Leadership

Transition Fruition

December 1, 2022 by John Abrams 8 Comments

On January 1st, in just a few short weeks, I will no longer be a South Mountain owner or employee.

Deirdre Bohan, our current COO, will step into the CEO role. She will be supported by a crackerjack leadership team consisting of our four department directors – Ryan Bushey (Architecture & Engineering), Newell Isbell Shinn (Production), Siobhán Mullin (Finance & Administration), and Rob Meyers (Energy Technology). This remarkably well-aligned team represents nearly 100 years of collective South Mountain service. I will become Founder and President Emeritus and, for the next two years, continue to serve on the Board of Directors and work eight hours a week as a consultant. (In my next blog post – in January – I will share more about my Next Chapter).

Beginning in 2014 with our first Avalanche Scenario (what happens tomorrow if I’m buried by an avalanche today), we began to consider the company beyond my tenure. In 2019 we completed the design and details of our next-generation structure. We gave ourselves three years – to this moment – to build the necessary capacities and prepare ourselves for the transition. Our leadership team has worked relentlessly. The work is all but complete – at this point, we are just polishing the mirror of a promising ascendance.

South Mountain is a new company. It’s not the company I birthed and built by the seat of my worn and faded Levis; it’s the company new leadership is guiding to uncharted terrain, using tools, methods, and information barely imaginable a decade or two ago. This I know: due to the people in place and the nature of the work ahead, I leave with the company in its best condition ever. After 50 years, that’s as clear to me as a full moon in a cloudless sky.

I am deeply optimistic about the future of this company under new leadership. Not hopeful. Optimistic. They’re different. Optimism is based on sufficient evidence to convince us that things will get better and better, whereas Hope is not the conviction that an endeavor will turn out well but the certainty that it makes sense, no matter the outcome. In this case, optimism is appropriate.

To thrive, prosper, serve, and endure, an organization needs effective leadership. Leadership – a process of social influence that maximizes the efforts of others toward the achievement of goals – is both a skill and an art. Everyone has some leadership ability, just as everyone has some athletic ability, some musical ability, and some of every other kind of ability. Even if you say you have no musical skills at all, you can still sing a song to your child at bedtime. It’s the same with leadership. Some have more leadership skills than others, just as some are better athletes and better musicians. Some people have an orientation toward leadership; they think about it and practice it. Some work hard to learn it and cultivate it, while some are natural leaders. Most good leaders have aspects of each. John Quincy Adams said that “If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” This is what I see in our Leadership Team.

The group of people hired to succeed those who have retired or left in recent years includes a solid component of third-generation leadership as well, which we have consciously built because it will be needed sooner than later. When I founded the company, I was 23. When Deirdre becomes CEO, she will be 55. Will she stay another ten years? Highly likely no more than 15. Future leadership transitions will happen more frequently. I am excited to see, among our 38 employees, significant third-generation leadership potential thriving in the present.

In 1987, when the company was 14 years old, we made our first great transition: becoming a worker co-op. A path to ownership was established for all employees. That was an uncertain experiment. No longer. With adjustments along the way, the structure has served well; this new transition proves the point. Our 18 current owners and the leadership team they have chosen will carry the torch forward.

From the people of this company and its new leadership, I have learned more than I’ve taught and gained more than I’ve given. Now my long-time buck-stops- here responsibilities, oversight of the business, and role as the face of the company have been successfully distributed.

I am certain that our clients, our employees, and co-owners, and the various communities we serve are in the best of hands. The future of South Mountain Company has fully arrived. It could not possibly be brighter.

I hope my colleagues will cherish what it is as they make it what it will be, and I hope the journey ahead will be filled with delight, compassion, courage, equity, love, and most of all modesty and humility, the true foundations of all virtues.

Max DePree, the founder of Herman Miller, says in his book Leadership is an Art, “The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant.” My last act as leader of this company is to say Thank You – to everyone in the company and everyone who reads this. Without You, I would not have been able to be Me, and this company would not be what it is.

South Mountain’s New Path To Ownership

October 3, 2022 by John Abrams 2 Comments

On a rainy September day, 18 South Mountain (SMCo) non-owner employees gathered in our meeting room. After two years of collaborative design, our Communications Coordinator, Abbie Zell, stood in front to unveil our new Path to Ownership program.

It includes 33 experiences designed to give new employees, over a seven-year timespan, a complete picture of what South Mountain is, how it works, and how to be an effective owner. The purpose is two-fold: to develop active and engaged SMCo Owners and to strengthen relationships within the company.

SMCo transitioned from a sole proprietorship to a worker co-op in 1987. There are currently 21 co-owners. In the worker co-op realm, we are known to have one of the longest waiting periods before Ownership eligibility: five years from the start of employment. What happens during those five years has just changed dramatically. Not in terms of training and work progress – SMCo has always had a robust employee evaluation system and some degree of Ownership preparation. It’s the experience leading to Ownership that has changed with this launch. Our newest employee, Jake Martin, said that it made him feel that he had joined an organization that doesn’t perceive him as a worker but rather as a member of a community. Mia Esparini, hired in 2019, said, “I love it; I’m so excited to see it unfold over time.”

ORIGIN

Abbie tells about the source of the idea:

“In 2019, Deirdre and Siobhán attended a four-part webinar on Open Book Management hosted by The Democracy at Work Institute (DAWI). During one of the segments, Jen Briggs (formerly of New Belgium Brewing) presented the social system New Belgium uses to support Open Book Management and promote greater governance participation.

At the time, we had just made three second-generation hires. We could envision all of them as future Owners and knew there was more recruitment ahead. The size of that ‘incoming class’ posed a significant opportunity to improve upon an important process.”

Deirdre elaborates,

“Becoming an Owner has historically happened mostly by osmosis; by the time you had been at SMCo for five years, you were assumed to know what you needed to know. We wanted to encourage more active preparation, particularly during the two years before Ownership, hoping that would develop more engaged owners.”

DEVELOPMENT

Deirdre remembers,

“We charted a seven-year progression (five before Ownership, plus two after). We thought specifically about leadership development – how to cultivate a culture of taking responsibility for the company every day, in every way, no matter your role.”

Abbie continues,

“Ready to take this further, we formed a working group (Deirdre, Siobhán, myself, and John) and started brainstorming:

the essential experiences which would foster an appreciation for South Mountain’s culture

The technical knowledge required to be an informed owner and good decision-maker

The opportunities we’d like to provide new employees during their early years

I had become an Owner less than one year before this. By contrast, Deirdre, John, and Siobhán had lengthy tenures. We each brought something different to the table, and after a couple of months, we had a comprehensive list and cohesive concept to present to SMCo’s Leadership Team and then to our graphic designer (Magnifico Design).”

CONCEPT & ACTIVITIES

Abbie explains,

“We chose Path as the central metaphor because it has a clear beginning, can meander, has progress markers along the way, a guide when necessary, and a reward at the end.

The Trail Map (click here to view in full) is a physical manifestation of the Path. It is the size and style of a national park passport and works along the same lines. Each new employee will get one; when they complete an experience, it will be initialed by their instructor. Everyone will work through the booklet left to right until there are no experience left. . . at which point, they’ll be a seasoned South Mountain Owner!

Experiences are dispersed among six levels: Basecamp, Setting Out, Exploring, Practicing, Achieving, and Mastering. Approximately half the experiences will be undertaken alone; the others will happen in groups.

The full program involves 34 hours spread over seven years. Fifteen current owners will guide participants through their areas of expertise, and I will oversee the program and act as liaison between participants and guides.

We’ve folded Path to Ownership into our onboarding process, so those hired from now on will start the Path on their first day of work.”

As Abbie distributed the 4×5” “Trail Maps” and explained their significance, there was palpable excitement in the room. Abbie’s joyous presentation style provokes that, but the concept and content speak for themselves. One new employee, Nic Esposito, said, “it was so great to gather and be exposed to that so early in my tenure. I love the passports – classy and tangible – that we will use to chart our course.”

This is a remarkable new initiative. Over time, I predict, it will alter the culture of the company – making the experience of being an employee (and an employee-owner) richer and more complete. It will build trust, encourage cross-pollination, and spread knowledge across our four departments. It will prepare developing leaders and new owners for the future in an intentional way.

It’s clearly going to be a lot of fun too. It makes me wish that instead of retiring at the end of the year, I was a new employee just being hired! (“We’ve got this new guy applying for the open carpentry job. He’s 73. Should be a perfect fit!”).

Two Stories About David McCullough

August 15, 2022 by John Abrams 1 Comment

Photo by Steve Senne of the Associated Press

As you know, David McCullough died last week – an immense loss for the Vineyard and our world. I want to tell two stories about the consummate storyteller himself.

During the last days of January 2000, South Mountain Company’s 25 employees, along with several friends and planning experts, spent two days thinking about the future of the Vineyard. Our goals were several:

to sketch the outline of a future we would like to see;
to decide what commitments we, as a company, were willing to make to achieve such a future; and
to share our findings with the Vineyard community in ways that might inspire similar inquiries, create dialogue, and lead to action.

We called the session “Future Sketch,” and invited a few people from outside the company to broaden our perspectives. We invited David to open the meeting. He agreed and addressed the group early on a Friday morning.

He spoke about the Chagres River, which was the major obstacle to the building of the Panama Canal, but which was eventually used in a simple but ingenious way to become a part of the overall engineering solution. He related this to the “river of money” pouring into the Vineyard which, he said, was “undoing a way of life.” He expressed two ideas that became central to our discussions:

We must re-direct the river of money (that causes such harm) to restoration of community; and
Our future is a design issue – it should be the result of intent rather than circumstance.

In the same way that he set the tone for the first Islanders Write event in 2014, and those that would follow, David’s presence set the tone for our retreat.

A few years later, when the Island Affordable Housing Fund was leading the first significant effort to address the Vineyard’s affordable housing needs, we invited David to speak at a fundraising party. His assignment: to convince the Vineyard’s seasonal community to embrace an idea that was novel at the time – that they should be responsible for funding affordable housing efforts.

On a clear summer night, the well-heeled crowd gathered on an expansive lawn overlooking the Edgartown harbor. David took the microphone. He spoke again about the Panama Canal and the Chargres River and “The River of Money” and how we must use it to improve, solve, and resolve problems. This is, in part, what he said:

“We’re failing here on Martha’s Vineyard. We’re failing in a more serious way than we know. What we came here for, what we love about the place is eroding before our very eyes. The essence of civilization is continuity, and continuity must exist for everybody.

It ought to become socially unacceptable among people of affluence on this island not to take part in helping to solve these problems. We ought to be saying to everyone, to ourselves, if you want to be here, you want to be a citizen here, you want to own a home here, you want to take part in the community here, open up your wallet and pay your part proportionately.

Because if the people who need to live here, year-round, who do the work, who make it work, can’t live here, it’s all going to collapse. Simple as that. And this isn’t charity. Let’s forget that. This isn’t charity. This is reality. This is being members of a great community. And it’s emblematic of the oldest, simplest truth in the world: if you want to be happy, do everything you can to make other people happy.”

There was a dramatic silence when he finished as people absorbed his message. Then the audience began to clap and cheer. The people who were clapping and cheering had just been admonished by the famous author and biographer. Many of them went on to become strong supporters of affordable housing; some of them still are today, even as the crisis he addressed 20 years ago is more pronounced than ever before.

Those are my McCullough stories. I’m sure many others have their own, which will re-surface as people share their memories of this influential but modest man. He was soft-spoken and un-assuming, but his message was always powerful.

Election Protection For National Resurrection

July 22, 2020 by John Abrams 8 Comments

Disclaimer: This post may not reflect the views of all the 36 employees/22 owners of South Mountain. It is not the formal position of the company; these words are my own.

I’ll keep it short.

In just over three months the 2020 election will sweep across this pandemic-laced land for one fateful day.

But the ballots open even sooner – some states allow early voting as many as 45 days prior. That’s September 19th, just around the corner.

With our country crippled and enraged by the “social arsonist” (as commentator Mike Barnicle calls him) in the White House, we need to assure an absolute full pivot to a new day by convincingly banishing Trump. As former Secretary of Labor Robert Reich says, “we need to beat Trump by such an enormous margin that his entire toxic approach to politics is discredited forever”.

The electoral turning of our political fortunes that began in 2018 must become a tidal wave of support for Democrats – up and down the ballot – to replace Republicans who have fully abdicated their responsibility to govern. We need to maintain Democratic control of the House, achieve Democratic control of the Senate, and make more state legislatures Democratic to overturn the re-districting travesties which have occurred in recent years.

This is a transcendent moment – Black Lives Matter has inspired a worldwide consciousness-raising. Can it be sustained? Maybe, if we can provoke a political tailwind to augment and institutionalize our anti-racist awakening.

Can we overcome the Covid-19 pandemic? Yes, with federal leadership which can only come from a compassionate White House whose occupants believe in science. (As author John Barry says, “When you mix politics and science, you get politics.”)

And can we, once and for all, tackle climate change for real? (Columnist Tom Friedman recently said “And remember, as bad as this pandemic is, it’s just training wheels for the big, irreversible atmospheric pandemic: climate change.) We can, but not without three branches of government all on the same page, or at least the two that we can bring home on November 3rd.

We need to protect the election in two ways: by maximizing the new voters who are registered to vote and getting them out, and by exercising vigilance to guarantee that those who are hell-bent on election disruption and manipulation are not given the chance.

Joe Biden was never the Democratic candidate I hoped for, but I am heartened by the steps he has taken to include diverse views in his campaign. His commitment to choose a woman for vice-president was a good start. Now the Biden-Sanders Unity Task Force has developed a strong progressive agenda. His $2 trillion climate change plan is the first significant plan ever by a major party presidential nominee. We can expect that he will surround himself with a cast of characters who could effectively govern in a way that we have become unaccustomed to.

My support for his candidacy has solidified. Those who are raising their voices need him to win and win big. Those who have no voice – or have not yet found it – need him to win and win big. This matters. A Biden presidency and democratic congress will not end structural racism or reverse climate change, but they can help.

But what can we do to aid this effort? Many wonder. I’ve been wondering too. Friends have led me to three organizations that appear to be doing a stellar job working to get out the vote and ensure a fair election: Movement Voter Project, Swing Left, and Adopt-a-State.

I have donated to all three. I encourage you to do the same. Next I will commit time. I encourage you to do the same. In Adopt-a-state I have chosen Arizona, because it’s a swing state that also has an essential tight senate race.

I remember saying, when George W. Bush was running for re-election, “This is the most important election of my lifetime.” I was so wrong. There has never been an electoral moment like this one, with an incumbent president who might lose the election and refuse to surrender power. Let’s never say that again. Let’s summon a landslide. A national resurrection is at stake. The clock ticks. The time is now.

Donate. Work. Vote.

Silver Linings

May 26, 2020 by John Abrams 5 Comments

Photo by Timothy Dewitt for the Vineyard Gazette.

Several years ago, I read an article in The New Yorker called “Estonia: The Digital Republic”. It named the small Eastern European country “most digitized government in the world”. In Estonia, government services – like legislation, voting, education, justice, health care, banking, taxes, policing, driver’s licenses and registrations – transact online in a fast, easy, secure, reliable, and effective system available to everyone. I remember thinking at the time, “This wired-up nation is providing a glimpse of what a more rational and inclusive future could look like.”

I was reminded of this last week when Joe Tierney, who runs our local building department, notified us that building permits are now available online. No more driving to town hall hoping to find Joe or his assistant Jeff. No more paper to copy, collate and deliver. One silver lining of our pandemic-hammered newly shuttered socially-distanced society. No way that’s going back to normal when this is all over. Yes, some personal contact will be lost. But more will be gained. Progress never comes without consequences.

We are no longer at the beginning of this pandemic. We are nowhere near the end. With many lives lost, others threatened, and all of ours fundamentally different than they were a few months ago, it might seem too early to be looking for the silver linings.

But it’s never too soon for that.

In many ways, our lives today are more stressful than ever: Widespread illness and death. Massive job losses and economic disruption. Deficient federal leadership (the silver lining here is that Trump is clearly taking himself down and all the way out.) Those who are already poverty-stricken endure even more hardship. The curtailment of freedoms we treasure. The confinement. The constant veil of uncertainty. Walking around in masks like it’s Halloween (you can’t even recognize friends and neighbors in the grocery store aisles).

But in other ways, you could say our new life has picnic-like qualities (although it does seem a bit like a dog came by and swiped all the sandwiches when nobody was looking).

In mid-April, I scribbled a note to myself: “I love the Vineyard roads during these shelter-in-place times. Mostly empty. Like the winter of 1975 – nearly half a century ago – when we would drive from home in Chilmark to Vineyard Haven. Often, we wouldn’t pass a single car during the 20 minute trip. It’s kind of like that now. Instead of staring at the car in front of me, I can watch the road ahead and look left and right as I drive. I appreciate the signs of gratitude for the grocery and hospital workers. The cherry tree in front of Edu-Comp is in full bloom, at one of the busiest intersections on the island, now quiet. As I head up-island, I enjoy the living tree canopies that reach out over the road – for light – and join with their counterparts on the other side.”

Silver linings.

Here at South Mountain, as in so many other companies and households, we spend our time gathering and collaborating on Zoom. We’re getting used to it. And better at it. So much so that the idea of meeting in a room sitting around a table is starting to seem old fashioned, like making a call standing in a phone booth after putting a dime in the slot. You’re right. . . it’s not that good of a replacement, but virtual meeting comfort and competence will surely serve us well, far beyond this pandemic. And when the time comes that it makes sense for certain meetings to be face-to-face, it will be all the sweeter.

Silver linings.

Here are a few witnessed on MV, from the mundane but poetic, to the lifesaving and essential:

• Kim’s puzzle exchange at the end of our road. She and Livey do puzzles. They ran out. She said, “Let’s make a puzzle exchange.” I sketched a crude drawing and got some old lumber from the SMCo yard. Our friend Rob built a sweet little shed. Kim and Livey made signage and instructions for use. When Kim announced it on the “Islanders Talk” Facebook group, 200 people responded with likes and comments. Countless puzzles came and went.

• Civil engineer Chris Alley waking up the morning after his office closed with nothing to do and deciding to walk Barnes Road, every day, bit by bit, picking up trash, including 400 discarded nips bottles in one stretch.

• Parents faced with their childrens’ at-home education discovering new ways to relate to their kids and new respect for the teachers they sometimes criticized. By the way, March of this year was the first month without a U.S. school shooting since March 2002. Eighteen years.

• Breaking free from the traditional political handcuffs caused by six different towns co- existing on one small island. One town wants this, another wants that. Regionalization used to be rejected by parochialism. But now, like never before, the towns are collaborating and acting in concert. Selectpersons, health agents, hospital – all on the same page. One island, one town at last.

• An outpouring of support for essential community institutions – non-profits that serve those most in need and iconic local businesses in trouble.

Silver linings galore.

More than anything, maybe, this time is a rest for the planet – a vivid testimony to the importance of consigning the sacred growth-at-all-cost economy to the dustbin of history. Overcoming the pandemic foreshadows the real work ahead: the long and hard but fully negotiable road to an absolute reckoning with climate change. According to the New York Times, the United States is on track to produce more electricity from renewable power than from coal for the first year on record, a milestone that seemed all but unthinkable a decade ago. Accelerating the transition to renewable energy is the sure path to restoration of the economy (that has been ransacked by the pandemic) and healing the planet (that has been ravaged by our insatiable appetites). Maybe, just maybe, we will look back on this as a hinge point that straightened our crooked path.

We may be developing a new sense that we are truly all in this together – that what I do, affects you, and what you do, affects me. And that each choice made affects the home we share. Columnist David Brooks calls this “a hidden solidarity, which I, at least, did not know was there.”

To assert that there is good news could seem insensitive to our current collective troubles. But there’s a door opening. And if it’s possible to walk through that door and use the good news to inspire transformation, it would be a terrible mistake to overlook it.

Our resilience is remarkable, as is our transcendent ability to create joy in the face of tragedy. The strength of our collective will to work together is tangible and unshakeable. Maybe it leads to renewal.

Yes, every cloud truly does have a silver lining, even this tragic and frightening pandemic cloud. Especially this one.

The Flip Side of Mitch

February 26, 2020 by John Abrams 8 Comments

Sometimes we are fortunate enough to catch glimpses of progress within our federal government (yes, there is some – despite Mitch McConnell’s relentless efforts to assure that nothing positive happens in Congress, he does not always succeed!) I had this chance several weeks ago.

In August of 2018, Trump signed a 788-page defense bill which authorized $717 billion for the military. Hardly anyone noticed that New York Senator Kirsten Gillibrand slipped in a provision to help workers own their companies – a modest attempt to tackle wealth inequality, and a timely one.

As baby boomers reach retirement age, we are undergoing a “Silver Tsunami” – several million small businesses in the U.S. stand at a crossroads: What will happen to them when their founders move on? Some will be passed down to family members. Some will be absorbed by larger companies (and likely, moved out of town). Some will close their doors. Others will explore the increasingly popular notion of selling the business to those employees who helped build it.

There are obstacles. It’s not uncomplicated. Gillibrand’s bill – the Main Street Employee Ownership Act of 2018 – was designed to help employee-owned companies gain better access to technical assistance and capital. On February 12th of this year, the House Committee on Small Business held a hearing to examine how the bill is working, how it’s not, and how it can be improved.

I was invited to testify as a representative of the worker cooperative model, along with two individuals who represented ESOPs (Employee Stock Ownership Plans) and one who represented a cooperative bank.

The experience was an eye opener.

The room held a significant sampling of the Democratic and Republican representatives who comprised the Committee. Chairwoman Nydia Velázquez of New York opened the hearing with this remark: “At a time when income and wealth inequality are at record levels, real wages for middle class workers are nearly stagnant, and retirement security is no longer guaranteed, one way to combat these problems is through the employee-owned business model.”

She displayed a firm grasp of the issues and a strong commitment. She knew her subject. I was impressed.

Each of us had five minutes to testify. My peers were knowledgeable and passionate advocates.

Mark Gillming, senior vice president at Messer Construction in Cincinnati, praised the tax advantages (passed by congress 45 years ago), which have caused the ESOP model to become widespread:

When I began working at Messer Construction, it was a medium size, family-owned construction company with a long history and a good reputation; but, like most companies in construction, it had little in the way of employee benefits.

In 1988, the last son of the company founder died, and we found ourselves with an uncertain future. The grandchildren of the founder wanted access to their wealth and, having no connection with the employees, were not committed to maintaining employment at the company. In 1990, the Messer employees were able to buy their future from the Messer family, using the ESOP structure. We could not have purchased the company if not for the important tax advantages that the ESOP model afforded us.

Our country’s investment in ESOPs allowed ninety-nine Messer employees to purchase their future; and the engagement that opportunity created, has resulted in growth. Messer now provides quality jobs and predictable retirement for over 1,200 individuals and has company-funded retirement assets for those employees totaling more than $400,000,000.

R.L. Condra, VP of Advocacy and Government Programs at the National Cooperative Bank in Arlington, Virginia, spoke to the changing nature of cooperatives and those who stand to benefit:

A prohibitive policy requirement by the Small Business Administration (SBA) is hindering the growth of the cooperative business sector. If this issue is resolved, lending institutions, like the one I work for, will be able to make loans that will help to grow small businesses, create quality jobs at increased wages, and provide healthy food and grocery options for communities throughout the country.

Cooperatives have evolved since the 1960’s when the SBA recognized them as buying clubs. There are now over 40,000 cooperatives in the US and the top 100 generated $222 billion in annual revenue in 2018. Some notable cooperatives include REI, ACE Hardware, Ocean Spray, Land O’Lakes, and Congressional Federal Credit Union.

Since the great Recession, worker cooperative numbers have doubled, and have become a business option for young people, women and minorities. According to the 2019 Worker Cooperative Economic Census, 50% of owners of worker co-ops are Latino and African American, and 62% of women make up the majority of the workforce.

Daniel Goldstein, President and CEO of Folience, a media company in Iowa, advocated for regulatory clarity that would lower the risk for businesses making the employee ownership transition:

I submit that the biggest obstacle to the formation and expansion of ESOPs is the chilling effect of the U.S. Department of Labor’s (DOL) actions. DOL has perpetuated an absence of formal regulatory guidance, while simultaneously pursuing a litigious approach to oversight. The effect has been a deep chill on the market.

Every year, hundreds of business owners who want to learn about ESOPs attend educational events hosted by The ESOP Association. And once exposed to the lack of clear guidance, many turn away out of fear that some unknowable misstep will invite never-ending DOL scrutiny.

Those fears are not unfounded.

Today, more than 45 years after ESOPs were established with the passage of ERISA, the Department of Labor has yet to finish its rulemaking process. They started. They nearly finished in 1988. But they never issued final regulations.

Operating without clear guidance is a risk ESOP companies should not be forced to bear; it is a risk that negatively affects the wealth and security of the 10.6 million employee owners DOL has been tasked with protecting.

But here is the travesty: It is impossible to prove how many American workers have lost the opportunity to become employee owners as a result of this chilling effect. And, due to the rapidly escalating retirements of baby boomer business owners, there is urgency to reduce the chilling effect this lack of regulatory clarity is causing.

And then it was my turn. I emphasized the value of employee ownership in our culture and the importance of sharing what we have learned:

I believe that owning our work is as essential to a good life as it is to own our homes. As former Treasury Secretary Lawrence Summers once remarked, “In the history of the world, no one has ever washed a rented car”. When employee owners are making the decisions, it is more likely that companies will stay rooted in place and be positive forces in their local communities.

Economist Richard Wolff says, “if our workplaces had been democratized, long ago, would the workers have stopped raising their own wages? Hardly. Would they have destroyed their own jobs by moving production overseas? Doubt it. Would they have employed technologies that pollute the local environment? No, they live there. Would they have allowed some to earn astronomical salaries while the rest got no raises? No way. Our economic history over the last thirty years would have been radically improved if we’d had a different way of organizing our enterprises – with a more cooperative community-focused method that is democratic at its core.”

Growing the worker cooperative approach has the potential to positively affect the economy, our democracy, and the quality of working peoples’ lives. It is not a stretch to say that the benefits of the democratic workplace may even aid and influence the essential repair of our battered civic landscape – it could change, in effect, the chemistry of our culture. If you spend your days working in an environment of collaboration, mutual respect, and shared power, it is bound to spill over into other parts of your life – better parenting, more civic engagement, kinder relationships.

The value and benefits of employee ownership continue to fly under the radar, and you can’t take this important step without knowing the option exists. So perhaps the greatest need is extensive education and publicity – the stories of employee ownership successes need to be shared and celebrated. Employee ownership “ambassadors” should be funded to visit companies who are considering transitions – to teach, train, advise, and inspire. Widespread technical assistance should be made available. Employee ownership should be the number one business succession planning option.

But it’s not. I hope this committee will build on the good work it has begun and I am grateful for the opportunity to make this request.

After our testimonies, the representatives asked questions. Good questions. Engaged questions. It felt worthwhile.

Government can work. We know that; we can remember when it did. My experience in Washington amped up my resolve to work hard this year to elect a real president, help democrats take back the Senate, and increase the number of voices involved in decision making. There’s never been a moment when it mattered more. Not in my lifetime.

As for South Mountain’s commitment to employee ownership: we make our Operating Policies, Bylaws and Employee Ownership Toolkit available online and are always happy to help other companies find their way. If you have questions, feel free to contact me at jabrams@southmountain.com – but please read our Toolkit first. It may answer some of your questions. Or it may answer some and provoke others.

Entering the Neutral Zone

December 17, 2019 by John Abrams 8 Comments

On November 19th, at our annual Day of Business, we unveiled the Transition Plan that will lead us to the next iteration of South Mountain. It was a threshold moment, a new hinge point in our 45 year history.

Are you ready? (This may take some time to tell.)

Over the next three years, our company will gradually transition from first to second generation leadership. At the end of that time, I, as founder, CEO, and president, will retire and continue to work very part time for several years. Deirdre Bohan will become CEO and president, and will work in a “first-among-equals” arrangement with the four other members of our strong, capable, dedicated, and well-aligned Leadership Team (comprised of Ryan Bushey, Rob Meyers, Siobhán Mullin and Newell Isbell Shinn). We are tremendously excited, and very confident, that this Transition, which we have been planning for many years, will assure the long term success of the company. It will allow us to continue to serve our clients and our community in the way that we always have.

LEADERSHIP
To thrive, prosper, serve, and endure, an organization needs effective leadership. So does a family. So does a country. Leadership is both a skill and an orientation. Everyone has some leadership skill, just as everyone has some athletic skill and some musical skill, and some of every other kind of skill. Even those who claim no musical skill can still sing a song to their child at bedtime. In the same way, everyone has leadership skill. Some have more of it than others, just as some are better athletes and better musicians. Some people have an orientation toward leadership; they think about it and practice it. Some work hard to learn it and cultivate it. Some have natural leadership ability. Most good leaders combine all three.

As the leader and CEO of this company, I have, over time, had the great good fortune to gather a group of stellar leaders here at SMCo (and people with other essential skills, too – those who can design, and build, and craft, and engineer, and practice finance, and administer, and manage). This has been intentional. In my own career, I have learned to do all of those things, but in most cases, only well enough to recognize and attract people who can do them better than I. That’s what our company consists of – people with 38 unique skill sets and orientations that comprise the whole. We couldn’t possibly flourish without each of them.

Few of my colleagues arrived here as skilled leaders. Our current leaders – Deirdre (our COO) and Ryan, Rob, Siobhán and Newell (our four department directors) had some innate leadership skills that they brought with them, but more importantly, they had a leadership orientation, and they developed those skills here at SMCo. There are other people here besides these five who have a strong leadership orientation and will develop those skills further over time.

BUSINESS TRANSITIONS
According to the Small Business Administration, there are approximately 30 million small businesses in the U.S. Many of them were founded by baby boomers who are aging out. Some will be passed down within families, but fewer than in the past. Most businesses will close their doors with the retirement of the Founder. Many others – those with value – will be sold to a new owner or absorbed by larger companies. None of those things was ever my intention or the intention of any of the other SMCo owners, past and present.

A smaller (but growing) number will be sold to their employees and become worker co-ops or ESOPs (Employee Stock Ownership Plans). South Mountain was sold to its employees and became a worker co-op in 1987. Having already made this conversion, we now have the luxury of foregoing the arduous and complex process of figuring out the transfer of ownership, and can direct full attention to capacity building.

Planning for our Transition began six years ago, in 2013. In June of the following year the full SMCo Board (all 19 owners) approved and adopted, by consensus, our first “Avalanche Scenario” (what happens tomorrow if I am buried by an avalanche today) and our “Next 40” projection (what the company will look like/who will lead it in 40 years time).

Despite all of this preparation, I struggled for some time to fully visualize leaving this company. In January of 2019, all that changed. I saw our leadership group taking the bull by the horns and making amazing progress. It was time to give shape and definition to our future.

In Managing Transitions: Making the Most of Change, , William Bridges writes:

Change is situational: the move to a new site, the retirement of the founder, the reorganization of the roles on the team, the revisions to the pension plan. Transition, on the other hand, is psychological; it is a three-phase process that people go through as they internalize and come to terms with the details of the new situation that the change brings about.

Managing transition involves helping ourselves through three phases:

Letting go of the old ways and old identity people had. This first phase of transition is an ending, and the time when you need to help people to deal with [the loss].

Going through an in-between time when the old is gone but the new isn’t fully operational. We call this time the “neutral zone”: it’s when the critical psychological realignments and repatternings take place.

Coming out of the transition and making a new beginning. This is when people develop the new identity, experience the new energy, and discover the new sense of purpose that makes the change begin to work.”

We are just completing phase one.

THE PLAN
After my realization, I assembled a plan and brought it to the Leadership Team. Understanding it requires some background.

It’s important to know that we had never considered, in any meaningful way, hiring a new CEO
from outside. We were encouraged by the King Arthur Flour model of a small leadership group – three in their case– becoming co-CEOs. At the time, our discussions with them led us to believe this was the right model for us.

But after further consideration, it didn’t make sense to have five co-CEOs (too unwieldy and confusing) and there weren’t two or three individuals that outshined the others. The five have great complementary skills and personalities, and are uniquely well-aligned. Four of them are department directors and Deirdre’s job has been co-managing the company with me – her job has been like a co-CEO for a number of years. The answer was clear: Deirdre should be the CEO, but in a first-among-equals arrangement with the Leadership Team.

I proposed this at a meeting. I expected some pushback or resentment from those who might have expected to be one of the co-CEOs. There was none. Everyone recognized the impracticality of five people sharing CEO responsibilities and the need for the company and community to have someone that is ultimately responsible for South Mountain Company – a face for the company and a place for the buck to stop. It was as clear to them as to me that Deirdre was the right choice. Since joining our team in 1995, at the age of 28, she has moved from bookkeeper to interior designer to COO to co-manager, developing into a confident, dedicated, skillful, compassionate leader and friend. She never aspired to this position; in fact, for years she did not think herself suitable. Now she knows that, with the support of the others, she is.

Deirdre will not absorb all of my responsibilities; rather she will continue her COO work while adding some new responsibilities. For several years now, we have been working to distribute some of the particular skills and experience I have accumulated to other members of the Team. We meet regularly to develop the details and work on implementation. Each Team member has completed a personal capability analysis and statement – outlining what they could provide and what they need to learn. We continue to work on these together.

For example, one of the key areas of need is in “sales” – the complex process of cultivating in prospective clients a deep understanding of who we are and what we do that leads them to believe we are the perfect fit for them. I had always done that alone.

These days, Ryan accompanies me to nearly every initial meeting and is growing into this role in leaps and bounds. Newell has been having more and more client contact and is starting to have a much larger role in the interface between design and construction. We are finding that both are particularly well-suited to these roles.

As we develop these capabilities, and many others, we think we are also developing the confidence, optimism, and vision which will lead to a prosperous shared future.

From this work, a plan has emerged.

The design of this plan becomes a model for future transitions which will come far sooner than this one has. As a seasoned company, we will never again have a 25 year old leader who remains in the role for nearly half a century. Deirdre will be taking the reins at the age of 55 and anticipates inhabiting the role for 10 or 15 years, at which time we will have developed a new Leadership Team and a robust system of transition for the next time around. Hopefully the CEO to replace Deirdre is with us today.

This transition is a work-in-progress. During the three years from now until the transition, we will conduct further capacity-building, flesh out the details, and test ideas and methods.

For those of us who have been working on it, this endeavor has become a great adventure. Ultimately, I think it will become that for all of us. I personally have one goal, and one goal only: to leave this company, this company I deeply love, in the best shape it’s ever been, ready to go forward as it never has. And to leave the people in this company, who I deeply love as well, in a position to succeed.

In a way it’s like watching a mostly grown child venture out into the world. But vastly different too: the child is young, adolescent, unformed – there’s very little certainty about how things will go. But this “child”, this company, is led by mature, capable, empathetic, passionate, dedicated people. It’s hard to imagine anything but success.

After the Day of Business, in response to a request for feedback, one of our employees, Chris Wike, wrote, “I am grateful to have come to this company when I did, to get a taste of what is was, but I am truly excited to be a part of what it will become.”

I think we are all feeling that way. We will move forward toward this new beginning together.

Peter Blackstone Ives, Friend & Partner

October 9, 2018 by John Abrams 3 Comments

Pete Ives retired last month. Of the many long term employees/owners who have made this company what it is, Pete had the longest tenure (except for me, last man standing, apparently). His illustrious career here spanned 41 years.

He came to SMCo in 1977, just two years after my former partner Mitchell Posin and I came to the Vineyard and South Mountain began. At the time he was an accomplished mason, painter, drywaller, floor sander, tilesetter, and surfer. He’d never done a lick of carpentry. He said, “Just tell me what to do. I’ll do anything, as long as I don’t have to tell anyone else what to do.” He was loyal, dedicated, and skilled, but he feared responsibility.

Back then it was just me, Mitchell, Steve, Pete, and Heikki Soikkeli (I think). By 1985 there were ten employees. Steve and Pete came to me and said they wanted to stay at South Mountain and make their careers here, but needed a greater stake and more than an hourly wage. We decided to become a worker cooperative. Pete became one of the original three employee owners when we restructured in 1987.

And he stayed. Over time he began to find confidence in his work and himself. He learned to be a very good carpenter and then a project lead, first reluctantly, then with pride. So much for not telling people what to do. He was the Clerk of the organization, the only one we ever had until his retirement. He also became an essential part of the Personnel Committee for all those years.

His work at SMCo extended into five different decades. He was the responsible project lead for some of our most emblematic projects, like Sagan, Thistle, Hass, Weinstock, Hamermesh, Field, Howes, Cook-Kraus, Davis, and Lake-Hodgson.

His work culminated appropriately with the wonderfully playful Lee Treehouse.

Pete has been friend, colleague, and co-owner. I have seen his three children at birth, growing up, and grown. Clare has always been a constant, his partner in the truest sense.

My wife Chris always said he was the heart of SMCo. The keeper of the soul. The king of casual. Killing it with kindness. Getting the job done in the most stress-free way possible. If Pete was there, it was surely gonna be fun. And infused with craft. Always craft. He had an unbelievable touch with people and wood. Knew how to make both fit together seamlessly.

We are lucky to know him and grateful for all he’s been and done. His spirit will remain a part of this company for as long as the company endures.

Pete with Steve, Marko, and me in some God-forsaken foundation.

There’s Deirdre . . . and then there’s Rob. . .

November 30, 2017 by John Abrams 8 Comments

At South Mountain, there are seven standing members of our Management Committee (which we call MCom). An eighth member, always an owner, rotates onto MCom for a six month stint. This allows all our owners to experience and contribute to the management process and learn to understand the complexity and dynamics of running our business.

Two of my management colleagues, Deirdre Bohan and Rob Meyers, have interesting stories. The rest do too (I mean hey, we all do, right?) but these two are particularly compelling because they took circuitous and unconventional paths to their current positions.

Twenty two years ago, when our bookkeeper moved off-island, we hired Deirdre to replace her. Within a year she had developed robust systems and reduced what was previously a taxing 40 hour job to a reasonable 20 hour job.

She came to me and said she didn’t have enough to do. “What do you want to do?” I said.

“That’s up to you,” she replied.

“No, I mean what do you really want to do?”

She told me she had a long-standing interest in interior design; it was one of the reasons she came to work at SMCo. For years we had done interior design partially and unsystematically; we wished to add a serious interior design practice but hadn’t had the resources and had failed to pro-actively seek them. So there it was: we decided to devote the time Deirdre had created (20 hours a week) to her education. She assembled a well-rounded program that combined the resources of several design schools. She was soon leading a thriving interior design business. We hired a bookkeeper to replace her; Siobhán has now been here 14 years and is our Financial Manager and another of our standing MCom members.

In 2004 and 2005 I spent two consecutive winters on sabbatical, writing a book and seeing how the company would fare in my absence. Deirdre was the person who stepped most effectively and thoroughly into the leadership void. The experience, coupled with her innate intelligence and the computer science degree she had earned at Brown, helped her recognize that there were operations issues that weren’t getting the attention they needed. She articulated this and soon became our COO. The operations job became nearly full time, and we hired an architect, Beth Kostman, to fill some of the interior design aspects of her job.

In 2010 Deirdre and her husband Dave had a son, Declan. She was 43. I think the lessons of parenting refined and strengthened her leadership skills, while softening them at the same time. She already had a deep intuitive sense of what makes people tick, but parenting always adds a special dimension – greater empathy and flexibility perhaps.

Deirdre now chairs MCom, co-manages the company with me, manages in my absence, and would become interim CEO (at least) if something were to happen to me (which we call the Avalanche Scenario). I couldn’t ask for a better collaborator. Quite a journey from bookkeeper to now!

And then there’s Rob Meyers.

Rob was hired as a carpenter in 1997. He was an average carpenter, but nothing special. He liked jawin’ more than sawin’. After a few years he packed up his family and went back to Michigan, where he’d grown up. Short-lived detour. Not so good. He came back in 2002 and has been here since. His carpentry improved, but it wasn’t what he really wanted to do, so he began trying on a variety of new and different roles within the company. The shift fueled his ambition and allowed his latent entrepreneurial abilities to blossom.

In 2007 we decided to devote significant resources to wind and solar. We wrote a business plan (I think that was the first time we ever wrote one, for anything). We did it because we had made a number of faltering attempts in past years to start a solar division but somehow it never came to fruition. I’m amazed to say we carried out that plan, and have gone far beyond it, specifically with solar. Today our lively Energy Services division is producing roughly a third of our revenues. Our solar work allows us to touch the lives of and provide something meaningful for far more people than our architecture and building does. It pushes our mission forward. It diversifies and strengthens our business.

Rob now manages this business endeavor with passion, commitment, connectivity, and competence. His gregarious nature and sharp intellect have helped him become a force in the industry throughout New England. He influences policy, and he has a national reach through our membership in Amicus Solar a member-owned purchasing cooperative and peer group network of 50 of the most progressive solar companies in the country (that’s another story for another time). And his mixology skills and lore are second to none.

These two people, Deirdre and Rob, have become true leaders. They came to South Mountain without the experience or the skills to do the jobs they are doing now. And they’re not just doing them, they’re doing them with remarkable professionalism and constant innovation, making it clear that they (along with others of the managers and owners here), are well-equipped to take the South Mountain juggernaut forward into an unpredictable future. One of the most thrilling aspects of my job – maybe the most – is witnessing the growth and development of the people who have chosen to build their careers here. As I often say, “Every morning I walk up the stairs and say to myself, ‘Hey, can you believe I get to work with these people, all day long, and I get paid for this’”?

There oughta be a law. But if there was, I’d have to break it.

Transitions – in life & in death & in business

May 23, 2016 by John Abrams Leave a Comment

On January 12^th, my wife Chris and I went to see my 95 year old father in Palo Alto CA. He had recently fallen and hit his head. I had been to see him after the accident and he seemed to be doing well. While i was there he and I had a long conversation with his doctor, Scott Wood.

My Dad, who just weeks before had been attending grand medical rounds, playing tennis, and leafleting for Bernie Sanders on University Avenue, was suffering from some cognitive losses, but he was lucid and clear. He told us in no uncertain terms that if this thing got worse there would be no hospital – only hospice, no food and drink, and comfort. We agreed. His doctor commented, “I’m with you – when I go I want plenty of morphine and ice cream, and the ice cream’s optional.”

The Long Hot Summer

October 5, 2010 by John Abrams 1 Comment

It’s been almost two months since I last posted here. It’s not that I didn’t have time, or that it flew by, or that I didn’t want to.It’s just that I wanted to say something that I wasn’t ready to say, and until I said what I wanted to say I didn’t want to say something else.

I wanted to look back at events of the early summer, but I was still “in them” and had no distance. Now we’re deep into autumn. The long hot summer is long gone. I’m far enough way. Enough distance.

Buying Books

January 9, 2010 by John Abrams 5 Comments

I love to buy books and read books. I don’t often use the library. I don’t own a Kindle. I buy books. But I’ve noticed that I end up reading only about two thirds of the books I buy. Not a good percentage. Each of those I don’t read wastes stuff: paper, ink, money, time, and space. I’d like to raise the percentage.