Steve Loranger Offers an Exit Strategy
Question: How can companies survive the financial crisis?
Steve Loranger: It is uncertain. But what is not uncertain is we’ll get through this. I can’t predict when. But nonetheless, we do know that the underlying demographics in the global needs for a strong global economy is still there. We’re going to add 3 and a half billion people to the earth in the next 50 years. We’re transitioning. And that is a challenge I understand. And we are transitioning a 150, 200 million people per year from what would be called, the classification of lower class or poverty to middle class, and that drives consumption. So we’ll get through these economic times, hopefully, with more discipline and focus than what we had in the past. So how do we think about this at ITT? It’s really a two prong approach. One, you got to keep the ship afloat. And that means, focusing on your customers, focusing on cost, your costs breakeven in focusing on your cash and liquidity, keeping your employees engaged and inspired, and making sure that your long-term strategies are on track. That’s our formula for the short-term. So we are working very, very hard to make sure that we do maintain our liquidity and we maintain our cost position. I’ll come back to that.
But then, with respect to the future, we have to be undaunted by this economic scenario and be a little, be consistent in terms of our view. So even though we are doing a lot of discretionary cost reductions, we’re taking some tough prioritizations, we’re not compromising our long-term future. This is not a time to burn the quarter, excuse me, to burn the furniture to make the quarter. This isn’t the time for that.
Now, our economic model is in pretty good shape because of the nature of the business and the way we run it, as I mentioned. But nonetheless, we do have to respond. But the real key to the future is to be able to make sure that we’re taking this time to seize on the advantage, whether it’s evaluation for an acquisition, whether it is to move into market share, where a competitor has decided to retrench, or whether it’s to generate a new level of loyalty with the customer because they need us in times when it’s tough for them and they’ll remember it when times are good. And so, these strategies of us, maintaining our focus on the long-term are very, very important to us.
And let me just cycle back for a minute to the centerpiece of your question, which was cost and cash. Clearly, 30-30 rule applies. We’ve been very ambitious on reducing our cost, not just peanut butter spread but reducing our cost in areas where we can prioritize and make effective decisions. We’re driving restructuring. We’re consolidating facilities. We are moving lines to lower cost regions. And in some cases, we are streamlining organizations and we do have some head count reductions. So making sure we stay ahead of the game on cost is very, very important. We also want to maintain a real discipline on cash flow. So we’re looking at receivables every day. When we have a receivable that looks out of line, we’re making, we’re taking quick action. We want to make sure that our cash flow conversion maintains a really, really good conversion ratio to net income right now. We also have been reducing our capital expenses. And we have other strategies where we have not deployed them, but we know what we would do if you saw further credit markets lock up. And so, as an example, what we’re trying to do is say, with respect to cost and cash and, of course, on the revenue side, making sure that the business stays right-side-up. There’re a lot of companies out there that are in deep financial trouble and in strategic trouble. We’re not one of them but we’re not planning on being one of them. And so, having that focus each and every day is really, really critical in this economy.
Question: Which companies are weathering the economic storm well?
Steve Loranger: Well, I think a lot of them are. I think, reflecting on even what I’m saying is not unusual. I know United Technologies. I happen to be a board member on the FedEx Corporation. And I know at FedEx, the FedEx team is doing very much the same thing. You know, looking at capacity, looking at cost, you know, being conservative on capital spending, and so forth. So every company has a little different lever that they’re pulling but I would say that we do find that the high quality, multi-industry companies that I watch, a lot of them are doing the same thing.
Recorded on: May 13, 2009
ITT has a plan for sustainability in the financial crisis.
These thought leaders, founders, and entrepreneurs are propelling the kind of future we want to be a part of.
- The tech industry may be dominated by men in terms of numbers, but there are lots of brilliant women in leadership positions that are changing the landscape.
- The women on this list are founders of companies dedicated to teaching girls to code, innovators in the fields of AI, VR, and machine learning, leading tech writers and podcasters, and CEOs of companies like YouTube and Project Include.
- This list is by no means all-encompassing. There are many more influential women in tech that you should seek out and follow.
The results of this study showed depressive symptoms being highest in adolescence, declining in early adulthood and then climbing back up again into one's early 30s.
- A 2020 Michigan State University study examined the link between teen social networks and the levels of depression later in life.
- This study used data from the National Longitudinal Study of Adolescent to Adult Health, specifically targeting social network data. The results showed depressive symptoms being highest in adolescence and declining in early adulthood, then climbing back up again into one's early 30s.
- There are several ways you can attempt to stay active and socially connected while battling depression, according to experts.
The study suggested that teenagers who have a smaller social circle showed higher rated of depression later on in life.
Credit: asiandelight/Shutterstock<p><a href="https://www.eurekalert.org/pub_releases/2020-09/msu-tsn093020.php" target="_blank" rel="noopener noreferrer">A 2020 Michigan State University study</a> examined the link between teen social networks and the levels of depression later in life. The results of this study suggested teens who have a larger number of friends in adolescent years may be less likely to suffer from depression later in life. These findings were especially prominent in women.</p><p>This study used data from the National Longitudinal Study of Adolescent to Adult Health, specifically targeting social network data. This data asks students to select up to 5 male and 5 female friends and indicate how often they felt depressive symptoms. </p><p>MSU Sociology Assistant Professor Molly Copeland and lead author Christina Kamis (Sociology doctoral candidate at Duke University) published the study in the Journal of Health and Social Behavior in September. </p><p><strong>Female teenagers may struggle more with depression during their teen years but show fewer depressive symptoms later in life.</strong> </p><p>For female adolescents, popularity can lead to increased depression during their teen years. However, this ultimately may lead to lasting benefits of fewer depressive symptoms later in life. "Adolescence (is) a sensitive period of early life when structural facets of social relationships can have lasting mental health consequences," Copeland wrote, adding that "compared to boys, girls face additional risks from how others view their social position in adolescence."</p><p>Throughout this study, men showed no association between popularity and depressive symptoms, however, they did show benefits from naming more friends. As for why this is, Copeland has a theory: perhaps the expectations on young girls (compared to young boys) as well as the roles that lead to popularity can create a kind of stress and strain felt more prominently by girls than boys. </p><p>While this does create more difficult teen years for young girls, the stress and strain may lead to giving these girls a psychological skillset that benefits them later in life, allowing them to deal with stressful situations more easily.</p><p>The study also suggested that teenagers who have a smaller social circle showed higher rates of depression later on in life. </p><p><strong>Results from both men and women followed a U-shaped trajectory of depressive symptoms.</strong></p><p>The results showed depressive symptoms being highest in adolescence and declining in early adulthood, then climbing back up again into one's early 30s. This was particularly more noticeable in women, who showed a steeper decline in symptoms between the ages of 18-26, followed by a more rapid increase in symptoms in their early 30s. </p>
How to stay social while battling depression<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDQ1MjA3MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxNDMyNDY1N30.e1ULIJ5QYXh4H1SGUPUTJqYBCnX2XWp6InjPRr-2Bdw/img.jpg?width=1245&coordinates=0%2C22%2C0%2C22&height=700" id="832fd" class="rm-shortcode" data-rm-shortcode-id="b360bb24fb8d6025680bfffb52fd5982" data-rm-shortcode-name="rebelmouse-image" alt="depression support group illustration" />
Attending support groups, planning activities with family or even just a weekly phone call to a friend can help alleviate depression.
Credit: Mascha Tace/Shutterstock<p>Although maintaining relationships can help you cope, it can also be one of the most difficult things to do when you're experiencing depression.</p><p>As Dr. Jennifer L. Payne (an assistant professor/co-director of the Women's Mood Disorders Center at Johns Hopkins Hospital in Baltimore) <a href="https://www.everydayhealth.com/hs/major-depression/staying-socially-active-with-depression/" target="_blank" rel="noopener noreferrer">tells Everyday Health</a>: "One of the common symptoms of depression is social isolation." </p><p>Payne goes on to explain that you can "soak up some energy" by simply being around other people, moving around, and staying active.</p><p><strong>Creating a daily schedule and planning activities ensures action. </strong></p><p>While it may be easy to turn down last-minute plans, it's more difficult to cancel plans you've already committed to with friends and family. While it's important not to overwhelm yourself with a packed schedule, creating a minimal daily schedule that involves seeing friends and family or doing activities that you've previously enjoyed can ensure you stay active and often makes you feel more accomplished at the end of each day. </p><p><strong>Support groups and social networking with people who understand. </strong></p><p>While depression can very easily make you feel isolated and alone, surrounding yourself with others who may be struggling with depression as well can help in multiple ways. You will have peer support from people who relate to how you're feeling plus the added benefit of being around people, which can raise your spirits. </p><p><strong>Keeping a journal (and setting goals) can help you feel accomplished. </strong></p><p>Keep a thought journal and detail certain daily or weekly goals (such as a plan to call a friend on Monday or to visit your local coffee shop for a change of scenery on Thursday). These small, achievable goals not only get you out of the house and/or interacting with others, but they also provide a sense of accomplishment and satisfaction once they are complete. </p><p><strong>Random acts of kindness, such as volunteering, will make you feel good. </strong></p><p><a href="https://bigthink.com/mind-brain/kindness-benefits-james-doty?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1596517476" target="_self">Being kind is good for your health</a> in many different ways. Doing something nice for others can boost your serotonin levels. Serotonin is a neurotransmitter that is responsible for feelings of satisfaction and well-being. Similar to exercise, kindness, and altruism can also release endorphins, creating a <a href="https://www.quietrev.com/6-science-backed-ways-being-kind-is-good-for-your-health/#:~:text=Kindness%20releases%20feel%2Dgood%20hormones&text=Doing%20nice%20things%20for%20others,as%20a%20%E2%80%9Chelper's%20high.%E2%80%9D" target="_blank" rel="noopener noreferrer">temporary sense of euphoria</a> that can help combat depressive symptoms. </p>
Researchers have just discovered the remains of a hybrid human.
90,000 years ago, a young girl lived in a cave in the Altai mountains in southern Siberia. Her life was short; she died in her early teens, but she stands at a unique point in human evolution. She is the first known hybrid of two different kinds of ancient humans: the Neanderthals and the Denisovans.
Physicists create quantum entanglement, making two distant objects behave as one.