The names of Stan Gault and the Rubbermaid Corporation
will probably be forever linked because it was Stan who turned
a small housewares company into a billion-dollar powerhouse
that dominated its product categories.
Stan became well known to the national business publications
for the stellar record achieved at Rubbermaid during the 1980s,
his work as Chairman of the National Association of Manufacturers,
and in the 90’s for the dramatic turn-around of the Goodyear Tire
& Rubber Company.
The key members of Focused Management were associated
with Rubbermaid and its chairman during the 1980s.
We were fortunate to be able to watch a business master
at work and be part of this remarkable business success story.
Stan Gault joined Rubbermaid in 1980 after a successful career
at General Electric. He set about to turn this small housewares
company into a corporate powerhouse.
His strategy included:
- Recruiting and hiring high talent people
- Defining and communicating clear objectives
- Growing through acquisitions
- Monitoring and improving employee attitude
- Offering superior product quality
- Aggressively pursuing product development
- Providing outstanding customer service
During the early Gault years, Tom Finley coordinated all
corporate human resources. Stan and Tom hired George M. Hill
and his consulting firm to aid in the transformation of Rubbermaid.
RECRUITING AND SELECTING HIGH TALENT PEOPLE
As soon as Stan arrived at Rubbermaid he immediately reached
back to General Electric and hired several exceptionally talented
executives to work with him. However, the tremendous expansion
at Rubbermaid required Stan to start recruiting on a national scale.
Stan was legendary for maintaining exceptionally talented but very
lean staffs. He was not one to throw money or people at a problem
but rather to obtain the best talent available and let them deal
with the challenges. In response, Ted Hill was responsible
for creating one of the most sophisticated screening and selection
systems in the country.
Dan Averbeck of Applied Assessments designed exceptionally
effective screening batteries for executives, middle managers, and
supervisors. These screening batteries were so effective that
screening systems were extended to all levels of the organization.
Dan Averbeck and Ted Hill developed screening and selection
systems for technical and hourly personnel that enabled
Rubbermaid to identify hard-to-find technical personnel and saved
over a million dollars a year in hourly workers’ compensation costs.
DEFINING AND COMMUNICATING CLEAR OBJECTIVES
Stan Gault taught us how important it is for the top corporate
leaders to articulate corporate goals, objectives, and priorities.
He would visit every plant on a quarterly basis to explain where
the company was going in the future and report the current results.
GROWTH THROUGH ACQUISITIONS
During the 1980’s, Rubbermaid acquired several companies
including Little Tikes Toys. In the early stages of integrating
an acquisition, George Hill and Tom Finley were often involved
in the transition process. Later Dan Averbeck and Ted Hill
would implement employee selection systems, and then
Ted would put technical training programs into place.
Depending upon the needs of the new acquisitions, they would
often reach for outside resources for training and development
such as those provided by George M. Hill & Associates.
One of Stan's communicated goals was to become a billion-dollar
operation in ten years. The goal was achieved in seven years;
and at the end of ten years, Rubbermaid was close to being
a two billion-dollar in sales company.
PROVIDING OUTSTANDING CUSTOMER SERVICE
As RUBBERMAID expanded sales and products, it added new
manufacturing and distribution centers. From eight locations,
the company expanded to a peak of twenty-six physical locations.
Ted Hill, George Hill, and other Focused Management authors
were involved in some part of this rapid expansion.
MONITORING AND IMPROVING EMPLOYEE ATTITUDE
Stan Gault believed in producing high-quality products
and being responsive to customer needs. He knew that only
well-motivated employees would produce the level of quality
and service that he expected Rubbermaid to deliver.
Therefore, one of his first moves as CEO was to request
Tom Finley, George Hill, and Ted Hill to conduct extensive
employee attitude surveys that covered hourly employees
through executive management.
The survey results were reported to all personnel and were
used to identify areas for improvement. During the 1980’s
and '90’s, Rubbermaid went through several survey cycles.
When areas for improvement were identified on the human side
of the organization, improvement teams were often formed that
included Tom Finley, Ted Hill, Dan Averbeck, and George Hill.
A result of its concern for people, Rubbermaid became
the premier place to work in the communities surrounding
its manufacturing facilities.
APPLYING THE LESSONS OF RUBBERMAID
The authors of the Focused Management Leadership Strategy were fortunate to serve with a business leader such as Stan Gault
and to have been part of the outstanding success of Rubbermaid
from 1980 to 1992.
For the period of 1985-1994, the FORTUNE magazine survey
of 8,000 business executives declared Rubbermaid among
the top ten Most Admired Corporations in the United States.
The Focused Management Leadership Strategy and Management
Model will provide you the knowledge and skills to apply the
principles to your organization that made Rubbermaid so
successful. |