Give us an specific example of a time when you solved a complex problem.
As a board member of Pacific Biodiesel, I spearheaded the financial modeling and strategy development during a make-or-break point in the company’s history. In late 2006, prices for soy—our company’s proposed raw material—skyrocketed. Simultaneously, our efforts to obtain permits for the plant were hamstrung by the local political bureaucracy. With the legal team hitting roadblocks on municipal permits, and the science team focusing on finding cheaper alternatives to soy, the CEO was praying I could find a way to “make the numbers work.” Consequently, our lead investors were on the verge of backing out. The company was in crisis.
At that point, I realized that the complex problems the company faced couldn’t be solved by tactical point solutions. Though I didn’t hold a formal leadership role, I had to pull everyone together to identify a strategic solution. My insight told me that a successful alternative energy company had to be a truly sustainable one. In collaboration with one of our engineers, I hit upon the idea that if we used yellow grease instead of soy we would have a relatively cheap, renewable, and abundant source of energy. Other members of the science team were opposed to using yellow grease because it would take a large capital investment to reconfigure the plant to accommodate the input. I needed to secure a Board mandate to proceed. In my Board presentation, I argued that not only did the economics of yellow grease make sense, but we could also leverage the fact that we were using a truly renewable raw material to win state approval for the plant. With state approval, we could present a strong case to the municipal government to grant the permits we needed. Then, with a solid business case and permits in hand, we would be able to fund the yellow grease plant modifications with renewed support from our investors.
The board bought my argument, and I united the scientists and legal team in pursuing a common vision: to be a renewable biodiesel producer. The scientists initiated the design plans, and I sourced the yellow grease. Our next hurdle was securing permits. We argued to the state congressman who was in charge of the alternative energy board that our product—biodiesel made with yellow grease—would be good for New Hampshire. He agreed. With his support, we were able to secure the go-ahead from the Department of Environmental Services. We were then able to leverage state support to secure permits at the municipal level.
With the permits, economics, and strategic roadmap in place, the investors agreed to another round of financing. Today, Pacific Biodiesel has won several contracts and is close to the breakeven point. In this collaborative problem-solving exercise, I learned that the answer to complex problems often lies in a coordinated solution that addresses the core problem rather than in trying to address functional problems in isolation.