Blinders On!

For GWC Warranty, it’s been an eventful first quarter, highlighted by the successful sale of our company to Stone Point Capital in February (see the press releases on the home page of our website.)  After a sale process that practically consumed the GWC leadership team for much of 2012, we’re eager to be re-focused on our mission of expanding our sales team and products to better serve our growing customer base across the U.S.

Just after the transaction was finalized and we turned to the daily tasks at hand, our VP of Strategy and Business Development, Mike Melby, coined a phrase that has become our mantra for 2013:  "Blinders On!"  No matter the distractions, we are committed to continuing our superior growth and profitability trends in 2013.

With 33 consecutive months of year-over-year revenue growth, record sales and all-time-highs in earnings, I’m pleased (and a little relieved!) to say that the company is already doing just that.
With used car sales showing sustainable signs of life, vehicle availability slowly improving and buyers flowing into dealer lots, it’s a great time to be in the auto space. Success will go to those who ignore the trivial and focus on the critical, to which we at GWC eagerly shout “Binders On!”

What Am I WATCHING?  A Change of Pace...

  

Although I love books, I’m also very passionate about music, movies and, of late, great television.  Over the past few years, we have been enjoying what many are calling “The Platinum Age of TV”, with amazing, cinematic-quality shows debuting with regularity.  Networks like HBO, AMC and Showtime have taken outsized risks and dared to be great.  In the process, they have minted passionate  viewers of shows like:
Game of Thrones (whose return last night I’m celebrating at the moment!)

Breaking Bad (can’t wait for the final 8-episode arc starting in July.  Who knew meth dealers could be so compelling?)

Boardwalk Empire (whose prohibition-era characters get deeper and richer every season)

Mad Men (for helping us view the ‘60’s through the jaded eyes of an advertising agency's various geniuses and miscreants)

Homeland (with its intense spin on the cloud of terrorism we live under in 2013)

Even Netflix has gotten in on the action, with its original series House of Cards tempting us to binge-watch 13 all-new episodes over a weekend. And, by streaming classic shows like Twin Peaks, Netflix is giving a new generation a chance to savor amazing treats from 20 years ago that laid the groundwork for today's classy serialized shows.

It is really exhilarating to have shows like this coming into our homes as virtual palate cleansers for all the mind-numbing reality TV that has erupted in recent years.  If you’re loving these shows like I am, congratulations!  And if you haven’t, I envy you a little:  When you watch your first episode of “Breaking Bad” or “Game of Thrones” your fresh eyes will be embarking on a thrilling ride.

Caffeine on the Cheap

I recently attended a conference with Mike and unwittingly provided him with a perfect anecdote for at least one dimension of how we run GWC. 

As a non-coffee drinker, I'm heavily dependent on a morning can of Mountain Dew just to get my internal engines started.  When we entered the breakfast buffet area at the conference, I grabbed a can of Coca-Cola from the beverage cart before heading over to the main meeting hall.  I had just popped open that Coke when Mike pulled up next to me and said "They must have known you were going to be here:  There's Mountain Dew in the back of the room."  Without thinking, I said, "Damn, I just opened a can of Coke - too late!"

Mike initially started laughing at me.  After all, it was just a can of Coke and any normal person would have simply discarded it and exchanged it for the delicious, tempting nectar of the gods that is Mountain Dew.  But when he got done ribbing me for my thriftiness, Mike noted that my instinctive reaction, to not waste the soda, is analogous to how we treat expenditures in our company:  We will happily spend money for a good return or to benefit customers, but we are exceptionally frugal when it comes to wasting anything.  I'm not sure exactly where that originated, but I suspect it was instilled in me by my parents who raised me with sensible Midwestern values they grew up on as children in post-depression America in the 1940's. 

Smart spending, no wasting, no matter how insignificant.  Probably not a bad perspective to have to drive the ultimate in efficiencies in any business. 

What Am I Reading?

If you're a music geek, you've no doubt harbored fantasies of being in a world-famous, chart-topping band with legions of adoring fans following your every move. Alex James, the bassist for U.K. band Blur, lived the high life as a member of  Britpop royalty in the 1990's and, despite a few hiccups along the way, makes it sound every bit as cool as you imagined!  His book, "Bit of a Blur" describes the surrealistic existence of a rock star living in central London surrounded by musicians, models, comedians and assorted other cohorts.  It's a fast-paced, hilarious read filled with lots of name-dropping that will give instant goosebumps to indie music fans (e.g., running into Kevin Shields of My Bloody Valentine the morning after a particularly raucous gig in New York).

Home For the Holidays!

Sorry for being missing in action for the past few months.  We've been working on many exciting things that are going to bear fruit for GWC in early 2013, so I'll fill you all in in them as soon as I can.  However, I do want to note that the company is having a truly outstanding year:  Outstanding revenue growth, a big uptick in earnings and an ever-more-engaged employee population.  I'm truly fortunate to work with the best people in the business and I am thankful for that every day.

And, as we head into the holidays, I know it's a particularly poignant season for many of us after the heartbreaking events of last week in Connecticut.  This season, please take some time to reflect on those who are hurting, reach out to help someone in need, and hug your family a little tighter.  We're all in this together, after all.  Cheers to a blessed Christmas and joyous New Year to everyone. 

What Am I Reading?

My long absence from blogging means I've gone through quite a few books; I'll try to recap a few in a future post.  In the meantime, I'm currently devouring "Sutton" by J. R. Moehringer, a re-imagining of the days following bank robber Willie Sutton's release from a NY penitentiary on Christmas Eve 1969.   Sutton was a romanticized criminal who never fired a shot in his various robberies.  This book follows his trail as he tries to find his long-lost first love before ending his days on earth.  It's not a typical Christmas story but it does say something about the power of enduring love, memories and redemption, all nice themes around the holidays.  Of course, I haven't reached the end yet, so let's hope it doesn't destroy that hopeful note I just sounded!

Changing Conditions

Just a quick post about the weather in Las Vegas.  One night, it's beastly hot and dry, with crystal clear visibility from my terrace at the Cosmopolitan Hotel:

 

Twelve hours later, the same view in the midst of a driving rainstorm:

I didn't know it EVER rained like that in Vegas. I need to keep the possibility of confounded expectations and uncertainty in mind.  And an umbrella in my backpack!

  
What Am I Reading?

"Dear Sugar" is an advice column on Rumpus.com that is like no other.  For several years, the until-recently-anonymous Sugar has responded to questions from people who are struggling, lost, even in anguish, with answers that are honest, compassionate and hopeful.  "Tiny Beautiful Things", a compilation of those Q&A's, reveals Sugar to be acclaimed writer Cheryl Strayed. Make no mistake, this is not an easy read; Sugar pulls no punches and is unflinchingly honest while revealing many of the struggles she has dealt with in her own life.  However, through all the pain and tumult, she offers a sunbeam of hope that may be just what her questioners (and readers) need to make sense of life's challenges. 

I was so touched by this book that I passed it on to my 20-year-old daughter, who, like most twenty-somethings, is doing her best to navigate college, relationships and the future, all while trying to define herself.  Hopefully "Tiny Beautiful Things" can help her do just that.

Stumbling Upon A Hidden Gem In South Carolina

It's not often that I find something that is so mind-blowing, so amazing, so unique that I'm speechless, but that's exactly what happened during a recent trip to Myrtle Beach.  A scant 20-mile jaunt down US-17 South (strip mall, chain restaurant and beach shop heaven) is Murrells Inlet.  And a mile off the main drag stands Brookgreen Gardens, an 80-year-old, 9000 acre sanctuary that houses a small zoo (nice), finely manicured gardens (impressive) and nearly 1,500 sculptures by a variety of American artists (astounding).  The works, mostly bronze and marble, are labors of love by artists, many of whom are long-deceased, that are tenderly cared for by the passionate caretakers of Brookgreen Gardens. 

  

In a way, it's like a trip to a mysterious garden village in France, as well as a journey back in time to an era when wealthy Americans bestowed their communities with parks, museums, libraries and other aesthetic gifts designed to uplift the spirits of visitors.  And in 2012, I'm thrilled to have been the beneficiary of the creators of Brookgreen Gardens.  I only had half-a-day there, but could easily go back again and again just to take it all in.  What a treasure.

 

What Am I Reading?

"If there is love, smallpox scars are as pretty as dimples." - Japanese proverb

So begins one of the introductory quotes in this fantastic adventure/love story by Stephen King.  And so, somehow, continues my Stephen King summer!  Desperately in search of a great beach read, I took a shot at "Beautiful Ruins" by Jess Walter, but instead gravitated toward "11/22/63", King's 849 page time traveling opus that came out last year and, despite the difficulties its weight caused me as I trudged through airports, I couldn't put it down.  He is simply an amazing storyteller and this book, where the hero attempts to go back in time to prevent the assassination of JFK in 1963 (among other more personal missions).  I was surprised to have two different people working poolside ask me about the book, so I guess Stephen King really is a perennial summer read.

Jeanette Meets Jim

When GWC Warranty moved into a new office last year, we had a contest to name the 4 common rooms.  After fielding a lot of ideas that were clever but didn't quite capture the spirit we were aiming for, Joe Brennan, our VP of Operations, had a "lightbulb" moment:   He suggested we name the rooms after business thinkers that had been transformational to us as we charted a new course for GWC.  We had photos of each of the business thinkers printed and mounted on the doors to memorialize them and inspire us.

There was one obvious candidate for our Board Room:  Jim Collins, author of "Good to Great" and other insightful books and articles that lay out a manifest for companies that strive to be great.  So, it was obviously a thrill for Jeanette Bogdon, our VP of Human Resources, to learn that Jim would be a featured speaker at the national Society for Human Resource Management annual conference in Atlanta last month.  She dutifully peeled down the photo off the Board Room door and proudly presented it to Jim for his signature.

Based on Jim's reaction to Jeanette's telling him that he'd beaten out other business luminaries to end up on the door to our Board Room ("I love that!"), I think Jim may have been even more thrilled than Jeanette!  But we're honored to have his signature up in our office and proud to be a company trying every day to be great.

What Am I Reading?

It's beach reading season so I picked up a book that's been on my "to read" list for about two years, Stephen King's "Full Dark, No Stars."  Unfortunately, I made the mistake of peeking into it one night at home and ended up zipping through all four novellas in just a few days!  I'm not a regular Stephen King reader, but he is a fascinating storyteller.  The tales in "Full Dark" all feature people in varying states of distress, forced to make the most with impossible situations (sometimes of their own doing).  It's a compelling read, perfect for the beach (or the couch, in my case), preferably in the light of day.

Top Talent Breeds Top Talent (Literally!)

I travel a lot and am often asked by strangers on planes what I do for a living.  When I tell someone that I lead a company offering vehicle service contracts, I often see the arched eyebrow and skeptical look of a person who is all-too-aware of the unsavory reputation of some of the "bottom feeders" in this industry.   When I sense that reaction, I quickly follow up with "But GWC is a GREAT company; we're the best at what we do."

When they ask me what makes us the best, I have a ready two-word answer:  "Top Talent."  Yes, we care about our customers, pay our claims and are incredibly strong financially.  But the key that sets us apart is the talent in the field and in our home office in Wilkes-Barre.  Specifically, we are the only nationwide vehicle service contract company that employs an all-employee sales team to service our Independent dealers.  Our Claims adjusters, contract processors, financial experts and marketing geniuses are all highly trained and committed professionals.  And I'm particularly proud of my leadership team, which is the best I've encountered in 25 years in business.

We held our company picnic (a blast of a clambake at Konefal's Grove organized by the ever-energetic Jenn K.)  a few weeks ago and had a great day filled with music, games, pony rides and casual fun with our work friends and families.  As the day wound down, the food servers at Konefal's made a point of letting Jenn know that the children were the best-mannered they had ever encountered at any of the many events they've hosted over the years.

I'm not surprised.  At GWC, we're really choosy about the people on our team.  And it's clear that Top Talent breeds even more Top Talent (literally!) 

What Am I Reading?

A confession:  Paul Krugman is one of my heroes.  The Nobel Prize-winning economist from Princeton has been consistently right over the years on what is going on in the economies of the U.S. and the rest of the world.  Despite an increasingly shrill chorus of deniers, Krugman has patiently reminded people that Keynes was correct, macro economics is a science that has been proven out repeatedly by the data and that we have the knowledge to do the right things when it comes to avoiding economic meltdowns.  Unfortunately, since the crash of 2008, attention has been wrongly diverted to the supposed future catastrophe being wrought by deficit spending.  Instead, we should be focusing on the current catastrophe being visited on the millions of people who are un- or under-employed due to misguided austerity programs in Europe and the U.S. 

Krugman is a reality-based economist in a world that has been overtaken by political shills who would rather win elections than help us out of what is truly a Depression for so many people.  The data is there and in "End This Depression Now" Krugman offers us a pathway out of the current economic mess that is dampening demand and destroying lives.  Ignore him at your peril.