Editorials

Great companies put people 1st

By David Bower

A great company is a company with happy people turning out great products thereby creating happy clients. That company produces a by-product called profit. Young companies 1-5 years old will focus mostly on hard work and delivering a product. Great companies 5 years and older will be focused on their people if they are to achieve sustainable profit. If you focus on the product only, you will spend 90% of your time in conflict with your people. Great companies with rewarding careers and positive legacies have 3 things that they know and teach year after year:

1. They know their company

First they teach vision, mission and core values. Your people need these from you, or they will work from whatever values they picked up at past jobs and elsewhere. Employees will work hard for the good of the team because management involves them in regular job/company status meetings and shares the rewards. You will know your company when you really know how your people, customers and neighbors see you. To know your company, you will spend time interacting through strategic planning and training events. You don’t have to spend tons of money; give everyone the opportunity to make the company better.

Wal-Mart became great by including every single person when they needed answers on how to be the best. Sam Walton did it when he was working with a company like ours. You can do it too. Never let your people grow weary, and never let the customers lose touch. When people don’t know, they assume, and assumptions are rarely in your favor. The best way to know your company is to build a great business plan that includes marketing, sales, human relations, budget, and scenarios that cover from best to worst. Update it every year; it’s easy after you build that first one.

2. They know their competitive advantage

Have you ever heard of a contractor who didn’t think he was the best at everything he does? We are all guilty of this, but we must figure out what we really do better than our competition. Then we must continue to build on that strength. Too often we look at a competitor, and try to be like them. But it is much better to be the best you! If you don’t know your competitive advantage, start asking and hire someone who will tell you the truth. A real friend is not someone who will make you feel good, but rather one who is willing to help you be the best you can be.

3. They know their numbers

In a company with $2 million or less in sales, 1 to 2 managers/owners can keep up with the numbers. Companies with sales of $2 million or more, need systems to know their numbers. The great managers have reports for the numbers that drive the company. Marketing results, sales closure rates, cash flow debt, and any other numbers that drive your numbers should be on a report. All estimation must be science.

The late Charles Vander Kooi first opened my eyes to this at a seminar in Greensboro, NC in February 2002. We were at approx $1 million in sales, and all our numbers were in our heads. Our estimates were in direct correlation with our emotions. If work was slow our price was low. If we were busy, you were lucky to get a price. We had numbers everywhere for everything, but they didn’t connect. Einstein himself wouldn’t have been able to understand them.

Back then, our accounting was only important when we were broke. Then we’d get after billing hard for 2 weeks and our Profit & Loss statement would look so good that we went out and spent more than we could afford. We lived that crazy cycle until that February in 2002 when Charles’ lesson hit us between the eyes. For 15 years we have run our company based on accurate numbers, and the peace of mind has been worth more than the profit. When you know your numbers, your people will create synergy that is unbelievable.

Seven Oaks has worked with Vander Kooi Consultants Jerry Gaeta and Tony Bass for many years, and we have learned from Joe Palimeno and Mark Borst. I recommend you reach out to these great men and learn all you can. Make your company great!

David Bower is President of Seven Oaks Landscapes-Hardscapes, Inc. in Redwood, VA. Email David at David.Bower@PrivateGarden.org.