Innovation

Vigor Industrial is a shipbuilding and repair company located in Portland, Oregon. Although this organization is relatively small, with just over 2,000 employees and seven facilities, CEO and President Frank Foti has found a way to make a significant impact in the overall community. Shipyards often receive negative media attention due to the hazardous chemical waste entered into local bodies of water. As a result of frequent oil emissions from ships traveling in and out of ports, water quality surrounding shipyards is frequently compromised. Notably, that is not the case at Vigor. In fact, Vigor Industrial has an incredibly positive reputation in the Portland community for being socially responsible, partnering local neighbors to better shared resources, particularly water quality and the environment for indigenous marine life.

Recently, Vigor introduced a revolutionary innovation that will change the way the company does business and also positively impact the environment. The firm is engaging in a habitat restoration process, turning an old buildway into a salmon estuary. Salmon frequent the Northwest area of the United States where Vigor is located, so the firm decided to take action, creating a place where this species can thrive. In the February issue of Vigor Vibe, a monthly Newsletter sent out to all Vigor employees, the headlining story reads, “Coming in 2017, A Salmon Estuary at Harbor Island shipyard.” The article goes on to state, “It’s a project we believe will demonstrate that industry and high value habitat can co-exist.”

Inspiration

When asked to share the inspiration behind his work, CEO and President Frank Foti cites a number of different sources. First and foremost, Frank finds inspiration from other well-known business leaders, particularly John Mitchell, the former Vice Chair of Marriott Hotels. Frank explains, “I went to a leadership conference where John spoke. During the speech he explained that you should divide your life into 3 parts: the first part is preparation, the second part is attainment, and the third part is repayment.

In the preparation stage, you are getting ready, taking the necessary steps to succeed in your future career, and primarily learning lessons about how to attain your goals. In the attainment phase you take what you’ve learned and begin to apply it. In the repayment stage it’s time for you to take what you’ve learned, and give back to the community or give to others. In my life right now, I think I am in between stage 2 and stage 3.”

Overall impact

The overall impact of converting primarily unused space into a salmon estuary will be incredibly significant. The salmon population in the Pacific Northwest is large and they are an important part of the broader ecosystem. However, salmon runs have declined in recent years due to over fishing, adverse implications of pollution, and loss of habitat in rivers and streams that salmon typically call home. Due to Vigor’s decision to prioritize the salmon’s natural living space, this organization will not only positively affect the salmon species, but also the broader environment and wildlife community. In Vigor Vibe, the organization describes the innovation as a shallow-water inter-tidal estuary where salmon can rest, forage, and allow their gills to adapt to salt water before they enter the treacherous waters of the Pacific Ocean.

Vigor’s Vice President of Environmental Services calls the project a win-win for both Vigor and the salmon. The organization also offers employees some advice and guidance for how they can have a personal impact in bettering water quality for the broader community. Water quality improvement tips shared in Vigor Vibe include, use lawn and gardening chemicals sparingly, always clean up pet / animal waste, use phosphate free soap when washing your bike or car, and sweep sidewalks / driveways instead of hosing them off. Combining the impact of the small individual decisions made by Vigor employees, and the vast impact of the organization’s choice to build an estuary will create an immeasurable positive outcome.

Business benefit

Vigor industrial is an organization that empowers employees to make the right choices and follow their heart. This business model has been incredibly lucrative for them and continues to provide both tangible and intangible dividends. Frank states, “I am fortunate to lead an organization that lives by their values on a daily basis. I often feel like a passenger of evolution with other leaders in the business. People at all levels of organization are living our values. We foster a culture where you can be the same person at work that you are at home. Employees who work here have no mask at all. At Vigor, we believe that people are fundamentally good and people are most beautiful when they are being who they truly are.” The values of Vigor Industrial are somewhat unique. However, upon viewing the description behind each value, it becomes incredibly evident why this organization has flourished.

The firms values are, TRUTH: We Seek the truth, and we Speak the truth. RESPONSIBILITY: We act on what we know is right. EVOLUTION: We seek mastery, and adapt to a changing world. LOVE: We care about the people we work with and the world we live in. From these values, it is clear that Vigor’s business benefit is contingent upon being socially responsible. Demonstrating that Vigor Industrial has values outside of just producing revenue and generating a profit, illustrates that they want to make the world a better place. Thus, more ship owners want to do business with the firm when they need to store or repair their ships.

Additionally, because Vigor cares about the local ecological system, they have received a large amount of positive press. Vigor's positive reputation within the community has caused many individuals to vocally endorse the organization's business model. That said, Vigor has gained more supporters and clients due to their commitment to putting the community first.

Social and environmental benefit

There are numerous environmental benefits of Vigor Industrial’s efforts. By improving the water and marine life quality of their community, the organization is creating a better, cleaner world. The initiatives implemented by Vigor Industrial are exemplary and incredibly progressive. It signals a change from organizations that are solely focused on financial benefit, to instead, companies that are inspired to make the world a pollution free place. As Frank states, “The environmental work we do at Vigor has nothing to do with government regulations and requirements. It has everything to do with doing what is right and knowing that you’re connected to the world.”

Interview

Frank Foti, CEO & President