MAKING A DIFFERENCE: Gershens support Mays with more than $1 Million endowment
Texas A&M has always exemplified the things Barnett L. Gershen’s mother first taught him. Those lessons were remembered when Barnett and his wife Sam, of Houston, committed more than $1 million to establish the Barnett L. ’69 and Sam Gershen Learning Endowment at Mays.
After his father’s death when Barnett was very young, he and his mother made a living with a janitorial company they ran from the family garage. Hard work and dedication formed a part of Margie Gershen Abrams’ legacy for her young son.
Those values, reinforced in his business undergraduate course work at Texas A&M, helped Barnett build the family-owned Associated Building Services into one of the largest privately-owned building maintenance companines in the nation with more than 13,000 employees. When he considered how to repay Texas A&m for its influence on his early life, Barnett said he looked no further than Mays.
“This business school looks like it’s serious about making a difference in education and in the world,” says Barnett, who earned a BBA in management from Texas A&M in 1969. ”What a good place to start helping other people get the same opportunities that I had.”
The Gershen Endowment will support the life and advancement of the business school through its faculty, students, facilities and technology.
“The Gershen name will always occupy a prominent place in our school and, through this learning endowment, will provide us with the opportunity to pursue new initiatives and increase existing strengths,” said Dean Jerry Strawser. ”The Gershens are a wonderful example to our students of how to help others and make a difference in the world.”
After graduating with his BBA in 1969, Barnett headed to the University of Texas for an MBA, which he earned in 1971. He served in the U.S. Army, retiring as a captain. Throughout his life, Barnett worked in Associated Building Services, serving as CEO for more than 30 years until 2004, when the company merged to create one of the largest maintenance companies in the United States.
Barnett spent a year and a half implementing major initiatives as vice president of organizational development at Keystone Automotive Industries, Inc. He set up Gershen Consulting, LLC, in early 2006. He is now a senior management consultant and investor helping businesses take their practice to the next level. Barnett is a 2004 Mays Business School Outstanding Alumni and member of the Mays Dean’s Development Council.
Weathering Tough Times Requires a Stronger Focus
Weathering Tough Times Requires a Stronger Focus
By Barney Gershen
Having had to weather the storms of recession several times in my business career, I learned some very useful lessons that may be beneficial reminders to all of us. For those of us on the Gulf Coast, the “storm” terminology hits home. Positioning for a possible financial crisis is very similar to our preparation for Hurricane Ike—watching latitude and longitude and mph until it “hit.” At that point, we just had to “hunker” down and plan our recovery. Many of us are in “hunker down” mode now financially. Regardless of what you are doing for storm preparation, be aware that your customers have been taking a number of steps to weather the economy, and you can be a part of their solution—not part of their problem. Anticipate and prepare so that you will not only survive, but you will thrive.
Your Customers
Do your customers believe we are still in a recession? That is all that matters right now. This is an excellent question to ask during your one-on-one opportunities. It is best to get proactive and upfront with both the customer and your company in dealing with issues like this. The most important issues would be the following:
· Customer Retention: Using the 80/20 rule protects your base. Have you developed a proactive plan to go to customers in terms of cost reduction or additional sales? Do everything you can to communicate with and listen to customers in an effort to counter their feelings that they must discontinue using you or decrease their orders drastically to deal with a recession. Try to take on additional services and save them money at all turns, keeping them aware of your efforts to save them dollars. Become more valuable and indispensable.
o Communicate with customers constantly to determine their feelings. Listen to what they are saying and make every effort to understand their needs. Make it difficult for them to consider decreasing your services.
o Know where their budget dollars are and how you can work with them (i.e. different classifications/coding).
· Sales: Go on the offensive; that is, after low-hanging fruit from potential customers that you know are affected by the recession. Have your presentation demonstrating the value/savings you “bring to the table.” Think about what companies have been affected and direct your outside sales force to go after them.
· Try to grow your way out of this dilemma also through selling of additional services and/or products.
Your Company
· Cash/collection for your company: Cash is the “lifeblood” and must be protected. Watch customers with slow pays. Go out and pick up the check as opposed to having them send it in the mail. Make collections an issue with the customer if/when you need to.
o This is another opportunity to bond with the customer and listen to their needs.
o Make sure your contracts are in good shape and cover slow pays and lessened services.
· Banking Relations: Continue to solidify your relationships, and confirm your bank’s stability.
o Revisit your revolving line of credit.
o Implement regular cash forecasts.
o Take a hard look at accounts receivable.
o Revisit the company’s performance versus budget.
· Internal Changes
o Set your fiscal budget and require strict adherence with the only exceptions being authorized in writing by you.
o Implement a hiring freeze and a spending freeze, including raises.
o Increasing productivity within the current staff—using 80/20 rule, reengineering audits, standardize and simplify, costing meetings etc.
o Do not cut muscle in your staff or budget; cut fat.
o Communicate internally with your team telling them what’s happening and giving them the scorecard. Sell the team on how and why you are doing this.
o Look for opportunities to acquire companies and talent. And realize that other companies are identifying and could be recruiting your top talent.
· Suppliers/Vendors: Have you asked your suppliers for help? Set up quarterly reviews with them and ask for their help, as well as their knowledge of the industry regarding acquisitions, talent that’s available, competition information, and of course the newest and most productive ways of doing things.
You
o Make a plan and adhere to it daily.
o Recognize it’s your responsibility to maintain the financial health of your company and the employees that have been entrusted to you. This is your biggest asset.
o Execute against your plan without exception.
If you plan and get proactive, this can be a great opportunity instead of a problem.
WELCOME TO GERSHEN CONSULTING L.L.C.
Gershen Consulting provides a variety of functions to CEO’s, Board Members, and to C level Executives. Through Gershen Consulting, you have access to traditional and non-traditional resources such as performance evaluation tools/processes, hiring and team development tools, vendor selection and performance, and financial expertise. Gershen Consulting can also help with tactical and strategic planning.Gershen Consulting can provide an organizational development plan to help you find, retain and develop the best people for your situation.
Gershen Consulting can create and help implement a new Board of Advisors or improve the effectiveness of your existing Board.
Gershen Consulting can function as a sounding board to top management and Board members. Gershen Consulting can help with your financial analysis and accounting improvements, and increase your top and bottom lines, along with your cash flow.
Lastly, Gershen Consulting will work together with you to develop a profitable and smooth exit strategy for you. And, we can have fun while we’re doing it.