Colorado success stories - Houg Special Services

Entrepreneurial solutions and flexibility enable growth during the downturn

When all of her high school friends were heading off to college in 1987, Jenyce Houg stayed in Denver to help her Dad, Doug, with the family trucking business. She immersed herself in learning all aspects of the business. Jenyce fell in love with the business and the fast pace and the supply of new problems to tackle and solve. She later attended Regis University and is now the CEO of Houg Special Services, Inc., working alongside her Dad and Brother, Wade. The business revenue has more than tripled since 2003 (from $10 million to $32 million) during a period that has been exceptionally trying for the trucking industry.

Jenyce, why are you involved with the trucking business? My Dad is an inspiring entrepreneur. I wanted to help him make his ideas a reality. Also I love problem-solving and it was a challenge to work in a male-dominated industry that was still much of the "good old boy" network. I have worked hard to earn the respect of people in the industry.

How is Houg different from its competitors? Houg offers a complete logistics solution - a one-stop shop for our customers which is unique in the industry. Our business model is different. We are not ‘asset-heavy.' We do not have significant fixed costs, so we are able to flex our resources to meet customer needs. We constantly look to find ways to NOT be like our competitors. We strive to develop very close, collaborative, long-term relationship with our customers. It is common for us to brainstorm with customers to develop ‘out of the box' approaches that are most cost effective for their business needs.

The last decade was already pretty tough for the trucking business and then the recession hit. How did it affect your business? We saw the recession as an opportunity and hit the accelerator. There were several factors that helped us: we have a great relationship with our bank who provides us the necessary line of credit needed to operate in this tough industry; we stayed tightly focused on the food and beverage transportation niche; with our business model, we have a flexible labor force so we were not stuck with higher fixed costs; and we embrace that our number one customer is our carriers and drivers and treat them with the respect they deserve.

What are your biggest challenges? The biggest challenge has been to learn to work in conjunction with family everyday and successfully stay focused on the same vision. We had to learn how to trust and respect each other in business as well as family, and to focus on the strengths of family members. My brother, Wade, who is president, is absolutely exceptional at customer service and recruiting the best drivers which is crucial to our success. My Dad challenges us every day with an endless supply of ideas, possibilities and boundless optimism that anything can be done if you just have passion.

Managing a $30 million or a $50 million company is different than a $10 million business. We need to continue to develop the systems and processes as well as the capabilities of the team. This past year we invested heavily to upgrade our systems. It is a balancing act to maintain the entrepreneurial spirit, while building the team capable of managing the growth.

I spend a lot of my time on the culture of the company, working with the team to find ways to institutionalize the culture: hiring for attitude, building accountability, adding recognition, and valuing people's differences. We will continue to train and empower the Houg team to make decisions, to develop a culture where people are positive and willing to exceed customer expectations every day, which starts with servicing each other as customers within the walls of Houg first.

So what's ahead for Houg over the next five years? We must continue to enhance our relationships with our internal and external customers and suppliers. We need to hear their issues and problems so that we can collaborate with them to find solutions. Over time we need to learn how to use new technology (social media, etc.), but nothing replaces the power of face-to-face interaction.

The trucking industry has and continues to face capacity constraints so we continually look for innovative ways to increase capacity. Geographical expansion is a potential strategy. We are looking at a hub and spoke plan which would potentially include regional expansion to locations where we are already sending freight. We will also entertain future acquisitions of small trucking companies to increase capacity and market share. It is important for our future success that we are well-positioned to take advantage of opportunities over the next few years.

Colorado success stories: Broadnet Teleservices

Customer relationships propel its growth

(From Issues for Growth Vol.20, No. 8)

From the Front Lines: Colorado Success Stories

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This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on March 7, 2011 in ColoradoBiz magazine or you can read it below.

Imagine if you could call your entire target audience on the phone and engage them in conversation - all at the same time. You know, those very people that make a difference to your bottom line.

It isn't important if you call them your consumers, fans, members or even the general public. And it won't make a difference if there are 200 or 2 million of them. What matters is you can now interact with them like never before. You'll have more than revealing insights into what they're thinking and feeling - you'll have actionable information and statistics to hone your brand and its message.

This is the interactive voice service, Teleforum, that Broadnet Teleservices has pioneered. Recently I met with Steve Patterson, co-founder and CEO of Broadnet Teleservices to discuss how Broadnet has enjoyed continuous growth from its bootstrapped beginnings with co-founder and CTO, Brian Brown in 2004. Over the last six years, company revenue has grown by more than 60 times.

What is your differentiation?

We offer a high quality product and superior service, but more importantly, we want customers for life. We believe we offer more than a product. We strive to continuously build the relationship with the customer, always trying to "feel" what it's like for the customer to touch us. We survey and measure every time we interact with our customers and our customer. We teach our employees to ‘listen well.' Our customers actually drive the product as each customer experience is customized to meet their needs. So while our technology is second-to-none, we view this intimate relationship with our customers as our real advantage.

Who uses your products and services?

We started as a means for people in political office or candidates to reach their constituents and voters. That market fueled our early growth. We also have enjoyed great success in the Sports arena for teams who seek to interact with their fans and ticketholders. In the last few years, the market for companies seeking to interact with their customers has really begun to take off. This is the area with the greatest potential for Broadnet.

How has the recession impacted your business?

We've grown well during the recession. The real question is whether we could have grown faster without the recession. We have benefited from the increasing popularity of social media. People value having a relationship. We provide for a relationship and a conversation that is voice-to-voice - and more than 140 characters.

What are your biggest challenges?

By far our biggest challenge is that many organizations, companies, and people do not really know their customers. A good example of this is a book publisher. The publisher sells books to a bookstore or online and has no idea who the end customer is. Broadnet needs to help them identify the customers so that Broadnet can initiate the dialogue. We are looking to blend our products with social media to create the dialogue. We enable that richer, deeper conversation.

What are the keys to continued growth over the next 5-10 years?

I would say there are several strategic keys to our future: The first is to increase market awareness. We need to drive awareness in two directions - to the large company and the consumer. The large organization needs to understand how Broadnet can enable this unique and deep ability to interact with customers. From the consumer side, the consumer only needs to experience it once. Overwhelmingly, consumers are so enthusiastic that their first response to a Teleforum experience is ‘how can I do that again;' second, we need to scale the infrastructure so that we can offer more events to larger groups of people (an audience of 50 million as opposed to 50,000); third, is to stay in front of the technology so that we can offer increased features in a more cost effective way. We'll also need capital for growth and people who have ‘been there, done that' to round out our leadership team.

Is it difficult finding good people and good leaders?

The challenge isn't finding good people; it's finding world-class people. We look to develop people that can be attracted and molded into exceptional leaders. I have found that one thing you cannot coach into a person is passion. Hire people with passion and stay out of the way of their passion and they'll accomplish great things. Our job is to nurture the flames of their passion.

Colorado Success Stories - BluSKY Restoration

(From Issues for Growth Vol.20, No. 7)

From the Front Lines: Colorado Success Stories

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This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on February 28, 2011 in ColoradoBiz magazine or you can read it below.

Commitment to customer service is key to BluSKY's success

Terry Shadwick, co-founder and CEO of BluSKY Restoration discusses how the company has developed a consistent record of growth despite the recession. BluSKY provides emergency response for water damage, fire damage, flood damage and mold remediation on residential & commercial property.

How did you get into the restoration business?

From an early age I watched my father run his own small construction company. After graduating with a degree in Finance, I started out as an insurance claim adjuster, but found myself looking for greater autonomy. I went to work for a restoration company, opening their Denver office. I thought there was a better business model - a better way to do business. So in 2004, my partner Andy Bakker and I started BluSKY Restoration Contractors.

What is the difference with your model?

Our people and our detailed commitment to customer service. We search for the most professional, courteous employees and sub-contractors who have a strong commitment to customer satisfaction. We measure and monitor customer service closely and we use that information to make improvements to our service and delivery. We think the best measure of customer satisfaction is whether customers would hire us again. Currently over 96% of our customers say they would use BluSKY again. We try to make it easy for our people to provide the best experience for our customers and we reward and recognize the team members that receive "perfect" ratings on customer surveys.

Has the growth path always been smooth?

While the revenue growth has been smooth (from $1.7MM in 2004 to $30MM in 2010), we have learned that the business has a seasonality and cyclicality to it. We deal with insurance and mortgage companies that have multiple layers of approval which can slow payment. We began cash flow modeling to help manage and project our cash needs. The management team has embraced strategic business planning and a goal setting process that has helped us manage the growth. We develop strategic plans every fall and we update the plan twice a year based on actual results and conditions.

The construction industry has been severely hit during the current recession. How has the recession impacted your business?

The recession resulted in a slowdown of the rehabilitation work, as the Real Estate Investment companies (REITs) have deferred maintenance and property updates. We tightened up our collection practices and policies and focused more management attention on business operations as well as the sales process.

You have continued to grow every year. What are some of the actions and new programs you are taking to sustain growth?

We continue to diversify our offerings and we have added new revenue streams that we generate from existing satisfied customers. We have added commercial and apartment rehabilitation and remodeling. We also began to offer roofing and a construction defect business. Today, 60 percent of our business is insurance restoration with 40 percent from the additional business lines.

What are the keys to continued growth over the next 5-10 years?

Geographical expansion is a key strategy. We plan to add more locations (from 8 currently to 50 locations) within the next ten years. This expansion will be a combination of company startups ("greenfields") as well as acquisitions. The second core strategy is to continue to develop the management team and the growth of people who fit well with our commitment to customer focus.

You have a unique culture for a construction business.

We started out to make BluSKY a great place to work and for the past three years, we have been voted one of the best places to work in Colorado. Our motto is to "work hard, play harder." Many of our employees come from the Midwest and we believe strongly in "midwestern values" - fairness, trust, openness - doing what we say we will. We apply those values in a big circle and treat all employees, contractors, customers, and suppliers with respect. We have open book management and give employees wide latitude to find solutions and meet the needs of customers. We hire for culture, values, and attitudes first.

Is it difficult finding good people and developing leaders?

Restoration is less cyclical than construction. The recession has helped introduce construction people to restoration and to BluSKY. The stability of the restoration business looks a bit "sexier" today and we are now on the radar screen for the best employees. As I mentioned, we hire for cultural fit first. We develop our own leaders with an Emerging Leaders program and we encourage lots of training

Colorado success stories: Regis Learning Solutions

From the Front Lines - Colorado success stories. We are interviewing Mead Consulting clients and friends whose companies have thrived during the economic recession through disruptive innovation, new business models or superior execution.

Colorado success stories: Regis Learning Solutions

Changing the Way Organizations Learn and Train

Editor's note: This is the third in a series of Colorado company success stories as told by CEOs and business owners. This article was published in ColoradoBiz magazine on February 21, 2011 - DPM

Recently Chris Carosella and I spoke with Michael Vaughan, CEO of Regis Learning Solutions to discuss their strategy for disruptive innovation in training and education.

Regis Learning Solutions (RLS) has a unique approach to training and learning. How is it different?

We started RLS because we wanted to change education. The traditional model is to teach people what to think: accepting what they are told, processing information as segmented fragments, doing the tasks assigned to them without understanding the full picture. However, in a world that changes as rapidly as ours, where opportunities are complex and shifting, success relies on individuals and organizations knowing how to think.

We believe that an organization’s future success rests on its ability to adapt, to help employees tune out the noise and to tune in critical thinking skills that allow for wider perspective, smarter decisions, and deeper understanding. Regis Learning Solutions was created with the goal of helping our clients use simulations to become better decision makers and problem solvers.

How did RLS get started?

The momentum behind RLS came from Regis University's desire to bring a new educational approach to business and government. RLS co-founder, Peggy Steele, created the business plan in 2003. Today we have over 50 employees and offices in Colorado, Illinois, and Washington, DC.

Our focus on simulation evolved as we worked with Regis University on research about what changes behavior. There are four fears people have about using simulations: (1) How much will it cost? (2) How much time will it take to develop? (3) How will we deploy it throughout our company? (4) How will we maintain the simulation? We built the simulation platform first for Regis University, then reduced the development time and launched.

How does RLS compete?

We're not just about training; we are about “human performance improvement.” We differentiate ourselves by how we address the “four fears” previously mentioned. We work within different budget constraints and can build simulations at the same cost of a high-end eLearning course. Our processes quickly gather and analyze the inputs and develop the simulation. Our simulations are web-based, designed to be easily updated and repurposed with reusable elements that can be reorganized for a new simulation without incurring significant development costs. RLS customers can continue to use their simulations for many years and revitalize them to address new business concerns. RLS designs deployment with an eye on the cost/benefit of delivery methods for each element of learning with roadmaps and leader’s guides to assist in the deployment. We build simulations for clients such as UPS, Hyatt Corporation, McDonald’s, Ernst & Young, Deloitte, and the Air Force.

What have been your biggest challenges?

We have two major challenges: Educating our target market about simulation and promoting the RLS brand. When some potential clients hear "simulation" they think of flight simulators or video games. It’s difficult for them to understand thatRLS is able to build simulations that require critical thinking and problem solving skills that can be applied in real world situations. They may be unaware that our simulations are based on a systems model that allows a rich, integrated approach to measuring the impact of decisions across many key performance indicators. We have learned that our sales approach has to be different – a client needs to experience a simulation to see that it can model any aspect of their business.

As for branding, we speak at events, publish articles and books, and develop robust relationships with channel partners.We have won awards that enhance our brand, including a Brandon Hall Gold Award for a simulation designed for Ernst and Young called Engagement Economics.

What are the challenges to current growth?

Managing our growth. We need people who understand business and education, preferably with experience in developing training or building simulations. They also need to have the balance of discipline and agility. We can grow faster if we have more of the right people.

What are the keys to continued growth over the next 5-10 years?

We merged with another company that was focused on the government side so our business is 50% government and 50% commercial. We’ll accelerate the government growth through our D.C. office in the areas of emergency response, the intelligence community, senior executive services, and the professional military university. Additional growth will come from productizing 40 types of simulations and creating a multi-year licensing model.

NEXT UP: BluSKY Restoration

Colorado success stories: GolfTEC

Changes in strategic focus help GolfTEC thrive and grow

By David P. Mead

Editor's note: This is the second in a series of Colorado company success stories as told by CEOs and business owners that we are writing for ColoradoBiz Magazine. We are interviewing clients and friends whose companies have thrived during the economic recession through disruptive innovation, new business models or superior execution. (This article was originally published in ColoradoBiz on Feb 7th)

Recently I sat down with Joe Assell, co-founder and CEO of GolfTEC to review the strategies and approaches that the company has taken to reach its current level of success.

Mead: How did you decide to get into the business?

Assell: I was a golf pro and in 1994-95, co-founders Mike Clinton, Clayton Cole and I could see new technologies emerging (PC’s, the internet, etc.). Golf lessons essentially had been conducted the same way by golf professionals for years. We decided to find a better way to give a golf lesson, utilizing technology. In 1995 we opened our first location - as an experiment. It booked quickly and we added a second location.

Mead: What is your differentiation?

Assell: We have capitalized on a “first to market” advantage. We offer proprietary software platforms: g- SWING where we match your swing to our database which includes the motions of 150 top tour players. So the lesson is based on facts and data about your swing, rather than opinion; CaddyMaster (our ERP system) provides business intelligence about customers, location performance, on-line scheduling. It allows us to run golf instruction as a sophisticated business.

Mead: Has the growth path always been smooth?

Assell: In 1997-98 technology was “hot” and we were talking to venture capitalists. To please them, we “foolishly” started trying to become a tech company and developed technology to deliver lessons over the internet and added expensive, experienced management. When the tech bubble burst, we could not get investors, and had to reverse direction and retool back to our original profitable model – but not until we had burned through $3 Million in capital. We were very close to the edge – within 1-2 months of folding. We were able to secure a bridge loan which saved us.

Mead: Weren’t there some good things that came from this expensive lesson?

Assell: Yes, we had the technology which has become a key to our success. Also, three things happened, starting in 2001.Gart Capital Partners invested in GolfTEC. They had a fabulous history of success in sports retail and helped us stabilize the business. We also started partnering with GolfSmith (we are now co-located in 56 of their stores). Third, we started franchising. Over the next five years, we had steady consistent growth - from 18 locations to 140 locations.

Mead: Joe, how did the current recession impact your business?

Assell: We are in the retail and recreation business and we could see that retail was taking a big hit, especially specialty and luxury retail. Some retailers were reporting 35% to 50% reductions in sales. We put a strategic plan in place to respond to these dynamics. Our team did a terrific job. We were fortunate that even in our worst period (Sept ’08 through August ’09), our sales were down only 7.7%.

Mead: What are some of the actions and new programs you took to sustain growth?

Assell: First, we adjusted our strategy to focus on equipment sales. Our IT team developed proprietary club-fitting software and we partnered with Golf Magazine and Golf.com. Second, we started offering monthly payment plans that spread the annual cost of lessons and helped our customers manage their cash flow. It was amazing that 18% of our customers adopted these plans. Third, we rewarded our loyal customers by offering discounts for renewals. We offered two different months during the year when renewing customers could sign on for another year at discounted rates. Not only did this build great goodwill, but these two months have become GolfTEC's two largest cash sales months. Our results have continued to steadily improve. In 2010, our business was up 15% over 2009.

Mead: What are the keys to continued growth over the next 5-10 years?

Assell: There is significant opportunity for growth, both in same location sales as well as new locations. The “TEC” in GolfTEC stands for Technique, Equipment, Conditioning. In technique (golf lessons), we are number one on the world. In equipment, we started focusing more attention. Our equipment sales were up 70% in 2010 and there is plenty of room for growth. Conditioning is a great opportunity and one that we really haven’t touched yet. As far as the market is concerned, we see the global market as having capacity for 750 GolfTEC locations and we are currently at 145 so we are only at about 20% penetration. We still have a long way to grow!

SPECIAL: Entire Adaptable Leadership Series

Many of you have requested that we send the complete 9-part series on "Adaptable Leadership." We have provided links to all of the article entries below. We hope you find it useful. If you would like more information about our Creating Adaptable Leadership and Culture process, please contact me.

–DPM

"... Executives see change as a way to strengthen the business. Employees don't.They see change as unwelcome, disruptive, and intrusive. Employees focus too much on what they think they will lose from change rather than what they will gain in the end..."

"... Given that people are attached to how things are, there is a sense of loss and emotional upheaval if that certainty, and the security it provides, is threatened..."

"...Adapting is the ability to adjust to a variety of situations as needed. There's no beginning and end. It's a constant process that can move in any direction as desired. It includes everyone, not just change leaders. Everyone becomes responsible for results..."

Part 1 - The Long, Slow, Hard Economic Slog

Part 2 - Companies Don"t Need to Change. They Need to Adapt

Part 3 - 'Adapt' is New Thinking

Part 4 - How to Create an Adaptable Culture

Part 5 - Create an Adapting Culture: When It Can Go Wrong

Part 6 - Do You have the Leaders to Drive an Adaptive Culture?

Part 7 – Characteristics of Adaptive Leaders

Part 8 - Creating an Adapting Company Is Not Complicated

Part 9 - From Ignorance to Results: Understanding Stages of Change from the CEO Perspective

From the Front Lines: Colorado Success Stories -Qualvu Grows by Making Every Consumer's Opinion Count

From the Front Lines: Colorado Success Stories

This series of interviews with clients and friends focuses on companies that have succeeded during the recession. The stories are told by the CEOs and business owners themselves.

Qualvu Grows by Making Every Consumer’s Opinion Count!

Recently I spoke with John Williamson, CEO of Golden-based Qualvu www.Qualvu.com which has introduced disruptive innovation to the world of consumer focus groups, surveys and qualitative consumer market research. Qualvu was recognized as a 2010 Colorado Company to Watch.

Mead: How did you decide to get into the business?

Williamson: Every Fortune 1000 consumer-focused company in the world uses qualitative research extensively. The industry offered interesting opportunities for a startup: the chance to disrupt a market largely untouched by web-based innovation, to introduce self-serve methods, and importantly to make qualitative research accessible to thousands of companies beyond the Fortune 1000.

Qualvu, founded in early 2008, pioneered a breakthrough online experience for conducting web-based consumer feedback, allowing businesses to take their qualitative research online without losing the face-to-face connections crucial to understanding customers. By connecting companies with their customers around the globe via webcams, flip cams and even consumers’ smart phones, Qualvu delivers more compelling and actionable business intelligence than focus groups, and because of cost efficiencies, it’s available to any business. We call it “finding your truth” – and it’s a really empowering Do-It-Yourself experience.

Mead: How do you compete and achieve differentiation?

Williamson: Qualvu was first to market with an innovative process that allows any user with an Internet connection – either PC or video mobile phone - to provide video-based feedback at the press of a button. Clients realize speed, cost and global reach advantages. Our clients can set up projects at any time day or night, and gain access to their consumers at home, at work, while shopping, or anywhere they interact with the client’s products. Over the past 3 years, we have developed a proprietary process and technology to convert the data to highlight reels of key insights as well as online video reports too.

Mead: What have been your biggest challenges?

Williamson: We have constantly fine-tuned every aspect of the experience – from a self-serve project portal, to finding better participants, to delivering online reports within hours complete with video highlight reels of the most relevant and compelling consumer feedback, to creating completely searchable video. Every day is a new breakthrough in our refinement.

Our biggest challenge is getting the word out! We’re just now starting to really pop on the industry radar, as we’ve attracted a who’s who of clients, such as Chrysler, Procter & Gamble, eBay, Yahoo!, T-Mobile, Disney, Adidas, Pfizer, just to name a few. We’ll start expanding our penetration beyond these larger companies as people begin to realize we’re a site for any business that needs deep insights to make better decisions.

Mead: What are the keys to continued growth over the next 5-10 years?

Williamson: Relentless innovation to keep our technical and process advantages. A lot of that has to do with enabling breakthroughs in data mining video content, so our clients can increase the value of every project over time as they consolidate and re-assess consumer video data, trends, and insights. The beauty is that the more you use Qualvu, the better it gets.

Mead: How do you maintain the culture and still build the management team required to grow?

Williamson: We find great people and promote from within. We find smart, creative people who have a positive attitude and a strong work ethic who want to be a part of what Qualvu is accomplishing. One of our mantras to every new hire is, “Welcome to Qualvu. You’ll do the best work of your career here.” People see career paths because Qualvu is a meritocracy. We try to reward effort, talent, initiative, and values.

Mead: How do global factors influence your growth?

Williamson: Anyone with an Internet connection around the world can provide information vital to our clients’ products and services. Certainly given the economic conditions globally the past couple of years, more brands are trying to do more research with less – and that’s helped Qualvu gain traction more quickly I believe, as these types of conditions have the tendency to spawn new models that break through because buyers are more open to innovation to solve their business problems.

We opened an office in Dublin this year to expand our global reach. Dublin is accessible, has a multi-national workforce, and is cost efficient. Interestingly more money is spent on qualitative research today in Europe than in the US, and we intend to support our global client base with expansion to other markets too.

NOTE: John Williamson announced on February 7, 2011 the following new product: "Qualvu releases world's first mobile app for video-based qualitative research. Come see how it works via Qualvu webinar: http://bit.ly/f1iYWO%22