Steve Davidson wanted to do a better job of listening to his franchisees at Robeks Corp. It was the biggest complaint he heard upon taking over as president and CEO of the smoothie franchise chain, which has 116 stores around the world and nearly 1,000 corporate and franchise employees.
Franchisees were frustrated that the previous leadership regime didn’t take advantage of the depth of knowledge they gain each day from interacting with customers across the country.
“You have a lot of very bright, talented and creative people in your franchisees with lots of great ideas,” Davidson says. “They like to implement those ideas, and they are businesspeople. The challenge is to channel those ideas in the right direction to make them productive and utilize them as best as we possibly can.”
Davidson wanted to give franchisees an outlet to share their bursts of inspiration. But any system he put in place needed structure so that the great ideas could be researched and implemented and the suggestions that wouldn’t work could be gently turned down.
“There are so many ideas that, in order to be cohesive, we can’t implement them all,” Davidson says. “There are disappointments for some franchisees if they have a great idea that they think will work in their particular store in a particular part of the country; it just may not be something that works universally.”
If he chose to do nothing, turning a deaf ear to the ideas that were out there, Davidson risked damaging the Robeks brand.
“The franchisees will implement these things on their own and then you find different stores all going in different directions, which is not good for a chain,” Davidson says.
Davidson wanted to make it work and wanted to make franchisees feel like the valued part of the team that he believed them to be. He felt the best way to do that was to go out and share his thoughts face to face.
Be a good listener
Davidson has seen companies hold conventions for its franchisees where everyone in the organization converges on one location for a few days to talk about how great their company is.
“There is a big dog and pony show in Las Vegas or Chicago or wherever,” Davidson says. “I’ve done a number of those in my life with other companies, and I find them to be much less intimate. There are opportunities for about three days for everybody to get excited and then everybody goes back into their old routines again.”
Davidson thought a better approach would be to hit the road with his executive team and make personalized, less formal visits to various Robeks locations across the country.
“They were much smaller, much more intimate meetings, and they were in much smaller rooms so we had more one-on-one contact with people,” Davidson says. “It was much less dog and pony show and much more direct communication.”
When Davidson and his team of four to five people would visit a location, he wanted to make it clear that it wasn’t a site review. He wasn’t going around with a white glove trying to nail people for petty mistakes.
“It was about the franchisees,” Davidson says. “It was about us being out there. We did some presentations to talk about what the company was doing, but we spent a lot of time just listening. Our Q-and-A sessions were quite long.”
Davidson wanted to set the tone that even though these franchisees weren’t technically his employees, they were part of the Robeks team. And just as he was making himself available to the leaders of each location, he wanted to impress upon those leaders how important it was that they do the same with the people who reported to them.
“I wasn’t the only one up there,” Davidson says. “I got members of the various departments up there as well. They learned from the very beginning that not only was I open to direct feedback and sometimes attack, particularly in the early days, but I also expected every member of the team, the department heads, to make themselves available in the same context.”
A big part of Davidson’s approach was the priority he gave to listening. During his first 90 days on the job, listening was pretty much all he did when he came into work or went on his road trips across the United States.
“I sincerely took their input, took copious notes and made it clear that I wasn’t going to make any decisions and wasn’t in a hurry to make any changes, if I was going to make any at all, until I had an opportunity to meet as many stakeholders as I could,” Davidson says.
When you step into a situation where employees are calling for change, the easy thing to do is often to respond with change. But if you implement change without a real understanding of how things work in the organization, it could easily come back to haunt you.
“I stuck to my guns and said, ‘OK, I recognize that there are urgent matters, but I want to make sure I fully understand the issues and how any decision I might make may impact the whole organization,’” Davidson says.
Build the respect
As Davidson seeks to build relationships with his franchisees and learn more about the organization, he also seeks to build trust. He takes the approach that his people want to accomplish the same thing he does, which is to position Robeks to be successful.
“My approach to empowerment and to get the best out of people is to trust them immediately,” he says. “If we communicate clearly in terms of what the strategy and direction is, after we’ve spent as much time as we can listening and making sure we’re moving in the right direction, we believe we’re going to be followed.”
He does offer a caveat, however, to this philosophy.
“You’re not going to give someone so much rope that they can take risks that would bet the farm,” Davidson says. “You give everyone a tremendous amount of latitude, but you check in with them. I guess it’s called delegation.”
He wanted to continue the dialogue that had been established through his road trip meetings, so Davidson began forming committees to give people a clear voice in what happened in the company. There was a tactical marketing committee, a strategic marketing committee, a supply chain committee and an IT committee, just to name a few.
The committees were populated with people who Davidson felt could serve not only their own best interests but those of their direct reports as well.
“These various committees deal with key areas in our business where the key indicators tend to lie,” he says. “We have a supply chain committee, and we schedule that meeting once a month. If we have issues that are important to talk about, we set the agenda and we meet. If there is nothing going on, we cancel the meeting because we don’t want to have meetings just for the sake of having them.”
If you cancel meetings when there is no business to be conducted, you don’t send a bad message to your team. You actually send a positive message that you’re cognizant of their time and doing what you can to maximize it.
“That assures that meeting is a meaningful meeting and will be held if we clearly have issues,” Davidson says.
The IT committee is a prime example. When Robeks was implementing a new point-of-sale system, there were a number of issues that needed to be resolved.
“Now that we have resolved most of those and things are fairly routine, we disbanded or at least suspended that committee,” Davidson says. “We could always reinvigorate it at any point in time if some issues started to crop up again.”
The message he has focused on conveying is that he is there to help his franchisees make the business better, whether it’s meeting one-on-one or forming a committee to solve a problem.
“It opens up the communication, and you find fewer people are intimidated by, ‘Oh my gosh, this guy is the CEO,’” Davidson says. “I still get that to some extent from franchisees who will call me and they’ll say, ‘Hey, I know you’re busy. I don’t want to take up too much of your time.’ I’m always very careful that I let them know right up front that their issues are my issues. Don’t ever apologize for calling me about anything.”
As Davidson looks at Robeks today, he sees a company that is much more collaborative and empowering. Contests have been held for new product ideas and have generated a lot of enthusiasm, giving customers curiosity about what they’ll find on the menu the next time they come to the store.
“Once we’ve listened and got that input, the key is getting back to the franchisees and telling them where their ideas are and what we’re doing with them,” Davidson says. “If they don’t get answers back, they stop giving us ideas. We want the ideas because they are the lifeblood of our business.” ?
How to reach: Robeks Corp., (310) 727-0500 or www.robeks.com
The Davidson File
Born: Sun Prairie, Wis., a town just northeast of Madison.
Education: Bachelor of arts in social psychology; MBA, University of Wisconsin
What was your very first job?
I was 14, and I went to work in Lake Mills for the summer. I worked on a feeder pig farm.
What did you learn from that experience?
When you’re 14 living in a mobile home when you’d rather be visiting your girlfriend, it’s a very lonely place to be. But aside from that, even at 14, they trusted me a great deal and gave me a great deal of responsibility. I was impressed by that. It had a strong impact in terms of my views on trust and where that fits in the work world.
Who has been the most influential person in your life?
Francis Sheehan. He was a chemistry teacher at the senior high school in Sun Prairie. He was also the coach, but he was responsible for managing the city public swimming pool. For whatever reason, he came up in my life many times. When I needed a job, he would find me a job. Whether it was the only bicycle cop Sun Prairie ever had for the kids who rode bikes in the summer, to being a manager and lifeguard at the swimming pool, to taking care of athletic facilities at the senior high school. He just kept popping up in my life at various places. It was almost like he was a guardian angel. He seemed to be there whenever I, as a kid, needed some male adult direction and supervision and guidance.
Don’t act before you have the facts.
Give your people a chance to prove themselves.
Don’t waste anyone’s time.
In a way, John Myers is not unlike the guy who paints the foul lines at the local baseball field. He defines boundaries.
The president and CEO of Rentokil North America, the regional wing of Rentokil Initial — a U.K.-based facility management company that provides, among other things, pest control services — has been tasked with integrating a company that has changed dramatically over the past decade. At one point, Rentokil’s North American footprint consisted of about a dozen operations sprinkled throughout Ontario, the Mid-Atlantic States and Florida.
Then, over the span of two years, Rentokil acquired a trio of pest control companies. With the acquisitions of Ehrlich, Presto-X and Watch All between 2006 and 2008, Rentokil’s growth exploded. The company expanded to nearly 80 locations in 35 states.
But with those acquisitions came differing cultures, policies and processes. Myers had to get everyone aimed in the same direction.
“Most people will tell you that acquisition plans and models fail because the integration wasn’t done as defined,” Myers says. “But it can be really hard to do. You have disparate businesses with long histories and a strong belief in their culture, and there is either a reluctance to integrate or companies integrate too quickly and kind of throw the baby out with the bathwater.”
Myers had to figure out a way to balance the best practices of the acquired companies with the need to create a uniform set of objectives and values under the Rentokil umbrella.
“When I first started here, I was new to the business and rather agnostic toward each of the brands,” says Myers, who took over the company at the end of 2008. “What I saw was that everyone agreed that we needed to change, but when I started making changes, they all said, ‘No, what we meant was, you need to change those guys over there.’ Everybody wants to change; they just don’t want it in their area, because change is hard.”
Myers solved the challenge by starting at the top, with his own leadership team, and working his way down.
Identify the themes
Myers needed to simplify things. With bits and pieces of varying cultures, processes and objectives fluttering around the company like pieces of confetti, he had to vacuum everything up, sort it out, keep what was relevant and discard the rest.
It’s a process that requires a set of ground rules. And those ground rules are formulated on the management level.
“It’s tricky, because these have been successful businesses in their own right, and they’re used to doing things their own way,” Myers says. “The natural tendency is to say that you’ve been successful using the techniques you already had in place, so why would you want to change?”
To combat that type of resistance, Myers gathered his leadership team and tasked them with helping him set the strategic vision for the company — a long-range vision to serve as a set of end goals for every business unit. Any goal or strategy that existed among the acquired companies needed to help Rentokil progress toward its strategic vision. If it didn’t, Myers’ team would discard it.
The strategic vision sessions also helped identify areas of the acquired companies that aligned along common themes, giving Rentokil an area of strength to leverage.
“The good news is, we really looked at our businesses and realized they had some very common elements in their cultures that we could rally behind,” Myers says. “For example, we believe in providing the highest level of customer service in the marketplace, and not everybody believes that should be a part of their strategy.
“As an example, you can compare a small hardware store to Home Depot or Lowe’s. The small hardware store will give you personalized service. Home Depot or Lowe’s — while they’re both very successful companies — might provide a different level of service while trying to compete more on product selection or price. We are more like the smaller hardware store in that we’ve made customer service part of the culture of the business.”
Customer service became one of the five strategic thrusts for Rentokil, as outlined in the plan formed by Myers’ team. Along with customer service, Rentokil also formed objectives around organizational capabilities, operational excellence, operating at the lowest cost possible while still maintaining high service standards and delivering profitable growth.
The development of the five strategic thrusts was critical for Rentokil and any other company trying to define its future strategy and goals. Once the pillars of the strategy are defined, you have to allow the company to be guided by those principles over time.
“The reason these themes are important is, as we work on tactics, if we can’t easily slot something we’re working on under one of these, we shouldn’t be working on it,” Myers says. “That is why it’s important to maintain those thrusts.
“In a change management environment, you can’t change the themes every day. You can’t have a flavor of the month, because people will start to get confused and question whether your strategy and objectives are real. We just finished the third year in which we’ve operated under the same five strategic thrusts.”
Roll it out
With the playing field outlined by the strategic pillars you have constructed, your next step is to tell the entire organization how it will accomplish the goals related to those pillars.
Myers began by rolling the plan out to everyone on the management level of the organization, followed by a rollout to the organization at large.
“First of all, we have an annual management meeting where we present our key tactics under each of the strategic thrusts,” Myers says. “I present the thrusts, then I present the initiatives that we are going to implement in the coming year to support the strategic thrusts. We stand in front of our entire management team and tell them what we are going to do.
“The second thing we do is we then have regional meetings in which every colleague in the company attends, and we make the same presentation. Every technician, every sales representative, every office manager, from front-line colleagues all the way to the top, are all hearing the same message, and they’re hearing it from the executive leadership team.
“Usually, I have a vice president on my team go out and present this material to every colleague, face-to-face.”
After the initial rollout, you have to perform frequent maintenance in the form of direct communication from the top. Myers reinforces the strategic thrusts and tactical initiatives through monthly CEO messages, delivered to the entire Rentokil organization throughout North America.
“I’d say nine of the 12 messages I have each year relate to a strategic thrust and one or more of the initiatives associated with it,” he says. “So I will say simple things like, ‘As you know, we believe in delivering outstanding customer service. So today I’d like to talk to you about a new initiative that was launched just last week. We talked about it at our recent company meeting, but I want to give you an update.’
“It’s the old idea that you have to tell them and tell them again, because people are busy in the day-to-day world. You need to reinforce the idea that there really is a plan and you are following it.”
The message needs to come directly from you as the head of the organization. The further down the ladder you delegate your reinforcement communication, the less impact it will have. That’s not to say communication involving a department head or direct supervisor is irrelevant, but on matters that involve the direction of the whole company, your words carry the most weight.
“There are two main reasons why this kind of communication has to come from the top,” Myers says. “First off, I go back to the fact that everyone is busy and working hard, so getting a reminder of what the top boss thinks is important helps to refocus what you work on. It’s like you always hear about finding out what’s important to your boss and working on that.
“The second thing is, it’s reassuring to the organization to be reminded that there is a plan, and we’re sticking with it. You’re not trying to figure out what you’ll do each month.”
Myers’ unification plan has taken root and helped propel Rentokil’s growth. The company generated $350 million in North American revenue during 2011 and continues to maintain a strong market share in its space.
“Ultimately, people are motivated to buy in to a plan when they know three things: What are the expectations, how are we doing against those expectations and what are we going to do to get better in the areas where we’re not delivering at the level we want?” he says. “When there is clarity around the plan, there is greater opportunity to implement the plan in a timely and effective manner. By reinforcing the message from the top level, it does those things better than just hoping it happens.” ?
How to reach: Rentokil North America,
(610) 372-9700 or www.rentokil.com
The Myers file
Education: B.S. in marketing, University of Vermont; MBA, Mercer University, Atlanta campus.
What is the best business lesson you’ve learned?
I’ll give you two. The first one is to share the risk as well as the reward. I’ll never forget a job I once took in sales management. I was new to the company where I was working, and I decided I would negotiate a deal with a customer myself. It didn’t go well. My dad told me that I wanted to show everybody that I could do it myself, but it’s not about that. It’s about the team delivering the desired result. That should have been the goal, not me trying to ensure that I’d deliver the result myself. I should have brought other people onto the project.
The second thing is knowing that everyone wants to do a good job. Your role is to ensure that everyone knows the expectations, knows how they are performing against those expectations and knows how you’ll work together to improve the things that aren’t working out.
What traits or skills are essential for a business leader?
I get asked that all the time by college graduates. The first thing I always tell them is to lead with humility. My view is that our frontline colleagues and customers know what is needed in the marketplace, and it takes humility from the leadership team to remind yourself of that fact. You have to have the humility to ask for insight and advice from the people closest to the customers.
What is your definition of success?
Success is utilizing really strong methods to deliver strong results. We use a phrase here that I like in our leadership training: Success versus excellence. If the concept of your methods is robust, the predictability of your success is better.
It’s like in golf. You can hit a good shot once in a while, but you can’t repeat it if your swing isn’t good. You can sometimes find success with bad methods, or you can consistently find success with good methods.
Peter Kellett is an attorney. He’s also the chairman and CEO of his firm, Dykema Gossett PLLC. But Kellett will be the first to tell you that he is more than just an attorney leading attorneys.
Behind Dykema’s approximately 400 lawyers in 11 nationwide offices is a support staff that interacts with the firm’s clients on a daily basis, handling administrative tasks, billing and accounting, and other tasks essential to prompt and comprehensive client service.
If those employees aren’t engaged in providing an excellent client experience, it can damage the relationship before an attorney has a chance to sit down with a client.
Since becoming CEO a year ago, Kellett has made it a point to recognize the important role each person plays in the client experience, and he has focused his efforts, along with the efforts of his leadership team, on uniting every person, in every position in the firm, around a common goal: serving clients with the highest possible standards.
“It is a work in progress, but I am deeply committed to improving all of our levels of client service,” Kellett says. “That is not to suggest that they have been deficient, but in this environment today, it is really important to distinguish any service — whether it be a legal service or any other type of service — in how you deliver service to your clients and customers.”
Driving that level of customer service throughout Dykema — which generated $174 million in revenue during 2011 — has required Kellett and his team to remain vigilant in listening to customers and maintaining a dialogue with employees, as he continually gauges the needs of clients and works with his staff to figure out the best way to meet those needs.
To start promoting a comprehensive client service philosophy, Kellett had to broaden the firm’s concept of what it means to serve clients.
“I believe, and our management team believes, that the notion that the only service a law firm provides to clients comes from the lawyers is mistaken,” Kellett says. “Survey data would show you the average client has more interpersonal contact collectively with the nonlawyer staff than with the actual lawyer who might be representing them in a given matter. There is so much support that goes into the client relationship. It could be making sure an invoice for services is properly formatted or making sure a communication is properly delivered. If a client wants to see something by email, we have to make sure it’s delivered by email and not snail mail.”
They are matters that might not be directly related to the actual legal work done for a client, but if the firm fails to handle the support tasks in an efficient and effective manner, it will eventually have a negative impact on business.
“The services delivered by people who aren’t lawyers comprise much of what the client sees, and quite frankly, you can fall down in that regard if you aren’t careful,” Kellett says. “It’s so important to the client’s overall feeling regarding how they’re being served by the firm.”
With that in mind, Kellett went directly to Dykema’s clients, soliciting feedback on the service experience that the firm was delivering. Representatives from Dykema interviewed many different clients, asking questions related to a number of different client service areas. The firm representatives brought the feedback gleaned from the interviews back to the leadership team, which then used the feedback as a component of a firmwide client-service training initiative.
“We report the information back to the membership of the firm in a way that is understandable and teaches different lessons about what we do really well, as well as the areas in which we can look to improve,” Kellett says.
“We have also brought in specialists to do client service training workshops — in fact, we recently had an officewide session for all our nonattorney staff, which was moderated by an expert in client service delivery. The goal of the session was to try to raise consciousness on everything related to client service.”
The feedback and the client service training workshops produced a set of client service standards that all staff members at Dykema are expected to know and promote. Kellett and his team fashioned the standards into a set of basic statements that clearly outline, in a straightforward fashion, what the firm will deliver to clients.
“It’s nothing that is high-level, but it is straightforward and understandable, and it transcends different practices and offices,” he says.
Kellett’s initial information-gathering process finished with a follow-up component. Late in 2011, firm representatives conducted a series of follow-up interviews designed to gauge the process that the firm had made in improving its approach to client service.
“We went back to the first group of clients we interviewed and talked to them again,” he says. “We asked them to honestly grade us. How did we do in responding to some of the things you wanted to see us implement on your behalf?
“Then we go back to the office and hold people accountable to that feedback. If someone here at the office is in charge of managing a client relationship, you are expecting them to lead on this issue of improving, responding to and being attentive to the things your client wants to see you deliver.”
Motivate your employees
Providing excellent client and customer service is important not only to the people you serve outside the organization but also to the people you employ internally.
A focused company is a healthy company with employees centered on a set of common goals. That, as much as improving the client service culture, was a motivating factor for Kellett.
“I would tell anyone in leadership that it is important to develop a comprehensive customer service plan, not just for the value proposition but also for the health of the organization,” Kellett says. “You’re trying to do more than just motivate. You’re trying to excite.
“If you are in a service business, you want to get your people excited and feeling very positively that they know what is expected of them. Because if folks in a service organization don’t know what is expected of them, they won’t always do what is optimal for service delivery.”
By training your people to deliver the best possible customer service experience, you’re investing in them. The end goal is to please your customers, but the entire process of customer service training is focused on allowing your employees to perform their jobs at a higher level.
“It is important that you are sending a loud message to your entire organization that you see value in your people,” Kellett says. “You are investing in them for a reason, and that is a powerful message to send. I found our staff has been very receptive and appreciative of the fact that management thinks they are important enough for management to invest time and resources in them.”
It’s especially important if you run an organization in which one group of employees often basks in the spotlight, while others toil in obscurity. With that type of setup, it can become extremely easy for resentment to build if those behind the scenes feel underappreciated.
Kellett prevented that at Dykema by ensuring that he crafted communication specifically aimed at the nonlawyer staff in the firm.
“When I’m communicating with the nonlawyer staff, it is certainly tailored more toward the likely activities they will be engaged in and the community they’re likely to be serving,” he says. “In fact, some of our internal staff’s client base is composed of their own co-workers.
“When it comes to our IT staff at the firm, a big part of who they serve is made up of users within the firm. That’s a really big part of the message, telling them that no matter what they do, they’re involved in client relations.
“If your service is internally focused, you’re still helping those who are externally focused to provide excellent service to your external clients. You are as important as anyone in that broad chain of client service delivery.”
Ultimately, the behavior you exhibit toward your employees is the behavior they will exhibit when dealing with clients and customers. If you communicate frequently and thoroughly with your people, they will do the same with your customers. And that leads to a stronger, more positive relationship between your company and the people who purchase your products and services.
“You can’t communicate enough with your people, and they can’t communicate enough with your clients,” Kellett says. “They want to be kept updated more often, rather than less often. You can never assume that they know what is going on just because they’re sophisticated or have been through the process before.
“Tell them more, when in doubt. Or you can always ask them to tell you when to stop talking and start listening. That is something we have learned collectively as a firm: Your people want to be kept apprised of what’s going on, as do your clients. And they want to know sooner rather than later.” ?
How to reach: Dykema Gossett PLLC,
(313) 568-6800 or www.dykema.com
The Kellett file
Education: B.A. in history, University of Michigan; Juris Doctor, Wayne State University Law School
What is the best business lesson you’ve learned?
I’ll give you two: One is to not try to do everything, or you’ll risk getting nothing done. You have to try to set priorities and not try to do everything at once. The other is something that I was once told: It’s amazing how much an organization can accomplish when no one cares who gets the credit. We’re trying to build teams that are focused on client service, with a shared-credit approach to that, and it has been really beneficial for us. Credit will fall where credit is due, but let’s not worry about that. If you have that type of environment, you won’t have people insecure or worried about getting their due.
What traits or skills are essential for a business leader?
First and foremost, it’s honesty. You also need to be a good listener. That doesn’t mean you have to listen to everyone ad nauseum, but you do have to be a good and fair listener. And ultimately, you have to be decisive. Admit your mistakes, learn from them and move on. If you can package all of that, you’re well on your way to being successful.
What is your definition of success?
Achieving a reasonable performance from a financial and business-goals standpoint, which preserves the culture and integrity of the organization. It requires a balancing act. Businesses are in business to do well right now, but you need to preserve the long-term integrity as well. If you’re chasing the top dollar, it can’t come at the expense of the culture.
PricewaterhouseCoopers was biding its time. Like many other professional service firms, the recessionary years of 2008 and 2009 kept the company’s leaders conservative in their people strategies, but they were also waiting and ready for growth to resume. Because when it did, they were ready for it.
“During the recession, we were really focused on retaining the people that we had across the firm, expecting that when things started to turn around and client demand increased, that No. 1, we’d want to make sure that we kept as many folks as we could by avoiding reduction in force during the recession — a big investment,” says Jim Henry, who was PwC’s U.S. client and industry leader before becoming the managing partner of the San Francisco market in 2010. “And then No. 2, coming out of it, we knew that we’d need to significantly build up our resources to match client demand.”
As the new managing partner, Henry walked straight into the hiring blitz. In just 24 months, he helped PwC San Francisco grow its head count from 1,000 to 1,400 people, all while retaining a top team in one of the most competitive talent markets in the country — the Bay Area.
Here’s how Henry builds a team of talent that can serve the needs of PwC’s clients.
Expand your search
At PwC, building a top-performing team starts with the hiring process.
Historically, the firm has been a big recruiter of entry-level employees, using local campus hiring as a primary source of new talent. However, as other Bay Area businesses have rebounded, it’s been more of a struggle to attract enough local students to build out the firm’s advisory, assurance and tax business lines.
“To meet the demand, we’ve really expanded our recruiting network to bring in people from schools outside of the Bay Area,” Henry says.
Today, about half of the firm’s entry-level hires come from outside the Bay Area, a significant change from the past. Companywide, PwC has also opened its campus recruiting programs, which used to target only local accounting graduates, to students from a variety of backgrounds — information systems majors, engineering majors and MBAs.
The firm has also put a greater emphasis on acquiring experienced employees from other companies to help broaden its capabilities in strategic and high-growth areas. And again, it’s achieved better results by taking the search national.
“It’s all about us having the right capabilities to serve clients in the areas of their growth strategy, their operation effectiveness, and making sure that they’ve got efficient and effective risk and compliance processes,” Henry says.
“We prefer to find local people, but given that the Bay Area is a really attractive place right now, how vibrant the economy is and that it’s a very desirable place to live, it’s becoming a bit easier to attract people here from out of the area. So we’re really approaching it as a national search in most of our experienced hiring.”
Today, the company utilizes a combination of internal recruiters and outside search firms to identify experienced hires who would be a good fit with the firm. Still, whether these efforts are local or national, the best recruiting leads tend to come from the firm’s existing employees.
“We’ve asked them through our internal communications, and then offer recruiting referral bonuses to help them identify talent that they think would be a good fit in the firm,” Henry says. “As a result, we’ve had more than 40 percent of our experienced hires come through employee referrals. That’s absolutely the best source.”
Offer helping hands
Just because someone makes it through the screening process doesn’t mean that he or she will have immediate success at your company.
As PwC has hired more people in entry-level positions and management roles, Henry has found that many people need help and support as they integrate into their new job and corporate culture.
“It’s critical that both the new people who join the firm and our existing employees have very clear and frequent feedback about how they’re doing and get the support they need to make sure that they’re successful,” Henry says.
One way the company helps employees adapt to the new environment is by plugging new hires into teams where they can quickly understand what’s expected of them. Working in teams allows people to seek guidance and feedback from more experienced peers, who can also serve as coaches and mentors.
“That’s really key to success,” Henry says. “As people are working in teams they better understand how their background and experience fit together with the rest of our people when they are out serving the needs of our clients.”
It also provides opportunities for different teams to learn about each other’s activities. For example, as it began adding more new people from other companies, the San Francisco office began holding a monthly “meet and greet” for its experienced hires.
“They bring their own lunch and meet at our office in a conference room,” Henry says. “It’s an open door thing for whoever is interested and available just to talk about their backgrounds and share some of what we’re doing in PwC.”
New teams are also encouraged to get to know other teams and find ways to complement their efforts if possible. The company’s new national sustainability team recently visited San Francisco to share its goals and learn how it can incorporate them throughout the firm.
“They’re getting their goals and priorities aligned and then trying to understand how they fit into the rest of the firm, someone who might be doing supply chain consulting or tax advice on moving operations,” Henry says. “Just about everything else that we do in serving our clients could have some element of sustainability. And that can be brought into making sure we’re creating the most value for our clients.”
Give people success models
Of course, offering competitive compensation is an easy way for employers to show people value when they bring them on board. However, long-term retention requires that companies show people an ongoing commitment to their financial and professional sucess.
As more people integrate into the company’s culture, Henry and his partners have looked for new ways to connect them to the goals of the business. One way is by helping diverse talent excel in the organization by having each partner sponsor three diverse individuals in the firm who represent strong leadership abilities.
“The sponsorship piece of it originated in our diversity programs, looking at the goal of trying to have the same diverse mix of talent at our leadership levels as we do at the entry levels,” Henry says. “What we find is with all the best work and coaching and development, we still have attrition for different groups at different career points.”
The sponsorship relationship goes beyond coaching. Each partner serves as a personal advocate for their sponsees, whether it’s by creating opportunities for advancement or nurturing their professional growth.
“That’s reflective of the work that we’re doing to make sure that we’re creating opportunities for people who really demonstrate the leadership abilities,” Henry says.
In addition to prompting positive feedback from clients, PwC’s diversity efforts have earned it the No. 1 spot on Inc.’s Top 50 Companies for Diversity in 2012.
Establishing a “milestone rewards” program is another innovative step the firm has taken to show employees their growth potential. The rewards program gives employees special incentives as they rise to different levels within the firm. So a promotion to manager is now accompanied by a large cash payment or an employee who reaches the level of director is rewarded with a brief sabbatical.
“So when you’re promoted, there’s actually something that’s unique to that promotion on top of the normal compensation and reward system,” Henry says. “It’s those kinds of things that change the conversation from comparing dollars to dollars with one job to another to really understanding what people need and value at different points in their career.”
Build a rep
One of the chief reasons that PwC is able to entice experienced hires and new grads to its ranks is its reputation as an enjoyable and attractive workplace. In 2012, the company was named on Fortune’s top 100 best places to work for the eighth consecutive year.
“The really important aspect of people retention to me, aside from all the programs and different focus areas, it’s got to be an environment that people feel connected to, that allows room for innovation and that they can have fun,” Henry says.
Creating an enjoyable workplace requires leaders to be responsive to their people’s needs. Companies that consider options such as flexibility and work-life balance in addition to compensation will have an easier time keeping employees happy long-term.
“Flexibility seems to be the No. 1 issue that comes up as we talk to people in our surveys and direct feedback about areas that they think we can support and help them in their personal and professional career development,” Henry says.
Ask people what they need to be successful in their jobs, and then look for ways to support that, Henry says. PwC has each team work closely with its members to plan for their desired flexibility as they organize client service work. The firm has also adapted certain company policies, such as the flexible summer Fridays program, to account for the way employees want to work.
“Instead of telling people what day we think would be good for them to take off, we’ve now changed it to just say summer ‘flex days,’” Henry says. “Each week everyone should be working with their team, determining what flexibility they would like to have in their work schedule and building that into their team plans. For one person, it might be that they need a Tuesday afternoon off to do something, and for others, it may be a Friday. But that’s got to be something that’s very individual-based.”
Henry knows that another key ingredient in an attractive workplace is an atmosphere where people can let their hair down from time to time. So when it comes to having fun, he is happy to lead by example.
“We’ve done a lot of things here to just put a little humor into work and allow time for people to get together and hear the strategy but also have some celebration and some fun in the process,” he says.
For the firm’s Promotion Day celebration in June, Henry coordinated a celebration at San Francisco’s Port Mason entire office, emceed by an employee who works as a part-time comedian. And when the Giants made it to the World Series several years back, he showed his team that he was more than game for a practical joke.
“Someone got the crazy idea of the Giants wearing beards,” Henry says. “Therefore, I had to have a beard. Even though I didn’t grow one, because I can’t grow a good one, any time I sent out a memo with my picture, my assistant would Photoshop in a beard on it. And then I started wearing fake beards to meetings with our people. We had some real laughs with that.”
In just two years, Henry’s office has added more than 400 new employees, a clear sign that these people strategies are working. But, of course, the number that says the most about the firm’s success is its employee turnover rate.
“Studies generally show that people don’t leave companies, they leave their bosses if they go somewhere else,” Henry says.
“We are at record low numbers right now in San Francisco as well as in PwC for voluntary turnover. That’s maybe the best indication considering, in most cases, people vote with their feet.” ?
How to reach: PricewaterhouseCoopers, (415) 498-5000 or www.pwc.com
The Henry File
PwC San Francisco
Born: Pontiac, Mich., and grew up in San Diego
Education: Bachelor’s degree in accounting from San Diego State University
What would you do if you weren’t doing your current job?
Working in an emerging technology company.
What is one part of your daily routine that you wouldn’t change?
Working out in the morning — after my first cup of coffee!
What would your friends be surprised to find out about you?
I enjoy surfing.
What do you do for fun?
My wife and I entertain a lot at our house, and she is teaching me how to cook.
What are best pieces of advice you’ve gotten in your career?
First, as a leader you’ve got to have a clear vision of what’s important. And by that I’d start with what really are your values. What are you really trying to accomplish from a broader mission perspective? Then agree with your team on a few things that for the next year are most important that you are trying to accomplish. Consistently reinforce that in communication and monitor progress. The other thing I’d say is always be thinking about creating opportunities for people who may be your successor down the road.
Larry Feldman was living a double life. As assistant minority counsel of the House Banking Committee, his day job was dealing with Capitol Hill’s most pressing issues: the Chrysler bailout, alternative fuel sources and cradle-to-grave health insurance. But come lunchtime, he headed across the street to oversee an operation pretty much as critical to Washington’s well-being. Feldman, you see, managed the local Subway.
“I would do congressional hearings in the morning, run across the street, take off my jacket, put on my apron and stand behind the counter to make sure the operation was going well,” says Feldman, CEO of Subway of South Florida and Subway Development Corp. in Washington, D.C. “These lobbyists would look at my face and say, ‘You look very familiar.’ And then after lunch, I would run back, take off my jacket and do hearings.”
Since opening up his first Subway location 35 years ago, Feldman has grown his territory of restaurants to approximately 1,500 locations and 1,600 employees throughout Washington, D.C., Maryland, Virginia, Delaware and, most recently, South Florida. But his success hasn’t just earned him respect in the franchise world — it was Feldman who helped pioneer Subway’s development agent growth model in 1979 — it has also earned him a nickname: Mr. Subway.
By eliminating company-owned stores and empowering entrepreneurs to grow territories through franchised locations, Subway has become the largest fast-food chain in the world, surpassing the iconic McDonald’s with more than 37,000 locations worldwide. Here’s why the growth model is still viable and successful decades later.
As a business with locations worldwide, maintaining consistency across its many stores is critical to Subway’s reputation. So it’s important for owners like Feldman to have the proper controls in place to keep operations consistent and maintain quality throughout their territories.
One way the company does this by maintaining high standards of compliance for its store owners.
“We’re very, very strict in our requirements for compliance,” Feldman says. “Part of the support is 80 percent of my staff is made up of operations analysts. They go into the field and are in their stores at least once a month. They do full evaluations that start with cleanliness in the front window and go right on through the store, including marketing recommendations, attitude of employees — all of these things.”
Driving consistency internally is also why Subway doesn’t sell to professional chefs — who are tempted to try to “improve” on the business model.
“Chefs always are looking to create a better way,” Feldman says. “And while we’re always looking at our corporate offices to do that, and have a tremendous amount of success from franchisees who give us recommendations, it basically is that when you go into a Subway regardless of where it is around the world, that you know that you’re getting a consistent product. The look is consistent.”
For Subway, the food part of it and the product part of it can be learned and trained. The real work of the owners is growing the business in the community, from “the outside in,” whether it’s sponsoring local Little League games or working with not-for-profits.
“It’s understanding how to take those tools and get out there and market your business,” Feldman says. “We look more for people who will participate in marketing and bringing customers in, because we can teach you everything that needs to be done in the store itself.”
When the goal is consistency, you want store owners who are entrepreneurs, not industry professionals.
“They would come back after two weeks of training thinking they knew how to grow their business their way,” Feldman says. “But this doesn’t work as a large-scale concept. At the franchisee level — success is about following the model.”
Keep it simple
Subway’s simple operation — with no fryers, no grease traps, and a simple menu — makes it easy to run, and gives the company the control to easily manage food and labor costs. But how do you promote new ideas when you’re worried about overcomplicating your brand? At Subway, it’s by practicing “controlled innovation.” At the national level, the company sets aside an innovation fund specifically for testing ideas for the restaurants that are submitted to the company from customers or franchises. Every new idea goes through a thorough and carefully controlled approval and testing process.
“We can’t have everybody out there saying my grandma has a great recipe,” Feldman says. We need to go out there and try it.”
Recommendations are made through the franchisee development office. Approved ideas will go through a strict testing procedure starting with 100 stores, then 1,000, then 2,000 stores — which are checked for compliance — until the idea is reviewed for the entire system. Stores also must report daily and weekly through the computer on how many of the product are sold, what hours and so on. This info is sent to the home office in Connecticut where analysts examine the idea before sending their suggestions to corporate. The controlled process ensures ideas are only rolled out to the entire company that can be consistently executed and that complement its bigger health and price-value messages.
“So it’s not just an off-end product that’s left out there,” Feldman says. “It’s not just somebody that wants to test something on their own. There’s a very specific testing program.”
That’s not to say the company hasn’t adapted. A key reason that Subway has been able to stay relevant in the crowded fast food space is by proactively expanding its product mix to appeal to a wider range of consumers. As home of the $5 foot long, the brand has been able to capture a larger market share of people who see it as an affordable option. It was also one of the first to respond to the growing trend of health and wellness.
In the past five years Subway's variety of products has increased dramatically, all tied to the health offerings. But the company has also carried out these changes in a very conscious way, Feldman says. The company has been successful at adding the healthier options because they are just that — options.
While it now provides things like calorie counts, reduced sodium options, and diabetic menus and healthier menu items such as salads, flatbreads and lean meats, Subway has also kept its indulgent subs like its BMT, meatball and steak and cheese. Diners can still add mayo or a bag of chips.
“Choices should be there,” Feldman says.
“That has been a tremendous part of our growth; but the fact that I can also come in and get that indulgent sub as well and I’m not a health food franchise — I’m here for everyone.”
The importance of keeping it simple has only been verified by the company’s testing of newer concepts like Subway cafés, designed by Feldman’s office for national in response to landlord’s looking for a more upscale Subway. In addition to the regular menu items, Subway cafes include offerings such as paninis and gelato.
“What we found was that the landlords thought that these big fancy law firms and investment firms that the people would demand all these fancy things,” Feldman says. “But when we opened these restaurants, more than 80 percent of the purchases are still our traditional Subway fare. So people are still coming down and getting their tuna sub or cold cut combo.”
Feldman points to four areas that have been critical to Subway’s success: product, control, simplicity, and support. The brand’s ability to adapt and grow while maintaining simple and consistent operations has helped make it ubiquitously appealing while allowing it to go places other fast food chains can’t, for example, YMCA’s, school systems, colleges, universities, and hospitals.
“If you’re a food service director in a hospital, you’d say, ‘Why would I bring a McDonald’s into the lobby when our whole message is about health?’ Feldman says. “And then when you look at other competitors and they’re still back in the 80’s as a sandwich concept with some increasing regard for things like calorie count and health message because they have to be, because the public demands it.”
But Feldman says that it’s the last pillar — support — that’s played the biggest role in the company’s success.
Before the company’s development agent model, support for restaurant locations typically came from corporate employees. Now that’s changed to where franchisees have a local team to back their success anywhere in the world.
“When you live the community you have someone that’s a phone call away,” Feldman says. “It’s not calling the corporate office and saying ‘Hey, I need help when can you send somebody down?’...as opposed to somebody who could be there that day. And that’s why Subway has been so successful. We have boots on the ground in every single city in the U.S. and now in 102 countries around the world. So if I have a problem, I am there and being supported.”
The company also has one of the lowest franchise fees in the country, which Feldman says points to the profitability of the concept. Rather than making the money on the sale of franchises, the company makes money off of the profitability of the stores that it helps succeed. Having all four pieces — product, control, simplicity and support — is really what’s allowed Subway to “build a better mousetrap” than competitors in the marketplace, Feldman says. During the worst economy, Subway’s numbers are staggering. It’s achieved continual upward increases in customer base, marketing and advertising and average unit volume.
“These are all things that are basics, but I think over the years we’ve really forgotten those basics,” Feldman says. “Now more than ever, now that people are really concerned about their dollar and where that goes — you need to show them that you are the best, that you bring the best value to them, and you are there for them if there are issues.
“For us it really is a Cinderella story, in that we were very different then than we are now. When I went to college the only choice was a foot long sub. The menu was very limited. There probably were about eight sandwiches. Now, Subway has become more of the healthy alternative. We have morphed into the concept where everyone can go to get their lunch, their dinner and now their breakfast.” ?
How to reach: Subway South Florida, www.southfloridasubway.com, or Subway Development Corp. of Washington, www.subwaydcw.com
CEO, Subway of South Florida
CEO, Subway Development Corporation in Washington, D.C.
Born: Brooklyn, New York
Education: B.A., University of Bridgeport, J.D., Brooklyn Law School
What would you do if you weren’t doing your current job?
Be a lobbyist in Washington, D.C.
What would your friends be surprised to find out about you?
I cry at sappy TV commercials and movies.
If you could have dinner with one person you’ve never met, who would it be and why?
President Clinton. His caring and concern for the world and its people is admirable.
What do you to regroup on a tough day?
I watch a great action movie.
What do you do when you’re not working?
I spend time doing anything with my family.
Take a look at the demographic makeup of your staff. Chances are that you’ll notice a broader range of ages and backgrounds than you’ve ever experienced before. Your success is dependent on creating a culture that can get the most from your talent base because a happy workforce is a productive workforce. So how do you build a culture that is conducive to multiple mindsets?
At hfa, we’ve embraced the generational gap in our workplace by creating a collaborative culture that values contributions from multiple perspectives.
It’s essential to take into consideration the differing psyches of various generations: Baby boomers are work-centric, goal-oriented competitors who believe in long hours at the office to get the job done. Gen-Xers are more tech-savvy and adaptable — they value a strong work-life balance. Gen-Yers are even more tech-focused, collaborative and likely to blur the line between work and leisure time because they want to work at something for which they have true passion.
All are valid philosophies
The key to managing differences in mindsets is to understand that they are all valid, viable philosophies that can contribute to your business’s success.
Bringing disparate groups of talent together requires team dedication. The model that our company has adopted to drive teamwork is based on a book called “The Five Dysfunctions of a Team” by Patrick Lencioni. The book describes five healthy functions, which form a pyramid that builds toward a results-based, productive environment rather than one that is activities-based and nonstrategic.
The five functions are trust, conflict, commitment, accountability and results.
The most important function is trust. Trust means team members believe in each other, both as people and as professionals. It’s a vulnerability-based trust that forms the foundation of any good team.
Conflict means healthy conflict — the ability to challenge one another in order to find new perspectives and unique solutions. Unhealthy, negative conflict is counterproductive and harmful to your team.
Once the team has gotten past conflict, all members align with the chosen course of action in the commitment stage. Differences are put aside for the good of the team.
Accountability is the act of taking ownership of one’s responsibilities and answering to the team when efforts fall short. An accountable team member will strive harder not to let the team down, resulting in higher quality work.
And finally, everything builds up to results. Establish a tangible goal and measure your efforts against whether that goal is met. A team that performs all five of these steps can expect to start seeing positive results.
Embrace differing talents
Another method we’ve found for fostering a collaborative culture is to embrace the different talents of each individual. “Strengths Finder 2.0,” a book by Tom Rath, stresses the importance of capitalizing on strengths rather than wasting energy trying to shore up weaknesses. It also contains an assessment test to identify an individual’s strengths.
By giving this assessment to our entire agency, we were able to use the results to group associates into teams based on complementary strengths. Furthermore, the information has been helpful in building trust between associates by allowing them to better understand each other’s motivations and preferences.
Finally, a collaborative culture must provide associates with outlets that can help bolster business. Our agency has teams such as our Future Team and Green Team that promote innovation among associates with a strong interest in technology and the environment by encouraging them to explore opportunities and trends to apply in our business.
We’ve also remodeled our offices to create a more collaborative workspace. Adding open gathering areas for informal meetings, for example, now allows associates to quickly exchange ideas and updates.
The secret to growth in the modern business environment is an idea as old as business itself: teamwork. Embracing the multiple mindsets and strengths of your workforce by fostering collaboration is a growth strategy that will pay dividends in any marketplace. ?
Matt McCallum is vice president/talent development at Hitchcock Fleming & Associates Inc. (hfa), a leading full-service marketing agency in Northeast Ohio, named as one of the Top Workplaces 2012 Northeast Ohio by The Cleveland Plain Dealer. McCallum is in the current class of Leadership Akron, is past president of Torchbearers, a leadership development organization for young professionals, and is a member of the Akron Art Museum’s marketing committee. Reach him at (330) 376-2111 or email@example.com.
The Eisen Agency has a longstanding tradition of community service and giving back to our community — some in visible ways and others that are truly behind the scenes. Every member of our firm is part of some local nonprofit organization, where we do far more than simply sit on boards and committees — we proactively “do.”
We donate literally hundreds of thousands of dollars of in-kind work to nonprofit groups that could otherwise not afford our expertise. We help local schools, and biannually, we do a large food drive and cleaning product drive to help the less fortunate.
As Cincinnati’s premier and most-awarded public relations firm, we believe wholeheartedly in the power of community relations to foster further brand communications with current and prospective clients, business and community leaders, and in building a positive image of our business and creating a positive work environment. We believe that professionals want to work with and work for organizations that are actively engaged in the community and strive to help out.
It can be said that “it’s just PR,” as if PR was a bad thing. We would say, “Darn right, it’s PR, it’s what our firm is, who we are, and we’re proud of it.” Because, in the truest sense of the term, we are blessed, through hard work, tenacity and determination, to be in a position to be able to relate to our public through a series of community relations and philanthropic programs that provide children toys for Christmas, food on tables, and volunteers and donations for several of Greater Cincinnati’s most recognized nonprofit organizations.
For more information, contact The Eisen Agency at www.theeisenagency.com or (859) 291-4302.
Duke Energy Center
It is the goal of Global Spectrum at the Duke Energy Convention Center to provide our clients with an experience that goes above and beyond their expectations. Our commitment to service, attention to detail and ability to listen carefully and respond to every request will enable us to achieve this goal one event at a time. We are fully committed to delivering the highest level of building management and operations in the industry. We take pride in our facility and the community it represents and understand our role in bringing people to Cincinnati and helping them experience all the great things that the city has to offer.
Originally opened in 1968, the Duke Energy Convention Center experienced its third Grand Opening in 2006 as the city of Cincinnati unveiled the results of the most recent expansion. At that time, Global Spectrum was hired by the city to manage all aspects of the more than 750,000-square-foot Duke Energy Convention Center. Featuring more than 750,000 square feet of exhibit, meeting and entertainment space, we are the ideal destination for a meeting, conference, convention, trade show or banquet.
As part of its corporate responsibility programs, Global Spectrum is committed to reducing the use of natural resources and the amount of waste that results from the various activities and events that take place at the Duke Energy Convention Center. These efforts are part of a corporate initiative called the Global Spectrum STEP UP Program, which is a program designed to distinguish us as a socially and environmentally responsible organization.
Reach the Duke Energy Center at www.duke-energycenter.com or (513) 419-7300.
Colortone Staging & Rentals
Colortone Staging & Rentals is a premier audiovisual and staging company with expertise in event design and production. We stage a multitude of events, including corporate meetings, awards banquets, special events, trade shows, concerts, webcasts and videoconferences. CSR also manages audiovisual equipment for hotel properties and operates a full-service equipment rental division. The solutions we provide, combined with our highly trained technical staff, ensure the success of every event. Our quality is unmatched and our attention to detail is unsurpassed.
The staff at CSR consists of the best in the business. Our technicians have an average of five years in the audiovisual and event management business. Their diverse backgrounds allow us to think on our feet, act quickly and provide flexibility and creative problem solving to every situation we find.
The company is also an active member of the community, consistently finding ways to give back where it can.
Learn more at www.colortone.com.
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.
Have you ever stopped to think about what leads to great outcomes in your business? How about when a plan doesn’t work? Was it the plan itself that failed or something larger?
It’s important to remember excellent results come from more than just excellent strategies and tactics. It is the character of our organizations that determines the ultimate success or failure of our plan.
The fact that your success will rise and fall on the collective personal character of your organization can be a sobering thought. Of course, there can be other circumstances at play. But all too often, the missing component in reaching strategic and tactical success is a gap in the company’s collective character.
And make no mistake about it: Your company’s character starts with you.
People turn to leaders who exhibit consistent great character. And customers turn to companies who exhibit consistent great character. This is a chain reaction that begins with you and can end with wonderful success for your organization.
Here are five points of character I believe we CEOs should keep in mind when leading our organizations. Modeling these points drives the creation of a collective culture that delivers excellent results from well-laid strategies and tactics:
Employees who aren’t fearful of mistakes reach for new ideas, create new ways to help customers and develop better methods of doing business. Encourage this desire in your team members. Release them from worry of doing the wrong thing and set them free to create the next big thing.
Treat everyone equally
Some years ago, Raytheon CEO Bill Swanson wrote a booklet of leadership observations in which he cautions, “Watch out for people who have a situational value system, who can turn the charm on and off depending on the status of the person they are interacting with.”
From your leadership peers to the man hauling out your recycling, treat everyone with the same respect and care. When your employees feel valued at all levels and see that everyone matters to you, it fosters an environment of respect and kindness that will naturally carry over to how they treat your customers. You’ll have employees who genuinely want your company to succeed — and who better to carry out your strategies and tactics?
Stay on top of the most recent research, tools and education in your field, and encourage your employees to do the same. Provide ample opportunities for them to better themselves, both professionally and personally. Smarter, more engaged, happier employees serve your customers better, deliver more and execute plans better. In simple terms, put the best into your people, so you’ll get the best out.
I often tell my wonderful employees that I want to send them home safer and healthier than when they arrived in the morning, and I work to implement processes and programs to support this. Genuine caring for the people who carry out the business of your business reverberates throughout the organization.
As with all of these character points, they ripple from you to your employees to your customers, helping excellent work be done all along the way, resulting in great successes. Care about your employees and they’ll care about your business.
Do the right thing
Helping others, taking responsibility, owning up to mistakes, honoring your word — when these are the types of things you are known for, they become the types of things your organization is known for. A culture of responsibility, kindness and honesty. That is the type of culture that does the right thing — even when the boss isn’t looking.
Joseph James Slawek is the founder, chairman and CEO of FONA International, a full-service flavor company serving some of the largest food, beverage, nutraceutical and pharmaceutical companies in the world. For more information, visit www.fona.com.
Medical Mutual, along with our co-founding Pillar Award partner SBN, proudly presents the 15th annual Pillar Awards.
In this issue, we honor 31 finalists representing a diverse group of companies and organizations of varying sizes. While they may be different in many ways, one thing that they all have in common is their commitment to strengthening the bond between the for-profit and nonprofit worlds.
There is also a new Pillar Award category for 2012. We will present our first Youth Philanthropy awards, which demonstrate how philanthropy reaches well beyond the traditional corporate sector.
It occurred to us many years ago that few things are more meaningful and important than investing time and resources in supporting our community, and we felt the need to honor companies and their employees who have gone above and beyond the call. While support and direction come from management, companies are only as great as their employees.
For that reason, we are quite proud to present the Medical Mutual SHARE Award. This unique award was founded to recognize companies whose employees best exemplify the ideals of Medical Mutual’s own employee SHARE Committee. SHARE stands for serve, help, aid, reach and educate, and it is the heart and soul of Medical Mutual’s charitable giving effort.
The SHARE Committee, made up of Medical Mutual employee volunteers, helps coordinate more than two-dozen community events involving nearly half of the company’s 2,500 employees.
On behalf of Medical Mutual and SBN, we hope you enjoy reading about these great companies and we offer congratulations to all of our Pillar Award recipients.
Rick Chiricosta is president and CEO of Medical Mutual.