Corporate Lawyer turns CEO: Evaluating the Risk

An interview with Jon Sprague, CEO of TSG Water Resources

TSG Water Resources is a fast-growing company that specializes in the design, constr- uction and operation of water and wastewater treatment plants. TSG is on the cutting edge of water treatment and wastewater treatment technology and their work takes them all over the world – especially those places where water is most precious.
 
There are more differences than similarities:
a.      Oil is a commodity business. Water is a service and equipment business.
b.      Water is inherently local; too difficult to transport long distances in most cases.
c.      Water is in most places renewable; oil is mined and subject to depletion.
d.      Both have to be processed to varying degrees to be used, and have multiple uses.
e.      Water is necessary for life; oil is a choice and provides an economic benefit.
f.       Water is better for swimming pools.
 
You were in a well-respected Southern law firm before you moved into the CEO’s chair. What skills translated well between law and management? Which skills didn’t transfer as well?
a.       The main difference has been the level of risk. Lawyers, at least corporate lawyers like I was, are risk averse and their jobs are to minimize risk for their clients. Lawyers are also reasonably secure in their jobs once established. Being an entrepreneur inherently involves a much higher level of risk taking, and living with this level of risk was quite an adjustment.
b.      It is helpful to understand legal matters and legal risk, but I now focus much less on “boilerplate” issues and more on business issues, like how and when we will be paid. I let the lawyers worry about the “boilerplate”.
c.       I have saved a great deal of money by being able to handle a wide variety of legal issues, including contracts and disputes.
 
Your company is spread out in some exotic, sometimes hard to reach locations. What do you do to make sure everyone is the information loop?
a.       This is one of our greatest challenges. All methods of communication have their benefits and detriments.
b.      We do try to get our key leaders together in person a couple of times a year at least. Because we have 24/7 responsibility for the plants we operate, getting everyone together at one time is simply not an option. We regularly use phone conference calls and weekly updates of the different parts of our company, but there is no substitute for face time.
 
During the last year you’ve begun to move company from a highly customized design approach to a quicker turnaround, more manufacturing-based approach. What lessons have been learned so far?
       This is not the only change. We have also gone from a couple of individuals doing the entire job to a system of interconnecting parts. What we have learned is that making the transition is extremely difficult and hugely time consuming, but nevertheless critically important. It is a constant battle to do the work and develop the systems at the same time, but without doing so you will never progress.


TSG is a RapidChange Group client.
Interview conducted, edited and condensed by Dan Suwyn.
 
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