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Incorporating the Leadership Lessons of Jack Welch into Your Business

Posted: April 15th, 2019

By: Joe Campolo, Esq. email

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Jack Welch, GE’s larger-than-life CEO for over 20 years, transformed the company into one of the world’s most successful businesses. Revenues grew five-fold, from $25 billion to $130 billion; income grew ten-fold, from $1.5 billion to $15 billion; and the company’s market capitalization had a 30-fold increase of more than $400 billion. How did he do it – and what lessons can we all learn from his leadership style?

Welch knew that revolutions begin at the top. He made GE leaner, tougher, and more competitive by ignoring the common sentiment that GE was too iconic to be tampered with. Instead, he applied a “survival of the fittest” rule to his businesses and his team. Those who succeeded were those who were needed.

At a recent seminar for Long Island business leaders, I recently presented my own take on the powerful leadership lessons that Welch wrote about in his business bible, Winning. Over the years, Welch’s style has helped me act like a leader, not a manager. Here, I share Welch’s leadership rules that will help you play to win.

1. Leaders relentlessly upgrade their team, using every encounter as an opportunity to evaluate, coach, and build self-confidence.

Leaders make sure that the right people are in the right seats, support and advance those who are, and move out those who aren’t. A leader is a coach: guiding, critiquing, and helping their team improve performance. There is no event in your day that can’t be used to help build someone’s self-confidence.

2. Leaders make sure people not only see the vision, but live and breathe it.

Leaders must ensure that the vision filters down to everyone. It’s your role as a leader to make the team’s vision come alive. Be specific; avoid jargon and vague goals. Leaders talk about vision constantly, to the point that they are sick of hearing themselves. I’m sure my colleagues are tired of hearing me – and that’s a good thing!

3. Leaders get into everyone’s skin, exuding positive energy and optimism.

A leader’s mood is catching. Upbeat managers with positive outlooks tend to run teams of people with similar outlooks – while sourpuss managers have their own miserable tribes. As a leader, you don’t sugarcoat the challenges, but you must display a can-do attitude about overcoming them. I’ve learned this firsthand, when I realized that my attitude on a given day directly affects the general sentiment at the office that day. Your job is to fight negativity and inspire others to rise to challenges.

4. Leaders establish trust with candor, transparency, and credit.

For some people, being in a leadership role is just a power trip – and there’s no quicker way to drain the trust out of a team. Instead, leaders must build trust – by being transparent, candid, and keeping their word. Your prize for being a leader isn’t a crown – it’s the responsibility and privilege of bringing out the best in others. Trust is key.

5. Leaders have the courage to make unpopular decisions.

You’re a leader to lead, not to win a popularity contest. To retain trust, you must listen and explain your decisions clearly – but you must keep moving forward.

6. Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action.

As you worked your way up the ranks, your job was to have all the answers. But as a leader, your job is to have all the questions. In every conversation, you must ask “What if…,” “Why not…,” and “How come?”

7. Leaders inspire risk-taking and learning by setting the example.

To help your team experiment and expand their minds, set the example yourself. Talk freely about mistakes you’ve made (I sure do). It’s not about being preachy – it’s about being relatable and lighthearted. You must teach your team that mistakes aren’t fatal.

8. Leaders celebrate.

Sure, you may have a holiday party – but what do you do to recognize your team’s achievements? How do you reward valuable team members for a job well done? Celebrate your successes and you’re bound to have more of them.

CMM Prevails in Commercial Litigation Matter Involving Diversion of Funds and Theft of Proprietary Data

Posted: April 11th, 2019

When a New York City business discovered that one of its shareholders was diverting millions of dollars in business capital for himself and competing entities and was also stealing the company’s confidential and proprietary data, CMM was there to help.

Our client is an alternative finance company that helps small businesses obtain financing to grow their businesses and the local economy. When they learned that one of their own was exploiting the firm’s resources for his own purposes, they called on CMM for advice and legal assistance.

CMM’s Jeffrey Basso and Richard DeMaio successfully moved by order to show cause and obtained a temporary restraining order prohibiting the shareholder and any company he may be working for from soliciting any of our client’s customers, business leads, or referral sources – a huge win for our client while the court considers the underlying motion. CMM also defeated the shareholder’s own request for a temporary restraining order, which sought to have a receiver appointed and force our client to essentially close down the business.

Our client is thrilled with the result and reported how much CMM’s preparation impressed them.

Learn more about our commercial litigation work.

Malafi Presents at East Islip Community Chamber

Posted: April 11th, 2019

Event Date: April 30th, 2019

Senior Partner Christine Malafi has been invited to present at an East Islip Community Chamber meeting. She will present on the topic of the recent New York State sexual harassment laws and the RISE Act.

April 30, 2019
7:00 PM – 9:00 PM
American Legion Hall
3 Bayview Ave
East Islip, NY 11730 United

Learn more here.

Partner Spotlight: Q&A with Jeffrey Basso

Posted: April 9th, 2019

Jeffrey Basso is a Partner based in our Ronkonkoma office.

CMM: You graduated from the University of Delaware before heading to St. John’s University School of Law. Why did you decide to become a lawyer?

JB: I majored in Criminal Justice at Delaware because the topic always interested me growing up, but when I graduated from college, I really was not interested in pursuing any careers that would typically be offered to someone with a Criminal Justice major.  So, I decided to take a year off after I graduated and got a job working at a law firm on Long Island doing a lot of writing.  I found that I enjoyed writing in a legal setting and making arguments on behalf of clients and, ultimately, that’s what led me to pursue a career as a lawyer.

CMM: You were born and raised on Long Island and never left (except for college)! You’ve crisscrossed Suffolk and Nassau at different points in your life and now live in Commack. Tell us your Long Island story.

JB: Long Island has always been a huge part of my life.  My mom lived on Long Island her entire life.  My dad came to New York from Italy when he was around 18 years old and, when they got married, they bought a house in Suffolk County that my family grew up in.  My parents still live there over 40 years later.  Having grown up in eastern Suffolk County, then living in Long Beach for several years after college to now raising my family in Commack, I have gotten to experience so much of what Long Island has to offer such as the thriving business community, highly regarded schools, great beaches, wineries and local breweries, renowned restaurants, proximity to New York City and on and on.  If there was only a way to reduce property taxes and make the traffic disappear every time I try to get on or off the island, that would be perfect. 

CMM: You came to CMM in 2012 after working at other firms. What attracted you to CMM?

JB: I worked at a couple smaller law firms on Long Island to begin my career, and I really could not envision a future with them. I still remember when I first interviewed with CMM and had the opportunity to meet with Joe Campolo, Pat McCormick and other attorneys at the firm, you could tell this place was different and that it was an up and coming firm with a different philosophy and vision compared to most firms.  I wanted to be a part of it.  I saw CMM as an opportunity to really launch my career and become a permanent fixture for me and, over the past seven years, that has truly been the case. 

CMM: CMM has grown exponentially since you came on board. What has it been like being part of that growth?

JB: When I first started, CMM had about 11 attorneys, and we were cramped in a small office bursting at the seams.  In the seven years since I started, we have tripled in size and now have a much bigger main headquarters in Ronkonkoma and two additional offices in Bridgehampton and Westbury.  It has been amazing to watch it and be a part of it.  The message and philosophy of the firm has really resonated on Long Island with the business community and has been a huge part of why the firm continues to grow and develop great, long-term relationships with clients all over the island. 

CMM: What practice areas do you focus on?

JB: My primary focus is on commercial litigation and employment litigation.  The types of cases I handle range from complex shareholder/partnership disputes typically referred to as “business divorces” to business mergers or acquisitions that go bad to employment matters involving employees breaching restrictive covenants, misappropriating trade secrets, stealing business clients, etc., to wage and discrimination matters to basic contract and commercial real estate disputes.  The matters I handle really run the gamut of the types of disputes business owners are faced with daily.   

CMM: If you couldn’t be a lawyer, what would you be doing?

JB: The one career I seriously considered pursuing before I went to law school was working for the FBI in some capacity, possibly as a profiler.  I was always fascinated with the FBI and being involved in criminal investigations which is what led to my criminal justice major in college, but I ultimately elected to go the attorney route instead.

CMM: What is the most valuable thing a lawyer can do for his or her clients?

JB: Listen to what the client wants to accomplish on any given matter.  For me handling litigation matters, it is important to understand why a client is in the position he/she/it is in and what that client is looking to gain.  It could be that the client wants to just use litigation as leverage to force a settlement, or the client is desperate because he or she is being forced out of the company, or the client wants to send a message to other employees, or any number of other reasons.  Knowing what a client is trying to accomplish from the outset allows the attorney to plan accordingly and better advise the client.  Too often, attorneys don’t listen and instead follow a path that the client never wanted or intended.    

CMM: How do you spend your weekends?

JB: My time on weekends is precious because there is such little time to unwind during the week.  I have two little daughters so most of my weekend time is spent with them as my wife and I try to keep them entertained.  It’s exhausting, but I love the time I get to spend with them.  Once it gets warm out, I love going to the beach and hanging out by my outdoor fire pit with friends and family.  If stuck inside, I’m a huge sports fan and often battle with the kids over watching the Jets/Mets or Disney princess movies.

CMM: How can Long Island keep young people living and working here, as well as attract others such as yourself, who may otherwise look to NYC or other cities for career opportunities?

JB: You can see that certain areas of Long Island, like Patchogue and Farmingdale as two examples, get it and are working to keep young people on Long Island by revitalizing downtowns and offering housing that is convenient walking distance to everything.  That certainly entices young people and gives them the opportunity to stay (although losing Amazon didn’t help), but the problem remains that everything is still so expensive on Long Island.  Friends of mine that live out of state pay a fraction of what we pay on Long Island for taxes and other cost of living items, and salaries for most people, especially the younger workforce, are not commensurate with those added Long Island costs.  Until that changes, I think many young people are going to continue to look elsewhere for employment.  CMM is proud to take a leadership role in this area by working closely with HIA-LI and the business community to attract and retain top talent. 

Yermash interviewed for Newsday article “Ensuring Compliance on Overtime Pay Exemption”

Posted: April 8th, 2019

By Jamie Herzlich

With new government rules proposed on overtime pay, compliance looms as a key focus for businesses.

The U.S. Department of Labor recently unveiled a proposed rule that would raise the minimum salary threshold required for eligible white-collar employees to be exempt from overtime pay from $23,660 to $35,308.

New York State already imposes much higher salary thresholds,  and they are slated to increase further.

So employers are encouraged to make sure they are correctly classifying their employees and understand true costs to make any necessary adjustments.

“Businesses should evaluate their compensation packages annually to make sure they are in compliance with overtime law and plan for anticipated changes,” said Arthur Yermash, a law partner at Campolo, Middleton & McCormick LLP in Westbury.

This is especially true on Long Island, where, as per state standards, eligible employees have to make at least $46,800 a year ($900 weekly) to qualify for an overtime exemption, up from $42,900 last year, he said. New York City and the rest of New York State have different thresholds. 

That state  salary threshold will increase again for Long Island on Dec. 31 to $50,700 ($975 weekly), and it will eventually hit $58,500 ($1,125 weekly) by Dec. 31, 2021, said Yermash.

While the nation’s proposed salary threshold is less, Long Island employers must abide by the higher regional threshold, says Alfred B. Robinson, Jr., an attorney in the Washington, D.C., office of Ogletree, Deakins, Nash, Smoak & Stewart PC and former acting administrator of the U.S. DOL’s Wage and Hour Division.

In the Fair Labor Standards Act there’s a provision that enables state and local governments to pass more “protective laws in terms of minimum wage or overtime standards,” he said.

In high-cost areas like the city and Long Island, “the federal salary threshold is probably too low,” said Robinson.

Still, employers feeling the pressure from higher overtime pay have to consider whether they should increase salaries so an employee doesn’t fall below the salary threshold for overtime, adjust  employee duties, or decrease overtime opportunities, he said.

 Exemption from overtime is based not just on salary, but also  on job duties, said Jeff Agranoff, a principal at Grassi & Co. CPAs and business advisers in Jericho, and there are different categories of exempt employees and different job duties tests for each.

In general, he said, a person would not be entitled to overtime under the white-collar exemption if he or she is managing people or a process or has responsibility for an area or function.

The criteria and duties test differ for those considered highly compensated; under the DOL’s proposal those employees could be considered exempt from overtime if they make at least $147,414 (formerly $100,000) and they perform certain job duties, said Agranoff.

More often than not, many companies incorrectly classify employees as exempt. “Most employees should be non-exempt employees,” he said.

To better understand whether it’s worth it to pay people for working overtime, employers should also do a cost-benefit analysis to see what value the company receives from someone working more than 40 hours compared to limiting worker hours to 40 per week, said Yermash.

On the plus side, at least local companies have the ability to plan accordingly because the State Labor Department has announced the amount of increases until 2021 for Long Island, he said.

Read more here.

CMM Contributes to War Memorial Project, Operation Remember

Posted: April 4th, 2019

An effort spearheaded by veteran service organizations and Suffolk County Legislator Kara Hahn (D-Setauket) is nearing its fundraising goal to give nation’s newest veterans the respect they’ve earned.

The effort, dubbed Operation Remember, which looks to update four existing war memorials located in Port Jefferson, Setauket and Stony Brook to commemorate the sacrifices made by the latest generations of America’s service members, has been decisive thanks to the support of the community, according to a press release from Hahn’s office. To date, $14,400 of the estimated $25,000 has been received by the Veterans Memorial Fund established through a partnership between the American Legion and Veterans of Foreign Wars posts located in Setauket, Stony Brook and Port Jefferson Station, the Long Island State Veterans Home at Stony Brook University and Hahn. Organizers are asking for a final push in donations to complete the mission of expanding these sites to honor those who served during the Cold War, the Gulf wars and the Global War on Terror by this Memorial Day.

“Support for this effort has been incredible,” Hahn said. “In only a few months we have raised more than half of what is needed to make this lasting tribute to the sacrifices of our local heroes a reality. Our goal is to have work completed by Memorial Day, a day on which we pause to remember and reflect upon the lives of those who have given theirs in order for us to freely live ours. Raising the remaining $10,600 needed in the next few weeks will ensure the work will be complete in time for this solemn day.”

Among those who have already answered the call are Purple Heart sponsors Realty Three LLC/Ridgeway Plaza LLC and Bruce Acker. Ardolino Group Realty Connect USA and Friends of Kara Hahn became Meritorious Service Medal sponsors, while Burner Law Group, P.C. earned the Commendation Medal and Moose Lodge 1379 of Port Jefferson donated at the Recognition Ribbon level. Campolo, Middleton & McCormick, LLP also committed to a $500 sponsorship.

“Our community is very patriotic,” said Carlton “Hub” Edwards, commander of Post 1766 in Setauket. “I am certain the community will step up to help fund this Veterans Memorial Project to honor those who made the ultimate sacrifice and have yet to be fully acknowledged.”

Last fall, memorial coalition members joined together to ensure veterans of our nation’s more recent wars would receive the recognition they have earned on those foreign battlefronts back here on the homefront. The partnership, through its Veterans Memorial Fund, hopes to update the memorials to include new plaques and monument stones to be inscribed with the names of wars since Vietnam at memorials located in Stony Brook Village, on the Setauket Village Green, at the Setauket Veterans Memorial Park and along the Port Jefferson harbor front.

“This project is in recognition of all veterans who served in all wars,” said Bill Wolf, commander, American Legion Wilson Ritch Post 432 in Port Jefferson.

“For those who served and gave so much, we Americans can only say ‘thank you,’” said Jack Gozdziewski, member of American Legion Post 432 and VFW Post 3054. “Through our local veterans memorials our communities show our love of country and respect to those who gave all. America’s freedom can never be taken for granted, veterans can never be forgotten.”

“The memorial is important lest we forget the sacrifices made and what we fought for,” said Tim Still, commander of Veterans of Foreign Wars Post 3054 in East Setauket.

Those wishing to donate, can make checks payable to and mail to Veterans Memorial Fund, P.O. Box 986, Port Jefferson Station, NY 11776.

Once the fundraising goal has been met, organizers will contract with a local stonemason to update the monuments with individual designs for each of the four memorials.

“Installation cannot take place until our fundraising is complete, and the monuments are paid for in full,” Hahn said. “We’d like to meet our fundraising goals soon, with the hopes of having the monuments installed and completed for Memorial Day.”

Read more here.

Newsday’s Coverage of Entrepreneur’s Edge Moderated by Joe Campolo

Posted: April 4th, 2019

LI native and former Nutrisystem CEO says ‘stay nimble’

The career of Port Jefferson native and Stony Brook University alumna Dawn Zier has zig-zagged from electrical engineer to senior executive to chief executive at Nutrisystem Inc., where she spearheaded a turnaround, leading to the company’s acquisition.

Zier cites her twisting career path that led to unexpected opportunities as a lesson in staying nimble and open to new roles.

“I encourage people not to be wedded [to getting] from point A to B,” she said at a forum at the Charles B. Wang Theater at Stony Brook University. “If you’re in a job you don’t like, leave it. It’s important to know not only what you want to do, but what you don’t want to do.”

Zier spoke before a crowd of executives, academics and students last week as part of The Entrepreneurs Edge series sponsored by the university’s College of Business. She was interviewed onstage by Joe Campolo, managing partner of Ronkonkoma-based law firm Campolo, Middleton & McCormick LLP.

Zier earned her bachelor’s degree in electrical engineering from Stony Brook and credits the school with teaching her “how to think” by taking problems and breaking them down.

She also has a master’s degree in electrical engineering and computer science and an MBA from MIT.

Zier, now president and chief operating officer at Tivity Health Inc., the Nashville, Tennessee, company that acquired Nutrisystem, said she never thought of herself as a leader but learned on the job.

“Leadership is a modeled behavior,” said Zier, who said she learned many lessons while rising to become the second-ranking executive at Readers Digest. “I did not grow up thinking I’d want to be a CEO.”

A management technique used at Readers Digest and transferred to Nutrisystem when she took the top job there in November 2012 was to lean on data analytics.

We put a “fact-based culture” in place that used “data to make decisions,” she said.

Zier instituted a system of performance-based financial rewards, cut costs and sought to banish “a culture that accepted losing.”

She also moved Fort Washington, Pennsylvania-based Nutrisystem’s core message back toward weight loss and away from an image as a gourmet food brand.

Since then, Nutrisystem’s revenue has almost doubled, from $396.9 million in 2012 to $691.0 million in 2018.

The turnaround was so successful that it attracted the attention of a suitor. Tivity Health, a provider of fitness and health-improvement programs, called her in September to explore a merger.  On March 8 the $1.3 billion cash and stock deal was closed.

Zier, who also serves as a director at Lake Success-based The Hain Celestial Group, said Tivity Health will have an expanding market as fitness and weight loss programs move toward a personalized DNA body blueprint.

“I believe the future is about personalized nutrition,” she said. “It’s no longer a vanity play.”

Read more here.

Yermash Presents at Nuts & Bolts of Forming a 501(c)(3)

Posted: April 3rd, 2019

Event Date: June 4th, 2019

Starting a nonprofit organization dedicated to a cause you care about is extremely rewarding – but how do you get there? Join us for an informative presentation covering the nuts and bolts of forming a 501(c)(3) organization. Arthur Yermash, Esq., Partner at Campolo, Middleton & McCormick, will share guidance, tips, and legal considerations to keep in mind as you plan to incorporate.

Tuesday, June 4, 2019
Doors open at 8:30AM
Program 9-10AM

Middle Country Public Library
101 Eastwood Blvd, Centereach

Tickets are complimentary and the event is open to all. Register here.

How to Deal with Threats in Negotiation

Posted: April 3rd, 2019

By: Joe Campolo, Esq. email

Published In: The Suffolk Lawyer

Tags:

Have you ever sat across from someone at the negotiation table who eventually stops bargaining and instead starts giving ultimatums?

I’m referring, of course, to the use of intimidation and fear tactics at the bargaining table: someone who threatens to stop negotiating to begin legal action or damage your character and status. How should you respond when the other side begins issuing threats?

The two most common and automatic responses are to offer a direct counterattack or to immediately concede in an effort to maintain what gains or status you already have; however, both tactics won’t work in the long run. A direct counterattack often leads to an escalation in conflict, and immediate concession shows weakness and promotes further intimidation. Instead, threats at the bargaining table should be deflected and the negotiation redirected back toward common interests and goals. Here’s a road map for the next time you find yourself face-to-face with a threat at the negotiation table.

Analyze. The first step is to realize that a threat has been made in the first place. Sometimes threats are overt and obvious, but other times they are subtle. The best way to realize what you’re dealing with is to take a step back from the situation so that you can observe it dispassionately. This might just be psychologically, or you might even want to call a break – or even just take a sip of water – to give yourself time to assess.

Empathize. Being able to empathize and understand your opponent’s perspective is critical to achieving a good result. This is especially difficult after he or she has issued a threat against you. By suppressing your automatic reaction toward either anger or fear, you are better able to empathize with your opponent and begin to question what he or she is after. As you figure that out, you will know how to respond to their threat.

Question. What does your opponent want? By focusing the conversation on what they want, and how you can get it for them through negotiation, you calm tensions, lower the hostility from the issuance of threats, and keep the conversation going. This tactic works best with a straight-shooter; someone who is not actually attempting to threaten but instead informing their opponent of strong alternatives in their arsenal.

Call the bluff. If an opponent’s threat is nothing more than intimidation or is coming from a place of weakness, it might be best to simply call attention to the threat, and therefore neutralize it. Research by Anne L. Lytle, Jeanne M. Brett, and Debra L. Shapiro in The Strategic Use of Interests, Rights, and Power to Resolve Disputes suggests that calling attention to, or labeling, a threat is the best way to get a negotiation back on track. This was the tactic recently used by Nike, when Stormy Daniels’s ex-lawyer Michael Avenatti was arrested on charges of trying to extort $25 million from the multinational footwear giant by threatening to reveal damaging claims about them.

A Strong BATNA (Best Alternative to a Negotiated Agreement). Always have a Plan B. As I have discussed previously, it is important to show up to the negotiation table with a strong alternative to your desired scenario. Preparation is key in any negotiation, especially once a threat has been issued.

Show power. Power both protects you and prompts action. Sometimes an aggressor will respond only to aggression. In such a case, the best solution would be to offer a counterattack to show strength but to then immediately shift the topic back to common interests and goals to avoid trench warfare or a stalemate.

If you focus on these steps and alternative responses, you can answer a threat at the negotiation table in a way that de-escalates the situation and shows strength at the same time.

For further reading, check out the Program on Negotiation’s blog here and look back at my prior posts about power, empathy, preparation, and BATNA.