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AgendaDescription Presenter

Welcome Taylor Randall

Governor’s Remarks Governor Gary Herbert

Introduction Spencer P. Eccles Managing Director, Cynosure

Lead Pandemic Presentation Mike Leavitt

Economic Panel to Discuss Seven Key Considerations:1. How long will this last? Could this kind of interruption happen again? (Steven Alder)2. What government help can I count on? (Miles Hansen)3. How can I preserve the human capital of my business? (Scott Schaefer)4. How reliable is my supply chain? (Taylor Randall)5. How should I approach my financial partners? (Jill Taylor)6. How can I best connect with my customers? (Andrea Thomas) 7. Suggestions for managing through a crisis. (Senator Mitt Romney)

Moderator: Mike Leavitt

Audience Q&A Moderator: Mike Leavitt

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Audience: Ask Questions Using Chat

Q&A

www.leavittpartners.com801-538-5082

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Steve Alder, PhDHealth EcologistUniversity of Utah

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How long will this last? • We are past containment—now our strategy must be to manage• Preventive measures can reduce transmission, yet rates will rise

when we lift restrictions• Most people who are infected with SARS-CoV-2 will have mild

symptoms (~81%)—good and bad• “Herd immunity” requires that 55 – 60% of people develop

antibodies• What can we expect:

• This is a long-term challenge: be prepared for it to go beyond 6 months• Make adaptations to be able to function under conditions of ongoing

periodic restrictions• Social restrictions in Utah appearing to be reducing transmission;

ongoing efforts will be to “flatten the curve”

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Miles HansenPresident & CEOWorld Trade Center Utah

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What government help can I count on? $2 Trillion CARES Act: What to Know and Do Now• Paycheck Protection Program (PPP)

• < 500 Employees and Contractors• 2.5 times average monthly payroll (<$10mm)• 1%, no payments for 6 months, loan due in 2 years• Funds to cover payroll, rent, mortgage interest, and utility

costs for 8 weeks from loan date will be forgiven if headcount maintained (rehire if necessary)• Apply immediately through SBA-approved lender.

• Economic Injury Disaster Loan (EIDL)• Up to $2 million, $10k advance upon application, 3.75%/30-year term• Apply immediately through the SBA: covid19relief.sba.gov• Utah Leads Together Bridge Loan: employees < 50, $5-$20k, 0% for 5 years

• Details and More Programs & Resources at: coronavirus.utah.gov/business

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Scott SchaeferJohn W. McIntyre Endowed Chair for Free Market Economics Marriner S. Eccles Institute for Economics & Quantitative AnalysisUniversity of Utah

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How can I preserve the human capital of my business?

Make decisions about your workforce:• Learn the details of CARES• Layoffs vs Furloughs vs Part-Time work• Focus on preserving skills, capabilities, and human capital

essential to your business

Redesign HR and organization for a stop-and-start recovery• Who needs to be kept on, who can come on and off flexibly• Cross-train and sacrifice quality for generality• Invest your time wisely to create a learning opportunity

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Preserve the capabilities of your organization

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Taylor RandallDean, David Eccles School of BusinessUniversity of Utah

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How reliable is my supply chain?

Immediate Action Plan: Look For Cash

1. Use a team from finance, purchasing and sales.

2. Who can you collect from?

3. Who can you delay payment to?

4. Who needs my inventory?

5. Be wary the long-term tradeoffs.

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State of the World

Supply Shortage Demand Shortage

Examples: • Electronics (components)

• Grocery (toilet paper)• PPE (surgical masks)

• Restaurants• Physical retail

shops• Hotel rooms

CustomerQuestions:

• Who gets the scarce product?

• Can I find alternative solutions for my customers?

• Do I have contractual obligations?

• What about prices?

• How can I extend my business?

• Who will take inventory off my hands?

SupplierQuestions:

• Where can I find more supply?

• Should I contract for more capacity?

• Will my suppliers be in business?

• What terms should I ask for?

Must reduce working capital to survive…BUT……must increase working capital for medium term success.

Week 2 Action Plan: Start Thinking Strategically

1. Decide how COVID-19 affects demand and supply?

2. Perform supply chain triagea) Map each step of the chain.b) Identify risk and weakness.

3. Take actiona) Build inventoryb) Build redundancyc) Change geographic locationd) Reduce human touche) Extend business reach

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Jill TaylorChief Sales Officer, Stampin’ UpFormer President, Key Bank

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How should I approach my financial partners? Old News:• Confidence in management teams

• Business and industry expertise• Risk and opportunity management• Communication

• Partnership and transparency• Good financial statements• Quality business projections• Proactive and responsive

New News:• Banks better prepared

• More capital• More liquidity

• Resources available• New loan programs• Register your bank for PPP• 6-month deferral on SBA

• Regulatory guidance• Work with customers

• Enhanced due diligence• Be patient

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Andrea ThomasProfessor of Marketing, Assistant Dean of Undergraduate StudiesDavid Eccles School of BusinessUniversity of Utah

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How can I best connect with my customers? 6.

Emotional engagement is always more powerful that rational satisfaction4

Uncertainty is stressful –be empathetic and patient1

It is not business as usual –adjust your tone accordingly2

Communicate frequently and transparently to build trust3

Consider the lifetime value of each customer while making decisions5

Be adaptable without compromising your brand purpose6

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Mitt RomneyUnited States Senator

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Suggestions for managing through a crisis7.

Receivables Strategy Marriott

Connect & Communicate Fear factor

Redesign for Tomorrow Bain

Focus, Focus, Focus Vetco-Gray

Divide & Delegate2002 Olympics

Payables Perspective Near bankruptcy

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Summary of Key Action Items

1. Start thinking about COVID-19 as a long-term risk that needs to be managed, not a short-term issue that can be solved

2. Study the CARES Act

3. Contact your banker

4. Understand your cash position related to your supply chain

5. Make labor decisions

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Future Workshops: Every Tuesday and Friday

• Tuesday, April 7th 11am-1pm: Workforce decisions and the CARES Act• Friday, April 10th 11am-1pm: Macroeconomic Environment & Small Businesses

• Future Topics:• Finance and Banking Issues• Managing Customers and Supply Chains• Industry specific seminars in Healthcare, Construction, and Non-Profit

• To Register:

• Visit Eccles.Link/MikeLeavitt• Or reach out to navigatingcovid@Eccles.Utah.edu for more information

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For More Information:University of Utah Executive Education

Online Classes Available: • Growing in Uncertain Times• Lean Six Sigma Green Belt Online• Competitive Strategy• Developing a Digital Marketing Plan

Download the At-A-Glance Calendar and Register:

• UtahLeaders.com

• 801-587-7273

Leavitt Partners

Driving strategy to advance value:

• Strategic planning • Bridging health care and public health• Federal policy intelligence and advocacy• Problem-solving convening

Visit LeavittPartners.com or email Bo Nemelka at Bo.Nemelka@leavittpartners.com for more information.

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