Category Archives: Business

The Fallacy of Stock Price and Other Disturbing Things

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“When you have some spare time, read this.” [piece in the Harvard Business Review]  That was May of 2017 and the request was from… a VIP-  I should have responded sooner.  25 revisions later the topic is still stuck in my head.

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Broad Themes

A few themes of the piece (editorialized by me):
-Stock price is a grossly overweighted indicator of success, and many large companies now make shortsighted decisions to gain favor in some aspect of the market.
-Capitalism is good at comparing the prices of goods & services and at valuing risk. It is bad at assessing the value to people (both employees and society), especially over time.
-The dominant financial system disproportionally rewards anonymous investors, but that anonymity throttles the information that investors might want to use to represent their interests in the market.
-That same anonymity creates a slippery slope of moral hazards that neither investors or managers are well suited to navigate. Some cultural norms have made it even harder for individuals as investors, or as actors in corporations, to make clear judgements about ethical behavior.
-Laws are poor substitutes for good judgement and ethical behavior.
-Corporate personhood as we currently have it, fails to account for the difference in lifespan and in needs that actual people have. Corporations can live forever so long as they can excrete profit.
-Real leadership requires a unique blend of passion, moxie, and humility that isn’t easily taught in your local MBA program.

Broader Responses

The most important role of corporations in society is to make incredible things happen. Corporations enable leaps forward in technology (and subsequently quality of life) to which no other paths exist.  We remember Ford for interchangeable parts, and Google for making the internet useful. Corporations ostensibly bring people and knowledge together to solve really hard problems and share the rewards (somewhat) in proportion to their labors. This can be a great thing, but many improvements are needed to properly account for the associated social and environmental costs (among others) and ensure equitable renumeration. We, as non-corporate people, also have to understand that that markets will never be perfect, and that government (or society at large) has some role in assigning costs that cannot otherwise be assessed. It’s easy to miss the range of functions that corporations perform simultaneously. If nothing else re-prioritizing some of the more societal functions will make organizations more attractive to talent.

As an engineer, I tend to focus more on the technical specifics of what a business does. My dominant view is that “the product” is the most important aspect of a business.  Most of this article got me thinking about how different running a business is from just doing cool stuff that people want to buy. You can’t do cool stuff if you don’t have any capital, aren’t making any money, or don’t have structures in place to organize the effort.

This piece did not especially help me understand a different question I’ve been thinking about since I stopped doing manual labor for a living: “why do we get paid what we get paid for what we do?*”  Modern capitalism perpetuates some bizarre inequalities between occupations that don’t make sense to me. Many occupations that are highly compensated return low value to society- and many functions that provide essential social value are poorly compensated (like teachers). I’ll keep looking for this one…

I can’t read this article and not think about leadership on an intensely personal level. We follow the people because we believe in the vision they see- to the top of a mountain, or the top of an earnings statement. The responsibility in following someone lies on each of us to make sure that those leaders can actually get us there. Do they have knowledge and experience and some scars to inform that vision? Or do they just talk louder, promise bigger, and blame someone else when it goes wrong? We follow leaders because we’ve seen them take a little more share of the blame and a little less of the credit than they deserve**.

I spent most of the summer reading “Basic Economics” by Thomas Sowell. It’s an excellent explanation of how pure capitalism is supposed to work. Supply vs demand, price signals, invisible hand… helpful to understand, but fails to tell the whole story.  Particularly now, as stock prices have already recovered from a bear market but millions of people and businesses are insolvent, it is clear that shareholder value does not tell the whole story. As we consider other looming “major disruptors” like climate change or unprecedented wealth inequality, the rest of the story is yet to be told.  It’s clear to me that the societal functions & impacts of corporation decision-making need a lot more consideration.

Standout Quotes

If you don’t read the piece, these are the direct quotes that stood out to me.

“…and that many chief financial officers are willing to forgo investments in projects expected to be profitable in the longer term in order to meet analysts’ quarterly earnings estimates. According to surveys by the Aspen Institute, many business school graduates regard maximizing shareholder value as their top responsibility.”

“As a result, managers are under increasing pressure to deliver ever faster and more predictable returns and to curtail riskier investments aimed at meeting future needs and finding creative solutions to the problems facing people around the world.”

“Moreover, the fact that they can hedge or immediately sell their shares and avoid exposure to the longer-term effects of that vote makes it difficult to regard them as proprietors of the company in any customary sense.”

“In a well-ordered economy, rights and responsibilities go together. ”

“prioritizing high returns on invested capital for initiatives at GrowthCo, and introducing more shareholder-­friendly governance, including tighter alignment between executive compensation and returns to shareholders. The plan would effectively dismantle DuPont and cap its future in return for an anticipated doubling in share price.” (I think this is called killing the golden goose)

“Such a model would start by recognizing that corporations are independent entities endowed by law with the potential for indefinite life. With the right leadership, they can be managed to serve markets and society over long periods of time.”

——

*One of my favorites from working in Missoula and not making a lot of money
**not my line. Credit to Seth Godin, I believe.

Have the Conversation

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A few weeks ago, a friend on facebook posted a link. He feels differently than I do about some aspects of climate change, and his post welcomed a debate. I would generally avoid this type of “opportunity”, but he made a good point in the ensuing comments: all of us have to get better at having conversations with people who think differently than we do. The post featured a link to this piece by Stephen Moore, who is currently being considered for a seat on the Board of the Federal Reserve. It’s easy to oppose Mr. Moore’s appointment because of his backers, his associations, and other published vile commentary. A handful of previous commenters voiced their disdain & disrespect for my friend, the link, and it’s author, but vitriol without logic simply rings hollow. It’s easy to settle into the shouting match, it’s more useful to oppose the ideas he represents, and to know specifically why. I wasn’t open to embracing the conclusions of the piece, but responding was a chance to explore the finer points of my disagreement. My reply was as follows:

“hey man, I read the article- and since you encouraged the discussion, my thoughts are too complicated to fit in a sound bite.

To me, it seems like the point you (not the article) are making is that if we can’t talk to people who think differently that we do, then we’ve lost the game completely. I couldn’t agree more. As one of the leftists that might otherwise might “shout you down”- I hope to avoid that here.

I respect you, and am only chiming in to learn how to have this conversation more constructively. I remain fervently committed to finding a way to mitigate (if not reverse) the impacts of climate change- and I’m not even sure you disagree with me on that. The point I think you and Mr. Moore are both trying to make is “we are spending a lot of money trying to solve a problem, and it seems like we aren’t getting anywhere. This seems fishy and we should pay attention to that.” I’m willing to consider this view, because I desperately want effective climate action. I do fervently disagree with his conclusion though: “we’ve spent a lot of money on this, I’ll take the risks of global warming over the crappy ROI.” I’m pretty sure that leads to more human suffering than Mr. Moore is willing to even consider.

Maybe we can agree on some common facts?
-I think you know a lot more than me about how money works.
-I’m pretty familiar with the energy engineering.
-I think we both care a lot about the beautiful birds you photograph, which are also impacted by climate change.
-We need realistic, market backed solutions that incentivize mitigating climate change impacts. Anything less will die on the vine.

So what do I think we are getting for the thing that Mr. Moore says has zero ROI? 
1) I think humans are better off in a low carbon economy- fossil fuels are an inelegant solution to a bunch of engineering problems. Entirely aside from a “warmer climate” – dramatic reductions in fossil fuel use result in reduced impacts on human health, improved environmental health (also benefitting humanity), and are often more equitable (it’s cheaper and easier to put solar panels and a battery on a hut in Africa instead of building a power plant and stringing up thousands of miles of wire). Energy efficient buildings last longer and present better value to owners. Electric cars are safer, more efficient, and more fun to drive. The list goes on. To me, transitioning away from fossil fuels is still a really good idea even absent a positive impact on the climate.
2) Are we really sure we haven’t wasted this much money on other things? There is so much waste in our economy. Yeah, capitalism is way more efficient than communism or real deal socialism (not the watered down stuff that American democrats get accused of), but it’s still morbidly wasteful. Depending on who you read, we still provide deep subsides to the fossil fuel industry, and have been doing so for pretty much the last 100 years. Let’s try subsidizing something else for 100 years and see what happens? It sure seems like fossil fuels are a problem, so let’s at least see where trying to do something about it might land us.
3) If you (and Mr. Moore) aren’t necessarily saying the world isn’t warming, then perhaps you’ll allow this: I think global climate change is a probably a much bigger, much more complicated problem than we humans have ever tried to solve before. In many ways, it is the worst case problem for humans to solve- nebulous long term consequences, with painful short-term options that no one is sure will work. The planet itself and some animals will be just fine. Humanity, will certainly take quite the blow if not the knock-out punch. I won’t be surprised if it takes tens of trillions of dollars and many decades to solve. Looking at the energy science, solving climate change makes putting a man on the moon look like a pleasant Sunday drive.
4) You’re right to mention the other major structural issues that are preventing a more sane look at this issue. The national debt. Income inequality/stagnated wages. Money in politics. Maybe we should try to figure out some of these smaller issues before we try to tackle a bear like climate change.

As this is a conversation, I’d love to better understand a couple of the other good points you’ve made in the ensuing comments:
1) help me understand how, specifically in this instance, big money tends to encourage rent seeking? Which rents? Are these actually worse than current rents being soughtafter?
2) Why isn’t this America’s problem to solve? We’ve exercised great global leadership and technology development for a long time (re: the post WWII world order, developing everything from the internet to the microwave oven). Doing all of these other things is what made us the richest country in the world. We’ve been spending piles of money on long shot initiatives for a long time. Why not solve this?

Last fun fact- we’ve been getting better at *not* subsidizing (all sectors) of the energy markets as much:
https://www.eia.gov/todayinenergy/detail.php?id=35932

Hopefully it doesn’t seem like I’m shouting- this is just how I think about it.”

——-

Challenge yourself to think about the issues, don’t settle for a simple left/right divide. Don’t take the bait to the shouting match. Learn to have the conversation.

Adventure Enablers

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Occasionally, I am lucky enough to have readers say “wow, that was a great post/cool adventure/link/whatever, how can I support your blog?” I’ve never really wanted to raise money from this little writing project, but the adventures don’t happen for free. One thing that has made most of these stories possible are generous friends in far away places. Margaret has hosted me, fed me, and driven me around Alaska countless days and nights. Now, she’s looking for a loan for her business supporting the local food movement in Alaska. Join me in supporting her campaign thru Kiva.org, and consider making a donation to Kiva while you are there.

https://www.kiva.org/lend/1745300

You can read about some of my time with Margaret here, here, and here. If you haven’t heard of kiva.org, they provide a platform for micro-finance loans all over the world. I’ve been a supporter since 2015 and generally have made a point of supporting small construction entrepreneurs in South America. I’ve also loved supporting a couple more local friends over the years. If voting with your dollars matters, this is the best way I’ve found to do it.

Welcome to the Workplace

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Stop thinking you are going to be a “leader” when you walk in the door.

I’ve enjoyed serving as a mentor for the Washington State Opportunity Scholars program over the past few years. I drafted this post a while back, but sitting on some recent interviews and recruiting events prompted me to finish some reflections on what I’ve learned from the really awesome team of young employees I work with.

The typical narrative for emerging professionals is “be a leader!” Every university magazine touts the institution’s ability to train leaders. LinkedIn articles and business magazines buzz with advice about “entrepreneurship” and “innovation.

It makes me want to gag.

The most impressive and effective young professionals I work with encompass a description I learned on a NOLS course: “active followership”. They have found a leader whom they trust, and figured out how to support them really well. Their job hasn’t been leadership.  My department head is the leader- leading is their job, and the best way to support them is being a person that will reliably get stuff done. Sometimes it means leading other employees, but most of the time, it means getting stuff done.  This is active followership.  Here is what I see them doing (and what I enjoy learning to do better):

  • Ask great questions, and don’t be shy about it.
  • Clarify the commitments and expectations being asked of you. Be certain of what you are trying to do, before you go try to do it.
  • Be as knowledgable and focused about the outcome of your assignment as your boss is.
  • Figure out how to run tasks to ground- so that you leave nothing un-done.
  • Make your work as concise, thorough, and on message as it can possibly be.
  • Solicit the opinions of other people in your office (and outside your project team) to provide feedback and input (something your boss might not have time to do).
  • They pay attention to their peers, and actively look to learn from them. They also share what they know without hesitation.
  • They have engineering “moxie”- a willingness, and interest in doing a great job.

This is not traditional leadership. As an entry level employee- or anyone working as an individual contributor, the job is only mildly about delegation, or brainstorming, or innovating. It’s about making things happen.  As I slowly move into a position of delegating more, these lessons remain just as important to set others up for success.

 

Postscript:

A note on “moxie”- it’s the thing that really sets people apart, and deserves more explanation.
>Find something you are passionate about and think that you want to become an expert in. Realize that your time in entry level positions is the bread and butter of your experience- the foundation of your expertise. Get as gritty about it as you can- learn every part. For me in HVAC, that was drafting and installing, not just ideation and calculation. The earliest investments pay the biggest dividends- but they only pay if you stick with it for a long time. If you are trying out different things, do them as fully and deeply as you can- if they aren’t for you, the process will still benefit you when you finally find the thing you are supposed to do. I started my career in this field, but it took me the first 8 years to really feel passionate and invested in it. Had I been more intentional in thinking about the field as a craft and trade, and then more intentional about investing deeply, I would have done much better,  much more quickly.

Conferences

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One part of my job I really enjoy is attending professional conferences. As an engineer, this might make me somewhat unique. I am no longer surprised at the value of thoughts and ideas I get from even unlikely conference presentations.

One fact of business: it is really expensive to have staff travel to conferences. Yet, I have regularly seen professionals at conferences who seem to have little desire to be there. Checking Facebook during conference sessions, smoking alone during networking hours, typing away on a laptop during meals are pretty clear indicators that you have more important things to do. Companies send people to conferences because they know there are untapped gold mines, and these events are often the best way to find them.

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Last week I got to represent McKinstry at the US Green Building Council Wyoming Chapter conference in Jackson, Wyoming. A quick account of the costs:

  • Airfare (rt): $460
  • Shuttle to/from airport in Seattle: $80
  • Meals & drinks with peers: $80
  • Presentation prep time: 16hrs @ $75/hr (wholesale cost rate) = $1200
  • Travel time: 12hrs @ $40 = $480 (I use a blended rate cost, because unlike McKinstry, most firms I have worked for will require you travel on your own time, rather than company time- primarily because it is cheaper for the company)
  • Participation time: 16 hrs @ $75, $1200
  • Shuttle to/from airport (in Jackson): $160

———

Total: $3,660

You could re-do the math using my “opportunity cost” hourly rate of $125/hr (assuming I would spend all of the available working hours on full rate consulting projects), add the cost of actually attending (giving a presentation waived my registration fee), the cost of the hotel (again, included for fee as a speaker), and the cost of a few more meals (because I travel cheap and had friends to see), then the total cost balloons to $7,135.

If you don’t want to be there, then don’t attend. It’s too damn expensive.

That said, conferences can be intimidating and confusing for many people. Most of the advice I have gotten, and other blog fodder has either been inauthentic or too general. I’ve been told I do a good job of “working the room” at events- generating interest and finding opportunities. This is not purely a natural talent, nor in-authentic. Below are some specific actions to make getting value out of conferences a little easier.

Think of a question that you would like to find an answer to at the event. The best questions start with “how” or “what”- they are open ended to spur conversation. In Wyoming, one great question was “how do you retrofit an existing McMansion into something a millennial actually wants to buy?”

Stay mobile. You want to walk around the room(s) and meet new people. Don’t leave your laptop at a singular seat all day, or otherwise “lock” yourself into a location. Being around new people will inspire new conversations.

Exercise escaping dead end conversations. There are a few standard ways I make a clean break from a conversation that isn’t going anywhere. “I’d like to grab a coffee before the next session”, or “I need to move up so I can see more clearly” have worked well for me. If at all possible, do not use your phone as an excuse to break away.

Listen carefully to questions that other people ask- consider how you would answer each question (if you could at all). They can be great conversation starters after the session, and take some of the awkwardness out of starting a conversation with someone new.  Protip- people that ask good questions are most often the people you want to make contact with.

Do not make up numbers in order to sound smart or retain your authority. Most smart people can tell, and you’ll lose your credibility immediately. Being vulnerable enough to admit your knowledge gap is attractive, and it gives you a great reason to ask for someone’s card and follow up with them.

Do not bother making relationships with people that you really do not enjoy interacting with. You will only do really valuable work with people that you trust. You will never build enough report with people you don’t like to get to the point that you trust them.

Even if you feel the focus of the event is outside of your scope, realize that the organizers are probably people that you want to have relationships with.

Talk to your competitors. Get to know the people that also do exactly what you do. They may compete with you sometimes, but chance are you can learn from them, and you never know when they may be able to help you…

Follow-up is king. If you follow-up on your conference contacts with something of value, you’ll instantly stand out amongst your peers.  At the very least, connect on LinkedIn, but add a note to remind someone where you met them. I usually write one interesting fact, question, or follow-up task from the conversation on each business card I receive.

Don’t get on the plane home until you’ve written down 5 things you learned or are thinking about because you went to the conference.

Conferences are great professional practice in telling your story and sharing why you care about what you do (if you really don’t care about what you do, that’s a different issue). Write down a few different ways to introduce yourself and practice them through the day.

Notice and take notes on the references and examples that people cite- they’ve often done a lot of research for you. One example I noticed: the much regarded NREL net zero energy research lab is the least energy efficient shape possible (from a heat loss standpoint):

nrelrsf

Arrive alert and stay engaged. Don’t work on regular work during conference sessions. Be present. Ask questions. Stay away from your phone or social media. Enthusiasm is infectious- share it freely.

If you ever have the chance to be the closer (last presenter) at a conference, make sure that you cite and highlight what you learned in your closing presentation from the previous presenters that you watched. It’s classy, shows humility, helps other people relate to you, and does a great job of actually closing the conference!

Straight Talk on House Design

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Mast and Co Missoula, energy efficient building,Photo Courtesy Mast and Co. Builders. Damian and Chris are consummate, intelligent craftsmen and their work is the embodiment of style, performance, and integrity.

A few days ago, I was talking to a colleague and friend- she is working on a cabin design for her family. Knowing my background, she asked for some advice and questions to ask to get what she wanted. Energy efficiency and “not doing stupid shit” were top priorities. Our conversation boiled down to my top tips for the design of new custom homes. I was lucky to work with a handful of people in Missoula that taught me a lot*.

Off the top of my head, and not listed in order of priority or importance:

1)      Pick a budget and get your architect and contractor to agree. As the owner, do not let yourself push over that budget with last minute additions. Ultimately, the architect’s job is illustrate the dream you’ve described to them, the contractors job is to put a price on that dream. The rude awakening can derail the best of intentions.

2)      Optimize your window package. Most likely, you will only buy windows once in the time that you own the house. Some rules for getting the best window package for your dollar: no single windows larger than 25s.f., no SDLs (simulated divided lights), no double hung or single hung, and minimize the number of operable windows. Do this carefully and cut 30% of the cost out of your window package. In almost every climate zone, triple pane windows will increase the comfort of your home more than almost any other thing (see item #10).

3)      Site work is expensive. Single story footprints are generally more expensive than double story footprints for the same area of floorplan. Simple footprints are easier to construct and inherently energy efficient.

4)      I don’t like basements or crawlspaces, even though they are convenient for utilities. If you can afford it, build slab on grade or on stilts.

5)      Savvy HVAC salesmen (and everyone else) will ask you “how energy efficient” do you want to be? I used to be one of those folks, and I hated asking that question. It’s like picking a car: is this house like a Camry (25 MPG) or a Prius (50 MPG)? Getting a Prius is not all that hard, but doing much better probably is.

6)      Durability is a hard quality to estimate. Almost every component you pick for a home contributes to the overall durability (and related maintenance costs), and the durability aspect is frequently overlooked. Siding, interior trim, windows, doors, and flooring are all common materials that wear out faster than many owners appreciate.

7)      There is a fallacy that “radiant floor” heating systems are more efficient than forced air furnaces. A well designed high efficiency furnace + HRV system is the simplest, most efficient, lowest cost way to comfortably heat a house. Radiant systems can end up with cold spots, are slow to heat up (like when you come back from a weekend away) and you have no option for cooling or proper home ventilation (which is essential if you want good indoor air quality and good energy efficiency).

8)      Don’t put in a fireplace, wood stove, or even gas insert fireplace. Wood burning fireplaces release all kinda of toxic stuff in your house, actually suck warm air from your furnace out the chimney, and don’t really emit that much heat to a space. Gas insert fireplaces are somewhat better, and contractors tend to charge an arm and a leg for them.  Put in some nice landscaping around a cool outdoor fireplace. Costs half as much, is twice as safe, and gets people out of the house.

9)      Especial in maritime climates, use a liquid applied WRB and a rainscreen siding detail. Ask your general contractor questions about building science, and their experience with different types of construction (have they ever done a house with ICFs, strawbale, double stud walls?) The best ones have often tried a lot of stuff, and they can tell you what they learned. From the get-go, pick the architect and contractor that you are most willing to have hard conversations with because you will have them.

10)   Air sealing is as much about framing as it is about insulation. Poorly applied spray foam in a poorly framed house is more expensive, less efficient, and harder to fix than cellulose insulation in a properly framed house. Furthermore, air-sealing has the single biggest impact on comfort in your home, and has one of the biggest impacts on energy efficiency (especially if you are use more traditional, code minimum insulation package on the house). Insist on getting a blower door test for your home, whether or not your local code requires it.

11) Don’t be in a rush. Take the time to make a real plan that you are happy with. Especially for owners on their first custom home- it will take more discipline than is comfortable to work the plan.

12) I don’t like automotive garages directly attached to living space- too many nasty things associated with cars to have them directly connected to the house. 

13) Install a heat recovery ventilator. They will actually increase your home energy use, but they will also keep humidity reasonable, improve your air quality, and allow you to make other energy efficiency improvements as you go.

I’m sure many people will disagree or have additions. I hope to add links as citations to this piece as I am able. Feel free to post to comments, where I will feel free to moderate them.

*if you’re new here, I spent 3 years as a project manager for a residential specialty construction firm. You can read more of my pieces here (if the blog is still up)

Copyright Skander Spies, 2016

The Next Big Thing

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Slowly, the word has spread and I’d like to get ahead of it here. It’s time that Skander started getting after the next big thing.

Well. This is unusual.

Well. This is unusual.

It’s been a while since I’ve worn my suit for anything serious. I like to think I still look pretty good in it. On January 15th I tendered my resignation and drove to Seattle for back to back job interviews. It was the sort of affair that you would want to look good in a suit for.

I’ve limited some of the details that I have shared on this blog, but it became clear at the end of 2014 that my professional life needed to move in a different direction. Over the holidays, my family gave me another good nudge. I’m very grateful for the experience I’ve had working in Missoula, and hope to depart without burning any bridges.

I’ve wanted a Professional Engineers license for over 10 years. Since becoming a contractor, I’ve developed a much better sense of where I want to take my career, and the time-honored craft of professional engineering. I’ve also learned that the most fundamental tenant in all of business is trust- at the end of the day, when the client experiences what they thought they bought from you, you’ve built trust. That’s the key to success. I’m eager to fill out the holes in my professional skill set, and take my game to the next level.

The immediate hole is design. Design gives me the power and confidence that I can deliver on the vision of how I think buildings should work. I have a long term plan to make a big impact on the sustainability of our built environment- the sales and analysis work I’ve done in the past are only parts of the whole. I’m past the point now where I’m debating switching careers or “exploring”. It’s time to  plug the rest of the holes and get moving in a big way. That means letting go of the comfortable things. It means chasing the skills I don’t have, and finding next set of smart people to work with and learn from.

It was a rough drive to those first few interviews. Ellensburg, WA, 01.15.15.

It was not a comfortable trip to those first few interviews. Ellensburg, WA, 01.15.15.

Specifically, that means I am moving to Seattle. This past weekend I felt fortunate to accept an offer of employment from a firm that seems to value who I am, my somewhat non-traditional experience, and my intense drive towards sustainable design. The position is in mechanical design and I’m genuinely excited to get after it. I’ll have more to say once I actually start work on April 6.

I will miss the ever-loving shit out of Missoula, and Montana as a whole. While that won’t be fun, it is also worth mentioning that that my landing in Seattle will be significantly softer due to a really incredible woman I’ve gotten to know in the past few months. More on both of these items later.

The best cheap date in Seattle is on a ferry.

The best cheap date in Seattle is on a ferry.

 

Mine

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After nearly two weeks of amazing sunshine in January, the weather gods dumped 18 beautiful inches of powder on western Montana this week. Somehow, it even managed to come in wet and heavy, and end dry and light (the preferred configuration to avoid avalanches). After a challenging week of work, I was eager to shred hard.

We go up....

We go up….

Saturday was busy at the G-Spot off Lolo Pass. We were one of the first in, and the last out. Despite our big group, we made 5 laps under bluebird skies. The powder was every bit as good as hoped. Maybe even better. It was the first time I should have legitimately considered a snorkel as part of my kit. Anna, Molly, Larry, and Paul- thank you, ’cause that was a damn good time.

Larry gets the hang of his new Legend XXLs...

Larry gets the hang of his new Legend XXLs… note the powder contrail.

I know I’ve got the right friends when Super Bowl Sunday makes us all think that the ski resort will probably be empty. The snow report pushed us to Lost Trail (4/4 on excellent days there this year), and after Simon missed out on Saturday, he was determined to get it all. With 7 people, our mixed abilities spread us across the mountain. Simon, Trevien and I enjoyed some of the best steep powder I’ve ever had the privilege of skiing. These men make me ski better, and I’m thankful for it. We all re-grouped after lunch for a full afternoon of playing in the trees and coasting packed powder groomers. All smiles, all day.

Despite the great ski turns, I was still turning work stuff over in my head. I don’t like taking work home with me, and don’t like some of what’s looming on my professional horizon (while some other things are very exciting). Interestingly enough, the things that have nothing to do with work have been the most calming. It’s fun to realize that my skiing as important to me as anything else that I do- not because I bask in the glory of being a great skier, but simply because it fills me with pure, authentic joy. Dreading my week, I look back on the things that have stood out over the years. The places I’ve been and people I’ve shared them with seem far stronger than the immediate concerns about sales numbers or workflow planning.

Skiing.

Working with Dustin at the Commons.

The Muldrow Glacier.

Castleton Tower.

Running on the Chicago lakefront.

Playing great music.

I don’t mean to slam work, but when things aren’t going well I usually end up feeling like the world is going to end. It won’t. These experiences remind me why my life outside of work is just as important as my life at my desk. They are mine, and reflect a life that I am proud of. They remind me how capable I am. Of how rich my life is. I’m not sure why that’s so hard for me to keep in perspective, but it’s a perspective I’m determined to keep fighting for.

Saturday's perspective was bright.

Saturday’s perspective was bright.

The Power of Less

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Minor break in the alpine climbing action: yesterday evening I was honored to have the microphone on Montana Public Radio on behalf of AERO Montana and Energetechs Construction.  Writing this piece took quite a bit of time and thought.  While it’s not perfect, I feel like it’s pretty spot on, and a nice reflection on where my career in Montana has taken me.  You can listen on the MTPR evening edition podcast for September 12 (get it here). The text is below, and I would welcome comments and feedback in the comments.

2013 09 12 MTPR AERO Commentary

The Power of Less

This past May I attended two meetings full of contractors, architects, and planners. One was a “listening” session for the public to provide commentary on the adoption of a new energy code for all buildings in the State of Montana. The other was a public meeting of a group called the Northern Rockies Passive House Alliance. Both meetings were about energy conservation in buildings, but the tone between the two couldn’t have been more different. At the listening session, I heard a lot about why any energy code improvements at all will cause reckless damage to a fragile industry. Energy efficiency was seen as a threat, and I left feeling hopeless.

At the second meeting, I listened to two hours of healthy dialogue about the future of the building industry. About how a more aggressive voluntary standard can increase comfort and value for building owners, while drastically reducing energy use and innovating the marketplace. Here, energy efficiency was an opportunity, and I left feeling ready to get back to work. The new state code updates aim for a 15 percent reduction in energy use, the voluntary standard aims for 85 percent. While “green building” is all the rage, meeting these standards while maintaining the budget can be a daunting task that many contractors feel uncertain taking on.

I serve as the secretary of the board for the second group, the Northern Rockies Passive House Alliance. We are a collection of contractors and architects dedicated to promoting an aggressive building energy consumption standard called “PassiveHouse.” I also work full time as a project manager for Energetechs Construction, a small Missoula company that specializes in creating exceptionally comfortable and energy efficient buildings.

Construction wasn’t where I expected my career to take me. I finished university with a degree in mechanical engineering and got a job creating computer models of low energy use buildings. After a few years though, it seemed my models and recommendations never really hit home. There was a lot more to reducing energy use than computer simulations and consulting reports so I started looking for the missing pieces. I came to Montana by chance to attend an AERO annual meeting. I found Energetechs because they knew a lot about PassiveHouse, and I wanted more hands on experience. I joined their team and have gotten to work on some of the most energy efficient buildings in Montana.It has also brought me face to face with the gritty challenges facing the green building community.

If you lived in the 70s you probably remember some popularity around the term “passive solar design.” The idea caught on big in Germany, and scientists there formalized the design and construction principles into a rigorous standard that aims to reduce building energy use by 75-90% compared to the current American codes. PassiveHouse represents the practical limit as to how far it is possible to reduce energy use and represents the future of where our industry can go. In Montana, energy bills cost families and businesses $1.8 Billion each year. If we built every residential and small commercial building to the German standard, we would have $1.4 Billion to invest back into our communities.

Beyond the bottom line, the Montana landscape is one of the best parts of living here. The biggest environmental impact of a building comes from the energy it uses over the course of its lifetime. Delivering major reductions in energy use requires innovative design, more involved communication, and new methods and materials that can seem unnecessary or unfamiliar to many contractors. Cutting edge standards like PassiveHouse pave the way for new methods and materials in the marketplace- that’s why the team I work with practices our PassiveHouse knowledge on almost every project we do, even though we haven’t built a whole certified building yet. The practice has taught us how to meet other standards, like the newly proposed code, more easily and with less incremental cost. This practice has also shown us that every time we improve the energy efficiency of a building, we also improve the comfort, indoor air quality, and overall durability for the building owner.

The construction industry has always been required to adapt to new standards. The proposed energy code isn’t nearly so drastic as PassiveHouse, and it is a good step in the right direction. Better energy codes ensure better buildings for owners and investors, and a better future for our kids. Urge your representative to support the new code in the next legislative session- I am certain that more efficient buildings are an opportunity we cannot afford to miss.

In Missoula, I’m Skander Spies for the Alternative Energy / Resources Organization.  AERO has been linking people with sustainable agriculture and energy solutions since 1974. Visit us online at a-e-r-o-m-t.org.

Reaching for Home

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I went to my first ever city council public hearing tonight, because it mattered. I’m pleased to say that I was there to witness the Missoula City Council adopting a 10 year plan that targets the end of homelessness. I didn’t bring prepared comments, but found myself at the podium anyways.  While I enjoy public speaking, tonight was not one of my better performances.  I came home and organized my thoughts more coherently.

To the Missoula City Councilmen&Women

“As we talk about long-lasting affordable housing, I feel compelled to talk about long-lasting affordable buildings. Worthy visions of affordable housing solutions have time and time again been implemented as low-cost construction projects resulting in housing that is of low value to both the occupants and the surrounding community.

Montana state codes are deficient in addressing ventilation standards that support occupant health, these codes do not reflect the modern state of energy efficient design and construction (leading to high energy bills for occupants), and these codes do not encourage the use of sustainable, durable materials.

As a contractor, I am certain that we can do better.  I urge you to forego many of the often repeated assumptions in building design.  Challenge your working group, design teams, and fundraising teams to strive for more than code minimum construction. Consult with design experts that truly believe in your goal of sustainable housing, and have demonstrated it in their own work. Developing cost effective, durable, and low energy use buildings demands rigorous dedication to these goals, from the beginning of the fundraising process to the moment we hand keys to a tenant. I believe that sustainable buildings are instrumental in providing sustainable housing. I am proud to be part of the the community that is willing to take this on, and eager to help see this vision through.”

There it is.  Let’s get to work.