|| Print ||
|Articles - June 2011|
|Wednesday, May 18, 2011|
Page 3 of 3
So the question arises: Why go through all this? All of Leatherman’s major competitors have moved at least part of their multi-tool production overseas, where labor costs are considerably less. Rather than spending the time and effort to re-jig the way the company runs its business, why not contract the work — or part of it, anyway — to a facility on the other side of the Pacific?
The answer is simple: Six years go, Jake Nichol made a promise, and a gambit.
In 2004, the company’s venerable founder and chairman, Tim Leatherman, came to a realization: He wasn’t very good at strategic planning. Leatherman had done a lot for his company. He invented the first multi-tool — first called “Mr. Crunch” and later “Pocket Survival Tool” — after a disastrous experience in a Fiat during a 1975 trip to Europe showed him that a simple pocketknife was not enough.
He and co-founder Steve Berliner filled the company’s first order in 1983, for 500 multi-tools to be sold in a Cabela’s catalog. He led the company through its exponential expansion, from those first 500 tools, to a company with 36 products selling millions of units annually in more than 85 countries around the world. The company now reports more than $80 million annually in gross revenues. It says that after a difficult 2008, revenue grew 18% during the past fiscal year.
But strategic planning was not his forte, Leatherman, 62, says now. “I thought we had a strategic plan, but the employees couldn’t recall the meetings,” he says. “Because there weren’t any.”
In 2004, at the company’s first strategic planning session, Leatherman was on the verge of stepping down from full-time duties at the company. He included in the plan a list of what he called the company’s “guiding principles.” Chief among them was a pledge to keep the company, and its manufacturing plant, in Portland for as long as possible.
Those principles became a kind of contract for the company’s next chief executive. If a candidate agreed to adhere to the plan, they’d talk. If not, there was nothing more to discuss.
Leatherman set up an interview with Nichol, who brought with him a quarter-century’s worth of experience of the tool industry, both at Stanley and at Danaher, the Washington, D.C.-based group that makes tools for Sears under the Craftsman brand. At Danaher, Leatherman says, Nichol was in much the same position, having to devise ways to make hand tools in the U.S. when many rivals had moved production elsewhere.
Nichol agreed to follow Leatherman’s principles — and to take the job. That agreement has shaped the way the company has operated ever since.
So the company’s disadvantage is a permanent one, at least as permanent as such things get. Nichol and Leatherman both say that the pledge to remain in Portland presents obvious challenges — balancing quality and cost, always fending off competitors that offer good concepts at often-lower prices.
But Nichol says the pledge has been a kind of blessing as well. The jobs the company provides in Portland are, in a way, its promise to the area, something Leatherman, a native Oregonian, cherishes. With the agreement between Leatherman and Nichol in place, those promises can be kept. Company executives tell employees, government leaders and suppliers that it’s going to stay here. It’s empowering, Nichol says.
“The empowering part of that is that there are no off-ramps,” he says. “There’s no ‘If this doesn’t work we’ll go do such and such.’ It’s really helped us build a clear business strategy.”
The endless battle against costs and inefficiencies continues. Two years ago, it was a plan to make a $30 multi-tool. That plan has come to fruition. But Nichol says every year comes with new plans, and with them, new ideas about how to squeeze waste from the company and new, faster, more efficient work habits to embrace. From Nichol down to the workers on the factory floor, it’s again time to stretch.
Friday, May 22, 2015
BY CHRIS NOBLE
The right sunglasses can protect your eyes and look cool at the same time. This being the 21st century, select shades are socially conscious, too. Portland brand Shwood uses wood and other natural materials and manufactures locally. Founded by Ann Sacks, the brand Fetch dedicates a portion of its profits to animal welfare. But whether you choose classic tortiseshell or aviator chic, please, shed the sunglasses when you walk in the door — and, of course, at night.
Friday, June 05, 2015
As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.
Wednesday, July 01, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
There are more than 10 million former military members working in the United States.
Friday, May 22, 2015
BY ROBERT MULLIN
Latest development in Nestlé plant saga sparks debate about the value of water.
Tuesday, May 26, 2015
BY KIM MOORE
A conversation with Gene Pelham, CEO of Rogue Credit Union.
Friday, May 22, 2015
BY EMILY LIEDEL
Inside the topsy-turvy world of corporate sustainability rankings.
Tuesday, May 26, 2015
BY JASON E. KAPLAN | STAFF PHOTOGRAPHER
New Jersey and Oregon are the only two states in the U.S. that ban self serve gas stations. But these two holdouts may be ready to give up the game. New Jersey is considering legislation that would lift the state's ban on pumping your own gas. Oregon is considering smaller scale changes.
|100 Best Green Workplaces in Oregon|
|The Green Paradox|
|Up in the Air|
|Credit Unions Perspective|
|Queen of Resilience|
|Did airlines collude to keep fares high?|
|Citigroup analyst thinks Puma should sell|
|OSU researchers examine warm-water mass|
|Appeals court rules against Apple|
|Microsoft to cut division, 1,200 jobs|
|Apple suppliers introduce 'Force Touch' to new iPhone|
|Uncertainty abound in Greece|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
3 Degrees Event Celebrates 5th Year Bringing Nonprofit and Business Professionals Together to Benefit Portland.
Bend energy leader brings passion for efficiency and renewable energy to the nonprofit.
Event in Forest Grove marks recognition of Global Food Safety Initiative Certification.