DACOR Distinctive Appliances
Orient your company to a higher purpose.
“What is my most powerful leadership secret? To orient my company to a higher purpose and to be consistent in following our moral compass,” says Mike Joseph, CEO of DACOR, a high-end kitchen appliance manufacturer.
“I’ve been with DACOR 32 years. During this period, sales have increased from $50,000 to approaching $200,000,000. The company has nearly doubled in size since the inception of the DACOR Value Statement five years ago.”
A recent project: conducting a Value Training workshop with his executive team. The Value Statement reads:
To Honor God in All That We Do . . .
- By respecting others
- By doing good work
- By helping others
- By forgiving others
- By giving thanks
- By celebrating our lives
“I believe that when we respect and help one another, we are able to recognize the talent throughout the organization. When we practice forgiveness and give thanks to one another, we open and improve communication. When we deliver innovative and high-quality products, we do good work. When our business behavior is driven by these values, everyone benefits, and we have many reasons to celebrate our lives.
“Also, we began to understand that in a company that truly manages by its values, there is only one boss—the company values.
“In the context of the rest of the world, bringing spiritual values into the daily workplace is considered a bold step. If other leaders face the challenge I did—that is, wondering if I should go forward with acknowledging God’s presence at work—my advice is absolutely go ahead and do it!
“Now, my entire executive team and I have participated in the Values Training Workshops; they have trained their staff, and so on. Our goal is to have every DACOR associate participate in these small group-training sessions in the next few months. It will be an ongoing process as we are challenged daily in the workplace to make value based decisions.
“Five years ago, when I developed the internal initiative to change the way we approach business, I wanted an inclusive statement, and a call to a higher purpose. One encounters cynicism when one begins to implement a Value Statement.
“First, we presented to employee groups and distributor groups. Some individuals were uncomfortable. Nevertheless, I simply wanted to find the right words to express the moral compass for the company. And words are important, though actions are more important. Now, we communicate the company Value Statement everywhere: Web, business cards, and showrooms. People have embraced it internally and externally.
“There are many tangible examples of how we put the Value Statement into action.
- Profits are shared with our associates.
- Each associate is a stockholder through our Employee Stock Ownership Program.
- Our products are innovative—many industry firsts to our credit.
- Our product warranty is most generous in industry.
- We have a proactive customer service department.
- We have a free employee assistance program: a 24 hour help hotline.
- Each new associate is personally welcomed by me.
- Each associate receives a birthday card from me each year (a small gesture, but significant).
- We say Grace at our associate luncheons and close with a benediction.
- The Value Statement is shown on the Web page, business cards, offices, and showrooms.
- We strive for consistent communication through such things as our OnValue newsletter.
- Charitable work is encouraged through our community outreach department.
“On the personal side, my wife Lynn and I founded the Joseph Family Foundation, dedicated to helping children live healthy, fulfilling, spiritual lives, and to strengthening the bonds of family.
“Gratefully, our associates demonstrate their support of what we do in many ways:
- Less than 10 percent attrition rate
- 96.6 percent acceptance of the Value Statement in a recent anonymous survey
- High productivity—our sales per employee is 77 percent higher than the industry median
- Operating income per employee and market value per employee among the highest in the industry
“Introducing the Value Statement has truly had a transformative effect throughout the company, and it has taken everyone to make it work. I’m the guy who was inspired to take the first step. Now, it is very gratifying to see how the company now ‘owns’ it.”
Mike’s advice for becoming a better leader is to, “create an environment where your employees can do their best work. If you do, they will do extraordinary things. Also, one must have a mindset that he is primarily responsible for the welfare of the people he leads. As I was taught in the Marine Corps: An officer eats after his men are fed.
“Other ways to become a better leader are to:
- Understand that education is a continuous process—be open to new ideas.
- Have a willingness to show your humanity.
- Exhibit and engender trust—trust God, trust yourself, and trust others.
- Encourage people to take risks.
- Be consistent with the journey you are on.
“To be a better leader, one must be the kind of person others can trust. That means, consistency, humility, integrity. It means unfailing honesty with people. Treat them as what they are—creations of God.
“For example, I make it a point to spend some time with every person-who joins the company. These are folks who work 8 hours a day at DACOR, yet they also spend 16 hours of their lives as mothers, fathers, sisters, and/or brothers. They face challenges of life outside DACOR. To be better leaders, we need to respect the people that we are privileged to lead. It is the principle of servant leadership.
“I also believe it is important to decide to develop a different kind of company, connect with people on a different level, and be perceived as a different company in the marketplace and by your employees.”