B U S I N E S S P U
For several years, The Nicolet First time on the CEOs’ plate:
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
CEO they’ve never seen before. Since
October, when the whole world
Challenges: changed, CEOs in Northeastern
Wisconsin have been rapidly
reordering business priorities.
9 in ’09 Some of the old challenges are
still hanging on, but CEOs say
it’ll be a Brave New World in the
brand new year.
Last week, The Nicolet Bank
Business Pulse© asked CEOs
what they were thinking, doing,
(wishing and hoping, too?)
It’s ALL about Sales…
As it was last year (and the year
before that), the Top Challenge
CEOs say they’ll face is Increasing
Sales. In fact, Increasing Sales
jumped from 47% saying it was
a Very Significant challenge to
77% saying the same this year;
18% said Sales would be a
Moderately Significant challenge;
NO ONE said Sales would not be
a challenge in the year ahead.
(NOTE TO CORPORATE SALES
CONSULTANTS: Get out the
“Smile and Shoeshine” Kits.)
Executive Summary:
Data Collected
December 5-12, 2008
“I’m not getting information; I'm not managing.”
John Torinus, President & CEO — Serigraph, Inc
L S E©
53% said the challenge of
Operating in the Context of
Financial Uncertainty will be a
Very Significant challenge in 2009;
32% said a Moderately Significant
challenge. From nowhere on the
radar to a strong Number Two –
it’s an impressive move against
the more “routine” CEO challenges
of Sales, Marketing, Healthcare
Costs. Everything has changed
significantly – and quickly –
since October.
Handling Increasing Health Insurance
Costs dropped like a rock to third
place on the CEOs’ Top Challenges
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, it’s 33%. The
decline may reflect the changes
CEOs have made over the last few
years as well as some slowing of
healthcare inflation, but chances
are CEOs have bigger Fish to Fry!
(See Challenges #1 and #2.)
Other Very Significant challenges for
20-to-30% of NEWi CEOs include:
Improving Quality of Marketing
Efforts (30% Very Significant),
Operating with Increasingly Tight
Credit (28%), Retaining Quality
Employees (25%) and Developing
New Products/Services (22%).
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
The top CEO challenges for 2009
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
about 6.7% nationally, it is Handling the Increasing Energy
somewhat lower in Northeastern Costs dropped from 21% saying
Wisconsin. it was Very Significant last year to
just 9% this year. This is proba-
The Appleton MSA unemployment bly a reflection of seeing prices
level was 4.2% in October; Green at the pump dramatically lower
Bay MSA was 4.4%. These rates since October, but more likely a
are slightly higher than 2007 vote of No Confidence that the
when Appleton was at 4.1% worldwide economic slowdown
and Green Bay at 4.2%. Goods will keep demand for energy low
producing businesses are and price per barrel, soft.
somewhat less concerned about
Recruiting Quality Employees (10%
Very Significant) compared with
service providing organizations Summary
(25% Very Significant). With the very significant changes
in the worldwide economic
situation since October, two
brand new challenges were
added to the CEO priority list
77% this year: Operating in the Context
of Financial Uncertainty and
53% Operating with Increasingly
Tight Credit. CEOs said both
33% challenges will be of significant
concern in the months ahead.
30% It appears that 2009 is shaping
up to be a year of unique
28% challenges for CEOs in NEWi!
A key ingredient to success is how
25% the overall economy performs.
Several economic forecasts –
22% including the Third Quarter
Nicolet Bank Business Pulse©,
19% suggest a long road to recovery.
It will surely test the leadership
skills of NEWi CEOs.
19%

Handling Energy Costs 9%

0% 20% 40% 60% 80%

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) and
Menominee, 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; david@intellectualmarketing.com