Consulting: Life Beyond the Lab

A couple of decades ago most chemists could be assured that if they did a good job in the research organization of a profitable company they could look forward to continued employment until nor mal retirement age. Nowadays that is no longer the case. In scores of situations in recent years—involving companies as diverse as du Pont, Stauffer and Gulf—large chunks of research laboratories, or even whole labs, have been wiped out, and experienced researchers have been terminated or forced into early retirement. It's extremely difficult for scientists in their 40s and older to find places in another research organization. So more and more individuals have been forced to try their hand at something else or, if they want to stay in chemistry, to be come consultants in hopes of augmenting their diminished incomes. This is not easy even when the employers help their cast-offs get started. However, forming or joining an organization of consultants can smooth the way. The group of which I am president was formed in 1978 through the American Chemical Society's California Section, to provide a convenient, friendly mechanism whereby retired chemists and chemical engineers would join together to carry out for-profit and non-profit ventures in consultancy. Because, for obvious reasons, we could not conduct fee-for-service operations under the aegis of the American Chemical Society, we decided to form a separate organization, which we called Calsec Consultants and incorporated as a "close" corporation in the State of California. This has a rather simple structure, being limited to a total of 10 stockholders. We accomplished our incorporation using instructions, purchased at a cost of $37.22, from the Nob Press. Then came the rather irk some task of setting up guidelines for procedures, devising forms, at tempting to get liability insurance for the corporation, and generating publicity. We decided that we had to set fees that were reasonable but not so low that they would under cut other consultants. Our sliding scale starts at $500 per day for the first two days of work and then falls to a rate of about $35 per hour for long term tasks that last one month or more. Fee-for-service activities represent an area fraught with many rocks, mines, and torpedoes; more than half of the inquiries we get are fishing expeditions or come from people who want something for nothing. However, we have established cordial relations with a number of companies who come back periodically with problems on which they would like help. The range of problems is extremely broad. Typical examples include monitoring companies' use of new equipment, improving the proper ties of materials, and developing catalysts. Our most treacherous clients have been lawyers. It is very discouraging to do a lot of work for a lawyer under a contract that, after the trial is over or settlement reached, is repudiated by the lawyer. What can one do in such cases of non-payment? We can't afford to sue in a regular court. We have tried small claims court in a couple of cases, although the current $1500 limit in California usually makes it impossible to obtain the total indebtedness. We won in one case (and were paid about half our bill)—a legal maneuver may defeat us in the other. Another problem is liability insurance. Since the American Chemical Society and American Institute of Chemists dropped their insurance plans last year, we have been unable to obtain insurance at reasonable rates. Hence, it's important that all contracts be written in language that puts the consultant under the umbrella of the clients' insurance. Another problem that we encounter is simply slow pay, although this is not as severe a problem in our case as it is with some small consulting firms, particularly those that do business with the federal or state government. We also undertake non-profit activities, acting as the Senior Chemists Committee of the California Section. We attempt to give advice to government officials at all levels. We respond to pleas for technical advice from individuals whom we feel it would be inappropriate to charge. For example, in 1983 we conducted a survey of the then-1600-plus retired and emeritus members of the ACS living on the Pacific Coast and received 650 re plies. The information was re ported at a symposium that we organized for the Professional Relations Division at the Seattle Meeting of the ACS. We also attempt to develop projects that will result in salable products, information packages, or films that will be useful—or at least salable—to the general public or specialized groups. Quite a few ideas have been explored but none has yet been brought to a successful conclusion. Is this because older people, in spite of their long experience, do not have as many "flashes of genius" as younger folk, or is it simply because we're not hungry enough? None of our members has to depend on Calsec to survive. Perhaps we should all starve for a couple of days from time to time, for it is said that hunger, like the prospect of hanging, is remarkably effective in sharpening the mind. Nixon, a former president of the American Chemical Society, is president of Calsec Consultants, Inc., Wells Fargo Building, Room 511, 2140 Shattuck Avenue, Berkeley, CA 94704.

Consulting: Life Beyond the Lab

Interested in reading more?

Become a Member of