The MHEDA Journal Online - Second Quarter 2004 - MHEDA... -
[Cached Version]
Published on: 9/19/2008
Last Visited: 5/11/2009
President:Stan Sewell
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Barloworld Handling's Management Team: (l-r) Logistics Manager Curt Kennedy, VP of Sales Jeff Smith, VP of Sales Terry Moore, President Stan Sewell, VP of Sales Dan Vicini, CFO Courts Holland
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Current Barloworld Handling President Stan Sewell speaks fondly of Brown.
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Barloworld Handling U.S., managed by President Stan Sewell, has three regional vice presidents who are each responsible for a different geographic area—one for Florida and Georgia, one for North Carolina and South Carolina, and the other for Alabama and Mid-South.
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“We don't want to lose our entrepreneurial and customer service focus,” Sewell says.
“We empower our local management teams and our people to operate at the grassroots level with our customers.
Branch managers have a responsibility for profit, loss and balance sheet assets.
They are authorized to manage that investment as if it was their own money and to give us the best return on investment within the guidelines established.”
Those guidelines are embedded in the company culture.
“Our core values are representing leading brands of equipment, delivering service solutions that build customer loyalty and new business, providing an atmosphere that promotes growth and learning, and following our Code of Ethics,” Sewell says.
The Code of Ethics is posted on the walls of each building, and it says that the company will obey the law, be fair, be honest, respect others and protect the environment.
Following these guidelines ensures that the company is an epitome of corporate responsibility.
“I really do believe we have a duty to our communities,” Sewell says.
Even though they are part of a multinational company, Sewell encourages his employees to live by the adage, “Think global and act local.” To back up that sentiment, last year Sewell initiated a program whereby employees received a paid day off to perform community service work.
An extra day off is only one of myriad benefits Barloworld offers its employees.
The company reimburses 80 percent of tuition expenses for employees who want to go to college for a business-related degree.
It provides a 401k plan that matches dollar for dollar on the first four percent of an employee's contribution.
Also, Sewell notes that employees are often asked for input through regular opinion surveys about how to make their experience better.
“You can't over-communicate to employees, especially in a large organization like ours, whether it's newsletters, monthly meetings or letters from me about company results.” Discussing profit and loss statements and other financial benchmarks is a recent implementation that Sewell thinks has helped employee morale by keeping people informed of what's happening in the company.
“There are no secrets when it comes to reviewing the financial health of the business,” he says.
The Advantages of Size
While communicating with 1,000 employees across 35 branch offices in eight states poses a challenge, the large size of Barloworld Handling presents other challenges, such as the cost structures necessary for employee development, health care and information technology.
Also, Barloworld is a publicly owned company, so it is under more scrutiny than a smaller, private organization would be.
But Sewell is a believer that the size of his company is nothing if not advantageous.
“When you have a large business with a thousand employees, you can tap into more of what some call the 'intellectual capital' of the business,” he says.
“We need new and innovative ideas, because I don't have all the answers.” Another advantage is the ability of employees to grow along different career paths while still with the same company.
Sewell himself started in human resources before moving into operations, and he speaks of branch managers who've gone into sales, salespeople who've become branch managers, and many other career shifts.
Beyond the advantages of being a large company, Sewell also recognizes the perks that a large corporate parent can provide.
“We have access to capital and we can leverage global synergies,” he says, citing DaimlerChrysler as an example.
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“Even with profits down last year, our contribution ended up being about 23 percent,” Sewell says.
Employee satisfaction is integral to the success of any company, particularly one so large.
“We have to provide a place where people can work that's clean and safe and where they know we're interested in their development,” Sewell says.
But it isn't only the employees who need to be satisfied.
In recent years, Barloworld as a global company embarked on a program called Value Based Management, designed to ensure that all business processes and activities are aligned to create value for employees, customers, shareholders and suppliers.
“It's not something that's just ivory tower thinking,” Sewell says, proving his point by again alluding to employee value measures.
“People want to be part of a team with challenging goals, and they want to understand the bigger picture and where they fit in,” he says.
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In fact, according to Sewell, the company has “changed more in the last five years than it did in the previous 45.” One big change was a switch in 1999 to SAP, a large integrated computer system.
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Sewell believes in the importance of selling to all customers, regardless of their size.
“Some small businesses think that because their operation is small, they won't be treated the same as a large customer.
But the key is to determine the needs of each customer and focus on a solution that works for them,” he says.
With over $200 million in sales, Barloworld is the largest Hyster forklift dealer in the country.
Sewell sees customization as the future of the industry.
“We should enhance our customers' value by differentiating on their needs and profitability.
Good customer segmentation is key.” The more Barloworld Handling can specialize its services to meet a particular customer's exact needs, the better chance that the customer will continue to do business with Barloworld.
As Sewell says, “Do for your customer what they want, not what you think they want.
Know your customers' priorities.”
One of Barloworld Handling's growth opportunities is its involvement with the General Services Administration (GSA).
The GSA required Barloworld Handling to become certified and approved as a supplier, and now the company can market and sell its products to state governments, prisons, the Coast Guard and the military.
“The GSA gives us an opportunity to work with government agencies and provide them with our products and services.
We see that as a growing part of our business,” Sewell says.
Strategies for Growth
In addition to the GSA program, Sewell also points to several other strategic operational initiatives that provide growth potential in the years ahead.
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Sewell is very intrigued by what he calls a “service force automation project” currently underway in Europe.
“Can we cost effectively equip our technicians in the field with technology that would allow them to close work orders and reduce some non-value-added steps?
If we can get that right, it has a lot of opportunities to improve our efficiency and service to our customers.” He thinks this is an industry trend to watch for, although it may take some time for the cost of such a project to come down to where a majority of people could take advantage.
“I don't think this is restricted to only large companies.
It's expensive at first, but like everything else, the cost will come down.”
It isn't only on-site technology that Sewell sees as a growth area.
He believes that getting involved with customers' electronic back office is a service gaining in popularity.
“Being able to share information with customers electronically cuts down on administrative costs.
I think that gets more bang for the buck than e-commerce,” he says.
Looking to the Future
Barloworld Handling is already one of the nation's largest material handling dealers, but don't think Sewell is content to rest on his laurels.