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What
are the top three things on your agenda, as the new
executive vice president and CEO of the A.R.A.?
The
top item on my agenda — and for the American Rental
Association — is to be bold in leadership initiatives,
to demonstrate leadership within the rental industry on
relevant subjects that will make a difference to the
bottom line of the rental companies.
What
are those relevant subjects, if I may interrupt for just
a moment?
Equipment
availability, customer service, societal and economic
issues, legislative issues, how to better manage
functions in their businesses — for their employees
and for them as managers — finances, accounting,
education, training, certification, networking in the
industry — those kinds of things. Everything. How to
manage the store to be a financial success.
OK,
let’s go back to your list of three top priorities.
What’s No. 2?
That
we be a value-based organization. The members of this
association find great value in their membership and the
services of this organization and that is because we are
meeting their needs effectively, we are listening and
understanding the industry in a realistic way, so that
we know the trends, so that we know the focus, so that
we know the influences and can better assist them in
their businesses. That’s the second one.
And
then No. 3 is to be a proactive organization and be a
partner in this industry, working effectively in
coalition with others in the industry and with
individual members, helping them understand not only
today but tomorrow and giving them good, definitive
information to make their business decisions, so that
they know about the rental industry here in the United
States and Canada, and also what’s going on on a
global level — that they look to us for the
information they need to make good decisions.
I
asked for three priorities arbitrarily, but are there
more you want to add to the list?
I
have seven personal goals for A.R.A.: demonstrate
leadership within the industry, create value for members
and for the industry as a whole, deliver excellent
customer service and membership service, develop
partnerships throughout the industry, lead the rental
industry in the integration of technology, interact on
policy and issue oversight, and recognize the global
scope of the rental industry and A.R.A.’s role in the
development of the industry worldwide. They’re all
important to me. All of them are important elements of
what I think A.R.A. needs to demonstrate with great
competency. These three come first, though, and the
third one — to be a proactive partner in the industry
— is kind of a collective goal.
One
of the main priorities I have for this organization is
that it be a leader. And to be a leader requires being
bold, taking risks, being well-informed and making good
decisions — but being decisive and being direct as an
organization, in order to make a difference. It’s the
opposite of complacency.
Each
of those priorities is important to me in different
ways.
Going
back to your second point, you talked about meeting
needs effectively and looking at the industry in a
realistic way. Flesh that out a bit, if you will —
what do you mean by a realistic look at the industry?
The
organization has to identify with the industry. In other
words, we have to know our industry well and to do that
means we need to be constantly doing research, seeking
information, sharing information on the current status
of the industry and where it’s going to be going in
the future, based on trends, so it’s well-informed.
Information is our genesis, so that we’re able to be
the organization that people come to and expect to know
what’s relevant about today’s rental industry and
tomorrow’s as well.
How
do you think A.R.A. can position itself as the source
for equipment rental statistics and information? Is that
what you’re getting at with this trends analysis?
Yes,
it is — A.R.A. must be the place where research is
being done constantly on the rental industry, to get
good, credible information to know what’s happening in
the industry and how we can position ourselves. I think
it’s our charter to serve as a source of information
on the industry — we have a responsibility to be
well-informed. It’s what we’re about. We represent
the equipment rental industry and to do that
effectively, you have to know the industry and know it
well.
That’s
kind of a sea change in the way this organization has
conceived of itself — representing the industry as a
whole and not just the members of A.R.A. Given the way
that things have changed, is a new order of march called
for?
Well,
in terms of how I see it, the members are the industry
— they’re a key part of the industry. We need to
know what an independent store or an RSC or a United or
a John Deere or a Bobcat is doing — what’s going on.
I mean, we should have our finger on the pulse of the
whole industry. It serves our membership well for us to
continually understand what’s going on in the
industry, not only about the members and what they’re
doing — store size, sales, what they see coming, that
kind of thing — but within a larger picture: what the
manufacturers are doing, what’s happening with
purchasing. We should help them to better understand how
they can stay competitive in this day and age.
You
slipped in something very interesting — you mentioned
Deere and Bobcat. Do you think of them only as suppliers
to the industry or are you now including in your rental
universe those manufacturers and dealers who are now in
rent-to-rent themselves? — as a business unit, I mean,
and not simply a rent-to-sell sales tactic.
You
know, in my perspective, our association is rental
stores and associate members and together we make up the
rental industry — so the partnerships that we have as
an association of members and associate members are
important in creating the critical mass that we need,
and I would see the association using our resources of
individual members and associate members effectively for
getting more results in member services and benefits and
industry information. There needs to be more synergy
between the two.
How
do you define synergy?
A
working relationship of respect and trust. Being able to
help one another. And I see it as mutually beneficial to
build the rental industry to critical mass.
Sometimes management authorities have included in their
definition of synergy that the whole is greater than the
sum of the parts.
Yes,
that’s exactly right.
Let’s
define the whole if we can. Do you mean that you think
the association must now conceive of the industry as a
bigger whole? That it goes beyond the independent rental
companies and the larger rental companies that have
formed up with venture capital, to include new segments,
such as equipment dealers, who are now thoroughly in the
rent-to-rent business vs. using rental-purchase
agreements as a sales tool — rent-to-rent as a
distinct entity. Some of these companies that just had a
little bit of this going on are having a lot more of it
going on. Caterpillar is now among the largest rental
companies, with its Cat Rental Store organization. So
the question is — is there any limit now to A.R.A.?
Would an equipment dealer in rent-to-rent be as
legitimately a member as an independent rental company?
Why
not? If we don’t represent them, somebody will. I
think we’re here to represent the rental industry. We
cannot “circle the wagons.” We need to be
progressive in our viewpoint as an association and
understand the situation of the day, and understand what
will make all businesspeople in the rental industry more
successful, and provide the opportunity to learn from
one another. We need to recognize how large the pie is,
and what great opportunities exist for all, in this
economic environment.
So
you really regard A.R.A. as a paradigm of the rest of
the industry and the industry’s legitimate
representative — maybe it does not yet embrace
everybody in the rental industry, but that is its
rightful role. Is that correct?
Yes.
The A.R.A. does speak for all the people in the
equipment rental industry. Everyone in equipment rental
should be in the A.R.A.
Can
A.R.A. practically generate the kinds of data that make
it an industry-broad representational organization?
Yes,
we are working on that now, in fact, and will present
our findings as they become available. I will be talking
more about this and other matters of importance to the
industry in the Executive Vice President’s Page in
Rental Management.
Charlie
Neffle said he envisioned your role as that of
spokesperson for the industry as a whole, worldwide.
What are your thoughts about that?
I
think it’s a true requirement of this position to be
very proud of what the association and the industry
represent and to tell the story to people who can help
extend the message. In fact, at the end of December, I
was interviewed by CNBC.
Why
is it so vital just now to assume such a high-profile
role?
I
think because of the dimensions of the economy and the
industry. With the pace of change picking up, a new
dynamic is coming into business combinations and it’s
an opportune time to take advantage of things that are
already occurring, to step up the level of activity and
the level of communication and information and, quite
frankly, to continually define the industry. And who
better to define it than A.R.A.?
Tell
me about your decision to come to A.R.A. I know you
researched the industry and the association thoroughly
beforehand. But in your research, did you find anything
that troubled you or alarmed you in some way? I mean,
you didn’t just walk blindly into the cave and then
find something with claws in there ...
No.
I found it very helpful to have been a CEO, coming into
a CEO position — you know you experience a lot of
things. But from all the organization work I’ve done,
I could see clearly that this was a wonderful
organization, and what we may want to put some more
energy into, the things we have to evolve — that’s
all doable. We have very talented people to get that
done. We have dedicated volunteers. We have a very
capable staff. There’s a lot of pride in this office
and this association. What about the large rental
companies, what role can they play in the A.R.A.? How
would their involvement enhance the organization?
They’re
part of the equipment rental industry and they can bring
to this organization information, education,
personalities and dynamics that will help build the
quality of our critical mass in the way of people and
information. They belong in A.R.A. They, too, would
benefit from the involvement. I see it as a win-win.
Their involvement strengthens our capabilities and we
can help them in their business as well, with benefits
and services. We are an association for all members of
the rental industry and to effectively represent the
industry, we need to be inclusive. And we need to have
courage that we can be. By having this diversity —
different types of businesses, different types of people
— we will grow and be able to accomplish far more.
Let’s
go back to the topic of international expansion for a
moment. Is it a necessary direction for A.R.A. or can
A.R.A. just ignore the overseas rental industry?
It’s
a very necessary direction for A.R.A. It’s a global
marketplace and we have to be a player in it. To not
recognize that it is a global marketplace is to be
self-limiting. In the end it would harm us a great deal.
If you look at the trends — economics, business and
commerce — we need to pay attention to what’s
happening in the international arena. We can learn, we
can grow, we can benefit. It’s a fascinating arena and
a true benefit to know about it.
What
is your greatest hope for A.R.A. in the next three
years? Does one of those things on your list stand out?
That
we are a significant, meaningful organization today and
well into the future, one that makes a difference in the
lives of the people in the rental industry.
Paint
a picture for me of how things will be with you in
charge.
The
organization is going to have great energy and focus. It
will get things accomplished. It will function with
plans. It will function with goals and results will be
recognized. The working relationships among volunteers
and staff and partnerships within the industry will
continue to grow and strengthen.
How
do you determine what the priorities are — the things
that are really worthwhile?
By
listening to people and also by paying attention to
facts, numbers and trends analysis.
And
then what?
And
then make a determination on the potential of the
organization and what can be accommodated today and what
the opportunities are, and figure out a way to
accomplish the potential. What has always been very
important to me in determining what we do first, second
and third is having a good, full understanding of what
we have today and listening effectively to know how you
can sequence into growth and development. You can always
hear it and you can see it — it’s really not that
hard, if one understands the situation.
How
do you filter out false messages — the people with
their own agendas of self-service, the distraction, the
noise?
Again,
that’s very obvious as a general rule and I do it by
asking a lot of questions and trying to get a true sense
of what people are saying, and testing some of the
information. I can generally find out very quickly
through that method.
Do
you trust your own instincts about what and who to
believe more than data?
Yes.
And
you’re usually right about that?
Yes.
Usually I am.
How
has your small-town, Iowa-farm background helped your
career?
It
has had great value. It taught me about constant
renewal, constant change, responsibility, value for
people, how and why to value hard work and persistence
— and the beauty and wonder of nature.
Have
you been around long enough at this point to see any
shortcomings or unrealized opportunities in the
association’s service to the industry that you can do
something about?
I’ll
just say one thing up front: I think that even with all
of A.R.A.’s accomplishments, everyone underestimates
the potential of this organization. I believe because
people have been so close to it — it’s what they do
each and every day — that we haven’t talked enough
about the opportunities within the organization. We’ve
almost been self-limiting, I think, in terms of perhaps
looking too much inwardly at how we do things rather
than what can be accomplished. I see unlimited
opportunity here and I look forward to opening that up
and letting people discover and see for themselves the
potential in this industry and association, the
opportunity and what can be done, and keeping the
thinking on the positive and on the potential rather
than allowing any self-limiting thoughts to stand in the
way.
Is
that what you referred to in the interview with Sandy
Howell for the A.R.A. Web site, in which you said you
were excited about this — is that what excited you
about this organization — the potential in it?
The
association interested me for several reasons. No. 1, it’s
a new industry for me — it’s retail and
customer-based. I like that. It’s a different
dimension of the economy that I can learn an awful lot
from. And also it’s an international scope — not
only the United States and Canada, but outreach
throughout the world — and I relish that aspect of it,
the global dimensions of it. I was drawn also by the
people. I like the entrepreneurial spirit and identify
with that. I like building, growing, self-motivation —
and it’s throughout the whole industry. I like the
growth dynamics of the industry — it’s a dynamic
that is very appealing to me because there is no limit
to what you can build and grow and create.
The
international thing is especially interesting in some
respects. The United Kingdom, France and Japan are
especially advanced in rental, but the world as a whole
is not even beginning to approach saturation. And it’s
not like the commodities business that you came from —
we’re not competing with Argentina and Brazil, there
is no balance-of-trade issue. It’s not a “hydraulic”
economic structure, where if you push it up here, it
goes down there, and there is no ceiling — volume can
grow without foreseeable limit. It’s all win-win.
I
was drawn by that, too. You know in terms of
international development, just the potential of sharing
information, getting to know other people in other
countries, learning and experiencing their opportunities
for our members here — it’s just a wealth of
knowledge.
Back
to the matter of dynamics. Define the dynamics of this
industry for me.
A
strong economic base, a business that touches many parts
of society, a customer-oriented, people-related business
with unlimited opportunity, the business sense of the
rental companies of all sizes, the entrepreneurial
spirit, the growth potential — and an association that
can integrate and lead the industry and really make a
difference in the lives of people.
The
rental industry even at its maximum conceivable
potential numbers would still be a tenth the size of the
National Corn Growers Association that you came from,
yet apparently it had a draw big enough to draw you.
It
did, it did — because of the things I mentioned and
also as an organization — the organization itself is a
larger organization from a financial and a budgetary
perspective and in terms of its international scope and
the potential on the world level. The potential for
total revenues is greater, too.
You
spoke of change in very positive terms and called it “a
sign of opportunity.” Is that essentially what you are
talking about?
Yes.
I would like to help everyone see change as a real
positive and a sign of opportunity and embrace the
future rather than fear the future — realize that
change is everywhere, not just in this industry — and
it’s great that the industry is changing, because if
it didn’t change, it would stagnate and die.
A
key point you make in your resume is your leadership in
achieving financial goals — your fiscal management
capability. Do you see any opportunity for A.R.A. to
achieve greater fiscal success? Or is that necessary?
What is the A.R.A.’s financial position now?
The
A.R.A. is a very stable organization from a financial
viewpoint. It has had solid and strong fiscal management
through the years. It has been able to build a reserve
level that is very stable for the organization. There
are good fiscal controls throughout the organization. It
was a very important part of my evaluation of A.R.A. as
a new executive coming in — you want to have a very
clear picture of the track record in regard to fiscal
management, where it stands today and what’s ahead.
You
have a distinct advantage as a chief executive in that
you can draw upon analogs from other lives that give you
comparative wisdom. Then the trick, of course, is to
bring to it the analytic and strategic abilities to make
the analogs work.
That’s
the rewarding part — making all the parts work well.
To me, it really is.
Charlie
Neffle talked about the need for larger role for the
A.R.A. in developing public awareness and encouraging
the use of rental services — marketing the rental
option to the public, in other words. Can A.R.A. help
create opportunity for rental people, do you think?
Yes,
I think we can help form that consumer identity and visibility.
This
organization is the image and the voice of what the
rental industry is and can be. Part of that image is not
only to our rental industry but also to the public, and
so we have to be constantly aware of what the A.R.A. is
doing to build a customer base for our membership.
I think it’s a very effective and very natural role
for our organization.
Well,
it’s the largest segment of our program budget —
advertising and marketing, building consumer awareness
of equipment rental. I think it’s a very vital role
that we have — understanding the consumer just as much
as we understand the equipment rental industry — and
certainly this organization has a role in interfacing
the two. I think that our challenge will always be to
provide the right degree of advertising and marketing
expertise to help our membership, but to also to reach
out to the consumer. And to do it in a way that
continues to build the image and respect for equipment
rental.
In
the association there are two chief leaders, one elected
from the membership, one appointed by the board. Both
are “CEOs”: chief elected officer and chief
executive officer. How do you see the balance of power,
or division of power, between a president and yourself?
How should you complement each other?
What
I think is critical to add here is that this is a
partnership that we have within the staff leadership of
A.R.A., as well as the elected volunteer leadership of
A.R.A., and that it is a partnership built on trust and
respect, and requires dedicated, committed and capable
people. A.R.A. has been fortunate in having strong
leadership and dedicated, capable volunteers. That
involvement of people within the committees, the task
forces — the people who are the A.R.A., who see, feel
and touch it on a daily basis — is critical.
So
a strong interest that I have always had and certainly
will have in this position is helping to identify and
encourage volunteer leadership within the organization.
Certainly the volunteer leaders themselves have a key
responsibility to find their successors and to keep that
flow coming, but I feel a responsibility as executive
vice president to do the same.
I
mentioned a partnership of volunteers and staff. My
responsibility in this position is to provide to our
volunteer membership and our audiences a capable,
dedicated and industry-committed staff as well —
because we’re expecting that on the volunteer side —
and to build an understanding of the difference of our
responsibilities.
The
dedication to the industry is the same. The loyalty to
the industry, we all must feel. The desire to perform in
an excellent fashion is one we share. But we have
different roles. The volunteer leadership has the role
of helping to build the vision of the organization and
the industry, of looking outward in terms of how we can
strengthen the industry and the association’s role,
whereas the staff has the responsibility to bring to the
volunteer leaders all of the valuable facts and
information necessary to make decisions that will guide
the future of this organization. And then we, too, have
the responsibility for implementation of programs and
services, but it is a partnership built on an
understanding of the difference of responsibilities that
are complementary.
You
have spent some significant time in government as an
official in the U.S. Department of Agriculture, and as a
petitioner of government — an association executive
with a political agenda. Your lobbying efforts have been
very successful. How might A.R.A. get a higher profile
on Capitol Hill and in the state legislatures? Or is
this a premature topic?
No,
it’s never premature. I’m a strong believer in the
power of individual citizens to influence their lives
and livelihood through the political and regulatory
process. I know from some of my visits with rental store
owners and members to date that the regulatory and
legislative side of our equipment rental business is
pretty darn important to them. It would be my hope that
A.R.A. have a higher profile in the halls of Washington,
D.C., and the agency offices, where we are represented
by our members. The way we accomplish what we need to do
is greater involvement of individual members in their
congressional districts or knowing their senators on a
personal level, and within the state houses, a similar
kind of thing.
What
we will be focusing on is greater information sharing
and education on the political process. We will
demonstrate to our membership their ability as
constituents who vote, and how much they matter to that
senator or that congressman. It’s a fascinating
process — the political process — and it does bring
results to have individual membership really active in
that role. It’s an initiative that needs to be
sustained. Working relationships with congressmen and
senators have to be ongoing. And involvement in the
political process takes many shapes and forms — it
includes activity on the local level, as well as
activity in Washington, D.C. We will increase the
understanding of how success can be achieved and really
highlight those specific committees and sub-committees
within the House and the Senate that have authority over
those issues that are of the most importance to our
members.
You
have talked about the A.R.A.’s role in advancing the
level of technology in the industry. Could you elaborate
on that?
From
an A.R.A. perspective, I think it’s making sure we’re
aware of technological advances in equipment and
computerization. We need to help our members who haven’t
got that awareness gain that awareness and help them not
only compete but be on the cutting edge. I think an
interesting story that always needs to be told is the
benefit of new technology in equipment and advances that
are made and why they’re made and how they save money,
how they add convenience and safety features, and so on.
Those are terrific stories that I think we as an
industry need to be talking about more.
Let
me ask you a couple of the same questions I asked
Charlie Neffle in the January cover story. Characterize
yourself for me. What sort of a chief executive are you?
What is your operating style? How do you keep an
organization running smoothly and aimed at accomplishing
something worthwhile?
By
strong focus, delegation and accountability. If I say it
simply that’s how I say it. A clear definition of what
we plan to accomplish, delegation of who’s going to
get it accomplished and by when and then accountability
for doing just that. If I were to depict my style, I
lead. I lead through people. My goal as a manager or
administrator is to help people achieve their potential.
But
I also believe strongly in visionary goals that help
people, that help define where the future needs to be
— a realistic assessment of whether we can get there
— and then putting everything in place to achieve
that. I’m not a one-person show.
I
believe in the strength and the ability of people. The
absolute best aspect of my whole career in management is
the development of people and how people are amazed at
what they can actually achieve. So my goal is to set the
environment so the hunger is so strong for doing more,
and doing it better and doing it well because you have a
plan and you’ve got people who believe in you. People
can absolutely astound themselves. It’s just great
fun.
And
that’s true not only with staff, but with volunteers.
That’s why I believe in associations so much — as a
leader you can help people understand their abilities
and potential and carefully help them realize it. Quite
often people just need the support, the guidance,
someone who believes in them. And then they amaze
themselves.
I
think everybody has to be involved in the process and
understand exactly what the focus is and why and how
they contribute to the whole, and then they have to be
appreciated for the contributions they make.
What
are your special strengths?
Ability
to work with people and realizing the value of people.
By far those are the two greatest, I think. The ability
to communicate effectively with people. I like to
communicate. I think organization, understanding of an
organization is a unique strength that I have in this
business — how all the pieces fit together within an
organization. I like putting pieces together and then
monitoring all of that. I like that a lot. I could have
been an engineer, probably. And I think a sense of humor
is a strength.
A
strong theme that comes out of your resume is your
interest in negotiation. I see that, in fact, you have
studied that topic at Harvard University Law School. How
do you expect to apply that expertise in negotiation to
your role as CEO of the American Rental Association?
Where
I see that interfacing so well is that in the business
world, it’s all about negotiation. I have done a lot
of work building coalitions and relationships with
people who may have very different viewpoints and
agendas, and I’ve brought them together. I’ve used
the principles of negotiation to determine what we’re
looking for long-term, where each of us is coming from,
what our various interests are — what we can agree on,
what do we disagree on and how to come together.
On
your resume there are frequent expressions of active
leadership — “direct, “coordinate,” “create,”
“formulate,” etc. Do you see your role as executive
vice president of A.R.A. as a highly active one — a
role that favors initiative over administration, and
pushes the envelope vs. retaining the status quo?
I’m
an initiator. I like going up to members or staff and
just talking about what they’re doing and asking
questions — “What about …?” I’m going to be
more of an initiator. I’m certainly going to be
pushing the envelope — but carefully.
You
report in your resume on creating “a growth-oriented
culture” among the 500 employees you supervised at the
USDA. Tell me your thoughts about encouraging and
driving the growth of the American Rental Association.
What ought to be done, and what do you intend to do to
make that happen?
I’m
a builder. I’m a person who likes to build and
strengthen organizations by helping people identify
potential and redefine and recognize the opportunities.
This is how you can build and strengthen an
organization. I think the key is strong and active
involvement of volunteers and the same thing on the
staff side. It’s people being involved at all levels
of the organization that define the opportunities and
the potential, and everybody has a role in helping that
success be achieved. It’s the process of people. It’s
people strength and people power, it’s recognizing
their value and the benefit that they can bring. It’s
really bringing the organization alive.
Pride
and commitment in the organization and in the industry
are the two qualities and characteristics that are most
important in the life of an association, whether as a
volunteer or staff member.
I
think it is also inherently important that the focus be
on today and on the future — great respect for
yesterday, but today is what’s happening now and
tomorrow is going to come very quickly. And so a large
view, a visionary view — understanding not only the
individual but the whole. Our focus as an organization
has to constantly be on the whole and helping people
understand what that represents and the possibilities
that exist within them.
I
have one last question — which has always been a
particular favorite of mine. Are you ready?
Yes,
go ahead.
What
were you hoping I would not ask?
I’m
not afraid of any question. Really, I’m an open
book. |
