The 2006 Leadership Excellence Summit
"Leadership in a Global Economy: New Rules for a New World"
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Robert J. Maricich President and Chief Executive Officer Century Furniture Industries |
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"I work for employees and it's a responsibility that I take seriously," Maricich emphasized.
He explains that consumer confidence is a big part of his company. People don't "need" to buy furniture. It's a purchase that can be put off. The problem was that consumer confidence has decreased in the recent years and this was a big problem for his company.
Several factors contributed to the decrease in consumer confidence and the mortal danger of Maricich's company. September 11, 2001 cause consumer confidence to decrease in nearly every business sector. Asian imports dramatically changed price value and perception. Retailers were increasingly treating furniture as a commodity. He was operating in a high cost environment.
Maricich explains that it is hard to compete with China and other Asian imports. Intellectual property was rarely respected there and companies in that area of the world freely copied his and other people's designs and then made furniture of a lesser quality and sold it for a cheaper price.
To deal with this crisis, Maricich and his company figured that they had five choices. They could close their factories and move to China, they could sell the company, they could "act like an ostrich" and hide from the problem, they could embrace blind patriotism or they could face the problem head on.
He chose to face the problem head on.
How did he do this? First, by redefining the company's goal: to be the best manufacturer of premium furniture in the world. How to reach this goal? By adopting and following 13 principles.
First, when you find yourself in a hole, stop digging. Second, take action. "Life rewards action," Maricich said.
Get comfortable with ambiguity. Maricich explains that there can be conflict when you are a leader and this may require a period of ambiguity. You have to learn to be comfortable with this.
Find your brilliance and leverage it relentlessly. Century Furniture has defined three ways in which it's different from other companies: the luxury experience, innovation and speed.
The fifth principle his company abides by is remembering that the golden rule of failure is to try to be all things to all people. It's impossible to be successful if you're trying to be all things to all people all the time.
Cut the fat. You "can't compete today if you're not lean," Maricich said. Also, create a culture of trust. Trust is the currency of leadership. Three questions to ask yourself to see if you have a good relationship with a person are do I trust them, do they care about me, and do they have a plan that excites me. If you answer yes to all three, you have a good relationship with someone.
Maricich's eighth principle is to foster a sense of ownership. Every employee in Century Furniture is a shareholder but this isn't enough. What makes someone an owner is being in an environment where he or she can make a difference and this is what they've strived for at his company.
Hire and retain the very best people. If people can do their best work at a company, then that's how you get the best people, Maricich said. It's also important to reward those people for a job well done. Century Furniture has the "Bear Award," a crystal bear from Tiffany that is given only two or three times a year to an employee that's done a great job.
It's important to "innovate, innovate, innovate." You must always be on the lookout for new ideas. His company began producing outdoor furniture recently, something that it hadn't done before.
The last two principles are to choose your customers, or those who influence your customers, and never be a victim.
Maricich explains the lessons he and his company learned from "weathering the storm." It's essential to accept your reality and work from there. You must have organizational clarity. Life rewards action so it's better to do something and fail than to wait so long that an opportunity passes you by. Finally, always remember that "if it's to be, it's up to me."
Robert J. Maricich, President and Chief Executive Officer of Century Furniture Industries, spoke about the problems that the furniture industry, including his company, has faced in the recent years and how he is dealing with the problem.
Appointed President and CEO of Century Furniture in 2000, Maricich has presided over its successful and ongoing transformation. He is responsible for the vision and leadership of this $175 million company, renowned for its finely crafted luxury furniture, and the management of its 1,200 business associates.
Prior to joining Century, Maricich was president of American Drew, president of American of Martinsville Contract, and vice president of contract sales for Flexsteel Industries. He began his career as an engineer with Texaco in 1973, where he was promoted through the ranks of plant management and moved into sales prior to excelling in the general management arena. Maricich was appointed by the governor of North Carolina to be Chairman of the North Carolina Furniture Export Council and serves on the American Furniture Manufacturers Association Board of Directors and is Chairman of the Executive Committee.