To Honor God: DACOR's Pursuit of Corporate Virtue
Monograph by De Pree Leadership Center with Work Research Foundation
an excerpt
“In many ways, DACOR fits the stereotype of the American corporate success story: a small company with a unique product, a leadership driven by the will to survive and grow, some initial success followed by lean years, then the 'turn around' as the company becomes a leader in its field.
DACOR's story, however, is not simply about success, or 'making the big bucks.' DACOR is a business; it makes a quality product and customers are willing to pay for the value of its appliances. That quality is as much a matter of pride as it is a matter of making a profit. The company believes in its principles of respecting associates, dealers, suppliers and customers. It operates with integrity. And it has a history of courageous innovation. We've heard from more than one sales person that they don't spend all their time on the road or in the store just to make a lot of money. They love the process of business itself — selling, increasing market share, being the company people turn to when they need a certain product. The associates on the shop floor find satisfaction in crafting a distinctive and well-built range, ventilation system, or outdoor grill. Stanley Joseph reflected this when he wrote:
I will always believe that people will prefer a good value to a low prince. The cheapest price is not always the best buy. Knowing your product thoroughly will enable you to transmit its values and benefits to your customer. If the subject of price-versus-value seems to be a problem with your customer, compare it to something he can readily understand. The difference in price between DACOR and Brand X is no more than one would pay for a dinner for four at a good restaurant.
But value on the outside reflects values on the inside, and that relationship has been one of Mike's central concerns. How do you build a corporate culture of excellence? When you are a small family firm, quality control and customer service are easier to maintain. The quality of the business depends on the character of the operators. As a company grows, maintaining standards becomes a more difficult issue: the owner cannot be at all places at once. A corporate hierarchy develops and becomes increasingly complex. Not everyone has a vision for the company as a whole. Some do have a strong sense of direction for the company — but the destination may be different than the owner intended. The challenge is building a coherent culture of excellence shared by the line operators to the management.
In 1992, this was the problem confronting Mike and Tony. 'It was a really fragmented company back then,' they told us. 'You would have found people on the floor, just trying to get through the day, doing as well as they can, not getting laid off, hoping to have another day. This is a problem that starts with leadership.”
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