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Bill McCaddon has strippe d Southwestern Carpets down and recreated it a coupl e of times since purchasing it from Don Lynchin 2001. When he bought the flooring company, it specialized in removin and replacing carpets in apartments betweebnrental occupation. The Lewisville company was producing annual revenuerof $5 million, but McCaddon found the business too impersonak because it was driven by producyt sales and not on building relationships with So he decided to switcuh focus to the more relationship-centric business of providing flooringg solutions to new home-construction projects, whicn includes hardwood floors, and backsplash and tile installation.
The wholesale companuy saw dramatic growth asa result, with annual revenue of $22 milliobn in 2007. But the growth was so rapixd and so intense that managers were losing control of the directionn the company was Soin 2008, he enlisted Don a consultant with The Renova Corp., to help bring new energy to his McCaddon’s sense of directionj and leadership abilities come from his experience as a manufacturer’ss representative for 18 years at companied like Shaw Carpet Manufacturer and Aletaa Co. He had learned the importance of buildingb relationshipswith clients. “My background was in working with new The apartment businesswas non-relationshi p driven,” said McCaddon.
“I didn’ty know how to build a businessthat wasn’tr relational.” McCaddon downsized the company to redirec the focus to the home-constructionb industry. He was met with resistancde fromhis employees. “I realized that usingt the sameemployees wasn’t going to work. I was tryinfg to halfway do the he said. “Once we made the commitment, we really turnecd the corner.” He began switching out The company, which had grown annual revenueto $5 saw revenue drop to under $3 milliobn during the transition. But, once the commitment was McCaddon notedmarked improvement. By 2003, revenues had grown by 35%.
Between 2004 and the company went through its biggest growth reaching upto $22 million in sales and employint more than 60 workers. But at that the storybook growth came toan end. “Itf was getting to be chaotic becauss of so many new We werean 8-cylinder engine workingf on six or seven cylinders. We’d lost a sens e of teamwork, and everyone was territorial.” That’s when McCaddonm brought in Brush. “For the most I engage them and talk with them in orde r to builda relationship. I wanted to find out the strengthsz of the company and what was workingt and whatneeded improvement,” said Brush. “They’ve got the they’ve got the vision.
It’s just giving them the opportunity.” Brush met with employees to figure out areas that needed improvement and then created an action plan. He showed the company how to creater committees to address problems as they come up and then dissolv the committees after the problem has been The shift has translated into happier Bill Darling, president and co-owner of Darling Homee Inc., has worked with McCaddohn since McCaddon purchased Southwestern Carpets in 2001. “(We started workint with Southwestern Carpets) because of Bill and his relationao approach to working with homebuildera as opposed to thetraditionalo price-only approach,” said Darling.
“Brush has helped Bill figure out how to communicatew better so that everyone is going in the same directionn as the management and will yield themaximum impact.” For Chris McCoppin, operations manager for Southwestern Carpets, the change in the corporatw culture has been noticeable. “Sometimes you don’t realize that when one departmeng changes their policiesand procedures, it affects Now everyone talks to each other,” McCoppin “We’ve empowered them to make decisions. We gave them the power to run the Theyfeel accountable.
” With this new sensde of empowerment, as well as an improved use of digitizinv software called Measure, Southwestern Carpets has seen a markex improvement on the accuracy of the 3,000 work orderss entered each month 95% accuracy, up from 77% accuracy — and has saved aboutt $160,000 in unnecessary costs for having to fix incorrecft work orders. Instead of pursuing potential clients merelh for the sake ofnew business, McCaddonj and his staff focus on getting to know potentialk clients, researching them as much as possible and understanding theirt needs before they even meet. “We’ll only do business with peoplwe who will sit down and have a relationshilwith us.
Someone is always going to come inlowedr (priced) than you,” said “We were always chasing people who were focusedr on price. If they say, fax us (a price sheet), we say we can’t work with you. We stay together as a result. If you have the valu e relationship, they don’t leave.”
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