. Nonprofit leaders must urgently strategize about how to help those affected while at the same time keep their organizations afloat.”
According to the National Council of Nonprofits, this perfect storm will continue for some time and will result in a growing awareness that “every nonprofit organization (and their board) must become active and vocal advocates for policies and funding to meet the needs of the most vulnerable.”
“Leading during times of turmoil, whether organization-wide or society-wide, can be demanding, bewildering, taxing, and exhilarating,” warns Alex Counts in the Chronicle of Philanthropy. “Today leaders must focus on ensuring organizational survival and adapting programs to the limitations and demands of this difficult moment.” While the nature of the work remains the same, in some cases the volume has changed dramatically. “In other words, it has required a major, rapid—and almost certainly imperfect—re-engineering of programs.” Counts is an adjunct professor of public policy at the University of Maryland and founder of Grameen Foundation.
So, what do we do?
- We should work hard to stay connected to our donors. At The Fedcap Group we are posting short videos from our Board Chair as well as others on our website (and other companies of The Fedcap Group) about what we are doing during this time of crisis and why we need our donors’ help.
- We should continue to tell the important stories of our work.
- We should hold video conferences with select donors.
- We should structure giving into smaller, monthly payments that automatically renew. This provides a stable and predictable income stream, and it provides a pool of baseline donors to move up the giving ladder.
- We should engage in significant digital philanthropy. With digital phones powering every human’s life, mobile donations are starting to become a trend in the world of philanthropy. Donors can contribute using their credit cards linked to the mobile payment systems on smartphones (i.e. Apple Pay, Android Pay, Samsung Pay), making transactions and sending donations easier than ever.
This unique time calls for creativity as we remain clear about our mission and leadership. Strengthening relationships—and improving communications with donors as well as our clients and staff—is more important than ever.
Crisis Can Drive Innovation
Crisis Can Drive Innovation
Crisis stimulates innovation, and war, with all of its horror, tends to be a petri dish for innovation. In researching this topic I learned that canned food was developed as a way to safely feed troops during war time, and duct tape was originally invented because the military needed a waterproof tape that could be used to keep moisture out of ammunition cases. I learned that because the English love their tea, and it was challenging to make tea on the battlefield, the tea bag was born. By packaging tea in small bags that could be dropped right into a pot of boiling water, the issue of tea on the battlefield was resolved. And medical progress meant wounded soldiers could survive wounds that would have been fatal in earlier wars, but that often meant living with severe injuries. A New Zealand-born surgeon, Harold Gillies, came up with ways to graft skin, bones, and muscles, paving the way for plastic surgery.
The Coronavirus pandemic—another kind of battle— has also driven companies across the world to new kinds of innovation.
Many of us are using a video platform to provide services to clients that we used to do in person.
We were used to in-person meetings—felt that in many cases they were a necessity—only to find that we can be more efficient, reduce travel and share information easier by using video conferencing.
We thought that classroom learning was a bedrock to child education (and still believe that in-person interactions are a critical part of child development) only to learn that much can be absorbed by children online.
And at The Fedcap Group we were looking for creative ways to connect our nearly 4,000 employees across our international footprint. During this crisis, Java Junction was born—where once a month staff from across our footprint join small Zoom groups to discuss topics such as music, poetry, meals, TV shows, podcasts, gardening, desk exercises and many more.
I anticipate many more innovations to come.
I believe that we all need to consider how we redesign workspaces in order to open up programs and services and bring staff back to work.
I think it will be imperative that we continuously practice some kind of “remote work” fire drill—ensuring that we are flexible and can react on a dime as the need dictates.
And I believe that we will need to innovate in areas of Talent Acquisition. Forbes, Korn Ferry, McKinsey are all talking about the need to future-proof leadership. What does it mean to have leaders who are fully prepared for an uncertain future in which turning on a dime may be the norm?