A brilliant young business owner in our distribution vertical always has great book recommendations for me. I just read his most recent suggestion; “Another Way” by Dave Whorton. The book describes the leadership characteristics of what Whorton calls privately held Evergreen companies. These are businesses that build value for the long haul by creating unity. They do not follow the Venture Capitalist philosophy of getting-big-fast or growing at-all-costs to sell or go public.
Evergreen principles
Here are just a few of the principles for creating unity within an Evergreen company.
- Purpose – Whorton relates how Bill Hewlett and David Packard made a deep impression on him when he was sixteen and working in their Santa Rosa factory. “Hewlett and Packard were all about respecting the individual, treating people fairly, and encouraging them to explore their creative pursuits.” The best companies have caring leadership, not strategy, as their core purpose. They speak with one voice and don’t send mix messages.
Another powerful example of purpose in action is the success of In-N-Out, founded by Harry and Esther Snyder in 1948. They built the company on a clear, uncompromising mission: “Do one thing and do it exceptionally well.” Their focus was simple—serve the freshest, highest-quality hamburgers, fries, and shakes quickly, in a sparkling clean environment. Customers could see this commitment firsthand in the open kitchen, where a team of happy, well-rewarded associates worked with pride and enthusiasm.
- Relationship – In Evergreen companies, internal relationships rest on simple truths. They address conflicts immediately, resolve issues before they grow, and operate with complete transparency. As my friend Abe Wagner says, “Say it straight or you show it crooked.”
Whorton explains that one principle that separates Evergreen companies from others is a People First management program. At a distributorship I was part of for 34 years, we reviewed sales, expenses, and gross and net profit with our employees quarterly. Moreover, since the employees received 10% of the annual net profit with payments distributed each quarter, this was an important way to establish good relationships.
- Self-finance – Evergreen companies operate at a self-financeable growth (SFG) rate, a concept that every entrepreneur should know. Since many Evergreen companies were initially built by founders who didn’t feel they would qualify for loans at the local bank, SFG is a familiar concept in this arena. The SFG philosophy holds that “If you don’t have the cash to buy it, wait until you do”. With slow but steady SFG growth, many Evergreen companies have realized several hundred thousand dollars in annual revenues.
Create unity
In conclusion, these are principles important to independent distributors. I will share more in future articles. In the meantime, keep your business Evergreen by creating unity in your business, following your purpose, building solid relationships, and pursuing self-financeable growth rates. Fantastic results will follow.
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