Of the few who survive long enough to become successful, less than a quarter of them make a successful transition to the second generation.
As CEO of The Working Person's Store, Eric Deniger is doing just that. Eric's leadership style illustrates what's critical in a 21st century business leader who is also a second-generation success story.
The Working Person's Store was established in 1995 with the sole mission of serving working people with a broad selection of work clothing, footwear, safety gear and accessories.
Customers can purchase items at its flagship store in Lakeville, Indiana, its Industrial Shoe Mobile Division that visits area workplaces, and through its award-winning website.
Steve Antisdel, COO, characterizes Deniger as, "a strong leader that's created a culture of performance at The Working Person's Store." He further adds that Eric balances his staff's accountability in providing superior customer service with "genuine personal concern for the entire staff". They come to him because they know he cares."
"In the 21st Century, more and more organizational leaders have come to understand that happy, respected employees, empowered by their managers to meet and exceed customer expectations, provide the best service and feel more personally fulfilled by their work," comments Henry Barbey, director of the Center for Coaching and co-founder of Strategic Conversations".
In fact, Deniger remembered to thank his staff when his Michigan-based e-commerce division was honored as one of the "Michigan 50 Companies to Watch."
At the awards program, Deniger stated, "This is an honor I'm proud to share with every member of our team. They did a great job of providing truly outstanding customer service, while helping us grow our e-commerce business by nearly 500% in 2005."
The "Michigan 50 Companies to Watch" competition is geared toward recognizing second-stage companies. Criteria for judging are in part based on exceptional entrepreneurial leadership leading to growth.
When it comes to daily decision-making, Deniger's approach is to "give everybody a voice."
Bypassing formal meetings, he receives input from everyone involved, and then incorporates the common threads into the company's action plan.
"Listening, really focusing on employee input by giving the staff member your full attention when you ask an employee for his or her thoughts regarding an issue, summarizing what you think that person said to make sure that you have accurate information, thanking the person and incorporating the feedback into your decision-making will make the employee understand his or her value to you and the organization," notes Barbey. "This process exemplifies a Strategic Conversation and Deniger naturally uses this tool every day."
And as far as strategic planning goes, it's a corporate version of natural selection theory. Says Deniger, "The single source of our success in my opinion, [has been] maintaining our DNA and purging that which does not fit," and, "One day you don't wake up and decide that you're going to have a good company. You have a good company from the beginning."
Since everyone is cross-trained, Deniger welcomes employees to switch jobs if they are not happy. He not only believes his employees should come to work feeling comfortable about who they are going to see and what they are going to do, but he backs it up in action.
As the number of staff continues to rapidly multiply as it did a year ago (from 8 to 60), Deniger is confident the corporate culture will be maintained.
Speaking from his personal experience with fast employee growth thus far, he shares the company's success: "We foster our DNA and we mentor our DNA. We cultivate it, we protect it, and it has prevailed. And I feel confident that we'll be able to scale it 80 to 100 people this fall and be in good stead."
So where does a leader like Deniger turn to for advice? It seems his most trusted source is his father, The Working Person's Store founder, Dennis Deniger, whom he listens to carefully.
And he also listens to what his partners at North Main Ventures have to say. "They've been there [developing an Internet presence and retail sales space]; they're willing to take the risk."
Deniger hastens to point out that in matters of business, "It doesn't matter who's wrong or right. What matters is what is right."
As is the case with many 21st century business leaders, Deniger's biggest challenge today is implementing better technology, so his employees need to not work as hard. "We need to work smarter. And that's our number one objective right now."
A close look at Deniger reveals he has stepped away from the non-personal, results-at-any-cost business attitudes of past company leaders. His leadership style is a perfect example of the right mix for a 21st century business leader.
He is personal and accessible, and he cares about his staff. He gives his employees a voice, guides the work culture to respect the foundation that has brought success in the past, focuses on working smarter not harder - striving to utilize the best technology and staff knowledge available to The Working Person's Store.
The success of his leadership style speaks for itself. By 2005, the company had 10 years of unbroken growth with an average of about 20 percent growth annually. And the future promises to be rosy as well!
Blanchard's Situational Leadership Model
If you wondered about this lately, you're not alone. Executives in board rooms all across the country are asking the same question. "Are the tried and tested leadership techniques failing? Should we show solidarity and hold course, or should we show flexibility and adaptability by reacting and changing our leadership methods?"
There are respectable arguments on both sides, and we will examine in this article. It's important to first understand however, that due to highly subjective nature of leadership, that many other arguments exist out there that I haven't included in this short article, and so this work in no way calls itself comprehensive! Why, you would probably need a team of 100 experts to conduct a several year research project to officially and accurately gauge the national attitude torwards leadership in all levels of business.
Old Leadership Methods Will See Us Through.
There are many reasons to suggest that the idea of sticking with old techniques may have merits.
Great leadership characteristics include solidarity, consistency, confidence, and determination. All 4 of these traits suggest that continuing upon a wise path would actually bring benefits in terms of influence and leadership. To hesitate, or make a U turn on such an important issue undermines your leadership and subsequently, your influence.
Also, old leadership techniques such as the democratic or bureaucratic leadership models have survived for decades, and have lived through recession before. Although admittedly economists are calling this financial crisis 'the worst since the great depression'.
Classic models such as the autocratic method, which still thrive in high-pressure work environments such as journalism and entertainment, will very likely weather this storm. In these industries - managers need to retain an extremely tight grip on creative talent, to protect the company from watchdogs and negative public reaction, as shown by several recent scandals. Therefore classic leadership models are certainly still alive in several industries.
New Leadership Models Are Needed.
In the other corner, proponents of new leadership techniques that are more appropriate for the new age of this global economy argue that outdated techniques will hold back a company just like an outdated production technique. Staying on course, they argue, is simply like staying on board the titanic. And only by jumping off the ship and changing direction, can one change the dark fate of a company right around.
New leadership models that focus on employee empowerment, leadership 'teasers' and democratic decision making will face their first real test in the coming years. Leadership models may work perfectly fine during a boom, but are never severely tested until jobs become at risk and staff members become stressed and desperate. Only in extreme work environments such as those, will a model truely be able to prove itself.
I emplore you to continue the debate, and look into the many different leadership models that different managers subscribe to in the modern day!
Both Wayne Messick & Simon Oates are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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