Dan Goodman, CEO of Building36

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Originally published: 06.01.12 by Terry Tanker
Terry Tanker recently met with John Hazen White, Jr., President and CEO of Taco, a growing manufacturer and marketer of hydronic systems for the residential and commercial marketplace. They talked about employee education, a dedicated and trusting workforce, his business philosophy, company communications, and politics.
Waking up! (laughs)
I’d probably be in Florida playing golf.
It’s got to be different. It has to be fun, and it’s got to tick someone off — you know, a competitor, because if it doesn’t do that then it really didn’t do much — right?
Our new $20 million building expansion that is totally dedicated to education. We are so focused on our employees. The largest investment we make in them is in their education.
I’ve always believed that if you do the “right stuff,” the profitability will come. And, then you have the ability to give
What drives this company is giving people a path to success and believing in them. If you do, they won’t let you down.
Absolutely. It’s trust, once they know you are looking to them for answers. At a certain point, pay becomes secondary to feeling good about yourself. And they have to trust me, too. They have to feel like they have security, that they can put their kids in a good school because they know they’re going to have a good job, and no one is looking over their shoulder.
I’ll let you be the judge. Ten years ago when I took over we were a $30 million company and we had 500 employees. This year we’ll do $200 million and we still have 500 employees, and almost all of them are the same people.
The Taco Learning Center is for employees and family members. We have a very diverse workforce, and there are language barriers we try to transcend, so there are language classes. We have individuals who want a high school or college diploma, and we offer programs to accomplish that or even earn an MBA. We’ve even included summer camps for the kids.
In the current environment they can’t possibly get it right because of the total polarization of both parties. It just creates this nasty environment, and I’ll tell you what, we’re all paying a huge damn price for it.
We have several obligations. The primary one is to remain profitable because that enables us to have happy, rewarded employees who feel safe and supported. Once we have that, the customers are going to get exactly what they want, which is the best product at a competitive price. So, the philosophy that drives the company is this belief in our employees.
I learned this lesson over time as opposed to the “hard way,” and that lesson is, to be an effective CEO, you have to understand people, you have to listen to them, you have to bring them into your life. Everybody has a story, so get interested, listen to people, tap into that in a good way. It gives you insight into what makes them tick.
We have an annual plan and financial goals, but we don’t manage the business based on our bottom line because when you do that, it’s too easy to sacrifice your core beliefs. Don’t get me wrong, it’s important; it’s just not the most important thing.
We have a good connection to the market, engineering, marketing folks and the best rep network in the industry. All of them are very close to the customer, so we have good feedback on what they need and want. Often it’s just a tweak to an existing product.
It has to be how efficient motors have become. However, our focus has been system design, and I think we are better at that than anyone in the industry.
The move toward efficiency and the environment. It’s pervasive, and it’s in every industry.
It’s helped, and it needs to be encouraged. I saw very little value in chasing low-cost labor. In fact, it goes against everything I believe in with regard to managing this business. However, what our P&L did show me is that we needed to source low-cost raw material costs on the world market.
I spend most of my time on communications, and that’s on many different levels. Finance would be next and then product development.
This may sound funny, but it’s my own self-confidence. I’m blessed to be here, and I will do everything I can to make this company succeed.
I believe in my heart this is the greatest company with the best workforce in the world.
Terry is the owner of JFT Properties LLC and publisher of HVACR Business magazine. He has more than 25 years of experience in the advertising and publishing industries. He began his career with a business-to-business advertising agency. Prior to forming JFT Properties LLC in January 2006, he spent 20 years with a large national publishing and media firm where he was the publisher of several titles in the mechanical systems marketplace.
In addition to his experience in advertising and publishing, Terry has worked closely with numerous industry-related associations over the years including AHRI, NATE and ABMA.
By Terry Tanker. It’s not often you find a person with abundant knowledge to share, a passion for business and a willingness to help the next man in line.
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