Family companies, too,
can go astray
David
Kohler is
President and COO of Kohler,
a Wisconsin-headquartered firm founded in 1873 that manufactures a
range of products from engines to power generation systems. The
company though is best known for its range of luxury bath and kitchen
products. The 48-year-old is a fourth generation member of the Kohler
business family and a yoga enthusiast. In an exclusive interview
to ET
Corporate Dossier,
David
shares interesting insights about family-run businesses and his
equation with his chief executive and father Herbert Kohler Jr.
Edited excerpts:
What are the top three leadership lessons that you have learnt from your father?
Number one would be sticking to a set of values and business principles. The second lesson is attention to detail. Details are everything — in a plan, a product and execution. Third lesson is a passion and love for the creative process. We love the creative process more than anything else we do, whether it's creating a strategy or driving innovation in a new product or pioneering in a market like India.And how often do you disagree or argue with your dad over business strategy?
It's funny but honestly we don't argue that much.How difficult is it is for sons to live up to their legendary father's reputation?
It's not difficult in that sense because I have always believed that there is incredible opportunity to continue to advance the company and our best days are still ahead. Even after 141 great years of amazing growth and success, we still have incredible opportunity going forward. So I haven't really thought of it in comparison to my father but have been driven internally to see the company succeed.But doesn't this comparison bug you?
No, it doesn't. I have great respect for my father and I have learnt an incredible amount from him. We are very similar but also very different. And that's okay. I have children too and I want my kids to cut their own path and to find something that they are passionate about and grow and achieve.Are you grooming your kids to become a part of the business?
It's really going to be up to them, because for any family member to be able to come into this business and succeed they have to have three things. Number one, they have to be passionate about this business. That you can't force, it has to come naturally. Second, they have to have a work ethic and work hard. Third, if they are going to rise to the senior levels of what is now a very big company, they have to be very competent. Because, we can't afford to have people on senior positions that aren't really great.What is the biggest strength of a family-led business?
The greatest thing is the ability to chart your own destiny without having to worry about the street. You can really take a strategy, take a long term view to build value or to drive your organisation forward. But like any company, family companies can go astray.
What are the top three leadership lessons that you have learnt from your father?
Number one would be sticking to a set of values and business principles. The second lesson is attention to detail. Details are everything — in a plan, a product and execution. Third lesson is a passion and love for the creative process. We love the creative process more than anything else we do, whether it's creating a strategy or driving innovation in a new product or pioneering in a market like India.And how often do you disagree or argue with your dad over business strategy?
It's funny but honestly we don't argue that much.How difficult is it is for sons to live up to their legendary father's reputation?
It's not difficult in that sense because I have always believed that there is incredible opportunity to continue to advance the company and our best days are still ahead. Even after 141 great years of amazing growth and success, we still have incredible opportunity going forward. So I haven't really thought of it in comparison to my father but have been driven internally to see the company succeed.But doesn't this comparison bug you?
No, it doesn't. I have great respect for my father and I have learnt an incredible amount from him. We are very similar but also very different. And that's okay. I have children too and I want my kids to cut their own path and to find something that they are passionate about and grow and achieve.Are you grooming your kids to become a part of the business?
It's really going to be up to them, because for any family member to be able to come into this business and succeed they have to have three things. Number one, they have to be passionate about this business. That you can't force, it has to come naturally. Second, they have to have a work ethic and work hard. Third, if they are going to rise to the senior levels of what is now a very big company, they have to be very competent. Because, we can't afford to have people on senior positions that aren't really great.What is the biggest strength of a family-led business?
The greatest thing is the ability to chart your own destiny without having to worry about the street. You can really take a strategy, take a long term view to build value or to drive your organisation forward. But like any company, family companies can go astray.
What
are the top three mistakes that you've made?
I have made a lot of mistakes. That's how you grow and learn. We all make 'people mistakes'. Sometimes, you hire somebody and promote somebody for a position, and they don't work out for some reason. Second mistake is not analysing critical decisions well enough. Third would be not speaking up aggressively enough, when something is not right. All leaders should have the backbone to say a firm "no" and change direction when things are not working.
India is a land of contradiction with a large percentage of population not having access to toilets. How does that make you feel when you talk about highend luxury products for the super rich?
The mission of our company is to enhance the level of 'gracious living' for everybody touched by our products and services. We want to think about the mission more broadly. Our teams are actually working with schools to improve the quality of bathrooms and sanitation. We are also working with the Bill and Melinda Gates Foundation on their global toilet initiative. We are working with Caltech University and a team of scientists who have developed a solar power close loop toilet system that disinfects the water, for places that don't have access to safe sanitation. We have one such system installed in Kerala. We have just received a grant from the Bill and Melinda Gates Foundation and are now working on the second phase with Caltech to develop six of these units in India. We have another project on safe drinking water which can cut down on water borne diseases which is the significant cause of infant deaths.How has your India business performed over the last few years?
It's been excellent. We have continued a very strong double-digit growth rate here. We have every intent over the next five years to continue that.But China market is bigger than India ...
The China market is bigger absolutely and Kohler is number one in China and that's our second biggest market in the world after United States. But our percentage growth rate in India has been greater than that in China in the past five years.What's your investment target in India?
We don't have any specific investment target, but we are going to continue to expand. We already have over $100 million invested in India. We are going to continue to expand our facilities in Gujarat. We acquired a building in Pune last year for a technology and engineering center. We also have a diesel engine and generator facility in Aurangabad which we will continue to expand.
I have made a lot of mistakes. That's how you grow and learn. We all make 'people mistakes'. Sometimes, you hire somebody and promote somebody for a position, and they don't work out for some reason. Second mistake is not analysing critical decisions well enough. Third would be not speaking up aggressively enough, when something is not right. All leaders should have the backbone to say a firm "no" and change direction when things are not working.
India is a land of contradiction with a large percentage of population not having access to toilets. How does that make you feel when you talk about highend luxury products for the super rich?
The mission of our company is to enhance the level of 'gracious living' for everybody touched by our products and services. We want to think about the mission more broadly. Our teams are actually working with schools to improve the quality of bathrooms and sanitation. We are also working with the Bill and Melinda Gates Foundation on their global toilet initiative. We are working with Caltech University and a team of scientists who have developed a solar power close loop toilet system that disinfects the water, for places that don't have access to safe sanitation. We have one such system installed in Kerala. We have just received a grant from the Bill and Melinda Gates Foundation and are now working on the second phase with Caltech to develop six of these units in India. We have another project on safe drinking water which can cut down on water borne diseases which is the significant cause of infant deaths.How has your India business performed over the last few years?
It's been excellent. We have continued a very strong double-digit growth rate here. We have every intent over the next five years to continue that.But China market is bigger than India ...
The China market is bigger absolutely and Kohler is number one in China and that's our second biggest market in the world after United States. But our percentage growth rate in India has been greater than that in China in the past five years.What's your investment target in India?
We don't have any specific investment target, but we are going to continue to expand. We already have over $100 million invested in India. We are going to continue to expand our facilities in Gujarat. We acquired a building in Pune last year for a technology and engineering center. We also have a diesel engine and generator facility in Aurangabad which we will continue to expand.
By
Rajiv Singh, ET CD 19 Dec, 2014
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