THE RUBBERMAID STORY
the 80’s

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:
  1. Recruiting and hiring high talent people
  2. Defining and communicating clear objectives
  3. Growing through acquisitions
  4. Monitoring and improving employee attitude
  5. Offering superior product quality
  6. Aggressively pursuing product development
  7. 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.