The MHEDA Journal - Fourth Quarter, 2017 - 59

own productivity and offering ideas/
suggestions that will have a positive
impact. Some employees are starting to
realize the value of the plan and adjusting their work habits. Other employees
will hopefully buy in.
MM: We always believed we had
a great team but the ESOP took it to
another level. The employees are much
more engaged and it shows on the bottom line. Every owner has a say in
how we can improve the company and
its profits.
TA: 80 plus percent of our employees
will stay until they retire. They believe in
the company and have seen their ESOP
balance grow beyond their expectations.
It has become easier to recruit talent for
our company. All levels of employee/
owners focus on generating revenues,
improve procedures and finding ways to
reduce expenses. Our productivity numbers are all above industry standards!
JS: Modern's culture is based on the
fact "the employees are the owners."
TMJ: How did/have employees
reacted to being stock holders in your
company?
MLJ: We are in the early stages of
the ESOP but we have already seen
an uptick in employee engagement.
Employee owners have a better understanding of the company's big picture
and have started offering cost saving
ideas and marketing/sales recommendations to increase profitability and
overall stock value.
Scott Harleman, Sales: "It's really
simple. None of this could have happened without this woman's vision and
leadership. The gratitude I have for this
adventure is beyond words."
Mike Jasa, Purchasing Manager:
"Warehouse1's ESOP is a benefit provided to all employees to share ownership in our company. When we
work together to promote growth at
Warehouse1, we increase profit to the
company and share value to us all!"
Kirk Nielsen, Government Projects:
"Mary Lou GAVE us this fantastic
opportunity: a stake in the ownership
of Warehouse1. We have zero monetary investment in this opportunity.
The only individual investment we
have is our daily work input and attitude toward making and keeping the

company profitable. We all owe Mary
Lou a huge THANK YOU for this gift!"
MM: At first it was confusing so not
everyone understood the benefits and
what it would look like down the road.
But after we paid off the first round
of debt, their statements had more
meaning. The light does not turn on
all at once, it's a gradual path to full
engagement.
TA: They love it. Retired employees
send in letters or pictures of vacations
they are taking or retirement houses that
they have paid for through the additional funds they have received from
the ESOP. The owners have a level of
pride for the company that was not as
great prior to the ESOP.
JS: We frequently hear "turn off
those lights; "we can sell that scrap
metal"; "use the paper on both sides
for internal notes."
TMJ: Were there any unexpected
challenges or hurdles you faced when
becoming an ESOP?
MLJ: The road to establishing an
ESOP is full of bumps and holes to fall
into. The creation and establishment of
a plan requires many months of learning
to understand the complications, intricacies of the program and the many decisions that are necessary to creating a fair
and equitable plan. We were fortunate
to have patient and excellent support
throughout our journey from our valuable partners: Gayle Evans, our attorney; Frank Halbhuber, our accountant;
Stern Brothers, Valuation; Community
Bank of Pleasant Hill, Trustee; ESOP
Partners, our plan administrator, and
many, many hours of assistance from
our internal staff of professionals, Steve
Schulte, our CFO; Fay Byrd, our Director
of Administration; and Gary Selvera,
our President.
There was a lot of hand holding and
hand wringing during that 14 month
process.
MM: Yes. Many. So many we forgot many of them. But it was all worth
it. Overall costs were greater than we
imagined. The time it takes from end of
year to passing out the individual statements is much longer than we planned
for. About nine months.
TA: It took 3 to 4 years before employees really fully understood the impact

of the ESOP and what value it meant
to them personally. We thought they
would get it from day 1. It is hard for an
employee to understand the benefit until
they see a statement showing them how
many shares they have and what those
shares are worth. Year 3 becomes a Wow
factor for them as many times they are
seeing their original statement double
or triple in value. In down years when
the price per share may slip downward,
they are surprised to see their overall
statement increase. This occurs because
every year they are receiving new shares
so the drop in price on the old shares is
more than offset by the new shares they
receive in the current year.
JS: When markets have changed, we
have been able to move our employees
to new challenges and opportunities.
TMJ: Do you have any advice for
other MHEDA members who might be
considering becoming an ESOP?
MLJ: Join the local ESOP chapters
of esop.org and neco.org and meet the
companies and people that are living
the potential of this concept every day.
Meet them, talk to the employee owners and the original owner for their perspective on the effect it has had on each
of them. I made 35 reference calls.
And every one, without exception, was
open and eager to share their experience,
extremely pleased with the outcome, and
extremely optimistic about the future.
Carefully interviewed all of the consultative people necessary to complete
this operation. Hire the best to be your
advocate, not the cheapest. Listen to
them and follow their advice.
Kind of like a home remodel: plan on
it taking twice as long as you thought
and it costing twice as much as everyone told you it would!
MM: Yes, make friends with someone who has done it before and discuss
what challenges they had to overcome.
This works for both the sellers and
the employees. Join the ESOP Trade
Organization. It's an opportunity for a
true win-win situation but it takes time,
money and a high level of participation
from both the sellers and the key people
remaining in the company.
TA: It has been a great vehicle for the
retiring owners and at the same time
Continued on page 89
The MHEDA Journal | Fourth Quarter 2 017

59


http://www.esop.org http://www.neco.org

Table of Contents for the Digital Edition of The MHEDA Journal - Fourth Quarter, 2017

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
Ask A MHEDANET GROUP
Women in Industry Conference
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
INDUSTRY PULSE
2018 CRITICAL IMPACT FACTORS
DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
SALES SUCCESS STORIES
ESOP ROUND TABLE
FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
49 EMPLOYEE ENGAGEMENT IDEAS
DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index to Advertisers by Alphabetical Order
The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - intro
The MHEDA Journal - Fourth Quarter, 2017 - cover1
The MHEDA Journal - Fourth Quarter, 2017 - cover2
The MHEDA Journal - Fourth Quarter, 2017 - 3
The MHEDA Journal - Fourth Quarter, 2017 - 4
The MHEDA Journal - Fourth Quarter, 2017 - 5
The MHEDA Journal - Fourth Quarter, 2017 - 6
The MHEDA Journal - Fourth Quarter, 2017 - 7
The MHEDA Journal - Fourth Quarter, 2017 - 8
The MHEDA Journal - Fourth Quarter, 2017 - 9
The MHEDA Journal - Fourth Quarter, 2017 - 10
The MHEDA Journal - Fourth Quarter, 2017 - Chairman’s Perspective
The MHEDA Journal - Fourth Quarter, 2017 - 12
The MHEDA Journal - Fourth Quarter, 2017 - From the Desk of Liz Richards
The MHEDA Journal - Fourth Quarter, 2017 - 14
The MHEDA Journal - Fourth Quarter, 2017 - Editor’s Note
The MHEDA Journal - Fourth Quarter, 2017 - 16
The MHEDA Journal - Fourth Quarter, 2017 - Ask A MHEDANET GROUP
The MHEDA Journal - Fourth Quarter, 2017 - 18
The MHEDA Journal - Fourth Quarter, 2017 - 19
The MHEDA Journal - Fourth Quarter, 2017 - Women in Industry Conference
The MHEDA Journal - Fourth Quarter, 2017 - 21
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA MEMBER PROFILE
The MHEDA Journal - Fourth Quarter, 2017 - 23
The MHEDA Journal - Fourth Quarter, 2017 - 24
The MHEDA Journal - Fourth Quarter, 2017 - 25
The MHEDA Journal - Fourth Quarter, 2017 - 26
The MHEDA Journal - Fourth Quarter, 2017 - @WORK
The MHEDA Journal - Fourth Quarter, 2017 - 28
The MHEDA Journal - Fourth Quarter, 2017 - WOMEN IN INDUSTRY
The MHEDA Journal - Fourth Quarter, 2017 - INDUSTRY PULSE
The MHEDA Journal - Fourth Quarter, 2017 - 31
The MHEDA Journal - Fourth Quarter, 2017 - 32
The MHEDA Journal - Fourth Quarter, 2017 - 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - DEFINING MHEDA’S 2018 CRITICAL IMPACT FACTORS
The MHEDA Journal - Fourth Quarter, 2017 - 35
The MHEDA Journal - Fourth Quarter, 2017 - 36
The MHEDA Journal - Fourth Quarter, 2017 - 37
The MHEDA Journal - Fourth Quarter, 2017 - SALES SUCCESS STORIES
The MHEDA Journal - Fourth Quarter, 2017 - 39
The MHEDA Journal - Fourth Quarter, 2017 - 40
The MHEDA Journal - Fourth Quarter, 2017 - 41
The MHEDA Journal - Fourth Quarter, 2017 - 42
The MHEDA Journal - Fourth Quarter, 2017 - 43
The MHEDA Journal - Fourth Quarter, 2017 - 44
The MHEDA Journal - Fourth Quarter, 2017 - 45
The MHEDA Journal - Fourth Quarter, 2017 - 46
The MHEDA Journal - Fourth Quarter, 2017 - 47
The MHEDA Journal - Fourth Quarter, 2017 - 48
The MHEDA Journal - Fourth Quarter, 2017 - 49
The MHEDA Journal - Fourth Quarter, 2017 - 50
The MHEDA Journal - Fourth Quarter, 2017 - 51
The MHEDA Journal - Fourth Quarter, 2017 - 52
The MHEDA Journal - Fourth Quarter, 2017 - 53
The MHEDA Journal - Fourth Quarter, 2017 - 54
The MHEDA Journal - Fourth Quarter, 2017 - 55
The MHEDA Journal - Fourth Quarter, 2017 - ESOP ROUND TABLE
The MHEDA Journal - Fourth Quarter, 2017 - 57
The MHEDA Journal - Fourth Quarter, 2017 - 58
The MHEDA Journal - Fourth Quarter, 2017 - 59
The MHEDA Journal - Fourth Quarter, 2017 - FROM CHARASMATIC PERSUADER TO KNOWLEDGE BROKER: THE EVOLVING WORLD OF SALES
The MHEDA Journal - Fourth Quarter, 2017 - 61
The MHEDA Journal - Fourth Quarter, 2017 - 62
The MHEDA Journal - Fourth Quarter, 2017 - 63
The MHEDA Journal - Fourth Quarter, 2017 - 64
The MHEDA Journal - Fourth Quarter, 2017 - 65
The MHEDA Journal - Fourth Quarter, 2017 - 49 EMPLOYEE ENGAGEMENT IDEAS
The MHEDA Journal - Fourth Quarter, 2017 - 67
The MHEDA Journal - Fourth Quarter, 2017 - 68
The MHEDA Journal - Fourth Quarter, 2017 - 69
The MHEDA Journal - Fourth Quarter, 2017 - 70
The MHEDA Journal - Fourth Quarter, 2017 - 71
The MHEDA Journal - Fourth Quarter, 2017 - 72
The MHEDA Journal - Fourth Quarter, 2017 - 73
The MHEDA Journal - Fourth Quarter, 2017 - 74
The MHEDA Journal - Fourth Quarter, 2017 - 75
The MHEDA Journal - Fourth Quarter, 2017 - 76
The MHEDA Journal - Fourth Quarter, 2017 - 77
The MHEDA Journal - Fourth Quarter, 2017 - 78
The MHEDA Journal - Fourth Quarter, 2017 - 79
The MHEDA Journal - Fourth Quarter, 2017 - 80
The MHEDA Journal - Fourth Quarter, 2017 - DO UNTO OTHERS AS THEY WANT TO BE DONE UNTO
The MHEDA Journal - Fourth Quarter, 2017 - 82
The MHEDA Journal - Fourth Quarter, 2017 - THE PRESIDENT’S EXECUTIVE ORDER 13789 AND ITS FUTURE EFFECT ON THE TAX CODE
The MHEDA Journal - Fourth Quarter, 2017 - 84
The MHEDA Journal - Fourth Quarter, 2017 - 85
The MHEDA Journal - Fourth Quarter, 2017 - 86
The MHEDA Journal - Fourth Quarter, 2017 - New Members
The MHEDA Journal - Fourth Quarter, 2017 - Spotlight on Association News
The MHEDA Journal - Fourth Quarter, 2017 - 89
The MHEDA Journal - Fourth Quarter, 2017 - 90
The MHEDA Journal - Fourth Quarter, 2017 - 91
The MHEDA Journal - Fourth Quarter, 2017 - MHEDA Milestones
The MHEDA Journal - Fourth Quarter, 2017 - 93
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Product Category
The MHEDA Journal - Fourth Quarter, 2017 - 95
The MHEDA Journal - Fourth Quarter, 2017 - Index to Advertisers by Alphabetical Order
The MHEDA Journal - Fourth Quarter, 2017 - 97
The MHEDA Journal - Fourth Quarter, 2017 - The Last Word
The MHEDA Journal - Fourth Quarter, 2017 - cover3
The MHEDA Journal - Fourth Quarter, 2017 - cover4
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