Inspiring Others to Succeed | Ray Dillon

 

About Ray Dillon

Ray Dillon began his career as a process engineer working for the Zellerbach Corporation in Bogalusa, Louisiana. As Ray began his career the mill he was working at was just starting to modernize- an enviorment which Ray as a young engineer thrived in. He quickly rose through the ranks and eventually found himself in the company’s executive suite located in Chicago.

Ray went on to become the Executive Vice President of Gaylord Container Corporation until it was acquired by Temple Inland Corporation in April 2002. Most recently Ray retired as the President and CEO of Deltic Timber Corporation, a position which he held for 13 years. Today Ray is actively involved in Arkansas Sheriff Youth Ranch, a nonprofit which works to coach and inspire youth who have been dislocated due to domestic violence. Ray is also involved with Methodist Family Health, a non-profit which provides psychiatric care for children and families. Ray was the first individual in his family to attend college. He earned his undergraduate degree in Chemical Engineering from Mississippi State University and his MBA from the University of Chicago.

 

Interview Transcript:

Alan
Welcome back. I’m here today with Ray Dillon. He’s a weak tired CEO of Delta Timber Corporation. Ray, welcome to today’s show.

Ray Dillon
Thank you for having me.

Alan
So Ray finalists scenarios and, you know, can you bring us through from maybe college, your career path and what brought you up to where you are today?

Ray Dillon
Well, if I could let me start a little further back, because I’m not supposed to be here today. I’m a farm boy from South Mississippi, that was very blessed to grow up in a home with loving parents, and parents and headache, high expectations for the children. So along the way, we had an older sister who a gentleman came into her life that had a big impact on both my brother and I. And he was a chemical engineer. And he worked in the forest products industry, and I was in the ninth grade in high school. And I watched him and him success. And I decided that chemical engineering was a great profession. And I was happen to be good in math and science, and my undergraduate degrees in chemical engineering from Mississippi State University. And I knew at a ninth grade, I was going into chemical engineering, and I knew I was going into the forest products industry and pulp and paper industry. And I did, I also knew I was going to be a CEO one day, because hard work, education and discipline would lead to success and success would be rewarded. And so you know, you I was very wealthy, but yet, you know, motivated to do very well. You know, very wealthy from having loving parents, and an environment that encouraged performance.

Alan
Sometimes putting our treasures in the right thing. It makes all the difference and it as we move through life. Absolutely. So Ray, you came out of school? Yes, chemical engineer.

Ray Dillon
First one to graduate from college in our family.

Alan
And and then where did you start? Where do you land?

Ray Dillon
First job was in I grew up in South Mississippi, and first job was in a community called Bogalusa, Louisiana for Crown Zellerbach Corporation, that corporation no longer exists. But I was an entry level engineer, they’re very blessed that right after going to work, there was a significant modernization of the mill, and I got to be associated with that project team. So if you’re a young engineer, you walked right into a situation where you’re using all your engineering talents, and yet you’re exposed to mentors that help you learn quickly. And so we modernized the middle, and then I came through the middle management chain, I was a department head, then I was a middle manager and another facility and have rebuilt facilities and then wound up in the executive suite in Chicago, Illinois, with that company before it was sold. And, you know, I’ve never had a job that I didn’t like, okay, and candidly, I’ve never had a job as hard as working on the farm. Okay, so, so hard work was part of my DNA. And then being in capital intensive industries, okay, that quite frankly, margins are very thin, it’s very difficult to earn the cost of capital in those industries. So it required excellent operational performance. And, and quite frankly, you were always trying to gain an advantage of, you know, beyond your competitor, to be able to stay in business. And so those were great training grounds for for me. And then, you know, through a series of management assignments, and then winding up in a corporate office, I went back to business school at the University of Chicago and got an MBA and in 2000, which was one of the greatest experiences in my life, that, that literally I could go to class on the weekend, and practice what I learned on Monday morning being being in the positions that I was in. And so then when that company was sold deltic, timber was looking for a CEO, and I was available and had worked in Arkansas previously. And so it was a natural connection. I went to work there in 2003. And, and retired in October of 2016. So great company, quite frankly, with great assets. And, and I’m very proud of the fact that through the Great Recession, our company was profitable every year without any financial engineering, and without liquidating any valuable resources at a bad time.

Alan
But that’s saying a lot because you’ve been through both some ups and downs in the economy. Oh, my goodness, yes. during your tenure there.

Ray Dillon
And hope we never see a down like we did and because the Great Recession affected housing more than any other segment of the economy. I mean, we went from over 2 million housing starts to less than 300,000. Housing starts so

Alan
Okay, Hurricane Katrina was that during your tenure?

Ray Dillon
Yes, Hurricane Katrina. It was but actually disasters don’t really spur a lot of demand because the disaster occurs. Then there’s the cloud cleanup. Then there’s the insurance reconciliation. And then there’s the decision whether the the previous owner rebuilds or not. So it’s a long process, and it doesn’t have an immediate impact on demand so to speak, as far as wood products is concerned.

Alan
Now your Delta Timber Corporation was, primarily was it the land was over minute Mississippi?

Ray Dillon
We were owned over 500,000 acres primarily in the state of Arkansas. Okay. deltic timber was a spin off from Murphy Oil and the Murphy family in Arkansas, they had accumulated, you know, several 1000 acres of land, and that was the beginning of deltic timber. And then, then as we were spun out from Murphy in 1997, then we acquired more land and added to that land base. But you know, one of the valuable assets in deltic timber is its land base, and with an investment cost basis of less than $600 an acre. And so, so great asset base in a great location, Arkansas grow some of the best timber in the whole world. And so then we were vertically integrated into solid wood product, manufacturing lumber. And then, with every land and timber company, there’s always land that becomes land that gets developed, especially land that’s near metropolitan areas. And Deltek was very fortunate to have several 1000 acres west of Little Rock, which is this state capitol for Arkansas. And so we have a premier development there should all valley which is a 5000 acre development, and also Deltek has many of its oil and gas minerals in the state of Arkansas, and we’ve benefited greatly from the Fayetteville shale development was one of the first natural gas shale developments. And just, you know, the way I would characterize it is is, you know, there’s so many benefits to owning land. There not one would be they’re not making any more of it. But you’ve got, what it can grow, and also the minerals that are beneath it, and you and you never know when they’re going to call it be developed.

Alan
I’m basing here today with Ray Dillon and his former CEO of Delta Timber Corporation Ray I need a break, and we’ll be right back after these messages.

Alan
Welcome back, and Disney here with Ray Dillon. He’s a former CEO of Delta Timber Corporation. And Ray in the first segment, we talked about how at an early age, you have a desire to become that chemical engineer, be a CEO of a company that in the industry, and then and then it actually all happened. So so you know that, you know, it’s interesting in life is we set out with our goals. And then those goals are fulfilled. You know, what, how did you evaluate what the next step is?

Ray Dillon
Well, I had been delta x CEO for over 13 years. And quite frankly, that’s almost four times what the normal average for today’s CEO was lifespan is. And I’m very fortunate to be in a position to help others, quite frankly, experience what I did. And I had worked literally all of my life, but essentially, over 40 years in industrial manufacturing and executive positions. And so, so it’s an opportunity to give back and I was fortunate enough to be able to do that. So working with Deltek board, we plan an exit strategy and and for both myself and the successor, and it has allowed me now to work with two organizations that I’m very close to Methodist Family Health. Essentially, they started as an orphanage in Arkansas many years ago, but it’s really turned into a mental health services so So essentially, we’re providing mental health services for for adults and children that, quite frankly, are dysfunctional in their relationships. And so we’re trying to help them bond or we’re trying to help them get in environments where they can be successful and be the most that they can be or best they can be. Another organization that I work with is an organization called Arkansas Sheriff youth ranch. And these organizations so started by the Sheriffs Association in Arkansas, and when there would be a domestic violence situation and the sheriff’s having to deal with it. You go in and there’s children, what do you do with the children, they didn’t have any place to care for the children, you don’t want to take them to jail. Right? So, so, we have ranches to where we have beds, and foster parents, where these children can go, being a loving environment, and also being a ranch environment, where they’re taught to care for live animals. They’re taught, you know, responsibilities, discipline, as far as work is concerned, and we try to focus them toward school and toward church. And, and, and rescue them from the environment that they were in. And someone like myself to spend time with those that I can and tell them my story, and tell them that they can be just as successful. And these are the, these are the tools you need to do that. And this is the effort that it takes to

Alan
I’m visiting today with Ray Dillon and He is the former CEO of Delta Timber Corporation, right, I need to take a quick break. And we’ll be right back after these messages.

Alan
Welcome back and building here today, three deadly sins, former CEO of Delta Kimber Corp re in the previous segment, we’re talking about how you had a succession plan, you moved out of being the CEO, and moved into a life more of service and philanthropy, primarily working with youth disadvantaged youth. When you’re working, what capacity are you serving? Are you a board member? Are you day to day operations?

Ray Dillon
I generally serve as board members are both the operating unit and and most of these organizations have a foundation where we’re raising money to support Su, sustain the organization for the long term, where hopefully raise enough money for their foundations so that the investment income will will be at least half of their operating expenses. And so it’s a it’s a really two pronged effort to serve when they need you to help them operationally. But primarily, it’s fundraising. And, and oversight is the best way I would characterize it, but you can’t, when you get to know some of these individual stories, you can’t help but reach out to them and try to help them.

Alan
Is there a spiritual aspect to the way you’re working with youth today?

Ray Dillon
Oh, absolutely. I would say that spiritually, you’re led to help others. And, and, you know, as, as we’re taught, you know, to help those that are least among us, and give those that chance that literally won’t have a chance unless someone gives them a hand. And unless my brother in law had come into my life, there’s no telling where I would have been the day. So a mentor, and example. And so many individuals don’t have that example today in the broken homes that we have. And generally those broken homes lead to, to bad outcomes for children, because they’re not quite frankly managed, supervised and developed.

Alan
You know, you’re seeing it, it’s part of life. It’s not always pleasant, the broken homes, troubled youth and what’s what’s the best way for reaching out and helping these kids.

Ray Dillon
I’ve tried to help them. It’s not their situation today that counts. It’s their situation tomorrow. And they can’t change the situation today, except starting in the morning. Okay, and it’s like golf. The only shot that’s important is the next one. Because the because the one you just hit is done. So try to use sports, as an analogy to help them with where they’re at in life. And their lives aren’t over their lives are just beginning. And they can change whatever situation they are in, beginning tomorrow with help.

Alan
Yeah, some of the kids are broken. Starting out as you as you try to pick them up or?

Ray Dillon
Broken is a word I would call it confused. And I’m confused because of the situation they’ve been in. And secondly, they just don’t have an idea of how to change the environment they’ve been in and you don’t have that. You can’t do that without someone showing you a different model or a different method. And then you’ll find those that want to change and you’ll find those that that just can’t accept the responsibility to take that challenge.

Alan
So going back to the ranch, which is under the sheriff, sheriff’s sheriff. Are the kids here for a certain period of time?

Ray Dillon
Generally until we can get them past high school, and encourage them then to go into their, the career that that they desire, whether that’s a technical education or whether it’s a formal education in college, and then we try to help them secure scholarships to be able to pay for that.

Alan
Can you think of some success stories that you’ve been part of as you’ve worked with the kids?

Ray Dillon
Well, it was one particularly actually I was we have a annual dinner function and recognize individuals that have worked in Sheriff youth ranch and I happened to be honored last year at that event, and there was a young man there. Chris was his name that really grew up in a broken dysfunctional home, and wound up and had done very good in school and was graduating, and it was entering the military. And he was going to be a great, quite frankly, representative for our country, wherever he was assigned. He was going in the military, so we could pay for college. Okay. And that young man will will do great.

Alan
It says, Do you would you say that’s the exception to the rule?

Ray Dillon
Certainly, he’s one of the leading examples. Yes. And, you know, there’s, you know, it’s the third, third, third rule, you know, third are gonna do great. Third will do okay. And then a third will, we’ll have to refurbish again, you know, and some just won’t make it.

Alan
What do you say the biggest challenges of the family today, you will have the kids in debt.

Ray Dillon
I think we tend to live in a society today that parents aren’t as focused as they should be on their children. Whereas my mom and dad would sacrifice literally, their last dime for their family, for their children to have more than they did and to be able to do better than they did. And so whether you call it love, or commitment today, that, you know, many parents aren’t as committed to the future of their children. Is is the way I would characterize it sad, because without that strong family environment, and strong accountability, strong expectations inside the home, school teachers can’t fix that equation. Okay, all they can do is deal with it the best they can, but they can’t fix that equation that’s coming from the organic expectation that you will, you will go to school, you you will learn you will perform, or you will be held accountable in today’s world.

Alan
It’s interesting how you had moved from running a large public corporation to serving and would you go back into running companies again, or what what’s your what’s your Outlook right now?

Ray Dillon
I’m a, I grew up on a farm. So I’m a problem solver. I’m an engineer. So I’m a builder and a problem solver. So, so yes, I would consider opportunities that need someone with my skill set. And, you know, I’ve not run out of gas. I’m just refocused at the current time.

Alan
It could be refocused for a reason to make a difference in the lives of those people that you’re serving.

Ray Dillon
I don’t think there’s any doubt about that.

Alan
I’ve been visiting here today with a Ray Dillon and he is a former CEO of Delta Timber Corporation, also a board member of Local Charities and philanthropy and we’re out of time right now. But I’d like to thank you for being on today’s show.

Ray Dillon
Thank you so much, Alan. It’s been a pleasure.

 

 

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This transcript was generated by software and may not accurately reflect exactly what was said.

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