THE ETHOS
“As employee-owners of the company, each team member at Central States Manufacturing, Inc. (CSMI) is passionate about helping their customer's business grow. That's why everyone from the roll forming operators to the delivery drivers work together to get each order right, on time, every time. CSMI manufactures and delivers high quality metal building components to post frame, commercial and residential customers in the central portion of the United States. In appreciation of their customers, they are devoted to exceeding expectations. It is their promise to maintain total honesty and integrity with everyone their lives may touch.”
OVERVIEW
Three new executive level leaders are currently being recruited to join the executive leadership team, adding to the “bench strength” of the team. Long term planning is that some years down the road when the current president retires, the members of the Executive Management Team (EMT) will be the pool from which the next president will be chosen.
These three new leaders currently will each have a record of success of at least ten years in management, with at least five years in manufacturing, and individually have the potential to become president of CSMI within five years.
CSMI is among the leading fabricators of high quality steel building products in the Central United States, which is perhaps the country’s most active commercial construction market. The recent national economic downturn has actually increased growth in the steel building construction market due to its cost-effectiveness and rapid construction.
CSMI has an Employee Stock Ownership Plan (ESOP) by which gradually the ownership of the company will be purchased from the founders. Currently the employees own a major portion of the company stock, and as vested owners, all employees are intrinsically motivated to see the company be successful.
There are presently four manufacturing and distribution sites including one at the headquarters in Northwest Arkansas, plus in Indiana, Texas and Alabama, and a new site will be opening shortly in North Carolina. The company has 300 employee-owners and another 45 will be joining the company with the fifth location opening.
THE COMPANY
CSMI’s corporate headquarters are in Lowell, Arkansas. The founders, Carl and Rick Carpenter (father and son) started the company 1988. Growth has been fast with a projected sustained 10%+ yearly increase. One of CSMI’s most valuable assets is its reputation. For years, the company has worked aggressively to leverage its reputation and strong relationships with leading building materials distributors, building contractors, suppliers, and architects who recognize the importance of bringing projects in on time as well as on budget. It has done this by developing a keen understanding of the industry, the nature of building projects and project management, and its own capabilities. The results have produced satisfied and loyal customers.
Due to its unique culture and leadership style, CSMI achieves a level of productivity and commitment probably unequaled by its competitors. CSMI credits its success to numerous fronts, one of which is the commitment to Open Book Management a concept discussed extensively by leadership expert, John Case (www.openbookmanagement.org). From the Open Book website,
“In its simplest form, Open-Book Management is a way of running a company that gets everyone focused on building a better business - helping the business be more successful. It teaches all employees the goals of the company and how they can make a difference - both individually and as part of a team. Open-Book Management works because employees get a chance to take responsibility rather that just 'doing their job'. Each employee knows enough about the company to understand how their actions will affect their stake in the outcome.
There are many misconceptions of what Open-Book Management is and what it means to practice Open-Book Management. Many believe it is about simply sharing financial information with employees and maybe teaching what that information means. However, companies that experience the real power behind Open-Book Management go far beyond simply 'opening the books', by building a business of business people.”
CSMI is exceptionally transparent and that transparency example is set by the Chairman, Co-Founder and majority stockholder, Rick Carpenter, and carried through by the strategic, day-to-day leader, Donna Leger, the President. Rick and Donna make it a point to be visible and accessible but are not micromanagers. The current executive management team of John Williams-Vice President of Operations, David Mann-Director of Engineering, Jon Lewis-Vice President of Purchasing, Vince Tate-Chief Financial Officer, Gary Crainshaw-Vice President of Sales, and Ladena Lambert, Director of Human Resources further model the transparent, open-book paradigm.
CSMI’s success is also based on its commitment to five core values. These values have roots based on the values found in Rick Carpenter’s Christian faith, and are fundamental to all aspects of the company. Like the rest of the leadership team, in order to be successful a candidate will need to embrace these values and live them out in a genuine sense.
- Integrity
- Excellence
- Accountability
- Success/Quality of Life
- Financial Success
Please note that while profitability is a core value, it is not more important that the others. All five values are important and emphasized.
In a unique recent demonstration of its values, CSMI gave each of the 300+ employees $100 to give, bless, and encourage some person or organization in their community. Incredible stories of gratitude, surprise and elation flooded back to the CSMI team.
CSMI has a competent, vibrant leadership staff and there is a sense that people enjoy their work and are highly motivated. It is indeed a dynamic and exciting time within this company. The company and senior leadership is described with terms like “visionary, entrepreneur, risk-taking, freeing, creative, and committed.” Rick and Donna are described as strong, winsome, team players, effective at casting vision and desiring to release competent people to do their jobs with a true sense of empowerment. This warm and relational spirit sets the tone for the team. The Executive Management Team (EMT) is charged to support this atmosphere and to foster a cohesive and collegial team.
The Vice Presidents of Operations, Sales, New Products & Marketing, and Purchasing and the Director of Human Resources report to the President, and the President and Chief Financial Officer report to the CEO. The CEO and President work closely with these Executives making up the Executive Management Team (EMT), located at the company’s corporate headquarters in Lowell, Arkansas.
As a part of the leadership team, these executives are expected to have (or gain) a thorough understanding of how all the functions within the firm work together. Each is expected to lead a professional team staffed to meet the needs of an efficient and profitable company. Given CSMI’s emphasis on the value of its people, developing and mentoring people is an expectation for all company leaders.
Responsibilities will include developing and implementing strategies, systems, and processes that will provide for rapid and flexible responses to the uncertainties of an ever-changing and demanding marketplace. This will include managing internal and external relationships. Hallmarks of the company are its focus on integrity, efficiency, customer service, keeping costs low and working together effectively as a team.
CSMI’s management team is a close-knit group working as an integrated team in order to continually innovate and improve as it delivers top performance. A candidate’s management style and relational skills are of specific interest. This is a position for a team player. Each of these new executive leaders manage people as well as process, and must be able to lead and earn respect of others—supervisors and peers, as well as subordinates. There is no room for large egos…and there are no status symbols.
There are incentive plans in place whereby hourly employees share monthly in the profits of the company, and those in management have quarterly and annual incentives plans. While getting the job done and being part of the ownership may prompt an overly industrious work ethic, leadership holds people accountable for having balance in their lives.
The benefit of everyone being an owner is the desire for everyone to want the company to be successful, and it is a principle of leadership that creativity and participation is not stifled but rather encouraged. At the same time being agile and fast are also precepts held by the company.
Right, On Time, Every Time is one of CSMI’s prime strengths. The company is widely recognized for its ability to fabricate simple or complex steel building components to exacting tolerances and then delivering on its commitments within tight schedules. The company also focuses on keeping costs low and being efficient.
Even with a casual environment and management style, there is an underlying seriousness and purposefulness with an inherent understanding that there is a lot of important work to accomplish. The office environment reflects an energized, participative, creative, informal, yet professional approach to making the company successful.
Specific employee quotes related to the description of the culture at CSMI include:
“People love to work here”. (see employee testimonials at http://www.centralstatesmfg.com/Careers.aspx#Employee%20Testimonials)
“We are an organization built around humility…a “Mr. or Ms. Wall Street” attitude would not be a fit.”
“We do not keep or have secrets.”
“It is difficult to distinguish the executives from anyone else—we are not about show; we are about team.”
“We are hands-on, thin management, having few layers of support—none of us have personal administrative assistants—we roll up our sleeves and do the work—if that means making coffee, preparing our own reports, making travel arrangements (coach class) , then so be it.”
“We are big on agility—the ability to be successful, able, and willing to cross serve. We are expected to grow our teams so we can be replaced and then serve in other areas.”
“We have an attitude of urgency, but are never reckless.”
“We are hands-on and tactical with a focus on the big picture strategy.”
“We always look to hire better than ourselves—we want to push the stock price higher.”
“While we value and make it possible for people to, ‘come up through the ranks’ we also will look for talent from the outside.”
“We are willing to step up, step down, or, step aside to do anything for the company.”
“We allow people to determine what quality of life means for them—we are not workaholics, but we do get the job done always keeping the five values in sight.”
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