From the Corner Office

In each issue, we interview a President/Owner of a small or medium sized business to talk about their perspectives and their company's direction. Each issue will feature a sampling of some key questions every business owner must consider. This month we spoke with Steve Grossman, President and CEO of MassEnvelopePlus, a fourth generation printing & graphic design company and full-service integrated communications resource in Somerville, MA.

1. As the CEO of a privately-held family business, what do you feel are the biggest challenges facing the small business owner today?

I’ve identified three primary challenges for today’s small business owners.  The first is the rapidly rising and largely uncontrollable costs of doing business - making small businesses less viable as profitable enterprises.  For example, health care costs are rising at double digit rates.  This helps to create much higher fixed costs for business than ever before.  The nut you have to get over every month before you have a shot at making it over the profit line makes it more difficult to sustain your business.  The second challenge is the task of attracting and retaining the best employees.  The technical knowledge and skills that are increasingly required in the workplace demand a higher caliber of people, and finding them is getting more difficult.  The third and final challenge revolves around the cost of technology.  If you do invest, you face the costs of technology and the training necessary to bring your workforce up to speed.  It is a double-edged sword.  While it’s necessary to be able to compete, the dollars and cents can be unaffordable.  Frequently the cost of addressing technology outstrips the ability to pay for it.

2. We are well into the 21^st century, how has the way you conduct your business changed and what you are doing to manage that change?

For many years, we were simply an envelope company.  We’ve broadened our scope and have evolved into a full-service integrated communications resource.
For decades, we needed to make fairly modest changes in technology. The skills that were required back in the early history of the company didn’t change that much – it was a pretty stable business.  Now, however, we are printers with state-of-the-art resources for the design and production of a full range of communications materials.  We have dramatically accelerated the pace of technological change required to make our business successful – and this has made us faster, more flexible and more entrepreneurial. The need to adapt to changing business conditions is important.  One of the single greatest challenges for us in this area has been to manage a long-term workforce which has had a hard time adapting to new technologies.  Many of our employees have been with us for many years. So we have additional considerations such as understanding if they are psychologically and educationally ready to learn new methods.  Do they have the ability to take on these new skills and responsibilities?

3. You are well known for your support and active participation in local and national politics.  As we move closer to the election, what should business owners consider as they cast their vote?

Business owners love a stable environment. We don’t like uncertainty and instability. In this upcoming election, business owners should consider which candidate for president is going to preside over the most stable business environment.  I believe that the current fiscal irresponsibility at the federal level, and the huge pressure this has put on local and state governments, is downright negligent.  As business owners, we cannot take on unlimited debt without great consequences.  We need a stable economic policy – and right now, we are not moving toward a good long-term business environment.

4. How do you think your public role has impacted your customer’s and employee’s view of your company?

I have found that having an out-front public role in politics and philanthropy has been a tremendous asset to my business.  I’ve been able to create hundreds of relationships that have been important to me and to the business.  It has provided me with countless prospects and customers. When I ask people for the opportunity to make a capabilities proposal, the response has been overwhelmingly successful and positive. The number of new customers we’ve added since I left the governor’s race has been phenomenal.  Our employees have a lot of pride in the fact that we are public people and take our role in the community seriously. I believe they stand taller because MassEnvelope Plus plays a responsible and committed role in the communities in which they live.

5. Your grandfather started the business you now run.  Could you share with us one important thing that you learned from your grandfather and father that has applied to your current business?

My father and grandfather both believed that developing long term relationships was essential – particularly with colleagues and with suppliers. We believe that we need to treat our suppliers like customers.  And we believe that we need to build long term relationships with our employees and treat them like customers as well.  The average tenure of our colleagues is about 22 years.  Recently, I was participated in union negotiations with three of my employees who are union representatives.  We were talking about current business conditions and having a great conversation.  I asked each of them how long they had been with the company.  I had a pretty good idea – but wanted to know specifically.  All three men are members of our production team, and have been with us 26 years, 25 years, and 24 years respectively.  They represented 75 years of experience and knowledge about our business.  We think that is critically important and pays enormous dividends to the company.  That having been said, it also connects to a challenge I mentioned earlier – which is to take long term employees and help them adapt to current technology and skills requirements.

6. If you had an opportunity now to teach your grandfather and father something from your perspective as the current owner, what would it be?

It would be the need to constantly re-invent yourself during a time of unprecedented societal change.  Increasing productivity and investing in technology are inextricably linked.  The kind of business we are doing today demands it.  These were issues my grandfather and father didn’t have to deal with when they were running the company – it was a much more stable environment then.

7. As we move towards the final quarter of 2004, what is the focus of your company’s direction into 2005 and beyond?

To establish at every level of the company specific goals and objectives, to set high standards, to create an appropriate level of accountability for every employee, and to implement incentives at every level of the company.  We want everyone to participate in creating the kind of team that enables every member of our organization to achieve both their personal goals and the company’s goals.  Of course, we understand that we must set goals that are achievable so that everyone benefits.

My father made optimism a way of life. I can think of no greater tribute to his 63 years of leadership than to approach the future with energy, passion, and optimism.

More Articles