Pattern of growth Featured

2:59pm EDT April 20, 2011
Manu Shah, President and CEO, M S International Inc. Manu Shah, President and CEO, M S International Inc.

Growth is nothing new to Manu Shah. His company’s been experiencing it for 36 years straight – ever since M S International Inc. opened in 1975.

Shah, president and CEO, is in the stone business; his company is a global distributor of natural stone, and the largest supplier of natural stone products in the U.S. His team knows a thing or two about staying rock solid, and not even the economic downturn could keep them from growing.

Competitors cut back or closed down, but Shah set out to follow core values, seek new opportunities and invest for the long-term by innovating everywhere, from sales and marketing to the supply chain. So while his industry shrank 40 percent during the last two years, Shah grew 45 percent.

Because of this, Smart Business, ThinkASG, IBM and Union Bank named Shah one of the 2011 Smart Leader honorees. He shared how he innovates to expand while investing in employees and the company.

Give an example of a business challenge you and/or your organization faced, as well as how you overcame it.

Since opening in 1975, MSI has grown for all its 35 years of history. In the last quarter of 2008, the political and economic uncertainty, the volatility of consumer sentiment and the continuation of the global debt crisis caused a large business challenge in the form of how to compete with fear. Most of our major competitors – and the building industry in general – dealt with the fear by laying off workers, reducing pay, curtailing investments, closing locations and stopping new product innovations. Many companies in our industry decided to just shut down, or fell into bankruptcy.

After one year of survival tactics, we put aside our worries and charged forward taking risks and making calculated investments for the long term.

Instead of copying our competitors during those turbulent times, we asked all our leaders to keep our core values intact, continue to invest for the long term, and take advantage of once-in-a-lifetime opportunities in the industry. We asked our leaders to plan for knock-out punches and demand the necessary resources for execution. Some examples include:

1)    Continued hiring at an aggressive pace and encouraging hard work and over time where required

2)    Continued expansion of new branches and necessary infrastructure spending.

3)    Continued investment in innovation and marketing and product development

4)    Extended helping hands to key vendors, needy employees and few longtime customers.

5)    Most importantly, did not lay off a single employee due to lack of work.

6)    Most importantly, did not lay off a single employee or reduce benefits due to a lack of work!

The strategy worked wonders: Between 2008 and 2010, MSI grew by 45 percent while the industry shrank by 40 percent.

Most companies measure their success by top-line or bottom-line growth; we at MSI look at the market share growth. Market share is calculated geographically, customer segments and different product lines. The best time to get market share is during a downturn in the economy when opponents are weak.

We hired and trained over 150 employees nationwide in 2010. Opened three new branches. Made huge investments in IT software and hardware to improve productivity. Revitalized HR, including a focus on wellness and a digitized review process.

In what ways are you an innovative leader, and how does your organization employ innovation to be on the leading edge?

Innovation is the engine of growth.

Innovation in sales and marketing – developing state-of the art display systems physically and in the virtual world.

Innovation in product packaging – attractive packaging to the consumer and more green, environmentally friendly packages.

Innovation in hiring and retaining talent.

Innovation in supply chain management, including clarity and transparency with all major vendors.

Innovation in never using “OPM” – Other People’s Money. About 95 percent of our A/P is paid as soon as shipments are confirmed shipped from 35 countries – 30 to 90 days before our competition pays.

Innovation in information systems to get all info as soon as it happens to all with the need to know.

Introduce many databases with ARC (Analysis, Recommendations, Conclusion) by using over 40 servers with real-time data.

How do you make a significant impact on the community and regional economy?

We expanded wellness program to every employee, introduced matching charitable contributions to all 500-plus employees, trained 15-plus college students during summer (which we do each year), added 40-plus employees locally in Orange County, received “Best Place to Work” recognization in Orange County as well as an award for large family-owned business and an award for the Business of the Year by the City of Orange.

We work with numerous community organizations on their needs, as well.

How to reach: M S International Inc., (714) 685-7500 or