Maine Ahead Jan-Feb 2012

Hoddy Hildreth 53 | business turnaround 40 | anne taintor 10

maine’s business & executive lifestyle magazine

Medicine Woman Putney CEO Jean Hoffman has more affordable drugs for your pets in the pipeline . . . 18

PLUS

Jan/feb 2012

Inside

MPBN . . . 28

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Contents

private tour: Maine Public Broadcasting Network 28

>> FEATURES BUSINESS UPFRONT

photos: (top) daniel lambert/mpbn; (bottom) courtesy of anne taintor

Tainted Comedy . . . 10 Go ahead, call her sassy, saucy, cranky, crass, catty, cheeky, brazen, or brash. Anne Taintor will say thank you.

BACKBONE

Better Butter . . . 16 Slow-churned butter made from fresh Grade A cream: Fans say Kate’s Butter tastes as good as it sounds, so the Patry family is building a bigger place to make more of its better butter.

Mogul: Anne Taintor 10

PODIUM | Cover story

Medicine Woman . . . 18 Jean Hoffman has been making news with her pet drug company, Putney, but she’s been putting dings in the universe for quite a while.

Private tour

Ready & Able . . . 28 Maine Public Broadcasting Network is not just news, culture, and educational TV. Find out MPBN’s other duty.

ROUNDTABLE

Is Your Business in Trouble? . . . 40 Two commercial bankers and two turnaround experts dole out some tough love.

January/February 2012 Maine Ahead >> 1

Contents cont.

vantage point: Hoddy Hildreth 53 L I F E S T YL E

OPINION

In Every Issue

WORTH THE TRIP

bull pen

BACK THEN

Kids See ’Em . . . 50

We Need to Get Our Head Straight . . . 62

Maine Discovery Museum is all about kids—which is why it’s one of Maine parents’ top-rated stops during school vacation.

Photos: (left) courtesy of hoddy hildreth; (right) courtesy of avena botanicals

Maine Goods: Natural Selection 12

Orlando Delogu puts his economic degrees to work on some timely tax policy analysis.

VANTAGE POINT

The Way We’ll Get By . . . 64

Environmentalist #1 . . . 53 In the 1960s, Hoddy Hildreth pioneered legislation that put polluters in their place. He was just getting warmed up.

Perry Newman watched a movie called The Way We Get By, and came up with a solution for those among us in need.

Tag, you’re it.

chef’s choice

J. DOE

His & Hers . . . 58

Please, Hire a Writer . . . 66

Brian and Shannon Horner O’Hea bring a tasty twist to “two for the price of one.”

You wouldn’t remove your own spleen.

Why trust your message to a hack?

Joshua Bodwell makes the case for hiring a professional.

Promotional Content

PROGRESS NOTES

MEREDA . . . 68

Conventional Wisdom . . . 9 These businesswomen weren’t yet wearing the pants in the family in 1925, but most of ’em were wearing bloomers.

MAINE GOODS

Natural Selection . . . 12 From their gardens in Rockport, the women at Avena Botanicals are growing ingredients, stirring up solutions, bottling them in the barn, and shipping them all over the natural world.

STICKY BUSINESS

Money-saving Acronyms . . . 14 Kenneth Giaquinto tells you why HSAs and HDHPs are worth looking at.

THE WAY WE WORK

Aesthetically Pleasing . . . 72 Linda Dyer, licensed aesthetician, knows a thing or two about facials, manies, pedies, and long workdays.

Preview MEREDA’s signature event, the 2012 Real Estate Forecast Conference.

January/February 2012 Maine Ahead >> 3

architecture editorial portrait

advertising corporate

serranophoto.com 207.766.1371

meet and greet

PUBLISHER

Mark T. Wellman

>> PUBLISHER’S NOTE

EDITOR IN CHIEF

Tori Britton Managing editor

Melanie Brooks

Getting to Wow

ART DIRECTOR

There’s something to be said for wanting what you have.

Ashley Ray BUSINESS EDITORS

this issue, like every other issue, is full of amazing info.

I wish I could take everyone along with me when we’re putting each one together. It’s such a privilege to talk to people like Hoddy Hildreth, and to meet the talented team at MPBN. With every issue, I learn so much.

I know our readers do, too, because many of you contact me. Over my career, I’ve been a paperboy, a salesman, a professional guitar player, a night club manager, and owned my own marketing and advertising agency. Never in my life have I been the recipient of more appreciation than as the publisher of this magazine.

I can’t even take a lot of the credit. Maine Ahead could not happen without Tori Britton, whose fingerprints are literally on every page, along with our gifted team of writers and visual artists. And none of it would be in front of you if it weren’t for our sales team, who bring you the most important content of all: advertisements. A good many of our advertisers have been in every issue since we launched in 2010.

My mother always said you should love people, not things, but I literally love Maine Ahead. It has changed the way I look at business, at accomplishment, at the state I call home. It has brought me to every corner of Maine—the western mountains, the northern fields, the rockbound coast, and the urban centers—like four countries under one name. Wow. Maine Ahead has done something for me that you can’t buy, but is priceless: It’s taught me to appreciate what and who I have all around me, right here, right now. I hope you can catch a piece of that gratitude by sitting down with this issue.

It’s a great feeling.

— Mark Wellman, publisher

Mike Woelflein Henry Garfield CONSULTING EDITOR

Annaliese Jakimides illustrator in chief

M. Scott Ricketts cover Photography

Irvin Serrano Administrative consultant

Melissa Sherman CONTRIBUTING WRITERS

Richard Shaw Orlando E. Delogu Perry B. Newman Joshua Bodwell DIRECTOR of sales & operations

Christine Parker SALES CONSULTANT

Christie Spearen SUBSCRIPTIONS

10 issues $29.95 online, by phone or mail www.maineahead.com production Office:

One Cumberland Place Suite 316 Bangor, Maine 04401 207.941.1300 Maine Ahead is published by Webster Atlantic Corp., a Maine-owned company. Newsstand Cover Date: January/February published December 20, 2011, Vol. 3, No. 1, Issue 19, copyright 2011.

Advertisers and event sponsors or their agents are responsible for copyrights and accuracy of all material they submit.

ADDRESS CHANGES: To ensure delivery, subscribers must notify the magazine of address changes one month in advance of cover date.

Opinions expressed do not represent editorial positions of Maine Ahead. Nothing in this issue may be copied or reprinted without written permission from the publisher. Maine Ahead is published 10 times annually. To subscribe, call 207-941-1300 or visit www.maineahead.com.

COVER IMAGE: Irvin Serrano

Email Mark Wellman at publisher@maineahead.com.

6 >> Maine Ahead January/February 2012

>> CONTRIBUTORS

Christine Parker says: “Life’s journey is ever-changing.

Maneuver around the obstacles, stay optimistic, do your best , surround yourself with a great team, and everything else will fall into place.”

Christine Parker, Maine Ahead’s director of sales and operations, has over 20 years’ experience in media sales and consulting. Parker earned a BA in marketing and advertising from Stockton State College.

While living in her native New Jersey, she worked as an advertising sales executive and in management positions for both the Atlantic City Magazine and the Atlantic City Press. On moving to Maine, she joined the Katahdin Times as a sales manager and became a co-owner of the Katahdin Press. Parker’s talents as a businesswoman and sales professional are always impressive—at times, breathtaking.

Ashley Ray Ashley Ray studied pre-press production and graphic design at Central Maine Community College, and honed her skills in the fast-paced work environment of Jiffy Print Inc. before joining the team at Webster Atlantic Corporation, where she handles her multiple responsibilities with speed, intelligence, and cheerfulness.

January/February 2012 Maine Ahead >> 7

Photo: Collections of Maine Historical Society/MaineToday Media

back then

>> Conventional Wisdom 1925, Portland an assembly of women attired in paper party hats at Port-

sional career and shattered the glass ceiling during her historic

land’s Grand Trunk Station was in a celebratory mood in July 1925.

1964 presidential campaign.

Special carloads of delegates, including these Kansans (note the

Maine BPW archives at the University of Maine’s Special Collec-

lone man seated with hat in hand), arrived from around the U.S. for

tions department document the organization’s growth, begin-

the seventh convention of the National Federation of Business and

ning in 1919 with the formation of the Lewiston-Auburn BPW Club,

Professional Women’s Clubs. Five years after the 19th Amendment

followed by Portland in 1920. The state unit was formed in 1921.

granted them the right to vote, women’s hopes and hemlines were

Now called Maine Business and Professional Women, the group

on the rise. Bloomers, a precursor to women’s pants, were worn by

holds an annual convention and informational workshops. A sister

some of the delegates.

organization, BPW/Maine Futurama Foundation, sponsors a schol-

Still, much hard work remained in a state and nation dominated by men. Twenty-three hundred paid delegates from as far away as

arship program and Maine Women’s Hall of Fame.

The landscape has improved considerably since the 1925 BPW

Twin Falls, Idaho, flooded Portland’s hotels and banquet halls to

convention rocked Portland. Maine women now head corpora-

discuss strategy, squeezing in junkets to Old Orchard Beach and

tions and nonprofits, control considerable wealth, hold three-

Peaks Island. Among the delegates was the 27-year-old Margaret

quarters of our congressional seats, and head the state Supreme

Madeline Chase, who cofounded the Skowhegan chapter of the

Judicial Court. Like Margaret Chase Smith, rather than talk about

club in 1924 and was elected president of the Maine BPW in 1926.

equal rights and abilities, many Maine women leaders seem to

Margaret Chase Smith went on to a distinguished 33-year congres-

prefer to put them into action. —Richard Shaw

January/February 2012 Maine Ahead >> 9

upfront

people

| places

| products

| progress

>> mogul of the MONTH Tainted Comedy Lewiston-born Anne Taintor has turned a sharp wit, scissors, and old magazines into a snarky empire.

A WELL-COIFFED woman in a polka-dot dress is reading a story to her two cherubic children. The caption reads: “. . . and then the children cleaned their rooms, got mommy her drink, and went straight to bed. The end.”

The image is a vintage illustration from a magazine, published more than half a century ago. The caption was written by Lewiston native Anne Taintor, who has parlayed a love of irreverent humor and collage-making into a line of products sold in more than 25 countries.

Taintor’s sassy product line includes refrigerator magnets, greeting cards, shopping bags, sticky notes, coin purses, cosmetics cases, flasks—almost anything to which you can affix a funny message. Most poke fun at the stereotypes of women promulgated in pre-feminist era publications like the Ladies Home Journal. Alcohol is often involved. In one illustration, a perfect 1950s housewife wipes a gleaming frying pan. Taintor’s caption: “The only thing left to polish off now is the gin.”

As a Harvard-educated single mother in the 1980s, Taintor was having difficulty supporting herself and her young daughter. “I went to a career counselor, who asked me what I liked to do. When I told him I liked making collages, he told me to do that.”

Her first products were handmade wood lapel pins and earrings, about the size of a quarter. Taintor cut and pasted artwork from old magazines and lacquered every piece, then sold them at local craft fairs. “When I started putting words on them, they started really selling,” she says. She cut the words out of magazines and assembled them into humorous messages, which she glued onto the pictures in blocks, creating her signature style.

Magnets came next, and quickly became her bestselling items. These, too, she produced herself, cutting sheets of magnetic material into rectangles using a paper cutter. Soon the demand outstripped her ability to produce products in her home, and she hired a manufacturer. Taintor maintains a network of freelance writers who supply ideas for the 30 to 40 new captions she uses every year.

“It’s like long-distance brainstorming,” she says. She also runs caption contests through her online blog.

Recently relocated in Portland after 11 years in New Mexico, Taintor has seen her business expand beyond her greatest expectations. She has eight full-time employees in offices in New York and California, and she has launched a new line of products called Taintor With a Twist, which uses images licensed from the Saturday Evening Post. Though she has competitors, few can match her

cutting BUSINESSWOMAN

3,000 • Number of stores that carry Anne

30

Taintor’s products.

• Age Anne Taintor was when she started her own business.

1971 • Year Taintor graduated from Lewiston

900 • Number of entries in a recent caption con-

High School.

10 >> Maine Ahead January/February 2012

test at www.annetaintor.com.

Illustration: m. scott ricketts

pithy wit. What woman, after all, hasn’t sat on a sofa listening to a self-absorbed man and wondered, “Why am I sober?”

Genius disregards

the bounds of propriety.

—Lois Lowry

MA I NE

W A V ES

BUSINESS PRESS

>> Lip Smackin’ H2O BEVERAGES ARE BIG BUSINESS in Maine, with award-winning breweries, wineries, and distilleries all over the map. Recently, Maine Rural Water Association celebrated Maine’s most popular beverage, water, through its 31st annual water tasting contest. Kingfield Water

Anne Marie Storey, a partner at the Bangor law firm Rudman Winchell, is the new president of the Maine State Bar Association. The association has 3,100 members.

District won, and will represent Maine in the nationals. Poland Spring caught on to Kingfield’s H2O a while back, opening what is now its most productive bottling plant there in ’09.

PHOTOS: (top) courtesy of maine rural water association; (center) courtesy of gbritt pr; (bottom) shoshana hoose

>> Laughing at Adversity MOTIVATIONAL SPEAKERS who make the long trek to Maine tend to be rewarded with appreciative audiences. It was certainly true at

DeLorme’s new inReach Satellite Communicator has been chosen for a Gear of the Year award by Men’s Journal magazine. The company, a leader in navigation technology, is based in Yarmouth.

Key Bank’s 2011 Key4Women Forum, featuring a rousing keynote by Cindy Solomon, author of Creating a Culture of Courage: The New Leadership Challenge. The fearless founder of the Portland nonprofit Casa, Anne Walp, was also honored at the South Portland event.

>> Winter Wheeling It’s easy to talk about going green, losing weight, getting buff, and saving money on fuel.

Doing it, especially during wintertime in Maine, is another story. The Bicycle Coalition of Maine’s Worksite Bicycle Program gives employers the info they need to encourage their employees to commute to work by bicycle, even in winter, rolling traveling and exercise into one parkingspace-saving package. Intrigued? The coalition’s education director, Jim Tasse, is always geared up for company presentations.

Melissa Duffy, managing partner at Duffy Anderson Investment Management in Cumberland Foreside, was one of 400 financial advisors invited to attend the 2011 Barron’s Winner’s Circle Top Women Advisors Summit in December.

Ryan Low is the new executive director of governmental and external affairs for the University of Maine System. In addition to government relations, Low will also oversee the System’s public and media relations efforts.

January/February 2012 Maine Ahead >> 11

upfront

people

| places

| products

| progress

>> Maine goods BUSINESS PRESS WBRC Architects • Engineers has hired Robert J. Reid, AIA, NCARB, LEEDAP, as architecture department manager.

James R. Brown, AIA, is the firm’s new Portland regional manager.

COA, College of the Atlantic, has begun a $32 million capital campaign, the largest drive to date of the 40-year-old college. On the day of the announcement, the campaign had already raised more than $26 million.

Way before green was hot and locally-grown was cool, Avena Botanicals was growing its own answers to healthcare conundrums.

“Healing begins in the garden,” says Deb

tion to production of herbal remedies, Avena

Soule. She should know. She’s been growing

also holds classes for locals interested in

medicinal herbs and turning them into medi-

expanding their knowledge of herbal

cines since 1985, the year she founded Avena

medicines.

Botanicals and began to teach others about the healing qualities of plants.

“Our most popular products vary with the seasons, but our Heal-All Salve is consistently a

In 1995, Avena moved to its current Rock-

top-seller,” says Nadine Gallagher, Avena’s office

port location, four miles from the ocean, where

manager. She says the salve “can heal anything

Soule (pronounced like the bottom of your shoe

from minor cuts and abrasions to relieving radi-

or the music of Aretha Franklin) designed and

ation burns for cancer patients.” Another

planted a large organic and biodynamic herb

popular item, especially in winter, is their Be

garden. The garden contains over 125 different

Well herbal compound tincture. Designed to

medicinal herbs and plants. In the adjacent

support the body’s immune system, the product

apothecary, housed in a farmhouse built in the

is a long-term, in-house staff favorite for

1830s, Soule and her all-female team run a

preventing and shortening colds and flus.

thriving retail and mail-order business that

“All of our products are handmade,”

supplies herbal medicines to a growing market.

Gallagher notes. She’s not kidding: The staff

Products include liquid extracts, creams and

manually harvest and process the herbs, and

salves, teas, herbal powders and supplements,

hand pour, label, and bottle them in the

oils, and health remedies for women and

farmhouse.

children.

It’s a year-round operation, beginning in March with sprouts in the greenhouse. In addi-

12 >> Maine Ahead January/February 2012

As one would expect, everything Avena offers, Gallagher says, “is completely artificial preservative-, toxicant-, and cruelty-free.”

Pen Bay Healthcare, serving midcoast Maine, has chosen Wade C. Johnson, MS, MBA, FACHE, as its new chief executive officer. He served most recently as CEO of Weiser Memorial Hospital in Idaho.

Bernstein Shur attorney Arnold Macdonald has been appointed to the American Bar Association Interest on Lawyers’ Trust Accounts Commission, which supports legal aid for those in need. He is a member of Bernstein Shur’s business law, construction, and real estate practice groups, and is a former president of the Maine Bar Foundation.

Photo: courtesy of avena botanicals

NATURAL SELECTION

These buildings aren’t just beautiful.

They’re also SMART—thanks to McGuire Controls What is a smart building? It’s a facility where HVAC, lights and access are controlled automatically, slashing energy costs . . . where problems such as mechanical failures, comfort issues and access breeches are instantly detected—and building managers are immediately notified.

at mCguirE COntrOls, we design, install, monitor and service systems that save money while making your occupants safer and more comfortable. With the price of energy and maintenance, every building in Maine should be a smart building! And with McGuire Controls, yours can be.

Call OWnEr KEn mCguirE to set up a walk-through of your facility today. It may be the smartest move you make all year.

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January/February 2012 Maine Ahead >> 13

upfront

people

| places

| products

| progress

>> sticky business Money-saving healthcare acronyms Q: How can I counter the rising costs of healthcare premiums for my employees. Should I look at a plan with higher deductibles? How about HSAs?

Look into an HDHP/ HSA combo

A: Alarming but true: According

funds in HSAs can roll over after the end of the

to the Kaiser Family Foundation,

year, creating a reserve against future health-

healthcare premiums are rising five

care expenses.

times faster than wages or inflation.

A good way to counter these rising

HDHPs can free up benefit dollars. The

costs is with the increasingly

savings realized by moving from a traditional

popular high-deductible health

plan to a high deductible may allow your busi-

plan/health savings account (HDHP/HSA).

ness to contribute to your employees’ HSA

Industry experts estimate that the HDHP/

accounts, encouraging the transition. Your

HSA combination can save companies as

contributions to your employees’ HSAs are tax

much as 20% to 30% annually.

deductible for your business.

HDHP/HSAs work this way. High-deduct-

These plans encourage wellness and careful

ible health plans provide coverage to

spending. Traditional health plans have no

employees for catastrophic illnesses and

real incentive to economize. People with

reduce premium costs for employers

HDHP/HSAs tend to make proactive, healthy

compared to traditional plans. While regular

decisions in areas such as weight loss, exer-

preventative visits are covered, other visits to

cise, and smoking. Granting consumers the

medical providers and medications are paid

power to make individual decisions about how

for by the employee until the deductible is

to use their own healthcare dollars typically

reached. To help pay for those services, plan

reduces the amount they spend, allowing

participants can open Health Savings Ac-

savings to accumulate in their HSAs.

counts, which allow them to put away money pretax and use it for medical expenses.

While HDHPs and HSAs are not the right option for everyone, they are worth looking into as a way to support your employees while

HSAs are surprisingly flexible. Health

still holding down healthcare costs.

Savings Accounts remain in force even after employees change jobs or insurance plans.

Sticky business questions need answers.

Also, unlike flexible savings accounts, the

Email yours to editor@maineahead.com.

This month’s expert: Kenneth P. Giaquinto Relationship Manager, KeyBank Maine District

Kenneth P. Giaquinto is relationship manager for Key@Work, which offers free and discounted banking services for companies to offer to employees as part of their overall benefits package. Giaquinto has 30 years in the insurance and banking industries and has extensive experience in life, disability, and employee benefits. He is a Certified Consumer Directed Health Care Specialist.

He lives in Portland.

14 >> Maine Ahead January/February 2012

BUSINESS PRESS Bangor Savings Bank was the overall top Small Business Administration (SBA) lender in Maine in 2011, lending $14,889,050 in loans to 68 new or existing businesses.

Brent K. Hartley, CPA, has joined Sargent Corporation as vice president–finance and chief financial officer. He succeeds George Thomas, who is retiring.

Henry “Hank” Schmelzer, former CEO of the Maine Community Foundation, is the new chair of Maine Public Broadcasting Network’s board of directors.

Amos Guiora, a professor at the University of Utah’s S.J. Quinney School of Law and renowned expert on geopolitical risk assessment and counterterror planning, is now a senior advisor for Portlandbased Atlantica Analytics.

Diversified Business Communications, headquartered in Portland, has purchased Pri-Med, the largest primary-carefocused media network in the U.S., with over 50 annual medical conferences and digital properties.

Creative Community exhibitions performing arts music film handmade on main wifi lounge corporate events

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265 Main Street • Biddeford [207] 229 3560 director@FeedtheEngine.org FeedtheEngine.org Facebook.com/FeedtheEngine Twitter.com/EngineBiddeford PHOTOS BY SERRANOPHOTO.COM

January/February 2012 Maine Ahead >> 15

backbone

Better Butter As Kate’s Homemade Butter builds a new facility in Arundel, the company prepares for controlled growth— and even more of its better butter.

by Mike Woelflein

16 >> Maine Ahead January/February 2012

or 30 years, Kate’s Homemade Butter has been made in the basement and garage of Dan and Karen Patry’s raised ranch in a residential neighborhood of Old Orchard Beach. That’s about to change, as the family business moves to a 17,620-square-foot facility in Arundel sometime this summer.

Now under construction, the state-of-theart manufacturing plant will allow Kate’s to cut costs, lift capacity, and introduce more products—beyond butter and real buttermilk, which they launched three years ago— including cheese, ice cream, and other specialty foods. But it will also represent a nod to the very roots of the company, long before Dan and Karen Patry started selling butter in 1981. The steel-framed building will be shaped like a dairy barn, sitting on a 40-acre field with silos to store cream, a spring-fed trout pond, and a herd of 25 cows.

“I learned how to make butter from my Uncle Roland on my grandfather’s farm [Hemond’s Dairy, founded by Dan’s grandfather,

Alphonse] in Minot,” Dan says. “We still make it almost exactly the same way. This new building is going to be highly efficient and let us do a lot of things, but it’s also going to be beautiful, like a little dairy farm.”

For years, the Patrys made butter at home, in five-pound batches. But when Oakhurst Dairy, Dan’s then-employer, bought Cole Farm in Sydney, he got his hands on a churn that could make 300-pound batches, and the Patrys decided to sell butter. Initially, the plan was to build the business to the point that Karen could stay home with the couple’s three young boys.

Today, they run an 11-foot-tall churn with a 4,000-pound capacity, three times a week, with each shift beginning at 1 a.m. and running into the next evening. With five fulltime employees, they churn out more than a million pounds of butter per year, earning revenues of more than $3 million. The company has been growing 20% to 25% annually for many years. Hannaford was their first big account, but today Kate’s is available in

Photo: mark wellman

Chris Patry (left) and his dad, Dan Patry, at the site of the company’s new facility.

Offshore asset protection. stores across much of the U.S., south to Florida and west to Chicago, and in restaurants out as far as Las Vegas.

That 11-foot churn, and another just like it, will be placed in the new facility, creating the potential for double shifts and growth that, Dan says, “is limited only by how much we want to work.”

Actually, that’s not entirely true. Kate’s products are acknowledged as some of the best in the world—the company has won first place at the World Dairy Expo for salted butter (2006), unsalted butter (2008), and buttermilk (2010)—and growth will require maintaining or improving the texture and flavor that make Kate’s stand out against dairy giants like Land O’Lakes and even higher-end specialty manufacturers. “We’re going to grow, but it is, and always will be, controlled growth,” Dan Patry says. “The most important thing, our ultimate priority, is quality. We’ll never get so big for that to slip.”

That means using the freshest Grade A cream, from Maine and New England farms. It means using the same methods that Roland and Alphonse did, slow churning in smaller batches. It means wrapping in foil instead of parchment (to protect the butter from airborne flavors and light), and never freezing for storage.

And, it means keeping control of every step, from cleaning equipment to standards that are much more stringent than the FDA’s, to handling the delivery to as many stores as possible, usually within a few days of production.

“All of those things cost more, and not a lot of companies do any of them, but it’s the way we do it, and that won’t change,” Patry says.

Most commercially available buttermilk is a mixture of skim milk and cultures, but Kate’s Real Buttermilk is just what the name says: the by-product of the butter-making process. The Patrys say substituting it for milk in almost any recipe makes food—especially pancakes and

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“All of those things cost more, and not a lot of companies do any of them, but it’s the way we do it, and that won’t change.” —Dan Patry baked goods—that much better.

The company, named for Patry’s now 33-year-old niece, whose face graces the logo, is truly a family affair. The three Patry boys grew up with the company, folding butter boxes even at a young age. Youngest son, Luke, 30, joined full-time in 2005, and has been the driving force behind technological improvements that streamlined production, even while improving the products. A UMaine grad who studied science and German, then learned cheese making in Austria, he will live at the Arundel site and continue to specialize in R&D, developing new products. Chris, 35, a mechanical engineer, manages the equipment side and played a big role in the new facility.

Son Dan, 39, runs Patry Family Realty and helps with sales and marketing.

“We’re all passionate about this,” Chris says. “You have to be, to work 20-hour shifts.” His father chimes in: “People ask me why I work so much, why we all do, and I tell them, ‘It’s not really work if you enjoy it as much as we do.’”

They won’t share a lot of specifics about the goals for the company, other than continuing to grow within their means and adding new products, hopefully one per year. “I don’t want to tip my hand too much,” Dan says, “but we could do anything from ice cream (for local sale, starting in the new facility’s shop) to products made with buttermilk, such as ranch dressing. It will be good, and it will be fun.”

“That’s really the ultimate goal,” says Chris. “To make really good dairy products and have fun.”

January/February 2012 Maine Ahead >> 17

podium

Anything But

GENERIC

With her latest venture—the generic pet meds company Putney— Jean Hoffman is doing what she always does: quietly, brilliantly, doggedly transforming the marketplace.

by TORI BRITTON • Portrait by irvin serrano

hen Putney, a Portland-based generic pet meds company founded in 2006, released news that it had attracted $21 million in investment capital—a very large wad here in Maine—it didn’t get a lot of column inches in statewide press.

Perhaps the achievement seemed natural, given the size of the market. Over 60% of U.S. households have at least one cat or dog, and spent about $48 billion on these companion animals in 2010. Some of this cash was for medications—which can be as pricey for Buddy and Whiskers as it is for the human members of the family. Yet, while 78% of human prescriptions are now filled by generics, only 6% of pet meds are. Putney is primed to fill that need with a pipeline of some 20 products. Read that on the Dow Jones Venture Wire, and the capital influx makes sense.

But the truth is, the story is less about market size and projected earnings, and more about a soft-spoken powerhouse named Jean Hoffman.

The daughter of journalist Burton Hoffman (1929–2010), who became editor in chief of National Journal magazine, Jean Hoffman was trained from an early age to be correct, careful, and, simultaneously, to reach for the top. While her dad grappled with national news and world affairs, Hoffman’s grandparents conquered a smaller world in Newport, Rhode Island, as owners of a busy nightclub called the Ideal Café. Hoffman, it seems, inherited both her dad’s journalistic curiosity and her grandparents’ entrepreneurial grit.

As a young woman (who’d had the smarts to become fluent in Mandarin Chinese), Hoffman was one of the first Americans allowed inside Chinese factories in the early ’80s. She was named CEO of a Swiss pharmaceutical subsidiary before the age of 30. She founded the company behind the most widely-used industry intelligence software in the pharmaceutical world. Now, through Putney, she is out to lead a generics revolution in animal health.

18 >> Maine Ahead

January/February 2012

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In a 2009 interview with MaineBiz, Hoffman, asked when she’ll be able to relax, said, “I’ll sleep in 2011.” That’s one of the few projections she’s missed over her career. Make that 2016.

Maybe.

Please tell us a bit about your growing up in Washington, D.C. What were your interests? What kind of a kid were you?

I think I was a pretty serious kid. My greatest interest as a child was in plants and animals. My first job was in taking care of people’s pets when they went away for vacation, and I wanted to be a veterinarian, so I loved animals from a very, very early age.

My dad was a journalist, and then active in politics, so we grew up in an exciting place in exciting times, and were exposed to a lot of journalists who were covering the important events in the world.

Both of my parents were tough taskmasters. My brother and I used to have to do 12 drafts in ele20 >> Maine Ahead

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mentary school, so I was certainly brought up with high standards and to work very hard.

How did you end up at Bowdoin College, and why East Asian studies?

I wanted to go to a small, high-quality New England liberal arts college. My father had grown up in Newport, Rhode Island, and summer vacations were going to Newport and staying with grandma and grandpa. So it was really the connection to Newport and to my grandparents that drew me to New England.

Through my father’s involvement in reporting around the world, we were exposed to Asia. It was the Vietnam War days, and, as a girl, I got interested in China. I think China was the most different place in the world to me, and I was very interested in learning about that. I had a particularly inspiring professor at Bowdoin who taught me a lot about Chinese philosophy and culture, and I studied my junior year in Hong Kong. I learned

Photo: courtesy OF Jean hoffman

Jean Hoffman and colleagues in the mid-1980s, touring a poultry breeding operation in Malaysia.

to speak Chinese, both at the Middlebury Summer Language Program and during that year in Hong Kong. It was my first trip overseas, and a very important part of becoming independent and learning to understand myself in the context of how I fit into the world.

velop a business in supplying the active pharmaceutical ingredients for the generic industry in the U.S. The generic industry was given its big start by the passage of an important piece of legislation in 1984, and this was that period of time. So I was involved in the very beginning of the human generic industry.

“I’ll never forget the advice of a gentleman at IBM. He said, ‘Jean, you could spend the rest of your life learning how to be a mediocre developer. You need to go out and get somebody good.’”

How did you end up in China, working in the pharmaceutical industry?

After graduating from Bowdoin, I went back to Washington and worked for a trade association. This was prior to diplomatic recognition of China, so it was actually a quasiofficial organization called the National Council for U.S.China Trade. It was headed by a former ambassador, and there were a lot of very bright young people there at the time, and some experienced foreign service professionals, so it was a wonderful opportunity to learn and to excel.

From the National Council, I was offered a position by one of the council’s members, a New York-based pharmaceutical company that was part of a big, privately-held Swiss conglomerate called the Zuellig Group, and ran business development with China for them globally, which was also a very exciting opportunity.

One of my roles was in helping the Chinese understand how to export to the U.S. So I did quite a bit of research into who were the top-ranked FDA law firms, and introduced the Chinese to a number of firms that had experts in food and drug law, and consultants who could help them understand the regulatory and legal requirements for exporting pharmaceuticals to the U.S. I was also involved in technology transfer and the sale of machinery and equipment to upgrade Chinese factories so that they could produce more efficiently and meet U.S. regulatory standards.

You eventually become CEO of a Swiss pharmaceutical company, a Zuellig Group subsidiary called ZetaPharm, at age 29. Your job was to turn the company around. How did you do it, and what did you learn?

I put in place the plan to turn the company around, and others continued the work after I left. My plan was to de-

The next phase of your career was developing pharmaceutical industry intelligence software for a company you started, called Newport Strategies. You developed it into a global leader and sold it to Thompson Reuters in 2004.

Why did you start it, and what did you offer customers?

I got the idea of putting together a database that I could sell repeatedly to clients, and that was the genesis of Newport Strategies. I raised capital; IBM had a little venture capital group in Paris, and that provided seed capital to launch that business. Newport became very successful. IT was really a lot of hard work and took a lot of time, but it was also fun because we created a global brand that survives to this day, and which became really well-known.

It was a proprietary system with proprietary and inlicense data, and it created a new category. It enabled generic pharmaceutical companies to analyze product targets for development and licensing on a global basis. A different version of the software system enabled branded pharmaceutical companies to calibrate the erosion curves of their branded products when generic competition hit.

So the data could be analyzed and deployed to serve both sides.

Originally I had a partnership with a very talented developer, whom IBM set me up with. I had the idea for the company, and had the idea that I would learn how to write code myself. I’ll never forget the advice of a gentleman at IBM. He said, “Jean, you could spend the rest of your life learning how to be a mediocre developer. You need to go out and get somebody good.”

So IBM found me someone great, Richard Hong, who was a key partner for me in developing several generations of software at Newport. Eventually it became too big for one guy in New Jersey to do, so we built our in-house development team, and when Thomson acquired the comJanuary/February 2012 Maine Ahead >> 21

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“I wish things were faster . . . but it’s important for the process to be very, very rigorous for any drug, whether it’s for an animal or a human.” pany, they found that our development team was more productive and more cost-effective than their development groups at the big company. Thomson still maintains the Newport office right here in Portland, Maine. Some of my team are still there. I see them out at trade shows with a great big booth we never could have afforded in the early days, and I’m really proud.

Why did you sell the company?

One of the reasons I sold Newport was that I wanted to build a company around the kind of profitable, niche products that the Newport system had been built to identify.

I found an ideal opportunity in the vet pharmaceutical space: a very inefficient market with limited generics, very little generic competition, and a great group of product opportunities for a company to have sustained profits and to also really contribute something to pet owners and veterinarians.

You founded Putney in 2006, and launched its first product for pets, a generic equivalent of the pain reliever Rimadyl.

With a generic equivalent like Carprofen caplets on the

market, why would any vet buy Rimadyl, which costs more?

Great question. We wish you were out asking that question in the market. On the human side of course, generics are well established and fill 78% of the scripts. To date, 94% of the products that have been approved by the FDA for pets don’t have a generic, so veterinarians and pet owners are not familiar with FDA-approved generics for pets. So it will take some time, particularly for the veterinarians, to understand the value that generics bring to their practices and to pet owners.

Why does Putney only offer two generic equivalents at this point? What takes so long?

The key challenge is to get our pipeline of drugs developed and approved by the FDA. That is hard work, because it takes time to develop a drug, and the FDA has high standards, which it should have. The key challenge in particular is bringing the drugs through the FDA approval process that are the large-selling items. Carprofen caplets is a generic of a relatively small drug, in terms of usage, and so the much more dramatic conversion to generics will occur with the approval of Carprofen palatable chews. Chews are more widely used because of their palatability, and palatability is important for dogs and cats being willing to take the drugs.

How do you and your team decide which products to develop?

I like to say that we do product development backwards.

>> The Hoffman File Born: Washington, D.C. Education: BA (double major) in East Asian history/ government and legal studies, Bowdoin College, 1979. Hoffman also completed language studies at Middlebury Summer Language Program and Chinese University of Hong Kong, and executive education programs at Stanford and Columbia Universities’ Graduate Schools of Business.

Career: After working for the National Council for

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U. S.-China Trade in Washington, D.C., for two years, Hoffman entered the pharmaceutical industry. Positions include: manager, China business, Zuellig Group, 1982; general manager, China, Zuellig North America, 1984; CEO, ZetaPharm, 1987.

Hoffman returned to the U.S. and founded Newport Strategies in 1990, which she sold to Thomson Reuters in 2004. She founded Q Street Advisors in 2004; Putney in 2006.

Affliliations: Charter board member, Maine Small Enterprise Growth Fund, 1997.

Current affiliations include: editorial board,

Journal of Generic Medicines; member, UNE College of Pharmacy, Dean’s Kitchen Cabinet; mentor, Maine Center for Enterprise Development Top Gun Program.

Awards: Woman to Watch, MaineBiz, 2009; Woman to Watch, Mass High Tech, 2011.

Personal: Hoffman and her two children live on Peaks Island. Her daughter attends Waynflete School, and her son is a mechanical engineering major at the University of Vermont.

Most pharmaceutical companies, if they are a branded pharmaceutical company, base their product development decisions on their medical research expertise. They may be experts in cancer, or in the digestive system, so they’re doing research in a particular set of organs or diseases.

Other companies base their product development decisions around their manufacturing capacity. They are injectable drug manufacturers or they are manufacturers of tablets or capsules.

At Putney, we develop products backwards, which means we develop the products that the market needs, and we base our manufacturing choices on what is the lowest regulatory risk. We look for a manufacturer who has developed the

same or a very similar drug and has a sterling track record with the FDA. We also make our development and manufacturing decisions in a geographicallyneutral way, so the decision is driven by who’s the best partner—who can develop with the least risk, the highest quality and the best time frame. We are developing and manufacturing products in the U.S., in a number of European countries, in India, and potentially in China.

Why don’t human generic drug companies move into the pet industry?

The human generic companies have not focused on pet generics because it is a completely different market, and requires a dedicated sales force calling

on veterinarians. It requires dedicated product development, and expertise to conduct the science and research that is specific to the animals. And it requires dedicated regulatory affairs to deal with a different center at the FDA, the Center for Veterinary Medicine, which is a different center from CDER, the Center for Drug Evaluation Research, where human drugs are evaluated. So the human generic companies that have the skill sets to overcome barriers to entry and formulate generic drugs, do not have the veterinaryspecific expertise.

The barriers to entry are high; this is not an easy market. It’s not for the faint of heart. We have taken on this challenge and we have a great team here who are

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January/February 2012 Maine Ahead >> 23

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at risk of getting heartworm, which, if not treated, will be fatal for the dog, but the veterinarian is also losing income. If the pet owners aren’t filling their scripts, then the pet owner may not be bringing the dog in for its vaccinations or its checkups, so it’s a dangerous spiral in terms of disease, in part, because some diseases are zoonotic and can transfer to humans. And it’s negative for the veterinary practice in terms of income and profits. By offering drugs that the vet makes more on, but can offer at a cheaper price, it’s really solving a number of problems.

One of the shocking things to me, as I delved more deeply into this market, is how many pets go untreated, or are treated with a drug that isn’t ideal, in order to help the pet owner save money.

With some of the infectious diseases in particular, the drugs are prohibitively expensive, so we really look forward to helping the pets get treated with the right drug for the disease.

Burton Hoffman (center) with his daughter, Jean; son, Chris (back left), and five grandchildren at the family home in Rhode Island. Jean’s grandparents purchased the property with earnings from their Newport nightclub, the Ideal Café.

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really, really excited about overcoming these challenges. But it isn’t easy.

Why is veterinary-specific expertise so important?

Veterinary medicine is quite different, because veterinarians both prescribe drugs, like human doctors do, but they also dispense them. Human doctors give you a script, and you go fill your script at your pharmacy. The human doctor’s not involved and in fact doesn’t know what you pay for it, and they don’t know what your insurance plan pays and how the economics work out. Veterinarians, on the other hand, sell the drugs. So they are very economically aware, and, in fact, a significant portion of veterinarians’ income and profits comes from drug sales.

If pet owners are not filling their prescriptions, if they’re not giving their dog heartworm medication every month in the South, not only is the dog

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The total process from pulling the trigger on a portfolio decision to FDA approval is anywhere from three to six years.

Some of that time line is not FDA evolution; it’s actually development and testing of the product.

There are requirements, for instance, for stability testing, where the product is actually kept in a chamber and exposed to heat and required to sit there for a period of time. That’s frustrating time to wait while your product sits there, but it’s important to demonstrate that the product won’t degrade once it’s in the market.

I wish things were faster, and we’re actually working hard with the money we now have through the new investment to do some things to accelerate some of our development time frames, but it’s important for the process to be very, very rigorous for any drug, whether it’s for an animal or a human.

What kind of time line are you looking at for future product launches at Putney?

We don’t disclose time lines, as is common in the generic industry, and we don’t disclose our pipeline, except I will say that we believe we have the

Photo: courtesy OF Jean hoffman

How long does it take to get a generic product for companion animals to market?

largest pipeline in animal health, and we expect significant product approvals in the not too distant future. We will be expanding into the other side of the office— we have the whole floor here—and we will be moving some of our people into the other side. We have a lot of hiring going on, all

“One of the shocking things to me . . . is how many pets go untreated.” in anticipation of increasing our pipeline and bringing to market some very significant veterinary generic products.

Any particular talent you’re looking for?

We’re recruiting very aggressively from both human generics and animal health, and we’re looking for really strong performers with a track record of success.

Portland is a great place to live; it’s a great place to raise a family. The schools here have a pretty good reputation and that’s a very important component of what people are looking for as they relocate with their families. So we’re excited about Portland.

We have a lot of people that we need to relocate here from outside of the state of Maine and will be announcing several additional key members of the management team very shortly.

A very important part of our challenge is to scale up the company, and, at the same time, preserve our core values, and preserve and enhance a very performancedriven, entrepreneurial culture.

So you’re looking for people who behave as if they own the company.

Exactly. People here get good compensation, but they also get stock options. So they actually do own the company. The kind of person who’s eager to own a piece January/February 2012 Maine Ahead >> 25

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“I think [generics] will be helpful at prodding these sleepy vet-branded companies to actually develop more new products.”

had outstanding investment bankers at First Analysis out of Chicago. The depth of knowledge and the relationships to high-quality institution investors that that investment banking firm brought to the table were instrumental.

Do you have any insights on why Maine seems to have trouble attracting investment capital?

of the company is the kind of person we’re looking for.

How long does it take to get the right person?

It depends, and we’re committed to finding the right person, not to filling chairs with live bodies. Hiring decisions are the most important decisions that you make, and they’re the most important decisions that I make as the CEO. It’s what I spend the majority of my time on right now.

What tools or processes do you use at Putney to help you make good hiring decisions?

We have a very rigorous process here. It is designed around the recommendations of a talent consulting company called GH Smart. There is a book that the founder of GH Smart wrote called Who. We actually were very privileged to have one of the principals of GH Smart join our board of directors for a period of time. He transformed our hiring process, which will have a dramatic, lasting impact on the success of the business.

The GH Smart process focuses on rigorously defining the mission for each position, the measurable outcomes expected for each position, and tying that to bonuses, and then looking for people who’ve demonstrated success achieving similar outcomes over their past career, as well as evaluating for cultural fit. It’s a very rigorous process.

There’s a lot of common sense to it. It’s really about the discipline of defining what you’re looking for and then matching people against that clearly defined set of criteria for the position. It’s been incredibly, incredibly helpful and important here. I’ve really learned a lot.

You recently brought in $21 million in C-round investment capital to Putney. What did that take?

Like everything else, raising money is a function of having a good business plan, a good strategy, a credible story, and good relationships. One of the new institutional investor’s principals, one of the gentlemen who has just joined our board, Bruce Downey, is one of the most successful human generic CEOs and someone I have known and respected and admired for several decades in the industry. We also 26 >> Maine Ahead

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It really isn’t that Maine has trouble bringing in investment capital. It’s that venture capital investing tends to be concentrated in a small number of places, because of critical mass.

Around Silicon Valley, around Boston, there are concentrations of experienced venture capital investors, experienced entrepreneurs, academic institutions of sufficient caliber to spin out scientifically interesting discoveries, and a pool of companies that also provide training grounds for talent. Obviously there are some smaller clusters as well: the mid-Atlantic area around Philadelphia; Austin, Texas. But operating outside of those clusters is always more difficult, because you have less access to all of those pieces that you need for a successful business.

Here in Maine, we are in the midst of an early-stage growth in a cluster of veterinary biotech-related entrepreneurial successes. IDEXX is obviously a very highly successful company, and there are a lot of tremendous people there, some of whom leave and have started other businesses, some of which succeed and some of which don’t.

But there is a nucleus growing here of veterinary, biotechrelated startup businesses that I think can be not only successful but also very important in creating employment and technology investments in the state of Maine.

The companies selling branded meds for animals must not be too happy about Putney’s existence.

We have a lot of fans among veterinarians; I’m not sure we have fans among the branded companies.

The lack of generic competition has allowed the big pharma animal health companies to have evergreen products with limited innovation, and they raise prices on these old products every year. You don’t see that on the human side, because generic competition comes along, and unless you’re innovating and launching new products, you’re dead. So generics help to spur innovation, and I think they will be helpful at prodding these sleepy vetbranded companies to actually develop more new products to treat disease for pets. That’s a great thing. And those provide the generic drugs for the future. Innovation is good.

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READY & ABLE

Maine Public Broadcasting Network has the staff, gear, and mandate to reach every corner of Maine with news, culture, discourse, emergency alerts, and Big Bird, too.

by Henry Garfield & Tori Britton

January/February 2012 Maine Ahead >> 29

rwin Gratz gets out of bed at an hour when most roosters are still snoring, and drives to the Maine Public Broadcasting Network’s Portland studio in the dark, arriving just after four in the morning. Legend has it that he stores a cot somewhere in the building in case a snowstorm threatens to keep him from his thousands of listeners who begin their day with his popular radio program, Morning Edition.

“For years and years there was a fold-up cot in one of the back studios,” says Lou Morin, MPBN’s director of marketing and public relations. “If it looked like it was going to be really nasty, he’d sleep there just to make sure that he would be on the air on time. I haven’t seen one in the new space.

We haven’t been in there all that long, so I don’t know if he’s just got it hidden somewhere.”

At any given moment, Gratz’s voice reaches some 30,000 pairs of ears throughout Maine and in spillover pockets in Canada, New Hampshire, and even Vermont. His total audience during the week is around 170,000. When he goes on vacation, MPBN has to warn listeners in advance to head off the deluge of phone calls from his loyal listeners.

Gratz is the producer of Morning Edition, which he has anchored for 19 years. He’s also a past president of the Society of Professional Journalists, an amateur astronomer, and an avid swimmer who has completed five Peaks Island-to-Portland swims. But in the halls of MPBN, he’s hardly 30 >> Maine Ahead

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unique: The network is filled with interesting and accomplished professionals, most of whom have been at their jobs for a considerable length of time.

Suzanne Nance, who hosts a classical music program every weekday, is a talented opera singer who performs throughout Maine and abroad in cities including London and Prague. Jennifer Rooks, television anchor for Maine Watch, spent 13 years in commercial television in Portland and has won two Edward R. Murrow awards, for coverage of Maine National Guard soldiers deployed in Bosnia and Hungary, and for the documentary Citizen King, about independent governor (and former Maine Watch host) Angus King. Chief technology officer Gil Maxwell, who oversees the transmission center in Bangor, has worked for MPBN for 24 years. Vice president for TV and radio Charles Beck spent much of his youth in Europe and is fluent in Swedish. He’s in his 31st year at MPBN. “This organization has a reputation for longevity of its employees,” says Rich Tozier, whose Friday night jazz program emanates from the Bangor radio studio. “It’s a good place to work. You have a lot of people who have put their blood, sweat, and guts into this organization to help it succeed. And we’ve had a lot of alumni who’ve left here and gone on to bigger and better things.” He proceeds to rattle off a list of names of former MPBN employees now working for CNN, National Public Radio, and commercial stations in Boston and beyond.

While MPBN has highly regarded talent, many

Photos: (top) Courtesy of MPBN; (opposite) mark wellman

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“We hear stories of people who have learned English listening to public radio or watching PBS. We are part of people’s lives.” —Lou Morin

Irwin Gratz at MPBN’s Portland studio.

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Job Descriptions Suzanne Nance (top), music director and host of Morning Classical Music, is one of the newer kids on the block, coming to MPBN from Aspen Public Radio in 2007.

In addition to playing music from the network’s vast library, Nance often hosts live musical performances from the Portland or Bangor studios.

Volunteers (center), hundreds of them over the course of the year, pitch in during three major TV and radio fundraisers. Here a team from IDEXX helps bring in $252,719 at a recent Super Thursday pledge drive in less than 12 hours.

Photos: (top) mark wellman; (center, bottoM) courtesy of MPBN; (opposite) daniel lambert/mpbn

Keith Shortall (bottom) is MPBN’s news and public affairs director and a familiar voice during Maine Things Considered.

Shortall has received many awards for excellence in reporting. He, like most of the news crew, works out of the Portland office.

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MPBN’s Jennifer Rooks and Angus King, former Maine governor and author of the new book Governor’s Travels, chat while technician Eric Bunford tidies King’s jacket before the Maine Watch cameras roll.

don’t realize how popular MPBN is in terms of ratings, especially when it comes to radio. MPBN’s total listening audience is larger than that of any commercial radio station in the state. While the television ratings aren’t as spectacular, polls consistently show that PBS is the most trustworthy brand on TV for both children’s programming and news.

“We serve a diverse population across the state that we’re touching every day,” says Erin Merrill, who works in the fundraising arm of the Lewiston office with major donors and special events. “Parents will tell us that we are the only station they’ll let their kid watch during the day, because they know they won’t see an ad for violent video games or sugary snack foods.”

The core of what MPBN provides, says chief financial officer John Isacke, simply would not be provided by commercial broadcasters. “We devote half of every weekday to educational offerings that other broadcasters, even specialty broadcasters, are not doing.”

Gil Maxwell, who makes sure the orchestra of sound waves, TV signals, and digital information is always flowing, stands in front of a bank of TV screens display-

“At the blink of an eye, we can communicate with every individual in the state of Maine.”

—Gil Maxwell ing children’s programming currently on air. “If it wasn’t for public broadcasting, would Sesame Street have ever started?” asks Maxwell. “Think of our programming as research and development. The ultimate goal is not to make money, but to educate, inform, and enlighten. Sometimes we get a hit.”

Maxwell makes sure that every household in Maine with a television can tune in to the educational antics of Big Bird, Barney the purple dinosaur, and Sid the science kid. With five television transmitters in strategic locations around the state, MPBN is the only broadcast entity that can touch the entire state.

MPBN also runs seven FM radio stations, with an additional seven towers, which likewise provide statewide January/February 2012 Maine Ahead >> 33

High Alert When emergencies strike, MPBN’s statewide signal is the state’s megaphone.

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The Maine Public Broadcasting Network is the only broadcaster in Maine with a statewide footprint. If there’s an emergency, you’ll find out about it on MPBN first.

“We are the focal point of the emergency alert system in Maine,” says Lou Morin, director of marketing and public relations.

What that means is that MPBN makes its statewide system available to federal and state authorities in the event of an emergency that requires rapid notification of the state’s population.

“If there were an earthquake or tsunami or terrorist attack or something like that, the warnings come from us first, and then get distributed to all the local radio and television stations around the state,” Morin says.

“Both multiple federal agencies and state agencies have the authority to step in, take over our broadcast signal on a moment’s notice, and broadcast throughout the state,” says CFO John Isacke.

“And in turn, the other broadcasters can pick up that signal from us.”

To Gil Maxwell, senior vice president and chief

January/February 2012

technical officer, that alone is reason to keep the far-flung equipment in good working order. “We can communicate with every person in the state of Maine. How valuable is that?”

The bulk of the system has been in place for half a century. Because Maine is large and sparsely populated, statewide coverage means the installation and upkeep of equipment in remote locations. Veteran technicians tell stories of driving through blizzards and accessing towers with snowmobiles to get the signal out.

One of MPBN’s towers stands among the wind turbines on Mars Hill in Aroostook County. It’s now accessible via a service road built during the construction of the wind project; before the wind turbines were erected, technicians had to walk up an old cow path.

Maxwell says the system is a good bang for the buck. “What’s the guarantee that your cell phone or your Internet is going to work?” he asks. “A person at home can have a battery and a radio and still get information to tell them what’s going on.” Mainers who were here for the Ice Storm of ’98 remember that well.

Photo: courtesy of mpbn

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coverage.

It’s all done from three studios, in Portland, Lewiston, and Bangor. The Lewiston station houses MPBN’s television studio, where the public affairs program Maine Watch with Jennifer Rooks is recorded.

The administrative staff is also based in Lewiston.

Radio programming broadcasts from the Portland and Bangor studios. The radio studios can link into the National Public Broadcasting network. Stephen King, for example, can sit in the Bangor studio and be interviewed by an NPR reporter in Washington, D.C., and it will sound like they are in the same room. Bangor is also where technicians monitor the transmission equipment around the state.

“We are the result of a merger,” says Morin. “We didn’t set out to have three centers in three different cities.”

The Lewiston facility is the former headquarters of WCBB, the combined television station of Colby, Bates, and Bowdoin Colleges, which began broadcasting in 1961. Two years after that, WMEB-TV began broadcasting from the University of Maine at Orono. The Portland station grew out of a similar program at USM. On the radio side, WMEH-FM began broadcasting from UMaine in the early ’70s, and was joined by five other stations around the state over the ensuing decade. The stations merged to form MPBN in 1992.

The Lewiston studio is in a small building on the edge of town whose dominant feature is the parabolic dish antenna on the roof. The studio itself is tiny. At the center is the round table where Rooks interviews her Maine Watch guests. From her seat she can read from a teleprompter and check a monitor to see the show as it’s being recorded.

Off to one side stand three lecterns resembling those used on Jeopardy! MPBN is planning to use them when it revives its iconic but long-dormant Maine-based game show, So You Think You Know January/February 2012 Maine Ahead >> 35

Dave Sharpe (left), lead technical operator, and CTO Gil Maxwell in MPBN’s Bangor facility.

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Maine, in 2012.

MPBN runs four channels concurrently, their main broadcast channel and three sub-channels: PBS Kids (24-hour children’s programming), CreateTV (featuring cooking and other instructional shows), and MPBN World (featuring round-theclock news and public affairs programming). As Morin explains, “Not everybody had kids; there are grandparents and other viewers out there who want to watch public broadcasting programming, but not necessarily Curious George.”

The most popular television broadcasts, by far, are the annual high school basketball tournaments in February. That’s a lesson MPBN’s strategic planners are taking to heart as they try to map out the network’s future.

MPBN’s last five-year strategic plan, Morin says, expires in 2012. The committee charged

January/February 2012

with writing the next five-year plan—which will include MPBN’s new president, Mark Vogelzang, who succeeds retiring CEO Jim Dowe—will have to look at the rapid transformations brought about by the switch from analog to digital broadcasting, and the thinning line between television and computers.

“There’s only a certain amount of broadcast spectrum,” Morin says. “It’s finite, and there’s increasing competition with cellular and broadband and first responders. It’s getting crowded. That’s what the transition to digital was all about. The digital broadcast technology of today uses vastly less spectrum than the old analog technology.”

Hence, MPBN was able to broadcast additional sub-channels after the switch to digital. But more change is certain.

“Our new plan makes the point of not referring

Photo: mark wellman

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to television, but to visual content. The delivery mechanism may be in flux, but we will still be producing visual content.”

As more people are able to watch Nova and other shows online via video on demand, they eventually may not need MPBN’s TV signal, Morin admits. “What will differentiate us in the future is the creation of local content.”

On the TV end, in addition to reviving So You Think You Know Maine, MPBN is negotiating with the Maine Principals Association to air more scholastic events, such as the state spelling bee and high school jazz competitions.

On the radio side, MPBN’s local news content is already well-known and respected. MPBN employs eight news reporters, whose numbers include veteran journalists covering the capitol and other hot spots around the state, led by news and public affairs director Keith Shortall.

An additional reporter will soon be hired to cover the midcoast area; that person will have a desk at the Portland office but will work mostly from the field.

On the web at www.mpbn.net, three staffers work full-time updating content throughout the day and responding or anticipating the constant changes in technology offerings and user expectations.

All this takes money. And budget-conscious government officials often look at “soft” areas of the budget like public broadcasting when contemplating cuts.

“Government funding is at risk, both at the federal and state level,” Isacke says.

In its initial budget proposals, the LePage administration eliminated the state appropriation for public broadcasting.

Cooler heads prevailed, but MPBN will still see less revenue from the state this year. “We were successful in convincing the appropriations and financial affairs committee that eliminating our funding was not a good idea,” Isacke says, in part because MPBN is the focal point of the state’s emergency alert system (see January/February 2012 Maine Ahead >> 37

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sidebar, p. 34).

MPBN’s annual budget is approximately $11.5 million, 64% of which comes from membership donations and business underwriting. The annual appropriation from the state makes up another 19%, and federal funding and grants make up 14%.

Maine Ahead --Philanthropy Issue “We get grants for this, that, and the other thing,” Morin says. “We just got a grant for about $200,000 to upgrade our cameras to high definition. We’re HD capable in broadcast, but that’s only good if you have the HD cameras to send the signal out.

That grant will pay for four HD cameras.”

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January/February 2012

Annual operating budget: $11.5 million Positions: Technicians, electronic engineers, camera operators, radio operators, on-air talent, fundraisers, volunteers.

Future challenges: Actual and proposed cutbacks in state funding; cost of infrastructure and technology.

To learn more: www.mpbn.net

do with Lou, when he took over our corporate support two years ago.”

Lou Morin has since become marketing and PR director, and corporate support is now led by Susan Tran.

“The job is a lot easier,” Morin says, “when you have the radio ratings that we do. We hear stories of people who have learned English listening to public radio or watching PBS. We are part of people’s lives. When I hear things like that, it makes me feel like I’m working for the good guys.”

But even good guys sometimes have to fight battles.

“We welcome the opportunity to describe what it is we do and the reason for our existence, which needs to be done every couple of years,” Morin says. “People can start to take us for granted. They turn on the TV and there’s Maine Watch; they turn on the radio and there’s All Things Considered. A lot of people don’t know how that all happens.”

Another challenge Morin sometimes faces is criticism from the political right that its programming slants liberal. “A lie that’s repeated often enough becomes accepted as wisdom,” he says. “I defy you to find a regular station that does what we do. We run public affairs programs in

the afternoon. Often the speakers are very conservative. We give them half an hour to an hour to expound on whatever they want to talk about. Right-wing radio doesn’t have those kinds of extended, balanced, civil conversations.”

But Morin says that funding worries are a constant, no matter what political party is in power. “Administrations come and go,” he says. “The cutting of our funding and the pressure to do so knows no party affiliation. Times are tough.”

In private sector broadcasting, ad sales are the lifeblood of commercial TV and radio. For MPBN, cash flow depends on the success of its fundraising staff.

Fundraising is subdivided into several departments. Four people work full-time with major donors, defined as those members who give $1,000 or more annually.

MPBN has approximately 300 such members, some of whom give substantially more. Five sales reps and a manager comprise the corporate support department, which encourages businesses to underwrite programs and receive on-air recognition for doing so. An additional five employees work with the majority of MPBN’s membership, sending out reminder notices and the DVDs and CDs given out as thank-you gifts, and handling inquiries.

Five more part-time tele-fundraisers work from a small phone room five nights a week.

An untapped—or perhaps undertapped— source of potential new revenue lies outside the state’s boundaries, in the parts of Canada reached by transmitters in Calais, Fort Kent, and Presque Isle. MPBN has recently created a nonprofit entity in Canada, with a Canadian board of trustees, so that, for the first time, donations made to the network by Canadian members will be tax deductible in Canada. And MPBN is negotiating with several cable providers in New Brunswick and Nova Scotia to carry their television content.

All told, MPBN has between 40,000 and 45,000 members. “The traditional funding

mechanism for public broadcasting is sort of a three-legged stool: government funding, corporate funding, and donations and foundation gifts,” Isacke says. “The longest leg is individuals.”

While the fundraising staff works to keep the cash flowing, keeping the information flowing is the job of chief technology officer Gil Maxwell in Bangor. The nerve center of the whole operation is housed in what he describes as “an old chow hall” left over from Dow Air Force Base, which closed in 1968. The building is now part of the University of Maine at Augusta’s Bangor campus, near the airport.

It’s a maze of small rooms and corridors.

There are three radio studios. A music library is filled with CDs, vinyl records, even some old 78s. The lunchroom serves as a phone room during pledge drives. The biggest visual wow is a room full of flat-screen monitors and data screens showing the status of signals emanating from a dozen towers in a dozen different locations. The technical heart of the facility is Bangor’s bank of electronic servers, senders, receivers, compressors, computers, and all the other hardware needed to keep the system operational statewide.

“The more you know about how this stuff works, the more it overwhelms you sometimes,” says Maxwell, who keeps up with new developments by teaching live sound wiring and electronic troubleshooting at the nearby New England School of Communications. The reliability of MPBN’s daily reach is something he’s proud of.

“You have a mechanism that is built and operational, and tested every day,” Maxwell says. “Every day you can turn on your radio and know it’s there. At the blink of an eye, we can communicate with every individual in the state of Maine. That infrastructure’s in place, and the cost to maintain it is peanuts compared to the cost of building out a whole new system. And, as an extra benefit, you get public radio and public TV.” January/February 2012 Maine Ahead >> 39

Roundtable

40 >> Maine Ahead

January/February 2012

Is Your Business in

trouble?

If your expenses are higher than your revenues, then your company is not well. Jacques Santucci, Mary Weickert, Dan Walsh, and James Ebbert offer potent medicine, though it may be hard to swallow.

by TORI BRITTON • IllustrationS by M. Scott Ricketts

n 2006, a mere 1,250 businesses filed bankruptcy in Maine. Since then, bankruptcies have more than doubled, with an all-time high, so far, of 4,100 in 2010. That’s a lot of Alka-Seltzer.

Some economists say having some businesses close is ultimately good for the marketplace. It’s a way of correcting excesses, thinning the herd, a pecuniary version of Darwin’s survival of the fittest.

Small comfort to the businesses’ owners and employees. In a state like Maine, where small enterprises are the norm, the fall of a business is all of life’s top stressors rolled into one. Financial hardship. Job loss. Moving.

Divorce. Breakup of the family. Death of a loved one. People who spend more time together than they do with their own kin, who sometimes have solved problems together for decades, are unceremoniously dispersed.

All the things the company provided—products, services, jobs, business for other businesses—go poof.

The four experts in this roundtable don’t like “poof.” They want to help troubled Maine businesses turn the corner.

Dan Walsh, senior VP at Norway Savings Bank, says this requires kiboshing the blame game and taking responsibility for the turnaround.

“When a business owner considers himself a victim, and waits for someone else to save him, it’s not going to happen.” Fellow commercial banker Mary Weickert, from Kennebunk Savings, urges owners to be realistic.

“A turnaround requires time,” she says, “and it may take several years to establish positive trends on a new, restructured course.”

While bold moves are a must, corporate renewal consultant Jacques Santucci warns that “the most common turnaround mistake is trying to do too much at once.” Turnaround pro James Ebbert, like all the panelists, recommends calling in experts to help. “Let’s face it—most executives have not been groomed to take a company through a turnaround.”

Is your business in trouble? Let’s face it. Plop in an Alka-Seltzer and turn the page.

January/February 2012 Maine Ahead >> 41

roundtable Roundtable

BUS I N ESS

T U R N A R O U N D

P A N EL I S T S

Eric Uhl Jacques Santucci

Mary Weickert

Principal Opus Consulting Group Santucci’s corporate renewal consulting firm is located in Portland. He is president of the Turnaround Management Association’s Maine chapter.

VP, Commercial Special Assets Kennebunk Savings Bank Weickert has served in commercial banking in Maine for many years and is an active volunteer. She is a graduate of Hobart & William Smith.

Fisher and Phillips Partner Dan Walsh Eric Uhl recently spoke at Director Senior Vice President & Maine Human Aurora Management Partnersthe annual Senior Commercial Lender Resources Convention.

Ebbert is a Certified Turnaround Norway Savings Bank Professional with a long Walsh graduated at the top of career in crisis management, the 2010 class of the ABA Stonier turnarounds, workouts, and National Graduate School of mergers and acquisitions.

Banking. He lives in Falmouth.

James Ebbert

hat are the signs that indicate a business is in financial trouble?

What early warning signs do many business owners/managers ignore?

Dan Walsh: It becomes obvious to the bank that a business is in trouble when we see delinquent loan payments; failure to pay real estate, income, payroll, or sales taxes; or inability to provide financial statements to the bank.

By the time these signs are present, it is late in the game, and there are fewer options to save the business.

Earlier signs of trouble are declining sales trends, losses, stretching of accounts payable, or loss of a primary customer. Some small businesses fail to produce, read, and react to monthly financial statements, thus missing the early warning signs. The bank is likely looking at your financials annually or maybe quarterly. A business owner should be reviewing them more often than that.

Jacques Santucci: The lifeblood of a company is pos-

itive cash flow. When the operating cash level becomes lower, or the company needs to draw more on the line of credit or push vendor payment over the term limits, the management of the company needs to react and analyze the situation.

A business owner can tend to be overly focused 42 >> Maine Ahead

January/February 2012

on its sales, its product, its activity, or its employees, and not realistic about key performance indicators of the company such as its gross margin level, the trend of overhead expenses, or its liabilities.

We have seen troubled situations created by the lack of focus on the core activity and cash being used for new and unrelated developments or on investments that were not planned properly, creating unnecessary stress on the cash situation.

Another sign is the inability of the top leadership to delegate and share information, particularly in family-owned businesses, masking potential financial issues.

Mary Weickert: At Kennebunk Savings, we’ve seen a

number of people who are affected by the economy often in ways that are beyond their control, and so we make every effort to work with our customers to help them weather difficult periods. Some indicators of trouble we see are deposit account overdrafts, delinquent loan payments, and might also include an unusual increase in payables, increased or new debt, and deferred liabilities.

To avoid difficult times, it is best if business owners can adjust and respond to early indicators that things aren’t going as well, such as watching for changes in their cash flow, acknowledging their true expenses, and/or completing an analysis about what lines of business may or may not be

most profitable.

From a workout professional’s perspective, cash is king. Declining cash flow should be investigated for the underlying reasons. Declining revenues would be obvious, but look closely at the business’s gross margin and how it stacks up against the infrastructure costs to support it. Different costs as a percentage of revenues provide insight.

Where possible, compare them to other companies in the same business.

While GAAP earnings [earning calculated by applying generally accepted accounting principles] are important and one factor used by lenders in evaluating credit, cash is what drives a business’s success. As an example, think of the heavy string of GAAP losses posted by Ted Turner’s CNN at its inception; its cash flow kept it alive to become what it is today.

James Ebbert:

In the current economy, do cash flow problems more often come from a lack of income or from too much spending/high costs?

No one, except politicians, promises year-after-year economic growth. The major problem behind many failures in the past two years has been too slow of a reaction by managements to adjust their cost structures (overhead) to the falling demand caused by the worldwide economic downturn. Once you fall behind the cost curve, you may not be able to catch up. Admittedly, this can mean gut-wrenching decisions related to reductions in compensation, including benefits and layoffs. When making decisions of this nature, never think about how it will impact a particular individual; rather, think about how it will impact the survival of the enterprise.

James Ebbert:

Mary Weickert: In our view, the impact of

our economy cannot be overstated; when revenues, profits, and margins are strong, one is likely to be less focused on cost management.

Because our market is weighted in the hospitality industry, we’ve seen businesses that are hard hit due to the economy’s effect on consumer disposable income, including increased oil and gas prices. With less disposable income, reservations and volumes have decreased, and those that do

travel are often shortening their stays and spending less on food and extras. Furthermore, increased heating costs have been challenging to absorb. I have seen numerous business owners make the difficult decision to close for the winter months in a drastic effort to reduce overhead.

Overall, cash flow problems do not originate only from lower sales or changes in the cost structure.

Jacques Santucci:

January/February 2012 Maine Ahead >> 43

roundtable Roundtable

“When we see a small business fail, there is too often a manager/owner who did not generate, read, or understand their financial reports.”

—Dan Walsh

Often they begin when the company and its management fail to adapt to changes in their business environment that result in lower sales or changes in the cost structure.

The global economy is constantly changing and tough economic times will always be a part of the business cycle. Some companies resist these pressures more than others, particularly the ones that have a clear business model, use solid forecasting and reporting mechanisms, and do not hesitate to identify and address all potential problems.

Dan Walsh: In the current economy, it is more likely that

we will see a business struggling with a lack of income because of the lack of demand and the prolonged weakness in our economy, rather than a high cost structure.

Each business’s cost structure is so unique that it is hard to say there is any one place that costs are most often too high. The business owner/manager needs to take a hard look at every expense, line-by-line, to find a way to fit expenses to the company’s revenues.

What role do inadequate financial reporting systems have in failing businesses? What does a good financial reporting system look like?

Dan Walsh: A business should be generating an accurate income statement, balance sheet, and accounts receivable and accounts payable agings monthly, and the owner/manager should understand how to read those reports.

When we see a small business fail, there is too often a manager/owner who did not generate, read, or understand their financial reports, or there was a bookkeeper who was not accurately inputting the information.

For example, several times we have seen a bookkeeper book loan proceeds or capital contributions as income on the income statement, rather than booking them on the balance sheet. This obviously overstates income, and a

44 >> Maine Ahead

January/February 2012

savvy owner/manager should recognize this type of error and other similar errors upon review of the reports.

Jacques Santucci: It is difficult to make a generality regarding the role of an inadequate financial reporting system in a failing business. The question is first: Are the business managers reading the financial reports regularly? Are the indicators chosen by the management appropriate? In the case of the financial statement; is the chart of accounts correctly set up, representing an accurate view of the business? Is the record keeping done accurately, classifying the information in the appropriate buckets?

We have seen a wholesale company that issued a daily gross margin report of over 150 pages in small print and in no particular order. None of the five managers of the company were looking at it. Who has the time to review thousands of lines in search of an anomaly? It took them five weeks to find an error in purchasing which led to a significant negative gross margin and cost the company thousands of dollars.

Following the error, the thick gross margin report was replaced by a one-page report showing only the major issues.

Inadequate financial reporting makes it difficult for an owner or manager to identify and respond to challenges that can ultimately cause a business to fail.

A business cannot evaluate their business plan and projections without monitoring the makeup of their revenue stream and expenses on a regular basis. Quickly identifying and responding to an issue such as an increase in labor costs can make a difference to the bottom line within the quarter, as opposed to looking back at year-end.

Today, small businesses have many affordable options to utilize accounting software that provide comprehensive tracking and reporting. A good system provides the user with the ability to generate a variety of reports beyond the standard profit and loss statement and balance

Mary Weickert:

sheet. Receivables, payables, and any specific category report can be generated for any given period. It also enables the user to compare data for the same period year over year.

Having been in the workout profession for 20 years, it boggles my mind how many companies do not know the true costs of their manufactured products or services. This can be the result of poor financial reporting, or simply ignoring what the reports are saying.

Examples of inadequate information are endless, ranging from failure to account for production downtime for machine changeovers to simply not including obvious expenses such as shipping. I have seen managements “fudge” costs in order to justify doing business with high profile customers, such as the big box stores. A construction company client ran 20% over on a fixed-priced contract and did not realize it until a month after the project was finished.

Finally, often there are too many reports with too much detail that intimidate (encourage) one to ignore them. A CEO should receive a daily one-page report showing the business’s key production and financial parameters.

James Ebbert:

What are banks looking for from their troubled business customers?

What makes them nervous?

James Ebbert: Lack of communication and last minute surprises. The last thing any lender wants is a phone call out of the blue at 4 p.m. on a Thursday afternoon saying, “Joe, we have a problem. Tomorrow is payroll and we don’t have enough to cover it. We need another $100,000.”

Believe it or not, this happens when many borrowers begin to fail. This last minute, frantic call prompts the follow-

ing thought process from the lender, who may or may not communicate it, depending on his or her mood. “First, did the company just discover this? Second, why didn’t you call me weeks ago to indicate you were experiencing some difficulties?

Had you done that and come to me with a plan on how to get over the crunch, I could have worked with you. Now you have put me in the impossible position of deciding whether or not to close down

your company by asking me to fund your payroll.”

Mary Weickert: It’s true that we, as banks,

like to have our loans paid back! Luckily, as a mutual, community bank, we’re able to look at our borrowers who are having trouble with compassion and patience.

There’s an art to working with businesses that are having a hard time and developing a mutually agreeable plan.

January/February 2012 Maine Ahead >> 45

Roundtable roundtable

A successful workout action plan must accurately identify and address the problems. Borrowers are most successful when they show a willingness to accept change with patience and a positive attitude. It can be very difficult for owners to make the hard choices of prioritizing payments.

Ultimately, though, we both have the same goal: having their business be productive and profitable and paying their bills.

Banks get very nervous when customers don’t want to work with them, or are unwilling to face the realities and reasons behind their troubles.

First and foremost, we would like the customer to communicate clearly with the bank. Ideally, a borrower can formulate a plan to address the problem, and that plan can be discussed with the bank.

What makes me nervous is a customer who does not return phone calls, does not

Dan Walsh:

Once it’s clear that the company has cash flow issues, a plan to address the situation must be put in place and all stakeholders, including the bank, must participate. Cash flow management is critical and banks typically require a cash flow forecast with regular updates and realistic assumptions.

The lack of vision of the management, unrealistic expectations, and inability to illustrate past performances or financial forecasts would likely create stress in the banking relationship.

What are some creative ways you’ve seen businesses get themselves out of trouble?

Jacques Santucci: Every situation is different and you need to combine traditional management methods, creativity, and a realistic approach to the problem to de-

with lower margins and the ones that require too much time and break employee morale. That approach combined with a strong grip on cash management and open communication with their partners, particularly major vendors, brought the company back on track in a few months.

Dan Walsh: The most successful strategy we’ve seen has generally been shrinking the expenses to right-size the company to the new revenue stream. We have also seen businesses sell unproductive assets (such as land held for development or an unproductive location) in order to generate additional cash or retire some debt. Another alternative is for the business owner to sell personal assets in order to generate cash to contribute to the business.

James Ebbert: One of the first places to look for cash is stale inventory—raw materials

“An interesting approach that we have seen . . . was to keep the top managment and incentivize them on ‘laying off’ their least profitable customers.” —Jacques Santucci

acknowledge there is a problem, or doesn’t fully disclose information to me.

A lender or an investor does not want to run the business on a day-to-day basis. A bank usually lends to a company based on the ability of the company to keep the value of its collateral and to execute its business plan while generating cash. Although I am not a banker, my experience is that a financing institution is expecting a troubled customer to be proactive and realistic about the situation while keeping the bank informed.

Jacques Santucci:

46 >> Maine Ahead

January/February 2012

velop a feasible plan to get a business out of financial trouble. The most common approaches include adapting your business model, selling assets, or looking at your cost structure. You sometimes hear of companies in financial trouble laying off employees, usually higher paid ones to reduce expenses. Employees are typically the best assets of the company.

An interesting approach that we have seen while a company was trying to get out of trouble was to keep the top management and incentivize them on “laying off” their least profitable customers—the ones

and finished goods. It is not uncommon to hear, “We can’t sell it for that because it won’t cover our costs.” Those costs are sunk costs, and holding the inventory represents an opportunity cost. The same applies to equipment that is no longer needed. Excess space (either owned or leased) can sometimes be sold or subleased.

Collection of accounts receivable is another source. Believe it or not, when first being engaged, I often find large amounts of uncollected receivables—even from credit-worthy customers. The client has no collection program and no individual

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roundtable

“Many seek appropriate professional advice at the start-up of their business, but use it only as a onetime service.” —Mary Weickert

effectively working the accounts.

Stretching out accounts payable is another possibility, assuming they are not already stretched to the point where suppliers are refusing to ship.

What are some of the preventable problems you’ve seen that might not have happened if the business had sought professional advice earlier?

There’s no substitute for professional guidance and putting that guidance to good use. It’s important to have a solid legal and accounting framework on which to build any new business venture. Many seek appropriate professional advice at the start-up of their business, but use it only as a onetime service.

I have seen a number of borrowers successfully grow their business, yet the legal structure and accounting practices remained unchanged. In one instance, multiple real estate investments were made and supported by business cash flow; however, individual accounting was not set up for each property. As the economy slowed, the borrower began to experience cash flow problems, and they were unable to identify the real underlying problems and react quickly. Many of the problems the owners experienced could have been minimized had they sought professional guidance to help manage growth and change.

Mary Weickert:

Dan Walsh: Your accountant should be more than just the

person who prepares a tax return for you once a year. If you don’t know how to read your monthly financials, ask for a lesson. If you don’t understand your financial reports, it’s unlikely you can solve the financial problem.

You should also feel comfortable using your banker as a sounding board. There should be more to your banking relationship than just “renting money” from the bank. Your banker may be able to give you some perspective on the issues you are facing.

48 >> Maine Ahead

January/February 2012

The business owner in financial difficulty may also get value from hiring a seasoned reputable turnaround professional to assist with a plan. It is more likely your turnaround plan will be realistic if you hire the right professional. An attorney is also an important part of the professional team. If your regular business attorney does not have a background in working with troubled businesses, he/she may be able to refer you to someone who does.

It is difficult to justify more professional expense when cash flow is tight, but having a good team of professionals behind you may mean the difference between a successful turnaround and liquidation.

James Ebbert: The most serious problem a workout professional encounters is denial on the part of the CEO or owner that there really is a problem. Time and time again I hear: “It’s the bank’s fault”; “The bank doesn’t understand”; “It’s the economy’s fault”; or “We’ll get a big order next week which will solve our cash problem.”

This type of attitude is most certain to kill any hope of a successful turnaround.

Employees’ attitudes mimic those of their leaders, and if their leaders are blaming everyone else, so will they.

Turnaround plans often involve operational changes and employee sacrifices. When implementing a turnaround plan, I always tell employees that in a turnaround, I often value attitude more than experience. If they cannot accept the changes and get on board, it is better to leave now.

Often CEOs begin to bend to the pressure, making promises of all kinds they cannot keep. This, unfortunately, puts employees down the line into uncomfortable positions. A good example are accounts payable personnel who will often tell an angry vendor that the check is in the mail or that it will be sent next week, even if they know that not to be true.

Retaining professionals early in the process prevents these mistakes and brings credibility to the situation. And, yes, they are not cheap and they will want retainers.

worth the trip

>> Kids See ’Em

Getting there: • Take I-95 to Exit 184/Union Street . Take Union Street/222 toward downtown.

• Turn left onto Main Street. Maine Discovery Museum is one block down on the right. Learn more at www.mainediscoverymuseum.org.

50 >> Maine Ahead

January/February 2012

eeping young children entertained over long stretches of time like February vacation can get old fast. Fortunately, Maine’s largest children’s museum is actually fun and relaxing for parents, too, and will happily occupy any kid whose age is still in the single digits.

Completed in 2001, the Maine Discovery Museum, occupying what was once Freese’s department store, is more like an educational playhouse than a traditional museum. Learning takes place by doing, so the ability to read or pay attention to instructional kiosks is not required. Lessons are often supersized, including giant body parts, oversized illuminated pegs, and a pump-your-own waterway.

Interaction is irresistible: Kids can go (safely) atop a two-story treehouse, put

on costumes, and walk inside the pages of Maine-made storybook classics like Charlotte’s Web and Goodnight Moon.

The hottest Maine Discovery Museum attraction these days is its new Dino Dig. Children (and their archaeologically inclined guardians) can dig through a giant sandbox for bone replicas that are true to size. Budding scientists can match and record their discoveries, and leave with a brochure on how to fossil hunt in Maine.

While digital dazzle is kept to a minimum on most of the displays, the Sounds Abound and Artscape exhibits will satisfy any young techies in tow with the chance to make a video of themselves singing karaoke or to make a wall of digital art by “freezing” their own shadows.

Free bonus: Plenty of seating means kids can discover while parents recover.

photos: courtesy of maine discovery museum

Giant teeth, tiny creatures, buried bones, and life-sized storybooks—kids see ’em all at the Maine Discovery Museum.

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vantage Point

Environmentalist #1 Horace “Hoddy” Hildreth Jr. has given considerable time and money to environmental causes over the years. But the laws he wrote in the 1960s remain his most powerful contributions. by tori britton & Mark wellman n the classic book The 22 Immutable Laws of Marketing, Al Ries and Jack Trout teach that “it’s better to be first than it is to be better.”

In his work championing Maine’s environment, Hoddy Hildreth has managed to be both.

An attorney who hated every minute of law school, Hildreth practiced during Maine’s environmental Wild West, when paper companies were polluting rivers and developers were wrecking wetlands and marring landscapes. Hildreth responded by running for the state legislature, won in 1966, and introduced laws that would become, and remain, the pillars of environmental protection in Maine. They include the law that established the Land Use Regulation Commission and controls development on 10 million acres in

the unorganized territories; he also wrote the Site Location and Development Act and the Wetlands Control Act. While Ed Muskie is recognized as a national pioneer in codifying protection of the environment, on a statewide level, that pioneer is Hoddy Hildreth.

After serving one term, Hildreth continued marshalling change through nonprofits, some of which he helped found. These include the Conservation Law Foundation, Maine Audubon Society, Maine Coast Heritage Trust, Maine League of Conservation Voters, and the Island Institute, which he shepherded for 17 years as chairman of the board.

In all those years of transformational leadership, says Island Institute cofounder Philip Conkling, years when “even a small leak could have sunk January/February 2012 Maine Ahead >> 53

our boat,” he never heard Hildreth raise his voice in a board meeting.

As the son of Maine’s 59th governor, Hoddy Hildreth is as close to aristocracy as it comes in this state, yet he can connect with anyone. He does it, Conkling says, with humor, gentleness, and the quintessential attribute of a lifelong Mainer: common sense.

Where and when were you born?

I was born in 1931 in Cambridge, Massachusetts. So I’m not a native.

What was your early childhood like? What sort of youngster were you?

Oh, golly, I don’t know. I was sort of the middle of the road. I wasn’t particularly studious; I wasn’t particularly athletic; I wasn’t particularly enterprising. But it was a happy childhood.

When you were a teenager, your father, Horace Hildreth Sr., became governor of Maine. How did that change your life?

I don’t know if it really changed my life at all, except that I was able to see things and do things that I wouldn’t have been able to see and do if I had not been the governor’s son. But I was very normal. I went to two years of public school in Augusta while he was in the Blaine House, and then I went away to Deerfield Academy. I don’t remember being particularly different from anybody else. It was quite a lot of fun, actually.

You went on to Bowdoin. What did you study?

What were your college years like?

Top: Maine’s first family from 1942 to 1946. Governor Horace Hildreth Sr.; his wife, Katherine (second from left); and children (left to right) Josephine, Katherine, Anne, and Horace Jr. Center left: Hoddy and Alison Derby Hildreth in the 1960s. Alison, known to friends as Wooly, is a visual artist. Center right: Hildreth in the 1980s. Bottom left: A Peter Ralston portrait of Wooly and Hoddy Hildreth, taken for a 2007 Island Journal tribute. Bottom right: Hildreth speaks at the 2009 dedication of the Fox Islands Wind Project.

54 >> Maine Ahead

January/February 2012

I majored in English. I really liked courses in English and reading, and I had some very interesting, intellectual friends that put up with me. Bowdoin was all male at the time.

It had a very supportive atmosphere and it was challenging. You had to study pretty hard, but it wasn’t a grind, like law school.

I took a semester of my last year at Forman Christian College in Lahore, Pakistan. My father was ambassador to Pakistan at that time. All of the classes were taught in Eng-

photos: (top) Maine historic preservation commission; (center right and left) Courtesy of Hoddy hildreth; (bottom left) peter ralston; (bottom right) David Conover/Compass Light Productions, courtesy of island Institute

vantage Point

vantage Point

lish, which was the second language for the Pakistanis, so it was easier than Bowdoin.

Why did you decide to go on to law school at Columbia?

I didn’t know what else to do. My father was a lawyer. I can remember him saying, “Look, why don’t you go to law school? It’s good training, it teaches you a whole other area that you haven’t been involved in, and it’s a great place to start from if you’re looking for some sort of career.”

So I did.

You married your wife, Alison, while you were at Columbia University. Is that where you met her?

I’d met her years before that; she was a good friend of one of my sisters, but I really didn’t see much of her until I got to Columbia. She was at Vassar and my cousin Charlie dated her, and I was dating this other lady. As it happened, I ended up marrying Charlie’s girlfriend and he ended up marrying mine.

What about Alison got your attention?

She had—and has—a wonderful sense of humor. She was very much a free spirit, obviously talented. She was just fun to be with.

After you graduated from law school, you worked at Pierce Atwood, and became a partner during a time the firm lobbied for some big paper companies. Some of what went on back then, pollution-wise, was unimaginable now. Can you talk about what made you decide to run for the state legislature?

While I was very loyal to my firm, I really didn’t like what the paper companies were doing in terms of the environment, so I made a deal with Pierce Atwood when they first hired me. I said, “I’ll lobby the labor laws and the economic issues, but I don’t want anything to do with the environmental stuff.” After I got elected, though, I resigned from the firm because it would have created a conflict of interest.

As far as politics is concerned, because my father had been in politics and I grew up with the smell of cigar smoke, I was a political junkie in the sense that I was interested in it and in running for the legislature. I ran in ’64, which was the year that Barry Goldwater ran, and you know what happened to Republicans in that election.

I ran again in ’66 and got elected easily, and wrote a lot of environmental laws on things I had seen during my lobbying years that were going on, or weren’t going on. The whole north woods for instance, unorganized territories as they were called, were open to any kind of exploitation.

There were no rules. We were so close to huge populations of people within a couple hours’ drive who wanted to come to the north woods and fish and camp and have camps and so forth, and none of this was being overseen, either by the counties or by the state. So that was one of the areas that I got very interested in and wrote some legislation that finally passed.

“The atmosphere was totally different from the way it is today. There was none of this really mean, partisan bickering. It was just wonderful.”

There were other laws. I can remember when Central Maine Power Company built a power plant on the very fringe of Yarmouth, on a point that stuck out into the bay.

Hardly anybody from the town of Yarmouth was able to see the power plant, which was absolutely dominating the landscape for three or four other towns who were looking right at it, and there was no way to say, “Hey, wait a minute, is this a good place to put it?”

So I wrote a law that said, in effect, that if you’re going to build something big, if it’s going to have an impact, you’ve got to go to a hearing before a board and demonstrate that you’re not screwing things up, aesthetically, as well as it being feasible for this development to occur.

That got passed and it’s still in the books, as is the wildlands zoning laws.

Can you give us any other anecdotes while you were a member of the Maine State Senate?

One thing that was interesting: The Augusta House was still standing, and many of the legislators would stay there during the course of the legislative session, and as a result the legislators really got to know one another. They’d socialize in the evening, gab about things, they’d go out to dinner and so forth, and the atmosphere was totally different from the way it is today. There was none of this really mean, partisan bickering. It was just wonderful.

But when the Augusta House closed, there was no place for them to get together and partisanship started to build.

The legislature became, and still is, highly partisan and competitive. It’s sort of like Congress now, but it didn’t used to be.

January/February 2012 Maine Ahead >> 55

vantage Point

You became president of Diversified Communications in 1979.

“I was put in charge of the search committee . . .

I looked and I looked and couldn’t find anybody as good as myself.”

How did that come about?

It is a family-owned company; I was their outside legal counsel. We parted company with the president we had, and I was put in charge of the search committee to find a replacement. I looked and I looked and couldn’t find anybody as good as myself. [Laughs.] I really did interview a number of people, but I just kept coming away with, “Oh, no, we need somebody better than that.”

Were the environmental laws you introduced accepted by both parties?

Diversified Communications has changed a great deal and

By the time I was in the legislature, environmental consciousness was just starting to crop up here and there.

After I got out of the legislature and ran for Congress— unsuccessfully, thank God—I formed an environmental lobby in Augusta and spent a lot of time talking to legislators about environmental things.

Nationally, as well as in Maine, there was a great increase of consciousness, and it was bipartisan. I happened to be at the right place at the right time and was very successful as a lobbyist for this organization at getting some of these laws passed—two of which I had written and introduced when I was in the legislature but they didn’t pass. Those defeats came at the hands of a group of Republicans and a group of labor-oriented Democrats. But because the atmosphere was changing, most of the Republicans really got on board.

grown a great deal since then.

What was the name of the lobbying group?

It started out as Coastal Resources Action Committee. For several years, I would go out and raise the money for a lobbyist. We hired three or four different lobbyists from year to year, one of whom was Angus King, who was a very effective lobbyist and did a great job.

We also had a really good board of directors. I was able to recruit a lot of people who agreed to give their names on the basis that they did not have to come to board meetings, so I ended up with extraordinary people on the board like Douglas Dillon and Buckminster Fuller. We put up a masthead that had those names in really large letters, and it was easy for me to raise the kind of money we needed to pay the lobbyists.

Did you go back to practicing law, too?

When I got through with politics, Pierce Atwood wouldn’t let me come back to the firm. I had alienated some of their clients, so they didn’t want anything to do with me. So I started my own firm, with Harry Richardson.

56 >> Maine Ahead

January/February 2012

Yes, at that time we had just one television station in Bangor, and we had one little trade show in Boston, and we published the National Fisherman. We had already started into cable, because I can remember helping get some of the franchises in some of the towns when I was still of counsel.

The company also bought TV stations and got into cable service, correct?

I think I was just counsel when we bought the Gainesville station; after that, we bought stations in Pennsylvania, North Carolina, and South Carolina, which we later sold.

We expanded greatly in cable in the early ’80s. We were 50th nationally in terms of subscribers, and had cable systems in southern Maine and New Hampshire and Massachusetts. But it became very clear that if you were going to be in cable, you had to be huge. HBO and other services would give quantity discounts, which is understandable, so you had to be really, really big or you just couldn’t compete. So we finally got out of the cable business and decided to concentrate on trade shows.

You started out with one show, in the fishing industry. What other kinds of trade shows did Diversified develop?

We created some and we bought some. We didn’t start the Fish Expo, but it was just a tiny little thing; it was practically in one room. Now it’s huge; in fact, it’s the biggest show that Boston has. Our next biggest show is the Work Boat Show in New Orleans, which is also huge, and we started the European Seafood Exposition. We now have 13 different events in Australia; we have a lot of shows in Canada; we have shows in Europe; we have a couple shows in Hong Kong and India . . . .

You’re global now.

Without a doubt.

vantage Point

Over the years, you’ve also remained active in environmental efforts. Are there any projects or initiatives you are particularly proud of?

Ever since I became president and then chairman of Diversified, my involvement in environmental things has largely been on boards or contributing cash, and I think the things that I’m most proud of are things I was able to do while I was in the legislature. What I’ve been doing since then is sort of indirect. I occasionally go to Augusta and sound off at a hearing.

“My God, what are we going to do?” We knew these bills were coming in LD1, dismantling one thing after another. I think the environmental organizations, for the first time, really, got together in one room and said, “Listen, we can’t be competitive with one another and try to take all the credit. We’ve got to work together.”

They did, and they were able to get across a very powerful message, that this is not what people of Maine really want.

Governor LePage has focused on the “red tape” end of

Your dad died in 1988 at age 85. What was he like and in what

environmental regs. Do you think that is a good thing?

ways are you like him?

Absolutely. I think some of the state employees in the DEP

He was more politically conservative, much more conservative than I am. Economically, I’d say, for his time, he was very liberal, much more liberal than a lot of his fellow Republicans. He had a great sense of humor, he was very athletic. He had a twin brother, identical twin. It was eerie how much alike they were, really. Both he and his brother, Charles, were both very big on keeping the family together and doing things as a family. So the two families were very close and still are.

You are a Republican and an environmentalist. Today, those two philosophies aren’t often in the same camp. You’ve talked about the false dichotomy between robust economy and robust environmental laws. Where does this come from?

In the first place, the environment, in my view, should have absolutely nothing to do with Republican or Democrat or liberal or conservative. I’m a Republican probably out of stubbornness; many times I’ve voted Democratic. But I think that it’s very possible to be conservative economically and still have a great environment.

In my view, the environment is something that Maine, in particular, has that is hugely attractive, more than most other states. It’s just a wonderful place to be. I think a great environment is a wonderfully powerful selling tool to somebody who wants to be in business to hire people and be here for the long haul.

What environmental issues do you see as the top priority right now in Maine?

Top priority right now is to keep the governor and the Republican legislature from screwing up the stuff we already have. I think it was a shock to many people when LePage got elected, and I think during the campaign he certainly projected an attitude that was very unfriendly to the environment. So right after the election there was a feeling of,

“What inspires me is the possibility of smallness: small cities, small companies,

and small appetites.”

just aren’t realistic, they’re not practical. They’re not because they’re safe from being fired unless they do something pretty awful; they have no incentive to be nice to some person who’s trying to get something done, to help him out rather than saying, “You can’t do that.” All I’ve been saying in these things is: Listen, fix the bureaucrats; don’t mess around with the law. Fix the regulations, but leave the law the way it is. These laws do make sense and they are important.

You have worked tirelessly to help protect Maine’s environment. What inspires you? What do you hope your legacy is?

I think what inspires me is the possibility of smallness: small cities, small companies, and small appetites. I don’t travel all that much around the United States, but I do travel to places like New Jersey and Pennsylvania, and I say to myself, “God, I would really hate to live here.” Think of having to commute an hour and 30 minutes to get to work. I can get to work in 15 minutes; I can go home for lunch and get back within an hour. That’s what inspires me about Maine, the ability to do that sort of thing.

I hope to leave for a legacy a greater understanding of, and appreciation for, what we have. I think there are an awful lot of people in Maine who don’t realize how great it is.

January/February 2012 Maine Ahead >> 57

chef’s choice

>> Shanna Horner O’Hea

and Brian O’Hea Academe, Kennebunk

OPENING YOUR OWN inn and restaurant is a gutsy undertaking, even for highly trained chefs.

Shanna Horner O’Hea and Brian O’Hea did it while they were still newlyweds. In the eight years since, the pair has turned The Kennebunk Inn and its restaurant, Academe, into a community anchor. National attention through the show Best Thing I Ever Ate, which featured the O’Hea’s lobster pot pie, has also turned their place into a crustacean-lovers’ destination.

First or early food memory: BRIAN: At age 5, I used to help my Mom roll out meatballs for our family dinner. It continues to be a family staple and they have become a local favorite at the restaurant.

SHANNA: In my baby book my mother listed all of my favorite foods. Ice cream was at the top of the list; it continues to be one of my favorites, not only to eat but also to make, because of its endless combination options.

Early cooking experiences: BRIAN: As a child, at Christmastime ,I would accompany my mother on multiple grocery stops to plan the family supper: the butcher for the kielbasa, the specialty Polish shop for the pierogies, the Jewish bakery for the bread. As a kid, I could not understand why we could not buy all the ingredients at one place, but now sense.

Family influences on your style and taste:

Favorite item on the menu: “Originally a special, Citrus Crab Ravioli was a joint collaboration of ours over a post-shift glass of wine. The execution was also jointly achieved.”

BRIAN: Weekend BBQs and an annual family

­—Shanna Horner O’Hea

SHANNA: I was given a junior cookbook in grammar school and loved trying all the recipes, especially the cookies. And even at a younger age I would make mud pies and Play-Doh eggs, and many creations from my Holly Hobby oven.

camping trip started my passion for grilling and smoking; it continues to be a flavor profile

58 >> Maine Ahead January/February 2012

Photos: mark wellman

as a chef with a focus on quality, it all makes

chef’s choice

that shows up in my cooking from meats to vegetables to sauces.

SHANNA: We moved around a lot when I was growing up, from Rhode Island to California to Chicago. Regional specialties and cultural influences have always inspired my culinary creations.

When you realized you really were a chef: SHANNA: After culinary school, I took a job as a second chef in a private home in New York City, working under the direction of a French chef. This experience really set the bar for me in terms of professional cooking standards.

Later I took a job as a private chef and estate manager for a Jewish family in Westchester, New York, where I needed to prepare the food according to Kosher restrictions. This job challenged me in lots of ways because I had to juggle so many responsibilities.

BRIAN: Shanna and I bought The Kennebunk Inn in 2003. It was this move that really defined me as a chef. Ironically, the first year of running the inn was the least amount of time I spent in the kitchen. I had to learn all aspects of the business from innkeeping, to catering, to menu planning, human resources, accounting, and recreating the restaurant spaces.

Other professionals you admire most: BRIAN: Danny Meyer, not only for his broad range of restaurant skills from back of the house to front of the house but also his range in food establishments from The Shake Shack to Grammercy Tavern.

SHANNA: Michael Boulard, former chef to

A MAINE BUSINESS THAT WASTES MONEY IS JUST UNNATURAL. Start saving energy and money like Old Town Canoes and Kayaks.

the king of Belgium, is the private chef I worked

Before they expanded their operation, they consulted with

underneath in NYC. His pastry skills alone would

Efficiency Maine about ways to save on their energy costs.

make him a standout chef, but he is also equally

By installing high efficiency lighting and a new gas-fired oven, they

talented on every course of a meal. His commit-

were able to save over $40,000 per year and retain a number of jobs.

ment to detail, classical French cooking, and artistry set him apart from any chef I know.

Longtime favorite ingredient: BRIAN: Pork, especially bacon or pancetta, because of its smokiness and natural flavor enhancer.

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SHANNA: Almond flour. It’s a great addition

January/February 2012 Maine Ahead >> 59

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The University of Maine is your state university. Inspire a student. Make a difference. Leave a Legacy.

For more information on planned gifts or how to remember the University of Maine in your will or trust through the University of Maine Foundation, please contact Amos Orcutt, President/CEO.

Two Alumni Place Orono, ME 04469-5792 800.982.8503 or 207.581.5100

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chef’s choice

to pastries to add depth of flavor.

Something about you people might find surprising: BRIAN: I was accepted to the New York City Police Academy when I was in culinary school. I had to make a major career decision whether to follow my passion or the guaranteed pension.

SHANNA: I have dual citizenship in Ireland and the U.S. through my immigrant Irish grandfather.

I hope someday to live or work internationally.

What a perfect day off looks like: SHANNA: One of those perfect Maine days, clear, crisp, and sunny, sitting on the deck in Harpswell with my husband, a glass of wine and snacks, and throwing two tennis balls in the ocean for our golden retriever, Autumn, to retrieve again and again.

BRIAN: Same as above, except with a major league baseball game playing on TV in the background.

>> Academe 45 Main Street • Kennebunk www.thekennebunkinn.com

Hours: Tuesday–Saturday 11:30 am–9 pm

Specialties: Creative comfort food with regional Maine influence.

Accolades: Featured on Food Network show Best Thing I Ever Ate for the O’Heas’ lobster pot pie. First place in bartender competition at Signature Event for “Sage Against the Machine” cocktail.

First-timer’s tip: Dine at the bar, a great way to meet the locals.

Sample menu item: Braised beef short rib, slow-cooked bistro cut short rib, Brian’s garlic, Parmesan cheese tater tots and haricot verts. $27

Directions: Take Exit 25 off I-95. Head east toward Kennebunk/Kennebunkport. Follow Route 35 south to Kennebunk. Once there, take a right at the first set of lights, onto Main Street. The Kennebunk Inn is in the center of town, on the left.

January/February 2012 Maine Ahead >> 61

THE BULL PEN

We Need to Get Our Head Straight Many are buying the right-wing claim that tax cuts will stimulate the economy. History tells a different story.

By ORLANDO E. Delogu

n Maine and the nation, we are caught up in Republican rhetoric that would have us believe that lowering taxes on wealthy individuals/corporations will produce jobs, economic recovery. It’s not true—not in Maine or the nation. Also untrue is the assertion that individual/corporate tax rates on the wealthy are too high—that they are a drag on the economy.

Here is proof: From the Eisenhower presidency to the end of the Clinton era (50 years) we enjoyed long periods of job growth, a buoyant middle class, and generally low unemployment. During this entire period the top federal income tax rate on the wealthy (including capital gains taxes) was far higher than it is today. During the Eisenhower/ Kennedy years the top rate was 91%; from Johnson through the Reagan years, it trended down to 70% and then to 50%. During the Bush I/Clinton years the rate dropped to 40%. Capital gains rates for most of this period hovered in the 25% to 35% range. These comparatively high tax rates did not

Tax cutting—pandering to the wealthy—

has not worked. It has only added

to state and national deficits. deter job growth, or overall economic prosperity.

And they kept federal deficits at acceptable levels.

During the Bush II years, however, tax cutting rhetoric and trickle down economic theories combined to push tax rates for individuals/corporations to their lowest level since the 1930s. The top rate fell to 35%—capital gains rates were reduced to 15%. But these tax windfalls for the wealthy 62 >> Maine Ahead

January/February 2012

did not ward off the worst recession since the Great Depression. They have not prevented high unemployment. They have not stimulated recovery. What these windfalls have contributed to is a growing federal deficit—period.

On the corporate side of the tax ledger, the rhetoric argues that current tax rates put U.S. corporations at a competitive disadvantage with corporations in other developed nations. Bunk. A recent report by Citizens for Tax Justice points out that among 25 developed nations, U.S. corporate tax burdens ranked 21st. Twenty of the developed nations we compete with impose higher (often much higher) corporate tax burdens than we do.

Another report, Corporate Taxpayers & Corporate Tax Dodgers, 2008–2010, points out that though the formal corporate tax rate in the U.S. is 35%, the wealthiest 280 corporations in the country (all profitable Fortune 500 companies) paid one-half of this rate over the three years surveyed.

Their effective tax rate was reduced by subsidies, deductions, credits, carry-back provisions, and other tax loopholes. A third of the corporations surveyed had a federal tax rate of less than 10% and 30 companies paid no federal taxes at all; they each received rebates of taxes paid in previous years. Their federal tax rate averaged minus 6.7%.

In sum, corporate tax windfalls have not warded off recession. They’re not creating jobs. Cutting corporate taxes further, enlarging or extending the current array of tax loopholes in the belief that this will stimulate the economy, seems absurd.

If tax cutting does not create jobs or enable us to climb out of a recession, what does? In a nutshell: an expanded demand for goods and services. In the consumer sector, the pent-up demand spawned by

What are you Missing? recession and economic uncertainty is beginning to give way. An economy can only mark time for so long. Cars and appliances wear out; home repairs must be made.

To facilitate renewed consumer demand, credit (while avoiding the overborrowing of the past) must be made available; responsible lending must be encouraged/ facilitated by private lenders and governmental regulatory bodies.

In the governmental sector, beyond freeing up the nation’s lending arteries, this is the time to create demand by making deferred infrastructure improvements. At every governmental level there are roads, bridges, schools, sewer systems, transmission lines that need to be built and/or repaired. These projects both create jobs now, and set the stage for sustained future growth.

In the corporate sector, we must first recognize that corporations in our country are sitting on more than $2 trillion in cash. This hoarded cash can be used to create a demand for capital investment spending to replace outmoded technologies/equipment/plant. This is the ideal time—income return on cash reserves is low, construction costs are low, labor is available. More importantly, this will immediately create jobs, and also sets the stage for future growth.

Current data suggests that these three sectors of our economy—the consumer, governmental, and corporate—are already moving slowly in desired directions, but too slowly. We need to get our head straight. Accelerating all of these demand curves is what is needed. This will create the jobs, the more robust economy we want. Tax cutting—pandering to the wealthy—has not worked. It has only added to state and national deficits.

Orlando E. Delogu, an emeritus professor of law at the University of Maine School of Law, also has undergraduate and graduate degrees in economics.

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January/February 2012 Maine Ahead >> 63

THE BULL PEN

The Way We’ll Get By Times are tough. All the more reason for each of us to dig a little deeper into our hearts and our pockets. By Perry B. Newman

y now, most Mainers have heard about the Bangor troop greeters, the remarkably dedicated, mostly senior residents of the area who welcome American troops home from Iraq and Afghanistan when their transport aircraft touch down at the Bangor International Airport.

Day or night, the soldiers are greeted with handshakes, hugs, cookies, coffee, free phone calls to family, and the gentle embrace of a community that understands sacrifice and has found a meaningful way to express its gratitude.

Retired, somewhat infirm, and, in one case, living on the margins, three such greeters were featured in the extraordinary 2009 documentary The Way We Get By. At once heartwarming and heartbreaking, the film is really about what it means to love and be loved; to care and be cared for; to realize that in one’s twilight years many of our dreams and wishes may go unfulfilled, and that our lives, in the end, are about those whom we touch and whom we

The institutions and organizations in our state to which many would otherwise turn for food, heat, or a place to sleep are themselves on life support. allow into our own hearts.

If you haven’t seen the film, do yourself a favor.

Go out and buy or rent a copy today.

I’ve watched the movie several times now, and I’m struck, of course, by the dedication of the greeters to their mission. Rising in the wee hours, 64 >> Maine Ahead

January/February 2012

trekking to the airport to wish the troops well in the teeth of a Maine winter, the greeters demonstrate to the soldiers that they are appreciated and that their sacrifice means something.

But much of the film deals with the challenges the aging greeters themselves face. Growing old, dealing with illness, losing loved ones, even losing the ability to fend for yourself—these are things that many of us will confront, and if we cannot count on each other for a hand up, for a shoulder to lean on, or just a sympathetic ear, life’s challenges can overwhelm the best of us.

It’s no secret that many in Maine today are facing daunting challenges. The nation’s economy is only slowly coming back to life, and nowhere is money flowing freely. Federal and state tax revenues are inadequate to support many of the social services upon which Maine’s most vulnerable citizens depend. Thousands of Mainers who have never been out of work are now among the long-term unemployed. The institutions and organizations in our state to which many would otherwise turn for food, heat, or a place to sleep are themselves on life support.

These are the toughest times since the Great Depression, and, not surprisingly, charitable giving has suffered as well.

In its 2011 update, Giving in Maine, the Maine Philanthropy Center noted that total individual charitable giving in Maine declined markedly in 2008, the most recent year for which figures are available, as the economy began its precipitous decline from 2007 levels. Moreover, fewer Mainers claimed charitable tax deductions on their income tax returns.

All told, in 2008, some 147,000 Mainers contrib-

Business

resources to drive success uted more than $402 million individually to charitable causes, a decline of 16% in contributions from the previous year.

Yet as unemployment retains its stubborn grip on the economy, the needs of our neighbors are likely to grow ever more urgent. What to do?

These are questions that keep presidents and governors awake at night, and there’s no quick fix. But it’s clear to me that what will pull all Mainers through these times are the same values and priorities that bring the troop greeters back to the Bangor International Airport, day after day, night after night, come hell or high water.

When all is said and done, it’s our continuing compassion, concern, and outstretched hands that will keep our neediest from suffering further as winter steals upon us. It is what humane communities have done long before Great Societies and complex social safety nets were developed. Those of us blessed with relative abundance must turn to our neighbors and realize that not only do they need us now, but we, as a community, need them.

For compassion and generosity do not merely help those in dire straits; they strengthen the bonds of community among those who are moved to care.

With any luck, the economy will soon improve and more of us will be working.

With revenues rising, the social safety net will be stronger and the future more secure.

Until then, however, we need to care a little more for each other and give a little more to each other. We need to dig a little deeper into our pockets and our hearts.

We’ll all be the better for it.

Ask the folks greeting the troops. I’m pretty sure they’ll tell you, in this life, that’s the way you get by.

Perry B. Newman is president of Atlantica Group LLC, an international business consulting firm based in Portland.

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J. Doe

Please, Hire a Writer y pal Bill Roorbach is an exceptional storyteller. He is descriptive yet concise on the page, and perfectly meandering when he shares a story over a beer.

There is one particular story Bill has told for years, and I often think of it whenever talk turns to good writing and what it means to write well. Bill’s tale has become something of an urban legend, and it has been retold at literary conferences and parties across the country.

The short version goes like this: Bill is at a literary cocktail party. A surgeon approaches Bill and tells him she was so inspired by his lovely, understated memoir Summers with Juliet that she is going to take a six-month sabbatical to write her own book. Bill politely thanks her; this isn’t the first time he has heard such cavalier pronouncements about writing.

“You know, you’ve inspired me!” Bill suddenly blurts 66 >> Maine Ahead January/February 2011

out, his courage no doubt girded by the cold liquor in his tumbler. “I’m going to take six months off and become a surgeon like you.”

Confused and unamused, the surgeon walks away.

Now, Bill’s response was, of course, pitch-perfect, tongue-in-cheek sarcasm. But it points out how casually many people talk about the hard-earned craft of writing.

While it’s commonly accepted that every skill set—be it surgery or stonemasonry—requires practice, hard-won expertise, and years of experience, why do we keep forgetting this is also true of writing?

No one assumes that just because they own a gleaming set of wrenches they are proficient auto mechanics. We accept that we are enthusiastic amateurs fumbling our way through a Sunday afternoon under the hood. So why is it that so many people with a word-processing program fancy themselves wordsmiths?

Illustration: m. scott ricketts

You wouldn’t hire a high school biology teacher to remove your appendix.

Don’t expect a novice to produce professional-quality writing. BY joshua bodwell

The fact that most of us can write does not necessarily mean that we are all writers.

In a wrld whr ths knd of mssg hs bcom accptbl, good writing is actually more appreciated and more important than ever.

Good writing is good communication— and just about everything in today’s small, flat world is about communication.

Just consider the sheer volume of writing used to communicate a business: website content, print materials, advertising, and, yes, gobs of email. Good writing is good business, and good leaders value genuine expertise, invest in their most important assets, and never assume there’s no room for improvement. Whether it’s in our relationships or our professions, it’s never wise to take something important for granted.

While mechanics work in the esoteric language of carburetors and exhaust systems, a writer’s tools are the 26 letters and 14 common punctuation marks that make up the English language. But here’s how that equation looks in literary terms: 26 + 14 = an infinitude of possible expressions.

All of this is to say, simply, that written language is slippery. The ability to speak well is not the same as writing well. Casual emails, texts, and Facebook posts are not professional-grade writing. And getting someone to pay attention to your product or service or cause, in a world filled with noise and distractions, is an elusive art.

Yet if we accept a few fundamental facts, respect the written word, and strive for improvement, we can all become better communicators.

1) Make good writing a priority, not an afterthought. Recognize that great businesses and organizations are built on great communication.

2) Invest in your written communications. Build it into your budget. Take time to get it right. Refine and improve your writing over time.

3) Don’t do it alone. Take what you have,

print it out, and give it to friends, colleagues, or clients for their feedback. Good writing never occurs in a vacuum.

4) Always pass it by a professional! If you can’t afford a professional copywriter for your print materials or online content, for example, work with an experienced editor or proofreader. Professionals see things that novices overlook.

5) Remember that bad writing is bad business. Typos, ungrammatical sentences, or missing words imply carelessness and substandard quality. And confusing or sloppy prose is as disrespectful to readers as rudeness is during a conversation.

6) Never, ever, under any circumstances, use the typeface Comic Sans.

Good writing is, at its very best, invisible.

Like great typography and great architecture, even when you’re not fully aware of good writing, you are imbued with a sense of ease and calm. Nothing jars, clanks, or confuses. Good writing flows, lures you in, and exhilarates.

The surgeon Bill Roorbach met at a cocktail party was correct in one sense: Nearly everyone can write. But it’s careless to assume that everyone can write well. So what’s one to do?

When your car engine is smoking, you take it to the shop. When your kitchen sink is leaking, you hire a plumber. So when dealing with something as crucial as the language you are using to describe your business, services, mission, or cause, hire a writer.

We’re out here, still awake in the predawn hours, sleepless over a semicolon or sloppy adjective. We’re obsessing over a typo or stray comma the way a great CFO obsesses over a balance sheet.

So, please, hire a writer. Either that, or my pal Bill is going to start performing surgery.

Joshua Bodwell is the executive director of the Maine Writers & Publishers Alliance. His website is www.joshuabodwell.com.

January/February 2012 Maine Ahead >> 67

PROGRESS NOTES

Meet Maine’s Movers & Shakers

68 >>

Maine Ahead • SPECIAL PROMOTIONAL SECTION

edge. The Forecast Conference supports all of these functions.

Getting updates from the experts on the various sectors of the commercial real estate market as well as regional updates is invaluable.”

To register for the event and for information on the agenda and other details, please visit www.mereda.org.

PROFESSIONAL EVENTS

On January 26, 2012, the Maine Real Estate & Development Association (MEREDA) will host the Annual Real Estate Forecast Conference and Member Showcase, Maine’s premiere real estate event. Governor Paul LePage will welcome attendees with remarks focused on his vision for the industry during the coming year; other speakers range from The Muskie School of Public Policy’s Charles Colgan, to field and industry experts from southern, central, and northern Maine.

Keith Luke, the director of economic and community development for the city of Westbrook, views the Forecast Conference as “easily the most important commercial real estate event in Maine” and noted he “can’t think of another event that brings together more professionals involved in finance, development, engineering, and construction. I catch up with more real-world dealmakers at the Forecast Conference in one day than I could in a month out on the road.”

During the daylong event, over 500 business leaders, city officials, and industry experts will learn the strengths and areas for improvement for each region, as well as gain specific insights on commercial, hospitality, and residential real estate. During conference breaks, attendees have the opportunity to visit MEREDA’s eighth annual member showcase, where over 60 exhibitors from across Maine can network and market their products and services. Event attendees are eligible for 4.00 broker and 4.00 legal continuing education credits.

“The MEREDA Forecast Conference is a must-attend event for anyone involved in the commercial real estate market in Maine. It is one of those unique business functions that incorporates excellent networking opportunities with knowledgeable speakers who provide practical information that can be put to use immediately,” noted Michael O’Reilly, vice president and senior relationship manager for commercial banking at Bangor Savings Bank. “Working as a commercial real estate lender involves sales, analysis, and industry knowl-

January 26, 2012 2012 Annual Real Estate Forecast Conference & Member Showcase MEREDA’S SIGNATURE EVENT The largest gathering of commercial real estate professionals in Maine, this must-attend event attracts over 500 guests and offers a unique forum specifically geared toward developers, brokers, architects, bankers, attorneys, accountants, and other professionals looking to gain valuable insights on the state of the economy and what lies ahead in the coming months for the real estate industry. Topics to include: an examination of current state statistics and what they reveal about the future of Maine’s economy with an emphasis on real estate and a market overview by property type focusing on both commercial and residential sectors.

Supplementing the conference is MEREDA’s popular Member Showcase which provides an excellent opportunity for members to network and market their products and services.

For more information or to register, please visit www.mereda.org 9:00 AM to 5:00 PM Holiday Inn By the Bay 88 Spring Street, Portland

What MEREDA Means for Maine The Maine Real Estate & Development Association (MEREDA) actively promotes responsible development throughout Maine by sponsoring public debates and forums on emerging issues, convening industry leaders to network and share information, and shaping public policy that impacts real estate development and ownership. Guided by principles of predictability, consistency, and clarity, MEREDA regularly advocates its members views and concerns before state lawmakers and other government officials to shape the outcome of public policy.

The 125th Maine Legislature starts its Second Regular Session on January 4, 2012. This winter and early spring, legislators will consider close to 200 new proposed laws as well as a number of proposals that were carried over from the First Regular Session. MEREDA and its legislative counsel at Pierce Atwood will engage on those proposals that threaten or advance responsible development. Chaired

by Drummond Woodsum attorney Gary Vogel, MEREDA’s legislative committee will meet regularly during the session to review relevant bills and, guided by MEREDA principles, to develop the Association’s position on them.

Then, MEREDA members and legislative counsel will engage in advocacy at the legisla-

tive committee level and, if necessary, during floor debates leading up to final votes.

New bills that MEREDA is likely to address in 2012 include proposals to refine the definition of who is entitled to challenge permitting decisions and to amend the application of Maine’s Site Location of Development Law to previously developed sites. In addition, a major issue carried over from the First Regular Session is reform of the Land Use Regulation Commission (LURC), which governs development in Maine’s vast unorganized territories. MEREDA held a public forum on the issue of LURC reform in September of 2011 to help inform and shape the debate on the future of LURC. Shortly after that forum, Commissioner of Conservation William Beardsley launched a LURC study committee process. The committee will be issuing recommendations regarding LURC reform and these recommendations will likely be turned into legislation, which MEREDA will review and assess.

MEREDA is also heavily engaged in the regulatory process before state agencies in Augusta and is often sought as a resource in regulatory matters. During the summer and fall of 2011, MEREDA participated in a working group convened by the Department of Environmen-

tal Protection to attempt to streamline and simplify shoreland zoning regulations. At the same time, MEREDA participated in another working group convened to examine amendments to Maine’s Site Location of Development Law to reduce duplication between state and local level permitting processes. This issue was initially raised by legislation submitted by MEREDA, and MEREDA will continue to push for a more streamlined process. Other regulatory engagements involve a current proposal to amend wading bird habitat regulations, and an anticipated effort to reform vernal pool buffers.

Public policy is conceived in many different forums; it is then enacted at the legislature and is finally implemented through regulation. MEREDA works in all of these arenas to ensure that policies promote responsible development and that the resulting laws and regulations are practical, predictable, and clear. To best shape these matters, MEREDA informs its members of current issues and ensures that their voices are heard.

To learn more about the Maine Real Estate and Development Association (MEREDA), and how you and your company can become involved, please visit www.mereda.org.

SPECIAL PROMOTIONAL SECTION • Maine Ahead

>> 69

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To get yours listed (first come, first served), go to www.maineahead.com and click on Free Ink. Maine Feldenkrais & Physical Therapy Topsham Founded 1998 A profoundly effective approach to health care, giving a comprehensive understanding of the body’s potential for recovery.

1 Bowdoin Mill Island • (207) 725-7578 www.maine-feldenkrais-pt.com Mainely Murders Bookstore Kennebunk Founded 2011 An independent bookstore devoted exclusively to suspense, crime, and detective fiction, with a stock of used recent and hard-to-find volumes ranges from classics and cozies to tough guys and thrillers.

1 Bourne Street • (207) 985-8706 www.mainelymurders.com Manpower Portland Founded 1948 Providing staffing and recruiting solutions for administrative and light industrial to IT, engineering, F&A, sales, and management.

70 Center Street • (207) 774-8258 www.manpowerjobs.com Environmental Restoration Services LLC Poland Spring Founded 2009 Habitat creation, restoration, and enhancement solutions for governmental agencies, businesses, and individuals. Proficient in hydrology, biology, wetland science, and erosion control .

63 Tucker Lane • (207) 998-5242 www.jonesai.com Pine Tree Process Service Portland Founded 2011 Licensed process server/DCA . Providing court services, legal courier services, and mobile notary signing, statewide.

P.O. Box 8726 • (207) 389-4062 www.pinetreeprocessservice.com Stockfood America Kennebunk Founded 1995 The leading food specialist among image agencies worldwide, providing top quality images for print, web, packaging, and more.

169 Port Road, Suite 41 • (207) 967-5776 www.stockfood.com

70 >> Maine Ahead

January/February 2012

Gorham Business Exchange Gorham Founded 1992 Promoting business in Gorham through education, networking, and events.

P.O. Box 416 • (297) 892-5515 www.gorhambusiness.org

Sebago Technics Westbrook Founded 1981 A 100% employee-owned consulting engineering firm specializing in site development.

1 Chabot Street • (207) 856-0277 www.sebagotechnics.com

New England Rehabilitation Hospital Portland Founded 1986 Maine’s only freestanding acute rehabilitation hospital. Accredited by the Joint Commission.

335 Brighton Avenue • (207) 662-8082 www.nerhp.org

Bhava Yoga School Portland Founded 2010 Fostering devotion for body, soul, and spirit through yogic practices.

500 Forest Avenue • (603) 937-1163 www.bhavayogaschool.com

Zone 3 Fitness Scarborough Founded 2011 Meeting the fitness needs of men and women balancing jobs, families, and busy schedules.

71 U.S. Route One, Suite D • (207) 730-7339 www.zone3fitness.biz

Snapspace Solutions BREWER Founded 2011 Manufacturing custom-designed, earthfriendly living spaces and structures using recycled shipping containers.

55 Baker Boulevard • (207) 907-7850 wwww.snapspacesolutions.com

Valentine Footwear Bangor Founded 2011 A women’s footwear boutique blending style and comfort. Handbags and accessories, too.

115 Main Street • (207) 907-2128 www.valentinefootwear.com Cuddledown Portland Founded 1973 The coziest comforters, pillows, featherbeds, and more, all with a lifetime guarantee.

312 Canco Road • (800) 323-6793 www.cuddledown.com Swanson, Eshelman & Gamage South Portland Founded 2011 A full-service accounting firm offering tax prep/planning, assurance, and consulting.

324 Cummings Road, Suite 201 • (207) 518-8039 www.yourmainecpa.com Cleaning Genies Windham Founded 2008 Residential and commercial cleaning for the greater Portland and Sebago Lakes regions.

31 Cook Road • (207) 892-8822 www.thecleaninggenies.com

Nonantum Resort Kennebunkport Founded 1883 A waterfront resort with 111 guest rooms, numerous meeting rooms, and beautiful grounds, perfect for weddings and events.

95 Ocean Avenue • (207) 967-4050 www.nonantumresort.com Sentby.Us Marketing Network Bangor Founded 2011 Maine’s newest and most innovative email and SMS/text message marketing company.

20 State Street, Suite 207 • (855) 317-8198 www.sentby.us Pro-Found Steuben Founded 2008 Unique, affordable online and offline programs to help businesses and individuals sell personal property, goods, and services.

P.O. Box 145 • (877) 417-7744 www.profoundprocess.com

100 Mile Wilderness Adventures & Outfitters Monson Founded 2011 Shuttles, accomodations, and resupply options for Appalachian Trail hikers and visitors planning to enjoy the north Maine woods.

Outer Pleasant Street • (207) 991-7030 www.100milewilderness.info Allergeena South Portland Founded 2010 A home-based micro-bakery featuring fresh gluten-fee baked goods. Products available for shipping through www.myfreshmaine.com.

24 Grandview Avenue • (207) 671-4397 www.allergeena.com Scotch Hill Inn Ogunquit Founded 1908 One of the oldest inns in Ogunquit offering amazing accommodations. A five-minute walk from some of Maine’s best beaches.

287 Maine Street • (207) 646-2890 www.scotchhillinn.com Burt’s Security Center Hallowell Founded 1974 Solutions for businesses, government agencies, schools, and transportation industries.

49 Water Street • (207) 622-9657 www.burtsinc.com Foglifters Rockport Founded 2009 Offering over 75 varieties of whole coffee beans, loose teas, and spices from all over the world, in bulk or by the cup.

13 Pascal Avenue • (207) 236-8327 www.fogliftersinc.com The Owl & Turtle Bookshop Camden Founded 1970 More than 10,000 titles, with a room dedicated entirely to children’s titles and a marine room that is considered the best in New England.

32 Washington Street • (207) 236-4769 www.owlandturtle.com

January/February 2012 Maine Ahead >> 71

The Way We work

>> Linda Dyer Aesthetician OUT OF THE MANY HUNDREDS OF licensed aestheticians in the state of Maine, only a handful do their magic in a different place every day. As part of the I Do Spas team, Linda Dyer travels across Maine, pampering brides and bridesmaids on the day of the wedding, destressing frazzled workers at their office retreat, or making spa party guests more relaxed and beautiful. While her traveling spa work is her favorite job, she has at least four others, plus “volunteer” work as a proud grandmother.

When and where did you learn to do facials?

I went to school in 2004 at Capillo’s Institute in Augusta for my aesthetician license.

What other type of beauty-related services do you provide?

I’ve been working with I Do Spas for four years now. I provide onsite facials and pedicures for them. I also work out of my own shop, offering manicures, facials, and pedicures, and am licensed for permanent makeup.

Rumor has it this is just one of several jobs you have. Where else do you work, and what do you do?

When I’m not out on an event with I Do Spas, most of my other jobs are all service related for the State of Maine, Augusta Civic Center, and the food industry.

People say it’s hard to find a job these days. Do you agree?

I think it’s easier to find a job if you’re willing to try things you haven’t done before and have a strong work ethic. I also believe it is easier for women to find jobs than men. We work in the cleaning business and waitressing, and there are a lot of jobs in those fields.

Why do you work so hard? Did you have a role model?

I work hard to keep up on my bills these days. The dollar doesn’t go as far as it used to. I never really did have a role model until I met Jody Newman, owner of I Do Spas. She has created something that has been so inspiring to me, something I’ve only dreamed of doing.

Your skin looks great. Do you do anything special to keep looking young? important to keeping fit and staying as young as possible. I believe if you keep your mind and body busy, it also keeps you young. I don’t believe in just sitting around doing nothing.

72 >> Maine Ahead January/February 2012

Photos: ashley ray

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