SolarGlass

Check out this article featuring Susan Marvin talking about the recovery in her business and reiterating her approach to honoring the employees through the downturn. There are other window and door companies making quality products. I have not found one that matches Marvin’s leadership and their philosophies. It is the latter that reinforces and strengthens SolarGlass’s commitment to the products and people of Marvin and, when combined with our company’s commitment to the Quality of Customer Experience, delivers enduring value for our customers.

I am sharing a link to an Op Ed written by Susan Marvin entitled “Do layoffs really help the bottom line?” From my perspective, leadership too often makes decisions tuned to the speculators and institutional investors who are the bulk of today’s shareholders, as opposed to maximizing long term value by honoring all stakeholders. Perhaps put more simply, employees are not fodder.

At SolarGlass, we made a deliberate decision to protect all the “A” players as we made our way through the economic crisis. This required the support of all debt and equity holders, which, with the exception of our former commercial bank, I am grateful to say we had.

In 2009, we have lost two significant jobs to a competitor who distributes Loewen, a Canadian manufacturer of high quality windows and doors. Our competitor is one of the best in the area; I have met the owner and admire the company he has built.

We lost the first job because Marvin Windows, our primary window line and a worthy equal to Loewen, would not build a configuration that was deemed to be ill-advised from a structural engineering point of view. We share this information with the builder but did not imply, or use as a sales tool, that Loewen’s statement that it would build the configuration was an explicit structural compromise. We were told this “difference” was a key architectural feature of the home and the reason we lost. Once the deal was signed and the window and door order was placed with Loewen, it turned out that Loewen would not build the configuration either but instead substituted the alternative configuration Marvin has proposed.

Our second loss just happened. Normally Marvin and Loewen are priced in a relatively narrow band with Marvin higher at times and Loewen at others. In this case, the Marvin quote was 65% higher. Some of this was driven by a few very tall doors where Marvin builds a more substantial system with higher wind and water infiltration protection. Another difference was the provision by Loewen of push out casement operation at the same price as crank out casements, contrary to the current pricing models by every other manufacturer. Frankly these differences don’t explain the huge price gap. In our case, our gross margin is substantively less than the top line price difference!

In both cases, we thanked the builders for giving us an opportunity to bid the work and asked for the opportunity to visit the jobsite and take a first hand look at the wining product. More importantly, I informed our sales person and our entire sales staff of how proud I was/am of them and our sales process. We work with Marvin to ensure that anything we quote we can deliver. We never use price to “buy” business. Our customers know that our first price is our last, and that we price to fund our service model and to take care of our employees.

While I hate to lose, our successful batting average has me comfortably and confidently staying the course.

I thought I would share the contents of an email I received from my son who is back east attending a small liberal arts college.

Dear Dad,
Your blog reads like a Manifesto for the Eternally Corporate. It is a lot fun to read though and I hope your customers are able to gain insight into your dedication to service and growth. Having your musings be accessible to anybody gives your corporate practice a unique sense of transparency as it makes it seem less like a “company” (as is understood as an independent, faceless, and emotionless entity) and more like a labor of love shared by a group of committed individuals. I’m proud to see the dedication and commitment you demonstrate and look forward to reading the next post.”

By the way, I think my childhood exposure to your consistent use of business speak (like the voice you use in your blog) is the reason why everybody thinks I’m always so serious.

My son is right about the “voice” with which I speak. When I was consulting, I described this phenomenon as the “authenticity of voice”. I believe that whenever you speak from the heart, the truth of that is obvious, and it is the truth that employees, customers, and business partners must connect with in order to maximize trust and the value of the relationships.

Now as to the matter of whether my son needs extensive counseling after being subject to decades of my authenticity…

In preparation for a review of our financial statements, as well as struggling to complete the transition from spreadsheet-based accounting to QuickBooks, I am spending nearly all my time chained to my desk. I fear that every second spent in this manner takes me away from engaging with customers and employees. Even when I add the inevitable nights and weekend as a way to protect my time, I still feel the loss of time to do what I have to do for that which I must do.

Gwenael

The average tenure of SolarGlass team member is 12 years. If I factor out the team additions since I purchased the company, the number rises to 15 years. Given that a year into my ownership and we have had just one resignation, I am proud and thankful of the fact that tenure continues to grow. What does this level of longevity mean?

It means an unprecedented level of product, building code, and architectural knowledge.

It means a level of efficiency hone through years of working together

It means rich levels of personal interactions between long time customers and the SolarGlass team

More than all of this, it means I have inherited a special obligation to honor the team who make SolarGlass all that it is. I could attempt to “write” my way to what I mean, but perhaps one example among many will bring this to life. We have bookkeeper who, along with our purchasing czar, lead the charge to convert us to QuickBooks from a spreadsheet-based accounting system. They did this in the middle of our busy season without a whiff of complaint. In fact, our bookkeeper wanted to borrow my laptop so she could work at home on the conversion, this in addition to the additional hours she is putting in during the day.

I worry that I will fail to honor this level of commitment to the work of SolarGlass. I do take comfort in the fact that the team dynamics and the bonds between people are far larger than me and thus an obligation that is not mine alone.

Buenos dias.

This is Jon Becker blogging in from Tamarindo Costa Rica. I’m here with my 16 year old son Jorin, who is having a change of scene, attending high school in an exotic new setting. Despite my being on the underground side these days, one of his school teachers decided that i might know something, and she’s asked me to do an energy unit for her 12th grade science class (or she just wanted to get out of a day of teaching?). Now i’m always thinking about energy, because i know without it matter doesn’t go anywhere or do anything. Even though I’ve been a little more focused recently on energy issues such as wave height and frequency, and solar concerns have included SPF 30 vs. 40, it was easy and fun to jump on the net and put together some links that cover a broad and important range of energy thoughts. So I welcome the Senior Class of Guanacaste Country Day School in Brasilito Costa Rica Click here: Country Day International School in Costa Rica. Boarding schools in Costa Rica (Central America). Top boarding sch

and all of my old (or new?) SolarGlass friends and colleagues, to follow some of these pathways, see what makes sense or seems totally loco, and maybe even share back with me (and us) some of your experiences.

EL MUNDO DE ENERGIA

the electromagnetic spectrum chart. i love this way of looking at energy, from gamma rays through the solar spectrum, down through tv/fm/am/microwaves, sound, all part of a continuum. you don’t have to be a surfer to love wave theory (although it helps): Click here: Electromagnetic Spectrum

here’s the solar radiation spectrum, it’s more than just what you see (isn’t life like that?). notice to planet earth – this is your income. and as your banker will tell you, either you live within your income, or the repo man will come see you: Click here: Solar radiation – Wikipedia, the free encyclopedia

from the cold hard facts department. it’s obvious that many of our political and business leaders haven’t read or understood this. note disparities between u.s. and the rest of the world. that’s just one of the reasons why the u.s. needs to lead on this, even if our leaders don’t get it: Click here: U S Energy and World Energy Statistics

a look at the smaller, more manageable costa rican energy and resources picture. impressive levels of renewable use (in electricity generation), but the typical dependence on oil for transportation, all of it imported, and sharply increasing use despite holding steady on per capita and unit of GNP basis. why is that? increasing population – another area we need to work on: Click here: http://earthtrends.wri.org/pdf_library/country_profiles/ene_cou_188.pdf

another graphic on costa rica energy mix, showing 30+ years of evolution: Click here: http://earthtrends.wri.org/pdf_library/country_profiles/ene_cou_188.pdf

NRDC’s write up and recommendations re: costa rica’s very exciting national energy plan, with target of being the world’s first carbon neutral nation. are you listening u.s.a.?: Click here: http://www.nrdc.org/international/costa.pdf

more energy facts, with an eye to the future, from our friends at Solar Energy International in Carbondale Colorado: Click here: SEI: Energy Facts

an article by and an interview of amory lovins of rocky mountain institute in colorado. for 30 years now one of the most sane voices talking about energy and resources and the future, so of course considered to be nuts by much (though an increasingly smaller subset) of the power establishment: Click here: http://www.rmi.org/images/PDFs/Energy/E06-08_GettingOffOil_World2007.pdf

Click here: Alternative Energy Guru Reflects on Policy, Fuels

So there you have it kids. Your assignment – check it out, follow your instincts, THINK!! And then if you feel like it, let us know what you think.

As we say here, PURA VIDA (Costa Rican for “it’s great to be alive”)!!! Jon

Over the last 30 years, I have read many business books and magazines. Few have been as meaningful as Jim Collins’ work Good to Great. In particular, his chapters on Level 5 leadership (subject of a post to come) and the Hedgehog Concept have become guiding principles.

My top of mind take on our Hedgehog Concept:

World Class: Fitting windows and doors that meet the owners / architect / builder objectives, optimizes the tradeoff between performance, aesthetics, and price, and saves time and money buy getting the details right the first time.

Economic Model: Profit per order

Passion: Improving how a home or a commercial building “feels” to live in or experience

It’s a start, but not crisp enough nor does it do a great job of conveying our passion

Thoughts?