Like Ringin' a Bell

[Chris_Wendt]

NY Stock Exchange, Wednesday, July 29, 2009 - The Closing Bell...

...rung by the CEO of Standard Motor Products, Inc.

Yesterday was a proud day at the company I work for. Back at corporate headquarters in Long Island City, most of us gathered in the training facility to watch our CEO ring the closing bell at the New York Stock Exchange down on Wall Street.

I am posting this here as a "teachable moment" because of the significance of the dedication, hard work, and sacrifice so many people in our company made for that moment to have been possible, especially compared to other poterntial outcomes.

Standard Motor Products makes and sells automobile parts, and we have faced some truly monumental hurdles during the current recession. In addition to the general business malaise, our client base includes Chrysler, Ford and GM, meaning we saw a rather serious fall-off in orders in the second half of 2008. We also had what turned out to be very bad timing in having a $90 Million convertible debenture coming due this month, July 2009, and we absolutely had to come up with that amount of money, even in the face of an overwhelming business decline.

Needless to say, we did achieve the do-or-die goal, completely and on-time. But this was not accomplished by wishing and hoping, although there was some praying involved. Among the activities that took place to get the job done were:

• General Salary Freeze in 2009
  
• Deferal of all bonuses for six months (we work on an MBO incentive bonus system - pay for performance)
  
• Staff reductions in every department
  
• Consolidation of administrative functions across plants in NY, Texas, Virginia, North & South Carolina, Kansas, Nevada, Indiana, Florida and Toronto
  
• Consolidation of manufacturing operations, including closing factories in NY and North Carolina and moving some operations to Mexico and Kansas

For some us, the sacrifice was a one-time yearly raise and a six-month postponement of our performance bonus; for others, the sacrifice included relocation to other cities or Mexico; for still others, the sacrifice was to accept a buy-out plan and change careers or take a furlough or retire early.

Whatever level of sacrifice individuals were called upon to make, they did so with the utmost professionalism. Several thousand people in all were involved in some level of giving back to the company.

What I did want to convey to the readers is a snapshot of the economic realities confronting millions of people across America, even some of us who live right here in Wantagh, Long Island.

Proud of this, our accomplishment and to be part of my company,

Chris Wendt

[javanights]

This is a great accomplishment for any company.
Standard Motor Products is a company that I have known for more then 30 years.
This is a testament to maintaining a Vision. The goals that were needed to accomplish this were difficult for everyone who wanted to maintain the Vision.

Part of this great accomplishment is due to leadership that guided as well as mandated changes in behavior and finances.

Leadership that lies in one central domain is a necessity. ? Wantagh Schools has many domains of "leadership".

How can that situation be resolved? It is like the numerous tribes that claim sovereignty in the various regions in Afghanistan.

If we can restructure the Leadership in Wantagh Schools, we may want to suggest the solution to the US Government so they can finalize the war in Afghanistan.

Once again congratulations Chris and SMP, for securing the status as a landmark in New York City.

[Chris_Wendt]

javanights remarked: "...this...accomplishment is due to leadership that guided as well as mandated changes in behavior and finances."

Very interesting observation, and telling of the success.

This is really a lesson in leadership:

1. Just mandating without guiding and building buy-in and consensus would not have worked.

2. But just cajoling and schmoozing, hoping to obtain buy-in and wishing for a consensus to form around an intrinsically unpopular concept (on the level of "What's in it for me?")...without possessing--and wielding--the authority to mandate it's happening would have been futile.

Having a vision, articulating and communicating the vision, and keeping faith with that vision regardless of the popularity or un-popularity of the cause and reactions to it, that's the role of leadership.

Like anything else in the world of business (and schools are a business), a leader has to know what success looks like, and a leader sometimes has to taste failure to recognize that.

A good, recent example of failed leadership is the restoration of seventh grade sports teams this coming school year in response to "popular opinion" rather than adherence to a vision of sound financial guidance. Loss of faith in the initial vision that canceled 7th grade sports teams the year previous will redound to haunt the so-called 'leadership' which caved-in to the whining and crying of the selfish few, this year.

Thanks for your response, javanights.

Chris Wendt

[renee]

A good, recent example of failed leadership is the restoration of seventh grade sports teams this coming school year in response to "popular opinion" rather than adherence to a vision of sound financial guidance. Loss of faith in the initial vision that canceled 7th grade sports teams the year previous will redound to haunt the so-called 'leadership']which caved-in to the whining and crying of the selfish few, this year

I feel the need to respond to this comment. The seventh grade kids were the only children to pay the price for a failed budget The eighth grade kids didn't feel a thing. I do not believe that there were only a few. Maybe the budget didn't pass last year because the whole town is selfish. Ihave noticed that everyone wants what there children do sports, music etc and one doesn't care about the other. Then you have the people who have children already done with school and they don't care about either one . Wonder if there thoughts would be the same if there own children lost anything?So just because some people wanted their kids to have what every other child had going through Wantagh schools had doesn't mean they are selfish. This is why the town is divided.

[Chris_Wendt]

Thank you for responding to this issue, Renee.

I would take exception to a few factual references you made.

First, seventh grade sports was not eliminated because of the twice-defeated budget. In fact, seventh grade sports were taken out of the original budget by the school board, well before the first budget vote.

Relatedly, it is believed by many people that it was a backlash revolt against that budget by the parents of upcoming seventh graders that caused the first budget to be defeated. What I can tell you is this: there was no organized 'defeat-the-budget' effort by senior citizens or concerned taxpayers during the first budget vote in May. So, whatever caused the first budget to be defeated came from within that large group I call "the faithful" in our school community; either staying home on voting day, or, an outright 'Vote NO!' campaign over the school board's cutting 7th Grade Sports.

Finally, 7th Grade Sports is a relatively new luxury in Wantagh, and one which now promises to be a recurring nightmare for the school board in future budget votes. This is especially true owing to the fact that the BAC recommended against re-instating 7th Grade Sports, and/but the school board, really in fear of another backlash AGAINST THE WHOLE BUDGET by one selfish parent faction, forsaking the board's own leadership role, caved-in to public pressure and substituted "a popularity contest" in place of sound financial judgement...the board did a complete FLIP-FLOP, reversed their earlier correct judgment, and put 7th Grade Sports back into the budget.

This fiasco is not going to just fade away.

Below is the actual Board of Education Response to the BAC's recommendation NOT to re-instate 7th Grade Sports:

"Athletics

1. Given the overwhelming interest

[/i] at the Middle Level from students excited about participating in interscholastic sports, separate 7th grade teams will be provided. Needless to say, the number and nature of teams funded will be reviewed annually."[/blockquote]

This is just, well, spineless. The kind of spinelessness that put last years entire budget in the toilet. The same kind of spinelessness that will put next year's budget in jeopardy of failing. We all need more from our school board than spineless.

I truly wish I did not have to say these things,

Chris Wendt

[renee]

Yes I know that seventh grade sports were not in the budget in the first place and I agree that not just some but many people were not happy and this could have been the no voters . This group of seventh graders is the biggest group to ever graduate Wantagh schools. I know this had much to do with it. I also don't think the senior citizens single handily voted no either but I am positive there were some just like there is every other year. I think the whole problem is the town is divided into groups Some are simple and just want what they want for their children. As far as spineless I cant agree See I know that there were many complaints all year long. The Seventh grade parents were under the assumption that seventh and eighth grade would be combined but this did not happen , a small amount of seventh graders made any team and even when they did they didn't play.This made seventh grade parents feel like their children were the ones losing out on something. I have to tell you that I was not one of those parents. My personal opinion, if the school could save a considerable amount of money by doing this then by all means It is not that important there are outside leagues for seventh and eighth graders. So what I think the board of ED did was put it back in based on majority. Yes that majority would have Voted No for this years budget as silly as that seems. I do think this would have happened if the board took away seventh grade band too See it is all about what One wants for their particular child. Selfish? I don't know,But not just a few Many who don't really see the big picture.

[Chris_Wendt]

Renee

I would like the record to be clear on this topic. Seventh Grade Sports was CUT from the ORIGINAL 2008-09 Budget by the Board of Education in consultation with the Superintendent of Schools, Dr. Bonuso. THAT decision was not only the right one to have been taken, financially, but must be considered as having been a modestly courageous position.

So then what happened? Knowing full well what you have pointed out, that there is always a base number of “No” votes that will be cast regardless of the budget presented, a group of sixth grade parents decided to put their own selfish concerns ahead of the common good, decided to substitute their judgment for that of the Board of Education, and that group of parents torpedoed the entire school budget, and placed in utter jeopardy the entire athletic and sports program, because their twelve year-olds may miss one year of school team sports?

If you can think of a more appropriate word than “selfish”, then please post that word in reply.

Now, there is an additional factual discrepancy to address, and that is the erroneous information about that 7th grade class being the largest ever. The largest classes ever, by a wide margin, went through Wantagh and graduated during the 1960’s.

Finally, and recognizing that you do not agree with my characterization of the Board’s caving-in to popular demand as “spineless”, I can only reflect upon that same board, those same people, having first had the “courage” to CUT Seventh Grade Sports—because that was the right thing to do—only to lose their nerve and fold like a house of cards when another group of “selfish” parents threatened them with another selfish “No” vote campaign against this year’s budget!

Not only was that a “spineless” capitulation by the school board, but in my opinion, that act of surrender destroyed the last remaining shred of credibility for any future hard decision or ‘tough stance’ on any issue by the school board. And the school board will at some point have to at least pretend to take a hard-line stance with the teachers union, later this school year.

Fortunately, we have a NEW Superintendent and at least one new board member, and perhaps they can all pull together to regain both credibility and respect for how they deal with upcoming challenges.

You outlined one big problem: “I think the whole problem is the town is divided into groups” which is not going to change, either by itself or over night. But change it must, or one group or another will be able muster the resources and numbers to scuttle the next school budget or the one after that. This is not the whole problem. But changing this may be the whole solution. The real problem is the school board spends too much money, and the whole community needs to get behind them and support every last effort they can make in their (hopefully 'courageous') attempts to reduce spending. Even if that means cutting 7th Grade Sports and firing the District Photographer next year, or even later this year.

Hopeful,

Chris Wendt

[lilly]

Congrats to your company Chris.

Unfortunately, in terms of regaining credibility the BAC report was a huge ding against that. That report was a huge opportunity and they blew it on several huge levels.

[renee]

HI

OK The record is straight I am not looking to argue any point that you have as most of them are correct.I was just trying to point out a different view on the situation. The parents of seventh graders were under the assumption just like myself that seventh grade sports were not cut from the budget but combined. This was not the case which caused confusion and anger which led them to Be selfish. Yes there is no other word They torpedoed the school board Yes So selfish is the correct word One wanting only for themselves disregarding others I was trying to tell you why. Some may think that the board did the right thing but other people think they were wrong, Different opinions for different people. that is why I don't think it was spineless, when they put it back in. I think it they might have caved into the majority . Again I'm not saying I agree. Like I said before think that the schools divided into groups and whichever group had their child's after school activities taken away would have done the same thing. I don't think the school photographer and seventh grade sports should be cut together . The photographer is not for the kids Sports are so before any thing is taken from kids Silly things like that should be gone.So again I'm not disagreeing with you at all .

Just for the record People need to join together on all subjects. Just because one talks about sports does not mean they don't care about academics.

Sorry I am not sure if I responded in the right place.

[Chris_Wendt]

Renee noted:
"I don't think the school photographer and seventh grade sports should be cut together . The photographer is not for the kids Sports are so before any thing is taken from kids Silly things like that should be gone."

Excellent point, and one that gives me pause to agree with you on a substantial point. Where the school board spends OUR money, on what, is probably the most important consideration.

In retrospect, had the district photographer position, and other not-for-the-kids spending categories been cut ahead of time, then there may not have ever been the need to even think about cutting 7th Grade Sports!

I think this is a good and productive conversation.

Chris Wendt