Imagine being able to sit in a room with a retired executive, who not only teaches the fundamentals of his profession, but adds the spice of first-person, real-world experiences. It sounds priceless, but for two sections of the Principles of Management course this semester in the Engler College of Business, students are doing just that. David Hudson, former President of Southwestern Public Service Company (which is a division of Xcel Energy) has come on board as an Adjunct Professor an enhancing our students’ education with stories of how all those textbook principles actually work.
Hudson is teaching both face-to-face and online sections of the course, bringing not only a career spent in the field, but also one with just one company. That’s a rarity in today’s job market, and he was here in Amarillo to witness many things, including the growth of the City, expansion into renewables, and also the original SPS becoming a wholly-owned subsidiary of Xcel.
His career demonstrates how tenacity and loyalty can lead to positions of high ranking authority. He graduated from Texas Tech with a degree in engineering in 1983, and went to work for SPS shortly afterward. He arrived in Amarillo in January 1984, progressing through the ranks. He started out doing rate design work in the regulatory area, and became a Director, a position which he held for nearly 25 years.
“I then moved up to Director of Strategic Planning, and then ultimately President of Southwestern Public Service. I was President for eight and a half years, and I retired two years ago,” he explained.
Hudson is no stranger to WT, having started his MBA here in 1985, and completing it in 1990 while juggling his corporate duties. This is his second semester to teach the Principles of Management course for us. He is also Chair of the COB Advisory Board, an elite crew of local businesspersons and dignitaries. Hudson organizes and runs the meetings, and works diligently so that he and his colleagues on the Board are kept apprised of all the happenings of the COB.
Being an instructor, both online and on campus, has stretched Hudson to take his knowledge from the Board room to the classroom. “I can give examples for many things we are studying in class. Coming from the executive level, though, I really had to go down to the basic level. That was an adjustment for me,” he related. “The students don’t have the practical business experience necessarily. I had to adjust and work at the right level. You have to understand your audience.”
Textbook and corporate realities can differ, although he does not find them at odds. “The textbooks can go really detailed into certain principles, but then I point out that management has to be very flexible. No two days are the same, no two employees are the same.” He then provides students with solid examples from Xcel Energy.
Working for a public utility brings with it unique challenges, because as a utility, you are often taken for granted and assumed to constantly be working behind the scenes to provide an uninterrupted flow. “It’s good until the power goes out, or the bill comes,” he joked. He was quick to note that the electric company is a natural monopoly, one allowed and regulated by the government, because it is so capital intensive. All is good until a crisis hits, like downed lines.
Hudson noted that Amarillo’s power grid is different from the rest of the state, and that fact alone is what insulated–pun intended–us from the massive power outages downstate in February 2021. The power plants on our grid are better designed for wintry extremes, whereas those in Austin and elsewhere could not withstand the severe cold temperatures and thus shut down.
As for industry change, the majority focuses on renewables, something that has been politically supported in recent years with significant tax credits for building wind and solar farms. But, as he noted, wind and solar are not perfect, providing intermittent power generation. Fossil fuels can provide 24/7 power. The result is a mix of natural resources being used to generate the power we need for society.
With his vast knowledge and experience, Hudson is able to put a very different light on management principles than might be found in other classrooms. Those two sections of our Principles class may not realize it now, but they are getting executive-level education. And you can’t put a price on that.