Good to Great II Coverage: How to Build a Winning Company Culture

LAS VEGAS — While both Western Exterminator and Lloyd Pest Control have undergone tremendous changes throughout the years, these companies have remained successful by not straying from their founding principles.

Mike Katz, president of Western Exterminator, and Jamie Ogle, president and CEO of Lloyd Pest Control, shared how their companies have followed through on their founders’ visions at last week’s Good to Great II conference, sponsored by the National Pest Management Association and Bayer Environmental Science.

Western was founded in 1921 by Swedish immigrant Carl Strom, who envisioned a company based on efficient, high-quality customer service. Strom, and later co-chairman Roy Ashton, who joined the company in 1956, helped create a family-like corporate culture. Katz said that Strom’s presence resonates throughout the company to this day.

“I did not develop the culture of Western Exterminator Co. I landed on their doorstep in 1979. They were already a company with a strong existing culture,” Katz recalled. “There were certain things that attracted me (to the company) immediately. I was very impressed by the very, very high ethical standards of the organization. It felt like a good fit right from the beginning for me.”

Katz said Western’s growth pattern has been "slow, but steady." Recent changes have been aimed at encouraging a family atmosphere and changing terminology to better reflect the Western work environment. They include:

• Changing the job title of “technician” to “sales/service technicians”. Last year, Katz reports that Western paid out close to $1 million to its sales/service technicians for leads.
• Changed from branch offices to “service centers.” This had an impact on how Western employees perceive their roles in the organization. 
• Instituted the Western’s “We Care” attitude, which Katz views as both a promise and a commitment.
• Instituted a policy in which Western sales/service technicians put on “shoe socks” upon entering a customer’s home, in order to be “respectful of their property.”
• Provided customers with money-back guarantees. Knocked down spider webs free of charge.
• Changed corporate office name to “home office.” This was suggested by an employee – it makes the building “a little less foreboding.”

Jamie Ogle’s family also has ties to Western. Jamie’s grandfather Al, a former Western employee, bought Lloyd in 1931 for $135. Jamie’s father Jim worked for the company from 1960 – 2000 and Jamie came on board in 1991. This history and more is explained to new Lloyd employees when they are hired.

“When you bring somebody new into the organization, how do you transfer that culture?” Ogle asked. “First, through stories and histories. What’s our history and roots? We provide new employees with formal statements and missions. Explain to them their purpose and the company’s organizational structure.”

In defining its company culture to new employees, Lloyd concentrates on these areas:

• Processes used to conduct business
• How responsibilities are allocated
• How complaints are handled
• What is condoned, what is punished
• Values-driven culture

Ogle praised his management team at Lloyd and stressed the need for company leaders to set the tone. “Everybody is going to be watching you. You’re going to be in a fish bowl,” he said. “It’s our job to be the moral compass.” Ogle said effective company leaders perform the following functions:

1. Provide safety
2. Provide clarity
3. Overcommunicate
4. Coach/mentor/facilitate
5. Act as a cheerleader

Ogle said he’s learned many on-the-job lessons, including not to take yourself too seriously. “That’s one of the most important things I had to learn. Running a business isn’t about me. It’s about the people in our organization. I don’t have to have all the answers. Our company got a lot better when I realized that.”