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Electrical Contractor &
Management Training Program



   Sea
  Freight
 Custom
 Clearing
Forwarding
Introduction                                      Electrical Contractor &
                                              Management Training Program


              Industry
               IBEW Inside Wireman Card #D830556 - 1987
               IBEW Local #48 Business Development - Member
               NJATC NTI Graduate - Instructor
               NECA EMI Graduate - Member Contractor (2002)

              Professional
               48 First™ Executive Director – Developer – Instructor
               Master Licenses Oregon – Washington – Hawaii
               Small Business Owner/Consultant
               3D Electrical Services - MPD Systems - Dutton Enterprises


              Education
   Mike        Masters Degree Business Administration (MBA)
               Bachelors Degree Business
Mike Dutton
Three-Step Approach for
 Sustaining Our Future                                 Electrical Contractor &
                                                 Management Training Program


  Step I – Recognizing the Urgency
  Step II – Understanding the Solution
    A. Leadership: MEI
       Member Empowerment at the Organizational Level
       –   Our Need for this Initiative
       –   Our Threats
    B. Membership: 48FIRSTTM
       Member Empowerment at the Local Level
       –   IBEW Locals - Implementation
       –   Member Concerns

  Step III – Call to Action!
       Program Sponsorship
       –   Empower Your Membership
       –   Regain Market Share
       –   Create Jobs
Organizational Level                                                    Electrical Contractor &
                                                                  Management Training Program




                              Step I


   Recognizing the Urgency
   “As the U.S. has been transformed from an industrial to a white
   collar, service and retail economy that is increasingly affected by
   globalization and competition from foreign nations, employers increasingly
   view representative unions as uncompetitive and inefficient institutions.”
                        Charles Craver, Law Professor at George Washington University
The Marketplace,
 Why Should We Care?                                                        Electrical Contractor &
                                                                      Management Training Program


• Globalization
   – It’s not just a Union vs nonunion battle
• Current U.S. Marketplace Trends
   – Flattening organizations
       • Innovation / Flexibility / Team Orientation

• Historical Industry Trends
   – IBEW: no direct connection to marketplace demands
       • Therefore, no competitive business model
   – Contractors: the only competitor’s for our marketplace
       • Good for established contractors, bad for industry
            – Established IBEW Contractors: Differentiation (Niche/Large Markets)
            – Nonunion: Price Leadership (small market)
       • Status Quo approach to changing market demands
            – Examples: Voice/Data, Solar PV, etc.
Our Urgency in a Nutshell                                   Electrical Contractor &
                                                      Management Training Program


• The Results
   – Established contractors: differentiated strategy
      • Future: STABLE Strategy supports market position
   – Nonunion: price leadership strategy
      • Future: STABLE Strategy supports market position
   – IBEW: No competitive strategy
      • Future: UNSTABLE Strategy does not support market position
          – Market share losses
          – Declining membership
          – No direct connection to the marketplace



      The IBEW is on a path to market irrelevance…
      We need to take control of our future NOW!
Strategic Opportunity                                                   Electrical Contractor &
                                                                  Management Training Program


   Licensed Electrician Distribution         Electrical Contractor Distribution
      in the Portland, OR Market                in the Portland, OR Market
           Union    Non-Union                        Union    Non-Union




                                                                 15%

                                49%
   51%


                                                     85%




    Consider the contractor to electrician ratios…
      •    Supports established contractor differentiation
      •    Supports nonunion small market leadership
      •    Points to our opportunity!
External Challenges                                                Electrical Contractor &
                                                             Management Training Program


Two revealing perspectives of our “job creators”
1. About 48FIRSTTM & Established Contractors…
  “While more union shops are good for all in the long run,
  most contractors will take the short term view.
  I can… foresee strong pushback from existing
  Union contractors – ie growing more competition.”
     …when asked why the dichotomy?

  IBEW and Contractor missions are NOT the same
     •   IBEW mission is for betterment of the worker/industry
     •   Contractor mission is for their best interest

      Then why do we depend on independent contractors
      to represent worker interests or elevate IBEW values
                      in the marketplace?
External Challenges                                                       Electrical Contractor &
                                                                    Management Training Program


Two revealing perspectives of our “job creators”
2. About 48FIRSTTM & IBEW Locals…
  “… getting union business managers to support starting
  businesses is a unique idea;
  it will require a mind shift that I think many cannot achieve.”
        …asked why?

  Same old strategies… new “global” marketplace rules.
        Labor – Government: Regulatory
        Business – Marketplace: Relevance
  “Given the statistics of job loss, decreases in the middle class and their spending power, and the
  systematic erosion of union influence and bargaining power, it is clear that globalization has had
  a much greater negative impact on unions and the middle class than politicians and other experts
  could have predicted.”
                                                                                  Student Researcher
Endorsement                    Electrical Contractor &
                         Management Training Program




              Tim Gauthier
              Executive Manager
              NECA
              Oregon-Columbia Chapter
Our Understanding                                  Electrical Contractor &
                                              Management Training Program




If we know that:
• Business entry is less sophisticated in smaller
  markets like residential and small commercial
• New nonunion entities initiate in these markets
• Nonunion dominates market share in these markets
• IBEW’s objective is to organize these markets
Our Duty                                 Electrical Contractor &
                                             Management Training Program




We could conclude…
That small markets are the breeding ground for nonunion
electrical contractors and therefore nonunion electrician’s…

   Therefore, we have a responsibility to enhance our
   approach to organizing these “battlefield” markets

              …however, we cannot win the battle over any
              markets if we do not understand its demands.
Internal Challenges                            Electrical Contractor &
                                         Management Training Program



 IBEW Threats                     Our Response
  • Fear of Change                    Courage
   • Complacency                       Action
    • Indifference                      Pride
    • Status Quo                     Innovation

          Do these threats and
       responses sound familiar?
                   They should…
     They’re what our IBEW forefathers faced
       when fighting to establish our rights.
Organizational Level                               Electrical Contractor &
                                             Management Training Program




                   Step II

  Understanding the Solution
     A. Leadership: MEI
       Member Empowerment at the Organizational Level
       » Our Need for this Initiative
       » Our Threats
MEI Introduction                                   Electrical Contractor &
                                                  Management Training Program



• Member Empowerment Initiative
  is MAI’s top-down complement
•   MEI objectives:                                    IBEW Members
    – Train & support members how to succeed in
      business by delivering value                          MEI
    – Cause new(er) contractors to seek our               Approach
      program
    – Change the paradigm for entry into our
      industry
    – Support growth, build loyalty, & spur             Marketplace
      innovation within IBEW membership
MAI Review                          Electrical Contractor &
                                      Management Training Program




• The MAI provides for a
                                         IBEW Values
  bottom-up organizing tool
• Objectives of the MAI:
  –   Target non-IBEW members                MAI
  –   Reduce composite rates               Approach

  –   Recapture market share
                                      Non-IBEW Members
  –   Create more job opportunities
MAI’s Complement                                     Electrical Contractor &
                                               Management Training Program



  IBEW Values




     MAI
   Approach
                                        A holistic approach
                                 where the focus of IBEW’s values
Non-IBEW Members

 IBEW Members
                   MAI + MEI = are transmitted through its members
                                 to deliver value to the demands
     MEI
   Approach                             of the marketplace.


  Marketplace
MAI’s Complement                                  Electrical Contractor &
                                            Management Training Program



  IBEW Values



                      With a sustainable direct linkage to the
     MAI
   Approach         marketplace, the IBEW can then establish a
Non-IBEW Members
                   value-differentiating model to compete with
 IBEW Members
                      the nonunion price leadership position
     MEI
   Approach             Support for this enhanced model
                       MUST come from IBEW’s leadership
  Marketplace
Organizational Level                                 Electrical Contractor &
                                               Management Training Program




                   Step II

  Understanding the Solution
     B. Membership: 48FIRSTTM
       Member Empowerment at the Local Level
        » IBEW Locals - Implementation
        » Member Concerns
What is “48 First”?                               Electrical Contractor &
                                              Management Training Program



                  “48First” Meaning:
                  Our “link” to the marketplace

The program emphasizes the
planning, knowledge, & skills
needed before entering a career
in business or management


48FIRST is a “ground-level”
          TM


program that provides a
comprehensive 48-hour training
designed for the needs of our members
Program Overview                            Electrical Contractor &
                                        Management Training Program




Training Course Highlights

• Topics that addresses industry best practices and
  specific business start-up concerns
• Program workbook and text book
• Hands on applications and examples
• Business development & planning resources
• Presentations by Industry Professionals
Program Break Down                                          Electrical Contractor &
                                                      Management Training Program




Training Program Logistics

• YOUR Local is the sponsor of the training event
   – Schedule program, advertise, set venue, collect, pay fees
• 40 hours/5-Days at your venue
• All program materials and collateral are included
• Class format:
   –   Theoretical & Practical Hands-on Instruction
   –   Professional Presentations & Consultation
   –   Lunch and refreshments included
   –   Homework
TM
The 48FIRST Program         Electrical Contractor &
                      Management Training Program




                  www.48FIRST.org
Local Launch Plan                                   Electrical Contractor &
                                                Management Training Program




Local Implementation Plan
• Target Market: New start-ups and established contractors
                    < 5-Years/$2MM Annual Revenues

• Phase I: Members interested in Business & Management
• Phase II: All members – provide access to the knowledge of the
            business of the industry – This will spur innovation
• Phase III: All Industry – by establishing a support system of
             trust & loyalty within the marketplace, all industry
             professionals will seek this training
How YOUR Local
        will Benefit                                Electrical Contractor &
                                              Management Training Program




By providing knowledge to the membership,
we all benefit:
• Top-down business development program
• Increase market share & jobs
• Build relationships, trust, and loyalty
• Reach members beyond the Union meeting
• Grow your own stable contractor base
• United approach to meeting market demands
Program Summary                                       Electrical Contractor &
                                                  Management Training Program




Program Objectives
• Target established contractors <5-years
• Grow a loyal IBEW contractor base
• Establish industry leading business development program
   – Encourage innovation within our membership

• Improve IBEW performance metrics
   – contractor participation in MAI
   – market share in under represented markets
   – number of jobs for electricians
Call to Action!               Electrical Contractor &
                        Management Training Program




          Step III

      Call to Action!
TM
Why 48FIRST ?         Electrical Contractor &
                Management Training Program
Administration                                Electrical Contractor &
                                               Management Training Program




Division of Responsibilities
• 48First
   –   Brand development
   –   Overall program administration
   –   Informational website and collateral
   –   Consultation
• Local Unions
   –   Support & Adoption of 48FIRST/MEI
   –   Encouragement & Communication: Website, direct mail, etc.
   –   Sponsor a Training Session!
   –   Booking Requirements
How to Sponsor a Class         Electrical Contractor &
                         Management Training Program
Call to Action!         Electrical Contractor &
                  Management Training Program
The 48 FIRST™ Video




      www.48FIRST.org
Q&A                                  Electrical Contractor &
                                       Management Training Program




QUESTIONS?




         The Electrical Contractor &
         Management Training Program
               www.48FIRST.org

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48First Presentation at IBEW's 9th District Progress Meeting July 2012

  • 1. Electrical Contractor & Management Training Program Sea Freight Custom Clearing Forwarding
  • 2. Introduction Electrical Contractor & Management Training Program Industry IBEW Inside Wireman Card #D830556 - 1987 IBEW Local #48 Business Development - Member NJATC NTI Graduate - Instructor NECA EMI Graduate - Member Contractor (2002) Professional 48 First™ Executive Director – Developer – Instructor Master Licenses Oregon – Washington – Hawaii Small Business Owner/Consultant 3D Electrical Services - MPD Systems - Dutton Enterprises Education Mike Masters Degree Business Administration (MBA) Bachelors Degree Business Mike Dutton
  • 3. Three-Step Approach for Sustaining Our Future Electrical Contractor & Management Training Program Step I – Recognizing the Urgency Step II – Understanding the Solution A. Leadership: MEI Member Empowerment at the Organizational Level – Our Need for this Initiative – Our Threats B. Membership: 48FIRSTTM Member Empowerment at the Local Level – IBEW Locals - Implementation – Member Concerns Step III – Call to Action! Program Sponsorship – Empower Your Membership – Regain Market Share – Create Jobs
  • 4. Organizational Level Electrical Contractor & Management Training Program Step I Recognizing the Urgency “As the U.S. has been transformed from an industrial to a white collar, service and retail economy that is increasingly affected by globalization and competition from foreign nations, employers increasingly view representative unions as uncompetitive and inefficient institutions.” Charles Craver, Law Professor at George Washington University
  • 5. The Marketplace, Why Should We Care? Electrical Contractor & Management Training Program • Globalization – It’s not just a Union vs nonunion battle • Current U.S. Marketplace Trends – Flattening organizations • Innovation / Flexibility / Team Orientation • Historical Industry Trends – IBEW: no direct connection to marketplace demands • Therefore, no competitive business model – Contractors: the only competitor’s for our marketplace • Good for established contractors, bad for industry – Established IBEW Contractors: Differentiation (Niche/Large Markets) – Nonunion: Price Leadership (small market) • Status Quo approach to changing market demands – Examples: Voice/Data, Solar PV, etc.
  • 6. Our Urgency in a Nutshell Electrical Contractor & Management Training Program • The Results – Established contractors: differentiated strategy • Future: STABLE Strategy supports market position – Nonunion: price leadership strategy • Future: STABLE Strategy supports market position – IBEW: No competitive strategy • Future: UNSTABLE Strategy does not support market position – Market share losses – Declining membership – No direct connection to the marketplace The IBEW is on a path to market irrelevance… We need to take control of our future NOW!
  • 7. Strategic Opportunity Electrical Contractor & Management Training Program Licensed Electrician Distribution Electrical Contractor Distribution in the Portland, OR Market in the Portland, OR Market Union Non-Union Union Non-Union 15% 49% 51% 85% Consider the contractor to electrician ratios… • Supports established contractor differentiation • Supports nonunion small market leadership • Points to our opportunity!
  • 8. External Challenges Electrical Contractor & Management Training Program Two revealing perspectives of our “job creators” 1. About 48FIRSTTM & Established Contractors… “While more union shops are good for all in the long run, most contractors will take the short term view. I can… foresee strong pushback from existing Union contractors – ie growing more competition.” …when asked why the dichotomy? IBEW and Contractor missions are NOT the same • IBEW mission is for betterment of the worker/industry • Contractor mission is for their best interest Then why do we depend on independent contractors to represent worker interests or elevate IBEW values in the marketplace?
  • 9. External Challenges Electrical Contractor & Management Training Program Two revealing perspectives of our “job creators” 2. About 48FIRSTTM & IBEW Locals… “… getting union business managers to support starting businesses is a unique idea; it will require a mind shift that I think many cannot achieve.” …asked why? Same old strategies… new “global” marketplace rules. Labor – Government: Regulatory Business – Marketplace: Relevance “Given the statistics of job loss, decreases in the middle class and their spending power, and the systematic erosion of union influence and bargaining power, it is clear that globalization has had a much greater negative impact on unions and the middle class than politicians and other experts could have predicted.” Student Researcher
  • 10. Endorsement Electrical Contractor & Management Training Program Tim Gauthier Executive Manager NECA Oregon-Columbia Chapter
  • 11. Our Understanding Electrical Contractor & Management Training Program If we know that: • Business entry is less sophisticated in smaller markets like residential and small commercial • New nonunion entities initiate in these markets • Nonunion dominates market share in these markets • IBEW’s objective is to organize these markets
  • 12. Our Duty Electrical Contractor & Management Training Program We could conclude… That small markets are the breeding ground for nonunion electrical contractors and therefore nonunion electrician’s… Therefore, we have a responsibility to enhance our approach to organizing these “battlefield” markets …however, we cannot win the battle over any markets if we do not understand its demands.
  • 13. Internal Challenges Electrical Contractor & Management Training Program IBEW Threats Our Response • Fear of Change Courage • Complacency Action • Indifference Pride • Status Quo Innovation Do these threats and responses sound familiar? They should… They’re what our IBEW forefathers faced when fighting to establish our rights.
  • 14. Organizational Level Electrical Contractor & Management Training Program Step II Understanding the Solution A. Leadership: MEI Member Empowerment at the Organizational Level » Our Need for this Initiative » Our Threats
  • 15. MEI Introduction Electrical Contractor & Management Training Program • Member Empowerment Initiative is MAI’s top-down complement • MEI objectives: IBEW Members – Train & support members how to succeed in business by delivering value MEI – Cause new(er) contractors to seek our Approach program – Change the paradigm for entry into our industry – Support growth, build loyalty, & spur Marketplace innovation within IBEW membership
  • 16. MAI Review Electrical Contractor & Management Training Program • The MAI provides for a IBEW Values bottom-up organizing tool • Objectives of the MAI: – Target non-IBEW members MAI – Reduce composite rates Approach – Recapture market share Non-IBEW Members – Create more job opportunities
  • 17. MAI’s Complement Electrical Contractor & Management Training Program IBEW Values MAI Approach A holistic approach where the focus of IBEW’s values Non-IBEW Members IBEW Members MAI + MEI = are transmitted through its members to deliver value to the demands MEI Approach of the marketplace. Marketplace
  • 18. MAI’s Complement Electrical Contractor & Management Training Program IBEW Values With a sustainable direct linkage to the MAI Approach marketplace, the IBEW can then establish a Non-IBEW Members value-differentiating model to compete with IBEW Members the nonunion price leadership position MEI Approach Support for this enhanced model MUST come from IBEW’s leadership Marketplace
  • 19. Organizational Level Electrical Contractor & Management Training Program Step II Understanding the Solution B. Membership: 48FIRSTTM Member Empowerment at the Local Level » IBEW Locals - Implementation » Member Concerns
  • 20. What is “48 First”? Electrical Contractor & Management Training Program “48First” Meaning: Our “link” to the marketplace The program emphasizes the planning, knowledge, & skills needed before entering a career in business or management 48FIRST is a “ground-level” TM program that provides a comprehensive 48-hour training designed for the needs of our members
  • 21. Program Overview Electrical Contractor & Management Training Program Training Course Highlights • Topics that addresses industry best practices and specific business start-up concerns • Program workbook and text book • Hands on applications and examples • Business development & planning resources • Presentations by Industry Professionals
  • 22. Program Break Down Electrical Contractor & Management Training Program Training Program Logistics • YOUR Local is the sponsor of the training event – Schedule program, advertise, set venue, collect, pay fees • 40 hours/5-Days at your venue • All program materials and collateral are included • Class format: – Theoretical & Practical Hands-on Instruction – Professional Presentations & Consultation – Lunch and refreshments included – Homework
  • 23. TM The 48FIRST Program Electrical Contractor & Management Training Program www.48FIRST.org
  • 24. Local Launch Plan Electrical Contractor & Management Training Program Local Implementation Plan • Target Market: New start-ups and established contractors < 5-Years/$2MM Annual Revenues • Phase I: Members interested in Business & Management • Phase II: All members – provide access to the knowledge of the business of the industry – This will spur innovation • Phase III: All Industry – by establishing a support system of trust & loyalty within the marketplace, all industry professionals will seek this training
  • 25. How YOUR Local will Benefit Electrical Contractor & Management Training Program By providing knowledge to the membership, we all benefit: • Top-down business development program • Increase market share & jobs • Build relationships, trust, and loyalty • Reach members beyond the Union meeting • Grow your own stable contractor base • United approach to meeting market demands
  • 26. Program Summary Electrical Contractor & Management Training Program Program Objectives • Target established contractors <5-years • Grow a loyal IBEW contractor base • Establish industry leading business development program – Encourage innovation within our membership • Improve IBEW performance metrics – contractor participation in MAI – market share in under represented markets – number of jobs for electricians
  • 27. Call to Action! Electrical Contractor & Management Training Program Step III Call to Action!
  • 28. TM Why 48FIRST ? Electrical Contractor & Management Training Program
  • 29. Administration Electrical Contractor & Management Training Program Division of Responsibilities • 48First – Brand development – Overall program administration – Informational website and collateral – Consultation • Local Unions – Support & Adoption of 48FIRST/MEI – Encouragement & Communication: Website, direct mail, etc. – Sponsor a Training Session! – Booking Requirements
  • 30. How to Sponsor a Class Electrical Contractor & Management Training Program
  • 31. Call to Action! Electrical Contractor & Management Training Program
  • 32. The 48 FIRST™ Video www.48FIRST.org
  • 33. Q&A Electrical Contractor & Management Training Program QUESTIONS? The Electrical Contractor & Management Training Program www.48FIRST.org