[Good to Great] 7 Deadly Sins

It is said that history repeats itself. In the business world, this premise could be applied to best practice examples used to gain an edge over competitors.

Pest control companies, although vastly different entities than companies like Procter & Gamble or Wal-Mart, can implement those corporations’ successful strategies to gain marketshare and improve their organizations.

GOOD TO GREAT. Bob Wanzer, president and CEO of HomeTeam Pest Defense, Dallas, Texas, spoke recently to PCOs at the Good to Great conference in Ft. Lauderdale, Fla. He outlined key tactics utilized by visionary companies that were featured in Good to Great, a book authored by Jim Collins, published by HarperBusiness (October 2001).

Central to each corporation’s success are various management tactics. One of the first steps each company should take is to establish its core ideologies. "This is who we are; this is what we stand for; and this is what we are about," Wanzer said.

For instance, he cited Nordstrom and its emphasis on customer service and impeccable reputation as part of its core ideologies. Likewise, Procter & Gamble stresses product excellence and concern for the individual as a few of its ideologies.

Wanzer noted that many corporations seem to favor nearly identical ideologies, but truly successful companies "live their core ideologies every day." Indeed, if a company fails to do this, "it has lost all credibility."

Along with ideologies, a company must identify its core purpose. Basically an owner can ask, "What is our reason for being?" Johnson & Johnson defines its purpose as "to alleviate pain and suffering." Many in the pest control industry would have similar core purposes; the core ideologies could differentiate the actions taken by individual companies.

Wanzer stresses that PCOs can build visionary companies based on an owner’s strengths and the desire for challenges. By building a culture that concentrates on the core ideologies and purpose, however, the company may forego immediate profits. On the positive side, the groundwork is in place to realize profits over time, possibly for a longer time. "Visionary companies are more likely to stay intact when an owner sells the company," Wanzer said.

SETTING GOALS. Once a company defines its core ideologies and purpose, goal setting follows. "Use big, hairy audacious goals," Wanzer said. These should be goals outside everyone’s comfort zone that are so clear that little explanation is needed. However, these goals must still conform to the company’s ideologies.

For example, in 1934 Walt Disney decided to make a full-length feature cartoon. Hollywood labeled the project Disney’s Folly, because this technique had never been attempted. Snow White and the Seven Dwarfs was released in 1937, costing $1.4 million to produce. However, it grossed $8.5 million in its original release, holding the record for highest grossing movie until Gone With the Wind in 1939.

Wanzer noted that "visionary companies made their best moves by taking chances through trial and error, optimism and sometimes by accident." Analyzing new systems or products in a timely manner is essential. "Accept that mistakes will be made," and be prepared to adjust or even abandon some ideas. Failure is, in itself, a good teacher.

Johnson & Johnson originally sold medical plasters and antiseptic drugs. Complaints that the plasters were causing skin irritation forced Johnson & Johnson to make a decision. The company started to include some talcum powder with the plasters, and started to receive more and more orders. This led to the birth of Johnson’s Baby Powder, a strong seller for the company.

ADDITIONAL TACTICS. The book contains anecdotes about companies that were once great, but grew complacent. Wanzer said that visionary companies constantly look at the competition, and continually set new goals. "Comfort is not the goal," he said. Visionary companies that are considered at the top of their fields continue to innovate.

Ideally, one aspect of the business should be tackled at a time rather than a "shotgun" approach. This strategy tends to keep owners and employees focused to attain the goal. The owners and employees, however, concentrate on their own specific tasks to reach the goal. Owners should not "use the big picture to try to motivate workers."

Internal systems that track compliance to core ideologies should be instituted. Even though many lessons can be learned from visionary companies, not every lesson will be applicable to another company. Owners must trust their own instincts, and try only those ideas that are truly aligned with the company’s goals and standards.

Additionally, owners in visionary companies "aren’t tyrannized by ‘either/or’ thinking," Wanzer stressed. They can, and do, often hold contradictory ideas. For example, they can be meticulous in planning stages, yet move quickly if the need arises. Also, they can take a conservative approach normally, but be progressive in their actions.

In the pest control industry, saving time during routes by foregoing customer interaction could have a potential negative effect. An owner must weigh the goodwill attained by good customer service skills not as an either/or situation in regard to time spent on the account.

Another important part of visionary companies’ success is the emphasis on the long-term investment in employees. An owner acting alone to instigate change may not be as successful. Those employees who embrace challenges become more valuable and, in turn, make the organization better. "With your growth plan, the biggest concern should not be capital or business strategy, it’s can you get enough good people to attain that growth," Wanzer said.

The author is a frequent contributor to PCT magazine. She can be reached via e-mail at dtaylor@giemedia.com.