Core Beliefs: Chapter 6: Changes

Chapter 6:  Changes

Matt was at the office well before 7:00 a.m. on Monday. At about 8:45, he called Lucy Olenrude, his administrative assistant, to his office.

“Lucy, we’re going to be making a number of changes, and I need your help.”

Lucy raised an eyebrow.

Matt dictated, Lucy wrote, as he reviewed the preliminary outline for the Employee Stock Purchase Plan. He handed her his draft, asking her to clean up the grammar.

As Lucy scanned the document, she continually glanced up, her normally smiling face scrunched in bewilderment as if saying, “Who is the man in the chair behind the desk?”

“You’re really going to do this?” she expelled.

“Yes,” Matt cast a friendly smile her way, “and a lot more. Lucy, keep up with me because we’ve got a lot to do.”

Lucy asked when he needed the stock letter completed.

“In the morning will be fine.”

Matt pulled his calendar from the briefcase. “I want to schedule these meetings. These are to be a priority for everyone on the attached list. They will start next Monday through Friday, one company a day in the order as listed.”

He passed her a handwritten sheet with the schedules.

“Here’s a list of the people who are to attend each of the meetings.”

Two additional pages were placed in Lucy’s unsteady hands. Matt made sure she had caught up on her notes before continuing.

“Lucy, all other meetings during this period should be canceled. Finally, the meeting subjects are confidential, and I will inform each company of the purpose of the meetings at each one.” He looked into her eyes. “One more thing, I really need you to go with me to these.”

“Is that all, sir?” Lucy asked hesitantly.

“For the moment, but don’t be surprised if I have more.”

***

Lucy got up, returned to her desk, and sat for five minutes staring at the sheets Matt had given her along with her notes. She struggled to comprehend what was happening. “All this, so suddenly, it’s not like Mr. Lehman. Is he sick? Has he burned out from all the hours? Why would a man sell his life’s work?”

After two false starts trying to type the stock document, she stepped into Mr. Lehman’s office, the door open, as usual. Lucy gently knocked on the doorpost.

Matt looked up, “Yes, Lucy?”

“Sir, I don’t mean to pry, but I’ve worked for you for a lot of years, and I’m worried.”

“About what?” Matt smiled.

Lucy stepped in a little, “You, Sir. Are you alright? I mean, you don’t have cancer or something, do you?”

Matt laughed, “Lucy, come in, close the door, and sit down.”

She was timid but did as instructed.

“My health is perfectly fine. I have, however, made some decisions this past week that will let me pursue other things of interest.”

He smiled as she gazed into his eyes. Clear, gray-blue eyes, “Lucy, I will still be around and very much a part of things, but I also have something new I want to do. Now, does that help?”

She was embarrassed, nodded that she got it, and stood to leave.

As she opened the door, Matt said, “Lucy, these changes won’t affect you. You are still the one I’m going to depend on to get things done.”

She again nodded, feeling very much relieved, and returned to her desk.

***

 Matt was confident that she would send out the meeting notices by day’s end and complete the employee stock proposal by morning.

Throughout the week, Matt and Lucy detailed the meeting documents. The talk about the meetings buzzed through each company. Matt handled business as usual, avoiding any reference to the meetings.

He had several calls to make, including a follow-up to the conference call he had missed with Wheatley University. Dialing Marcus Corush at Inter-Mol, Matt asked how the initial conversation had gone, apologizing for not being available.

Marcus relayed that the call had worked out fine. The head of the Department of Neurology was writing specifications with their expectations for the system the University was seeking. Excitement filled Marcus’ voice as he recapped the concept of an imaging system to monitor activity throughout the brain.

Matt asked who Marcus had spoken with and was surprised when Marcus responded, “Dr. Ling Woo Chang.”

‘What a small world indeed,’ Matt thought.

He asked Marcus for the university’s contact info, commenting that he would like to call and apologize for missing the call. After getting the information, he thanked Marcus for his efforts.

Thursday morning, Matt placed a call to Chris Martin.

“Good morning, sir?” Chris’ voice had a questioning tone. “Are we okay today?”

Matt chuckled, realizing Chris might have second thoughts about going ahead with the new venture. “We are doing quite well,” Matt chuckled, “full steam ahead.”

“Good to hear that,” Chris sighed.

“Chris. I had a thought last night that things might take a while to get in place and, under the circumstances, wondered where you might be able to be most productive.”

“Maybe we should get together and see where we’re at? When do you think it would be convenient?” Chris asked.

“Maybe we could do dinner tomorrow after work, maybe at a restaurant? My treat and, of course, see if Charlotte and the kids want to come. We can discuss this afterward.” Matt smiled, remembering the wonderful time he’d spent with Chris’s family.

“I think that would be fine,” Chris said, “but with the kids, let’s not make things too fancy.”

“Chris, you pick the place and time, and I’ll be there.”

“Let me call Charlotte. I’ll email you.”

Next on Matt’s agenda was the call to Wheatley University. Matt had Lucy contact Wheatley and verify a time for Dr. Chang to take his call. It took Lucy a couple of hours to get things coordinated. The university had protective layers in place to discourage unscheduled calls to upper-level staff, and this was particularly true of department heads. Lucy eventually advised that Dr. Chang would be available at 2:10 p.m. Central Daylight Time and had a direct number.

At 2:10, Matt picked up the phone and placed the call. Dr. Chang answered. Because of her name, he had expected an accent, but there was none.

Matt introduced himself.

“Dr. Chang, I want to apologize for not being available last week and to let you know I am extremely interested in the project you are proposing.”

“Mr. Lehman, I can assure you that Mr. Corush represented your company most handsomely. I am very impressed with your experience in this field and the proficiency of your people.”

After discussing the overall scope and timetable of the project, Matt was confident that things could go forward smoothly. It was at this point that he decided to bring up his correspondence with Dr. Kumar.

“Dr. Chang, I had an opportunity to read a paper published by Dr. Suchet Kumar regarding the possibilities of a DNA variant, regenerative DNA. Are you familiar with Dr. Kumar’s theories?”

“Though genetics and biomedical science are not Dr. Kumar’s domain,” she responded quickly, “it is enough for me to say that many of his ideas and propositions are fundamentally sound. As of yet, we don’t have a basis of information or technology to test or evaluate them, except in hypothetical terms.”

“I did recognize that,” he replied. “I asked Dr. Kumar about applying regenerative DNA with regard to brain function. He responded and forwarded a copy of a paper you had written where new brain activity appeared in previously inactive cells in compensation for illness or injury.”

Dr. Chang was silent for a moment. Matt was concerned that he had overstepped in the conversation.

“I am flattered that you read my paper,” she said, “and equally impressed that you and Dr. Kumar have corresponded. As I said, Dr. Kumar does not specialize in my field. He has, however, exhibited unique insights and viewpoints, which I and many of my colleagues have found intellectually stimulating and worthy of discussion.”

She paused before continuing, “I think it’s more important that you have asked a question that has been on my mind for some time. We hope the proposed development of research equipment with your company will enable us to investigate how the brain compensates and establishes new functionality. Honestly, I find this almost too much of a coincidence.”

Once again, Matt was concerned that Dr. Chang harbored a suspicion, so he interrupted, “Dr. Chang, I think it is important that I clarify a couple of things. My correspondence with Dr. Kumar consisted of my original email and his response, including your paper as an attachment. We have not had any additional contact. My primary reason for bringing your paper up was to expose my ignorance.”

Matt took a deep breath. “Though I followed much of what you said and the related logic, I often found myself unable to grasp certain aspects. I must admit your terminology hampered me. Particularly, I am unfamiliar with many of the acronyms and initialisms used in referring to conditions, treatments, and other elements in the paper. I was hoping you could point me to a good medical reference or dictionary of terms that would help me grasp these.”

Dr. Chang began laughing. Matt realized he had made a fool of himself and started thinking of how to extract himself from this mess.

  “My dear Mr. Lehman,” she spoke after several seconds, her voice warm and friendly, “please forgive me. You see, in my profession, we so often find ourselves dealing with enormous egos. Often, we deal with colleagues trying much too hard to impress, even to the point of being foolish.”

She spoke softer, “It is indeed a privilege to meet someone who is seeking knowledge openly, honestly, and without pretense. It is a joy to talk with you and realize that there are true hearts that care more about learning than positioning themselves for promotion or recognition.”

Relief flowed through Matt. He let out an almost audible sigh.

“I would be glad to explain those things you have questions about,” she said. “Why don’t you mark up the paper and send it with notes to my email? I will do my best to help.”

Matt, thrilled by the offer, thanked her sincerely.

“Dr. Chang, if you ever want to visit our facilities, it would be my privilege to host you, all expenses covered.”

Matt hoped that acceptance of travel expenses would not violate University rules, but he remembered most universities didn’t forbid this type of activity.

Dr. Chang thought visiting would be an excellent idea and believed a meeting to review the project specifications would be a perfect time for a visit.

They made a few more comments and were about to say goodbye when Dr. Chang added, “I feel more assured that our discussion and meeting were not a coincidence and that there is more at work here than either of us may realize. I truly look forward to the opportunity to meet you.”

They said their goodbyes, and Matt hung up the phone.

Later in the afternoon, Matt checked his email and saw Chris’s message.

“There is a little Italian restaurant about halfway between the office and our house, Chris sent. “The food is great, and the setting is casual, family-friendly.”

The message included the directions and a note to arrive around six in the evening.

“See you at six tomorrow,” Matt keyed back.

On Friday, Matt had the usual morning staff meeting. A couple of staff members asked about the mysterious Monday meeting. Matt cut the topic short with,

“That’s Monday, not today.”

Once the meeting ended, Matt and Lucy sat down to check the meeting booklets. All seemed to be in order. They boxed the documents and locked them in a storage closet in Lucy’s office.

Lucy and Matt went over the schedule for the following week.

He stayed at the office working until the time to meet Chris for dinner.

Impulsively, Matt pulled up his email, found Dr. Kumar’s address, and composed a thank-you note for Dr. Chang’s paper. He advised that he was working on a project for the University and Dr. Chang, and they had enjoyed a good conversation.

He asked Dr. Kumar if there might be an opportunity to meet and discuss another issue more directly related to physics. In the back of Matt’s mind, he already had a feeling that Dr. Kumar might be able to help Chris with some answers about the mysterious occurrence in the lab.

After transmitting, he checked his incoming mail and cleared away those that needed a response. Glancing at his watch, he realized it was time to meet the Martins.

Chris and his family were at the restaurant when Matt arrived. The kids, Janet and Jacob, seemed genuinely excited to see him, and this cheered him. They ordered, and everyone enjoyed a good meal accompanied by good conversation. As promised, Matt picked up the check and then headed for the Martins’ home.

It only took a few minutes for Matt and Chris to settle into the study while Charlotte coaxed the kids to their rooms.

Matt reviewed his week’s activities and confirmed he was ready to move forward with the meetings and the stock sale to raise capital. He updated Chris on the search for a place for the new lab, but had no answers yet. Other minor things finished Matt’s report.

By that time, Charlotte had joined them, and Chris gave his update. The lab at Cor-digital had been stripped, and all items had been shipped to a bonded warehouse in Kansas City, Missouri. The lift table had been ordered and should arrive in the coming week. They would let a contract in two weeks for installation. Chris also relayed that he had found sources for several of the items on his list. He had not contacted anyone about pricing. Just confirmed availability.

With this out of the way, it was time for new business.

“Chris, I think it may be a few months before we are ready to move out on our own. The time to facilitate the stock sale will be considerable, and we will need to make some adjustments as we work through any bugs in the new management arrangements. My question to you is, how much can you do on the adventure until we get the equipment and facilities?”

“It’s limited, but still, there are a lot of things I could be chasing down. Plus, there’s an awful lot that I need to be studying in the areas of physics and quantum mechanics.”

“How much of your week can you tie up on this?”

“Probably about 20 to 25 hours a week.”

Matt was thinking as Chris was talking and interrupted, “Chris, I’ve got a thought and want to see what you think. We know we’ve got to find someone to replace you at Cor-Digital, and there is no one better to interview and select that person than you. I would like to see you stay and start the process of finding a replacement. Doing that won’t take all your time and will let you continue with your research. I’m sure some of the other R&D projects can be delegated until we get a new person on board.”

“I think that could work," Chris said. "Heaven knows I don’t have the resources here at home like I have at Cor-Digital.”

“I can send a memo that I am commandeering you for a special project and that you will have limited availability. That will give you a level of autonomy to do as you need.”

Chris was ready to go.

Charlotte asked if there was anything she could do.

Chris couldn’t think of anything, but Matt did.

“Charlotte, I need you to find out as much as you can about a man.”

Charlotte was a little shocked, but let Matt continue.

“His name is Dr. Suchet Kumar. He is a physicist in India. I have had correspondence with him and believe he might be a help to us, but he mustn’t know that we are seeking information about him.”

“What kind of information are we looking for?” she asked.

“Let’s look at things that give us an understanding of his knowledge, background, and most of all, his character. Dr. Kumar is professionally published and should show up on search engines on the internet, but let me emphasize, he must not know that we are looking into his life.”

Charlotte gazed at Matt. “I understand and will start in the morning.”

They said their goodbyes, and Matt headed home. He realized that the coming Monday was going to be the start of both a significant transition and turmoil, so he thought it wise to check in with his chief counselor and best friend, his brother, Joe.

On Sunday, he called, and Cynthia, Joe’s wife, answered.

“Hello, Cynthia,” Matt said.

She had to think for a second and finally recognized the voice on the line. “Hello Matthew, how are you?” Her voice was happy and energetic.

“I’m doing fine. How are you and the boys?”

Cynthia started immediately, recounting the past week. Doug had started a job programming a computer database for a small manufacturing company and really enjoyed the work. Charles was still at school and would be home for Joe’s birthday. Then she asked if Matt was coming to Joe’s party. He confirmed he was.

They chatted for a minute more before Cynthia said, “I’m sure you didn’t call to spend an hour on the phone with me. Hold a minute, and I’ll get Joe.”

A few seconds later, Joe came on the line. “This has to be a record for phone calls in a month.”

He and Matt both laughed, but Matt knew it was sadly true.

“Matt, how can I be of assistance?”

“Can’t a brother just call to chat?”

“He could, but it would raise my suspicions.”

Matt realized he rarely ever had ordinary family conversations with Joe. He stayed away from reminiscing, knowing that even now, a dozen years after losing Marylyn, he still couldn’t talk about those times.

“Well, Joe,” came Matt’s voice down the line, “you really know how to bum a guy out, but I have to admit it’s true. I called for your business advice again.”

“Big brother, you know I am always glad to talk to you about your business dilemmas, but I want you to know that I care about a whole lot more than how your companies are running. You are my one and only big brother, and you matter more to me than I can fully express. I’m not lecturing, simply saying I really care about you.”

Several seconds ticked past.

“Joe, I know I’m not over losing my girls. I hope someday to be able to put it all behind me, but right now, this is how I deal with things.”

“I know,” Joe said, “but I want you to understand I’m here to help whenever you want, in any way, at any time.”

Matt understood where Joe was coming from and truly appreciated the effort.

Time to get down to business. After all, Joe was right; that’s why he called.

“Okay, Joe, as usual, you had me pegged. I want to go over a couple of things from our last conversation.”

“Talk to me.”

“I’m starting a series of meetings tomorrow and hope to accomplish two things. The first step is to reorganize the staff to operate the businesses, freeing up more of my time. I think I have that covered. The second is the introduction of the Employee Stock Purchase Plan. I have the concept for the plan but not the details, and I’m concerned that questions will come up that I don’t have answers for.”

Matt rambled through the various thoughts regarding the plan, and finally, Joe interrupted.

“Matt, hold on a minute. You are getting the cart way ahead of the horse. Do you have last year’s tax returns for each company?”

“Yes, they’re available in the office.”

“Have your companies been profitable this year?”

Matt answered that they had.

“Do you want to sell your stock at its highest value, or do you want to raise the most money?”

Matt thought this was a silly question, then recognized the insight in Joe’s statement.

“Joe,” Matt said, “I think initially I want to generate as much cash as possible.”

It was silent on Joe’s end for a moment.

“Matt, I’ll get the documents ready. I suggest you keep it simple at the meeting and tell the staff that if there is interest, you intend to have an initial offering based on the stock values at the close of business last year. Later, the stock price would convert to its current value, and any subsequent sales would be based on the current value. You will need to engage your accountants and have a CPA certify both the initial and monthly values."

“By the end of next week, we can have packets for the employees and staff. I can coordinate with your accountants to structure the payroll withholding and other legal elements to keep you in compliance.”

“Damn!” Matt said. “I have got to have the smartest brother in the world.”

Joe laughed too hard to respond. He finally controlled himself enough to say, “Matt, I need your accounting people at each company to provide me with last year’s tax returns and the year-to-date P&L statements and balance sheets.”

Matt made notes and thanked Joe for the advice.

Joe kiddingly asked where to send the bill and was caught off guard when Matt started giving an address over the phone.

Joe said he was kidding, but Matt said he was serious. This time, Joe was going to be paid at his full rate.

They were about to hang up when Joe said, “I have one more thing for you.”

“Go ahead.”

Joe paused for a few seconds. “I may have a lead on a missile silo.”

Matt held his breath, barely believing what he’d heard.

“Go ahead?”

“This is all preliminary, but one of my partners is handling a litigation for a wheat farmer in central Kansas. I am still confirming details, but I think there is a Titan II site on the property, and the farmer needs some cash fast. I’ll confirm things once the rest of the documents arrive.”

Matt sat stunned, silent.

“You change your mind about the silo?”

“NO! Oh no! Joe, you are a marvel. I can’t express how important this is. If you pull this off, I will be totally and forever in your debt.”

They said their goodbyes, and when they hung up, Matt was shaking. “Wow!” was all he could say.

Matt’s Monday morning routine was the same as always, and he arrived at the office at 7:25 a.m.

Lucy was waiting. They chatted about the format of the meeting and the order of events. It appeared the only thing left was to find out what Human Resources was bringing in for lunch. The meeting would start at 10:30 a.m. and run until 1:00 p.m.

On his morning walk around the plant, he could tell things were a bit subdued. He probably should have set an earlier time for the meeting. Returning to his office, he allowed a few minutes of quiet, sitting, thinking about the hours he had plowed into these enterprises. For a moment, he had an urge to hold on to it all, but after a few minutes of panic, he realized moving forward was the right choice. After a deep breath, he was at peace.

Lucy knocked on his doorpost at 10:27.

“Everybody’s in the conference room and ready to go.”

Matt picked up his notepad and followed Lucy down the hallway. He could hear the chatter of voices as he approached the room, but as Lucy walked through the door and he followed, all fell quiet.

“Good morning, ladies and gentlemen,” Matt said.

Many in the room responded in kind. Matt went to the head of the conference table, noting that Lucy had name placards for everyone.

Matt laid down his notepad and began, that the dies and gentlemen, I know that this meeting is a bit unusual, but I believe you will find it beneficial and meaningful.

“Let me start by saying that the last twenty-five plus years of my life have been immersed in working with many of you. We have shared the pursuit of making this company a place that focuses on quality in every aspect, not only our products but also who we are as people and how we treat one another.”

He looked about the room and realized that many of these people had truly been with him from the start.

“For me, the time has come to make some changes. I have come to realize there are some things I desire to do while I have time. These will not keep me from participating in operations, but they will mean that I will be less available than in the past. Therefore, the first part of this meeting is to present the method, structure, and format for how this company will be operated.”

Turning to Lucy, “Will you please pass out the booklets, and I am sure some of these gentlemen will gladly help?”

“Please note that the booklets are person-specific, and your name should be on the front.”

Matt waited for each to get their booklet and for everyone to be seated before he continued.

“The first section is universal and will apply to not only Lasticorp but also all the other companies.”

They reviewed the functions and duties of each area until all aspects of the new management structure had been covered.

As they ended that section, Matt said, “If any of you cannot work under this structure, I need to know by the end of today.”

There were no questions and no murmurs, which Matt took as a good sign.

“The next order of business is substantially different.” Matt continued. “As most of you are aware, I am the only stockholder. I admit that even I am amazed at how profitable we have been over the years. So, what I propose is to offer a percentage of the company stock for sale to employees.”

Matt was waiting for a response. It started on one side of the table. First, one set of hands began clapping, joined by others, and in seconds, everyone in the room was standing, applauding, and cheering. Matt was emotionally moved.

He had to get back on track, but he felt he had his answer. He smiled, thinking about what Chris had said about folks fighting over shares.

He motioned for everyone to sit.

“I guess that means you think it’s a good idea?”

Laughter and affirmations followed, so Matt went into the overview as Joe had instructed him.

They wrapped the meeting at 12:10 p.m., and the caterer brought in the food. Everyone stayed in the room, eating and talking about what a great day this had been and how exciting it was going to be.

‘I should have done this ten years ago,’ Matt thought. But he knew, ten years ago, he needed the companies more than they needed him.

Just before breaking up, Roger Pullman, VP of purchasing, asked, “When do the additional management responsibilities go into effect?”

The room got quiet. “Your task and responsibilities start immediately. I ask you to work in your respective departments the rest of this week, bringing them up to speed, and then we will effectively initiate full operations next Monday. I will be out of the office this week, attending meetings with other companies. They will be operating under similar guidelines.”

A few looked stunned over the speed of implementation. Matt was sure that they would have to deal with the pitfalls and problems sooner or later. In his mind, it might as well be sooner.

“Lucy will send a notice of the first management meeting,” he said, “and if a council meeting is needed, then it will be called through Human Resources.”

With this, the meeting officially ended.

The rest of the week had similar results, and as each meeting progressed, Matt felt better about selling off stock. He sensed his employees were as interested as he was in the company, and now, with a stake, they were going to do everything possible to contribute to its success.

Arrangements had been made for Joe to receive the accounting documents, and the stock purchase agreements were to be issued in October.

Joe also came up with a way for employees to make a non-payroll stock purchase to take advantage of the lower initial price starting November 1^st, with payroll deductions starting November 15th.

The only deviation to the meeting routine was on Friday at Cor-Digital, where Matt advised that he was tasking Chris with a special project, and a search for a new R&D VP would be undertaken.