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How to Seize the EV Fleet Charging Opportunity

Services to support charging electric vehicle (EV) fleets could be worth $15 billion in annual revenues and cost savings. Much of that activity would come from three activities, according to a McKinsey & Co. article by Rob Bland, Wenting Gao, Jesse Noffsinger and Giulia Siccardo: Procuring renewable power directly from the source. Offering energy management services. Providing ancillary grid services. Four elements will need to be in place for companies to capture the opportunities in the EV fleet charging market, according to the authors: Hardware and software integration. Digital, analytics and connectivity. Large base of installed EV chargers. Access to price signals. Click for article

COVID-19: 3 ECONOMIC SCENARIOS 

A McKinsey & Co. report on coronavirus examines three global economic possibilities. A quick recovery, which the authors call "least likely," would include contained intracomplex transmission, with economic impacts limited largely to Q1. The base case is a global slowdown, which would include sustained intracomplex transmission, with a 2020 global slowdown. The pessimistic case would involve a global pandemic and a 2020 recession as transmission jumps and new complexes develop.  Click for report  

COVID-19 Planning Checklist

McKinsey & Co.'s 23-box checklist provides business leaders with specific actions to: Protect Employees  Follow the most conservative guidelines available among leading global and local health authorities (e.g., CDC, WHO).  Communicate with employees frequently and with the right specificity. Support any impacted employees per health guidance.  Benchmark efforts (e.g., certain companies curbing nonessential travel to all countries with community transmission). Stand Up a Cross-Functional COVID-19 Response Team  Designate overall at the C-suite/CEO-1 level. Team should be cross-functional and fully dedicated.  Appoint five workstreams: a) Employees. b) Financial stress-testing and contingency plan. c) Supply chain. d) Marketing and sales. e) Other relevant constituencies.  Define specific, rolling 48-hour, one-week goals for each workstream based on planning scenario.  Ensure a simple but well-managed operating cadence and discipline. Output- and decision-focused. Low tolerance for “meetings for the sake of meetings.”  Deliver minimum viable products: a) Rolling 6-week calendar of milestones. b) One-page plans for each workstream. c) Dashboard of progress and triggers. d) Threat map. Base Goals on Workstreams (vs. employees) Financial Stress-Testing and Contingency Plan  Define scenarios that are tailored to the company, including global slowdown over multiple durations. Identify baseline planning scenario.  Identify variables that will affect revenue and cost. For each scenario, define input numbers for each variable through analytics and expert input.  Model cash flow, P&L, balance sheet in each scenario. Identify input variable triggers that could drive significant liquidity events (including breach of covenants).  Identify trigger-based moves to stabilize organization in each scenario (A/P, A/R optimization; cost reduction; portfolio optimization through divestments, M&A). Customer Care  Protect customers (e.g., no penalties for cancellations, waiving fees, flexible booking models).  Preserve customer loyalty (e.g., premium discounts, loyalty packages). Supply Chain   Define extent and timing of exposure to areas that are experiencing community transmission (Tier 1, 2, 3 suppliers; inventory levels).  Immediate stabilization (critical parts rationing, optimize alternatives, prebook rail/air freight capacity, after-sales stock as bridge, increase priority in supplier production, support supplier restart).  Medium-/longer-term stabilization (updated demand planning and network optimization – solve for cash, accelerated qualification for alternative suppliers, drive resilience in supply chain). Marketing and Sales  Immediate stabilization (inventory planning, near-term pricing changes, discounts).  Medium-/longer-term stabilization (investment and micro-targeting for priority segments with long-term growth).  Examine online vs. branch strategy (e.g., in China now, no footfall traffic in major metropolitan areas but significant online demand; investing much more in digital). Practice Plan With Top Team Through In-Depth Table-Top Exercise  Define activation protocol for different phases of response (e.g., contingency planning only, full-scale response, other).  Key considerations: Clarity on decision owner (ideally a single leader), roles for each top team member, “elephant in room” that may slow response, actions and investment needed to carry out plan. Demonstrate Purpose  Support epidemic efforts where possible.  Click for full report, including supply chain actions to consider.

PEI Shares COVID-19 Resources 

PEI is in contact with U.S. officials overseeing the COVID-19 response and offers resources relevant to PEI members.  COVID-19 is caused by a member of the coronavirus family that’s a close cousin to the SARS and MERS viruses that have caused outbreaks in the past.   The disease is caused by a virus named SARS-CoV-2 by the International Committee on Taxonomy of Viruses.    COVID is short for coronavirus disease. Symptoms of COVID-19 can include fever, runny nose, cough and breathing trouble. Most develop only mild disease. But some people, usually those with other medical complications, develop more severe symptoms, including pneumonia, which can be fatal.  

Will SECURE Act Change Your Retirement?

The Small Business Legislative Council on Jan. 28 provided a webinar called “Understanding the SECURE Act — What it Could Mean for You." Paula Calimafde, an attorney with Paley Rothman Law Firm and president and general counsel of the SBLC, presented. Most retirement plan changes, Calimafde said, are minor. Some changes will be helpful, but others will cause more work for small plans. The open multiple employer plan (MEP) change will be important, she said. A MEP, or pooled provider plan, is a group of plans that band together for lower plan administration costs, lower investment fees in mutual funds investments and reduced fiduciary responsibility. MEPs no longer will be burdened with filing annual IRS forms. The SECURE Act removed two roadblocks that historically kept small businesses from joining MEPs, Calimafde said. Plan administrators have cast doubts on the ability of a MEP to reduce administrative fees, but other advantages will be significant, she said. What remains unclear is how much flexibility regarding investments and plan design an employer will have to give up to join a MEP, she said. The most significant change for those who already have saved for their retirement is the elimination of the stretch IRA, Calimafde said. A recent Forbes article explains the terminology and what you need to know about changes to your retirement. Click for article

Will SECURE Act Change Your Retirement?

The Small Business Legislative Council on Jan. 28 provided a webinar called “Understanding the SECURE Act — What it Could Mean for You." Paula Calimafde, an attorney with Paley Rothman Law Firm and president and general counsel of the SBLC, presented. Most retirement plan changes, Calimafde said, are minor. Some changes will be helpful, but others will cause more work for small plans. The open multiple employer plan (MEP) change will be important, she said. A MEP, or pooled provider plan, is a group of plans that band together for lower plan administration costs, lower investment fees in mutual funds investments and reduced fiduciary responsibility. MEPs no longer will be burdened with filing annual IRS forms. The SECURE Act removed two roadblocks that historically kept small businesses from joining MEPs, Calimafde said. Plan administrators have cast doubts on the ability of a MEP to reduce administrative fees, but other advantages will be significant, she said. What remains unclear is how much flexibility regarding investments and plan design an employer will have to give up to join a MEP, she said. The most significant change for those who already have saved for their retirement is the elimination of the stretch IRA, Calimafde said. A recent Forbes article explains the terminology and what you need to know about changes to your retirement. Click for article

YOU CAN BUY CITIZENSHIP ... IF YOU'RE RICH ENOUGH

The Henley & Partners Passport Index reports nearly 100 countries offer residence and citizenship by investment programs.  "For individuals, the key benefits of holding an alternative passport include expanded travel mobility, access to business and educational opportunities on a global scale, ease of asset diversification, and improved safety and security in a rapidly changing world," according to Henley & Partners. "For host countries, the foreign direct investment secured through these programs creates both sovereign and societal value. Debt-free liquidity is injected into the economy, resulting in additional capital flows both to the public sector — encouraging fiscal autonomy, diversifying the economy, and creating employment opportunities — and the private sector, in the form of investments in existing enterprises, infrastructure, start-ups, and real estate." The index ranks the world's passports according to the number of destinations a holder may access without a prior visa.  Click for report

Mindsets, Practices of Excellent CEOs

A recent McKinsey & Co. article states only 3 in 5 new CEOs live up to performance expectations during their first 18 months on the job. "The high standards and broad expectations of directors, shareholders, customers, and employees create an environment of relentless scrutiny in which one move can dramatically make or derail an accomplished career," write Carolyn Dewer, Martin Hirt and Scott Keller. The authors began with the six main elements of the CEO’s job. Then, they broke those down into 18 responsibilities that fall exclusively to the CEO.  Next, they mined their database on CEO performance, which contains 25 years of data on 7,800 CEOs from 3,500 public companies across 70 countries and 24 industries.  The result is a model for CEO excellence, which prescribes mindsets and practices likely to help CEOs succeed. "What follows is a detailed look at these mindsets and practices," the article states. "Although our findings are most relevant to CEOs of large public companies, owing to our research base, many will also apply to CEOs of other bodies, including private companies, public-sector organizations, and not-for-profit institutions." Click for article

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