LU 1288 faces uncertain future at Memphis Utility

http://www.gomemphis.com/mca/opinion_columnists/article/0,1426,MCA_539_2643868,00.html

President search vital to utility's future
Guest columnist Larry Papasan was president of Memphis Light, Gas and Water Division from 1983 to 1991.

February 11, 2004

More than a month has passed since the Memphis City Council rejected Mayor Willie Herenton's nominee for Memphis Light, Gas and Water Division president and asked that a search be conducted to find the most capable candidate to lead the utility.

I find it disappointing that the search has yet to commence, and that it appears unlikely to get under way in the near future.





MLGW is a billion-dollar utility that has been recognized nationally and internationally for demonstrating sound financial and business practices. The right leadership is essential for its continued success, and for the future of the people and businesses in our community. A decision on a new president for MLGW should neither be made nor held up out of political considerations.

Individuals who are dedicated to the welfare of our community should conduct the thorough search that's needed. I propose the formation of a 5-person citizen search committee that would include one member of the MLGW board of commissioners. Such a structure would allow community involvement in selecting the best candidate, while also using the expertise of someone familiar with the utility industry.

The scope of the search should not be limited. Candidates from inside and outside MLGW, from the Memphis area and other parts of the country should be considered. The search committee should be involved in designing the job description, publicizing the opening in appropriate markets, interviewing candidates and recommending to the mayor the person best suited.

Having served as the president of MLGW for eight years, I have a good perspective on the experience and characteristics needed to succeed in this position.

The right leader at MLGW must be a person with strategic thinking and planning capabilities. He or she needs to have the ability to create an environment that encourages the growth and development of future leaders. The new president needs to have the social conscience and compassion to care for the needs of poor and elderly citizens. This person must build a team for the utility's continued success, while acknowledging, appreciating and drawing from the team that has led MLGW to the success it enjoys today.

The new president needs to be customer-focused and possess excellent communication skills to work effectively with the union that represents many MLGW employees, IBEW Local 1288, and with the mayor, the City Council and utility customers.

Finally, and perhaps most important, the MLGW president must be a person with an understanding of the utility industry. Good business sense alone is not enough when dealing with the complex utility industry, where issues such as deregulation and natural gas supplies affect customers and the rates they pay.

As the largest three-service municipal utility in the nation, MLGW must have a leader who can make sound business decisions based on factors affecting the safe delivery of electricity, the purchase and storage of natural gas and the protection of the aquifers that supply Memphis's excellent drinking water.

While the new MLGW president would not necessarily need expertise in all of those areas, it is imperative to find someone who is experienced in one area and possesses the intellect to learn the others.

The 2,600 employees at MLGW are committed to providing safe, reliable and affordable utility services to this community, regardless of who leads them. However, I believe the benefits our community receives from MLGW's valuable and experienced workforce are at risk because of the current uncertainty, and that risk could continue depending on how the leadership question is resolved.

Forty percent of MLGW vice presidents and 56 percent of MLGW managers are eligible for retirement, statistics that present both an opportunity and a potential difficulty. This team of experienced individuals will provide invaluable knowledge and support to a new president. Many MLGW employees stay with the company after reaching retirement eligibility because of their commitment to what they do, but putting the wrong leadership in place could change that practice. This would be a tragedy for the utility and for the city.

MLGW is under the leadership of a capable interim president - board chairman James L. Netters - and an experienced and financially responsible executive staff. They are competently directing the utility to ensure customers receive services as they have in the past.

Nevertheless, the time is now to begin a search for a permanent leader. A reasonable and thorough search could take four to six months to complete. For that reason, a search committee should be formed immediately and begin the work at hand.

I hope the mayor will acknowledge the immediacy of this need and will make it his administration's priority to form a search committee. MLGW's future depends on the resolution of this issue.

Larry Papasan retired in 2002 as president of Smith & Nephew Inc.'s Orthopaedic Division.








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