David Pugh knows how to say “no,” and
he’s taught his employees how to use
that often-dreaded word as well.
He knows growth for growth’s sake does-n’t do any good, so he makes sure they do
it the best way to benefit the company. As
chairman and CEO of Applied Industrial
Technologies, Pugh has helped take the
company to the next level by empowering
employees. He gives them the power to do
their jobs, permission to run the business
using their best judgment and the protection needed to assure they take risks in the
organization. This allows the employees to
know the company’s worth and to say no
to deals that don’t benefit the organization.
This outlook has changed the culture, and
trusting his people exemplifies true signs
of an entrepreneur.
It is also important to Pugh that he understands the needs of his customers and not
just those of his vendors. During the dotcom era, analysts challenged management about the lack of spending on e-commerce,
but Pugh hired college graduates and
imbedded them at the company’s customers to understand their needs so that
Applied Industrial Technologies’ e-commerce capabilities were just the right size
to meet its customers’ needs.
As a result of all his efforts, the company
finished fiscal 2006 with 15 straight quarters of year-over-year earnings per share
increases of 20 percent or more.
On top of his business commitments,
Pugh is dedicated to helping the community by fighting hunger and encouraging education. He served as the co-chair for the
2005 and 2006 Harvest for Hunger campaign. He also serves on the regional advisory board for the March of Dimes and
serves as the Midwest Region national
trustee for the Boys & Girls Clubs. His dedication to community service sets an example for all of Applied Industrial
Technologies’ employees, and he hopes that his dedication to philanthropy will
inspire his employees to get involved with
their own causes. And that’s all the recognition Pugh wants for his efforts.
HOW TO REACH: Applied Industrial Technologies, (216) 426-4443 or www.applied.com