Monday, February 16, 2009

Business and the Economy

The economy has grabbed the headlines since the election and everywhere you go, that’s what people are talking about. So perhaps it is time for me to give my views of the current economic climate and its impact on Concorde, our clients and employees.

We are where we are because too many people believed that there was a free lunch, ordered an expensive meal, ate it, and then seemed shocked when the check came. Banks lent money using inflated values as collateral. People stopped saving because it was too easy to get credit and bought things on credit they could not afford. So here we are in an economic downturn that while part of the normal business cycle, has been exacerbated by personal and corporate greed, mismanagement, lack of oversight, and not paying attention to history. What does this all mean for our clients, our employees and Concorde? First, we have seen a significant decrease in hiring across all industries and the portion of our business that relates to background screening and pre-employment drug testing has been impacted. The ATA has reported a significant decline in tonnage shipped as has the rail industry. This is all a result of people just buying less due to fear and a return to fiscal conservatism thus creating overcapacity…too many stores, too many workers, not enough buyers. Everyone in the supply chain felt the impact.

We have had booms and recessions since we have been keeping financial records in the US. Chaos must always return to a state of equilibrium and stability. Corporations are returning to their core businesses. Many are outsourcing non-core functions to reduce payroll and to manage non-core functions more efficiently. They are re-engineering processes to get more from less. They are returning to stability. Employees are being asked to become more efficient. Some states, like California, are asking state employees to work a four day week to reduce government spending and to spread the pain over their entire workforce rather than a few people. Individuals are paying down debt and beginning to increase savings. I attended a banking conference this week and learned that there has been a net decrease in credit card debt for the past two months to the tune of $2 billion.

The current business climate makes Concorde’s services even more valuable. While we have been impacted in some lines of business, Concorde is a stable, 25 year old company with multiple lines of business some of which move inversely to others during various business cycles. Our government contracting has shown a 22% increase during the past 12 months as has our Driver Qualification File line of business (a non-core outsourced business process that most of our clients have found valuable) which has increased more than 100%. Our regulated side of the house, DOT testing and medical examinations, has remained stable because fewer people are actively changing jobs due to economic uncertainty. Yes, our employment services are down, but the net effect has been slow growth, but growth none the less. Concorde’s sales for 2008 increased 6% with a similar increase in bottom line. Late last year we began a process of cross training people so those employees working in areas that have shown decline can easily be moved into areas showing growth. This reduces recruiting and training expense in the future when the economy improves and keeps the talent here at Concorde.
I understand all of the pain that everyone is feeling, and it’s understandable. When the CEO of General Electric is anxious, so am I. Last Friday, the Financial Times Web site quoted GE chief Jeffrey Immelt as saying the following at a conference: "Unlike the other downturns that I've been a part of, this one is faced with limited liquidity. Once you break through '74-'75, you don't stop 'til you get to 1929." The report also said he was asked if we were in a depression or a recession, and he responded with, "it is one of those."
During the 38 years I have been privileged to be at the helm of two businesses, I have seen the gas lines and rationing of the 70s, “stagflation,” at least four recessions that the government will admit to, the 1978 bankruptcy of one of my largest customers in a previous business I ran and sold, and the aftermath of September 11th. I am confident that Concorde will continue to prosper and provide stability and quality to our clients as well as income to our employees and their families. For us, this is a time for investment in infrastructure to refine our processes and to automate more business processes. I am committed to a significant investment in 2009 to take our software to the next level through innovation and “voice of the client” development.
Americans are resilient people. We will come out of this financial downturn as we have with every other in the past. Perhaps, this time we will actually learn something. I would like to thank all of our clients, vendors and employees for your confidence in Concorde and I wish all of you good fortune.

Thursday, November 20, 2008

Service and Value

I am winging my way to Dallas, Texas to meet with a vendor. Why, because Concorde has a commitment to excellence in every aspect of our business. This meeting requires a personal visit, not a phone call or an email. Our vendor needs to see the level of my commitment and the importance of client service and satisfaction. That can only be accomplished by making the 5 hours trip each way, the overnight stay, and the early morning meeting to show our vendor what Concorde is all about. I am sure we will be able to cooperatively resolve most if not all of their service issues and raise the bar for all of our clients who use their services. When I leave tomorrow afternoon, I will better understand their operation from the top down and they will understand what is necessary to be a Concorde sub-contractor. This is not the first such visit to a vendor this year. There was one to a clinic in San Diego, one to Washington, DC and Northern Virginia, and one to Northern New Jersey. In each and every case, the vendor’s level of service, responsiveness and accuracy has improved markedly and has remained at a high level. One vendor periodically sends me emails and calls me to be sure that his facility is providing the level of service he promised to deliver.

Commitment to excellence translates into value for the customer. Organizations like Concorde that use contractors to provide service cannot be satisfied with just maintaining an excellent internal workforce. Every laboratory test, medical examination, on-site drug test or alcohol test, and background evaluation (that may involve not just our contractor, but our contractor’s contractors) reflects on our quality of service and the value we provide our clients and customers.

Ten total hours on an airplane may seem like a high price to pay for a 90 minute meeting. But anything less would not have the impact. I am excited about the possibilities that could result from this meeting tomorrow.

Too many people accept a level of service below what has been promised and many are reluctant to complain or to even take the time to suggest to a vendor how they could do a better job. It takes time to write a letter, send an email, make a phone call. But it’s time well worth taking. I have written letters to airlines, department stores, car rental companies and banks making suggestions for improvement. In some cases, these suggestions were actually adopted, I would hope in some small measure, because people like me wrote and management listened. If our service EVER does not fully satisfy, please send me an email at Stephen.Rosenzweig@concorde2000.com. I will respond and do my best to assure you receive the service, excellence and value you deserve as our client.

Wednesday, October 15, 2008

Hiring New Associates

Hiring New Associates
Hiring new associates, employees, staff, coworkers or whatever the new buzz word is today for people to help manage and run your business is not easy for most companies. While Concorde provides tools like drug testing, background screening, employment verification, and education verification to help you assure that the resumes you receive are accurate and the applicants are eligible to work, these tools alone cannot detect the intangibles that help you make a great hire.

One tool most companies use is a job interview. I describe the job interview as a first date. Everyone is, or should be, properly dressed, on their best behavior, and trying to impress. But a first date is far from a great marriage, and may not even be a good marriage. The interviewer is trying to sell the company and applicants are trying to sell themselves. A good practice is to spend less time talking and more time listening to what the applicant has to say. Does your company have a web site? Did the applicant take the time to visit your web site? Does the applicant have a clear understanding of what your company does? Does your web site clearly state the company’s creed and mission? Can the applicant tell you what these two important company core values are? Why does the applicant want to work for you? What experience and skills does he or she bring to your organization that can help you accomplish your stated mission?

Another good tool is skills testing. Can the applicant perform the job her or she is being hired to perform? There are many validated testing instruments designed to test customer service skills, clerical and management skills, and other specialized skills. If your company is in the transportation industry, has the applicant driven YOUR type of equipment before? How comprehensive is your road test? Who is administering it and what have they been trained to look for.

Finally, after a job offer is extended, is the prospective employee medically capable of performing all or most of the duties of the position you are offering? Only a medical evaluation by a trained physician can determine if the applicant can lift, sit, stand, and be exposed to heat or cold or meet any of the other job demands? Has your organization established medical job demands for each and every position? Without out these job demands, the physician has no clear understanding of what to look for medically. Once an offer is made to an applicant, the company can require a medical evaluation to determine if the applicant can physically meet all of the job demands. If not, can your company make a reasonable accommodation to assist the applicant in meeting those demands? What you are looking for from your medical provider is a statement that indicates: 1) the applicant can perform the job with no restrictions; 2) the applicant cannot perform the physical demands of the job; or 3) the applicant can perform the job with these listed restrictions. Them, and only then can you determine if the applicant is at risk and/or what accommodations can be made to assist the applicant.

Human Resources and hiring is a lot like an insurance company underwriting department. It is important to do what you can to minimize the risk a new hire can pose. These risks include physical risk to themselves and others, the risk of losing a customer if a wrong hire is made, and the risks and costs associated with having an open position if the new hire does not work out. You can pay your dues at the beginning or at the end, but the dues at the end are generally higher. Concorde is here to assist you in any way we can to make your hiring easier. Good luck and good hiring!

Wednesday, August 20, 2008

Concorde at 25 Years: A Recap of our Anniversary

This month marks the 25th anniversary of the incorporation of Concorde. Concorde was incorporated by Arthur Cohen, my attorney, in August of 1983. Our original purpose and business plan was to provide medical services to corporations to include workers’ compensation case management and physical examinations. We have evolved into so much more. This week, we invited clients from all over the United States to come to Philadelphia to help us celebrate this milestone and to share some of the stories that have been handed down over the past 25 years. The three days were filled with a variety of activities including a scavenger hunt ala National Treasure, a visit to the National Liberty Museum, one of premier Philadelphia institutions that I support, dinners and lunches, and an educational and state of the industry breakfast meeting to end the three days. Concorde associates mingled with their customers and I had the opportunity to spend time with clients I have known for many years and who I consider friends. The marketing department, headed by my son Josh, asked me to prepare some remarks about Concorde’s 25 year history and where we are going in the future. I would like to share these remarks with all of you, including those who could not attend.

Stephen Rosenzweig's "State of the Company" Address from August 18th, 2008:

Good evening. I would like to thank all of you for coming this week to celebrate a 25 year milestone, my colleagues at Concorde and our clients and friends. I appreciate your loyalty. Many of you have been associated with Concorde for the past 15-20 years, clients and colleagues alike. Our team and I work every day to earn your trust in an industry where accuracy, attention to detail, and knowledge are paramount to your success as well as ours.

My son, Josh who has arranged this 25th anniversary celebration, asked me to say a few words tonight about where we have come from as a company and how we got here.

The past 25 years have flown by like the blink of an eye. Concorde was started in the living room of my home with $1,000 of working capital and an idea. From the home business days we moved to a two bedroom apartment and then a second apartment, then as a sub-tenant of Colonial Penn Insurance Company and finally, for the past 10 years, to 15,000 square feet at 1835 Market Street. We have grown from a small group of four to a company with almost 60 associates with thousands of contractors operating in all 50 states, Guam, the US Virgin Islands, and Puerto Rico. It has been a wild, crazy and thoroughly enjoyable ride. I have the greatest job in the world and I am looking forward to the next 25 years. Those who read my blog last month know my feelings about rest and relaxation. To quote someone whose name escapes me, “At the end of the line, I want to be sliding into home plate with dirt on my uniform…”

Any success we can claim at Concorde is due to creative, hard-working ladies and gentlemen, some who were part of our history and the rest who make up our current staff. Every one who is and who has been associated with Concorde has contributed in some way to our success. I would like to mention a few people who I consider very special and who have made a significant impact on Concorde. First, there is Art Cohen who, for the past thirty years, has been my friend, confidant, outside counsel and currently inside counsel and director of operations. He is the conscience of Concorde and helps bring some order, discipline and reality to some of my crazy and sometimes creative entrepreneurial ideas and keeps the company running on a even keel. Next is Mark Goldberg, our outside accountant. I have known Mark professionally and personally since 1970. Mark has been with me for 38 years through two businesses both as an outside auditor and as an employee. Mark’s advice and direction has helped keep Concorde independent and profitable every year for the past 25 years. Then there is Charlene Brennan who has been my banker through much of Concorde’s growth. She was integral to our growth by helping us structure our banking relationships and has been personally helpful to me when I needed an unbiased opinion about growth and acquisition.

Some other special mentions are Nancy Schultz, a Concorde associate for 25 years – she was barely able to vote when she started here. Nancy has grown our mobile examination, on-site drug testing and BAT training programs. Pam Horn, whose medical knowledge, service, and rapport with our clients exemplifies the best at Concorde; and Michael La France, whose astute analytical and negotiating skills helped Concorde take giant leaps through the acquisition of other businesses – his death in a plane crash in 1998 was a terrible loss.

We also have alumni like Bo Baczara, now in the Office of the Secretary of the DOT, who grew up at Concorde – he started as a college student doing data entry. After graduation, he developed many of our early compliance metrics. Mary Dougherty/Tozzalino, who was a legend in customer service with our clients – some still ask about her. She set the mark for excellence in service in the MRO department and detail was her middle name. And finally, the brilliant and eccentric Ed Reese who developed our MRO and drug testing software in 1991 and made us an early leader in automated systems at a time when most others were using paper.

There are many new heroes and heroines, the ladies and gentlemen who currently provide support and service to our clients. They are the people MRO staff, customer care, employment screening, nursing, government services, document management, and information technology. To mention everyone’s name would exceed the time limit I set. So, thank you, each and every one of you, for your dedication, attention to detail, excellence, and for sharing your skills.

Finally, I would like to thank our clients, each of you who have taken time to come to Philadelphia to help us celebrate. Most of you have become personal friends as well as strong Concorde boosters and our best sales people.

I marvel at a country that provides opportunities for someone like me, with no formal business training and little working capital, to evolve into a substantial, profitable, multimillion dollar, multi-line, full-service medical and employment screening business that serves so many people with vital services and provides employment for almost 60 families. I thank all of you for helping Concorde make all of this possible.

So now we look to the future and the next 25 years. Concorde has a bright future. We plan to remain independent. It is the only way we can continue to innovate and place bottom line secondary to value and quality. We have associates with many years of experience who bring maturity and wisdom to Concorde. Recently, we have been adding new associates, many who are recent college graduates, who bring enthusiasm and new ideas. This is the balance that creates a formula for success. Businesses need to shake things up every once in while and we certainly are doing this at Concorde.


So what’s in the future for Concorde and our clients? My plan is to create small entrepreneurial groups within Concorde to work to improve every process, system and experience for our clients. First, there is our total commitment to service and value. This is something that we will never change and will strive to improve upon be assuring that all of our associates are trained and have the latest and best information possible to keep you compliant and to make your job easier. Second, we are committed to the tune of close to $500,000 per year in IT development costs, to provide you with the best software tools possible to keep accurate information flowing to you in an easy format to use. We are planning major revisions to our document management (driver qualification file) and drug and alcohol testing software to create intuitive, user friendly solutions. We have been asking for input from our current users and our staff to help develop the most useful tools possible in our industry. Over the next 18-24 months, we will be developing an integrated applicant tracking system to assist you with the hiring process. This system is already in use by our client, the Department of Defense Medical Examination Review Board (DoDMERB) and we be modifying and enhancing this system that has evolved over the past 10 years, to assist clients outside of government with screening and placing new applicants in the workplace. Finally, Art, our senior staff and I will be training the next generation of Concorde leaders to bring new energy and ideas to our clients in this evolving industry.

When people ask me what Concorde is all about, I have a really easy answer. We are about value. Value is the delicate balance between price, quality, service and knowledge. Our new business cards ask the question, “Why Choose Concorde?” I would hope that our clients who are here tonight know why. Josh and his marketing team now have the task of telling the rest of the world why.

I do not want to wait another 25 years to repeat the experience we all had this past Sunday to Tuesday.I plan to make this week an annual event. It was invigorating for me and I hope interesting and informative for our clients and friends. The summer is almost over. Enjoy the warm days, the time with friends and family, and have a safe Labor Day weekend.

Friday, July 18, 2008

Concorde's 25th Anniversary

It is difficult to believe that next month marks 25 years since I founded Concorde. You have all received notice of our three-day gala celebration. I hope that you can attend.

The Quarter Century Mark
In the late 1970s we had experienced long gas lines, truckers on strike, and mortgage interest rates had topped at 17%. When Concorde was formed, Ronald Regan was President, gasoline was less than $2.00 a gallon, and our country was recovering from some very difficult economic times. Home mortgage rates had dropped to a “comfortable” 13% and banks were slowly starting to loosen up credit. It was not the ideal time to start a business. Our industry had not yet matured and in fact was still in gestation and had not even been born. The Federal Drug Free Workplace Act would not be passed until 1988 and the US Department of Transportation Final Rule would not become effective until 1989. However, with a small group of dedicated, hardworking young people, Concorde was able to survive the difficulties of a start-up business and we were able to take advantage of a new industry that was about to explode throughout the United States. Their dedication to quality, attention to detail and service became our business model and allowed us to attract large companies that were looking for value. A major catalyst that took Concorde from a local/regional occupational health organization to a national player was a contract we won from a national Fortune 500 company through hard work and superior service at a regional level.

Today is not unlike the early 1980s. While interest rates are low, housing prices have fallen, the stock market has retreated and our financial institutions are facing difficult challenges, as is American business and industry. Concorde is committed to continue to provide quality, value based solutions to our clients and potential clients to provide the outsourced resources companies need to keep their internal costs under control.

On another note, I spent the last two weeks recovering from a viral infection that just wouldn’t go away. My staff insisted I get out of the office and rest. I can tell you that rest is highly overrated. I am glad to be back at work with something to do every day. Looking forward to another twenty-five years…

Friday, June 13, 2008

Return to Duty

We continually get questions about what to do with CDL drivers who test positive for drugs and alcohol. This month, I received the following question:

“[we]…would like to request your input on the issue of a "return to duty" for a driver who tested positive for either drug or alcohol use. This is only addressed in the FMCSR guidance under 392.5 which says the motor carrier may keep the driver off-duty for as long as is necessary.

We would like to request your input on a new stipulation for any rehabilitation requirements.”


The FMCSA regulations do not speak to the issue of employment. The regulations are only concerned with safety. When a regulated safety sensitive individual tests positive for drugs and/or alcohol (this includes refusals to test, adulteration, and substitution), the FMCSA regulations have very specific procedures for a driver to become re-qualified to drive.

First, the driver must be immediately removed from a safety-sensitive position as defined by the regulations. Second, the employer is obligated to refer the applicant or employee to a Substance Abuse Professional (SAP). Note: applicants are treated the same as employees for all aspects of the regulations.

The SAP must evaluate the regulated individual and must make a recommendation for treatment in every case. When the regulated individual returns from treatment, the SAP must determine when the individual can return to a safety sensitive position and must provide the employer with a letter in a very specific format, so indicating, along with recommendations for a follow up program. The minimum follow up required by FCMSA regulations is six tests in the first year of return to duty. However, the SAP can extend that time period and can increase the number of tests. Once the employer receives the report from the SAP, the employer must perform a return to duty test and that test must be negative to return the employee to a safety sensitive position.

Applicants must follow the same procedures, but the return to duty and follow up testing become the obligation of the subsequent employer, if the applicant is not hired or the employee is terminated.

So, let’s get back to the issue of return to duty. There are three elements that govern when and if an employee or applicant may return to duty.

1) Drug Free Workplace Policy
2) Collective Bargaining Agreements
3) State or Local law.

If a driver tests positive, the employer has no obligation to terminate that employee or even to place the employee on leave. The employee may continue to work during evaluation and treatment so long as he/she is reassigned to a position other than a DOT safety sensitive position. The employer may terminate the employee, even for a first offense. Your drug free workplace policy governs the applicant or employee’s disposition after a positive test. Your bargaining agreement may require you to provide one on more “chances” for the employee. The employer may be required to return an employee to duty after treatment by state law as in the case of Minnesota employers.

It is important to review your drug free workplace policy regularly and to assure that all employees and applicants receive a copy. It is also important to be consistent when dealing with substance abuse violations. If you have questions or concerns, check with your legal department, your outside counsel, or you may call Concorde and ask for a free review of your policy.

August will mark Concorde’s 25th anniversary in this industry. During the next several months, I will share my reflections of the past 25 years.

Friday, May 16, 2008

From the CEO's "Mini Me"

The title of this Blog speaks for itself: “From the CEO’s…Mini Me.” For the first and only time, I will be stepping in to write Steve’s monthly stream of consciousness. Steve has been jet setting across the country for the past three weeks and has not had a minute of time to write down any of the experiences he has had since last month. Therefore, I will step in as his “Mini Me” and provide you with my own view from the CEO’s chair, although I do not think Steve will let that view last any longer than this Blog.

Earlier in the month I, along with Steve and members of Concorde’s sales team, had the opportunity to travel to Chicago for the annual Waste Expo. This was my first Waste Expo experience (even though I have heard enough stories over the years to feel like I’ve been to more) and I have to tell you that it was a bit overwhelming. Chicago’s convention center, McCormick Place, is an enormous complex with three convention buildings attached to one another. It probably took me about two hours just to go up and down 2 of the 20 aisles in the exhibit hall. Anytime you can go to a convention and see large bulldozers and back-end loaders you know you are doing business with the right industry.

But what made this experience even better were the people that attended. For any of you that either work or have met people in the Solid Waste Industry you know what I am talking about. The men and women that make-up this industry are great people and it is wonderful working with them. Their passion for the business is unlike anything I have ever seen and it is refreshing to meet people who love to go to work every day because they want to service their customers. The best example I can give you of this dedication came on the final day we were in Chicago. Concorde sponsored NSMWA’s Safety Committee meeting, which is basically a committee comprised of Safety Managers from some of the top Solid Waste Companies. This was the second committee meeting I had attended and it still amazes me to sit back, watch, and listen to these Safety Managers talk about safety issues that affect their employees. What is different about these meetings is that the discussions on safety have very little to do with corporate governance and risk-assessment. Instead, the discussions and topics are focused around the safety of the individual who goes out and performs his/her job duties in a very high-risk work environment. Case in point, NSWMA recently produced a commercial to promote their “Slow Down, To Get Around” campaign. Their mission with this project is to educate drivers to slow down as they pass garbage trucks because there are many instances where trash haulers are struck by passenger vehicles. So next time you are driving through your neighborhood and you happen to be stuck behind a garbage truck, remember to “Slow Down, To Get Around.”

Now that I am back from Chicago, I have been busy working on some innovative advancements to Concorde’s current web-based software. I had the opportunity to discuss some of our plans with Mike Lambert from Republic Services over dinner at Waste Expo. Although I have been around Concorde all of my life, there are still many clients that I have never had the opportunity to meet face-to-face and it was great to finally meet Mike and his wife, Joyce. Unfortunately, the nature of our business is one that does not facilitate a lot of face-to-face interaction with our clients on a consistent basis. However, in August we are planning a special event to celebrate Concorde’s 25th Anniversary. The goal of this event is to not only celebrate the past, present, and future of Concorde, but to also bring our clients together so you can start putting faces to the names of Concorde employees you have spoken to countless times of the years. We are planning to have a finalized date of the two-day event by next week and it appears that it will either be in the second or third week of August. If you would be interested in coming to Philadelphia to help us celebrate this momentous occasion please contact me and I will fill in all of the details.

As I finish my brief moment as the CEO stand-in, I would like to say that as we continue to develop new systems to assist you in your Employee Screening and Health Services needs, we would also value your input tremendously. If there are features or services that are on your “wish list” of things you wish Concorde could provide, please do not hesitate to get in touch with me so that we can make those wishes come true.

Josh Rosenzweig
Director of Marketing
Concorde Inc
1835 Market Street, Suite 1200 Philadelphia, PA 19103-2994
Office: (215) 587-6268 Fax: (215) 563-1269
josh@concorde2000.com
www.concorde2000.com