Dawn Halfaker - The Persistent Patriot
When Dawn Halfaker first opened her eyes in the sterile hospital room, she was stunned. She let her shaken memory sift through what had transpired. A Captain in the United States Army, she had been deployed to Iraq five months before. Her platoon had been assigned to live and work in the city of Bacuba, where they had participated in raids, patrols, reconnaissance missions, forced protection, convoy escorts, and police training. One of her patrols had been ambushed, and a firefight ensued. When her vehicle was hit with a rocket-propelled grenade, the shrapnel had splintered through her right shoulder, and that’s where the memories stopped. In her comatose state, she had not been awake to see the helicopter airlift her from the scene. She had been unconscious for the trip back to Washington, DC, and she had been unconscious during the amputation of her arm. When Dawn awoke in that hospital room, she knew her life would never be the same. She was twenty-four years old.
The road to recovery was not an easy one for Dawn, and her progress was further frustrated by the inevitable sense of denial that swept over her. Unable to see past her current condition, she would try to pretend it hadn’t happened. The young woman suffered from a profound sorrow until one day, when her physical therapist led her down to a room where several soldiers were undergoing rehabilitation for their injuries. The first person she saw was a staff sergeant who had lost both his legs and had suffered severe facial burns. As the man wobbled hopefully on his new prosthetic legs, his wife and children chanted, “Go, daddy, go!” From that moment on, Dawn’s perspective changed completely. “I learned that I was really lucky for what I had and shouldn’t be dwelling on what I didn’t have, and I got really focused on my future,” she says.
Six years later, one would hardly imagine that the intelligent, poised, and successful young woman had ever had a moment of self-doubt. After the incident, she knew she wanted to maintain her strong military connection, especially the leadership aspects of her position. After attending several job interviews where nothing really clicked for her, she happened to meet an army colonel who had just started working with the Defense Advanced Research Projects Agency (DARPA) and needed a research program manager. He was looking for someone with recent combat experience who could envision the potential for research to save lives by leveraging technology on the battlefield.
Taken with this man’s inspiration and passion to aid war fighters, she worked in a consultant capacity for him as she gained experience and developed a company of her own, which began to take form in January of 2006. Drawing on her unique skill set and nuanced knowledge of the national security community, she served on DARPA contracts investigating new strategies and materials that could be developed, commercialized and deployed to the armed forces to strengthen national security. She worked on these projects for two years while building Halfaker & Associates in the background and also attending Georgetown University at night to receive her Masters in International Security. The U.S. had undergone “a very transformative era throughout the last decade,” Dawn reports, “and I felt that I had unlimited potential to contribute in different areas.”
As Dawn took on sub-contracts with DARPA, she hired people with similar backgrounds and experiences—namely veterans hoping to continue serving the mission who possessed valuable skill sets. In this way, Halfaker and Associates continued on a track of organic growth through the end of 2007, when it began winning larger contracts and adding critical mass to its staff. The company developed departments for human resources and finance, gaining a self-awareness that was strategic rather than tactical.
While Halfaker & Associates originally focused on national security policy, homeland security, and defense solutions business unit, it has since branched off into program management, consulting, PMO support, acquisitions support, IT solutions, and software development and integration. Though they have diversified their revenue streams, the majority of their business still comes from U.S. military contracts. It makes sense, then, that the company remains very mission-driven. In fact, the mission element of their service model accounts for much of their uniqueness as a company. “Personally, this company is a vehicle for affecting change in areas where I’ve been passionate,” she says. “It is powerful that we can address an issue.” From a business perspective, they have established themselves as a trusted partner to their clients through this mission-orientation, allowing them to invest in these clients both personally and professionally. Through sharing a common mission and vision with their clients, Halfaker & Associates is able to offer outstanding and highly-responsive service that tailors solutions to best fit the needs of each individual client. It is a partnership mindset and service model that larger companies cannot offer, allowing them to stand out amidst their competition.
Looking back at her business’s evolution, Dawn points out that little things happen all along the way that cumulatively define the journey. She can, however, put her finger on one notable turning point for the company—a time when it was enjoying success and growth, but without a means to advance to the “next level.” As she reports, “developing a long-term strategic plan turned us into a real business overnight.” When the fledgling group won a considerably hefty contract with the US Army Recruiting Command, they were forced to put infrastructure in place. In the end, they had over fifty employees on the contract, successfully supporting the mission and recruiting soldiers to enter the military. It was indisputable that Halfaker & Associates had come of age, truly developing into a notable force in its field.
Because Dawn embarked upon her professional journey at such young age, she relied upon the mentorship of several key individuals to make up for the business and consulting background that she lacked at the time Halfaker & Associates was started. “Sometimes it takes people looking in from the outside to see what the possibilities are,” she remarks. She would advise a young entrepreneur to identify their mentors early on—individuals who have your best interest at heart and can answer the “dumb questions” to help you understand how to leverage what you have and what is possible. Now that the company has been operational for four years, she’s looking inward at herself and how she can repay the favor by advising and mentoring others. Focusing her energies on wounded veterans transitioning out of the military, she now knows what questions to ask to help people identify their own unique paths in life.
Consequently, one other defining aspect of Halfaker & Associates that renders it so unique is the fact that it is a service-disabled veterans company, with over 70% of its employee-base comprised of veterans. More specifically, they are part of the Wounded Warrior Hiring Program, setting aside jobs for injured veterans and working to train, mentor, and develop those individuals to assume careers with the sense of purpose that so many of them lost when they left the service. “That was what was so hard for me,” Dawn reflects, referring to the mission-orientation she lost when she was force to resign from the military. The company was a means for Dawn to regain her footing in a new life following her injury, and her efforts in turn now provide similar opportunities to people facing the same obstacles.
Dawn’s current responsibilities at Halfaker & Associates include, first and foremost, the long-term success and strategic growth of the company. By laying out the path to success and honing the primary goals of the enterprise, she aims to set the gears in motion so that her employees can, in turn, act. She also identifies the responsibility she wields for the lives of others—a duty which she takes with the utmost seriousness. To Dawn, running a company is so much more than making sure the nuts and bolts are in place. More importantly, it is ensuring that her employees are receiving the tools they need to be successful and to reach their goals. Additionally, Dawn is constantly considering the company’s role in the community. Through her service on the advisory boards of a number of nonprofit organizations, she extends the boundaries of both the company and of herself.
Reflecting back upon the past several years, Dawn is most proud of the team she’s assembled. “They can do anything,” she marvels, “and that is a powerful thing. Whether it’s focusing on Wounded Warrior, or a charitable event, or getting a proposal out the door, they will get it done.” To achieve this level of success, she warns young entrepreneurs against a mentality of finality. As people enter the workforce, they tend to believe that their entire lives will be locked into the first field they go into. This mindset is misleading and can often be paralyzing. “Just go for it,” she advises. “Take risks. Take chances. This will eventually lead to the path that was meant for you.” If one never goes out on a limb, one never discovers their talents, preferences, and passions. This process of self-discovery coupled with hard work and determination go hand-in-hand with Dawn’s leadership philosophy, which is focused around constant learning and evolution. Not only does this involve the acquisition of wisdom and knowledge, but also learning about your teammates. “Whether it’s a combat mission or a business mission, you must look to people,” she says. “Treat them well, know them well, know their strengths, and know how to pull the best out of them.” When it comes to passion for the mission, it is readily apparent that Dawn’s enthusiasm and commitment are representative of her entire team’s sentiments. “They know it’s more than just a job; more than just getting a paycheck,” Dawn confirms. Indeed, it is a cause, a vision, and a lifestyle that truly unites her team in mission and purpose, allowing for a degree of commitment to their clients’ success that is as sincere as it is rare and as powerful as it is poignant.
For additional information about this profile and case study, please contact:
Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
Bernhardt Wealth Management, Inc.
2010 Corporate Ridge, Suite 210
McLean, Virginia 22102
(703) 356-4380
www.BernhardtWealth.com
Joseph Gargiulo - Family Focus with a National Presence
When the folks of Goshen, New York, had a question about hardware, they knew they could trust the young boy working at the local store to serve them with enthusiasm and savoir faire. Joseph Gargiulo had, after all, started working for his father at age seven, helping customers find what they were looking for and keeping the shelves of Goshen Hardware stocked and tidy. Over the years, he observed his father eagerly and absorbed valuable knowledge about everything from plumbing, to electrical work, to paint mixing, to customer service. Joe’s father had gotten into the hardware industry to help support his Father-in-law’s burgeoning family business, Stuart Dean—a building restoration and maintenance company founded by Joe’s grandfather, Edward J. Degan. Now the executive vice president of Stuart Dean and the division president of the mid-Atlantic region, Joe still considers his time at the hardware store as his greatest education, using the service skills he learned as a boy to attain success today.
“Actually, I originally didn’t want to work for Stuart Dean,” Joe admits. When he graduated from Boston College in 1977 with a BS in Accounting and Marketing, he moved to Chicago and worked for several large enterprises that ultimately left him feeling unfulfilled and immaterial. His brother, John, headed up Stuart Dean’s Chicago office at the time and approached him in 1980, posing what Joe refers to as “an offer I couldn’t refuse.” The young professional would have to work significantly longer hours at significantly reduced pay as a salesman, but there would be opportunity to have an immediate impact in his work. Realizing that Stuart Dean was a part of his very blood and heritage, Joe recognized the ambition stirring in his soul and accepted the offer. He excelled as a salesman and was promoted to sales manager in 1984. He directed his small sales crew until 1986, when he was offered the opportunity to open a new office in either Dallas, Texas, or Washington, DC. “DC was a sleepy town, and real estate hadn’t been discovered yet,” Joe remembers. Submitting his proposal for the DC Metro Area location proved to be the best decision he ever made. With its respectable and stable rates, DC has since advanced as one of the most desirable real estate markets in the world, and Joe’s office is now the largest and most successful division of the company.
In many ways, Joe’s personal history resembles a microcosm of the family company’s overall evolution to date. Just as it can sometimes take a single idea to change the course of a lifetime, it can take a single idea to transform an industry. Yet, as Joe’s grandfather demonstrated, this may not be the first idea that comes along. In fact, it took six failed business attempts within a span of ten years before Edward Degan finally founded Stuart Dean in New York City in 1932. The fledgling company served as the sole distributor and applicator of Dupont Synthetic, the first clear synthetic lacquer coating designed to prevent architectural metals—specifically brass—from oxidizing. Later realizing the value in the product, the Dupont Corporation approached Edward in 1934 asking to buy the exclusivity rights. Ed, however, readily signed over the rights without accepting compensation, an act of integrity that would later reward him in spades when the lacquer became a war good during World War II. Though it was taken off the market during that time and distributed solely to the military for use on brass casement shells, a drum of lacquer would appear on Stuart Dean’s doorstep each month, ultimately enabling the company to stay in operation. When Ed passed away in 1954, Joe’s four uncles—Gene, Gerry, Jack, and George—assumed leadership of the company and tested the waters of expansion by opening new offices in LA in 1963 and Chicago in 1969. Another dimension of service offerings was added as well, and as is the case with so many businesses, diversification spelled big returns for Stuart Dean. Until the 1960s, they had focused solely on metal refinishing, building a reputation of excellence through mastery of a narrow specialty. They noted, however, that the buildings they worked on had marble floors and walls. Thus, evolving into architectural stone maintenance and restoration was a natural progression for Stuart Dean. They became the largest provider of architectural stone maintenance throughout the next thirty years, concentrating in granite, marble, terrazzo, and exterior limestone. Then, in the 1990s, architectural wood was added to the repertoire, as well as architectural glass and the curtain systems used to protect building exteriors. With a service portfolio that provides comprehensive attention to the various finishes of a building’s interior and exterior, clients can now rely on Stuart Dean to cover all aspects of a project without having to coordinate multiple contractors.
As time passes, Stuart Dean has also aimed to operate less like a family business and more like a corporation. Though all forty-plus of its stockholders remain family members and all but two of its CEOs have been within the family, it has expanded to approximately 650 employees worldwide and retains three (out of nine) non-family board members from outside industries. Joe recognizes the value of outside leadership and remains committed to incorporating it. The company culture prohibits a sense of entitlement, and decisions are always made in the best interest of the company as a whole. Consequently, Stuart Dean strikes a unique and highly appealing balance. They have successfully taken the personality of a mom-and-pop style small business and translated it to a national scale. With offices in the top twenty real estate markets in North America, they are equipped to offer on-site and personalized service to large clients nationwide. While Joe hopes to establish more uniform procedures to render their services consistent across offices, their national presence remains a great credit to Stuart Dean’s staying power.
Joe’s division, then, is perhaps the quintessence of this staying power. The Mid-Atlantic office is currently about eighty-five employees strong and does approximately $10 million in revenue annually. Joe remains active in the day-to-day operations of the office and also oversees the operations of the Florida office, which has about thirty employees. “This is what I do best,” he says, referring to his current daily duties. In addition to fulfilling the various roles of financial overseer, personnel manager, and policy collaborator, Joe is still out in the field on a regular basis, making sales and monitoring on-site progress to ensure that the company’s vision and quality assurance are maintained. When asked why he hasn’t become CEO yet, he cites his aptitude and preference for the small business mentality and the close relationships it allows him to develop with employees and clients. Recognizing the importance of his brother John as a mentor and role model, he uses his own relationships with staff as opportunities to pass on wisdom and guidance in a similar fashion, exhibiting sincere interest in the lives and careers of his employees.
In developing these mentoring relationships and dispensing advice to young entrepreneurs just entering the workforce, Joe focuses more on character development tips rather than employment instruction. “Don’t be too concerned about getting the perfect job, because the chances of you staying in that profession are miniscule,” he counsels. His words are sure to assuage the fears of anyone entering the job market during these sub-optimal economic conditions. The focal point at such a juncture should instead be the cultivation of one’s moral character and relational skills. “You must deal with people properly and ethically no matter what industry you enter,” says Joe. Learn how to deal with difficult individuals by disarming them with kindness, and practice treating others how you would wish to be treated. This advice fits hand-in-hand with what Joe reports as his greatest professional challenge, which is personnel management. He indicates that it’s hard to find individuals who are driven to do the right thing regardless of short-term interest. Young entrepreneurs who exhibit this strength of character are thus highly sought-after and will enjoy more success than they would otherwise.
Strength of character is even so important as to overshadow more traditional measure of intelligence in some cases. “My number one management philosophy is hiring good, smart, hardworking people,” Joe explains. “I manage by feel more than numbers.” Because the industry is so hands-on and relies heavily upon relational skills in addition to a strong knowledge base, he truly believes that effort can be the key ingredient to success. Even if one didn’t get the top grades in school, there is a future for that person if the right effort is leveraged.
In reflecting back upon the road that led him here and in considering what the future holds for Stuart Dean, Joe’s focus remains not on the success he has enjoyed but rather on the people and presences in his life that have influenced his career—and ultimately his life path—most profoundly. These are not grandiose figures of fame and history, but rather the common figures that occupy his everyday life. “I’m a faith-based person, so the Good Lord has taken good care of me,” he says. He also speaks with a genteel and sincere warmth of his wife, older brother, and parents, recognizing that each has provided valuable skills and support. In a business that has flourished and expanded so far from its roots, its good to know that, for both Joe and Stuart Dean as a whole, the element of family continues to thrive as strongly as the company it created.
For additional information about this profile and case study, please contact:
Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
Bernhardt Wealth Management, Inc.
2010 Corporate Ridge, Suite 210
McLean, Virginia 22102
(703) 356-4380
www.BernhardtWealth.com
Richard Toren: The Art (and heart) of Invention
By: Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
When he’s out on the green after a long week at work, Richard Toren isn’t exactly switching gears. Though there is arguably a clear distinction between his role as President and Chairman of the Board for CodeRyte and his role as a golfer amidst the tranquility of the course, the philosophies at work—or play—are much the same. Both environments are shaped by competition, and both are reliant upon character traits like patience, focus, and a strong drive in order to sink the ball in the hole. And, while golf may differ from business in its margin for ethical error, one must ultimately answer to either the spectators or to oneself. If you employ golf ethics within your business practice, refusing to cut corners and exhibiting honesty and integrity in your endeavors, you’re on the track for birdie over bogey, as Rick’s ideology dictates.
This system of unassuming tenacity and firm ethics has been a part of Rick’s life since early childhood. Even at such a young age, he held the concept of independence to be paramount and worked to raise money mowing lawns and shoveling snow in elementary school. His entrepreneurial flare shone first as he orchestrated a small lawn mowing business to maximize profitability, and again later in college when he started a small franchise that installed and managed pinball machines in the frat houses of Penn State. This business, his first sale, went for $10,000 when he graduated.
Rick’s road to CodeRyte, his current enterprise, has been an ever-escalating series of luck and proactivity. He found himself fresh out of college in the midst of the Vietnam War, barred from service due to a basketball injury to the knee. It was an era saturated with an inimitable air of sorrow and opportunity. With a father in dentistry and an older brother in cardiology, he had always been drawn to the healthcare field but possessed an innovative, solutions-oriented, persuasive edge that seemed to suggest there was something more in the cards for him than his premed pursuit. Upon graduating, he went to work for American Hospice Supply in Chicago selling IV solutions, which equipped him with sales skills as well as a nuanced understanding of hospital culture. It was there that he first exercised what many would term his greatest gift—the ability to turn pain into progress. Observing the ineffective protocol for administering nutrition intravenously to sick children, he proposed a reformed procedure that resulted in the organization’s most profitable product. Then, confronted with an opportunity to move to the DC area to work for a small start-up company developing injection technology, Rick promptly dropped out of graduate school and joined forces with Survival Technology Inc.
The very definition of a serial entrepreneur, Rick has started five separate companies since those early days of his career. Through an array of ups and downs saturated with risk and reward, the majority of these ventures have proven wildly successful. CodeRyte, established by Rick in 1999 after a brief year-long stint as a retiree, was among them, and was actually launched simultaneously with two other businesses. Realizing the breadth of his obligation, he hired Andy Kapit to serve as CEO of CodeRyte throughout its early years as he focused on developing EMedics, which eventually merged with Active Health and was sold to AETNA in 2004 for $400 million. Since then, he has focused the majority of his time at CodeRyte.
Though considerably sophisticated in its details, the concept behind the company is exceedingly straightforward in its logic. It serves to fill the gap between physician services and physician billing. Billing, in the medical field, is reported through a network of codes, and because doctors prioritize their medical obligations, they often misreport these codes when detailing their services to insurance companies. The technology employed here is not only unique, but also translatable across fields. Codes might be used, for example, to identify and correct medical mistakes or malpractice. At this point, the possibilities are endless.
In breaking Rick’s evident success into its component parts, a primary element can be identified in the words of his favorite mantra: good ideas are a dime a dozen—it’s the execution that makes all the difference. Believing wholeheartedly in the truth to this proverb, Rick spends several hours each week mentoring for the Network for Teaching Entrepreneurship (NFTE), an organization committed to helping youth in low-income communities unleash their creativity and entrepreneurial potential. As he would advise any young person at the brink of entering the workforce, he teaches his mentees about the importance of follow through with your intentions—an outcome best achieved through conceptualization proceeded by implementation. When struck with an idea, he advises, try to project what life would look and feel like once it is executed. Determine whether the idea will add value, meaning, and happiness to your life once it has reached fruition. Develop strategies in advance and engage others in debate. And most importantly, develop poise and a strong comfort level with public speaking so that your idea can truly be heard.
Looking at his group of high school mentees as a microcosm reflection of his workplace, one can imagine that the relationship he holds with staff is one of mutual respect and development. Considered an ennabler by those who know him, he strives to lead by example in terms of energy and dedication. One finds it harder, however, to categorize him as primarily detail-oriented or more of a big-picture leader. While his innovative background accentuates his fine-slicer tendencies, his credible forward-thinking and his all-encompassing grasp of the processes at work speak to his broad perspective. It is this unique pairing of traits that he credits for his own success, and it is likewise this unique pairing of traits that he hopes to see in the younger workforce.
In addition to the strong emphasis on follow-through, the other trait most boldly pronounced through Rick’s success is the very personal and heartfelt spin he has invested in so many of his innovations. When the general population is faced with obstacles in life, we are apt to search for the best possible solution given the available options. What happens, however, if the available options aren’t good enough? Well, if you’re Richard Toren, you invent new ones. This has always been his philosophy, and his life’s work has thus become the embodiment of that first instance where the inadequacy of intravenous nutrition spurred him to develop an entirely new product for malnourished children.
Nowhere is this ability to transform pain into progress better exemplified than in the story of his youngest daughter, who suffers from severe allergic reactions to bee stings. In the 1970s, there was no product specifically designed to be self-administered if a hypersensitive individual was stung, so Rick came up with the EpiPen and worked closely with engineers to develop the device. This combination of innovation and heart closely parallels an earlier incident in which one of his newborn children was placed in intensive care and monitored with an EKG. Rick observed that the electrodes used in this process would tear the fragile skin of the newborns, so he used a new carbon-impregnated plastic material to create a glue-free electrode that was gentle and pain-free.
Whether he is solving the acute pain of a loved one or the more generalized pain of medical coding inefficiencies, the ability to target and solve such ailments speaks to a vein of empathy and humanity that is rarely so manifest. We are all taught lessons of humility and heart at different times in our lives and by different teachers; for Rick, the teacher was his own son. When the boy finally lost a ten-year battle to brain cancer in 1990, Rick was left with unparalleled despair but also the greatest lesson anyone could communicate—one that resounds the power of courage, strength, fighting spirit, and human relationships. It was the very epitome of the big picture that so many of us tend to lose sight of, and it is an experience that touches Rick on all levels—personal, professional, and otherwise.
When talking business with Rick Toren, one might easily be intimidated by the plethora of technical knowledge and medical terminology peppering the recounts of his exploits. At once an expert salesman, healthcare administration expert, inventor, and entrepreneur, he is the very definition of a modern Renaissance man and exhibits extraordinary expertise across these fields. His underlying philosophy, however, is elegant in its simplicity and applicable to anyone, regardless of their age or profession. When you make up your mind to take a shot at something, no amount of practice swings will get you there. It’s only when you commit to the stroke and make contact with the ball that you have any chance at success. Sometimes the goal is achieved and sometimes it isn’t, but as long as we are honest with ourselves and honor the rules of the game, we can draw support and inspiration from our family, friends, and mentors. So work hard, play smart, and most importantly, add heart.
For additional information about this profile and case study, please contact:
Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
Bernhardt Wealth Management, Inc.
2010 Corporate Ridge, Suite 210
McLean, Virginia 22102
(703) 356-4380
www.BernhardtWealth.com
Todd Chamberlin: Leading Innovation through Family Focus
By: Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
Struck by a sudden sense of ardent realization, Todd Chamberlin stopped rifling through his father’s effects and paused with his hand on the old photograph. He could almost smell the sweat that would soak his shirt after a long day of hard labor under a hot summer sun; could again feel that sense of fulfillment from seeing the look on a customer’s face when he’d exceeded their expectations. Even in his first job mowing lawns at age twelve, Todd had always earned generous praise from clients. His father, however, had been a different story. A man with unparalleled work ethic and tight-lipped sternness, Ashby Chamberlin was not apt to dispense expressions of praise or pride despite his son’s best efforts. Even after assuming presidency of Kenwood Golf and Country Club in 2005, he still found himself wondering at times if he was living up to his father’s unspoken expectations. But here, staring at the photograph that Ashby had kept of the young boy on a bicycle trailing his lawn mower behind him, Todd felt a whole history of commendation wash over him.
If there’s one thing that makes Kenwood unique amongst its peers, it’s the theme of family that so thoroughly permeates its nature and philosophy. Established in 1928 in Bethesda, Maryland, the 108-acre property became an heirloom of the Chamberlin family in the 1950s when Donal Chamberlin split ways with his business partners and acquired sole ownership of the club. His son, Ashby Chamberlin, got involved with the club at age 26. Todd, coincidentally, also began working at the club at age 26, gaining ample expertise and knowledge to assume the presidency in succession. Now, five years later, he has expanded his family’s legacy into a state-of-the-art facility poised at the forefront of its industry. And, if you were to speak with Todd about his aspirations for the future, you’d find he’s just getting started.
Not only is Kenwood the only family-owned country club in the area, but its entire business model is oriented around family. While clubs have historically tended to discourage the presence of children and have fostered a “boy’s club” atmosphere, the country club landscape is shifting toward more family-friendly practices, and Kenwood appears to be ahead of the trend. Its emphasis on children is reflected in the various activities, events, and seasonal camps offered by the club, as well as by the welcoming and tolerant attitude of the staff and members. Kenwood has positioned itself as a place where families can spend quality time together, and the vision has paid off tremendously through the satisfaction of its membership, which holds at around sixteen hundred.
While the theme of family has remained pervasive throughout Kenwood’s history, Todd’s management philosophy has initiated a new era for the club. Whereas Ashby Chamberlin’s method tended toward the preservation and maintenance of the club’s unique charm, Todd hoped to offer new and innovative amenities to its members and redesigned its budget such that initiation fees were used for improvements rather than subsidization. The centerpiece of this visionary and disciplined approach and of his presidency to date is the club’s extraordinary fitness center, which features a 75-yard swimming pool, full-service spa and locker rooms, group exercise room, childcare facilities, and an eighteen-person Jacuzzi. Serving as a gathering place for family and friends, the fitness center upholds the club’s deepest values while also offering an ideal product in light of the fact that the American College of Sports Medicine has ranked DC as the most health-conscious city in America. Todd credits the fidelity of Kenwood’s membership in spite of the current recession in large part to this feature.
But not just any fitness center could serve as a sticking point for clientele when deciding whether to retain their membership or not. In the early 2000s, companies generally built more conservative fitness centers, which are now the chief complaint of members in today’s club landscape. Had Todd followed this trend, he would now be faced with the need to upgrade a past project instead of focusing on new ones. In planning for the center, he intended to construct a facility that would remain competitive for three or four decades, he reports. So far, this goal has been realized.
So how exactly does one come to acquire this intuitive degree of forward-thinking? Todd argues that it is not bred from intuition at all, but rather from instinct—survival instinct, to be more specific. Even from the time of his lawn mowing ventures, he felt an inner drive toward the achievement of self-sufficiency and independence. He had adopted the tremendous work ethic of his father—a man who, as Todd explains, can still outwork most people even at the age of seventy-two. Compelled by this sense of discipline, he worked hard as a boy and came to understand that his own survival and independence was inextricably linked to his ability to foster truthful and genuine relationships with his customers. Thus, excellent client service was set as a cornerstone of his management philosophy and has proven to be a strong foundation for his role at Kenwood.
Patience and understanding, Todd explains, are the other crucial traits to possess from the time one first enters the workforce. In his early affiliation with the club, he worked in every department, with full years dedicated solely to golf course monitoring, housekeeping, and maintenance, respectively. He views this apprenticeship experience as a fundamental phase in his life in which he absorbed the wisdom and knowledge of those who had come before him. Recognizing that many young people today are not cognizant of this tremendous opportunity to grow through learning from their predecessors, he would advise the next generation to adopt such practices.
Taking the time to learn a business from the bottom up in this fashion also equips a leader with the valuable ability to empathize with employees, as Todd’s situation demonstrates. Maintaining a sincere respect and appreciation for his staff is an important facet of his management philosophy, and it seems that the success of his approach stems from the brand of deep compassion that can only be achieved by having stood in his employees’ shoes in the past. Embracing the old adage to treat others as you would wish to be treated, he strives to maintain a hands-off management approach to give staff members the opportunity to carry out his vision in their own way. When an employee demonstrates hard work and commitment, his praise is sincere, personalized, and specific, underscoring the individual’s effort in detail.
By instilling this quality of sincerity in his relationships with both club members and staff, Todd was able to transcend historical barriers between the two that had, in the past, posed them as adversaries. At the club’s Seventy-Fifth Anniversary, he promised to break down the walls between management and membership to create a unified and cohesive front. With this revolution in climate and attitude, board meetings are no longer sites of conflict. Rather, management and membership are working together to decide what is best for Kenwood as a whole, fostering an atmosphere that is more conducive to innovation and progress than ever before.
Considering his remarkable ability to promote unity within his club and within the families of his community, it comes as a surprise that this great strength also manifests itself as Todd’s greatest challenge—a struggle to separate work life from family life. On one level, Todd’s situation is not unique from that of many other Americans with resource-intensive jobs that demand a considerable amount of time and energy. Like so many of us, he makes a conscious effort to “draw the line” at the end of the workday, liberating himself from frustrations and tensions so that he arrives home happy and ready to greet his wife and children.
On another level, however, Todd faces very individual struggles as a family business owner, in which the “line” between the work sphere and family sphere is often blurred and difficult to define. Working intimately with a family member in business can at once serve as one’s greatest motivation and one’s greatest insecurity, for only those close to our hearts could inspire such perpetual examination of self and practice. In his own experience, Todd utilized the assistance of a personal business coach specializing in family dynamics as a mediator and mentor. While many family businesses fail due to the internal pressures they face, the Chamberlins were able to channel their experience into a creative force that has advanced both their familial ties and their enterprise as a whole.
Reflecting back upon the hallmarks that define Kenwood, the two themes of calculation and risk repeatedly arise and complement one another. If a family business is risky, Todd moderates the stakes through employing the knowledge of an expert coach. If constructing a cutting-edge fitness facility was risky, it was offset by thorough research and analysis of the costs and benefits. It is this combination of calculation and risk that consumes Todd’s days as president of Kenwood. He may no longer be sweating beneath the hot summer sun, but he maintains the same degree of focus and commitment that he had as the young lawn mower in his father’s photograph. Gathering research, experience, and the opinions of members, staff, and specialists, he synthesizes these various pieces of information into comprehensive plans for the future that are ambitious yet plausible. His next brainchild, a project in the works, is the construction of a racket and paddleball facility. One skeptic asked him why he would want to do such a thing when no other club in the area has attempted it. In characteristic fashion, Todd replied, “That’s exactly why.
For additional information about this profile and case study, please contact:
Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®
Bernhardt Wealth Management, Inc.
2010 Corporate Ridge, Suite 210
McLean, Virginia 22102
(703) 356-4380
www.BernhardtWealth.com
Preventing the Snow from Wrecking Havoc on your Business
Yet another day of blizzard conditions. That was a word that was barely uttered in the Washington area in previous winters, yet now it appears to be commonplace. So what actions should one take to proactively combat what there is no denying mother nature? I came across this blog post from Joe Mechlinski, of EntreQuest, a colleague and trusted advisor and I encourage you all to read it. Good, good stuff packed in here (yes, pun intended)…Let us know how you are creating opportunity out of this weather! Click Here
~Kathy Albarado