Dan Doyle Jr. wanted his father to be a partner in his new business venture. So naturally, he brought the proposal to the breakfast table. One morning, over egg whites, he thoughtfully laid out his plan, all the while preparing for the possibility of a tough sell. What he wasn’t prepared for though were Dan Doyle Sr.’s terms.
“In order to get him out of retirement, he made me commit a third of our profits to local not-for-profits,” says Doyle, co-founder, president and CEO of Tampa, Fla.-based Dex Imaging Inc. “He didn’t take a paycheck. That’s what he wanted.”
Doyle knew giving away a third of the company’s profits would be a tall order to fill. But he also felt confident that with his and his father’s expertise in the office imaging industry — Doyle Sr. sold a previous business for $3.5 billion — they could build Dex Imaging into a high-growth document imaging dealership.
So he accepted his father’s terms. In fact, he took it a step further, agreeing to distribute another third of top line profits back to the company’s noncommissioned employees.
After all, “It’s not easy to negotiate with your father,” Doyle says.
Since the duo co-founded Dex in 2002, they’ve successfully fulfilled their commitment to giving two-thirds of its profits to employees and local not-for-profits. And in the meantime, they’ve still managed to grow the business from $1 million to $100 million in revenue, spreading its footprint to 24 locations across five states and 560 employees.
Here’s how Doyle keeps Dex Imaging profitable while taking care of its employees and the community.
Make it more than money
Starting out, it was pretty easy for Dex Imaging to meet financial commitments to employees and not-for-profits, Doyle says. For one, the company had just 14 employees. But also, Doyle and his father had been involved in the Tampa community and done business there for some time. The area’s recent struggles motivated them to take on a bigger role with Dex.
“It was during a time when the banks were getting all rolled up and moving to Charlotte County in the Bay Area as well as other areas in Florida,” Doyle says. “So Tampa banks used to support all the not-for-profits, and that kind of diminished as the banks moved their headquarters.”
However, as they opened new offices in other cities, not everyone understood the giving back philosophy and its significance for the organization. Profit-sharing was an easy concept for people to grasp. But Doyle wanted the community involvement to be equally valued by employee and the company culture.
“In the beginning, people kind of questioned us,” Doyle says.
“What our management learned is it’s easy to sit there and say, ‘Yes,’ and find people and not-for-profits that are looking for money. But then we would quiz them on ‘OK, well why did we support this cause?’”
To connect people to the why, Doyle asks each branch of the company to choose which not-for-profit they want to support with the third of their profits. And recognizing that every branch operates somewhat differently, he also leaves how they decide up to them.
Some offices meet weekly to discuss organizations they’re interested in supporting, while others get together monthly or quarterly to talk about their plans and criteria.
“We don’t dictate how we should do it and how they should look at each not-for-profit,” Doyle says. “I just want to know that they’re involved with it, they understand it and that they’re willing to commit themselves to it.”
For Doyle, the main concern before committing the money is whether or not people have done their due diligence. So he likes to ask staff as each branch questions to make sure they’ve dug deeper. For example, “How many dollars end up back in the local community’s hands?” and “What support is the organization most in need of?”
“See if they can give you a little background besides just the title or the name,” Doyle says. “If they said Boys and Girls Club, do they say, ‘Oh, they help boys and girls,’ and kind of waffle on it? Or do they say, ‘They get into this particular cause and they’re finding matches, or we’re supporting the program that helps grandparents that are taking care of grandchildren because the parents are deadbeats?’”
As a leader, asking the tough questions helps employees understand their reasons for getting involved with a not-for-profit. By making them dig deeper, you encourage people to choose missions or causes that speak to them personally and will motivate them to make a bigger impact.
That’s certainly the case at Dex, where many employees give back their time to their chosen organizations beyond the profit contribution, whether it’s serving on boards and committees, getting involved in events, or just reaching into their own pockets to support a cause, Doyle says.
“The only way to really get into it is to understand that particular organization,” he says.
“It wasn’t just that somebody sent them a letter and they agreed to it.”
It’s also a point of pride when employees see your company’s name linked to organizations they feel benefit their local communities.
“People come in with their son’s or daughter’s soccer league, asking can we sponsor that — all the way to their church or their school, to bigger events that are hosted by whatever city,” Doyle says. “And it’s pride. They see our company’s name associated with these things and people are proud of it.”
Give more to get more
Today, Dex has minimal employee turnover. But the company’s people philosophies don’t just help it retain employees. They’re also a way to attract new talent to the company.
“We know we’ve done a good job when people say, ‘Hey, are you hiring?’” Doyle says. “When we’re hiring people, we tell them the story and they’re hooked on it.”
But making big commitments to people can’t just be a story. You also have to follow through.
During the economic recession, many of Doyle’s employees wondered whether the company would stick with its commitment to distribute two-thirds of its profits to employees and their not-for-profit causes.
“In 2009, I was nervous because — especially in Florida — it wasn’t the best financial year for anybody,” Doyle says. “We’d made some commitments to some local not-for-profits. But it would have been great to have the money sitting in our bank as a reserve.”
Despite the challenges, Doyle says the decision to stick with the commitment was a no-brainer.
“I was brought up under the philosophy that the more you give, the more you get,” he says. “So it keeps your pencil sharp, but it motivates you and it pushes you.
“When we stretched ourselves when we gave a third back to employees — and actually we gave them a little more than a third because we didn’t want anybody hurt — it took everybody by surprise. And once they realized that we were sticking to that and making sure that they were receiving their checks, they realized that we were going to stick to the other third going to not-for-profits.
“It was just another one of those moments where they go to raise their head above some other companies that either went by the wayside or turned the other way.”
The key is view community giving as an investment rather than a donation, Doyle says.
“The theory behind it was if we can support our local community and make it stronger, businesses will thrive,” he says. “And if businesses thrive — our business is very dependent upon other businesses thriving — we will thrive.”
The same goes for employees. Investing a third of your profits back into your people obviously has a positive impact on employee morale. But it also gives Dex a competitive advantage. Much of the company’s business is service-related. So when its service technicians have a real vested interest in retaining customers, it creates a better experience for customers.
“Having control of their financial destiny also empowers employees to take on bigger roles in decision-making — something the company already encourages with its hands-off management style.
“So we try to push them to make a decision today,” Doyle says.
“If they think the customer is right, they should give them that credit. And don’t wait and tell the customer, ‘I’ve got to look into it. I’ll call you back.’ That’s the thing people hate the most. People hate being put off.”
To show people he walks the talk, Doyle also subscribes to the management philosophy of leading by example. He knows that employees want to be a part of companies that have leaders who look out for their best interests and the interests of their community.
Sometimes that requires stepping back, for example, when it helps to empower employees. When he sees one of his managers getting overly involved in their people’s decisions, he likes to remind them that micromanaging goes both ways.
“I always ask them if they’d like me to get more hands on,” he says. “If I feel like they might be micromanaging, I’ll say, ‘Do you want me looking at every decision you make every day? And they always say, ‘Well, no.’ And that works doesn’t it?”
Other times it’s about modeling the values he wants to instill in the organization. Doyle serves on numerous not-for-profits boards as well as committees to support causes that inspire him — showing his people that even the CEO can take time to give back.
“I’ve explained to our management that ‘Look, I’m willing to sacrifice my time and my family time to do this,’ and I expect the same from them,” he says. “But they also see what it gets back.”
Admit what you can do
A big concern with giving away a percentage of your company’s profits is what happens if you don’t have the money. What if I need to fund an acquisition, hire new staff or cut costs during a recession? Doyle knows these challenges all too well.
“I don’t think any of us would have predicted what happened at the end of 2008 and 2009,” Doyle says.
“The fear always is that you give away a third of your profits and that’s a third of your profits you could have had as a nest egg, just in case you do end up in a financial crisis.”
But instead of avoiding profit-sharing initiatives, Doyle simply advises businesses considering these kinds of people strategies to be realistic. Don’t overcommit.
“Obviously, the more people see your name out there supporting local causes, the more local causes come to you, which is good and bad,” he says. “You get to learn a lot about local charities that might be small that are underfunded and have a tremendous impact on our community. But it also comes to a point where you have to turn down certain not-for-profits, which is always tough.”
People involved with not-for-profits are typically pretty passionate. And obviously, you don’t want to destroy anybody’s dreams or hopes. But you also need to make sure you don’t promise more than what you can deliver.
“You have to keep in mind that there are things out of your control that might have a financial impact on your organization,” Doyle says. “We took a philosophy that we’re going to push ourselves by donating a third, and even if we give away that third, we can still survive any storm. Obviously, it’s been tested just going through 2009. So just keep that in mind. Don’t overextend yourself.”
One way the company stays accountable to its commitments is by being incredibly transparent about its financials. Three times a year, Doyle convenes all of Dex’s employees at a town-hall meeting, where he goes over the company’s financials.
By letting employees know exactly where the company stands, you show them that everyone is in it together. So the better you do as a company, the bigger impact the company can have for them and their community.
Every now and then Doyle may have a branch overcommit to a not-for-profit. But in these cases, the company has always been able to back up their donation from corporate.
How did Doyle know a third would be a doable percentage for Dex? Well, he didn’t.
“To be honest with you, that was a total crapshoot,” he says. “That was just a deal I cut with my dad.”
So how should you set your goals for community giving? Doyle suggests coming up with a figure that you can stick to as you grow. That way you’ll be able to see your company’s success pay off.
“When we started, we were very small,” Doyle says. “So the impact locally wasn’t big. Now, you look at it, and the last year, we gave away almost $4 million.”
How to reach: Dex Imaging Inc., (800) 886-2329 or www.deximaging.com
- Connect people to the organizations they’re helping.
- View giving back as an investment.
- Don’t overcommit.
The Doyle File
Dan Doyle Jr.
Co-founder, president and CEO
Dex Imaging Inc.
Born: Baltimore, Md., but has lived in Florida since he was five.
Education: Lynn University in Boca Raton, Fla.
What would you do if you weren’t doing your current job?
I would probably work in the marine industry. I love boats.
What is one part of your daily routine that you wouldn’t change?
I meet my father for breakfast every morning. This is where the two of us have time to talk about whatever is on our minds with no disruptions.
What do you to regroup on a tough day?
I walk the seawall behind my house with my 6-year-old son. He loves the outdoors and all living creatures and loves to talk about them.
What do you do for fun?
I hang out with my family. My wife and I both love having our kids around. We go out for dinner every year on our anniversary with all of them. It’s just fun to spend time with them and hear what they have to say.
Where would you like to go that you’ve never been?
I would love to go to the Galapagos Islands.