| Innovation, quality products and social responsibility – these are the qualities that inspire admiration. In its selection of Utah’s Most Admired Companies, Utah Business searched for companies that demonstrate these traits, accompanied by sound business strategies and proven financial strength. These 12 Utah-based companies, each of which has operated for at least five years, stand as examples in their respective industries. Most are household names, while others may be changing your household. In each case, you will find a company deserving of respect as it showcases business decisions worth emulating. Technology - Control4 Many of the 4,000 technology companies that occupy Utah’s business landscape stand out in their fields, but only one firm puts everything into a box for push-button control. “The average U.S. household has something like 46 electronic devices in the home and they all come with owner manuals,” says Will West, Control4 CEO and co-founder. “Our lives become more complicated because of all this cool technology, not easier. Control4’s job is to take all that wonderful technology and make it work together in a way that’s both easier to use and more powerful. We sell a little box, and that little box controls everything in the home. And oh, by the way, we can make it one-touch simple.” Mention home electronics and the mind automatically pictures entertainment systems such as flat screen televisions and DVD players. While Control4 does integrate these systems so that “when you press the movie button, you really get a movie every time,” West says.The company goes beyond the obvious and can direct lighting, temperature and other devices. “The digital home is here,” West points out. “Our homes are becoming more and more involved with technology.” Control4 focuses on the customer, not the product, West says. “It’s about lifestyle. It’s not about gadgets. It doesn’t matter what your lifestyle is. Everybody’s got a hot button: energy savings, security, safety, comfort, convenience. Everybody’s got something, and we can make your life better by tying those electronics together.” With advances in technology, home automation now can be accomplished device by device, whereas before it was “pretty much all or nothing,” West says. As a new device is added to the home’s automated system, its controls can be incorporated into the Control4 box. “The ultimate objective for the company is to be the platform for the home. It’s a lofty objective, but we’re well on our way.” Control4 is unusual among technology companies, West says, because “everybody relates to what we do. We can mold it in a way to make their life better.” Professional Services - Workers Compensation Fund The reach of Workers Compensation Fund (WCF) goes beyond offering insurance policies to 24,000 Utah companies. With one eye on the bottom line, WCF also looks to provide for workers, helping them while they are injured and striving to protect them with training programs. WCF began as a state organization, but now is owned by its policyholders, although “our purpose is to provide insurance to employers who can’t buy it from anyone else,” says Lane Summerhays, WCF’s president and CEO. Despite that directive, which by necessity brings high risk, the company has not only remained competitive, but, since 1992, it has returned $250 million in dividends to its policyholders and holds 56 percent of the market share, Summerhays says. He attributes the company’s success to its employees. “If you treat your employees well, they treat their customers well,” he says. In addition, WCF focuses on customer service, even forming an advisory council comprised of local business representatives who “help us understand how to better work to provide coverage at the lowest possible price,” Summerhays says. Injured workers don’t get lost in the corporate emphasis on cost control. Each person with a claim is assigned an adjuster who works with him or her through the process. Those with serious injuries also have a nurse case manager, who will accompany them to doctor visits, if necessary. Non-English speaking workers are also provided with translators. “We have taken a real interest in non-English speaking workers,” Summerhays says. “If they don’t understand the safety measures, they’re going to get hurt.” To help Utah’s non-English speaking workers, particularly Hispanics, WCF has created a Hispanic Affairs Department and was the title sponsor and co-organizer of the first employers’ safety training conference for the Coalition for Multicultural Workers, Safety, and Health. The event was held in January. Summerhays is quick to speak about the company’s community involvement, which ranges from WCF executives sitting on community boards to providing scholarships for the spouses and children of people who die in work-related incidents. “We try to make the community a better place,” he says. “We have worked very hard to be a company that is excellent.” Agriculture - Chanshare Farms For five generations, the Marble family has been involved with agriculture. When Boyd and Cheryl Marble looked for a sustainable way to continue that legacy 27 years ago, they decided to (as they put it) take a “chance” on turf and “share” the profits, using a combination of the two words to create the name of their company, Chanshare Farms. Today, their turf covers Soldier Hollow Golf Course and the University of Utah ball fields, as well as landscaping at the Church of Jesus Christ of Latter-day Saints Salt Lake Temple, the Salt Lake County Library and McKay Dee Hospital, among other venues. The family believes that their livelihoods are controlled and directed by their faith in God. “We start all our meetings with prayer and ask for direction in all we do. We depend on nature and have seen many miracles,” says co-owner Randy Marble. While Chanshare remains a family business owned by Dee and Randy Marble, day-to-day operations are run by a “brain trust” comprised of 16 managers, 10 of whom are relatives of the owners. Several of the managers have spent their entire lives working with the farm, while other have spent time outside of the agriculture industry and bring additional business skills to the company. This participative leadership allows the company to pull from more than 200 years combined experience in the turf industry. The company is dedicated to being a good steward of the land. As well as developing drought-tolerant turf, it offers classes on proper lawn care and water conservation at home shows, garden fairs and vendor shows. Although rooted in the past, Chanshare is thoroughly modern. The company has adopted the growing agricultural trends of custom-designed software, satellite-aided inventory control and automated self-stacking harvesters to streamline operations. “We have worked hard to build a company culture where we build on everyone’s strengths,” says Dee Marble. “We truly live by the philosophy that if we take care of ourselves, our families, and rely on our Heavenly Father, we will be empowered to take care of our business.” Financial Services - Zions First National Bank The oldest financial institution in Utah has accumulated numerous awards over the years, but it refuses to rest on its laurels. In the first half of this year alone, Zions Bank won the award for “Best Use of Conferencing – small to large cap” from IR (Investor Relations) magazine; was named by the U.S. Small Business Administration as an “Export Lender of the Year,” and was a finalist for the Utah Department of Workforce Services’ Work/Life Awards. “We encourage people to get involved in reaching out, to volunteer in the community, to make the community a better place,” says Scott Anderson, Zions Bank president and CEO. “It all gets back to our guiding principals. We create value for our customers, our shareholders, and employees. Our whole purpose is to create value.” For customers, that value is service. Anderson says it’s “almost an everyday occurrence” that he receives praise from customers about the service they receive, whether it’s an employee helping to change a tire in the bank parking lot or going to the airport with a currency exchange for a traveler. “We go out of our way to provide a solution. It is a trust between our customers and the bank,” he says. “If we don’t provide good service, people are going to go elsewhere. We want to distinguish ourselves in service.” Rather than rely strictly on traditional methods of banking, Zions has turned to technology to meet new demands. “We want to take advantage of technology products that better suit people’s lifestyle,” Anderson says. For example, in April the bank’s subsidiary, Zions Direct, began offering an online auction of FDIC-insured certificates of deposit. In addition, the bank is unique in the market in offering an online service for purchasing bonds that is similar to a discount broker, he says. “Zions is much more creative and forward thinking than people realize,” Anderson says. “We get high marks in the industry for our innovation and creativity. We look at every aspect, opportunity, products, services and technology that we can apply to see how we can be more efficient. It always comes back to creating value.” Manufacturing - Martin Doors A combination of Japanese efficiency and American ingenuity has driven Martin Doors to increase its sales percentage by double digits during the past three years, and also earn recognition for its cost-effective lean manufacturing. “In 1990 we had about 100 employees, about a third of what we have now, and I couldn’t get orders out on time,” says Larry Martin, the company president. “My phone rang all the time with catastrophes.” That situation drove Martin to examine efficient production systems such as those created by Shigeo Shingo. Martin Doors incorporated the Shingo principle of SMED (single minute exchange of die), which cut that aspect of production time from almost three hours to less than two minutes. Martin also expanded his research, reading other experts and eventually creating the Flo-Max Manufacturing production system. “It took 13 years,” he said. “We kept refining and refining and refining.” The result of that refining was a process that that allows a two-day turnaround for orders, freeing of 50,000 square feet of floor space and delivering shipments that are “99.98 percent on time. And my phone doesn’t ring,” Martin says. Doors can be custom-ordered in height and width by one-inch increments, with 10 different window options, mail slots, and 75 colors, all with a lifetime warranty. About 15 percent of the company’s product is sold outside the United States, and it has markets in 85 foreign countries. Even as the manufacturing process was being re-tooled, company owner David Martin came out with an ultimatum: He would no longer produce a product that contributed to the injuries 20,000 people suffer each year from garage doors. “He said he would shut the place down first,” Larry Martin says. “That got my attention.” As a result, David Martin engineered a number of safety factors such as the Finger Shield and safety hinges that keep fingers from getting caught in the sections of the door. These and other safety features are now standard on Martin Doors. “Since 1999, we have not had one reported injury in a Martin Finger Shield system,” Larry Martin says. Retail - Larry H. Miller Group As Larry H. Miller sees it, his success came step by step, starting with the first car dealership he owned. “Everything before that was just preparatory,” he says, while everything after that followed a pattern. “We were able through early success – even though by today’s standards somewhat moderate success – to leverage up into more opportunities and become what we are today. I’ve been extremely fortunate to associate with a lot of very talented people who can take large parts of the organization and handle them on their own, with very little oversight from me.” In the 28 years since he first became an entrepreneur, his business has grown from one car dealership in Murray to 43 in six states and broadened to include sports entertainment, movie theaters, a retail center and real estate. He acknowledges that the mixture may appear to be eclectic, but “I like to think that every element of it strengthens the rest. Even though sports entertainment doesn’t have a lot to do with the car dealerships, we use a lot of sports entertainment stuff to market the car businesses and vice versa.” His business philosophy has changed slightly over the years. Early on, his goal was “Take care of the customer, have a little fun and make a little money.” He’s refined that to “You have to have quality goods and/or services at a fair price, consistently delivered.” Through it all, though, one thing remains the same, he says. “People are still people and want to be treated as important individuals, both customers and employees alike. That’s the fundamental issue.” Having recently completed the Miller Motorsports Park near Tooele, “there is nothing else of major consequence that I have on my radar screen,” he says. “History tells me one of these days something will come along, but I don’t know what it will be.” Meanwhile, he and his wife, Gail, continue their charitable contributions. “Jobs and education are the things that we have chosen, along with family, to leave as our legacy,” he says. Real Estate - Kennecott Land “We have a long-term perspective,” says Peter McMahon, president of Kennecott Land. “We think about things through a prism of their social, environmental and economic impact. We are looking to build value – not just profit for us but in terms of the people living in the community.” That long-term view will be necessary. Build out of the 4,126-acre Daybreak mixed-use community is expected to take 20 years, while the massive West Bench project is anticipated to require at least 50. Kennecott Land has already shown its commitment to its philosophy. The company donated land to the Jordan School District for a second school site in Daybreak. Builders are mandated to install Energy Star-rated appliances. A retail/office segment recently broke ground, and the entire project is designed so that residents will have a walkable community. Although the company’s approach to the project was unusual, it paid off. Daybreak has averaged between 7 percent and 10 percent of all new home sales in Salt Lake County since sales began in 2004, according to the company’s statistics. “People want to live in a place that has a sense of neighborhood,” McMahon says. “They want easy access to amenities. They want a sense of safety and security. They want a variety of architecture, and a mixture of families in their neighborhood. They want parks and trails and retail. We deliver that.” Meanwhile, work has begun on the master plan for the West Bench project, which calls for development of 41,000 acres with 34,000 acres of open space and 58 million square feet of commercial space. In the next 10 years, Kennecott Land anticipates building three different communities, including the next phase of Daybreak, McMahon says. While the new communities will adhere to the Kennecott Land philosophy, “they will not be Daybreak clones,” he says. Location will dictate many factors, such as density and architectural style, he added. The secret behind the success is simple, he says. “Our distinguishing feature is that we focus on the front end. If you think things through and hold to it in execution, it will turn out well.” Tourism and Hospitality - Thanksgiving Point Fifty-five acres of gardens. A dinosaur museum. A working farm. The Tulip Festival, Labor Day Luau and First Feast. Cooking classes. A championship golf course. The growing list of enticements at Thanksgiving Point has brought visitors from every state and 23 countries since it was established in 1995. With the variety of experiences available, visitors often encounter an “I had no idea that was here” moment as they wander the grounds, says Thanksgiving Point CEO Mike Washburn. Membership in the Thanksgiving Point Institute continues to grow because “people connect with different parts of the property,” he says. “We have something that is unique in Utah that has incredible appeal. We provide a unique, hands-on experience for the young and old. Our philosophy is to engage with the guest in multiple ways that make them feel better about themselves and their life. You don’t go away exhausted, you go away uplifted. It’s relaxing, invigorating, engaging.” Employees are trained to engage their guests in every activity and seem to realize “they are part of something life-changing,” he says. “It’s a huge part of our appeal. The guests sense that.” In what Washburn calls a “unique model,” Thanksgiving Point supports its non-profit educational mission with the commercial aspects of the golf course, restaurants and catering business. “It is challenging, but there are opportunities.” He has capitalized on those opportunities. Guest visits have increased by 26 percent over the past three years, and during that time, revenues have increased more than 50 percent. New attractions continue to be added. Among the new events is this month’s Plein Air Art Festival, in which visitors can watch painters and sculptors create new works in the Thanksgiving Point gardens. The groundwork also is being laid to add a museum and indoor component to the Children’s Discovery Garden. “We have made a tremendous amount of progress, but we’re still getting established,” Washburn says. “In coming years, I think Thanksgiving Point will be appreciated more and more as a treasure, something people will come to Utah to experience.” Human Resources - CHG Healthcare Services With 1,200 employees and nine offices that place health care professionals in positions throughout the United States, “we are literally in the people business,” says CHG Healthcare Services President and CEO Michael Weinholtz. “Our product is actually people.” While CHG’s business depends on finding professionals to fill its clients’ needs, the company’s success arises from the focus it places on its employees, he adds. “Our number one core value is putting people first. We make every investment in our employees.” CHG invests in its employees in a variety of ways, from traditional recognition such as top sales awards to not-so-traditional acknowledgement of administrative staff. Employees also can take courses through the CHG University, in-house training that starts with basic task-oriented skills and extends to leadership development. “We are making an investment in the training so that employees can see clear career paths here,” Weinholtz says. “They know they can grow with the company.” A direct result of that training is that 85 percent of CHG’s managers were developed internally, and employees tend to remain with the company. “Our turnover rate is about half the industry average,” which has a positive affect on the bottom line, he points out. “Turnover has a high cost.” Weinholtz also attributes CHG’s growth, which is about three times the industry average, to the company’s workers. “We have motivated employees and great people, and the reason we out-perform the competition is because we have the best people. That’s how we secure more contracts and more health care professionals. That’s how we grow.” CHG is the umbrella company for six health care professional staffing firms, some of which were acquired by the parent company but retain their name because they had strong branding in the market, Weinholtz says. Nevertheless, each of the firms nationwide shares one core value. “We put people first. We recognize that people are our most important asset.” Construction - Ivory Homes When Ellis R. Ivory registered his company trademark, “Utah’s Number One Homebuilder,” in 1983, he recognized that Ivory Homes would have to strive to live up to that ideal. Since then, Ivory Homes has become the largest homebuilder by volume in the state, an achievement the company has held for 19 years. Last year, Ivory Homes completed its 10,000th home in Utah. However, quantity isn’t the only criterion by which “Number One” is judged. Six years after creating his trademark, Ellis R. Ivory introduced the company’s mission statement, the first part of which reads: “To build quality homes with lasting value.” In keeping with that statement, “we won’t buy a piece of property if we don’t think we can create a great community,” says CEO Clark Ivory. During the past few years, the company has shifted its emphasis from single family homes to building “Club Ivory” neighborhoods that include clubhouses, walking trails and other amenities. It also has expanded its product to cover the gamut of residences, from town homes to move-up housing to luxury residences. “Successful companies change, but their principles never do,” Ivory says. “Ivory Homes has gone through its entrepreneurial stage. That gave us vision and direction. There is no question that we have excellent principles. Now we focus on the five Ps: people, product, process, planet and profit. If we take care of the first four, then profit comes.” Ivory passes credit for the company’s continued success to “a great group of managers who are making it happen. It takes a team that has commitment to what a company’s all about to create value for homebuyers and communities.” The planet portion of the five Ps refers to Ivory Homes’ community involvement. The company donates both money and expertise to causes such as United Way and the Utah Food Bank. For example, it donated cash, materials and labor to build the Surgical Sort Center for Globus Relief, where volunteers sort donations of surplus medical supplies that are used for humanitarian missions worldwide. “We’re trying to help those who need a leg up,” Ivory says. Woman-Owned - Stampin’ Up Under Shelli Gardner’s direction, Stampin’ Up has grown from a home-based business to a $240 million multinational operation that sells decorative stamp sets and accessories through a network of independent sales consultants, all with a decidedly feminine flair. Even the company’s mission statement, which starts “To love what we do and share what we love,” reflects a woman’s touch. “Men have a hard time with that mission statement,” Gardner acknowledges, “but I believe Stampin’ Up is different because it is woman-owned. Women take a softer approach. We’re more sensitive to emotion and how decisions affect people. Men seem to be number focused. I have watched over the years as I have hired male managers, and when I make a different decision than they would have made, it takes them a while to see the benefit. But I need those key people because they balance things.” The company’s 40,000-square-foot manufacturing facility in Kanab is a conspicuous example of looking beyond the bottom line while making a decision. When the company moved its corporate office to Salt Lake City and then to Riverton, its board members let Gardner know that moving the manufacturing from Kanab would save money. But Gardner remained committed to the employees who had helped her establish her business. “They have been loyal, hard-working employees,” Gardner says. “Kanab isn’t an obvious choice of a place to spend a million dollars on a building. It was a huge, no-turning-back commitment. My husband and I know we could never sell that building or, if we did, we wouldn’t get as much as we put into it. But we wanted a nice building for our employees. They have been good to us.” Although the “woman’s approach” may not fit the typical business model, it is responsible for Stampin’ Up’s success, Gardner says. “The company grew by word of mouth. Women build relationships, and most of our demonstrators are women. We are more likely to buy something from people we know and trust.” Health Care - Intermountain Healthcare A study by Dartmouth Medical School on high quality, highly efficient health care placed Intermountain Healthcare in the same league as the Mayo Clinic. This emphasis on quality care comes from Intermountain’s mission, says President/CEO William H. Nelson. “Since we were founded in 1975, we have had a mission of excellence in the provision of health care services. That’s always been our focus.” While focusing on quality care, the Intermountain system of hospitals and health care providers improves patient outcomes while increasing efficiency; on average, costs at Intermountain hospitals are 18 percent lower than other Utah hospitals, according to the Utah Department of Health. Intermountain’s Advanced Training Program in Health Care Delivery Improvement attracts physicians from all over the world, who attend intensive seminars to learn how to implement similar programs in their own hospitals. Most recently, the organization partnered with GE Healthcare to develop a next-generation electronic medical records system. “There is so much more that can be done and that needs to be done to bring best practices into consistent application across the breadth of what we do,” Nelson says. “I think we do it as well or better as anyone else, but that’s not good enough.” On the practical side, Intermountain’s electronic medical records data system provides doctors with a patient’s history as well as information on the best methods to treat the person’s illness. “We can show very clearly that by bringing caregivers together to identify best practices, and then building clinical decision support systems electronically, we can significantly improve outcomes and reduce costs,” Nelson says. Applying this approach has led to significant decreases in deaths from community acquired pneumonia, complications that arise from voluntary induced labor, and the length of hospital stays for cardiac patients, the company reports. “Being a non-profit is critical in what we’re doing,” Nelson says. “Our priorities are simply the needs of the communities we serve.” Not having to be concerned about generating dividends for shareholders also translates into lower rates for the community, he adds. Intermountain is continuing its emphasis on the community with programs such as a “Live,” a program aimed at junior high school students to combat childhood obesity, and the Huntsman-Intermountain Cancer Care Program, which will bring cancer centers to locations across the state. |