Ed York Speaks About IICRC

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PROVOCATIVE THOUGHTS -From IICUC Founder!

Posted By Jim Eckman on 3/26/2001

Dear Fellow cleaners- I received an email this evening from a

respected associate, Mr. Ed York. He was one of the founding members

of IICUC, the forerunner of the IICRC. He has some rather profound

thoughts regarding the direction IICRC is taking. He asked me to shareit with my friends, and that is all of you folks. Please invest the time to

read it through.-Jim

IICRC AND THE OTHER SIDE OF THE COIN, BY MR. ED YORK

After some four months of putting off writing this article, I have come

to the conclusion that its past time, even if it is perceived by some as “sour grapes”. Calls and visits started in the fall and have continued

until now. Most have a feeling that something is drastically wrong at

IICRC. It would be heresy if anyone claimed foul or said anythingagainst IICRC, Motherhood, Apple Pie or the Flag. I haven’t been

bashful in the past, so here goes.

First let me give a disclaimer. I own no part of IICRC. I’m not a

member of the Board of Directors, nor do I want to be. Yes I started

IICRC, but along the way, it took a different path and I got off the

train. History may show that the path they have chosen is correct, andhas been good for the Cleaning Industry. Frankly I hope so.

At the same time it appears from the little information that sifts out of their closed Committee meetings, that they are traveling a fast track

to converting IICRC (a certification body) to a big ASSOCIATION

controlled by a hand full of POWER BROKERS.

Lets take a look at the path IICRC has taken the past decade.

In the beginning by design the stock was designated to be sold in 5%

block with no person or group owning more than 5%. There wereSEVEN individuals who contributed both time and money getting IICUC

of the ground. Since I owned the majority of Stock, I placed all but myfive percent in a non-voting trust.

Everyone had high hopes and tried to make sure control wouldn’t be

held by any one person (although IICUC was conceived by me, I have



never even been president). The by-laws prevented more than one

block of stock to be held by one party. Each Association would be able

to appoint a member to the Board of Directors to represent their

thinking and interest. Our dream was that some day, IICUC would be

owned by twenty associations or individuals. This would make sure

that all interests in our Industry would have an equal share. Each 5%

block of stock would send their delegate to the annual BOD meeting,

and pay their way. We had dreams that at some point the IICUC wouldearn sufficient profit and pay dividends sufficient to pay for the

delegates expense. Additional profit would go towards funding a

Research Center much like the Dry Cleaners have for their members.

All information gained or verified at the RC would be available to the

Associations that owned a share.

Then the Power Brokers got a foothold. They wanted to control the

program without having to put any money up. They also wanted to

share in some of the cash flow.

To accomplish this they: Sold the investors on changing the

corporation from a Profit Making Corporation to a Non-Profit

corporation. Then they wined and dined those owning stock to trade

(or give) their stock worth USA dollars to stock worth nothing. They

used the idea that being non-profit would allow DEEP POCKETS in the

Carpet World to give the new IICRC corporation lots of money. (Note:To the best of my knowledge these grants have never materialized).

This now allowed a completely different type of control by the POWER

BROKERS. In the old corporation, the delegates would vote what their

members wanted. Now control has shifted to the board to do ALL THE

THINKING. Rather than have an Industry wide input, it is now reduced

to a control group. The direction and function of the Industry was now

being decided by a few.

Non-profit corporations can not by law show a profit, so the POWERBROKERS came up with a neat way to not make a profit. Rather than

volunteer their time like most organizations do, they would pay

themselves an Annual Salary, plus cover their travel, hotel, and meals

for their work for the IICRC. The treasurer’s report was always vague

or unattainable as to the amount each of them received each year.



One member of the Board after their last Board Member said there

was a big hassle, because two of the special few were either getting or

were to get $30,000.00 per year each for their work in helping the

people served by the IICRC.

Control the money, and you control the loyalty of those voting. InitiallyIndividuals or Associations owning a block of stock paid some of the

representatives costs out of their dividends. The new non-profit IICRC

now provided each of the Board Members with a check to cover their

expenses. The shareholder is bypassed so it appears the money is

coming from the nice folks heading up IICRC. With twenty board

members even at eight or nine hundred per meeting, that was some

THIRTY SIX THOUSAND (two meetings annually) or more being

handed out by the IICRC and not the share holders that the boardmember was supposed to represent.

Each of the 20 blocks of stock, when it was a Profit making

corporation, provided its owners with an Asset that had grown in value

from $500.00 to $5000.00. Technically it was still possible to keep the

control out of the hands of a few, because each shareholding group

owned FIVE percent. Representatives were voted in by the

shareholders and were rotated. Keeping these 20 BOD members in line

was too much of an effort, so the POWER BROKERS showed they were

smarter than smart and voted in TEN more life time (at large) votingboard members. The new Board Members were permanent without

any type investment in IICRC stock. This meant around $30,000.00twice a year to dole out to those who voted with the POWER

BROKERS.

In doing so, those who now owned shares (that were worthless in

practicality) automatically lost part of their worth. Their 5% shares

were now cut to 3 2/3% So even though their 5% share had no cash

value, it lost one third of its no cash value. More important those that

paid NOTHING were now in control as they were in forever, and thoserepresenting the cash bought shares changed every two years or so.

You got to admit, that was a stroke of genius and those members whothought they were contributing to the Industry never knew when the

ax fell.



LOYALTY is a great attribute.The POWER BROKERS came up with a

new gimmick. Initially (and in every corporation I know anything

about), the members of the Board of Directors represent those

shareholders that voted their representative to the BOD. Some of the

questions I was asked about concerned a Pledge that all BOD members

have to sign. When the person that represented a Shareholder Block

became a member of the Board, they had to SWITCH their loyalty toIICRC. For an example, a representative from the ASCR (share holding

group) was sent by his Association to be a BOD member. He was told

he had to sign a pledge dropping their allegiance to ASCR and giving it

100% to IICRC. I’ve heard it all. A very good and long time friend told

me he signed it, because he thought if he was going to join a group,

he owed loyalty to that group. This blows my mind as I have always

considered this person a smart man. He is a good man. How could heever justify signing this pledge? Forget those you represent and switch

your loyalty to the POWER BROKERS.

One long time client called and was upset about a NEW ruling. He is aCertified Firm owner, and continues to send his employees to the

various school for Certification. Now he says that even though his crew

are certified in one or more classifications, if they are not currently

certified in a different field, they must TELL their CUSTOMER that they

are not certified in that extra field. I’m sure some committee felt this

was a good thing, but surely no one expects people in the real world to

follow this advise. Certification was never meant to guarantee to the

public that the person doing the work was highly skilled, and the job

would be perfect. When there was no such thing as Certification in the

Cleaning World, the founders strongly felt that there should be a way

for the customer to identify those technicians. All Certification was todo was to let the consumer know who had spent time and money to.

attend classes, study, and pass an examination. They also signed a

code of ethics. There is no realistic way Certification can mean

guaranteed job. This would be an advantage to the consumer and theemployees over time, more categories were established. It would be

great, if every technician knew everything about every cleaning task,

however I seriously doubt if most certified cleaners could even list the

ways there are to clean or the type of cleaning available.



LOYALTY THROUGH FAVORS

Labor Unions learned how to gain the vote and cooperation of their

members. Build a solid core of voting members they could count on

their vote regardless of what was being voted upon. Through their

hiring halls they would give their faithful members the best and most

jobs that came in. As long as they supported the Union Directors, they

got the cherry jobs. Now IICRC is using the same approach.

The Power Brokers have initiated a referral system which is a much

needed marketing program. However according to FTC guide lines, this

is not a legitimate part of a Certification Board. It is a fine marketing

plan for Associations. As I understand it, IICRC is a joint effort

Financed and Supported by most of the active Associations. Any Leads

obtained by IICRC should rightfully go to sponsoring Associations to be

worked by their members. Years ago, the United States was dividedamong Regional Associations serving or sharing a geographical

market. Obviously this arrangement has gone. Leads, like money, are

disbursed by the people at headquarters. More benefits to thoseselected by folks at IICRC headquarters. Watch out Associations, you

will loose valuable members through this control trick, no matter what

spin name it is given.

TRUST ME a.k.a. SEND ME YOUR MONEY

Well the truth is coming to the top of the pail. The Power Brokers areready to make their big drive for ASSOCIATION status. Watch the

Certification Fees become DUES that increase each year. One of therequirements of the Federal Trade Commission which controls the word

CERTIFICATION was that the amount of money it cost had to be the

absolute minimum required to handle the bookkeeping. Any thing

higher would be considered A RESTRAINT OF TRADE and ILLEGAL. I

understand that at the last Board of Directors meeting, the Certified

Firm (DUES) were raised by 50% and an automatic raise for next year

of another 50%. The IICRC justifies the increase because of all the

service it wants to give its MEMBERS. This is proof of the pudding that

the POWER BROKERS at IICRC want to turn the Certification Body

owned by 15 trade associations in to a COMPETITIVE BODY with them

in control. With friends like that Associations don’t need enemies.



FUTURE

Even if IICRC looses 20% of their supporters, the remaining increased

fees will give the POWER BROKERS more money to divvy up. Here is

some food for thought.

Kenway Mead’s management team is working under a real sweetheartof a deal, a percentage plus payment for each thing such as copies,

phones, etc. A percentage contract was established when no one knew

how fast the Certification Idea would take hold. IICUC didn't have the

income to hire an executive, and it would gave an incentive for the

Director to increase registration. Kenway was worth every penny he

has received. He was the right man for the job at the right time.

However now that he plans to retiree it may be the right time to thinkabout a change. Sources state that he is preparing TOM HILL to takeover the contract. I know Tom who worked for me in his early years

with the business. He is an exceptional organizer. I question however

his ability to open up new directions. As long as the POWER BROKERS

do the thinking, then Tom would be a good man to carry it out.

Kenway is what I call a Chameleon, he can fit in with any group. It is

his style. Because of its size, IICRC now needs a strong hand at the

top. In fact I believe the need for a THIRTY person BOD to meet

several times a year is not COST EFFECTIVE, The logistics of a 30person board is simply unworkable. Each member has a RIGHT tospeak on every subject coming before the Board. If they only used

TWO minutes per person (30 X 2) it would take an hour per subject. I

don’t know a person who can explain their thinking in a two minute

span of time. Rather than wine and dine those 30 representatives for

their yes votes, cut the BOD to either 5 or 7. These BOD members

could be voted out by the Shareholders so they still control. Let it be a

rotation basis, so each block of stock has its turn at the helm. Then

hire a FULL TIME executive for the operation of IICRC.; Hire someone

OUTSIDE of the cleaning field. With no “method” baggage. Look for aperson with a degree in Business Management. The shareholders

through their workable size board would set direction, and theExecutive should carry it out. There would be plenty of income to also

hire a Full Time technical director to work in all cleaning related items.



HEADQUARTERS: Having Vancouver as the headquarters when Kenway

was in charge(as he lived there). The logical place for IICRC

headquarters would be Dalton Georgia, or in High Point North Carolina

next to the Upholstery Industry. Actually for the amount IICRC spends

for treats for their BOD every two or three years would probably BUY

an abandoned Carpet Mill in Dalton. With the income over cost going

towards a Research Center along with Headquarters as well as a

cooperative training center, (instead of treats for the selected few)could become a real dream. The present Board should look at the

newspaper in the IICRC library telling the public about the dream of

the founders of IICRC. IICRC could then serve a real purpose outside

of Certification that would be a benefit for the Shareholders who

supported the IICRC during its growing up days.

IICRC should serve the Industry, rather than cook up schemes for the

Industry to serve the IICRC POWER BROKERS.

HOW THE PRESENT MESS COULD BE CHANGED.

There is no way those who sit in POWER seats with mucho benefits are

going to step down without a needless fight. The Shareholders who are

on the Board of Directors as a right should have an official meeting.

Then they should REDUCE the size of the Board to twenty with only

those that represented a shareholder that had invested money to siton the BOD. This immediately establishes control to the shareholders

that have a financial investment in IICRC. Then reduce the BOD to 5 of

those representing paid shareholders. There are a number of ways theBoard responsibilities could be established to provide staggered terms

and not have a complete new BOD each year. Have it rotate every four

years or so. Each of the blocks of share would have their

representative the same length of time, except it would rotate.

Then hire a full time executive to run the show. Immediately have a

change of policy. Instead of trying to appease the “Give Me More”

directors, start thinking about what is best for those that pay their

dollars each year. If the present BOD would only look back at their

recent meetings they would have to agree the emphasis was thefiguring out ways where the registration fees could benefit the BOD.

IICUC was started as a cooperative plan where the on-site Cleaners



could benefit in their performance of their service. Now they are asked

to send their money in and with increased amounts to support the

POWER BROKERS. Now its time the BOD to use the collected funds to

IMPROVE the entire Cleaning Industry and the Consumer. Well York

has had his say which won’t change anything, but it might give some

of you a better picture of just where the High Speed Train is headed

and who is the board.

If you believe “the other side of the coin” should be read by more

people, please forward this article to those the your own E-mail list.

Obviously the trade journals are not going to give it space, so its up to

each of you who believe IICRC should serve the on-site cleaners and

not the self selected few. That’s thirty.

- Ed York

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Ed York Speaks About IICRC