Power Plant Mother’s Day
Mother’s Day came a week early for the men at the Coal-fired Power Plant in North Central Oklahoma in the year 2000. Instead of the scheduled May 14th Mother’s Day, the Power Plant Men gathered in the First Baptist Church in Pawnee Oklahoma to say goodbye to their Power Plant Mother Saturday, May 6, 2000. That was the day that Juliene Alley, our Power Plant Mother was laid to rest.
You might think that a woman welder spending her time at a Power Plant welding boiler tubes in the dark insides of the boiler during overhaul, or crammed up inside a bowl mill where the air you breathe can be as hot as 160 degrees Fahrenheit would fit the image of a broad shouldered tough woman that you wouldn’t want to meet in an Alley at night. This in no way describes Juliene. If I had a picture of Juliene, you would see a woman of small stature with a slightly worn countenance and a humble but confident expression with a slight smile that had been etched permanently into her face from years of being content with whatever lot in life she had been dealt.
I am not able to say what her life was like before she arrived at the Power Plant in 1985 one week before her 34th birthday. I know she had one son named Joseph Alley and she had been married to a man named Red. For me, her life began when I first met her at the tool room waiting to get a tool from Bud Schoonover. She was being treated with extra care by her welding crew. They were very protective of her at first. My first impression was that she was kind and soft spoken.
I didn’t work around Juliene for quite a while. I don’t even remember if she had worked her way through the Labor Crew as we were required when I hired on at the plant. I worked with Juliene only after the last downsizing when we were on the same cross-functional team in 1994. By that time, the welders referred to Juliene as their “Mom”.
I never heard an unkind word come from Juliene. It may have happened immediately following a Power Plant Joke had been played on her, but since it never would have occurred to me to play a joke on her, I only ever heard kind words from Juliene. I’m sure her son Joe could tell us more about that. Juliene spent a lot of time working with Ed Shiever. They were about the same height and it seemed to me that the two of them were paired often to work the same jobs.
The title “Mom” wasn’t given to her as a ceremonial title just because of her gender. When I watched Juliene with the welders, I could see and hear that she treated each one of the welders as if she was really and truly their Mother. I have heard her scold them, put them in their places, and even calm them down when they needed to be put in “time out”.
Juliene did not die unexpectedly. She died from a failing liver that lasted over many months. It seems to me that her son Joe married his sweetheart Shauna a little earlier than intended so that it was in time for his Mother to attend the wedding in September 1999, eight months before she passed away. The last time I talked with Juliene was when someone at the plant had called her in the hospital in Oklahoma City from the tool room telephone. When I walked in the tool room to get a part, someone asked me if I wanted to speak with Juliene.
When I talked to her, I could tell that she was trying to be pleasant in spite of the knowledge that she only had about a week or two left. I told her I would be praying for her. She asked me if I knew where she could find a new liver. I think I said something like, “I don’t have a spare one myself, but these machinists here are pretty good, maybe we can have one of them whip one up real quick.”
I have mentioned one of Juliene’s sons, Joe. I have also mentioned Ed Shiever, who was a Power Plant Son to Juliene. Here are some of Juliene’s other Power Plant children:
With Ed Shiever, that makes over a dozen Power Plant Sons. I’m sure there are others. (If any others would like to be added, let me know, and if I have your pictures, I’ll post them here).
I attended Juliene’s funeral ceremony at the First Baptist Church in Pawnee on May 6, 2000. The church was crowded that day with Power Plant Men. Some had come from other Power Plants in the state to say goodbye to the Power Plant Mom we had all come to love. Her Power Plant Sons stood up front and said their departing words to Juliene and to share their memories.
I have said in one of my early Power Plant Posts that each time a True Power Plant Man or Woman left the Power Plant that the character of the Power Plant would change. The gift that Juliene Alley gave to the maintenance shop for many years was one of calm and civility. I watched the welders over the years, and some of them began their Power Plant career with a less than “savory” attitude about life. Over the years, I think the affect of having Juliene constantly in their lives tamed the welding shop to mold them into the respectable, caring, fine Power Plant Men that they became. When Juliene left us that day at the Church, she left her character behind in her Power Plant Sons.
In memory of their Power Plant Mother, no character was lost from the Power Plant the day Juliene departed to tend to other pastures. Eight months to the day of Juliene’s death on January 3, 2001, Joseph Edward Alley, her son, joined the ranks of Power Plant Men as he came to work at the Power Plant. The joy of having the actual son of Juliene working in the plant was a reflection of how much we all loved his Mother.
As you can see, Juliene’s family continues to grow. Tomorrow we will be celebrating Mother’s Day. Today, on Saturday, I remember back to Saturday May 6, 2000. The day we celebrated our Power Plant Mother’s Day a week early.
Power Plant Men Learn how Money Matters
Many years ago in my earlier days as a Power Plant Electrician while working on Relays at the coal-fired Power Plant in North Central Oklahoma, Ben Davis, a plant electrician and True Power Man introduced me to one of his favorite Rock and Roll Bands, the “Dire Straits”. One of their hit songs is “Money For Nothing.” About 14 years later, the Power Plant Men learned exactly how to make “Money For Nothing” and other “Money Matters”!
Albert Einstein was once asked what the greatest miracle known to man is, and he replied “Compound Interest”.
One day at the Power Plant our timekeeper Linda Shiever invited a Financial Planner to come to the plant and talk to the Power Plant Men about the importance of planning ahead for your retirement. This may have been the first time many of the Power Plant Men had ever heard of such a thing as “Compound Interest”.
To a Power Plant Man, “Compound Interest” sounds more like “paying close attention when you pound something with a sledge hammer”.
The Financial Planner explained to the Power Plant Men that it is important to begin planning for the future early in your life. He gave us a sheet of paper titled “Put the Magic of compounding to work for you.” It showed how someone 25 years old investing in the stock market (S&P 500 which averages 10% annually over time) by putting $2,000 in something that gives you a 10% return for 8 years, and then stops, while another person waits 8 years until they are 33 and spends the rest of their life putting $2,000 into the same stock market they will never have as much as the person who only put in $2000 for 8 years beginning when they were 25 years old.
Let me explain this a little more: Using compound interest at 10% rate for his example (since that is what you receive in the S&P 500 over time), he showed that the person that invested $16,000 beginning at 25 years old and adding $2000 each year for only 8 years will have a net earnings of over $1,000,000 by the time they are 71 years old. Yet the person that waited 8 years and invested $78,000 by adding $2,000 each year until they are 71 will only have a net earnings of $800,000. The importance was that compound interest works best when you start early.
This is a great lesson to learn. The problem was that the majority of the audience was already well over 40 years old. There may have been one person in the room that was 25 years old, and that was only because they weren’t telling the truth about their age.
On Friday, September 6, 1996 a group of us from the plant were told to show up at a hotel conference room not far from corporate headquarters to attend a meeting that was called “Money Matters”. The other phrase they used to describe the meeting was that it was a “Root Learning” class. The reason it was called Root Learning was because the company that put the class together for the Electric Company was called Root Learning.
When we arrived, we were told which table we were going to sit. Bruce Scambler was the leader of the table where I was appointed to sit. When we were assigned seats, it was in a way that the Power Plant Men were spread out across the tables, so that we were each sitting with people from other departments in the company. I supposed right away that this was so that we could maximize the spread of the Power Plant culture to others.
This turned out to be a class about how the company has problems that need to be resolved. When the class began the leader placed a poster in the middle of the table. It showed a picture of a canyon. The workers were on one side and the leaders were on the other with the managers stuck in the middle. It was very similar to this picture:
This was an ingenious representation of the problems the company had with the management structure. The poster we had was customized for our particular company.
We talked for a couple of hours about how we could bridge the gap between management and the workers. What were some of the barriers in the tornado that kept destroying those bridges…. etc.
The following year on September 24, 1997, we attended another meeting in Enid Oklahoma where we learned about Shareholder value. The leader of my table this year was a young man from HR at Corporate Headquarters (I’ll mention this guy in a later post). This topic made more sense as it really did talk about Money this time. This time the maps they showed us had race cars on it which showed the different competing electric companies. Something like this:
Being the main electric company in the state, our truck was on the Regulated track. Some of the electric providers had figured out a way to go the unregulated route. Our company kept looking for ways to get on the unregulated road by offering other services that were not regulated. After looking at the poster that looked similar to the one above for a while and talking about it, we moved on to the next poster:
Even though the chart is the main part of this picture, most of the discussion took place around the “Expense Street” section in the picture. There was an added pie chart that was on a card that was placed on this street which showed how the expenses of the company were broken down.
The main expense for the company was Fuel. I want to say that it was close to 40% of expenses. Taxes was the next largest expense for the company. It made up somewhere around 30% of our total expenses. The rest of the expenses were the other costs to run the company. Employee wages made up around 8% of the total expenses for the company.
It was the job of the leader at the table to explain that the cost for fuel was pretty well fixed, so we can’t do anything about that. We also can’t do anything about how much taxes the company pays. We didn’t have control over the supplies and other costs the company buys. So, the bottom line was that the little sliver of expenses for the company that represented “Employee Wages” was really the only thing we can adjust to increase shareholder value…..
What? Run that one by me again? We were a 3 billion dollar revenue company. We had around 3,000 employees which we had reduced to around 2,000 employees when the Corporation Commission cut how much we could charge for electricity, and now you’re saying that the only way to keep the company afloat is to “adjust” employee wages because 92% of everything else it “out-of-bounds”? I think you can see why we spent a lot of time discussing this… This turned into a pretty lively discussion.
Learning about the “Time Value of Money” can be very helpful. I had a financial calculator that I kept at the plant. One day one of the Power Plant Men came to me and asked me to figure out how they could buy a Harley Davidson Motorcycle. Earl Frazier said that he could only afford something like $230 per month and the wanted to buy this motorcycle. How would he do that? The motorcycle cost something like $38,000 or more. I don’t remember the exact details.
Sounds complicated doesn’t it? How does a Power Plant Man buy a Harley Davidson for only $230.00 per month with only a four year loan? Earl had heard that I knew all about the “Time Value of Money” and that if there was a way, I would be able to tell him how to do it. His parameters were that the cost of the motorcycle was $38,000 (I’m just guessing as I don’t remember the exact amounts), and he could only pay $230 each month.
Well. Even with a no interest loan, it would take over 13 years to pay for the motorcycle. So, my only option for solving this problem was to pull out my financial calculator:
This calculator allowed me to find the monthly payment quickly for a loan at a specific interest rate over a specific number of months. So, I worked backward from that point. I told Earl to come back in a couple of hours and I would let him know his options.
When Earl returned, I had his answer…. I told him this…. Each month he needed to begin putting his $230.00 into an annual CD at the bank for 5% (yeah… they had those at that time). In two and a half years, he would stop doing that. And just put his money in his regular checking account. Then 9 months later, he takes the money in his checking account and buys the Harley Davidson. This way he would put 10% down up front (because CDs would have been rolling into his account also).
Then, each month, as his CDs became available, he would roll part of them back into another year, leaving out a certain amount each time to supplement the $230.00 he would still be paying each month for his motorcycle, since his payments would be significantly higher than that. Then exactly after 4 years, he would have used up all of the money in his account just as he would be paying off his motorcycle. This would only work if he could get a loan for the motorcycle that charged 3.7% interest rate or less which was a reasonable rate at the time.
Earl responded by saying, “You mean I will have to wait 3 years before I can buy the motorcycle?!?!” Yeah. That was the bottom line… and by the end of it all, he would have to pay for the motorcycle over a 7 year period when it came down to it. He wasn’t too happy about having to wait, but that was the only way he could do it for $230 monthly payments.
Here is a side story… A few years later when I went to work for Dell, we also had Root Learning classes there as well. Here is one of the posters we used during the class:
In this picture, Dell is the big boat at the top. When I walked into the class I recognized the style of the poster right off the bat. Oh! Root Learning! This will be fun. These types of classes were a fun way to express the realities of the business and the obstacles they have to overcome to achieve their goals.
I still remember the leader at our table 13 years later. His name is Jonah Vaught. I worked with him about 5 years after that class. I acted like I knew him, and I could tell that he was wondering where we had met. So, I finally told him…. “You were the group leader when we were doing that Money Matters class back in 2002.”
End of Side story….
Now when I listen to the Dire Straits’ song “Money For Nothing” (like Paul Harvey’s “Rest of the Story”) you know what goes through my mind… First sitting in the switchgear working on relays with Ben Davis listening to Rock and Roll on the radio (see the post: “Relay Tests and Radio Quizzes with Ben Davis“).
Secondly, I remember the Power Plant Men learning the “Time Value of Money” in a fun way that kept them interested.
Thirdly, I remember Charles Lay finally realizing when he was 63 years old that he was going to have to work the rest of his life because he hadn’t been saving for retirement…. See the post “Pain in the Neck Muskogee Power Plant Relay Testing“). Some times when you learn about the Time Value of Money…. it’s too late to do anything about it because time has already run out.
Power Plant Mother’s Day
Mother’s Day came a week early for the men at the Coal-fired Power Plant in North Central Oklahoma in the year 2000. Instead of the scheduled May 14th Mother’s Day, the Power Plant Men gathered in the First Baptist Church in Pawnee Oklahoma to say goodbye to their Power Plant Mother Saturday, May 6, 2000. That was the day that Juliene Alley, our Power Plant Mother was laid to rest.
You might think that a woman welder spending her time at a Power Plant welding tubes in the dark insides of the boiler during overhaul, or crammed up inside a bowl mill where the air you breathe can be as hot as 160 degrees Fahrenheit would fit the image of a broad shouldered tough woman that you wouldn’t want to meet in an Alley at night. This in no way describes Juliene. If I had a picture of Juliene, you would see a woman of small stature with a slightly worn countenance and a humble but confident expression with a slight smile that had been etched permanently into her face from years of being content with whatever lot in life she had been dealt.
I am not able to say what her life was like before she arrived at the Power Plant in 1985 one week before her 34th birthday. I know she had one son named Joseph Alley and she had been married to a man named Red. For me, her life began when I first met her at the tool room waiting to get a tool from Bud Schoonover. She was being treated with extra care by her welding crew. They were very protective of her at first. My first impression was that she was kind and soft spoken.
I didn’t work around Juliene for quite a while. I don’t even remember if she had worked her way through the Labor Crew as we were required when I hired on at the plant. I worked with Juliene only after the last downsizing when we were on the same cross-functional team in 1994. By that time, the welders referred to Juliene as their “Mom”.
I never heard an unkind word come from Juliene. It may have happened immediately following a Power Plant Joke had been played on her, but since it never would have occurred to me to play a joke on her, I only ever heard kind words from Juliene. I’m sure her son Joe could tell us more about that. Juliene spent a lot of time working with Ed Shiever. They were about the same height and it seemed to me that the two of them were paired often to work the same jobs.
The title “Mom” wasn’t given to her as a ceremonial title just because of her gender. When I watched Juliene with the welders, I could see and hear that she treated each one of the welders as if she was really and truly their Mother. I have heard her scold them, put them in their places, and even calm them down when they needed to be put in “time out”.
Juliene did not die unexpectedly. She died from a failing liver that lasted over many months. It seems to me that her son Joe married his sweetheart Shauna a little earlier than intended so that it was in time for his Mother to attend the wedding in September 1999, eight months before she passed away. The last time I talked with Juliene was when someone at the plant had called her in the hospital in Oklahoma City from the tool room telephone. When I walked in the tool room to get a part, someone asked me if I wanted to speak with Juliene.
When I talked to her, I could tell that she was trying to be pleasant in spite of the knowledge that she only had about a week or two left. I told her I would be praying for her. She asked me if I knew where she could find a new liver. I think I said something like, “I don’t have a spare one myself, but these machinists here are pretty good, maybe we can have one of them whip one up real quick.”
I have mentioned one of Juliene’s sons, Joe. I have also mentioned Ed Shiever, who was a Power Plant Son to Juliene. Here are some of Juliene’s other Power Plant children:
With Ed Shiever, that makes over a dozen Power Plant Sons. I’m sure there are others. (If any others would like to be added, let me know, and if I have your pictures, I’ll post them here).
I attended Juliene’s funeral ceremony at the First Baptist Church in Pawnee on May 6, 2000. The church was crowded that day with Power Plant Men. Some had come from other Power Plants in the state to say goodbye to the Power Plant Mom we had all come to love. Her Power Plant Sons stood up front and said their departing words to Juliene and to share their memories.
I have said in one of my early Power Plant Posts that each time a True Power Plant Man or Woman left the Power Plant that the character of the Power Plant would change. The gift that Juliene Alley gave to the maintenance shop for many years was one of calm and civility. I watched the welders over the years, and some of them began their Power Plant career with a less than “savory” attitude about life. Over the years, I think the affect of having Juliene constantly in their lives tamed the welding shop to mold them into the respectable, caring, fine Power Plant Men that they became. When Juliene left us that day at the Church, she left her character behind in her Power Plant Sons.
In memory of their Power Plant Mother, no character was lost from the Power Plant the day Juliene departed to tend to other pastures. Eight months to the day of Juliene’s death on January 3, 2001, Joseph Edward Alley, her son, joined the ranks of Power Plant Men as he came to work at the Power Plant. The joy of having the actual son of Juliene working in the plant was a reflection of how much we all loved his Mother.
As you can see, Juliene’s family continues to grow. Tomorrow we will be celebrating Mother’s Day. Today, on Saturday, I remember back to Saturday May 6, 2000. The day we celebrated our Power Plant Mother’s Day a week early.
Power Plant Men Learn how Money Matters
Many years ago in my earlier days as a Power Plant Electrician while working on Relays at the coal-fired Power Plant in North Central Oklahoma, Ben Davis, a plant electrician and True Power Man introduced me to one of his favorite Rock and Roll Bands, the “Dire Straits”. One of their hit songs is “Money For Nothing.” About 14 years later, the Power Plant Men learned exactly how to make “Money For Nothing” and other “Money Matters”!
Albert Einstein was once asked what the greatest miracle known to man is, and he replied “Compound Interest”.
One day at the Power Plant our timekeeper Linda Shiever invited a Financial Planner to come to the plant and talk to the Power Plant Men about the importance of planning ahead for your retirement. This may have been the first time many of the Power Plant Men had ever heard of such a thing as “Compound Interest”.
To a Power Plant Man, “Compound Interest” sounds more like “paying close attention when you pound something with a sledge hammer”.
The Financial Planner explained to the Power Plant Men that it is important to begin planning for the future early in your life. He gave us a sheet of paper titled “Put the Magic of compounding to work for you.” It showed how someone 25 years old investing in the stock market (S&P 500 which averages 10% annually over time) by putting $2,000 in something that gives you a 10% return for 8 years, and then stops, while another person waits 8 years until they are 33 and spends the rest of their life putting $2,000 into the same stock market they will never have as much as the person who only put in $2000 for 8 years beginning when they were 25 years old.
Let me explain this a little more: Using compound interest at 10% rate for his example (since that is what you receive in the S&P 500 over time), he showed that the person that invested $16,000 beginning at 25 years old and adding $2000 each year for only 8 years will have a net earnings of over $1,000,000 by the time they are 71 years old. Yet the person that waited 8 years and invested $78,000 by adding $2,000 each year until they are 71 will only have a net earnings of $800,000. The importance was that compound interest works best when you start early.
This is a great lesson to learn. The problem was that the majority of the audience was already well over 40 years old. There may have been one person in the room that was 25 years old, and that was only because they weren’t telling the truth about their age.
On Friday, September 6, 1996 a group of us from the plant were told to show up at a hotel conference room not far from corporate headquarters to attend a meeting that was called “Money Matters”. The other phrase they used to describe the meeting was that it was a “Root Learning” class. The reason it was called Root Learning was because the company that put the class together for the Electric Company was called Root Learning.
When we arrived, we were told which table we were going to sit. Bruce Scambler was the leader of the table where I was appointed to sit. When we were assigned seats, it was in a way that the Power Plant Men were spread out across the tables, so that we were each sitting with people from other departments in the company. I supposed right away that this was so that we could maximize the spread the Power Plant culture to others.
This turned out to be a class about how the company has problems that need to be resolved. When the class began the leader placed a poster in the middle of the table. It showed a picture of a canyon. The workers were on one side and the leaders were on the other with the managers stuck in the middle. It was very similar to this picture:
This was an ingenious representation of the problems the company had with the management structure. The poster we had was customized for our particular company.
We talked for a couple of hours about how we could bridge the gap between management and the workers. What were some of the barriers in the tornado that kept destroying those bridges…. etc.
The following year on September 24, 1997, we attended another meeting in Enid Oklahoma where we learned about Shareholder value. The leader of my table this year was a young man from HR at Corporate Headquarters (I’ll mention this guy in a later post). This topic made more sense as it really did talk about Money this time. This time the maps they showed us had race cars on it which showed the different competing electric companies. Something like this:
Being the main electric company in the state, our truck was on the Regulated track. Some of the electric providers had figured out a way to go the unregulated route. Our company kept looking for ways to get on the unregulated road by offering other services that were not regulated. After looking at the poster that looked similar to the one above for a while and talking about it, we moved on to the next poster:
Even though the chart is the main part of this picture, most of the discussion took place around the “Expense Street” section in the picture. There was an added pie chart that was on a card that was placed on this street which showed how the expenses of the company were broken down.
The main expense for the company was Fuel. I want to say that it was close to 40% of expenses. Taxes was the next largest expense for the company. It made up somewhere around 30% of our total expenses. The rest of the expenses were the other costs to run the company. Employee wages made up around 8% of the total expenses for the company.
It was the job of the leader at the table to explain that the cost for fuel was pretty well fixed, so we can’t do anything about that. We also can’t do anything about how much taxes the company pays. We didn’t have control over the supplies and other costs the company buys. So, the bottom line was that the little sliver of expenses for the company that represented “Employee Wages” was really the only thing we can adjust to increase shareholder value…..
What? Run that one by me again? We were a 3 billion dollar revenue company. We had around 3,000 employees which we had reduced to around 2000 employees when the Corporation Commission cut how much we could charge for electricity, and now you’re saying that the only way to keep the company afloat is to “adjust” employee wages because 92% of everything else it “out-of-bounds”? I think you can see why we spent a lot of time discussing this… This turned into a pretty lively discussion.
Learning about the “Time Value of Money” can be very helpful. I had a financial calculator that I kept at the plant. One day one of the Power Plant Men came to me and asked me to figure out how they could buy a Harley Davidson Motorcycle. Earl Frazier said that he could only afford something like $230 per month and the wanted to buy this motorcycle. How would he do that? The motorcycle cost something like $38,000 or more. I don’t remember the exact details.
Sounds complicated doesn’t it? How does a Power Plant Man buy a Harley Davidson for only $230.00 per month with only a four year loan? Earl had heard that I knew all about the “Time Value of Money” and that if there was a way, I would be able to tell him how to do it. His parameters were that the cost of the motorcycle was $38,000 (I’m just guessing as I don’t remember the exact amounts), and he could only pay $230 each month.
Well. Even with a no interest loan, it would take over 13 years to pay for the motorcycle. So, my only option for solving this problem was to pull out my financial calculator:
This calculator allowed me to find the monthly payment quickly for a loan at a specific interest rate over a specific number of months. So, I worked backward from that point. I told Earl to come back in a couple of hours and I would let him know his options.
When Earl returned, I had his answer…. I told him this…. Each month he needed to begin putting his $230.00 into an annual CD at the bank for 5% (yeah… they had those at that time). In two and a half years, he would stop doing that. And just put his money in his regular checking account. Then 9 months later, he takes the money in his checking account and buys the Harley Davidson. This way he would put 10% down up front (because CDs would have been rolling into his account also).
Then, each month, as his CDs became available, he would roll part of them back into another year, leaving out a certain amount each time to supplement the $230.00 he would still be paying each month for his motorcycle, since his payments would be significantly higher than that. Then exactly after 4 years, he would have used up all of the money in his account just as he would be paying off his motorcycle. This would only work if he could get a loan for the motorcycle that charged 3.7% interest rate or less which was a reasonable rate at the time.
Earl responded by saying, “You mean I will have to wait 3 years before I can buy the motorcycle?!?!” Yeah. That was the bottom line… and by the end of it all, he would have to pay for the motorcycle over a 7 year period when it came down to it. He wasn’t too happy about having to wait, but that was the only way he could do it for $230 monthly payments.
Here is a side story… A few years later when I went to work for Dell, we also had Root Learning classes there as well. Here is one of the posters we used during the class:
In this picture, Dell is the big boat at the top. When I walked into the class I recognized the style of the poster right off the bat. Oh! Root Learning! This will be fun. These types of classes were a fun way to express the realities of the business and the obstacles they have to overcome to achieve their goals.
I still remember the leader at our table 13 years later. His name is Jonah Vaught. I worked with him about 5 years after that class. I acted like I knew him, and I could tell that he was wondering where we had met. So, I finally told him…. “You were the group leader when we were doing that Money Matters class back in 2002.”
End of Side story….
Now when I listen to the Dire Straits’ song “Money For Nothing” (like Paul Harvey’s “Rest of the Story”) you know what goes through my mind… First sitting in the switchgear working on relays with Ben Davis listening to Rock and Roll on the radio (see the post: “Relay Tests and Radio Quizzes with Ben Davis“).
Secondly, I remember the Power Plant Men learning the “Time Value of Money” in a fun way that kept them interested.
Thirdly, I remember Charles Lay finally realizing when he was 63 years old that he was going to have to work the rest of his life because he hadn’t been saving for retirement…. See the post “Pain in the Neck Muskogee Power Plant Relay Testing“). Some times when you learn about the Time Value of Money…. it’s too late to do anything about it because time has already run out.
Power Plant Men Learn how Money Matters
Many years ago in my earlier days as a Power Plant Electrician while working on Relays at the coal-fired Power Plant in North Central Oklahoma, Ben Davis, a plant electrician and True Power Man introduced me to one of his favorite Rock and Roll Bands, the “Dire Straits”. One of their hit songs is “Money For Nothing.” About 14 years later, the Power Plant Men learned exactly how to make “Money For Nothing” and other “Money Matters”!
Albert Einstein was once asked what the greatest miracle known to man is, and he replied “Compound Interest”.
One day at the Power Plant our timekeeper Linda Shiever invited a Financial Planner to come to the plant and talk to the Power Plant Men about the importance of planning ahead for your retirement. This may have been the first time many of the Power Plant Men had ever heard of such a thing as “Compound Interest”.
To a Power Plant Man, “Compound Interest” sounds more like “paying close attention when you pound something with a sledge hammer”.
The Financial Planner explained to the Power Plant Men that it is important to begin planning for the future early in your life. He gave us a sheet of paper titled “Put the Magic of compounding to work for you.” It showed how someone 25 years old investing in the stock market (S&P 500 which averages 10% annually over time) by putting $2,000 in something that gives you a 10% return for 8 years, and then stops, while another person waits 8 years until they are 33 and spends the rest of their life putting $2,000 into the same stock market they will never have as much as the person who only put in $2000 for 8 years beginning when they were 25 years old.
Let me explain this a little more: Using compound interest at 10% rate for his example (since that is what you receive in the S&P 500 over time), he showed that the person that invested $16,000 beginning at 25 years old and adding $2000 each year for only 8 years will have a net earnings of over $1,000,000 by the time they are 71 years old. Yet the person that waited 8 years and invested $78,000 by adding $2,000 each year until they are 71 will only have a net earnings of $800,000. The importance was that compound interest works best when you start early.
This is a great lesson to learn. The problem was that the majority of the audience was already well over 40 years old. There may have been one person in the room that was 25 years old, and that was only because they weren’t telling the truth about their age.
On Friday, September 6, 1996 a group of us from the plant were told to show up at a hotel conference room not far from corporate headquarters to attend a meeting that was called “Money Matters”. The other phrase they used to describe the meeting was that it was a “Root Learning” class. The reason it was called Root Learning was because the company that put the class together for the Electric Company was called Root Learning.
When we arrived, we were told which table we were going to sit. Bruce Scambler was the leader of the table where I was appointed to sit. When we were assigned seats, it was in a way that the Power Plant Men were spread out across the tables, so that we were each sitting with people from other departments in the company. I supposed right away that this was so that we could maximize the spread the Power Plant culture to others.
This turned out to be a class about how the company has problems that need to be resolved. When the class began the leader placed a poster in the middle of the table. It showed a picture of a canyon. The workers were on one side and the leaders were on the other with the managers stuck in the middle. It was very similar to this picture:
This was an ingenious representation of the problems the company had with the management structure. The poster we had was customized for our particular company.
We talked for a couple of hours about how we could bridge the gap between management and the workers. What were some of the barriers in the tornado that kept destroying those bridges…. etc.
The following year on September 24, 1997, we attended another meeting in Enid Oklahoma where we learned about Shareholder value. The leader of my table this year was a young man from HR at Corporate Headquarters (I’ll mention this guy in a later post). This topic made more sense as it really did talk about Money this time. This time the maps they showed us had race cars on it which showed the different competing electric companies. Something like this:
Being the main electric company in the state, our truck was on the Regulated track. Some of the electric providers had figured out a why to go the unregulated route. Our company kept looking for ways to get on the unregulated road by offering other services that were not regulated. After looking at the poster that looked similar to the one above for a while and talking about it, we moved on to the next poster:
Even though the chart is the main part of this picture, most of the discussion took place around the “Expense Street” section in the picture. There was an added pie chart that was on a card that was placed on this street which showed how the expenses of the company were broken down.
The main expense for the company was Fuel. I want to say that it was close to 40% of expenses. Taxes was the next largest expense for the company. It made up somewhere around 30% of our total expenses. The rest of the expenses were the other costs to run the company. Employee wages made up around 8% of the total expenses for the company.
It was the job of the leader at the table to explain that the cost for fuel was pretty well fixed, so we can’t do anything about that. We also can’t do anything about how much taxes the company pays. We didn’t have control over the supplies and other costs the company buys. So, the bottom line was that the little sliver of expenses for the company that represented “Employee Wages” was really the only thing we can adjust to increase shareholder value…..
What? Run that one by me again? We were a 3 billion dollar revenue company. We had around 3,000 employees which we had reduced to around 2000 employees when the Corporation Commission cut how much we could charge for electricity, and now you’re saying that the only way to keep the company afloat is to “adjust” employee wages because 92% of everything else it “out-of-bounds”? I think you can see why we spent a lot of time discussing this… This turned into a pretty lively discussion.
Learning about the “Time Value of Money” can be very helpful. I had a financial calculator that I kept at the plant. One day one of the Power Plant Men came to me and asked me to figure out how they could buy a Harley Davidson Motorcycle. Earl Frazier said that he could only afford something like $230 per month and the wanted to buy this motorcycle. How would he do that? The motorcycle cost something like $38,000 or more. I don’t remember the exact details.
Sounds complicated doesn’t it? How does a Power Plant Man buy a Harley Davidson for only $230.00 per month with only a four year loan? Earl had heard that I knew all about the “Time Value of Money” and that if there was a way, I would be able to tell him how to do it. His parameters were that the cost of the motorcycle was $38,000 (I’m just guessing as I don’t remember the exact amounts), and he could only pay $230 each month.
Well. Even with a no interest loan, it would take over 13 years to pay for the motorcycle. So, my only option for solving this problem was to pull out my financial calculator:
This calculator allowed me to find the monthly payment quickly for a loan at a specific interest rate over a specific number of months. So, I worked backward from that point. I told Earl to come back in a couple of hours and I would let him know his options.
When Earl returned, I had his answer…. I told him this…. Each month he needed to begin putting his $230.00 into an annual CD at the bank for 5% (yeah… they had those at that time). In two and a half years, he would stop doing that. And just put his money in his regular checking account. Then 9 months later, he takes the money in his checking account and buys the Harley Davidson. This way he would put 10% down up front (because CDs would have been rolling into his account also).
Then, each month, as his CDs became available, he would roll part of them back into another year, leaving out a certain amount each time to supplement the $230.00 he would still be paying each month for his motorcycle, since his payments would be significantly higher than that. Then exactly after 4 years, he would have used up all of the money in his account just as he would be paying off his motorcycle. This would only work if he could get a loan for the motorcycle that charged 3.7% interest rate or less which was a reasonable rate at the time.
Earl responded by saying, “You mean I will have to wait 3 years before I can buy the motorcycle?!?!” Yeah. That was the bottom line… and by the end of it all, he would have to pay for the motorcycle over a 7 year period when it came down to it. He wasn’t too happy about having to wait, but that was the only way he could do it for $230 monthly payments.
Here is a side story… A few years later when I went to work for Dell, we also had Root Learning classes there as well. Here is one of the posters we used during the class:
In this picture, Dell is the big boat at the top. When I walked into the class I recognized the style of the poster right off the bat. Oh! Root Learning! This will be fun. These types of classes were a fun way to express the realities of the business and the obstacles they have to overcome to achieve their goals.
I still remember the leader at our table 13 years later. His name is Jonah Vaught. I worked with him about 5 years after that class. I acted like I knew him, and I could tell that he was wondering where we had met. So, I finally told him…. “You were the group leader when we were doing that Money Matters class back in 2002.”
End of Side story….
Now when I listen to the Dire Straits’ song “Money For Nothing” (like Paul Harvey’s “Rest of the Story”) you know what goes through my mind… First sitting in the switchgear working on relays with Ben Davis listening to Rock and Roll on the radio (see the post: “Relay Tests and Radio Quizzes with Ben Davis“).
Secondly, I remember the Power Plant Men learning the “Time Value of Money” in a fun way that kept them interested.
Thirdly, I remember Charles Lay finally realizing when he was 63 years old that he was going to have to work the rest of his life because he hadn’t been saving for retirement…. See the post “Pain in the Neck Muskogee Power Plant Relay Testing“). Some times when you learn about the Time Value of Money…. it’s too late to do anything about it because time has already run out.
Power Plant Mother’s Day
Mother’s Day came a week early for the men at the Coal-fired Power Plant in North Central Oklahoma in the year 2000. Instead of the scheduled May 14th Mother’s Day, the Power Plant Men gathered in the First Baptist Church in Pawnee Oklahoma to say goodbye to their Power Plant Mother Saturday, May 6, 2000. That was the day that Juliene Alley, our Power Plant Mother was laid to rest.
You might think that a woman welder spending her time at a Power Plant welding tubes in the dark insides of the boiler during overhaul, or crammed up inside a bowl mill where the air you breathe can be as hot as 160 degrees Fahrenheit would fit the image of a broad shouldered tough woman that you wouldn’t want to meet in an Alley at night. This in no way describes Juliene. If I had a picture of Juliene, you would see a woman of small stature with a slightly worn countenance and a humble but confident expression with a slight smile that had been etched permanently into her face from years of being content with whatever lot in life she had been dealt.
I am not able to say what her life was like before she arrived at the Power Plant in 1985 one week before her 34th birthday. I know she had one son named Joseph Alley and she had been married to a man named Red. For me, her life began when I first met her at the tool room waiting to get a tool from Bud Schoonover. She was being treated with extra care by her welding crew. They were very protective of her at first. My first impression was that she was kind and soft spoken.
I didn’t work around Juliene for quite a while. I don’t even remember if she had worked her way through the Labor Crew as we were required when I hired on at the plant. I worked with Juliene only after the last downsizing when we were on the same cross-functional team in 1994. By that time, the welders referred to Juliene as their “Mom”.
I never heard an unkind word come from Juliene. It may have happened immediately following a Power Plant Joke had been played on her, but since it never would have occurred to me to play a joke on her, I only ever heard kind words from Juliene. I’m sure her son Joe could tell us more about that. Juliene spent a lot of time working with Ed Shiever. They were about the same height and it seemed to me that the two of them were paired often to work the same jobs.
The title “Mom” wasn’t given to her as a ceremonial title just because of her gender. When I watched Juliene with the welders, I could see and hear that she treated each one of the welders as if she was really and truly their Mother. I have heard her scold them, put them in their places, and even calm them down when they needed to be put in “time out”.
Juliene did not die unexpectedly. She died from a failing liver that lasted over many months. It seems to me that her son Joe married his sweetheart Shauna a little earlier than intended so that it was in time for his Mother to attend the wedding in September 1999, eight months before she passed away. The last time I talked with Juliene was when someone at the plant had called her in the hospital in Oklahoma City from the tool room telephone. When I walked in the tool room to get a part, someone asked me if I wanted to speak with Juliene.
When I talked to her, I could tell that she was trying to be pleasant in spite of the knowledge that she only had about a week or two left. I told her I would be praying for her. She asked me if I knew where she could find a new liver. I think I said something like, “I don’t have a spare one myself, but these machinists here are pretty good, maybe we can have one of them whip one up real quick.”
I have mentioned one of Juliene’s sons, Joe. I have also mentioned Ed Shiever, who was a Power Plant Son to Juliene. Here are some of Juliene’s other Power Plant children:
With Ed Shiever, that makes over a dozen Power Plant Sons. I’m sure there are others. (If any others would like to be added, let me know, and if I have your pictures, I’ll post them here).
I attended Juliene’s funeral ceremony at the First Baptist Church in Pawnee on May 6, 2000. The church was crowded that day with Power Plant Men. Some had come from other Power Plants in the state to say goodbye to the Power Plant Mom we had all come to love. Her Power Plant Sons stood up front and said their departing words to Juliene and to share their memories.
I have said in one of my early Power Plant Posts that each time a True Power Plant Man or Woman left the Power Plant that the character of the Power Plant would change. The gift that Juliene Alley gave to the maintenance shop for many years was one of calm and civility. I watched the welders over the years, and some of them began their Power Plant career with a less than “savory” attitude about life. Over the years, I think the affect of having Juliene constantly in their lives tamed the welding shop to mold them into the respectable, caring, fine Power Plant Men that they became. When Juliene left us that day at the Church, she left her character behind in her Power Plant Sons.
In memory of their Power Plant Mother, no character was lost from the Power Plant the day Juliene departed to tend to other pastures. Eight months to the day of Juliene’s death on January 3, 2001, Joseph Edward Alley, her son, joined the ranks of Power Plant Men as he came to work at the Power Plant. The joy of having the actual son of Juliene working in the plant was a reflection of how much we all loved his Mother.
As you can see, Juliene’s family continues to grow. Tomorrow we will be celebrating Mother’s Day. Today, on Saturday, I remember back to Saturday May 6, 2000. The day we celebrated our Power Plant Mother’s Day a week early.