Happy Halloween

It was a great night tonight. We celebrated our second Halloween with our young son. Our Bolton, Connecticut neighborhood was teaming with kids. We had to shut down our house early for the night when we ran out of juice boxes and gave away the candy that Shep had just gotten. With the lights out, I was sitting at the kitchen island writing a photo essay for a National Geographic Photo Contest with a midnight deadline. I was concentrating and then I heard some mischievous sounds coming from outside. It was pitch black because we had turned out the lights. I suspected that some of the local boys were after our pumpkins, so I sprang into action. I grabbed my Surefire flashlight and burst out of the door. I captured them perfectly in the beam as they scattered like little mice, having missed their objective to cause a little mayhem.  A short chase insued and I caught the group of six after about one hundred yards. I couldn’t stop laughing/panting as they hurled epithets in very scared voices. Oh, if their parents could have heard what they said in fear. I’m pretty certain that they didn’t realize that they had chosen the wrong house. They picked the one that has two ultra-marathon parents and one with a pretty good sprint. I figured that if I couldn’t catch them in the first mile or so, Deb would get them in the next 49! I suspect that at least one of them is going to need a change of the under shorts. When I caught up to them and shined the light on them, I simply said, “Happy Halloween,” before turning out the light and walking back home.

“Great Customer Service Comes from the Heart”

A business colleague shared an inspirational customer service video with me today. The quote, “Great customer service comes from the heart,” comes from this video, titled, Johnny the Bagger. Little three minute gems like this, make you think. As a business leader, I am always trying to instill that customer service “thing” with our team. Manufacturing has a different customer service culture than retail or enterntainment. Many of Horst Engineering’s customers are large multi-national organizations with tens of thousands of employees. The B2B model and commodity nature of our products prevents us from being as creative as other industries, but it still isn’t an excuse for not treating customers right. We have ample opportunity to interact with buyers, engineers, quality assurance people, and many other folks at our customers. The video will make you think differently about customer service, as well as about some other things in life.

Smacktoberfest

I read a cool article in today’s Journal Inquirer about an East Hartford, Connecticut attorey/town councilman who competes in demolition derbies. He has wrecked a bunch of cars in recent years. The next one he wrecks this weekend at the Waterford Speed Bowl’s Smacktoberfest, is a vintage 1985 Ford Crown Victoria, and it will be in honor Brian A. Aselton, an East Hartford police officer who was killed in the line of duty in 1999. Every January, Horst Engineering sponsors the Brian A. Aselton Memorial Road Race, a 3.05 mile run that benefits the scholarship fund in his name. Reading about the demolition derby made me laugh, but also reminded me of the sacrifice that Aselton made. I made a note to get in touch with the town recreation department soon, because we are going to sponsor the race again.

LadyDUI.com–Niche Marketing Run Amok

I was headed south on Interstate 91 in Hartford, Connecticut yesterday, when I looked up and saw an interesting billboard. It was one of those giant advertisements featuring an oversized “headshot” of a maverick female attorney accompanied by a clever “800″ number. In huge letters, it said LadyDUI.com I was intrigued and jotted down the URL as I drove back to East Hartford. Of course, I guess it achieved its purpose since I didn’t really need to write it down. Who can forget a name like that?

This type of shameless marketing tends to upset me. Our tort system and the economics of the legal profession have all kinds of issues. In my world, I often have to absorb (through higher premiums, fees, etc.) the cost of out of control litigation. It seems as if risk management is becoming an increasingly bigger business cost.

Democractic Presidential Candidate, John Edwards, takes a lot of flak for his early career, where he racked up millions in income as a personal injury litigator. He sued a lot of companies and institutions and won huge verdicts that angered a lot of people.  I can imagine the huge billboards that might have dotted the North Carolina landscape in the 1980’s and 1990’s, with Edwards’ wide grin and gleaming teeth beaming down upon the motorists that drove by. The photo on his campaign website homepage is much more family oriented than the ones inviting clients to call, that I imagined.  

I’m not really commenting on John Edwards here. That is what popped into my head as I drove by the LadyDUI billboard. Many hard core trial attorneys have been accused of “ambulance chasing” and worse. They have been accused of preying on low income clients who have no where else to turn. They have defended shady characters under the guise of civil rights and liberties. When you hear the word DUI, you can’t help but think about the victims, and I’m not talking about the accused drunks. I’m talking about the innocent people that have been hurt or killed by drunk drivers. Defending the perpetrators is just fine because they have rights too, especially the ones that may have been wrongfully accused. It is within the bounds of our legal system, but it just doesn’t seem right to shamelessly troll for DUI clients and invite the ones who have even admitted to being drunk, or pulled over with open containers, to just call 888-LADY-DUI. I hope she doesn’t get too many calls.  

Forces of Nature

Horst Engineering is sponsoring Forces of Nature, a staged dramatic reading (play) at the Bushnell Center for the Performing Arts on November 9th. The event is being presented by the Connecticut Forest & Park Association. The company’s support of the CFPA and other environmental organizations got me thinking about some things.

 1) The charity issues raised by Robert Reich, that I previously blogged about, are real. Just like in private enterprise, there are “have” charities and “have not” charities. Non-profit organizations come in all different types. The IRS tax codes treat many charities the same, in that contributions are deductible whether the charity’s mission is for the environment, the poor, the opera, or scholarship. Categorizing charities based on their mission, regardless of disparities in financial resources, should be avoided.

2) The Bushnell is one of the jewels of Hartford, Connecticut. I enjoy the eclectic mix of events presented in it’s two theatres.

3) Forces of Nature is going to address conservation questions through the eyes of three great environmentalists, John Muir, Theodore Roosevelt, and Gifford Pinchot. Pinchot, was from Connecticut and is responsible for saying one of my favorite quotes: “Conservation is the application of common sense to the common problems for the common good.”

The CFPA event is sure to attract many of my environmentalist friends. It will be a great night to congregate and celebrate the spirit of wildness, all in support of an organization that is responsible for the Connecticut Blue-Blazed Trail System, and so much more. Of course, the event will be an even bigger success if it positively influences people who may not see the importance of nature the way I do. Changing people to think “Earth first” remains a challenge despite all of the attention being paid to the Green movement today. Ironically, with Al Gore winning a share of the Nobel Peace Prize, even more skeptics have been created.

Gran Prix of Gloucester Cyclo-Cross

Cross season is here. One of my favorite sports is cyclo-cross. In New England, cross is a popular type of cycling done from September until December every year. I kicked off my 2007 cross campaign and joined my mates on the Horst-Benidorm-Property Research Corp. Cycling Team at the Grand Prix of Gloucester today. The course was at Stage Fort Park, a beautiful spot on Gloucester’s Western Harbor.

The race was a rude awakening. Two weeks ago, I rode/ran the Vermont 50 in just under eight hours. The fitness required to hammer a 45 minute cross race with 124 other guys is totally different from running ultra marathon trail races at your own pace. I usually come on late in cross season as others fade, so I’ll write today’s miserable performance off as “early season training.” Despite the lousy ride, I had a blast. Deb and Shep joined me on the trip and we got to connect with some friends that we don’t see so often anymore. The weather was spectacular for October on Cape Ann in northeastern Massachusetts. We had bright sun, a light breeze, and seasonable temperatures.

The fishing village of Gloucester is famous for its maritime history and in recent years gained popularity because it was the setting for Sebastian Junger’s fine book, The Perfect Storm. The book was made into a movie starring George Clooney, who I love, and Mark Wahlberg, who is pretty good too, but I prefer the written version.

The travel was a bit challenging for such a short race, but we enjoyed a fine Sunday together and I got some laps in on the cross bike. Next up is the Southington Cyclo-Cross, our team’s race, in Southington, Connecticut, next Sunday. With the Red Sox in the American League Championship Series, the Patriots pounding the Cowboys in Dallas today, and cross in Gloucester, it was a really nice fall weekend.  

Is it Charity or Something Else?

Robert Reich caused a stir when in a recent article, he suggested that the United States’ tax code should be changed. He asserted that many wealthy donors are helping themselves and their wealthy friends by donating to certain charities. He suggested that full deductions be allowed for charities that benefit the poor and that half deductions be allowed for donations to universities and art institutions. He referred to his thoughts as a “modest proposal.” Many others have since commented on Reich’s article, including “The Wealth Report” blog in the Wall Street Journal.

Supporting the poor and underprivileged is a tremendous goal and there are many organizations, globally, that do it well. They deserve to be funded as much as any other institution. However, to change the way the tax code works, would create a hierarchy among not-for-profit organizations based on their missions. That doesn’t sit well with me. I am a huge supporter of environmental organizations. One could argue that the donors to organizations that benefit the Earth should get the biggest tax deduction because without their work, and the health of our environment, all else is for nought. I might have a supporter in Yvon Chouinard, the founder of Patagonia Inc., who started 1% Percent for the Planet. Chouinard’s goal was to incentivize others to exclusively support organizations serving the environment. There is a great quote from David Brower on the home page of the 1% website. Brower said, “There is no business to be done on a dead planet.”

I thought about Robert Reich’s viewpoint, then discussed it via e-mail with one of Horst Engineering’s advisors, Bill Ghormley. Bill understands higher education, after having paid for a combined eight years of private college tuition for his two kids. He also has close ties to the Museum of Fine Arts in Boston, Massachusetts, so I knew that he would have an opinion…I just didn’t realize how strong.

With regard to Harvard and other universities, Bill said, “Harvard is using its resources to build research facilities in their new Stem Cell Institute that will change all of our expectations around a wide range of human sufferings.  Note, ALL of humanity’s expectations. Harvard is also providing an environment where many international diplomatic efforts can be thought through and brought through into existence in its school of Government. Harvard is redeveloping Allston Center, thinking through the green/clean lens to create something new and better to inspire city architecture worldwide. Harvard is a gem — a place our country can point to and say ‘this is exceptional!’  Just ask for perspective from other lands — Harvard is the model institution many admire — worldwide.”

I guess he doesn’t think the IRS should cut the tax deductions for Harvard’s donors!

What about the arts? Much the same according to Bill. He feels that both universities and art institutions deliver value to their communities. Of course, he and I both agree that there is much waste in how funds are raised and spent. Not-for-profit organizations aren’t any different than for-profit organizations. They can be latent with waste, mis-managment, and fraud, just like other enterprises. The same inflated compensation that is paid to the CEO’s of big corporations is making its way into the not-for-profit world. Many executive directors of .org’s are being given rich pay packages by their boards, which are stocked with their cronies. The governance of not-for-profits, which is not regulated by the government like for-profit corporations, is very important. I often use Charity Navigator or similar online tools, when evaluating .org’s.

In his e-mail, Bill went on to say, “The culture created at such peak institutions flows down in many ways — from potential cures for medical maladies to free concerts, free admissions, stimulation of youth creativity, access to beauty and the provision of spiritual home – these “charitable institutions” are serving a large number of people — certainly the vast majority of Americans.   However, tax policy creates huge advantages for institutions that primarily serve wealthy patrons — true.  Those institutions often create the highest of human achievement — and often the environment those achievements take place in MUST be separated from “the street” where survival is the sad common denominator. So, I guess I don’t agree with Robert.  His view leaves empty the pinnacle, the superlative best that inspires all who seek to achieve anything.  High achievement deserves support and deserves a tax break and a lot of room to flourish and lead us all to do more with our lives.    These charitable institutions are creating excellence, inspiring excellence and nurturing the creation of great beauty — away from Government oversight and Religious overbearance — and that is valuable to all.”

Clearly, Bill was stimulated by the comments from Reich.

Monroe Dunbar Brook Trail Race

An epic week of travel was capped off with a quick trip to The Berkshires for the Monroe Dunbar Brook Trail Race, which was the final race of the 2007 WMAC Trilogy. I was in the desert Southwest last week when New England experienced one of its warmest October’s on record. The temperature was a bit more seasonal on Sunday during the race, but it was still warmer than past Monroe’s. The leaves were barely changed and the brook was quite shallow. Debbie and I both ran while Deb’s Mom, Barbara,  watched Shep at the start/finish. Monroe is one of our favorite Grand Tree events.

 

It is set along the Deerfield River, near the TransCanada hydro-electric plant No. 5 on the Monroe/Florida, Massachusetts town line. The course is awesome. It is mostly singletrack with some fire roads. It crests 2730 foot Spruce Peak and covers 10.5 miles with its lollipop layout.

Despite riding/running the Vermont 50 a week before with all of the travel in between, I had a decent run. So did Deb. She finished second among the women and felt pretty good. Monroe is short and fast, but it always feels good to finish this one strong since it is typically at the end of a long season. 

The best part of the day was spending time with many of our trail running friends. The post race pot-luck cookout is always a blast. The Alibozek’s always bring some of their harvested pumpkins and other vegetables to share with the gang. Monroe isn’t the last race of the year, but it is the symbolic end of the trail running season. Most likely, we will be headed to Lynchburg, Virginia for the Mountain Masochist Trail Run in early November, so our season is far from over. Mt. Masochist is 50 miles, so Deb will be running and I will be crewing. I’m going to save my legs for cyclo-cross season, which actually begins for me this weekend at the Grand Prix of Gloucester (Massachusetts). I’m not sure if I’ll run another trail race this year. I miss it already!

   

Mexican Sojourn

The second part of my Southwest trip last week was to Horst Engineering de Mexico in Nogales, Sonora. Tucson is the primary gateway city that Horst Engineering associates use when traveling to the maquiladora. This was a short trip to tour the factory, review the recent progress, meet the new second shift associates, and meet with the leadership team of a key supplier. Fortunately my flight to Tucson was only delayed thirty minutes. The delay when I flew from BDL to San Juan, Puerto Rico last month was caused by a mechanical problem, but the short delay leaving Las Vegas was caused by a passenger who got locked in the lavatory prior to takeoff. It took several Southwest Airlines mechanics, a drill, and a crow bar to get him out. He exited to cheers from his fellow passengers who were patiently strapped into their seats.

I was excited to tour Nogales on the Mexican side of the border with two key Horst Engineering colleagues, my parents, Lynn and Stan Livingston. We witnessed the ongoing growth of Nogales and saw several new plants. We were especially pleased to see the pace of expansion in the HEDM plant, which is only matched by the progress at our main plant in East Hartford, Connecticut. Our day trip to Mexico was highlighted upon our return to the US side by a spectacular sunset.

Sin City

A Harvard Business School OPM Program class reunion brought me to Las Vegas for the first time last week. I’m not sure if I was more amazed by the decadent materialism of the Las Vegas Strip, or by the amazing construction projects that symbolize its expansion at a dramatic rate.

I realized long ago that the best way to see a new city is to go for a run. I’ve seen some great cities on foot. Some of the best runs have been in places like London, Geneva, San Francisco, New York, Chicago, Cape Town, Frankfurt, Los Angeles, Seattle, Johannesburg, Toronto, Mexico City, and Zurich.

I got out twice. The run was from the Mandalay Bay/Four Seasons Hotel up the Strip, and then back. At 6:00 A.M., as the sun rises, there are still a lot of characters on the streets. Not as many as the prior afternoon, but enough to demonstrate how wacky this city is!

Everyone who flies to Las Vegas talks about the flight in. You swoop down over these mountains that are scattered across the desert, and then boom, this sprawling city appears. I didn’t realize how the airport was so close to the Strip. I also didn’t realize that the Strip was Las Vegas. Most of the other development is there to support that one stretch of road. I’m not much of a gambler, but I put $1.00 into an airport slot machine. I had to try. The trip was short. I spent one night, reconnected with my classmates, and then caught a flight the next morning (after my run) to Tucson for the second phase of my Southwest swing.

Recruiting Strategies–The Parking Lot Method

At Horst Engineering, we use a mix of strategies to recruit skilled manufacturing personnel. In a tight labor market, you have to try new tactics. Since the market for precision machined aerospace components is a cyclical one, we go through periods where it is nearly impossible to attract new workers for processes like Swiss screw machining, turning, and milling. The aging manufacturing workforce and lack of youth interested in metal-working careers, combined with the latest market “boom” has made this particular cycle even more challenging. This year, we copied what many other companies have done for years, and instituted a referral bonus program.

A recent incident raises a lot of questions about recruiting ethics. Our industry faces enough external challenges, including the big time threats of low cost sourcing and high costs (e.g. raw  materials, energy, labor, etc.), that we shouldn’t have to worry about our local peers/customers/suppliers “cherry picking” some of our loyal associates. Still, the advent of ”signing bonuses” and the proliferation of referral programs has driven some odd behavior.

We had heard of other companies being subject to “parking lot” recruiting tactics, but recently, we discovered first hand for ourselves. A former employee, who would have received a large incentive from his new employer, waited for a shift to end, and then solicited current Horst employees to jump ship and join his company. It has to be understood that credibilty is important if this tactic is going to work, and there are questions about how effective the former employee was at convincing folks to leave Horst. However, these rogue tactics can give an industry peer a bad name, even if they don’t advocate the method.

I was thinking how we might handle it if our own incentive program drove one of our employees to use this aggressive approach without us knowing it. Right now, that seems like a hypothetical question, but it is on my mind. After 61 years in business, we have cultivated a value set that leads me to believe that no  matter how desperate we might be for help, we woudn’t try to poach an employee from an industry peer that we work with as a customer, supplier, and industry group partner. In the past, we have turned away good candidates if they didn’t seem sincere about leaving their employer regardless of whether they were to join Horst. Let’s only hope that our values rub off on others.

As Tough as Woodpecker Lips–2007 VT50

The Vermont 50 Mile Ride & Run has become a special ritual for our family and our team. I have done this event every year since 1999, when my friend, Arlen, first turned me on to it. That year, I had a great race, beating Arlen by two seconds after nearly five hours of riding. Still, winning the personal battle among teammates and winning my division were not the best things that happened. The night before the race, in the Ascutney Mountain ski lodge parking lot, I met Debbie, who would eventually become my wife.

We have been back to the race every year since then, with Deb running it and me riding it. Every year, a group of friends and teammates join us. Over the years, we have missed a lot of events (this year it was a birthday party, a wedding, and another party) in order to continue the tradition. At this point in our lives, we woudn’t miss it.

This year’s race was a struggle for both Deb and me. At mile 17, I snapped my chain. I had trouble repairing it and lost a lot of time to Arlen, who I had been riding neck and neck with from the start. I could recount the whole saga, but in a nutshell, I ended up running with my bike for nearly 10 miles. Then, I got someone to take my bike to the finish and ran the rest of the way. I rode 17 and ran 33. That was a first for me. I proved that Sidi mountain bike shoes (with cleats and spikes) are not the optimal footwear for running that distance. I would have preferred to had my Montrail’s.

I can’t explain why I pushed on, but part of it was the fact that I just felt good and didn’t want my race to end. The weather was also spectacular. It turned out to be a glorious day on the trails. I could have spent more time trying to fix the chain, or accepted help from other riders who offered to help (Good Samaritans), but I was frustrated after having lost so much ground. Even if I fixed it, I would have been disappointed to continue riding. I resorted to Plan B. Sometimes you have to do that.

Debbie had a tough race and finished in just over nine hours. She hasn’t been able to regain the form that saw her romp at the Pittsfield Peaks (55 miles) race earlier this year. Running ultra-marathon trail races is a challenge, even when you are feeling good.  Deb has had to push through her own challenges and illness. Job one for her is being Mom, so training has taken a back burner to other responsibilities. A few years ago, I described Deb to a mountaineer/journalist friend. He was amazed when he heard about her adventures. He simply said, “She is a tough as woodpecker lips.”