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In this episode of The Leader Show, Lou Carter interviews Chris Keffer, President and CEO of STIHL. Chris talks about his “platinum rule” of treating people as they wish to be treated, the significance of communication, objective alignment, and the value of relationships with stakeholders. He highlights the presence of quality leadership, continuous improvement, and the influence of family values and entrepreneurial spirit on STIHL’s success.
Additionally, Chris stresses the importance of customer experience and dealer roles, concluding with appreciation for his team’s role in the company’s achievements.
Greetings, everyone, and a heartfelt welcome to yet another insightful episode of The Leader Show with Lou Carter. We are joined by Chris Keffer, the President and CEO of STIHL. STIHL is a leading manufacturer of power tools for various sectors, including forestry, agriculture, and construction.
STIHL is ranked 85 America’s Top 100 Most Loved Workplaces in 2023, operating as a vital part of the global network from Virginia Beach and supplying products to over 100 markets worldwide.
Chris, with his extensive background from Stanley Black and Decker, is noted for his strategic, customer-focused leadership that is guiding STIHL towards innovative solutions and an enhanced omnichannel approach to customer service.
In this episode, we’ll explore Chris’ vision, expertise, and commitment to maintaining a certified Most Loved Workplace. We’ll also take a look at the company’s culture, Chris’ personal beliefs, and his contributions to STIHL.
So, without any further ado, let’s jump in!
Firstly, Lou and Chris discuss the principles and practices that have contributed to STIHL’s success under Chris’ leadership. Chris highlights the importance of his “platinum rule” at STIHL, which is centered around treating people how they want to be treated, emphasizing a customer-centric and employee-focused approach.
Additionally, Chris elaborates on the STIHL’s robust communication strategies, including monthly leadership stand-ups and quarterly all-employee meetings, which are pivotal for aligning everyone with the company’s mission. These practices are crucial for ensuring that all employees are well-informed and aligned with STIHL’s goals, thereby fostering collaboration and driving growth.
Next, Chris elaborates on the significance of his open-door policy and the broader ethos of presence, accessibility, and engagement at STIHL. He emphasizes the necessity for leaders to be physically present not only in the office but also on the ground and interacting with employees and stakeholders. It ensures that the strategic goals and narratives are not only communicated but are also understood and acted upon through direct interaction.
Additionally, Chris highlights the importance of being accessible to everyone, from employees to dealers, and stresses the value of community and collaboration. He draws a parallel with Bernie Marcus’s vision for Home Depot, focusing on the symbiotic relationship between the company, its suppliers, and the community.
This holistic approach extends to active participation across all locations where STIHL operates, including engagement with local governments, charitable organizations, and educational initiatives.
A specific example Chris mentions to illustrate this approach is STIHL’s involvement with local high schools in STEM programs, where students are invited to participate in product development processes through summer camps. This initiative promotes community, collaboration, and innovation, highlighting STIHL’s dedication to enhancing education and advancing manufacturing and technology in the United States.
Moving on, the speakers explore STIHL’s commitment to supporting American jobs and fostering a community of learning and innovation.
Chris mentions the significance of experiential learning for STIHL employees and high school students, highlighting how internships enhance recruitment and support talent acquisition strategies.
The discussion also touches on the importance of maintaining a positive and enthusiastic environment for both employees and dealers, recognizing the value of sentiment and emotion in the workplace. Chris points out that user-centric innovation is pivotal, and dealer feedback plays a crucial role in enabling STIHL to adapt and improve quickly, thereby maintaining a competitive edge.
Furthermore, he delves into the concept of a growth mindset, crediting Carol Dweck for the ideology. It is highlighted through the practice of soliciting feedback from employees and dealers, focusing on continuous improvement rather than assigning blame.
Chris also underscores the importance of communication, especially during tumultuous times, to ensure everyone is aligned with the company’s strategic goals and objectives. According to Chris, it is facilitated by leveraging insights gained from surveys to address areas for improvement, embodying STIHL’s commitment to a culture of ongoing development and excellence.
After that, Lou expresses curiosity about Chris’ philosophy on staying connected with customers.
Chris responds by highlighting that direct interaction with customers is imperative as it helps understand their needs and adapt to market changes, which cannot be achieved solely from within an office.
He mentions that STIHL’s approach to staying close to customers is a core competency developed over decades, facilitated by an organizational structure that supports easy access to users and dealers. This strong foundation of relationships and an emphasis on listening are key to STIHL’s strategy for maintaining customer satisfaction and driving business success.
Chris and Lou discuss how STIHL, despite its size and global presence, retains the core values and operational approach of a family business.
The former points out that the company is privately owned, not influenced by private equity, and maintains close connections with the founding family. These relationships and the family-like culture within the company are crucial to its long-term strategic vision and commitment to quality and service.
Lou draws parallels between his family’s insurance agency, established in 1928, and STIHL’s approach to building trusted, personal relationships within the community. This comparison underscores the timeless value of trust, respect, and a sense of belonging in business operations.
Furthermore, Chris highlights STIHL’s nearing 50th anniversary in the U.S. and its century-long legacy of innovation and founder Andreas Stihl’s entrepreneurial spirit. He highlights the company’s focus on understanding and solving customer problems and a steadfast commitment to family values and dealer support.
This blend of innovation, tradition, and customer-centricity is identified as STIHL’s competitive advantage, embodying the company’s entrepreneurial spirit that is celebrated and rewarded.
Moving on, Chris discusses the diverse ecosystem of stakeholders that STIHL engages with, emphasizing the importance of delivering quality products and unmatched service. He highlights the company’s interactions with employees, their families, dealers, and users who rely on STIHL’s products for their livelihoods.
Chris points out that STIHL products’ durability, reliability, and performance are critical to fulfilling these stakeholders’ needs. Moreover, he emphasizes the paramount importance of service, primarily delivered through STIHL’s network of servicing dealers, which forms the foundation of the company’s commitment to its stakeholders.
By focusing on producing premium-quality products and backing them up with exceptional service, STIHL ensures a win-win situation for all involved. Thus, it enhances user experiences, provides opportunities for dealers, and reinforces the company’s reputation in the marketplace.
Chris encourages people to experience the unique buying process and customer service offered by STIHL dealers, showcasing them as testaments to the company’s dedication to excellence and stakeholder satisfaction.
As we reach the end of the discussion, Chris elaborates on how STIHL’s culture fosters exceptional customer service. He credits the company’s success to core values like continuous improvement, customer focus, and entrepreneurial spirit, which inspire the team to embody and apply these principles daily.
Chris hints at a process-oriented approach at the dealer level that enhances the buying experience, facilitated by both STIHL’s tools and additional resources designed to engage customers in a meaningful way. While he remains reserved about the specifics of these processes to maintain competitive advantage, the emphasis is on delivering value in a way that differentiates STIHL in the market.
Thank you for your time!
