| In the early 1970s, a young technician at an | | | | new facility; new plant metal working technology |
| automobile assembly plant in Tennessee had been | | | | and equipment; and new operating processes |
| furloughed several times. He spent several | | | | several times. But wait - he's doing it all again! He |
| months out of work waiting for the company to | | | | recently opened another new facility nearby and |
| call him back as production volumes increased. He | | | | already that facility is planned to expand. |
| was a young hard working man with a burning | | | | This metal working shop and its CEO are shining |
| need to earn a good living. This waiting was more | | | | examples of how small (and large, for that |
| than this young technician could stand. With no | | | | matter) business leaders can be very successful |
| formal education beyond high school, he believed | | | | in the face of major challenges. As I listened to |
| his options were limited. He knew he was a good | | | | the CEO tell his story, four key principles |
| worker with a lot of common sense. He found a | | | | emerged: |
| small metal works shop not far from home and | | | | 1. Develop a long range plan and declare it to your |
| decided he could run it better. | | | | employees. A clear mission and purpose |
| Thirty-six years later, his products can be found in | | | | communicated plainly with every employee on the |
| millions of vehicles of leading automobile | | | | direction of the company empowers them all to |
| manufacturers. He is now a key supplier to the | | | | reach for the same dream. Stay abreast of new |
| industry, highly profitable, and growing. The metal | | | | developments in the industry, with customers, and |
| works shop's business performance speaks for | | | | with suppliers. Proactively build changes into your |
| itself. So many manufacturing related businesses | | | | business. Your long range plan needs to be |
| are moving off-shore, or they struggle to | | | | updated each year and refreshed. Keep your |
| compete and become industry consolidation | | | | eyes on the horizon. |
| targets. This shop continued to compete | | | | 2. Live and work and lead by a clear set of values |
| effectively and even built and occupied a larger | | | | or principles that set a good example for your |
| facility funded entirely from cash from operations. | | | | employees. This will guide their behavior as well. |
| In fact, refreshingly unlike many small business | | | | Communicate regularly in both formal and informal |
| owners, the CEO recognizes the importance of | | | | ways to maintain a pulse and develop trusted |
| cash flow: "Cash is the grease that keeps the | | | | relationships with employees. |
| cogs and gears of the engine running smoothly". | | | | 3. Maintain financial discipline. Determine the optimal |
| In addition to being a high quality and highly reliable | | | | operating model for your business. Relentlessly |
| supplier to their customers, the metal works shop | | | | focus on ensuring every function of the business |
| also seems to be a great place to work. The | | | | operates within those parameters. Maintain careful |
| CEO's steady hand is still at the helm of this | | | | control over spending, debt and investments to |
| company. His key team of managers and | | | | expand and grow your business. Cash flow is like |
| supervisors has been with the business for | | | | grease. |
| between 10 and 15 years. Employee turnover at | | | | 4. Operate with quality. From the start, the CEO |
| this company is practically nonexistent. That is | | | | recognized there was a better way to run a |
| remarkable in an industry where shop floor | | | | metal shop. His focus on continuous improvement |
| workers jump from job to job. Companies | | | | is as intense today as it was in the beginning. His |
| struggle to hire reliable, skilled, and drug free | | | | shop is ISO 9000 certified, and he continually |
| workers. | | | | examines new technologies, supplier relationships, |
| "My mom told me as a little boy that I must have | | | | workflow processes, customer operations and |
| a 10 year plan, and write it down. If you don't | | | | integration, and employee productivity. |
| write it down, then your brain comes up with lots | | | | "The key to the ability to change is a changeless |
| of other ideas and thoughts to distract you from | | | | sense of who you are, what you are about and |
| your plan", the CEO told me. He has stayed true | | | | what you value", Stephen R. Covey |
| to this excellent advice throughout his business | | | | What is the CEO's dream for this business? In a |
| and his personal life. How many small businesses | | | | very typical altruistic fashion, he replied: "The |
| develop long range plans? How many large | | | | business dream has already happened. I'm doing |
| businesses are able to commit reliably to a long | | | | this for them". Who is "them", you ask? His family |
| term plan that doesn't change at least every | | | | and his employees, and sometimes it may be |
| eighteen months? All too often they are driven | | | | difficult to tell the difference. He talks about either |
| by short term goals or the need to drive | | | | with equal pride and respect. His primary concern |
| shareholder returns higher faster. | | | | is to provide long term prosperity for "them". |
| I asked the CEO how much has changed over | | | | That caring attitude, along with the instinctive |
| the years, since the employees are so stable, and | | | | leadership factors discussed above, are the key |
| everything about his business seems so rock | | | | ingredients that enabled this CEO to create and |
| steady. A few things have change: he has an | | | | maintain this impressive example of a successful |
| entirely new customer set; built and moved to a | | | | small business with a big heart. |