Month: May 2019
May 13, 2019
Builders Millwork (BMI) is a $20M company headquartered in the heart of the Dairyland – Mondovi, WI. I first met Jerry Jehn, the owner, in 2008 walking into his office greeted by a life-size Wisconsin Bucky Badger Football player Fathead leaping off the wall. BMI is a great company with great people, providing architectural door and hardware products to general contractors focused on multi-family new construction projects in the upper Midwest. BMI’s model has supported a 15% growth rate YOY for the past 10 years. The shocking aspect of their business model, they have no sales team. Can you imagine your competitive edge being so great you have no need for a sales team? Well the BMI team not only imagined it, they did it.
How do you build a business model without a sales team?
Multi-family, commercial projects have been plagued by the Hardware Room for decades. The Hardware Room is a single room secured and designated to hold all door locks, hinges, closures and entry hardware needed for the project. One key is handed to the job superintendent to guard. It’s proven to be an efficient path to having lost products, hardware applied on the wrong openings and general time and money suck for everyone: general contractors, installing sub-contractors and the supplier. Jerry and the BMI team developed a solution – presorting the doors, millwork and hardware per unit. A 200-unit assisted living project will receive 200 materials packages, each marked and sorted by unit and phase. Hardware is palletized. This allows for easy and immediate distribution throughout the building and eliminates the need for hardware rooms and empty units for staging product. If units are ready, all materials can be delivered directly to the respective unit. Less time is spent handling the product and mitigating the risk of damaged or lost material. The BMI On-Site Optimization Program, the trademarked name for this process, has become the oxygen their customers need to survive.
Impact: Inventory shrink solved. Installers save on labor and stress. General contractors close projects on time. BMI does not have the headache of proving what was delivered and who is responsible for the loss.
Greater impact: Subcontracted installers demand BMI as the preferred supplier on their projects. Subcontractors have become the BMI sales team.
Jerry: “The BMI Value Proposition is our employees and their Midwest roots. Coming from a largely agricultural, hardworking heritage, our employees realize the value of hard work and are rewarded accordingly. We create an entrepreneurial culture where all employees participate in improving the company. Their opinions matter. Let the employees that are doing the work come up with the solutions. They share in the success and more importantly, take pride in being a part of the success. They take ownership.”
BMI is a team, no lone ranger swaggering sales persona driving their sales volume. No salesperson capable of moving their accounts to a competitor after a disagreement. The competitive edge was created by solving a major on-site construction problem, positioning them to operate without a sales team. What are the elements of your offering that are different from your competitors and in high demand? Clue: it’s not “on time and in full (OTIF)” or “customer service”.
Jerry is humble; make no mistake the quality of the team is a reflection of people the leader attracts. The competitive edge of the business model starts with a strategic thinking leader. You can measure the strategic abilities of any leader by their expenses on outside sales compensation and entertainment. High commission sales expenses and Canadian and Alaskan fishing trips might be a sign your competitive edge is over-reliant on your sales team and not the competitive edge of the business model.
Here are my top 6 strategic vetting questions:
1) When have you developed a market competitive edge? (proven history of success is must, looking for multiple examples of when it was done)
2) What did you inherit and what was the result? (must be reported in hard P&L numbers)
3) What is the process for developing a market competitive edge? (the answer must be focused on collecting facts directly from the customer base and defining the problem to be solved)
4) What is your problem-solving process? (looking for collaborative, team-based answers – instant fail grade if the leader says “I” or “my team” as it’s a clear sign of narcissism)
5) What are the common obstacles and how do you navigate them? (people not embracing the facts – poor ranking and prioritization)
6) What have been your biggest mistakes? (not having any examples is a clear sign of an egocentric leader – instant fail)
If your hiring process does not have multiple leaders in the final stages that score high on these questions, you are likely not accessing the hidden top-tier industry talent. Don’t settle, reach out to our experienced team and interview the talent you are missing.
Hire Smarter – Tony
May 6, 2019
We are dedicated to impacting people’s personal and professional goals; combined with helping great companies connect with great people. Following are a few of the great professionals and companies who engaged with Misura Group recently.
Regional Sales Manager
“Tony has run multiple searches for our business for top-level market leaders. We think about Tony and the team and the success they provided in two different ways. First, they were successful in finding a great many highly qualified candidates that fit our profile and ultimately helped us work through the process to find great fits for these positions. Second, Tony has become an integral part of our market insight, strategy development, and team building. I would recommend Tony and the Misura Group team to anyone looking to improve their team, culture, and strategy.” Jon Vaughan, President at Brand Vaughan Lumber
Truss General Manager
Truss and Panel Design Manager
“I have known Tony for a few years and he is a very special guy when it comes to recognizing top talent and quality people in our industry. We hired Tony to search for a general manager for our truss plant. He and the team put some great talent in front of us to choose from and we were able to hire an outstanding individual. The Misura Group is an awesome team and does outstanding work.” Clinton Grothues, General Manager at MG Building Materials
Chief People Officer
Senior Project Manager
“Tony is really good at finding out what your culture is as a leader and as a company, and making sure that he finds people that are a cultural fit. He’s not just looking at a transaction, he’s looking for where you want to be strategically then helping identify what kind of people to bring in to accomplish that goal.” Russ Kathrein, CEO at Alexander Lumber
Access Control Technician
Helping individuals grow and watching them succeed is why we do what we do. We look forward to building more meaningful relationships as the year unfolds.
With every breath keep growing – Tony
Meet the minds of our Marketing team! Laura and Nali work behind-the-scenes to make sure our clients and candidates (and the whole Misura Group team) reach their goals.
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