Latest / Make Water Work Podcast / George Hawkins: The Moonshot Mindset | Make Water Work 016
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- 0:00The notion of working with the balance
- 0:03sheet and systematically implementing
- 0:06projects that may cost a little more
- 0:08upfront but then offer permanent savings
- 0:11and creating systems that drive that
- 0:13continuously over time. Which means the
- 0:16only way we solve this. The reason I
- 0:18formed moonshot is the places that need
- 0:20that the most are the ones without help
- 0:24are least able to access it. They don't
- 0:26have the time or wherewithal to
- 0:28implement the projects that would put
- 0:30their utility in a sustainable path. And
- 0:32we have to do that at every size. It's
- 0:35it's the yes, the ones that are uh less
- 0:38resourced are the ones that need it the
- 0:40most, but all utilities need it.
- 0:42>> Welcome to the Make Water Work podcast,
- 0:45where we dive into the people, ideas,
- 0:47and innovation shaping the future of
- 0:50water. I'm your host, Isaac Pellerin,
- 0:52and alongside my co-host, Megan Glover,
- 0:55the founder of 120 Water, we bring you
- 0:58insights from hundreds of incredible
- 1:00conversations we've had over the past 9
- 1:02years with inspiring and energizing
- 1:05leaders in the water industry. Each
- 1:08week, we share those stories and
- 1:10conversations with entrepreneurs,
- 1:12community champions, and innovators who
- 1:14are making water work for everyone.
- 1:17Whether you're a water professional, a
- 1:19curious innovator, or simply passionate
- 1:21about our most precious resource, this
- 1:23podcast is for you. Let's get started.
- 1:28Well, welcome everyone to today's
- 1:31podcast, the Make Water Work Podcast,
- 1:33where Isaac and I talk to the innovators
- 1:36of water and celebrate the people that
- 1:38are making water work every single day.
- 1:40So, who do we have on the podcast today,
- 1:42Isaac? Um we have uh George Hawkins who
- 1:46is uh is certainly no um no stranger to
- 1:50the water industry um and one of the
- 1:53folks who had such a big impact on me
- 1:55early on in my time here at 120 um
- 1:59because of the way he framed how
- 2:01utilities need to think about innovation
- 2:03and the value of of investing
- 2:06>> um in things even when it's hard and
- 2:08doing that in a way that brings the
- 2:10community along. And so, um, there's so
- 2:12much value I know we're going to get out
- 2:14of this conversation. And, um, you know,
- 2:16George was the general manager at DC
- 2:19Water and now has launched, um, uh,
- 2:22Moonshot Missions. And it's going to be
- 2:24exciting to get, um, hear from George on
- 2:27how life has been going. So, George,
- 2:29welcome to the podcast.
- 2:32>> Hi, Nick. Megan, it is so delightful to
- 2:34be here. I remember the day when you
- 2:37kicked off, I don't think it was called
- 2:39120 Water back then. remember that 125
- 2:42audit
- 2:43>> audit
- 2:43>> you yes and we were in a little room I
- 2:46think it was at uh don't remember but I
- 2:48remember being there and thinking this
- 2:50is going to go somewhere but you know
- 2:52the idea that I may have contributed a
- 2:54bit is great I certainly have learned
- 2:56watching you because nobody warned me
- 2:58how hard it is to do a startup but I've
- 3:00watched the evolution of yours and how
- 3:02successful it's been bless you all
- 3:04because of the content of the work and
- 3:06how successful but watching that arc has
- 3:08been very helpful to me so you both of
- 3:11you have been sort of I've been looking
- 3:13at you as that that's the mountain top I
- 3:14want to achieve. So I'm grateful glad to
- 3:16be here with with you both today.
- 3:18It's wonderful to have you and I knew I
- 3:20mean um you know once you kind of took
- 3:22that leap into entrepreneurship we
- 3:24always knew you were going to be
- 3:25successful because you were solving a
- 3:27massive problem and I think that's just
- 3:28at the heart of what makes entrepreneurs
- 3:30just so passionate and businesses
- 3:32successful is when you find a massive
- 3:34problem to solve it's uh really hard for
- 3:36that not to be successful if you have
- 3:38someone uh at your leadership level at
- 3:40the at the helm. So George it is a honor
- 3:43to have you on the podcast.
- 3:45>> You delighted to be here. We we love
- 3:47asking every guest that um that comes on
- 3:50the podcast. Um everyone has a story
- 3:53about how water found them. And so
- 3:55George, how did water find you?
- 3:59>> Um gosh, it's found me uh continuously
- 4:02and off through my lifetime, but it
- 4:04started when I was in elementary school.
- 4:07I went to Cle I went to an elementary
- 4:09school. We took a bus trip and it went
- 4:11down the hill into the city and down a
- 4:13second hill down to what's called the
- 4:14flats and uh and when we got off the
- 4:19bus, it had been sunny when we left that
- 4:21day. And when we got off the bus, it was
- 4:22cloudy.
- 4:23>> Yeah.
- 4:24>> And I asked the bus driver what the
- 4:25smell was in the air. And uh he tapped
- 4:28me on the head, this big guy. I was a
- 4:29little elementary school kid. He goes,
- 4:31"My son, that's the sweet smell of
- 4:33success." Because I was standing down on
- 4:37the flats in Cleveland, Ohio. I grew up
- 4:39in Cleveland Heights, Fairfax Elementary
- 4:42School. We get went down there and we
- 4:44toured the flats, gigantic mills, like
- 4:46this was when Cleveland was an economic
- 4:49powerhouse. Carnegie, Rockefeller, they
- 4:51all started in Cleveland. Most people
- 4:52don't know that.
- 4:54>> The consequence was you could not see
- 4:56from one corner of a street to the next
- 4:58because of the air pollutants. Or I
- 4:59walked down to the river and it looked
- 5:02like an old fingerpainting like we would
- 5:03make as kids because there was so much
- 5:05pollutants in that river.
- 5:07it wasn't really a river anymore. Um,
- 5:09and as you know, uh, actually it was
- 5:12about two months after we visited, a
- 5:14train going by sparked from the train
- 5:16wheel ignited the river on fire, which
- 5:19was the seventh time it burned in the
- 5:2160s.
- 5:22>> Wow.
- 5:22>> And what I love about that that origin
- 5:25story is we went back and we were
- 5:27elementary school kids and I back then
- 5:29you would write on the wide paper with
- 5:31the big pencils. Mhm.
- 5:34>> All wrote letters to President Nixon
- 5:37all saying this has got to change. It
- 5:39you didn't have to be highly ed you just
- 5:42you knew this is not right. This should
- 5:44not stand and I think the clean water
- 5:47act was not that long after that. Yeah.
- 5:49A few years later then uh thereafter and
- 5:52water just kept on coming up that the
- 5:55bigger question of course is the whole
- 5:57ecosystem but sort of like measure your
- 5:59health and well-being by taking your
- 6:01blood. The best way to tell tell the
- 6:03health in my view of tell health and
- 6:05well-being of a place is looking at
- 6:07their water.
- 6:08>> Yeah, I love that.
- 6:09>> You tell so much more. It's almost like
- 6:10a balance sheet. That's the ecological
- 6:12balance sheet of the place.
- 6:15>> So, I've loved being part water not only
- 6:17because of water but because of what it
- 6:19it what it it it represents for the
- 6:22health of an entire system. I love I
- 6:24love that and and it's um that theme of
- 6:27water being at the core of economic
- 6:30development, health, like that ecosystem
- 6:32building definitely has come out as a
- 6:34theme on the podcast and I think that's
- 6:36uh that's a really wonderful uh theme uh
- 6:40that we're hearing and I love how you
- 6:41articulated that in particular,
- 6:42>> George. And it's also the thing where
- 6:44people um as utility leaders need to do
- 6:47a good job of telling the story of the
- 6:50impact of the water quality and you know
- 6:53to get that investment and I think
- 6:55that's one of the things um when I uh
- 6:58think about anytime I've heard you talk
- 6:59about your time at DC water um I'd love
- 7:02for you to talk about how you approached
- 7:05innovation and communication um with
- 7:09with the public.
- 7:11>> Sure. Um, and I I love that question
- 7:14because I to this is a virtue that most
- 7:17water utilities for a long time were run
- 7:20by engineering folks who understood how
- 7:22the systems work. And of course, you
- 7:24need that. That that's a really powerful
- 7:26and profound asset and experience. But
- 7:29what they weren't oriented towards was
- 7:31telling the story of what they were
- 7:33doing to others. in some ways almost
- 7:35felt it was a virtual the harder the
- 7:37better we do and no one knows us that
- 7:39means we're really good at it
- 7:41>> because people turn on the water they
- 7:42flush the toilet or whatever and they
- 7:44don't even think that's only if we do
- 7:46our job right so there was some virtue
- 7:48there the challenge is almost everything
- 7:51about water at least as I faced it at at
- 7:54DC water when I joined it was it was in
- 7:56the term of cost this is an expense this
- 7:59is a rate increase this is a challenge
- 8:01this is a burden because that's all
- 8:03people heard is the only thing they
- 8:05would hear from their water utility was
- 8:06a bill and if it were going up as
- 8:08opposed to any of the benefits that was
- 8:10what's driven and what my I believe that
- 8:14an investment in water and the US water
- 8:16alliance came out with a report today um
- 8:19indicating once again that an investment
- 8:21in water of course it's ecological
- 8:23benefit there's no business there's no
- 8:25job there's no place that can have any
- 8:27kind of vitality on a community public
- 8:29health or economic basis without this as
- 8:32a foundation
- 8:34And what I wanted to present to our rate
- 8:36payers in DC were tough that's a tough
- 8:39rate paying group is the the the value
- 8:43proposition. I always said the dollar I
- 8:45want you to believe I can prove it to
- 8:47you that the dollar you invest in DC.
- 8:49What is the best dollar you're going to
- 8:50spend um this year because of all of the
- 8:54things that come from it? Um, and in DC
- 8:56we saw that the clean up of the
- 8:57Anacostia, the continued cleanup of the
- 8:59PTOIC, the revitalization of both
- 9:02waterfronts, the economic growth that
- 9:03has come, as well as the improvements to
- 9:06the natural ecosystem and the Ches Peak
- 9:08Bay. The multiple benefits are sort of
- 9:11extraordinary and but that's a story
- 9:12that needs to be told. I'll tell you one
- 9:14last thing. I I always loved it when
- 9:16there was these surveys that would say,
- 9:18"Well, people don't want to pay more for
- 9:19water." And they're sort of lamenting
- 9:20that reality. I'm like, "Of course
- 9:23that's what they're going to say."
- 9:24Someone calls me on the phone and asks
- 9:26me if I want to pay more for a
- 9:27hamburger, my answer is going to be no.
- 9:29Why would I? Why would I say yes to
- 9:31that? Unless I know why I want to pay.
- 9:36I've been given a value proposition. I'm
- 9:38paying more for that burger because it's
- 9:39bigger, it's better, it's better,
- 9:41whatever. There's got to be
- 9:42>> explanation for the cost increase, not
- 9:45just increasing prices.
- 9:47And that means you have to have a
- 9:49relationship with your customer and and
- 9:50and hope that they understand
- 9:54when there are rate increases and it's
- 9:55inevitable in the water sector given age
- 9:57and and new contaminants and all the
- 10:00rest that they understand what they're
- 10:02investing in and that depends on them
- 10:04knowing who you are and hopefully liking
- 10:06what you're doing and enjoying the
- 10:08outcomes.
- 10:09>> Yeah.
- 10:10>> George, I don't know this question.
- 10:11We're going off a little bit script, but
- 10:12how did you aspire? What it was? General
- 10:15manager of a very large utility, a
- 10:18municipality on your on your
- 10:20professional development card. How did
- 10:22you actually end up?
- 10:25>> No, not in the slightest. I was running
- 10:28prior to being at DC water, I was
- 10:30running at the division department of
- 10:32energy and environment, which I was the
- 10:34first director. It did all the energy
- 10:36work in the city, did all the and it was
- 10:38a fascinating agency because it's a DC
- 10:41is a city, a county, and a state. So
- 10:43there's no other position where you had
- 10:45false man of control. We would write a
- 10:47state plan, a county implementation, and
- 10:49we'd send out the inspectors. And one
- 10:51day I was at DC City Hall loving the
- 10:54job, put all my people in place, and I
- 10:56got pulled into a a stairwell by the
- 10:58city administrator. That's note to self,
- 11:01not good. Good things happen in
- 11:03stairwells. And he said the mayor really
- 11:06dislikes DC Wasa. That is what it was
- 11:08known and was not known for customer
- 11:10service. All was not was didn't have
- 11:12good people. It just was the
- 11:13oldfashioned version of a the mayor had
- 11:16been a ward-based council member and
- 11:18really disliked the customer service. Uh
- 11:20that he says the mayor wants you to
- 11:22apply to be GM of DC Water. It's
- 11:26authority. So he could not appoint me.
- 11:28And at the time I thought it was the
- 11:30worst idea I had ever heard. It was not
- 11:32only not on my career. here. I'm like,
- 11:34what would I do running a big water
- 11:36utility? I've never I know their
- 11:38permits. I know their consent decrees.
- 11:40Otherwise, the rest of that is But as I
- 11:43thought about it, I completely changed
- 11:46my mind as I first of all, given the
- 11:49mayor wanted me to do it. I didn't have
- 11:50a lot of options.
- 11:52>> Right. Second, I was like, gosh, we were
- 11:54trying to cobble together a million
- 11:56dollars for green infrastructure in DC
- 11:58from my old agency. DC Water has
- 12:01hundreds of millions of dollars in its
- 12:03capital budget. It's connected to every
- 12:05development in the city. If it's if it
- 12:08changes course to do some of these
- 12:10things, it can do it at a scale that I
- 12:12never even imagined. So then all I knew
- 12:15I had a big change, which is sort of to
- 12:16the innovation question. There was a big
- 12:18change that I felt needed to come to DC
- 12:20WASA, but the opportunity was enormous.
- 12:24So I when I got to that point, then I
- 12:26couldn't wait. I was really excited
- 12:27about it. Man, there there's a whole
- 12:29thread of of questions um a whole line
- 12:33of of questions that I could follow up
- 12:35with. Um it it kind of triggers this
- 12:38thought for me of you always talk about
- 12:41whenever I've heard you speak about the
- 12:44amount of power that a water utility
- 12:47consumes. And I'm I'm curious just in
- 12:51everything you're talking about with
- 12:52like energy and those kind of things,
- 12:53how you saw that investment in being
- 12:55able to say like, hey, we can optimize
- 12:58power consumption and
- 13:01>> invest in green space.
- 13:02>> Invest in green space and and understand
- 13:04the ecosystem of both how power and
- 13:06water work together.
- 13:09>> Yeah, absolutely. What I did when I came
- 13:11in, so I I remember it was very early in
- 13:14my tenure. I met with our CFO at the
- 13:16time, Olu, and he showed me our capital
- 13:18budget. And even though it was starting
- 13:20with the hundreds of millions, it was
- 13:21going up by 50 to 100 million for five
- 13:23straight years. I was like, are you
- 13:25kidding me? Each year, we're going to
- 13:27have to raise 50 to$100 million more
- 13:29than the year before with a populace
- 13:31that at the time didn't like us. So, we
- 13:34knew we had to start reducing costs and
- 13:36telling a story to our customers that
- 13:38would put them in the mindset of being
- 13:40willing to accept that kind of rate
- 13:41increase. Because what happens with the
- 13:43utility if they don't get rate increases
- 13:45and they have mandated work that must be
- 13:47done almost all of that rate increase
- 13:50was for regulatory required mandated
- 13:53work is you skimp on everything else and
- 13:56that's the maintenance of the water
- 13:57systems that's replacements of drinking
- 13:59water lines all the things that people
- 14:00see and feel out in the system don't get
- 14:05investment because you have to do the
- 14:07permit work so we knew we had to raise
- 14:09those funds and so I just looked at the
- 14:11balance sheet if we are going to reduce
- 14:13costs at DC water. Where are we spending
- 14:15all our money? First was personnel.
- 14:17Second was debt service and third was
- 14:20power. I'm like, "Oh my gosh, I had not
- 14:22really contemplated that." At the time
- 14:24we had a $37 million annual power budget
- 14:27at DC Water because water and waste
- 14:30water is so heavy, right?
- 14:32>> And it takes so much power to move it.
- 14:34It's a lot of energy.
- 14:35>> I hired someone. I was I think one of
- 14:37the first utilities in the country. We
- 14:38hired a full-time energy professional
- 14:40from Pepco, our from our power company
- 14:43to come in and provide immediate
- 14:46full-time daily service about every way
- 14:48we could save on power. Um, which was
- 14:51one of the best ways, and by the way,
- 14:53what I do now is take that same message,
- 14:56finding ways that you can improve your
- 14:58performance, in our case, cut carbon
- 15:01carbon emissions, reduce improve
- 15:04resiliency, all sorts of things came
- 15:06from it. But the bottom line was it also
- 15:09improved our balance sheet. We ended up
- 15:11with a utility that was had a more
- 15:14revenue than it did when we started
- 15:15these projects. They were cash flow
- 15:17positive. That's like the sun coming up
- 15:20for a utility. Yeah.
- 15:21>> And every single utility can do it. And
- 15:24there's no every, in my view, every
- 15:26single utility should be doing it
- 15:28because it's one of the few areas where
- 15:29you put some time into it, you put some
- 15:31investments in, it will pay you back
- 15:33plus some.
- 15:34>> Yeah. And heck, that's a great place for
- 15:36any any any utility to start.
- 15:39>> My gosh, I love that. So, and I just
- 15:41love the fact that we're talking about
- 15:42balance sheets and utilities in the same
- 15:44conversation. That's so refreshing. Um,
- 15:47so so you alluded to the uh what you're
- 15:50doing now. So, I want to make sure we
- 15:51spend a lot of time on this because it's
- 15:53super important work and that that we
- 15:55want to talk about. So, moonshot
- 15:57moonshot missions. What compelled you to
- 16:00start this Georgia? I mean you could
- 16:01have done anything after after DC but
- 16:03yet you choose chose to you know join
- 16:06the crazies and you know start your own
- 16:09start your own entity but uh what led
- 16:11what compelled you to start moonshot?
- 16:13>> What compelled me was telling the DC
- 16:15water story. So I was able and by the
- 16:18way most of the things we did at DC
- 16:20water was not things that I brought.
- 16:22What I was able to do was assemble a
- 16:24great team. I always felt I was the
- 16:26conductor of an excellent jazz band. I
- 16:28think of every organization. Great
- 16:29leadership tip.
- 16:30>> And I don't play the instruments.
- 16:32>> They all play their instruments
- 16:34beautifully. And I'm going to ask each
- 16:35one to stand up and improvise and sort
- 16:37of solo for a while and then sit back
- 16:39down and stay on the same tune. And when
- 16:41you great musicians in a jazz band, you
- 16:43can make beautiful music. And so DC
- 16:46Water did a lot on everything. Finance,
- 16:48procurement, personnel, operations, all
- 16:51of it because of the team we were I was
- 16:53able to recruit and retain. And I tell
- 16:56that story. And what I constantly heard
- 16:59was I would have folks from the audience
- 17:01come up to me afterwards and say,
- 17:02"That's a great story you tell with
- 17:04entertaining
- 17:06little pits and pieces of what happened
- 17:07here and there, but guess it has no
- 17:09relationship to us. You had uh billion
- 17:13plus totex budget. You had all
- 17:15engineers. Every company wanted to work
- 17:17with you. I've got 20 employees. I
- 17:20should have 30. I have an operating
- 17:22deficit. There's a debt cap in my
- 17:24community. Oh, I'm holding on. I'm just
- 17:28holding on. I'm doing what I have to do
- 17:30to deliver this service every day. Our
- 17:32people are multitasking and we're
- 17:33responding to things. But the idea I
- 17:35have the chance to step back and look at
- 17:38our energy consumption and start
- 17:39evaluating various ways to make where
- 17:42would that time come from? Where would
- 17:44the money come from if we did find
- 17:46something? Where would the people I just
- 17:48don't have any of it then? I heard it
- 17:50all the time.
- 17:51>> Yes. And I felt that Megan when you said
- 17:54was an unmet need I was like there's a
- 17:56and it was not just a few these are
- 17:58hundreds and hundreds even thousands of
- 18:01communities that are strong. I was like
- 18:02that's a need
- 18:04>> and it's not being met because wonderful
- 18:07engineering consulting firms don't
- 18:09generally go into that market because
- 18:10there's no money made.
- 18:12>> Why is there no money to be made?
- 18:13Because they have no money to spend.
- 18:14That's the problem. So I was like that
- 18:17needs an answer now and interesting uh
- 18:20Megan at the exactly the same time I was
- 18:23that's I started thinking about that
- 18:24gosh this is a problem I keep hearing it
- 18:26what needs to be done Dave Henderson at
- 18:29XPV water partners asked me to write an
- 18:32essay called Moonshot that's where the
- 18:34name came from
- 18:35>> oh I didn't know that oh my god
- 18:37>> and the essay and the question he asked
- 18:39in the essay is what is stopping public
- 18:41agencies from implementing more
- 18:43technical solutions we have all these
- 18:45technology techies of software that
- 18:47improve services, reduce costs, all
- 18:49these great outcomes and they're not
- 18:51being adopted very readily. Why? What's
- 18:53the reason? And what would be your
- 18:55moonshot to overcome those obstacles? So
- 18:58I I never really systematically sat down
- 19:01and thought about it, but it's a it's a
- 19:03world that you faced running a service
- 19:05selling to a utility
- 19:07>> that what I and I outlined it all in
- 19:09this paper. What a tech firm will say
- 19:11when they have this great new product
- 19:13that's going to reduce costs and all the
- 19:14rest is it's from when it's already been
- 19:17implemented and understood and trained,
- 19:20okay, now your costs are going to go
- 19:21down in your performance. What they
- 19:23don't show is all the steps a utility
- 19:26has to take to get there.
- 19:28>> Yeah.
- 19:28>> And all of those steps take additional
- 19:31time and money that is very hard for a
- 19:33utility to find particularly if they're
- 19:35low uh sort of low resources. So the
- 19:38problem were all the steps leading to
- 19:40the innovation not the innovation and
- 19:42the moonshot was well what enterprise
- 19:44would be helpful to to sort of
- 19:47supplement a local's capabilities to
- 19:50overcome those steps so they could get
- 19:51to innovation. By the way a little bit
- 19:54of humor the first time they printed
- 19:55that essay um it's on our it's on the
- 19:58moonshot website he misprinted it and it
- 20:00was misprinted as moon
- 20:05>> That's so good. Nice big glossy book.
- 20:07And there it was. And the moon should.
- 20:09>> What did he really think of that essay?
- 20:10Huh, George?
- 20:11>> You know,
- 20:13>> drinking water, waste water. It it it
- 20:16still kind of works.
- 20:17>> Yeah, I did. I sort of got I loved it.
- 20:19Got humor from it. The other element
- 20:21that connected to that and leads to the
- 20:23moonshot missions is a 501c3. It's
- 20:25designed to help communities assess,
- 20:28identify, procure, and implement
- 20:31innovations. And talk about balance
- 20:33sheet. We'll sol we'll help solve any
- 20:36problem that we find when we connect
- 20:38with a utility. But our goal is not just
- 20:40to solve a problem because if there's an
- 20:42underlying financial mismatch that is
- 20:45just kicking the can down to the next
- 20:47problem.
- 20:47>> Yeah.
- 20:48>> Our goal is to find some will solve the
- 20:51problem that helps build trust. Now you
- 20:53have a relationship. So now what are the
- 20:55projects you could undertake that would
- 20:57improve your performance and improve
- 21:00your balance sheet? So you fundamentally
- 21:02have a different financial picture going
- 21:04forward. That's the moonshot. Not a
- 21:06project
- 21:07>> but a scheme and a route. And
- 21:10>> what is
- 21:12amazing is it's been working really
- 21:14well. What I what no one warned me both
- 21:16of you is how hard a startup is.
- 21:19>> I mean we had I had a piece of paper. I
- 21:21wrote the essay. Here's how we would
- 21:23start. We sat in our living room and
- 21:25we're going to start Moodshot. And I
- 21:27left EC water having no idea
- 21:30>> Yeah. what it takes to do what you've
- 21:32done. And it's it's hard because we're
- 21:34being hired. People are like, "Well,
- 21:36where's per wait? We don't have
- 21:37personnel rules."
- 21:38>> Yeah. Yeah. Workers compensation
- 21:40filings. What what workers finance we
- 21:43have? Now I need a a finance system that
- 21:46can allocate costs from people to
- 21:49various what and building all that. And
- 21:52your plane is flying and your engine is
- 21:54sort of on fire and you try to put it
- 21:56out and put in a good engine all at the
- 21:58same time. It's it is exciting, but it's
- 22:01also it's an it's it's in it's an
- 22:04incredible challenge
- 22:06um that you all as entrepreneurs do sort
- 22:09of instinctively. And I have I it's not
- 22:12that I didn't respect entrepreneurs. I
- 22:14just had never done it myself. So I've
- 22:16run big agencies. I had a personnel
- 22:18offices and procurement of all those
- 22:20things. So yes, we had to make them more
- 22:22efficient and do change. But those
- 22:24things you I need to hire someone.
- 22:25Someone say okay you'll have to do it.
- 22:28Now I want to hire someone. Everyone's
- 22:29looking at each other like who's got oh
- 22:32wait that's us.
- 22:33>> Yeah. So now I'm curious then George uh
- 22:37how as an entrepreneur starting a new
- 22:39company how have you found procurement
- 22:43and um customer adoption as you know as
- 22:47an entrepreneur and owning your own
- 22:49company. How's that been for you?
- 22:51Um uh I will try not to overstate this
- 22:55but I think the general public approach
- 22:59to procurement is an abomination.
- 23:03>> Um we have had communities that want to
- 23:05hire us where I know people there and it
- 23:09takes them a year. Um we just had a RFP
- 23:13that we responded to. I don't know
- 23:15whether we'll be selected but it's at
- 23:17entity we know and we were told well
- 23:20glad you submitted we'll be reviewing
- 23:22we'll let you know what's likely to
- 23:23happen in a year
- 23:26and what agency that is building like
- 23:29ours I'm I'm impressed that you were
- 23:30able to survive that gauntlet
- 23:33>> and that's happened to us over and over
- 23:34and over again um another state agent
- 23:37this that was a a utility a state
- 23:39agencies uh wanted to hire us to do TA
- 23:42work we're I've got a great team we're
- 23:44good at what we we deliver results
- 23:46>> and again it took almost a year
- 23:48>> for us for them to get us under
- 23:50procurement. I think that's outrageous.
- 23:53It's not only that it's almost
- 23:54impossible for small organizations like
- 23:56ours is not small anymore but to grow
- 23:59when you have you got to put all that
- 24:00money and time in upfront and wait a
- 24:03year to make any revenue in return all
- 24:06this help of small businesses and
- 24:07otherwise it's the system of delay and
- 24:10then when I look at what the
- 24:12requirements are they become so
- 24:15overblown and I'm a public sector guy of
- 24:18course public money needs to be spent
- 24:19well
- 24:20>> right
- 24:21>> but I I think we have a reckoning in
- 24:23this country that we've made it so
- 24:24difficult to that we actually spend more
- 24:27money more public money I think of all
- 24:30the not only of our time but all of the
- 24:33public sector positions in the utilities
- 24:35or the states or the feds who are
- 24:37spending all of their time going through
- 24:39all these new steps over and over and
- 24:42over again.
- 24:44how much transaction cost which is
- 24:46interesting to me because one of the
- 24:47things we did at DC water and we
- 24:49encourage at moonshot is to look at
- 24:51system cost.
- 24:52>> Yeah,
- 24:53>> I'll give you an example. Yeah, this we
- 24:55did this at DC water. A meter turn the
- 24:57clean water the meter turns that's your
- 25:00beginning of your cash register and at
- 25:02some point at the end a dollar comes
- 25:04into your cash register. The question we
- 25:06asked, and this is a moonshot issue we
- 25:08take to the utilities we work with, is
- 25:10do you know how much of the dollar that
- 25:12came in your cash register, you spent
- 25:15getting the dollar?
- 25:17>> And what I found at DC Water shocked me.
- 25:19It was 30 cents, 30% because of all the
- 25:22steps and procurement, this that and the
- 25:24other. And when we started reducing
- 25:26those costs by becoming systematically
- 25:28more efficient, it's like a rate
- 25:30increase without a rate increase. And
- 25:31that's what every utility can do. And
- 25:34what I I I haven't figured out exactly
- 25:37how to do this. I know inside an agency,
- 25:39I know what they can do. Uh we have a
- 25:41whole series of things to make an agency
- 25:43more efficient and effective that drives
- 25:46change in cost reduction, things your
- 25:48customers will love them.
- 25:50>> Yeah.
- 25:50>> But the folks that we submit to, I uh I
- 25:54think we have a reckoning. I'm I'm I'm
- 25:56really shocked at how how hard it is to
- 25:58do the public work and how much money is
- 26:01spent just on the transaction not the
- 26:03work itself.
- 26:04>> I mean that is actually that is
- 26:06fascinating to think about you know
- 26:09gross margin as it comes to water and
- 26:11just if we just improve the gross margin
- 26:13of the product how much better off would
- 26:15our utilities be? So if if you say you
- 26:18started a baseline of 30 like where
- 26:19where do you think reasonably could go
- 26:21George? like what what do you think is
- 26:23an appropriate kind of margin on that
- 26:25dollar of of water?
- 26:28>> We I think reduced it to 10%.
- 26:31>> Reduced it to 10%. Yeah. Yeah.
- 26:33>> And I don't know what the right I always
- 26:34figured that I want eight. I mean that's
- 26:37where you were constantly striving to
- 26:39get better. Another quick one is when a
- 26:42part broke and when it was delivered. We
- 26:44found when we looked at it and here's
- 26:46the issue for most utilities is nobody
- 26:49looks at it across the system. Your
- 26:51finance office is getting more efficient
- 26:52on finance. Your procurement office is
- 26:54getting more each piece of the agency
- 26:58may get more efficient but there's very
- 27:00few folks that look across and it was
- 27:02across where most of the time was lost.
- 27:05The handoffs from one oh procurement's
- 27:07finished now let's go back to finance.
- 27:08Well now finance got send it back over
- 27:10to legal. the legal all these handoffs
- 27:12is where and when we really started
- 27:14making efficiency is when we looked at
- 27:16that as a system that's rarely done. Um
- 27:20and that's where tremendous improvements
- 27:23and efficiencies can be gained which
- 27:25guess what the utility gets to reinvest
- 27:27back right that's real money all the
- 27:30things and then you get this
- 27:33>> momentum going and that's what happened
- 27:34at DC water once the momentum started
- 27:37I'll tell you another quick I'm sort of
- 27:39rambling on but the question in moonshot
- 27:42delivers is how to create systems and
- 27:45utilities that drive continuous change
- 27:48not just a project and I'll give you an
- 27:50example at DC1 and any utility can do
- 27:53this when there's a capital project that
- 27:55comes up of whatever size so scale is
- 27:57less important do you ask the question
- 28:00of return on investment or system
- 28:03program life cycle costs usually the
- 28:05answer in the past has been no you're
- 28:07looking for low cost bid and and what we
- 28:10found is we required business practice
- 28:13business plans for capital projects that
- 28:16had life cycle costs and return on
- 28:18investment. It completely changed how we
- 28:20invested our money and we started
- 28:22generating returns. Here was the next
- 28:24question. So I had one of my best
- 28:25division directors came in and said,
- 28:27"Well, I've done all these projects that
- 28:28saved money. You know what you did to
- 28:30me? You just cut my budget." So what
- 28:32incentive do I have other than the pat
- 28:34on the back that we did a good job. So
- 28:37we created a clawback that if you save
- 28:40$100 on your project, you get to keep 15
- 28:43in your budget for a project of your
- 28:46choice. not the headquarters, not front
- 28:48office choice that created an internal
- 28:51incentive
- 28:52in order and and all of a sudden every
- 28:54division director was I want to have
- 28:56that money. I want to do this forever. I
- 28:57want to do that forever. And again,
- 28:59those are system changes any utility
- 29:02could put in place at their scale that
- 29:04start driving change because of the way
- 29:07the system works rather than the way the
- 29:09system often works now, which is
- 29:11inhibiting change. so hard to try
- 29:13something new and to procure something
- 29:14new and what should the do they have the
- 29:16resources to do it. Moonshot helps with
- 29:19that question but we don't want to we
- 29:21would like to help a utility adopt some
- 29:24of these systems and then they're on
- 29:26their off they're like we taught how to
- 29:29fish and they're now fishing and going
- 29:30forth and we can move to the next place.
- 29:32It's a it's exciting cycle but it's
- 29:34possible we can do this.
- 29:36>> Yeah.
- 29:37>> And the question is is
- 29:38>> I love it.
- 29:39>> Yeah. Well, we we were talking uh
- 29:42earlier um before the podcast when Megan
- 29:45and I were just um excited to have you
- 29:47on about
- 29:50the innovation around process was also
- 29:53in um in procurement and that aspect of
- 29:59um Megan was telling a story and I I'll
- 30:02let you tell it but just of um uh the
- 30:05way you surround yourself with people. I
- 30:07just remember George comment I think you
- 30:09made this I don't think I dreamt it that
- 30:11that you said you put you purposely sat
- 30:14procurement near your office you know
- 30:16but I mean just you know anecdotally
- 30:18like be close to the solution right but
- 30:21then you also shared in the pre in the
- 30:22pre-show some of the very cool things
- 30:24that maybe moonshot is trying to do
- 30:27around that issue and be part of that
- 30:29solution that I agree with you is
- 30:30absolutely broken. it's inhibiting any
- 30:32sort of innovation and honestly it's
- 30:34killing small business like why start a
- 30:36why start a business in water if you're
- 30:38not going to be able to you know
- 30:39generate revenue and hire great people
- 30:41and all of the things that you need just
- 30:42to build a great business. So um are you
- 30:45able to share a little bit about how
- 30:47Moonshot is kind of solving that?
- 30:49>> It's a great question. I some of the
- 30:51instrumental I I hired a full-time
- 30:53external affairs officer who started
- 30:55building our communications team. I
- 30:57hired a full-time energy officer to
- 31:00because that was the third highest cost
- 31:01on our balance sheet. You had to say
- 31:03money look at where the money's being
- 31:04spent. Third is I hired an innovations
- 31:08chief. That was Sudier Murthy who just
- 31:09started driving what the innovation
- 31:11should be. My job was how how can we
- 31:13make it happen? His was well what should
- 31:15it be? And the is I hired a procurement
- 31:18chief which we didn't have before. Um
- 31:20and I sat up two doors away. Okay.
- 31:22Y
- 31:23>> and and I wanted him to come and I would
- 31:26check in with him every day, not every
- 31:27day, but all the time. What's going on?
- 31:29What's what's the problem? What are the
- 31:30holdup? And we found that our
- 31:32procurement rules were inhibiting a lot
- 31:35of the innovations that we wanted to
- 31:37achieve like paying far more upfront but
- 31:40knowing that it was a permanent cash
- 31:42flow positive project. Does was there a
- 31:46way doing a design build design build
- 31:48operate the kind of thing we did with
- 31:49thermal hydraulysis. So we ended up
- 31:51completely rewriting our procurement
- 31:53manual from start to finish. Um and the
- 31:56idea of doing a clawback or awards to
- 31:58employees for innovations that meant
- 32:00personnel rules that encouraged. So we
- 32:03we made modifications to our personnel
- 32:05rules. So there was a whole budgeting
- 32:07this whole question of requiring a
- 32:09business plan was something we changed
- 32:12the capital budgeting process. So we had
- 32:14changes that we encouraged in
- 32:16procurement in personnel and in
- 32:18budgeting the scheme of which started
- 32:21generating the projects we saw and they
- 32:24weren't coming from us. that were coming
- 32:25from the system. And once that starts
- 32:28happening, then your challenge is a
- 32:30really fun one, which is of all the
- 32:31things that are coming, which one should
- 32:33we do? Because it turned out we were
- 32:34getting more than we could handle. But
- 32:37that's a great problem to have all of
- 32:39those changes. And for lack of a better
- 32:41phrase, at Moonshot, we call that
- 32:42utility performance management, UPM. And
- 32:46we have models for what we would seek.
- 32:48and we're just about to launch a project
- 32:50uh in the Great Lakes where we're going
- 32:52to systematically be building those
- 32:55tools, but one of the things I've
- 32:57realized is how to make sure they're
- 33:00customized or sized to smaller, less
- 33:03resourced utilities because one of the
- 33:05things I was able to do at DC Water is I
- 33:07had a whole legal team. I had all these
- 33:09people. The same tool that worked at a
- 33:11DC water scale won't work in a smaller
- 33:14community um in anywhere in the country.
- 33:17So, we've got some work to do to make
- 33:19sure we scale it to the audience that we
- 33:21seek. And it probably are going to be
- 33:23starting with one or two things rather
- 33:25than the full suite. But what I found at
- 33:28DC waters once you get momentum and the
- 33:31we went to a utility in in the Midwest
- 33:34helping them with innovation on
- 33:35technology that was the question and
- 33:37this is the other point that Moonshot
- 33:40focuses on. I don't believe we have a
- 33:43what problem in the water sector. If you
- 33:45go to Wettech or ACE or any of these,
- 33:48there's a horde of innovations that are
- 33:50out there ready to be implemented. The
- 33:52what is very and it's not hard.
- 33:56I don't the local people we work with
- 33:58are so smart and hardworking. They just
- 33:59don't have the time. It's not hard for
- 34:00an organization like mine with
- 34:02experienced folks to go in and say,
- 34:03"Here's five things you could do."
- 34:05That's the what. Where we find most of
- 34:08the challenges are, and this is scales
- 34:09to every utility of size is the how.
- 34:12I've got union issues. I've got
- 34:14personnel who are suspicious that this
- 34:16change is going to take their job away
- 34:18or have them do something they don't
- 34:19know how to do. That's or there's I know
- 34:22at DC water this was true. The
- 34:23maintenance crews and the engineering
- 34:25crews maintenance felt that engineering
- 34:27was engineering stuff that maintenance
- 34:28didn't or didn't ask maintenance and
- 34:30engineering felt that maintenance was
- 34:32hold there's and that had been going on
- 34:34for decades. typ yeah typical
- 34:36interpersonal comp
- 34:38>> personal and moonshot spends as much
- 34:40time if not more on that not the what
- 34:42because that's actually not the thing
- 34:44about a utility that hasn't had a lot of
- 34:45innovation is there's a lot of what I
- 34:47would call lowhanging what's there a lot
- 34:49of things again it's they're great
- 34:51people working hard they just haven't
- 34:53had the time or money to implement so
- 34:55figuring out what's are not hard how an
- 34:58organization with limited resources can
- 35:00adopt something new what kind of work do
- 35:03we need to do with your personnel
- 35:04before you do any innovation so that
- 35:07they are encouraged not failing like I
- 35:09always say let's have innovation be with
- 35:12and for your people not to and at them
- 35:16and all too often innovation is in that
- 35:18second category the folks first time
- 35:20they hear of it is when someone walks in
- 35:21and say oh we're changing this way we do
- 35:23things and the team has never been asked
- 35:25their opinion never been a part of the
- 35:27process and it feel like something's
- 35:28being imposed on them that they don't
- 35:30understand that's going to fail or at
- 35:32least be slow and challenging every
- 35:36single time. And that's a our that's an
- 35:38own goal. We did that to ourselves. We
- 35:40can do that right. And Moonshot spends a
- 35:43lot of time with the utility on the
- 35:45ground. We start with operators. I've
- 35:47got a whole slew of really highly
- 35:48trained operators on our team. We want
- 35:50to make sure the operations staff are
- 35:52heard and listened to. We call it humble
- 35:54listening before we go to any solution
- 35:57finding. And it's amazing what that kind
- 35:59of what that the doors that that opens.
- 36:02Mhm.
- 36:02>> Yeah.
- 36:03>> Yeah. That that's one of the points that
- 36:05you just made was one of those early
- 36:08messages that I I read an essay that you
- 36:10wrote shortly after I started at 120
- 36:13where you were you were talking about
- 36:15how um innovators like 120 water, you
- 36:19know, it's annoying to have someone like
- 36:22us come in and say, "Hey, you need a
- 36:24smart technology." Instead of saying,
- 36:26"Hey, it's the people that are smart."
- 36:29And we don't message that we're smart.
- 36:32We message that our technology helps you
- 36:34be digital about it, maybe helps you get
- 36:36some efficiencies, but the people that
- 36:38you hire, the people around the room at
- 36:40a utility are smart, capable problem
- 36:43solvers. And as good as our software is,
- 36:45it never can dig a hole or put a shovel
- 36:47in the dirt. um it'll it can only help
- 36:50you make some mar marginal um
- 36:52>> improvements and insights and hopefully
- 36:54help me help you work better. And I
- 36:56think
- 36:58>> you now on the flip side get to do that
- 37:00same experience where you honor the fact
- 37:03that the people that you work with are
- 37:06smart problem solvers. It's more about
- 37:08sequence
- 37:10um having some structure to think about
- 37:13implementation um more than it is um
- 37:17>> the actual technology.
- 37:18>> Yeah. More than it is about like well
- 37:19you need all these technologies.
- 37:21>> I I I would say two things. One is I
- 37:23always admired from the very beginning
- 37:25when I was I know it wasn't the very
- 37:27beginning but for me early on in your
- 37:29evolution as a company I felt you were
- 37:32really good listeners and you were
- 37:33understanding what the challenge was
- 37:35that you were overcoming and you started
- 37:37there not with I'm coming in I'm smarter
- 37:39than you and I've got something that no
- 37:41here's a challenge that we know you have
- 37:44we've listened and heard we'll listen to
- 37:45your team but we have some thoughts
- 37:46about how to help you overcome a
- 37:48challenge that you have. I thought you
- 37:49did that really well. Um the imperative
- 37:53on this is it could not be more uh
- 37:56fundamental. I believe no matter what
- 37:59funding there is obviously
- 38:00administrations have changed and all the
- 38:02rest and where's there
- 38:04yes that matters but ultimately I think
- 38:07it doesn't matter no matter what the
- 38:09level of federal funding it's not enough
- 38:13the capital short fund I've seen dollar
- 38:15numbers from 90 billion to 110 billion a
- 38:18year capital shortfall that's for known
- 38:20projects I found at DC waters there was
- 38:22another hundred billion in projects that
- 38:25wasn't on our list yet because we hadn't
- 38:26looked Yeah.
- 38:27>> Yeah.
- 38:27>> I think the notion of what that number
- 38:29is is huge. And if we just keep doing
- 38:32what we've always done, we fail because
- 38:34we don't have enough revenue. The notion
- 38:37of working with the balance sheet and
- 38:40systematically implementing projects
- 38:42that may cost a little more upfront but
- 38:44then offer permanent savings and
- 38:47creating systems that drive that
- 38:49continuously over time. To me, it's the
- 38:51only way we solve this. And that becomes
- 38:54and here's the great reason I formed
- 38:56great is wrong word but the reason I'm
- 38:58formed moonshot is the places that need
- 39:01that the most are the ones without help
- 39:04are least able to access it not because
- 39:07they aren't hardworking good they're
- 39:08amazing people given what they do I run
- 39:10the backhoe I send out the bills my
- 39:12wife's sitting over there and she's
- 39:14where they're they're multitasking every
- 39:16day um it's just they don't have the
- 39:19time or wherewithal to implement the
- 39:21projects that would put their utility in
- 39:23a sustainable path and we have to do
- 39:26that at every size. It's it's the yes
- 39:30the ones that are less resourced are the
- 39:32ones that need it the most but all
- 39:34utilities need it and I know at DC water
- 39:36every year I I've told this story we
- 39:39changed the way we presented our case to
- 39:41rateayers and I felt I had two cases I
- 39:43had to make to a rateayer and did it
- 39:45personally in 65 rate hearings while I
- 39:48was there and the first case was can I
- 39:51prove to you that this year we are more
- 39:55efficient with your money than we were
- 39:57last year. It costs us less money to
- 40:00replace a lead service line. It costs us
- 40:02less money to replace a fire hydrant. It
- 40:03costs us less money to treat a gallon of
- 40:05waste water because of the things we're
- 40:08doing on your behalf. And you should ask
- 40:10that and demand that of us every year,
- 40:13which requires the innovations I've been
- 40:15talking about. I've got to prove to our
- 40:17rate base that we're doing better this
- 40:19year than last year. That opens the door
- 40:21for the second conversation, which is I
- 40:23do need more of your revenue. And I got
- 40:26to prove to you that there's value to
- 40:28you and the work we will do with that
- 40:30money. But the qu you shouldn't even let
- 40:33me ask that question unless you know
- 40:35this is not a bloated public agency all
- 40:37that stereotype being inefficient. No,
- 40:39I've just proven to you we're efficient.
- 40:40And by the way, we're going to come back
- 40:41next year and be even more efficient.
- 40:44The revenue that I need is for projects
- 40:46that make this city a better city. You
- 40:48know that flooding down by the river
- 40:50near your neighborhood. And by the way,
- 40:52in our capital project, one overlay
- 40:54there's there's likelihood of failure
- 40:56and consequence of failure. Sort of
- 40:58classic asset management. The other
- 41:00overlay is we need to do work in every
- 41:02neighborhood of the city so that
- 41:04everybody who's investing in us sees
- 41:06something visual and it sort of
- 41:08connected to them that's benefiting. So
- 41:11we make sure every part of the city was
- 41:13benefiting from our capital program. So
- 41:15we could say, you know, this money that
- 41:16we're asking for, that flooding problem
- 41:18down on Beach Road that you've had for
- 41:19the last 30 years, we're going to solve
- 41:20that. That's the kind of thing we're
- 41:22doing it. And people are like, oh, I get
- 41:24that. That makes a difference to me. So
- 41:27anyways, uh it's it's something that
- 41:29every utility I think we fail as a
- 41:33sector if we don't systematically adopt
- 41:36the environmental, public health, and
- 41:38balance sheet projects. And the answer
- 41:41is we can. They exist. The question is
- 41:44how to systematically do it and that's
- 41:45what Moonshot seeks to do with
- 41:46communities all over.
- 41:47>> Yeah. And you mentioned earlier too this
- 41:49concept that I
- 41:51>> I find as you know as solution providers
- 41:54in the space the biggest challenge um is
- 41:58scaling a solution down. Like we love
- 42:00thinking about scale like oh can this
- 42:02work in DC water? this work in Denver,
- 42:05but like can you scale the offering or
- 42:08the solution or the pricing, the
- 42:09packaging to meet the need of
- 42:14>> of the water utility that has
- 42:16>> two and a half employees. Um, and and I
- 42:20I think that's
- 42:22I I love that that's what Moonshot has
- 42:24done is like saying, "Hey, let's take
- 42:26this and focus on scale, but can it
- 42:29scale
- 42:31to the lowest?" And
- 42:32>> we're not perfect at that yet. We're
- 42:33still working on that as well because
- 42:35many of the people at Moonshot, we've
- 42:37got an incredible roster of ex CEOs,
- 42:40exchief engineers, operators, research
- 42:43scientists. Our view is when we meet a
- 42:46utility, we can send someone to talk to
- 42:49someone at the utility at any level
- 42:50where it's a peer.
- 42:53>> So, because that opens the door
- 42:54automatically when an operator knows
- 42:56they're talking to an operator and they
- 42:57start having operator- like
- 42:58conversations. I can't do that when
- 43:01talking to the GM or the board of
- 43:03director. I could do that. But we want
- 43:05to be able to meet a utility in every
- 43:08place. Um but the the challenge of how
- 43:11to scale
- 43:13big utility implementation to small
- 43:17utilities where personnel is usually the
- 43:18big we can find financing. Some of these
- 43:21have a return on investment that private
- 43:23financing is possible because you could
- 43:25share the savings with an investor and
- 43:27move quickly.
- 43:29um the that challenge is people that oh
- 43:32gosh I've got two operators who's going
- 43:34to be able to operate this well that's a
- 43:36question we like because of okay here's
- 43:38let's here's a plan um but our notion
- 43:41I'll just quickly chart this out we want
- 43:43we are building an agenda uh I call it
- 43:46the plus three agenda for lack of a
- 43:48better phrase to think of a better one
- 43:50but what are the 12 utilities are far
- 43:52more alike than they're different with
- 43:54lift stations pump stations what are the
- 43:5712 most common steps that a utility
- 43:59could take that will improve performance
- 44:01and save money. Those two requirements.
- 44:04Second, what is a streamline assessment
- 44:07process starting with this humble
- 44:08listening and then what we call
- 44:10collaborative ingenuity of which of
- 44:12those 12 are relevant to any utility? We
- 44:15can get there pretty quickly. So,
- 44:17there's three. All right. Now, we've got
- 44:19a little agenda for your utility. Now
- 44:21the third is how do we implement and
- 44:23scale the three solutions that will save
- 44:25you money improve performance and then
- 44:27get to finance and our view is that
- 44:30process can be pretty quick and like I
- 44:33said because these are focused on return
- 44:35on investment projects it's also subject
- 44:38to potential private funding which can
- 44:41move much faster. We're going to save
- 44:42$100. Well 20 of it are going to go back
- 44:44to the bank that funded this and 80 are
- 44:46going to go to you or whatever the split
- 44:48is. But as a result, you don't have to
- 44:50put up any of your rate revenue up front
- 44:53in case you have a debt cap or operating
- 44:55deficit. And what a story you have to
- 44:58tell. Um, uh, we had a utility that we
- 45:01helped and we we encouraged them and
- 45:03they're now putting in a waste recovery
- 45:05system that's going to generate cash
- 45:06flow. It's going to ch all these good
- 45:09and they went from being a utility being
- 45:11attacked in their community to doing a
- 45:12press conference with the congresswoman
- 45:14and the mayor about this whole new path
- 45:17they were taking. We weren't on the
- 45:18podium. we weren't even mentioned. We're
- 45:20in the background sort of like cheering
- 45:22on um and and they're just they're off
- 45:26to the races. That's the moodshot.
- 45:27They're on their way and that's what we
- 45:29would like to see and it's possible
- 45:31almost anywhere in the country.
- 45:33>> Yeah. I Well, I just George I want to
- 45:35thank you. I mean I knew you know I
- 45:37obviously we're familiar with uh you and
- 45:39familiar with Moonshot and have an
- 45:41appreciation for what you're doing, but
- 45:42I will tell you this this time with you
- 45:44have given me like I said you were
- 45:46meeting an unmet need. you're not only
- 45:48meeting an unmet need, but you're
- 45:50probably tackling the hardest um thing
- 45:53to tackle in this industry at a macro
- 45:55level, which is systematic change and
- 45:58getting us to think differently and
- 46:00appropriately about what we actually
- 46:02need to solve for in order to be more
- 46:05innovative to, you know, order for us to
- 46:07be more sustainable. and just thank you
- 46:09for allowing Moonshot to exist to really
- 46:12tackle those what I'm calling first mile
- 46:14issues that if we don't tackle and solve
- 46:16in an industry,
- 46:18you know, I I worry what change we're
- 46:20actually going to be able to make. So,
- 46:23>> well, thank you both for having me. Like
- 46:24I said, I'm a huge admirer of not only
- 46:27what your company does, but how your
- 46:29company has tackled those same questions
- 46:31so successfully.
- 46:33Wow. Blessings to you. Um, and second,
- 46:36thank you for as well.
- 46:37MoonshotMissions.org is our website.
- 46:39People can see the scale and depth of
- 46:42the people we have. They're such good
- 46:43people. They
- 46:44>> talked about I'm so impressed with the
- 46:46people you will you can you just kind of
- 46:48brag on your team for a minute.
- 46:50>> Sure. We just hired We just hired
- 46:53someone on last Monday and the Monday
- 46:54before. The woman we hired got her
- 46:58training in Louisiana and was has been
- 47:00in eight years helping small systems as
- 47:02an operator. The person we hired before
- 47:04that was running facilities in Milwaukee
- 47:07waste facilities and it started as a
- 47:10line operator and worked his way up and
- 47:12both of them love the have always wanted
- 47:15to have a job where they get to help
- 47:17their peers in communities and it's this
- 47:20great sense of worth in the work. It's
- 47:23amazing. And you look at our team, we've
- 47:25got classware drinking water wastewater
- 47:27operators. We have research scientists
- 47:29at the PhD level who got their PhDs at
- 47:32wastewater and drinking water
- 47:33facilities. We've got engineering pees,
- 47:36probably 15 pees on the team. We've got
- 47:39a whole slew of of um ex CEOs like Andy
- 47:43Kicken from Camden County, Michael Muka,
- 47:45Shannon Gordy who ran Harrisburg Capital
- 47:49Region Water. Um, so we have folks that
- 47:52can communicate, but the what binds us
- 47:54together is this great sense and love of
- 47:57the sector, desire to serve and belief
- 48:01that we have a model here that isn't
- 48:03just solving a problem and kicking the
- 48:05can down the road. we can help solve it
- 48:07in a systems way which actually could
- 48:10yield a sustainable outcome for this
- 48:12essential service that does butress
- 48:14every single job and every single person
- 48:17in life form in any community. What's
- 48:20more important than that? So, we love
- 48:21doing it and like I said, I keep
- 48:23watching you guys so I can learn from
- 48:25the masters. Um, but it's it's been a
- 48:29delight. I I love the team and I love
- 48:30the work.
- 48:31>> Yeah. Well, you know, we can't thank you
- 48:33enough for joining us. And thank you um
- 48:35to all of you who tuned in and listened
- 48:37in. Um we love making this podcast. This
- 48:40has been um so much fun to have
- 48:42conversations with amazing folks who
- 48:45make water work. And if you know of
- 48:47anyone else who makes water work and you
- 48:49want to hear um hear from them, please
- 48:52shoot us a note and let us know who else
- 48:53you want to hear from. Um we love George
- 48:56and George, if you have any uh any
- 48:58guests, send them our way. Um, we we
- 49:01love like-minded folks who uh who can
- 49:03challenge us to think better.
- 49:05>> Absolutely. You, like I said, I've I've
- 49:08known of and watched you since the very
- 49:10beginning, and I love the story arc.
- 49:12What you're doing is a blessing for this
- 49:14actor, and so anything I can do to be of
- 49:16service, and there are a lot of voices
- 49:17out there, so I'll be glad to help on
- 49:19that front.
- 49:20>> Thanks, George.
- 49:21>> Thanks.
- 49:23>> I love George. He's always inspiring to
- 49:26talk to and I love the insight um and
- 49:28the energy that he brings. Um yeah, what
- 49:31did you take away from that
- 49:32conversation?
- 49:33>> Oh my gosh. I mean, so much. I mean, we
- 49:35could have multiple conversations with
- 49:36him about so many different topics, but
- 49:38I think um just my further appreciation
- 49:41for what Moonshot is doing and I think
- 49:44the the ultimate problem that they're
- 49:46solving, which is the root cause of why
- 49:49innovation is so stagnant in water. Now,
- 49:52as I think about 120 water and and where
- 49:55we've actually failed,
- 49:57>> it's on the change management component.
- 50:00>> We have failed to um educate
- 50:03procurement. We have failed to educate
- 50:05all of the stakeholders um around the
- 50:08change, the innovation, the adoption.
- 50:10And I think so much of that uh success
- 50:14in transforming an industry and bringing
- 50:16innovation into a stagnant industry
- 50:18industry starts with change management.
- 50:20I just love that Moonshot is addressing
- 50:22that um for systems that need it the
- 50:25most. That's what I took away.
- 50:26>> Yeah. Yeah. I love it. And that that's a
- 50:28theme that I really have been thinking a
- 50:30lot too about is that that change
- 50:32management aspect. And um to your point,
- 50:35like when you're working so fast, it can
- 50:37be easy to just say, well, I need to
- 50:39adjust address the problem in front of
- 50:41me. Y
- 50:42>> instead of taking a step back and also
- 50:44saying how can I modify the system that
- 50:48may have created the problem or is this
- 50:50an opportunity to rewrite the system in
- 50:52a way that makes us um better and um
- 50:56gives us a better framework for
- 50:57decision-m for the long term.
- 50:59>> Absolutely.
- 51:00>> Yeah. Yeah. So I I just love um every
- 51:04time I get to talk to George one I mean
- 51:08he he sings our praises. It always feels
- 51:10good. right
- 51:12>> to talk to George when he starts with um
- 51:14with with how much he admires us. Um but
- 51:17he's been a cheerleader for um for the
- 51:20industry and for um the way he is
- 51:22scaling down what they do is just um
- 51:25it's just amazing. I can't wait to watch
- 51:26the impact that they have.
- 51:28>> Yeah. And I hope this gives more
- 51:29exposure to systems that aren't aware of
- 51:31Moonshot and and what they're doing. I
- 51:33would definitely encourage any any folks
- 51:35who are not aware of Moonshot to go
- 51:37check out their website. They are doing
- 51:39incredible work and um and certainly go
- 51:42support them.
- 51:42>> Yeah. Yeah. And there's no problem too
- 51:44big or too small that they won't um take
- 51:46a look at. That's right.
- 51:47>> So, and thank you so much for joining us
- 51:49on the Make Water Work podcast. We love
- 51:51this opportunity to have conversations
- 51:53with folks like George. And we love
- 51:55hearing from you. Um hearing the impact
- 51:57that these conversations are having or
- 51:59anyone that you want to hear from who
- 52:01you know makes water work. So, send them
- 52:03our way, like, share, follow. Um it
- 52:07really helps us. um amplify this
- 52:09message. Thanks for listening to the
- 52:11Make Water Work podcast. If you enjoyed
- 52:14today's episode, please take a moment to
- 52:16like, share, and subscribe so you never
- 52:19miss a conversation. We'd love to hear
- 52:21your thoughts and questions. Connect
- 52:23with us on LinkedIn or send us a
- 52:25message. Together, we can make water
- 52:27work for everyone.