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Monday, April 30, 2001

Executive Committee gives expensive advice


But results often justify investment

By John Eckberg
The Cincinnati Enquirer

        Leaders who come to monthly meetings of The Executive Committee have this much in common: Sales at their companies are growing at a breakneck pace and the executives are concerned or confused about how to maintain the momentum or, perhaps, even build on it.

        “The companies are mostly midsized and wrestling with growth situations,” said Sheldon Kopin, retired president of the former Totes Inc. and organizer of the fourth TEC panel in Greater Cincinnati.

        Failing companies generally do not have $10,000 for the upfront charge to bring challenges before a TEC panel of unbiased executives, who have also paid $10,000, for advice.

        But they do have a pressing desire to manage growth, which can be as vexing a problem as falling sales and widening layoffs.

        “When a company is in trouble, it's difficult to justify the costs. We have companies that are growing and wondering - what do we do now? The money portion is the least cost,” he said.

        “The problem for most executives is the commitment of a full day every month.”

        As firms across the region and nation stagger from a slowing economy, Mr. Kopin, founder of JBS Associates, a firm operated out of his home in Amberley Village, has an option for those firms with exploding revenues.

Confidentiality rules

               In today's fast-changing business climate, executives face growing and tough challenges from e-commerce, global competition, environmental regulations and federal employment rules.

        Swimming with a surging economic tide can swamp even the most experienced executive and that is why the TEC process is so productive, Mr. Kopin said. The executive gets a peer brain trust for his money.

        The strategy — developed in 1957 by parent firm TEC, a group based in San Diego — works like this: As a member of TEC, a chief executive puts his most important issues on the table before 12 to 16 other executives. There are no competitors, no vendors and no loose lips.

        “Everybody signs a confidentiality agreement,” Mr. Kopin said. “They then are free to lay out their innermost business secrets.”

        After the initial meeting, the executive solicits and receives feedback from each member of TEC. Topics may be how to handle problem employees, retention, recruiting, budgeting or raising capital.

        Once a month, after the group's chairperson meets one-on-one with the members, he develops a plan to address the most pressing company concern for that month.

        The process is repeated throughout the year. Challenges may not necessarily have to do with operations. The executive can bring personal problems to the panel for insight into potential solutions.

        There is a lot of gut-checking happening at TEC meetings.

        The newest TEC is part of an international organization that has 7,000 members on six continents.

        William A. McCloy, 40 and owner of MMG Inc., a West Chester consulting group, joined a local TEC panel about five years ago when he was the president and chief executive of the former Power Distribution Services.

        It was sold to Square D Co. two years later but Mr. McCloy remained in his TEC group because he found it rewarding, informative and valuable.

        “Often there are issues you just can't discuss with anybody in the organization,” he said.

        “This is a great forum to discuss those delicate or difficult issues and filled a nice void for me.”

Varied personalities

               While the common perception of chief executives and senior executives may be that of individuals who are self-directed entrepreneurs, accountable to almost nobody - problem-solvers who fly solo - that notion is outdated and probably false, said psychologist Richard F. Reckman, who is based in Blue Ash.

        Mr. Reckman, who has consulted and been an executive coach, said a variety of people run companies and therefore a variety of personalities are in play.

        “If you rise up through a large or midsized organization,” he said, “it's usually not a case of "I'm going to do it on my own.' At some point you'll be called out as not being a team player. When you run an organization, you have to be open to feedback.”

        Those are the chief executives who are most likely to benefit from the TEC approach.

        “What is appealing to me about TEC is that a lot of people when they become chief executives do feel an increased responsibility and yet it's not quite clear who they can talk to about that,” Mr. Reckman said.

        “If there were instead a body of 10 or 12 who have already served in those roles, that's a welcome group.”

        David J. Cline, president and chief executive of Balboa Instructments, a Los Angeles manufacturer of electronic controls for hot tubs and spas, believes his TEC colleagues two years ago had a lot to do with his award last year from the federal Small Business Administration as Person of the Year.

        “If you spend $10,000 and learn something from a meeting that saves you $100,000, that's a good investment,” he said.

        His group acted as an informal board of directors and offered candid and concerned opinions each month about operations. Being a chief executive can be a lonely job, Mr. Cline said.

        “Your leading a business onto bigger and better things but they you look around and think: Is this a wrong direction? What happens if I make a mistake?

        “Chief executives are generally rugged individualists but there is a certain amount of insecurity that goes with that,” Mr. Cline said.

       



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