Broeckelman

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Anticipating What’s Around the Bend

Attracting & Retaining the Best & Brightest

November 18, 2008

2008 Farmer Cooperatives Conference

Bob Broeckelman, PhD

VP – Recruitment & Selection Services

What is happening?

• The dominant factor for business in the next two decades is not going to be economics or technology; it will be demographics

-Pete Drucker: The Future Has Happened Already

• By 2010 there will be 168 million jobs in the US and

158 million workers

-Bureau of Labor Statistics

• While only 20% believed phased retirement was very or moderately important in 2003, 68% say it is very important today.

-Hewitt 2003 Phased Retirement Study

FCCServices, Inc.

Enriching business performance

First Year Eligible for Full Retirement

40

35

30

25

20

15

10

5

0

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

Year

FCCServices, Inc.

Enriching business performance

Generational Workplace Issues

• Boomers working next to Gen Y’s - each with very different attitudes – conflict is inevitable

• 60% of employers experience tension between employees of different generations

• Generational differences collide over issues such as work ethics, respect for authority, dress code & many more

FCCServices, Inc.

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Boomers say:

“I can’t find anyone to hire that’s willing to work 60 hours a week.”

FCCServices, Inc.

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Gen Y’s say:

“I’m sorry it takes you so long to get your work done.”

FCCServices, Inc.

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Generation Yer’s at a Glance:

Who are They?

Understanding the generations is key to developing a successful plan to attract and motivate different age groups.

FCCServices, Inc.

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FCCServices, Inc.

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Sp t the Gen Y

Generation Y

• Born from 1977 to 1994

• Totals 76 million people

• Almost identical in numbers to “Baby Boomers” but think very differently than “Baby Boomers”

• Represents over 20% of today’s population

• Between the ages of 13 and 30

• Many in this group have yet to enter the workforce

• Work/Life balance

• Socially conscious & civic minded

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• Hi-Tech

• The most educated

• Racially & ethnically diverse

• Want instant gratification

• Like teams

• Goal oriented

• Frequent contact w/supervisors

• Lack company loyalty

FCCServices, Inc.

Enriching business performance

FCCServices, Inc.

Enriching business performance

FCCServices, Inc.

Enriching business performance

Recruiting Gen Y’s

• Start early

– Establish a relationship early in the Gen Y’s life

– Offer internships or develop programs with local colleges, junior colleges and other social groups

• Recruit with Peers

– The best people to connect with Gen Y are other Gen Y’s

– Questions & concerns are put at ease when answered by an already devoted employee of the same generation

• Use Internet/Web Sites

– Students are hungry for information and the interaction that a well-designed web site can offer

FCCServices, Inc.

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Recruiting Strategies

• Websites need to appeal to their desire to learn

• Highlight paid training & skill development

• Sell them on flexible schedules, telecommuting & full tuition reimbursement

• As an Ag Cooperative…

• Get involved with campus leadership organizations as well as make presentations in the classrooms working with the professors

• Have both Gen Yer’s and experienced employees at the career fairs

FCCServices, Inc.

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Recognition & Rewards

Gen Y’s are less likely to be interested in pay increases than the other generations and are seeking more than just salary from their employers:

83% are motivated by flexibility while only

73% are motivated by salary*

Gen X’s want on-site child care, extra vacation days and high tech gadgets

*Mercer Human Resources Consulting

FCCServices, Inc.

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Summary of What The Next Generation

Desires In Order of Importance

• Work/Life Balance (Paid Time Off)

• Communication between Employees & Senior

Management

• Room for advancement

• Compensation

• Benefits

• Job Security

• Continued Training

• Desire to travel abroad

FCCServices, Inc.

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The Shift In The “Nuclear Family”

• What’s “nuclear”?

– Married, heterosexual couple, with 2.3 children and the father as the principal economic provider.

Today, less than 23% of U.S. households meet these criteria.

In fact, less than 50% of households include a married couple.

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What about the other 50%?

A current household snapshot would include…..

• Couples living together before marriage

• Seniors living together, not married

• Female head of household

• Same sex couples

• Single moms (42% never married!)

• Single dads with kids (2.2m)

• Gay parents

• Grandparents as primary caregivers

FCCServices, Inc.

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Marrying later or not at all

Median age at marriage

• 1960

• Women 20 years old

• Men 23 years old

• 2007

• Women 26 years old

• Men 28 years old

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So What Does This Mean?

1. Need to re-program our definition of a ‘hard worker’…

– Not about hours worked

– Not about time in the office, at the desk

“All about quality results produced”

FCCServices, Inc.

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Gen Yer Turnover

100

50

0

2nd year

1st year

• 36% Leave In Less Than A Year. (USA Today)

• 78% Of College Graduates Leave Their First Job In Less

Than Two Years.

FCCServices, Inc.

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Have to accommodate Gen Yers

If you don’t –

They will simply go home to their parents and

Their parents will welcome them back

FCCServices, Inc.

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FCCServices, Inc.

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58% Of College Graduates Move

Back Home Their First Year.

FCCServices, Inc.

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44% Of Graduates Are Still

Home The Second Year.

How Boomers Raised Their Children

Boomers pampered their children due to two working parents and guilt.

• Children got what they wanted

• Center of their parents lives

• Overscheduled grade-schoolers became overcommitted teens, with the emphasis on achieving.

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End Results

Upon graduation ~

Gen Yers haven’t learned much about “struggle or sacrifice”

They want it all “now”.

They tend to have a lot of credit card debt and live for the moment.

Background checks have confirmed this

and

FCCServices, Inc.

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There are concerns about their writing skills…..

FCCServices, Inc.

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Today’s 18 – 25 year olds

73% have received financial assistance from their parents within the past year.

64% have even gotten help with errands.

FCCServices, Inc.

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The 2010 Ag Cooperative Perfect Storm

Ag Background

Applicants

Total Labor

Supply

Aggressive

Competitors Retirements Turnover

What could the Ag Cooperative’s

911 be?

A in Agriculture…

What would happen?

• Employees will retire sooner

• Mass exit of employees that lived through the agricultural turmoil of the 80’s

Our Environment Will Change

100

80

60

40

20

0

Today

Turnover Retirement

FCCServices, Inc.

Enriching business performance

100

80

60

40

20

0

3 - 4 Years

Turnover Retirement

How can we

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the battle???

We need to fish in a bigger pond………..

But

, we need to catch the right fish in the pond!

First Things First

You must know what the expectations are for the new hire……

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Intent to Stay

What’s Important to New Hires?

35.00%

30.00%

25.00%

20.00%

Change in

Intent to Stay

15.00%

10.00%

5.00%

0.00%

Intent to Stay

Clearly Explains

Job Importance

Teaches About

Organizational

Vision & Strategy

Teaches About

Group or Division

30.10% 28.80% 28.50%

Clearly Explains

Performance

Objectives

27.60%

Clearly Explains

Job

Responsibilities

Introduces New

Hires to other

New Employees

26.80% 24.60%

Provides Work

Immediately

22.30%

Provides

Necessary Tools

& Resources

20.60%

Second Key Issue

You must know what you are looking for when you are filling an open position.

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Strategies for Success

• Train managers and employees in interviewing and selection

• Use technology and validated selection tools.

– Face-to-face interview has 50% predictability

– Structured interview tools increase predictability to 60 - 70%

– Structured and validated tools such as Kenexa and PI increase overall predictability to over 90%

FCCServices, Inc.

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So, how are we going to find these people??

• The job search process moved online very quickly after Al Gore invented the internet

• Most job seekers we are looking for, go online FIRST when they want to make a change

• Most job seekers look for new positions on job internet sites while at work on Mondays and

Tuesdays

• Your best candidates aren’t looking

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http://

Media Usage

• The internet is the most commonly used form of media for Gen Yers

• Online media, such as videos, podcasting, blogs instant messaging

• Less likely to read the print form of the newspaper than previous generations

• Prefers lifestyle, pop culture & entertainment magazines over business & news magazines

• Uses cell phone text messaging more than any other generation

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Sample Network Partners

PRO Form

(Manager Completes)

Website On-Line Interview

Campus

Associations

Friends

1,681

First 8 months

30%

Job Match PI Form

(Applicant Completes)

Personal Interview

(Completed in person or by phone)

Campus’s

Ag Cooperatives

Friends

30%

Campus And Cooperative Applicants

Co-op

1

Co-op

2

Co-op

3

Co-op

4

Co-op

5

Co-op

6

Co-op

7

Co-op

8

Co-op

9

Final Applicants

(For Each Farm Cooperative)

September 2003 to April 2004

1681 – Web

-1076 – Rejected

605 Interviewed

15 Universities

268 Job Matches

Questionnaire Entrance

You are about to take the Sales Professional candidate questionnaire.

It is 63 questions long.

Click the Start Button to begin.

The use of reference materials or other assistance is not permitted, unless you are directed otherwise by your administrator.

Choose the best answer from the available choices, even if you do not agree with the choices given.

Depending on the speed of your computer, and/or ISP connection, you may see a blue page in between each question .

I tend to delay difficult decisions as long as possible in order to make the right choice.

1. Strongly Disagree.

2. Slightly Disagree.

3. Not sure/in between.

4. Slightly Agree.

5. Strongly Agree.

My Answer: 1

Next Question

Usage Report

(From 21 Jun 2007 to 29 Jun 2007)

Search the Database

Date Name Referral Source

Job Code

D = Duplicate Result

Questionnaire Score Time (min)

21 Jun 2007 June Cleaver Premier Farm Credit

Fort Morgan CO

21 Jun 2007 Dudley Dooright Capital Farm Credit

0637

0638

21 Jun 2007 Carole Brady

21 Jun 2007 Jerry Riggit

Fresno Madera

Farm Credit

Walter C. de Bruyn

22 Jun 2007 Jack Bauer AG Credit, Fostoria,

OH

22 Jun 2007 Pete Repeat Bob Broeckelman 0603

0643

0640

0629

Farm Credit

Appraisers

52%'tile

Farm Credit

Loan

Officer

88%'tile

Farm Credit

Support 1

23%'tile

Farm Credit

Loan

Officer

Farm Credit

Loan

Officer

Farm Credit

Loan

Officer

82%'tile

11%'tile

40%'tile

17 D

15

18

16

12

9

Website On-Line Interview

Campus

Associations

Friends

1,681

First 8 months

PRO Form

(Manager Completes)

Job Match

Personal Interview

(Completed in person or by phone)

PI Form

(Applicant Completes)

A

LOW Relative to Norm

B

LOW Relative to Norm

C

LOW Relative to Norm

D

Notes:

LOW Relative to Norm

NORM

AVERAGE

NORM

AVERAGE

NORM

AVERAGE

NORM

AVERAGE

Relative to Norm HIGH

Relative to Norm HIGH

Relative to Norm HIGH

Relative to Norm HIGH

5

Position:

Job Code:

Department Code:

Completed By:

Summary of PRO® Results

Loan Officer-Composite

A, Loan Officer

Notes:

Survey Date:

Report Date:

Multiple Managers

Loan Officer - Composite

05/31/2007

06/01/2007

Pattern Number: 42

The results of the PRO® should always be reviewed by a trained Predictive Index analyst. The

PRO Reporter® provides you with a brief overview of the results of the PRO®. If you have not yet attended the Predictive Index® Management Workshop, please consult someone who has attended in order to do a thorough job analysis.

This job requires connecting with people quickly in an outgoing, friendly manner. The use of persuasive communication skills to gain the interest and involvement of others in the work process is an important aspect of the job.

An extreme sense of urgency is needed, combined with getting work done in complete, accurate detail and in accordance with company standards and policies. The motivation for this position comes from a strong sense of duty and a feeling of responsibility for completing work both quickly and correctly.

A faster than average work pace is necessary combined with impatience for results.

Follow-up of delegated work must be very thorough. Decision making will be done with the ideas and advice of others, but always carefully and cautiously within the guidelines of established company policy.

Selling ideas to others and the ability to train, teach and motivate a team are strong aspects of this position. Change is an ongoing occurrence of this job and will be approached conservatively and with the support and guidance of management.

•SELF: Measures the individual’s basic pattern of behavior. “Doing what comes naturally”.

•SELF CONCEPT:

Measures the ways in which the individual is trying to modify (or change) his/her behavior to satisfy what he himself perceives to be the demands of his current job.

•SYNTHESIS:

Measures the ways in which the individual actually behaves in his/her current job and work environment

11

Name:

Survey Date:

Summary of Predictive Index® Results

Jolene

07/12/2007

Report Date: 07/12/2007

Pattern Number: 46

The results of the Predictive Index® survey should always be reviewed by a trained

Predictive Index analyst.

Jolene is unassuming, unselfish and has a genuine interest in other people and a strong, intuitive understanding of them. Outgoing and friendly, she enjoys working with others and is lively, warm company.

A pleasant and extroverted person, Jolene is an effective communicator, able to stimulate and motivate others while being aware of and responsive to their needs and concerns. Her congenial personality and friendly, interested attitude make her readily approachable. She gets along easily with a wide variety of people.

Her drive is directed at working with and for others. She derives particular satisfaction from doing things for others, for the company, for her management, for the team and for the company's customers. Cooperative and willing, she can be a particularly effective teacher and communicator of the company's policies, programs, and systems.

Working at a faster-than-average pace, she is attentive to details and both quick and accurate in handling them. She is, however, too impatient to enjoy working with details as repetitive routine or as her primary responsibility.

Anxious to be sure that things are done exactly right, Jolene will follow-up carefully and closely if her work requires that she delegate details to others. When it is necessary for her to be critical, she will try to do that in a constructive, supportive manner. Her sense of urgency and her sense of duty combine to make her actively concerned about the timeliness, as well as the correctness, of any work for which she is held responsible.

In general, Jolene is a cautious and careful person, respectful of company authority and traditions, a specialist who avoids risk and uncertainty by taking care to do things properly, working within the company's formal organizational structure.

Summary of Predictive Index® Results

Name:

Survey Date:

Pete

07/09/2007

Report Date: 07/09/2007

Pattern Number: 14

The results of the Predictive Index® survey should always be reviewed by a trained Predictive

Index analyst.

Pete is a self-disciplined, conscientious person who will develop a high degree of expertise and skill in a specialized job. He has the drive to get things done right and in accordance with established standards of accuracy and quality.

Pete is a conservative and analytical person who respects traditional organizational values.

Reserved, serious, and thoughtful about everything he does, he is a no-nonsense worker who worries about getting things exactly right. Never superficial, he will make sure that he knows what he is talking about before he speaks. He needs a lot of certainty and structure in his work so that he can avoid the chance of being blamed for mistakes.

Understanding the technical aspects of his work well, he is capable of exercising ingenuity in problem-solving within the limits of his specialized expertise and training. Conservative and eager to avoid risk, he is cautious and skeptical about new ideas. He will be comfortable with established, approved systems, technology, organizational relationships, and people.

In expressing himself, he is factual, sincere, and impatient to get on with the job at hand. Given responsibility for supervising others, he will be an exacting, rather strict boss who takes his responsibilities seriously and will demand that his subordinates get things done right and on time.

He is disciplined, and respects authority and established procedures. He will be critical with subordinates who do not meet his standards. He controls closely and delegates little.

Pete is the kind of person who strives to make sure that things get done right, and who is often placed in positions of control and trust. Given the necessary guidelines, he will carry out his responsibilities authoritatively and firmly. He has a sense of urgency, and works and functions, in general, at a faster-than-average pace, making decisions quickly as long as they are the kind of decisions that can be made in support of accepted policies.

Develop Validated Interviews

• Validate the interviews to see if they sort the best performers from the lower performers.

• Complete the “Adverse Impact” studies to make sure they don’t discriminate against age, race and gender.

FCCServices, Inc.

Enriching business performance

Research

40

30

20

10

15

0

Low Match

FCCServices, Inc.

24

31.4

Some Match High Match

Per Loan Officer Volume

$3,608,117

$4,000,000

$3,500,000

$3,000,000

$2,477,905

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$1,474,700

$500,000

$0

Enriching business performance

Some Match High Match

*Figures based on an 18 month period

Keeping Generation Yers…..

• Act like their parents –

– Loving, encouraging and rewarding them

– Give them business cards

– Invite to a management meeting

– No birthday should go uncelebrated

– Allow time off for community service

– Happy hours, softball games, group lunches

– First day on the job should be unforgettable

– Have “Jeans Day” every Friday

FCCServices, Inc.

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Retaining Employees After You Hire Them

1.

The First Day Is Critical.

2.

Send Welcome Letter Or Card Prior To Their Arrival.

3.

Put Yourself In Their Shoes.

4.

Introduce The New Employee To Others.

5.

Make Sure Lunch Arrangements Are Made.

6.

Provide Meaningful Orientation.

7.

Keep Them Up To Date Through Training.

8.

New Employees Make Their First Impression In Minutes As

To Whether They Made The Right Choice Of Going To Work

For You.

FCCServices, Inc.

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OVERALL PHILOSOPHY

• Match Screened Applicants With The

Job Opening.

Right”

• Match Screened Applicants With The Right

Association “Chemistry”.

• Match Final Candidates With The Right

Location”.

Retain the Best.

Build a meaningful Internship Program.

FCCServices, Inc.

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Top 10 Expectations of Interns

RANK

7

8

5

6

9

10

3

4

1

2

FACTOR

I’d be valued by my manager

My manager would be prepared for my internship

I’d be challenged by my assignment

My mentor would be a valuable resource

I’d be working with people I liked and respected

Content of my assignment would relate to my major

I’d be satisfied with the geographical location

Opportunities to get to know other interns

Opportunities to learn about other parts of the company

I’d be treated like a full-time employee

FCCServices, Inc.

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AVG.

RATING

8.75

8.71

8.65

8.59

8.54

8.52

8.30

7.98

7.96

7.92

Gaps: Expectation vs Reality

FACTOR

Manager prepared for me

Satisfied with performance reviews

Challenged by my assignment

Responsive if assignment disappointing

Accurate job description

Measured against objectives

Mentor was a valuable resource to me

Assignment related to my major

My workspace was ready for me

Learned about other parts of the company

Expectation

#2 / 8.71

7.67

#3 / 8.65

7.42

7.86

7.78

#4 / 8.59

#6 / 8.52

7.56

7.96

Reality

7.25

6.65

7.68

6.68

7.16

7.09

7.95

7.93

6.98

7.40

.70

.69

.64

.59

.58

.56

Gap

1.46

1.02

.97

.74

FCCServices, Inc.

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Reasons for Accepting full-time position

 Expectations exceeded on 20/24 factors

 Top factors exceeding expectations:

 Social events with management (+.85)

 Organized activities for interns (+.78)

 Worked with people I liked (+.71)

 My manager valued me (+.68)

 Housing arrangements satisfactory (+.62)

 BUT……My manager prepared for me (-.68)

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Reasons for Declining full-time position

 Expectations not met on 16/24 factors

 Top factors falling short of expectations:

 My manager was prepared for me (-2.60)

 Frequency/quality of reviews (-1.64)

 Mentor was a valuable resource (-1.58)

 Measured against objectives (-1.32)

 Had a challenging assignment (-1.31)

 BUT……Treated like FT employee (+.52)

FCCServices, Inc.

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Final Thoughts……..

“They sat me down on the last day of my internship and told me that they’d be making me an offer for full-time employment at the beginning of the Fall recruitment season.

They kept in touch with me between the end of my internship and the offer being sent, just to see how I was doing and to see if I had any questions.

It made it really easy to accept their offer. They demonstrated time and again that they care for their employees.”

FCCServices, Inc.

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“Success in business is about putting the right people in the right place at the right time. You can’t expect to have a successful working organization if you have the wrong people in the wrong jobs, no matter how many hours they may work. What you try to do is put people in positions that suit their natural abilities and inclinations.”

FCCServices, Inc.

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ACES Executive Committee

President,

David Barton Kansas State University

Board Chair,

Larry Hammond Advanced Agri-Solutions

Board Vice-Chair,

Dale Locken

Board Secretary,

South Dakota Wheat

Growers

Brad Cowan Frontier Ag, Inc.

Board Treasurer,

Art Duerksen Farmway Co-op, Inc.

Consultant,

Bob Broeckelman FCCServices, Inc.

(785) 532-1508 dbarton@ksu.edu

(419) 739-4604 lhammond@aasc.com

(605) 225-5500 dlocken@sdwg.com

(785) 672-3300 bcowan@frontieraginc.com

(785) 738-2241 aduerksen@farmwaycoop.com

(800) 999-2687 bob.broeckelman@fccservices.com

FCCServices, Inc.

Enriching business performance

Other potential business solutions available for your use from….

FCCServices/Summit

Point Consulting

FCCServices, Inc.

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Company Overview

Risk

Management

& Insurance

Operational

Support

Organizational

Effectiveness

Summit Point

Consulting

National

Discount

Program

Recruiting

And

Selection

FCCServices, Inc.

Enriching business performance

Company Overview

Business

Change &

Execution

Consulting

& Training

Organizational

Effectiveness

Governance

Effectiveness

FCCServices, Inc.

Enriching business performance

Institutes

&

Conferences

Leadership

Development

Enriching & Enhancing the

Way Your Organization Works

Company Overview

•Performance Consulting

•Compensation Consulting

•Sales & Sales Management

•Recruiting & Selection

Business

Change &

Execution

•Change Management

•Merger Consulting & Integration

•Feasibility Analysis

•Audit Services

Consulting

& Training

Governance

Effectiveness

Organizational

Effectiveness

•Board Evaluations

•Peer Evaluations

•Board Facilitation

• Meeting Design, Planning,

& Facilitation

• Bringing Together Experts,

Peers, and Industry Innovators

• On-site Coordination

FCCServices, Inc.

Enriching business performance

Institutes

&

Conferences

Leadership

Development

Enriching & Enhancing the

Way Your Organization Works

• Leadership Development

Training

• Executive Coaching

• Individual & Organization

Assessment

Company Overview

Preplanning

FCCServices, Inc.

Enriching business performance

Integrating

New Hires

Recruiting

Recruiting

&

Selection

Matching

Candidates to Jobs

Screening

Candidates

Getting the Right

People Onboard

• First day

• First week

• First month

• First six months

Company Overview

Preplanning

• Studying traits of successful employees

• Developing profiles

• Defining positions

• Writing job descriptions

Integrating

New Hires

Recruiting

Recruiting

&

Selection

• Identifying venues

• Developing materials

• Telling the company story

Matching

Candidates to Jobs

Screening

Candidates

• PRO Form – manager completes

• PI Form – applicant completes

• Personal Interview

FCCServices, Inc.

Enriching business performance

Getting the Right

People Onboard

• Prescreening resumes (if desired)

• On-line questionnaire

• Phone interview

Company Overview

Claims

Consulting &

TPA

Loss

Prevention

Insurance

Marketing

& Review

Risk

Management

& Insurance

FCCServices, Inc.

Enriching business performance

Risk

Assessment

Program

Administration

Alternative

Risk

Management

People-Focused, Customer-Driven,

Independent Risk Management Solutions

Risk Management Consulting

• Data analysis

• Safety training

• On-site Safety & loss control

• Exhaustive risk analysis

• Policy reviews

• Contingency planning

• Contract review

Loss

Prevention

Claims

Consulting

& TPA

Risk

Management

& Insurance

Insurance

Marketing

& Review

• Third-party administration

• Claim file audits

• Large claim reviews

• Reserve audits

• Process improvement

• TPA selection

• Placement of primary and excess coverage

• Outsource risk management

• Coverage design

• Brokerage selection & mgmt

• Captive & pool feasibility

• Design and implementation

• Captive & pool management

• Domicile analysis & selection

FCCServices, Inc.

Enriching business performance

Risk

Assessment

Alternative

Risk

Management

Program

Administration

• Marketing and customer service

• Certificate issuance

• Policy issuance

• Surveys & benchmarking

People-Focused, Customer-Driven,

Independent Risk Management Solutions

Questions?

800-999-2687

Bob Broeckelman

FCCServices, Inc./Summit Point Consulting

FCCServices, Inc.

Enriching business performance

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