Southern Oregon Business Journal - April 2022

Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties Since 2015

The Journal for Business in Southern Oregon

SouthernOregonBusiness.com

MEDFORD COWORK COLLECTIVE OPENS 3RD LOCATION IN ASHLAND PAGE 5

Sponsored by

April 2022

BUSINESS STRATEGIES FOR AN INFLATIONARY ENVIRONMENT PAGE 24

ALL IN - A Masterclass on Leadership from Gene Pelham as he retires as CEO of Rogue Credit Union Page 6

All In… Gene Pelham retired as CEO of Rogue Credit Union. It grew 10X during his tenure because of a simple strategy he had adopted when he became CEO. “Our strategy was to create the most loyal members in the nation.”

He used poker chips to explain his idea. The board, the exec team and all the staff needed to be “All In” in order for it to work.

I interviewed him and in his calm voice he gave me a master class in building loyalty, board and team buy-in and reminded me about something that I knew but didn’t know I knew, until I interviewed him. Southern Oregon has been built by people born and raised here. He also threw down a pile of leadership gems and basic business fundamentals that everyone of us should read. Over and over again. The class is free and starts on page 6.

On page 26, I try out a new technology called Otter.AI. It listens to videos on YouTube or your zoom meeting and transcribes it on the y. I used it to transcribe SOU President Rick Bailey’s March video address to the community. It’s a great message he gives and the Otter.AI did a pretty good job transcribing it.

I toured the new Ashland Co Working space and I loved it. I started Oregon’s rst co-working space back in 1998. I called it “Thinkubater.com” - It was just too far ahead of it’s time. Abigail Schilling is the creator of the Medford Cowork Collective and the Ashland space is her third. Her story is amazing. She launched in January 2020 and was shut down in March because of the pandemic yet somehow she survived and grew. She also hosts free masterclasses on her site virtually the 3rd Wednesday of each month. Check it out on Page 5.

PLEASE SUPPORT OUR SPONSORS AMERITITLE - PAGE 4 ONE BANK, ONE NAME - PEOPLE’S BANK - PAGE 28 MANAGED HOME NET - PAGE 29 SOU - LEADERSHIP BEGINS HERE SOUTHERN OREGON UNIVERSITY PAGE 31 UMPQUA BROADBAND - PAGE 34

Finally let me say thank you. Last year we grew to 22,000 readers of the journal for 2021 and in the 3 months of 2022 we have grown to 44,000 readers already. I’m nervously excited about this. But I don’t want to get too excited. I don’t think these are all business owners or dreamers and policy makers. I think that February and March had articles that attracted a much wider audience.

Now I think it will settle down and get back to normal. But now I know what all those “in uencers” feel like when they get so many likes. Maybe I should post a celebratory TikTok or something. No, I’ll just keep nding stories about businesses in Southern Oregon to inspire us.

Thanks for reading.

Looking forward, Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.

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A Few Words from Jim

The Southern Oregon Business Journal extends sincere thanks to the following companies for sponsoring the journal. Without their support we could not produce a FREE resource for Southern Oregon businesses.

Jim Jim@SouthernOregonBusiness.com

Cover photo of Gene Pelham supplied

by Gene Pelham

5350 HWY 66, Ashland, Oregon 97520

www.SouthernOregonBusiness.com

A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

APRIL 2022 - TABLE OF CONTENTS

Medford Cowork Collective Opens 3rd Location in Ashland - Page 5

ALL IN - A Masterclass on Leadership From Gene Pelham as He Retires as CEO of Rogue Credit Union - Page 6 Board Announces Incoming Rcc President - Page 14 Leigh Gower Joins Dutch Bros Coffee As Company's First Chief Technology Of cer - Page 16 Sid Deboer Honored as a 2022 Oregon History Maker by the Oregon Historical Society - Page 17

Lithia & Driveway (Lad) Increases Revenue 60%, Eps 36%, and Adjusted Eps 109%, Record Fourth Quarter Performance - Page 18 Willamette Valley Vineyards Posts A Pro t for 2021 - Page 20 Andrea Reeder Named Vice President and Executive Director for Asante Foundation - Page 22

Asante Foundation Hits $35 Million Milestone for Asanteforward Campaign - Page 23 Business Strategies for an In ationary Environment - Page 24 Sou President Rick Bailey Jr. - March 2022 Update - Page 26 Late Wrestling Coach Leaves Largest-Ever Gift to SOU - Page 30 How Good Is Good Enough? A Fine Line - Page 33 People’s Bank Hires Evp/Chief Credit Of cer Bill Whalen- Page 37

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People's Bank Jacksonville Branch Now Open - Page 38 (Back Cover)

By Jim Teece with copy from www.medfordcowork.com Photo by Jim Teece

Medford Cowork Collective opens 3rd location in Ashland you’ll nd inspiration, motivation and enrichment at each step of the journey.

They have three locations in the Rogue Valley: historic Downtown Medford, and East Medford, and now South Ashland.

With different setups, spaces, and memberships across locations, there's something for everyone.

Medford Cowork Collective was started by Abigail Schilling. She opened the downtown Medford location in January 2020 and the pandemic shut it down in March.

It’s hard enough to start a business, but then she immediately had to navigate the pandemic shutdown.

Coworking: getting your work done… but with other people nearby.

It’s that simple. Coworking is just what it sounds like: “co” means “not by yourself”,” and “working” means “what you do to make money and (we hope) inspire your passions.”

The growth of digital tools makes us more connected than ever. But these same tools can also leave us feeling isolated. While companies increasingly encourage employees to work from the place they feel happiest, those “remote” (non-location-based) workers may miss the stability and hospitality of a consistent workspace.

Entrepreneurs have exciting ideas, but need mentorship, connections and room to grow. And as small businesses expand, they nd themselves caught between the home of ce and the corner suite: too big, too small; too much support, or too little.

We meet visionaries, creatives, and locationindependent professionals where they are.

Coworking offers the right t to help remote workers feel connected, entrepreneurs make vital connections, and small businesses thrive.

But not only did the business survived, it grew.

Once things opened back up again and everyone needed to work from home, her space lled up as people didn’t have space to work from home. She expanded the space into the second location and that lled pretty quickly so she started looking in Ashland.

There’s a movement happening around coworking spaces for good reason. They eliminate the time-sucking tasks and expenses that bog down business owners.

The Ashland space is warm and inviting and already has several co-workers taking advantage of the amazing views and onsite bike and car parking as well as all the other amenities.

Medford Cowork Collective is a coworking space.

They provide desks, private of ces, super fast internet, conference rooms with exible membership plans that t your needs.

—

But they also provide something that goes beyond space. They’re building community, empowering remote workers, and stimulating the local economy in downtown Medford with a woman-owned business.

Membership gives you immediate access to the essentials you need to get down to business and provides you with direct access to a thriving community of skilled professionals.

Bottom line —it’s okay to choose your own path.

And with the right support and community,

Abigail Schilling is the founder of Medford Cowork Collective and a Certi ed Coworking Space Operator from Jamie Russo’s Coworking Startup School. A former product manager and community manager at a coworking space in Downtown Los Angeles, Abigail’s career spans two decades of business, marketing and management experience. She currently works as a business development coach and digital marketing strategist for entrepreneurs and specializes in helping small business owners scale their products and services.

Find out more at medfordcowork.com and ashlandworks.co

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JACKSON COUNTY

By Jim Teece

ALL IN - A Masterclass on Leadership from Gene Pelham as he retires as CEO of Rogue Credit Union

Photo provided by Rogue Credit Union

I have known Gene Pelham for many years and when he announced last year that he was retiring on March 31, 2022 as CEO of Rogue Credit Union, I reached out to him for a quick interview over zoom. I thought this was going to be a simple story about a business leader retiring and that was that. What I realized as I went through the interview and as I read my notes and listened over and over again to the recording was that this is something more and I needed to gure out when to share it. When I was invited to his retirement party, put on by the credit union, and after the nal farewell and thank you was said, I knew it was time to share this story.

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INSPIRING BUSINESS PEOPLE

Southern Oregon is built on leadership born and raised here.

I see it time and time again. I’m hoping Gene’s story is a reminder that local leaders are what built our community.

You can be born and raised in Southern Oregon and be a world class leader that grows an organization to its fullest potential and be a community minded leader that serves on local boards and make wider and deeper differences every day. This is true with Gene Pelham as well as Ken Trautman, Sid DeBoer, Jim Wright and so many amazing leaders in Southern Oregon that I have had the honor to know and serve with over the years.

Gene’s Story “In high school, the last thing I had ever imagined was working in nancial services.”

Gene Pelham graduated from Eagle Point High School in 1978. He didn’t think he would be able to go to college.

His dad was a truck driver in the lumber industry. He wanted to be a baseball coach and history teacher but he thought that college wasn’t in his future due to cost. But a high school guidance councilor reached out to him and told him to ll out a form for a US Bank Scholarship. Back then US Bank was an

much larger Credit Union and he was about to be sent to Portland to work there. That’s when Tim called and offered Gene the job back in the valley. The timing was perfect.

When he took over, they were about $360 million in assets with 3 full service branches and 2 partial service branches and now they are nearly $3 billion in assets with 27 branches.

He graduated from college and worked for them until 1985. “I came out after ve years with my degree, and two years of experience at the bank with everything from from being a really bad drive up teller, to a not so bad commercial lender.”

“I grew up in a town of 1,500 people, raised my kids in a town of 2,000 people and I didn't want to live in a major metropolitan area.”

The credit union was founded by Jim Johnston and a handful of teachers and it was run out of Jim’s home on New Town Street in Medford for a few years. It started in his living room and a little alcove in his house and grew from there.

Gene became the 4th CEO of the Credit Union and it happened to be during the start of the Great Recession. He used the year to identify the strategy they wanted to focus on, built consensus with his board and the teams and introduced it to his staff in early 2008.

“The only reason I left the bank was because I didn’t want to move to Portland to advance my career. I went to Rogue Federal Credit Union and applied and had a great interview but they didn’t hire me because I worked for a bank. There has always been this yin and yang thing about credit unions and banks. So I went to work for another credit union and in 9 months got transferred to Eugene/Spring eld and spent 18 years there.“ During the time he spent in Eugene/Spring eld, the man that interviewed him at Rogue, and didn’t hire him was Tim Alford. Tim became CEO of Rogue and kept an eye on Gene and watched how his career progressed. When Tim was ready to retire, he called Gene and said “Would you like to come back home?”

Gene had worked his way up to CEO of a smaller credit union in Eugene/ Spring eld that had just merged with a

The strategy was simple. Gene wanted the Credit Union to create an experience where people wanted to come do business with them and tell others about how great it is to do business with them. He wanted to create an experience like Costco and USAA was doing.

Newsletter from 2003 announcing Gene Pelham joining Rogue provided by Rogue Credit Union

He jokes with staff all the time, about how it may of taken them a month or two or six to get a job at Rogue but it took Gene 18 years.

He came back to the valley in 2003 and became CEO in 2007.

“Our strategy was to create the most loyal members in the nation.” Not just of Credit Unions, but the most loyal members of any organization.

The result of the strategic shift was that 90% of all new members that joined the Credit Union were referred by somebody

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Oregon Bank and they had a program where 20 students a year were paid full tuition scholarships to go to college, get a degree and then go to work for the bank.

Timeline of Gene’s Impact at Rogue provided by Rogue Credit Union

else, a friend, family member, or co worker.

They adopted the new strategy in April 2008 during the world nancial crisis.

“Growth has been a result, not a strategy of the credit union.”

Gene credits his board for trusting him to build long-term loyalty and taking care of the members when times were tough.

“We let people keep cars longer than they should have.”

Gene’s vision was to be an organization that was good to be loyal to, not only from a member perspective but from a staff perspective as well. When they did their initial surveys they realized they were not an organization to be loyal to.

“We had member rewards that were anything but rewarding” They rewarded members only if they did business the way the Credit Union wanted them to, not the way they wanted to do business with the Credit Union. He even has seen comments eight years after stopping the old way and some members were still upset about it.

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“Other local well respected institutions were struggling, being acquired by other institutions and peoples accounts were changed.”

“We were there along with People’s Bank when folks needed it most. I look at our two organizations since that time. We created this incredible connection with folks that they do business with, even if it’s not the most economically bene cial to them but it is emotionally bene cial to them.”

“People still buy and choose based on how they feel and what the emotions are and whether they can trust and we're in institutions that create trust. That’s why we have the largest market share of consumer auto lending.”

“We have the largest market share in deposits in the markets that we serve and our deposit rates are lower and our loan rates are higher.”

“That's why I say, growth was never a strategy. Growth was a result of just focusing on trying to do the right thing, and creating an organization people could trust. And that's what has been the foundation of everything that we've done.”

I asked Gene what it was like to announce his retirement and pick his successor. He reminded me that it took him 18 years to get the job at Rogue and he is con dent that the rst person he hired when he became CEO 18 years ago, Matt Stephenson, has been groomed since coming on board. Gene negotiated his nal contract 5 years ago, knowing this day would come and has spent the last 5 years making sure that his replacement would be able to take over without missing a beat.

Gene told me that he is running Rogue 4.0 and that Matt will be running Rogue 5.0. The next version of the credit Union will compete in a completely different economic and technological environment and it will need a different skill set to engage and excite members and staff. He also shared with me that it became dif cult for him to remember the names and faces of everyone when the credit union grew to 300 employees, it now has over 600.

“He's been my executive vice president for several years, working very closely, and actually running the majority of the day to day operations for a while, which has allowed me to be involved in the community and have the opportunity to in uence staff more directly. It was a process that was a plan and I've been working with the board speci cally, since 2017, to make sure that we execute the plan.”

When I asked Gene about the next generation of members and their expectations to banking digitally he dropped deeper into Professor Gene mode and walked me through the process that the Credit Union went

through to test the readiness of it’s members to do banking fully online. This is brilliant stuff and he could easily do a 10 week master class on this. As you read it, he focuses on his experiences with members in a nancial institution but really it will apply to all industries.

“We started talking about ‘Figital’ a long time ago” ‘Figital’ is a buzzword used in the banking industry to explain a concept of making the digital experience similar to the physical experience. For 20 years Gene and his team have been watching industry trends and expected that members would expect to do more banking digitally than in person so they experimented. They opened a cashless branch with ATMS in the lobby and folks to help make loans in the early 2000’s and it wasn’t a success. They quickly saw that their members were not ready for that. In fact tellers were going to the ATM and taking cash out out of their own account and giving it to the customer, just to satisfy the customer expectation.

They realized their members wanted to come into the branch and work with a teller instead of a machine.

Then they added a full service ATM in the lobby of busy branches because the lines to talk to the teller were long but no one would step out of line to use it, so they pulled it out.

“Every time we think that people won’t use branches again, they surprise us” The Central Point branch doubled in physical size in 2018 and it was overwhelmed in a years time by the volume of business.

But there are changes. They are noticing that the average number of transactions per member in a branch are decreasing very, very slightly, and the overall number of transactions a member is doing is increasing exponentially. They are utilizing “Express Teller Machines” where you can drive up and deal with a live person via video from 7am to 7pm.

Gene goes on to explain that the big banks are ‘reading their own press releases’ about customers not wanting to do business in a branch anymore and when they close a branch, it oods the credit union nearby with new members.

“What we've seen is that more and more nancial institutions push people away from the personal delivery options.”

“Now the big problem with that so many credit unions are still trying to be the low cost leader or the low price leader in what they do. And that's a recipe for failure immediately. If you're trying to provide all this personalized service and not getting a fair return for it you fail. So that's that's why our deposit rates are better than most but not the best, and our loan rates are better than most, but not the best.”

“Our members are willing to pay for the service.”

“We also just invested $8 million to upgrade our data systems to make them more plug and play with all the new things coming on as we go forward.

We're exploring relationships with a variety of ntechs that can do things better than we have. Our technology group went from having four guys when

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Southern Oregon Business Journal April 2022 | 9

GENE PELHAM AUDITORIUM

Artist Rendering of the New Gene Pelham Auditorium in the Credit Union Headquarters Expansion provided by Rogue Credit Union

Matt started to 40 plus folks in our technology department now, with everything from development to infrastructure to service type things.”

“We’re trying to be prepared. I liken it to kind of being on the balls of your feet, able to move whichever way the markets do. I've seen so many institutions kind of pigeonhole themselves into either a full technology strategy or a full physical strategy. And, that's not the way people are doing business today. Why is Walmart still open? It's because people still want a physical experience. Why did Amazon buy whole foods? They looked for that physical outlet.”

“Fortunately, people want to do business in person. And they're willing to pay for

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it. But at the same point, they want to do business in person when it's convenient for them, but they also want their app to work and they want somebody to answer the phone and they want the Express teller machine to be available. So it is incredibly challenging” “We’re trying to take and bottle up the incredible physical experience and make sure that's felt digitally. Because we believe that there still is an opportunity to create loyalty, even through the physical and the digital experience.”

“And we're also seeing so many folks say the millennials will only use technology.

That's not what we're seeing when you come stand in our lobbies.”

“One of the things that folks fail to realize is what have Millennials grown up with. They've grown up with their parents being there, to provide advice and all the other things. And so while they don't want to go to their parents, they're used to seeking the advice and input of others before they make decisions. And we're that trusted source for them. They'll sit in our lobbies, in our of ces with our member service representatives, because they need some kind of assurance before they move forward. I think that's being lost in all the white papers, and all the research that's going on out there. Millennials still need that con rmation. And yes, they get it from each other. But who did they get it from for the most formative years of their life, an older, more wiser

those loans to perform exceptionally well.”

“I was contacted by a credit union in Ontario, Oregon, they had lost their CEO, and they were putting out a request for proposal from merchant partners. This was just as COVID was starting to take place. They begged us to put in a request for proposal, and so we did. And of course, they chose us as the credit union that they wanted to business with, because of what we stood for and our focus on rural communities. “

I let Gene catch his breath and asked him about how they grew so fast and if they were challenged by being able to nd good employees.

“Which gave us not only a presence in Eastern Oregon, but Western Idaho, so now we have branches in Oregon and Idaho, and the ability to serve Northern California. So we're we're spreading quite a bit from little Medford, Oregon, but it's the reality. Like I said, we invested $8 million in technology. You have to be this size to be able to afford the technology that consumers demand today.”

“During the nancial crisis, Chetco Federal Credit Union, on the coast, failed and they were being run by our regulator/insurer. We did a full court press because we knew that if they went to another credit union, it would have a signi cant impact on our ability to be strong in this market. We won the bid for them and because we “The incredible success and the bid that so well, and we support of Southern Oregon that built such a good case on we've seen has resulted in the that acquisition fact that we're employing more purchasing assumption, and more and more people here Gene’s retirement was celebrated by sta and this post is just one of many that the loans performed in Southern Oregon and we celebrated him on his last day at work. Shared with permission by Laura. much better through our were out of room.”

“There's no way to create additional net leadership and guidance in creating worth unless you create additional loyalty with those folks. The loans “Everybody thought that people spent income, and we would never have been performed much better than the their COVID relief money. No, they saved able to grow at the rate we were able to regulator's thought they would.” their money. And so we grew from March grow, over the last several years, without of 2020 to March of 2021 from $1 buying that credit union, and getting billion in assets and now we’re at $2.8.”

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person. And so they see our MSRs even though they're one or two years older, as being an older, wiser advisor to help them make important nancial decisions such as buying their rst car, buying their rst home, or saving for their retirement.”

“Now, we’re in the throes of all organizational kind of upheaval, in creating systems and processes and an ability to serve larger groups and one of the results of that is staff members. We were already seeing that and thought about building this new building, prior to that massive growth. But when we built the building out at 30,000 feet, in 2016, we thought that would last us ve to seven years. Within two to three years, we're already lling closets back up and shrinking down cubicles. So we tried to be a little bit more progressive in our thinking on this new building. And we thought we were going to maybe take advantage of the downturn, and lower construction costs and all the things that go with it. And then that didn't happen.

Everything else happened and the construction in the Rogue Valley just exploded. “ “We hope to have well over 200 people in this new building and will have an auditorium for us because we believe bringing people together is still important. We will also have a mock branch for training, so staff members can actually work in an actual branch.”

Rogue also has a 16,000 SQFT building that houses their call center which is where the live tellers work for all the video ATMs. To wrap up the interview I asked Gene about growing up in Eagle Point.

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I asked Gene about the massive construction project across the street from their headquarters and what the plan is to ll the space.

“My dad was a log truck driver and worked in the mills and my mom worked in retail. Eagle Point was a great place for me to be raised. I got a chance to play a variety of sports, whether it was baseball, football, or even run track. My coaches were great examples and mentors for me. I found out that I never was the best athlete, but man I was a great teammate.”

crazy busy for me, just to kind of help us stay on top of things here.“

“It's just one of the things I've kind of gured out. I wasn't always the best practitioner, but I helped others be better. I was fortunate… my junior year, we played for the baseball state championship and lost it by one game.

But my senior year, we won the state championship in baseball. All of those things kind of gave me the leg up on the US Bank scholarship. It was those abilities to be part of successful teams.

That's been kind of a foundation for me, for everything I've done. Finding a way to help teams and individuals realize their full potential and even if you don't have a bunch of superstars, if you have everybody on the team, realizing their full potential, you'll be superstars every day. That's probably one of the greatest things I'm proud of. It’s the various teams that I've been on or coached and how we over achieved in each of those times. It was fun to see people realize that they can have success.“

“We will relocate most of the time to south of Eugene, because I was in Eugene, for 18 years. My kids were raised there. That's their home. That's where my son is raising his family. One of the reasons I chose to retire at 62 instead of later, is if I retired at 65, my grandson would be right at the point of graduating from high school, and I would never really have had the opportunity to be an active part of his life. And so that's what I'm choosing to do.”

“My wife and I celebrated our 43rd wedding anniversary in September. We were high-school sweethearts. She was the scorekeeper on our state championship baseball team. We've kind of traveled this journey together. She was a hairdresser, and ran her own business for several years. And now she’s retired because things have gotten so

“Because being the CEO is not a part time job or full time job. It is an all the time job.“ “What I plan to do in the future is slow down a little bit. I hope to be able to help smaller credit unions and non-pro ts.”

Gene also bragged about his daughters dog “lucyloo_cavapoo” with over 9 million views on TikTok. “We focused on teams from the very beginning. Building a sense of team with our board. I've got an incredible board of directors of local community people that are incredibly bright, and also able to see my vision, challenge my vision, and help me build the vision as we go forward.”

“I would say to a CEO or a leader, build the right kind of relationship with your board, because it's a trusting relationship.”

“If you create a positive experience for the member, and staff members are not asked to just sell the product of the day,

Photo of Gene Pelham provided by Gene Pelham

they're asked to truly help people in a way that creates loyalty, and in a way that staff feel really good about… if we do those two things, then we're going to make enough money to be successful, and if we do that well enough, then we're able to spin that off and share that with the community. “ “That’s the thing I'm proudest of. Our board and our staff members have joined together with a belief of what we're trying to do is for us to be able to have a signi cant impact on the communities that we serve.”

Our hour long zoom interview was over and my head was spinning. Gene the

“history teacher” dropped hundreds of gems about his leadership philosophy and his history. Many of which I’m sharing with you today and some I will save for future articles. In the days, weeks and months since our interview Gene shared more wisdom with me, as it came to him or as I asked followup questions.

Yes he is a great CEO who went “All In” on expanding an organization with the simple strategy based on creating the most loyal members in the nation but he is also a great teacher, mentor and community leader and I can’t wait to learn from him during the next chapter of his life.

Congratulations Gene. Enjoy retirement.

—Gene’s Favorite Leadership Books : Steven Covey's 7 Habits of Highly Effective People Kouznes and Pousner's The Leadership Challenge and one of their follow ups Encourage the Heart Leadership and Self-Deception by the Arbinger Institute 5 Dysfunctions of a Team are great tools I use to build effective leaders and teams. In addition, anything by John Maxwell is always a go to...

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JACKSON AND JOSEPHINE COUNTIES

Board Announces Incoming RCC President

By RCC Press Release

Rogue Community College (RCC) is happy to announce the selection of Dr. Randy Weber, currently Executive Vice President, Chief Student Success & Strategy Of cer at Johnson County Community College (Kansas), as its next president.

Following a unanimous vote of con rmation by all members of the RCC Board of Education present on Wednesday, March 23, Dr. Weber will become the college’s 7th president, and will begin his tenure on July 1.

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A proven senior administrator, executive and thought leader, Dr. Weber was selected following an eight-month nationwide search led by a 20-member Presidential Search Committee appointed by the RCC Board of Education. The committee included a range of RCC District stakeholders including faculty, staff, students, board members, and community members.

Dr. Weber will succeed retiring president Dr. Cathy Kemper-Pelle at RCC, an institution recognized for its accessibility to students, responsive

partnerships with regional employers and industries, excellent career and technical programs, and strong student transfer success to four-year institutions.

RCC’s three campuses (Grants Pass, White City and Medford) annually serve over 6,800 students from Jackson and Josephine counties.

“Dr. Weber is a dynamic and innovative leader who is extraordinarily quali ed to lead our college in the 21st century,” said Roger Stokes, chair of the RCC Board of Education, in making the announcement. “Like many of RCC’s

faculty, Dr. Weber demonstrates exemplary academic accomplishments coupled with student-focused responsiveness, both honed during his years of administrative leadership at three other large community colleges.”

Dr. Weber received an EdD at Baker University in Overland Park, Kansas and began his educational journey at Barton County Community College in Great Bend, Kansas. As a rst-generation community college graduate, Dr. Weber shared with RCC’s Board that he “places high importance on the commitment to access and completion for all students,” regardless of their background, challenges or aspirations.

Dr. Weber has fourteen years of cabinetlevel experience overseeing student affairs, nance, administrative services, enrollment, and institutional effectiveness in community colleges in both Colorado and Kansas. His resume includes leading collaborative initiatives with an array of community partners that improved student success rates, lowered entrance barriers for students, and increased student satisfaction and retention.

“Dr. Weber is bringing an inspiring vision for RCC just as our student enrollments are rebounding from the COVID crisis, which has affected all colleges,” said Stokes. “He recognizes that higher education is changing and that the future of work, student career advancement and community economic

strength lies in close ties between academic programs and real-world employment. He is a strong choice to lead RCC into an exciting future lled with promise and opportunity.”

“I am truly honored to be selected as the next president at Rogue Community College. I look forward to working with dedicated faculty and staff in supporting the students and communities we serve throughout Josephine and Jackson counties,” said Dr. Weber. “Together we will continue to increase student success and effectively support regional workforce needs.”

Johnson County Community College, Dr. Weber’s current college, enrolls over 27,000 credit students and 25,000 noncredit students annually with approximately 3,000 employees and a $220 million operating and capital budget. At the national level, Dr. Weber has also served as a presenter and consultant on enrollment management and academic advising strategies for community college leadership conferences.

Sharing thoughts about the institution he will be stepping in to lead, Dr. Weber said, “I believe in all this institution has achieved since opening in 1970, and also believe RCC’s best days are yet to come. I know I am receiving the reins from an inspiring leader in Dr. KemperPelle, who has strengthened an already expert team. I feel con dent together,

our team will achieve new heights in educational success.”

Re ecting on Dr. Kemper-Pelle’s service to RCC, Stokes added, “Cathy KemperPelle has devoted six years to RCC’s success, and we are all better for her service. She has been a tireless champion for the college and our students, and we wish her a long and happy retirement.”

“My time at RCC has taught me that this college is constantly evolving, while always remaining true to its mission. I am sure that Dr. Weber will nd the faculty, staff, community and students excited for the future and ready to move the college forward,” said Dr. Cathy Kemper-Pelle. “I wish him well, and I look forward to working together to ensure a seamless transition.” In alignment with Dr. Kemper-Pelle’s last day, June 30, 2022, a transition period will be undertaken with Dr. Weber.

To introduce Dr. Weber to students, faculty, staff and the community, RCC will host an informal event over the summer and again as fall term begins.

Details on those events will be posted on the RCC website and in local press.

RCC was assisted in the search process

by Gold Hill Associates, a community college executive search rm that has facilitated over 100 community colleges in searches for new presidents and executives.

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Southern Oregon Business Journal April 2022 | 15

DUTCH BROS

By Press Release https://www.prnewswire.com/news-releases/leigh-gower-joins-dutch-bros-coffee-ascompanys- rst-chief-technology-of cer-301453927.html

Leigh Gower Joins Dutch Bros Coffee as Company's First Chief Technology Of cer

"My passion has always been enabling businesses with effective technology to power compelling customer experiences," said Gower. "Dutch Bros is a disruptive brand de ning its own path, and passionate about speed, quality and service as core values. I look forward to working with an incredible team and approaching new ways of reaching our customers with a culture of curiosity and collaboration."

About Dutch Bros

Experienced businesswoman Leigh Gower has joined Dutch Bros Coffee as the drive-thru beverage company's rst Chief Technology Of cer. Gower brings a 20 year background of helping companies transform customer service using technology.

"Leigh has dedicated her career to customer-focused, transformative work.

She recognizes the need to seamlessly integrate technology into everything we do to create a awless, personal experience," said Joth Ricci, President

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16 | Southern Oregon Business Journal April 2022

and CEO of Dutch Bros. "We're excited about the expertise she brings to this role and look forward to her guidance in connecting with our customers in new ways."

Gower assumed the role of Chief Technology Of cer on Dec. 1, 2021. Prior to joining Dutch Bros, Gower served as Vice President, Technology at Blue Nile.

Prior to Blue Nile, Gower served as a Senior Director, Product & Technology at T-Mobile and as a Management Consultant at Slalom Consulting.

Dutch Bros Coffee is a drive-thru coffee company dedicated to making a massive difference one cup at a time.

Headquartered in Grants Pass, Oregon, where it was founded in 1992 by Dane and Travis Boersma, it's now sharing the "Dutch Luv" with more than 500 locations in 12 states. Dutch Bros serves specialty coffee, smoothies, freezes, teas, its exclusive Dutch Bros Blue Rebel energy drink and nitrogen-infused cold brew coffee. Its rich, proprietary coffee blend is handcrafted from start to nish.

In addition to its mission of speed, quality and service, Dutch Bros is committed to giving back to the communities it serves. Through its Dutch Bros Foundation and local franchisees, the company donates several million dollars to causes across the country each year.

To learn more about Dutch Bros, visit www.dutchbros.com

INSPIRING BUSINESS PEOPLE

Sid Deboer honored as a 2022 Oregon History Maker by the Oregon Historical Society

By Oregon Historical Society News https://www.ohs.org/support/history-makers.cfm

innovations in business, communications, and the arts; or service in their communities. Whether they were born here, lived here, or work here, these Oregon History Makers represent the best of what the state has to offer.

Sid DeBoer VISIONARY BUSINESS LEADER AND PHILANTHROPIST

History Makers The Oregon Historical Society’s annual Oregon History Makers Awards & Dinner recognizes contemporary individuals and organizations that are positively shaping the history, culture, and landscape of Oregon. Event sponsorships, ticket sales, and donations in honor of the History Makers support the Oregon Historical Society’s

important work to collect, preserve, and interpret Oregon’s past. ohs.org Who Is An Oregon History Maker?

Each year, the Oregon Historical Society honors living leaders and organizations that are making history through scienti c discovery and exploration;

Growing up in a large family in Ashland, where he and his siblings worked at their father’s Lithia Motors dealership, Sid DeBoer learned the automobile sales business from the ground up. When he took over the business after his father’s death in 1968, DeBoer created his own legacy by making Lithia Motors a symbol of hard work, honor, and family — with nearly 300 locations, it is now the third largest automotive retailer in the United States. Believing that greatness is determined not by what you have, but by what you give, DeBoer is the founder and president of the Sid and Karen DeBoer Foundation, which supports youth-mentoring programs, hospitals, the arts, cancer research, and universities, among other worthy causes.

DeBoer is also the founder of Lithia4Kids, an initiative dedicated to teaching, inspiring, strengthening, and empowering today’s youth through more than $5 million in donations to organizations and programs that enrich the lives of children and their families.

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Southern Oregon Business Journal April 2022 | 17

Lithia & Driveway (Lad) Increases Revenue 60%, Eps 36%, And Adjusted Eps 109%, Record Fourth Quarter Performance

LITHIA & DRIVEWAY

By Press Release

ANNOUNCES DIVIDEND OF $0.35 PER SHARE FOR FOURTH

Fourth Quarter-over-Quarter Comparisons and Operating

QUARTER

Highlights:

MEDFORD, Ore., Feb. 9, 2022 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today reported the highest fourth quarter revenue and earnings per share in company history.

• Revenues increased 60.1% • New vehicle retail revenues increased 37.7% • Used vehicle retail revenues increased 82.1%

Fourth quarter 2021 revenue increased 60% to $6.3

• 1,650 Driveway transactions in the month of December,

billion from $3.9 billion in the fourth quarter of 2020.

Fourth quarter 2021 net income attributable to LAD per diluted share was $9.57, a 36% increase from $7.02 per diluted share reported in the fourth quarter of 2020. Adjusted fourth quarter 2021 net income attributable to LAD per diluted share was $11.39, a 109% increase compared to $5.46 per diluted

exceeding the 1,250 transaction or 15,000 annual runrate goal • F&I per unit increased 23.3% to $2,125 • Service, body, and parts revenues increased 58.3% • Total vehicle gross pro t per unit increased 57.4%

share in the same period of 2020.

Fourth quarter 2021 net income was $293 million, a 56% increase compared to net income of $188 million in the same period of 2020. Adjusted fourth quarter 2021 net income was $348 million, a 138% increase compared to adjusted net income of $146 million for the same period of 2020.

to $6,882 • Adjusted SG&A as a percentage of gross pro t improved by 520 basis points from 62.0% to 56.8% "Strong performance across all business lines drove a record $11.39 in adjusted earnings per share for the fourth

As shown in the attached non-GAAP reconciliation tables, the

quarter," said Bryan DeBoer, Lithia & Driveway's President and

2021 fourth quarter adjusted results exclude a $1.82 per diluted

CEO. "Whether it was our stores increasing used vehicle volumes

share net non-core charge related to a non-cash unrealized

and service, body, and parts revenues by double digits, Driveway

investment loss, acquisition expenses and insurance reserves,

out-performing its December targets, or accelerated growth in

partially offset by a net gain on the sale of stores. The 2020 fourth

Driveway Finance funded by our rst ABS transaction, our

quarter adjusted results include a $1.56 per diluted share net

synergistic businesses are a capital engine, providing signi cant

non-core bene t related to a non-cash unrealized investment

pro tability and exibility for the road ahead."

gain, a net gain on the sale of stores, partially offset by

Full year 2021 revenue increased 74% to a record $22.8

acquisition expenses.

billion from $13.1 billion in 2020.

Full year 2021 net income per diluted share increased 87% to $36.54 from $19.53 for 2020. Adjusted net income per diluted share increased 120% to $40.03 from $18.19 for 2020.

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18 | Southern Oregon Business Journal April 2022

Full year 2021 net income increased 126% to $1.1

Sullivan CJDR build out our brand footprint in the Sacramento,

billion from $470 million for 2020. Adjusted net income

CA market. Collectively the stores are expected to generate $700

increased 166% to $1.2 billion for 2021 from $438 million for

million in annualized revenue.

2020.

"Since the launch of our 2025 Plan 18 months ago, we have

As shown in the attached non-GAAP reconciliation tables, the

acquired over $11 billion in annualized revenue," said DeBoer.

2021 adjusted results exclude a $3.49 per diluted share net non-

"Increasing our network fuels Driveway's growth, our overall size

core charge related to a non-cash unrealized investment loss,

and scale and ability to further expand our competitive

acquisition expenses, the redemption of senior notes, insurance

advantages in used vehicle procurement, reconditioning, and

reserves and an asset impairment. The 2020 adjusted results

logistics. LAD's reputation in the marketplace and the magnitude

exclude a $1.34 per diluted share net non-core bene t related to

of the deal pipeline makes us con dent in our ability to

a non-cash unrealized investment gain, a net gain on sale of

strategically expand our network while meeting our disciplined

stores, and tax attribute, partially offset by asset impairments,

return thresholds."

insurance reserves and acquisition expenses.

Balance Sheet Update

Full Year-over-Year Operating Highlights:

We ended the fourth quarter with approximately $1.5 billion in cash and availability on our revolving lines of credit. In addition,

• Record full year revenues of $22.8 billion

our un nanced real estate could provide additional liquidity of

• Used vehicle retail sales increased 81.5%

approximately $1.0 billion.

• F&I per unit increased 19.8% to $1,960

Dividend Payment and Share Repurchases

• Total vehicle gross pro t per unit increased 38.4% to $5,855

Our Board of Directors approved a dividend of $0.35 per share related to fourth quarter 2021 nancial results. We expect to pay the dividend on March 25, 2022 to shareholders of record on

• Adjusted SG&A as a percentage of gross pro t improved by 730 basis points to 57.2%

March 11, 2022.

During the fourth quarter, we repurchased 756,883 shares or

• Driveway Finance completed its inaugural ABS offering and scaled portfolio to over $700 million

approximately 2.5% of shares outstanding, at a weighted average price of $283.75. To date in 2022, we have repurchased approximately an additional 154,923 at a weighted average

Corporate Development In the fourth quarter, we completed several acquisitions expected to contribute $700 million in annualized revenue. To date in

price of $283.89. Under our current share repurchase authorization, approximately $679 million remains available.

2022, we acquired three stores from the Sullivan Auto Group. Roseville Toyota, one of the highest volume Toyota stores in the US, along with John L. Sullivan Chevrolet, and John L.

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Southern Oregon Business Journal April 2022 | 19

WILLAMETTE VALLEY

Willamette Valley Vineyards Posts a Pro t for 2021

By Press Release https://www.prnewswire.com/news-releases/willamette-valley-vineyards-posts-a-pro tfor-2021-301513332.html# nancial-modal

SALEM, Ore., March 29, 2022 / PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the "Company"), a leading Oregon producer of Pinot Noir, generated income per common share after preferred dividends of $0.20 and $0.46 for the years ended December 31, 2021 and 2020, respectively, a decrease of $0.26, or 56.6%, for the year ended December 31, 2021 over the prior year period.

an increase in revenue from direct sales of $2,739,589 or 26.0% in 2021 compared to 2020, combined with an increase in revenue from sales to distributors of $1,732,423 or 10.3% in 2021 compared to 2020.

Gross pro t was $18,665,673 and $16,729,776 for the years ended December 31, 2021 and 2020, respectively, an increase of $1,935,897, or 11.6%, for the year ended December 31, 2021 over the prior year period. This increase was generally driven by an increase in sales revenues partially offset by a higher cost of sales.

The Company had net sales revenues of $31,786,864 and $27,314,852 for the years December 31, 2021 and 2020, respectively, an increase of $4,472,012 or 16.4%, for the year ended December 31, 2021 over the prior year period primarily as a result of

Selling, general and administrative expenses were $14,975,654 and $11,728,003 for the years

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20 | Southern Oregon Business Journal April 2022

ended December 31, 2021 and 2020, respectively, an increase of $3,247,651, or 27.7%, for the year ended December 31, 2021 over the prior year period.

Net income was $2,445,463 and $3,394,996, for the years ended December 31, 2021 and 2020, respectively, a decrease of $949,533, or 28.0%, for the year ended December 31, 2021 over the prior year period.

Jim Bernau, Founder and CEO of the winery said "Our largest volume products are continuing to experience high demand such that we are now very tight on inventories and are allocating some key wines. We believe this tight inventory situation will limit our revenue growth until such time as we can rebuild

our wine inventories. We are also expecting to experience some margin reductions in 2022, mostly as a result of certain supply logistical delays and much higher packaging prices. We believe that our higher SG&A costs in 2021 are enabling us to build a stronger sales and administrative foundation to support our growth, which we believe will lead to greater pro tability in the long term."

For a complete discussion of the Company's nancial condition and operating results, see our Form 10-K for the year ended December 31, 2021, as led with the United States Securities and Exchange Commission on EDGAR. Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon. The Company's common stock is traded on NASDAQ (WVVI).

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Southern Oregon Business Journal April 2022 | 21 fi

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The following is the Company's Statement of Income for the year ended December 31, 2021 compared to the year ended December 31, 2020:

HEALTHCARE

By Press Release asantefoundation.org

Andrea Reeder named vice president and executive director for Asante Foundation aligned with Asante’s vision.”

Reeder joins the Asante executive team, leader of philanthropy for the health system MEDFORD, Ore. (April 5, 2022) Asante Foundation announced that Andrea Reeder has assumed the role of vice president and executive director of Asante Foundation. Andrea began her new duties on Monday, March 28, succeeding Floyd Harmon who retired on March 25.

“Having a strong Foundation is an important asset to Asante as we expand to meet the needs of our community,” said Scott Kelly, president and CEO of Asante. “Andrea’s continued leadership at this level and wealth of philanthropy experience in Southern Oregon are well-

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22 | Southern Oregon Business Journal April 2022

Andrea started with Asante in 2014 as a development director for Asante Foundation. In 2018, she was named campaign director, leading the planning and execution of AsanteForward, the $50 million capital campaign to support Asante’s expansion efforts. To date, Andrea has single-handedly raised nearly $20 million to support the health system.

“It’s such an honor to work with the Southern Oregon community and represent the Asante organization,” said Andrea Reeder. “I look forward to continuing the great momentum through AsanteForward and transforming health care for those we serve throughout our nine-county region.”

Learn more about Asante Foundation: asantefoundation.org.

About Asante Foundation For more than 60 years, philanthropy has helped Asante provide and enhance

health care for communities throughout Southern Oregon and Northern California. Asante Foundation, the philanthropic arm of Asante, a local, community-owned and governed notfor-pro t health system, is an integral partner in Asante’s vision to be your trusted health partner for life – every person, every time. Asante Foundation launched AsanteForward, the most signi cant campaign effort in our history, to transform the quality and scope of health care available in Asante’s ninecounty region, with a goal of at least $50 million. This campaign is the largest philanthropic endeavor ever attempted in this area. At the core of AsanteForward are six speci c initiatives including behavioral health, cancer care, expanded emergency services, Age-Friendly Care and a new patient pavilion to house several areas of care including a new women’s and children’s hospital-withina-hospital, cardiac care, critical care and advanced surgical services. To learn more, please visit asantefoundation.org.

Asante is a local, community-owned and governed not-for-pro t organization with nearly 6,000 employees who provide medical care to nearly 600,000 people in a nine-county area of Southern Oregon and Northern California. It includes Asante Ashland Community Hospital, Asante Physician Partners, Asante Rogue Regional Medical Center in Medford, Asante Three Rivers Medical Center in Grants Pass, and additional health care partnerships throughout the region.

HEALTHCARE

By Press Release asantefoundation.org

Asante Foundation hits $35 million milestone for AsanteForward campaign

Asante Foundation has surpassed the $35 million milestone just four years in to its 10-year, $50 million capital campaign, AsanteForward. This is a result of 9,335 donors who’ve contributed to Asante to help improve the lives of the people who live in our community now and for generations to come.

Alameda. “Asante is a cornerstone of the community. We’re glad to be able to support the AsanteForward campaign with our gift. We encourage everyone to take a moment to consider how they, too, can contribute their time or resources in creating a lasting legacy for our community.”

“The community continues to amaze us with its generosity and commitment to transforming health care in Southern Oregon,” said Andrea Reeder, director of campaign and operations at Asante Foundation. “Philanthropy enables Asante to expand its facilities and services for patients and enhance the programs and capabilities that happen within our walls.”

Since 2019, the community has moved

In 2021, Asante received the largest gift in its history — $5 million from Mary and Dick Heimann — whose names have a permanent mark on the new regional cancer center in Medford. Recently, other community leaders came forward with three historical gifts for AsanteForward: George and Susan Alameda – $1 million toward the patient pavilion, naming the Intensive Care Unit (ICU).

Paul and Geertje de Vos – $1 million toward the Heimann Cancer Center, naming the healing garden.

Wanda Olsrud – $1 million toward the Heimann Cancer Center and children’s hospital-within-a-hospital in the patient pavilion.

“These investment opportunities don’t come around every decade. The need is there. I can point at that [pavilion] and say, ‘We were a part of that’,” said George

Largest philanthropic effort in Southern Oregon surpasses expectations; fueled by community support forward several facets of AsanteForward initiatives: Implemented the rst two phases of the Behavioral Health Initiative, including a new Behavioral Health Unit at Asante Rogue Regional Medical Center, which opened in June 2020, and rolled out trauma-informed care education and training called The Sanctuary Model®.

Expanded the Asante Three Rivers Medical Center Emergency Department and installed a new helipad.

The expanded ED fully opened in December 2020, and the helipad was installed in August 2021.

Built the new Mary and Dick Heimann Cancer Center in Medford and expanded Helen K. Spears Cancer

Center in Grants Pass. Both facilities opened in January 2022.

Broke ground on the new sixstory patient pavilion at Asante Rogue Regional in November 2020. This facility will be home to a new children’s hospital-within-a-hospital, cardiac care, critical care (CCU, ICU and IMCU) and advanced surgical services.

Construction is expected to be completed in fall of 2023.

In 2021, a new campaign component was launched for Asante Ashland Community Hospital to become an Age-Friendly Health System, addressing the unique care needs for the aging population in Southern Oregon.

Fundraising continues for all campaign initiatives, including programs and support services that will help patients who receive care within the new and enhanced facilities.

“When you look at what it takes to make advancements like this possible, community investment is an important piece of the puzzle that allows Asante to continue our expansion efforts, even during challenging times,” said Scott Kelly, president and CEO of Asante. “As your local, non-pro t health system we believe it is our duty to be here for the community, and we’re grateful the community trusts Asante with its health care and nancial contributions.”

Learn more or get involved today: www.asantefoundation.org.

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Southern Oregon Business Journal April 2022 | 23

SMALL BUSINESS DEVELOPMENT CENTER

By Marshall Doak, SOU SBDC Director

Now that the COVID Pandemic lockdowns and re-openings are in the past, we can start assessing the aftereffects of the policies that were instituted as a reaction to the crisis. Whether or not all economists are in agreement regarding the causes, it appears there is agreement on the fact that we have entered an in ationary environment.

This is going to prove just as challenging to manage a business in as the COVID Pandemic situation was these past two years. Recent information indicates that this bout of in ation is not going to be transitory, rather we are projected to have substantial in ation for some time to come. The effects of an in ationary environment are not felt evenly throughout the economy, so it will be to your bene t to keep an eye on your business and the effects in ation will have on your pro tability and costs.

Large-group statistics may not tell the story for your individual company.

Business Strategies for an In ationary Environment

This article is a synthesis of thoughts on in ation, some literature research, and some information gleaned from rsthand observations of the actions and decisions that businesses are making around the Southern Oregon region. It has become evident to me that the businesses which are able to best navigate the in ation challenges are those which are prepared to survive and are not those locked in a reactive state of disarray.

It is said that in ation acts like a tax to businesses, but I look at it as more of a stealth event by taking momentum, resources, energy and margin without providing any return. It can be a silent killer of commerce and certainly limits business functionality and growth potential. In ation creeps into business operations through three principal avenues: nance, operations and personnel.

With respect to nance, in ation’s effects can be: Destructive to your margins. Margins are what a business lives and dies by. In an environment where margins shrink, pro tability follows. The only manner to measure the effects of shrinking margins is to have the cost and revenue data from previous periods in hand to compare to today’s results. Drawing comparisons between like periods is effective to understand the amount of shrink taking place.

The of cial in ation rate published does your business no good to use as a reference for making decisions. Your experience with in ationary forces is unique based on a number of factors speci c to your industry and business and could substantially differ from published data.

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Photo by Frank Busch on Unsplash

Knowing your ‘baseline’ data and comparing it is effective, IF YOU HAVE IT to use. If you have not followed best practices to benchmark your business and understand your numbers, then using a data-driven rational process to determine costs and appropriate responses to in ationary forces will be unavailable to you.

Keeping a sharp eye out for changes or increases of your Accounts Receivable numbers is critical. Erosion in these numbers, meaning longer repayment timeframes or increasing reliance of your clients to use extended payment terms can indicate trouble brewing. Your customers’ weaknesses can easily become your own.

Conversely, extending your payment terms to your suppliers is a great way to keep your costs down, if it is available to you.

Lastly, look at your debt structure. Are you extending out your repayment of existing debt as much as you can? The idea is to extend the term of the debt so that you can repay the debt with in ation adjusted dollars. If you are not carrying debt, it may be a good time to look at taking some debt on to increase your available cash and to borrow now, assuming rates will continue to rise until in ation is tamed.

With respect to operations, in ation’s effects can be mitigated through: Maintaining your supply chain with reinforcing the relationships that have been developed over time. Supply chain interruptions can cause major cost

overruns and increases, and greatly reduced pro tability. I reference the disruptions the semiconductor shortage has caused Ford and Chevrolet in business continuity in their truck lines.

Cultivating additional suppliers for identical components can be effective for avoiding interruptions to your business.

Alternatively, consider making your own components to avoid relying on interruptible supply chains.

Lean your inventories and processes.

Lean processes can give you ef ciency gains that are measurable in (retained) dollars.

Client relationships are critical to maintaining your business volumes, especially critical during in ationary times. Investing in those relationships is cheaper than nding new clients.

Articulate and communicate your Value Proposition to your clients, prospects and employees. Educate your team to understand your Value Proposition and own it. High-touch communication of the value you deliver can help mitigate the ill will generated by necessary price increases.

Consider suspending Just-in-Time inventory stocking levels. In ation stretches supply chains with increased lead times necessary, and oftentimes volatile pricing dynamics ensue. JIT can exacerbate supply chain woes.

With respect to your employees: Retain your trained productive employees. If you have kept a good set of nancial statements, the value of retaining employees versus the costs

involved with acquiring and training new employees can be determined. You may be able to generate data to con rm it is cheaper to retain your productive workforce, while compensating them for their loyalty and best efforts.

The recommendations in this article are not the only reasonable precautions and actions a business can take to improve their position in in ationary times.

In ation causes instability and uncertainty, which after the last couple years of continuous changed experienced by businesses, is going to prove very challenging to survive. In many cases, larger businesses have had competitive advantages over small businesses during the Pandemic years, and this will continue through in ationary times as well. Look at your industry and identify some of the larger players. What are they doing that makes them bigger than you are? What can you learn from how they operate, where their markets are, and how they transact business for nuggets of information.

Then build programs and products around what you have learned and go out and attack the markets to disrupt them in your favor. There are no rules requiring you to wait for in ation to harm your business. You have the ability to be proactive to create your own opportunities, and this strategy in in ationary times can tip the scale in your favor.

—Marshall Doak is the Director of the Southern Oregon University Small Business Development Center and a huge supporter of innovation and the community that forms around innovation in the economy. In private practice, he works with businesses that plan to transition to new ownership within the next ve years, assisting them to build value that can be converted to retirement income when the business sells. He can be reached through: mdoak06@gmail.com or 541-646-4126.

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Southern Oregon Business Journal April 2022 | 25

HIGHER EDUCATION

By SOU President Rick Bailey Otter.ai Transcription of his monthly video on YouTube https://www.youtube.com/watch?v=LUwdsr_gJn4

This is an Otter.ai Transcription of Southern Oregon University President Rick Bailey March YouTube video.

Hi everybody, this is Rick Bailey, President at Southern Oregon University. Thank you as always for tuning in to our latest video update for our university and our community. Let's start today with a celebration. As you know earlier this week we celebrated International Women's Day and throughout the month of March, we take the time to pay tribute to women who have made incredible contributions in every aspect of the human experience. It was Oprah Winfrey who once said, “step out of the history that is holding you back and step into the new story you are willing to create .”

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SOU President Rick Bailey Jr. March 2022 Update

Throughout the month of March and really throughout the year. We take the time to pay tribute to these women trailblazers. But let us also take some time to honor the women in our own lives, who continue to lead and inspire us. They are worthy of our celebration.

Speaking of celebration, let's take a moment to talk about commencement. We are very very excited to announce that this year we will be hosting an in person commencement ceremony at Southern Oregon University for the rst time in three years. Now we will be celebrating the class of 2022 and mark your calendars by the way, Saturday, June the 11th is our date for that we have an entire team planning it already. But I also want to

offer an invitation to graduates from the class of 2020 and 2021. If you would like to be a part of this year's ceremony, we would like to celebrate you too. But there is an RSVP deadline of Friday, April 29. So if you are a graduate from the class of 2020 or 2021 and want to be included in this ceremony then please go to our website sou.edu. Up in the search bar, just type commencement that will be the very rst link. Click on that link that takes you to the commencement homepage and then scroll down you'll see an RSVP link for 2020 and 2021. We would love to celebrate all of you this coming June.

Let's take another moment to talk about the issues going on in Ukraine and the crisis in

Ukraine. We've received a lot of phone messages and emails from concerned community members about this issue.

Understand that I take that very, very seriously as a military veteran myself and as a military veteran who served in a NATO organization. It's very important to me and I understand the gravity of this situation. So let me be very, very clear. SOU strongly condemns the atrocities that are taking place in Ukraine. But let me say a few other things.

First of all, we have neighbors, friends, community members who have ethnic or even familial ties to people in that region.

And we're talking about Ukraine, Russia, Belarus and the greater area. They need our support now more than ever. So let's make sure that we are sensitive to that. Secondly, let us also recognize that the crisis in Ukraine isn't the only crisis happening geopolitically around the world right now. There is political violence, there are skirmishes, there are challenges in places like Sudan, Ethiopia, Afghanistan, Venezuela, Tunisia, the list goes on. All of them deserve our attention and they deserve our support as well. So let us be mindful of that big picture as well.

Shifting gears again after my last video message. There was a really really good comment someone had asked me “Rick, in your next video, could you share what makes you most optimistic about Southern Oregon University" and I have to confess my answer to that question has changed over time. It's easy when you look from the outside, things that could make you optimistic. Let me just give you one. This university sits in one of the most beautiful valleys on the planet.

That's not an embellishment. I think everyone would agree with that. But if I am asked today, especially now that I have had a chance to meet a lot of our team, if I'm asked today, “Rick, what makes you most optimistic about the university?” It's the team.

And I know it sounds like a cop out right?

That's something that presidents probably say a lot. But this is not a cop out. It is my honest answer. The thing I am most excited

about is the team with whom I get to serve.

They’re incredible. Incredible. Now, do we have challenges? Absolutely. We have challenges. And do we come up short?

Sometimes? Yes. We come up short sometimes. You probably saw earlier this week I sent a message out, really calling on all of us to be the architects of an environment where hate and prejudice have absolutely no place. Right? We have to do that, all of us have to do that. And when one of us falls short of that, all of us fall short of that. So we do have work to do. But I know that this team can do that. And I have the utmost con dence that this team can do that. And when we do that, I know we can move mountains. I'm sure of it. Dr. Martin Luther King Jr. once said and I know you've heard this quote before. He said “Darkness cannot drive out darkness, only light can do that”.

Hate cannot drive out hate, only love can do that. That's the North Star for us. And actually that leads us to my nal point.

If there is a recipe ingredient that we need moving forward as a university, if I had to pick one, it's kindness. And I know this is gonna sound simple, but bear with me.

I think that kindness is like a currency. I think it's like a currency in the sense that we have a choice. We choose when and how we give that out. And we choose to who we give. Now there are going to be some faculty members especially BCE faculty members who are going to who are going to challenge this analogy and they should because there's some aws in the analogy, for example.

I know that unlike a normal currency, kindness is something that is that is not limited in its supply.

We can choose to give out as much as we want. It's like printing it, we can print as much of this currency as we want.

The second aw in this analogy is that and again, I'm speaking at it from a place of ignorance here but my guess is it's likely the

only currency that the more we spend it, the more valuable each note becomes, which probably violates every rule of economic standards.

So the moral of the story for us is spend it, spend the heck out of it. The more we do that, the better we will be as a team. I'm convinced that thinking about kindness and giving that out, the more we do that, the better. Let me give you an example.

Next time you see someone from our custodial staff, or someone xing an IT problem or someone from facilities or an of cer in campus public safety or someone who is serving you a meal, anyone on the team, take a moment to not not just to pay lip service. Take a moment to really tell them how much you appreciate what they do for us and by the way, not just for our students but for you personally. Imagine if we did that with everyone on this team. Imagine if we exhibited that to everyone in our community.

Then we can move mountains.

We can move mountains.

It will help us to overcome the years of crisis that we've all entered together, because of this pandemic.

It will exhibit the self care that we talked about, by the way, not just for others, but the bene ts that we will experience personally.

And lastly it will be that ingredient that helps us to move forward as a university. Be kind.

Okay, that's it from the Rogue Valley. On behalf of all of us at Southern Oregon University, our students, our faculty, our staff, our board of trustees, our foundation, donors, alumni, business and government leaders and community partners we say thank you for everything you do for our students. Thank you for everything you do for our university and our community. Have a great rest of your week, everyone. Thanks very much and we'll talk to you soon.

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Southern Oregon Business Journal April 2022 | 27

One Bank,

One Name.

We knew that bringing Willamette Community Bank and People’s Bank together would be a strong combination. Now, almost a year later, we are ready to exhibit that strength under one name – People’s Bank.

We are excited about this next evolution and are committed to providing our communities with the same high level of service our clients have come to expect from us.

PEOPLE’S BANK LOCATIONS Medford Branches

Ashland Branch

Jacksonville Branch

Salem Branch

1528 Biddle Road Medford, OR 97504 541-776-5350

1500 Siskiyou Boulevard Ashland, OR 97520 541-482-3886

185 E California Street Jacksonville, OR 97530 541-702-5070

315 Commercial Street SE Suite 110 Salem, OR 97301 503-468-5558

1311 East Barnett Road Medford, OR 97504 541-622-6222

Central Point Branch Klamath Falls Branch 1017 East Pine Street Central Point, OR 97502 541-665-5262

210 Timbermill Drive Klamath Falls, OR 97601 541-273-2717

Albany Branch

Grants Pass Branch

Lebanon Branch

333 Lyon Street SE Albany, OR 97321 541-926-9000

509 SE 7th Street Grants Pass, OR 97526 541-955-8005

1495 South Main Lebanon, OR 97355 541-223-7180

Southern Oregon Business Journal October 2021 | 29

HIGHER EDUCATION

By Press Release https://news.sou.edu/2022/02/late-wrestling-coach-leaves-largest-ever-gift-to-sou/

Late wrestling coach leaves largest-ever gift to SOU

Legendary Southern Oregon University wrestling coach Bob Riehm’s in uence at SOU and within the wrestling program will continue in perpetuity, with a $3 million donation from his estate announced today that ranks as the largest-ever single gift to the university.

1969, winning three national championships and mentoring 100 NAIA All-Americans. He compiled a 270-71-2 career record and has been inducted into the NAIA Hall of Fame, the Oregon Chapter of the National Wrestling Hall of Fame and the SOU Sports Hall of Fame.

national title. His team won another title ve years later, in an undefeated season capped by back-to-back wins over the University of Oregon and Oregon State University. His team won a third NAIA championship in the 1993-94 season, his last as head coach.

The bequest was announced by the university and his surviving sisters at a celebration of life held earlier today for Riehm, who passed away in November 2020. A third of the gift will endow the men’s wrestling head coach position at SOU, which will be named for Riehm, and two-thirds will fund scholarships for the team’s wrestlers.

“As a coach and mentor, Coach Riehm made an immeasurable impact on the lives of so many student-athletes who came through his program,” SOU Athletic Director Matt Sayre said.

“His legacy, rst and foremost, will always be that. This gift’s signi cance is an enduring reminder of his commitment to SOU, the sport of wrestling, our student-athletes and coaches. He will continue to be a positive and tangible contributor to the development of them all.”

The gymnasium inside SOU’s former McNeal Pavilion was named Bob Riehm Arena in 2011, at the conclusion of a fund drive in his honor that raised more than $100,000 for scholarships and equipment. Riehm Arena, now in Lithia Motors Pavilion, continues to serve as the center of competition for the university’s men’s and women’s wrestling teams.

“Bob Riehm inspired excellence from his student-athletes during his hall of fame career,” said SOU President Rick Bailey. “He was an exceptional leader, coach and mentor, and we are honored to celebrate his legacy today and into the future.”

Riehm, who died at age 83, coached the school’s wrestling program for 25 years beginning in

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30 | Southern Oregon Business Journal April 2022

Riehm’s rst Southern Oregon team went 7-7 in dual matches, but his Raiders teams never again came close to a losing record. His ninth season, in 1977-78, brought the school’s rst-ever

Riehm was born in Britt, Iowa, and wrestled at the University of Iowa, where he graduated in 1960.

“SOU gave me the opportunity to grow and to change my life and to help change the lives of other people.”

ANGELICA RUPPE MS ’86

sou.edu • 855-470-3377 Southern Oregon Business Journal November 2021 | 31

by Greg Henderson

32 | Southern Oregon Business Journal March 2022

How Good is Good Enough?

Photo by Daniel Öberg on Unsplash

You and I know that if we keep doing what we’ve always done, we will get what we’ve always got.

It’s a basic tenet of early age learning, which we often choose to ignore. It's easier to keep doing what we’ve always done, even if the unsatisfactory outcome is known in advance. It’s a silo we inhabit.

The faster things change and improve the more important it is to be accurate in the rst step.

The introduction of Moore’s Law in 1965 was a forewarning to technology, by Gordon Moore of Intel fame, that the number of transistors on a microchip would double every two years thereby increasing semiconductor ef ciencies and speed to exponential levels never before imagined. A competitor who might ignore the information would be left in the dust.

By being content with mediocrity our hopes of success are often short-lived. Cheaper, faster, stronger, better are motivational drivers of the most successful among us. Excellence will bring with it unexpected advantages of

new and better insights and discoveries.

The covid pandemic was a much greater surprise than it should have been. Coronavirus became known in the 1960’s and was a part of the SARS pandemic discoveries in animals that received wide-spread medical attention. Those respiratory viruses advanced at a much greater rate because their seriousness was not accepted by the nancial community of taxpayers and politicians in the earlier outset. Call them the “good enough” people if you will.

There’s an often-stated piece of “entrepreneurial wisdom” that you should start your new business before you are 100% ready because getting to the perfect time to start will take too long, cost too much, and give the competition time to beat you to the marketplace. Perfection may be the target, eventually, but being “good enough” is the goal for the grand opening announcement. There’s a lot of bad advice out there.

Think of your potential revenue source before you think of the wealth you will gain from selling your product/service. That revenue source is your customer.

That revenue source is the reason you’re going into business not to make you rich or independent.

The reason to go into business is to cure someone else’s pain, not

your own. Sustaining your business over a period of time, or sustainability, requires that you continue to cure your customer’s pain. Your preparation for starting your business is not “good enough” until you are able to cure this pain from the outset and continue to do so for the foreseeable future. That’s called a revenue stream.

In preparing your start-up business plan don’t ignore the importance of creating a nancial needs assessment by estimating the costs of running your business, including your personal cash ow needs. Once you’ve identi ed the categories of your nancial statement – and there will be many – you will nd the extent of revenue needed to get you off on the right foot. Now you must identify the means of reaching this revenue.

From this point good enough is still only a dim light at the end of that long tunnel. Keep a note near you reading, “What is my prospect’s pain and how will I be able to cure it?” When you can accomplish this you are getting close to Good Enough to start.

Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a six year U.S. Air Force veteran. Contact him at ghenderson703@gmail.com

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Southern Oregon Business Journal April 2022 | 33 fi

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W

e discover that something we thought was good enough, just wasn’t. We could have done better, tried harder, gone just a little farther. For a thousand reasons we stopped too soon, short of a better result.

Welcome to Umpqua BroadBand!

High Speed Internet for Rural Douglas County.

Rural homes, farms, ranches and businesses now have an option. We have towers strategically located all over the Umpqua Valley. We have hundreds of happy customers that have made the switch to Umpqua Broadband™, replacing their slow DSL or Exede wireless service. umpquabroadband.com 845 SE Mosher Ave, Roseburg, OR 97470 (541) 672-3793 customercare@umpquabroadband.com

Sponsors The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.

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YOUR TARGET THROUGH

ADS Please check out our advertisers. We appreciate them for supporting the Southern Oregon Business Journal.

People’s Bank - Page 30

Thousands of Business People get a chance to see your ad in the monthly Business Journal.

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Send your ad copy to: Jim@SouthernOregonBusiness.com Jim Teece - Publisher

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SOU - Page 33 Southern Oregon Business Journal April 2022 | 35

Please SUPPORT YOUR JOURNAL. If you want to continue seeing news about Southern Oregon Businesses and Oregon News that will impact all of our businesses then please support us.

Be sure to visit SouthernOregonBusiness.com and sign up for FREE emails. We don’t spam and we do not sell your email address. We will send you an email at least once a month to let you know that our newest print version is out and available online.

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36 | Southern Oregon Business Journal January 2021

BANKING

By Press Release https://www.peoplesbank.bank/about/press-release---march-8-2022

People’s Bank Hires Evp/Chief Credit Of cer Bill Whalen of cer for another Oregon based community bank.

"We are excited to have Bill join our team with his extensive expertise in commercial lending,” says Julia Beattie, president. “He is a great addition to our team.”

Bill is currently a member of the Oregon CASA Network Board of Directors. He has been involved in several community service organizations, examples of which include the Eugene Police Commission and the Citizen’s Review Board of the Eugene Police Auditor’s Of cer.

Bill worked in the Rogue Valley as a commercial lending of cer from 1992 to 2005 before moving to Eugene. He and his family are looking forward to moving back to the valley and getting reconnected in the community.

People's Bank of Commerce is pleased to announce the recent hiring of William (Bill) Whalen as executive vice president and chief credit of cer.

Whalen joins People's Bank with almost 33 years of experience in the banking industry, of which 30 have been in Oregon. He most recently worked as senior vice president and chief credit

People's Bank of Commerce is a community bank headquartered in Medford, Oregon, with branches in Medford, Ashland, Central Point, Grants Pass, Jacksonville, Klamath Falls, Albany, Lebanon, and Salem. https://www.peoplesbank.bank/

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Southern Oregon Business Journal April 2022 | 37

Southern Oregon Business Journal 5350 HWY 66, Ashland, OR. 97520 www.southernoregonbusiness.com

PEOPLE'S BANK JACKSONVILLE BRANCH NOW OPEN People's Bank of Commerce is pleased to announce the opening of our newest location in Jacksonville, Oregon.

This is the bank’s tenth branch and is located at 185 E. California Street. We offer full-service banking, including new accounts and teller services, as well as consumer, mortgage, and business loans. Hours of operation are Monday through Thursday, 9:00 a.m. to 5:00 p.m., and Friday, 9:00 a.m. to 6:00 p.m.

"We are excited to have been able to open this branch sooner than we previously expected,” says Julia Beattie, President.

"With the departure of US Bank and Umpqua bank in 2021 from the community, we made it a priority to open as quickly as possible to assist the needs of the Jacksonville community" added Beattie.

The new branch is managed by Maria Garcia, branch service of cer, former assistant branch manager for Umpqua Bank in Jacksonville. Maria brings over 16 years of banking experience to People's Bank and is a dedicated community supporter.

People's Bank of Commerce is a community bank headquartered in Medford, Oregon, with branches in Medford, Ashland, Central Point, Grants Pass, Jacksonville, Klamath Falls, Albany, Lebanon, and Salem.

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https://www.peoplesbank.bank/