Get buy-in at the top
Communicating with shareholders and board members was
also a vital part of Davis’ turnaround plan for Bob Evans. After
all, measurable change was going to take time and shareholders had already run out of patience with Davis’ predecessor.
“One of the first things I did was visit some of the top shareholders,” Davis says. “I said, ‘Here are my thoughts on the business. Give us time to craft a strategic plan.’ When we came back
with the Brand Builders, I think they saw we were serious
about performing. Then, when the results came, that spoke
loudly.
“The best way to earn the support of shareholders is to show
progress in operating results, and our Brand Builders generated improvements shortly after we implemented them.”
As for the Bob Evans board of directors, Davis was careful to
get alignment with them on the direction he was sailing before
he got too far.
“You have to make sure you have a direct line with the
board,” Davis says. “Change starts at the top.”
Board members were very receptive of the Brand Builders
concept, and together with Davis, they crafted a five-year
strategic plan to further solidify Bob Evans’ course.
“Everybody rallied around it,” Davis says. “We are headed in
the right direction today.”
So where would Bob Evans be today if Davis had not taken
control and set a clear, performance-centered direction for the
company?
“It’s hard to speculate,” Davis says. “The business didn’t get
to where it was overnight. I kept reminding myself of that. I’m
just proud of our team and our company for galvanizing as
quickly as we did and moving in a better direction.”
The clearly humble Davis says what he has done with Bob
Evans isn’t so extraordinary. It’s basic change management.
“You start with a plan, you communicate it, you get alignment
from your key stakeholders and your board, and then you don’t
waiver,” he says. “You have to keep driving it.”
There is, after all, still a long way to go.
Although sales and net income are still plodding along, same-store sales have rebounded into the positive column and cash
flow has improved dramatically. So much so, in fact, that the
board of directors has authorized the repurchase of up to 3 million shares during fiscal 2008 on top of the 2 million shares
repurchased in fiscal 2007.
Shareholders are regaining confidence in the brand, and
employees seem to be encouraged, too.
“I’m seeing people smiling a lot more,” Davis says. “It’s a reaffirmation that we’re at least trying to move in the right direction.”
But it’s just the beginning.
“I’m one of those happy-but-never-satisfied guys,” Davis
says. “You can never rest on your laurels and think your turnaround is complete. There’s a fine line between positive and
negative sales, so you can’t become the least bit complacent.
There are a lot of external factors out there. You have to
always be on your game.”
Still, the progress he’s seen is encouraging.
“When you see it work, it’s so rewarding,” Davis says. “When
you sit in a meeting, we’re not challenging which direction
we’re going anymore, we’re challenging the best way to get
there.”
HOW TO REACH: Bob Evans Farms Inc., (800) 272-7675 or www.bobevans.com
