Best bosses say companies need staff’s input to grow

A common trait among those recognized was the ability to pilot their businesses through rough periods by motivating their employees

Although Stephen Baird is the boss at Baird & Warner, he knows he can’t grow the company alone.

By Ann Meyer
Special to the Tribune

http://www.chicagotribune.com/business/careers/chi-0410110018oct11,1,1419866.story?coll=chi-business-hed

"No one person has the magic dust that creates great things," said Baird, who is president and chief executive of the Chicago-based real estate firm.

Instead, Baird encourages his employees to come forward with ideas–even the newest hires, whom he says might bring a fresh perspective to the 149-year-old business.

"I talk to every new group of agents, and I tell them it is their responsibility as much as anybody here today to help build a new company," Baird said.

At most companies, the "my-way-or-the-highway" philosophy reigns. But for Baird, inviting employee participation comes naturally–a trait that put him among the nation’s top bosses, as determined by Fortune magazine.

When looking for the "best bosses" among the nation’s small and midsize companies, Evanston-based Winning Workplaces teamed up with Fortune and evaluated companies on six core values that the non-profit espouses: trust, respect and fairness; open communication; rewards and recognition; teamwork and employee involvement; learning and development; and work-life balance.

Baird was among the 15 winners selected nationally by a panel of judges out of a total of 210 nominees. Twenty others, including six in the Chicago area, were named finalists.

A common thread among those honored was their ability to weather a rough period by motivating their workers, said Mary Clark, executive director of Winning Workplaces. Unlike many businesses that have cut back or retreated from opportunities in a difficult climate, many of the bosses selected pursued new ventures at the suggestion of their employees.

Instead of slashing benefits such as training, many have continued these programs aggressively, with an understanding that they build loyalty among workers and prepare them for the future.

"Our only asset is the employees we have," said Satish Sachdev, president of Chicago-based Klein and Hoffman Inc., who was a Best Bosses finalist. "This is a very competitive business. Unless we have a good employee base, how can we compete?"

The structural engineering firm starts by recruiting at universities for the best engineering graduates, then retains them through training and a policy of promoting from within. The company’s average employee stay is 12 years, he said.

The company also offers flexible hours, bonus and pension plans, as well as perks like bagel-and-doughnut day every other Wednesday.

But most important, Sachdev said, the firm encourages employees’ active participation in the company. By encouraging employee input, Klein and Hoffman has broadened its reach. For example, the decision to branch out into new markets, such as restoration and facade work, stemmed from employees’ suggestions, Sachdev said.

Previously, the company had one cyclical source of business: water treatment plants.

Branching out has helped the 51-year-old company grow to nearly $10 million in annual revenue this year from about $2 million in 1980, the year the company’s previous owners sold it to five senior employees, Sachdev said. Today the company has nine owners and a workforce of about 85.

Taking on a life of its own

Joseph Krusinski, founder and chief executive Krusinski Construction Co. in Oak Brook, said employee input is key in his business, too.

"When you involve people and make them a part of it, it takes on a life of its own," said Krusinski, also a Best Bosses finalist.

After two decades of entrepreneurial growth, the family-run company, founded in 1973, hit some growing pains, he recalled. So it brought in a facilitator and began a strategic planning process, forming subcommittees and assigning specific tasks to different groups.

The company adopted an open-book management program, divulging profitability and operating expenses. And it asked staffers for suggestions on how to become more efficient.

Although management had tried without success to change the company before, this time it began seeing results.

Open book sticker shock

Just announcing the numbers made a difference, Krusinski said.

"There was some sticker shock as to what all our expenses were," he said.

Armed with new knowledge and a sense that management really wanted to hear their ideas, employees came up with a variety of suggestions to increase customer satisfaction, profitability and growth.

For example, an administrative team recommended cutting the use of directory assistance phone calls by switching to an online resource. Now the company posts monthly analyses of phone utilization, including directory assistance calls. Others have shared ways to transmit blueprints and plans via e-mail to cut delivery costs.

To spur ideas, the company has formed a Diversify, Improve and Grow (DIG) committee, which awards a day off with pay each quarter to the employee with the best suggestion.

By keeping an open mind and soliciting ideas from his workers, Baird also has managed his real estate firm’s transformation. For example, it has a leading Web site that presents more information than most competitors, such as "sold" data for the past 12 years, Baird said.

But it wasn’t Baird’s idea initially. Employees suggested offering as much information to the public as possible. And they were right, Baird said.

"As much as I can, I get out of their way," Baird said.

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