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Profile of a Successful ESOP Company

  
  
  

Success Stories: Providing Employees Stability in Unstable Times is a profile of ESOP Company and 2010 Top Small Company Workplace Van Meter Industrial. The article discusses the company's five core values of Place, People, Provider, Continuous Improvement, and Profit:

Giving back to the communities in which they and their employees reside is certainly not a novel concept for companies; many are motivated to do so for the positive PR it brings. But VMI has intentionally built this focus into its workplace culture and its core values, one of which is Place.

"We allow employees eight hours to volunteer on company time," Marketing & Communications Manager Erin Koester told us in VMI's award application. "Not only is this good for the community, it is also a reward for our people."

The company's other four core values, all of which except for one also start with the letter P, include:

  • People: building and sustaining an engaged workforce is a key strategic goal
  • Provider: get the right product to the right customer
  • Continuous imProvement: continue to empower and to expect each of our employees to make the appropriate changes for improving process, services and other activities in our company, and to continue to have a workplace that is constantly reinventing itself
  • Profit: continue to drive value in our stock price so our fellow employee-owners can reap the rewards of employee ownership

The article also explores their open book management program and their Quick Kaizen continuous program:

At VMI, it is called Quick Kaizen, and it uses technology (their intranet) to empower employees to make small changes in their work habits that collectively lead to large-scale process improvement.

"You can enter ideas and they go to whoever is in charge of that area, and then they interact with you by phone or email," says Delivery Driver Larry Botts. "They ask you about cost savings or a better way to do it. For example, I tried to get a new form for the customers so they don't have to sign multiple times for a delivery. Our competitors make people sign multiple times and another company even takes a picture of the person signing for the delivery. Now we work with the customer so they can either sign, or they don't have to stop what they're doing to sign. This helps us build trust with the customer."

The Quick Kaizen program is based on the Kaizen philosophy:

Continuous Improvement

The principles for continuous improvement include establishing a long-term vision, working on challenges, continual innovation, and going to the source of the issue or problem:

  • Challenge

    Form a long-term vision and meet challenges with courage and creativity.

  • Kaizen (continuous improvement)

    Improve business operations continuously, always driving for innovation and evolution.

  • Genchi Genbutsu (go and see)

    Go to the source to find the facts to make correct decisions, build consensus and achieve goals at best speed.

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2012 IRS Pension Plan Limits

401(k) Deferral Limit - $17,000

Annual Additions Limit - $50,000

Maximum Compensation Limit - $250,000

Catch-Up Contribution Limit - $5,500

Highly Compensated Employee - $115,000

ESOP 5-Year Distribution Threshold - $1,015,000

ESOP Additional Year Threshold - $200,000

2012 Pension Plan Limits

1989 - 2012 Plan Limits