Francis X. Ryan, CPA MBA Frank is president of a management consulting firm specializing in turnarounds, workouts, crisis management, strategic planning and working capital management. He has extensive experience working with banks in negotiating forbearance agreements, loan workouts, capital restructuring, vendor negotiations and bank lending requirements. Prior to his consulting business, Mr. Ryan was the chief operating officer of a mid-sized manufacturing company. Additionally, he is the chairman of the Audit Committees of two publicly traded companies and has extensive board level experience in the for profit and non-profit arenas. He is a retired Colonel in the United States Marine Corps and has served in numerous contingency operations to include Haiti, Afghanistan and Iraq. He received the "Outstanding AICPA Instructor" award in 1994-95, & again in 2005-06 Frank is a recipient of the AICPA Outstanding Discussion Leader Award for 2007.
Jeff Fuchs Jeff Fuchs is the Director of The Maryland World Class Consortia, a non-profit organization dedicated to helping Maryland companies achieve process excellence using lean manufacturing and Six Sigma techniques and strengthening the Maryland economy. The MWCC is a collaborative partnership with over 50 companies, including manufacturers, engineering firms, hospitals, and others, all dedicated to the continuous pursuit of perfection. Jeff is also President of Neovista, a process improvement consulting firm based here in Baltimore. His current focus is on organizational culture, change management, lean leadership, and lean in nonmanufacturing and in high-variation, low-volume applications. Neovista clients have included Raytheon, Lockheed Martin, Halliburton, BP, GlaxoSmithKline, the United States Air Force, the State of Maryland, as well as many other small and mid-sized organizations across the United States and internationally. Jeff holds a B.S. in Aerospace Engineering from West Point. Prior to his consulting career, he managed quality, engineering, and manufacturing operations in the automotive, machining, and aerospace industries. In recent years, Jeff has played a central role in the development of the first nationallyrecognized lean certification. He is also on the Board of Examiners for The Shingo Prize for Operational Excellence, which has been called The Nobel Prize of business performance.
Wayne Spurrier is VP DIXON/GM Boss Division at the Dixon Valve and Coupling Company based in Chestertown, MD. Dixon manufactures and distributes air, oil, steam and water fittings, as well as clamps, swivels, and valves for a wide variety of industries. Mr. Spurrier has more than 25 years' experience at Dixon, including positions in purchasing and sales. He is a graduate of Washington College, with a degree in Economics.
Surviving the Recession Presented by: Francis X. Ryan, CPA, MBA Jeff Fuchs, Development Director The Maryland World Class Consortia Wayne Spurrier, VP DIXON/GM Boss Division, Dixon Valve and Coupling Company Revised 06/05/2009 1 Introduction of Panel 2 1
Panel Description The current financial crisis is forcing many firms to examine business alternatives to survive in these challenging times. The objective today is to help you navigate these troubling times and improve your chances of surviving and thriving in turbulent markets. 3 Topics Key Indicators of Financial Stress Dealing with your customers Dealing with your employees Dealing with your suppliers Dealing with your lenders Dealing with your government 4 2
Dealing with Customers Develop criteria for good customer Evaluate your entire customer base using the good customer criteria Emphasize supplying your best customers Rehabilitate your bad customers or shed those sales An uncollected sale is not a sale. It is a bad debt Accounts Receivable is a use of funds 5 Dealing with Employees Develop criteria for good employee Evaluate all employees using this criteria Determine if a layoff is needed to stem losses Communicate openly with your employees about the financial problems Emphasize confidentiality of internal issues Ask employees to develop plans to reduce costs DO NOT KEEP EMPLOYEES IN THE DARK EMPLOYEES ARE NOT EXPENDABLE. What you do with staff at this time will determine if you will survive. 6 3
Dealing with Suppliers Your supplier may be in greater financial stress than your company Your supplier s financial problems can quickly become your own Meet with your supplier regularly Do not use your supplier as a source of funds (Days Payable Outstanding governance metric) Increase financial and marketing communications Communicate bad news quickly. Do not over commit or over promise. INTEGRITY is key during such periods of stress 7 Dealing with Lenders Your lender may be in greater financial stress than your company Your lender s financial problems can quickly become your own Meet with your lender regularly Increase financial and marketing communications with your lenders Communicate bad news quickly. Credibility is a key during periods of financial stress Do not over commit or over promise. INTEGRITY is key during such periods of stress Maintain contacts with other lenders Be realistic about your expectations from your lenders. 8 4
Dealing with the Government You have an obligation to pay payroll taxes Personal liability of control persons Better to not pay payroll than to pay the payroll and not pay the payroll taxes Penalties are huge Be open and honest with the IRS and State taxing agencies. They will work with you. 9 Thank you for your participation in today s program. 10 5