Fred Pond once had a management consultant talk to some 20 Ridge Tool Co. executives about management practices. The consultant claimed he could prove that some in the group really didn’t know what the company strategy was.
Pond, who serves as president, gave the consultant the go-ahead to test his theory. He prompted the executives to write down the Ridge Tool strategy: “Don’t look at each other. Just write it down,” he instructed.
When the consultant collected the answers, he was the one who was surprised: everyone captured the strategy perfectly. Pond was not only amused with the response but also proud of the validation the exercise revealed.
Today, he recalls this to reinforce how crucial it is to have executives and employees all on the same page as challenges and opportunities emerge from business cycles, new technologies and global markets.
The Ridge Tool, manufacturer of more than 300 RIDGID® tools in 4,000-plus models and sizes, was founded in 1923 in Elyria. In 1943, it relocated to its Clark Street headquarters in Elyria, where there are currently 17 acres of R&D, marketing, sales and manufacturing — all under one roof. RIDGID® became a wholly owned subsidiary of Emerson Electric Co. in 1966.
The kind of growth and evolution the company has seen is not without its challenges, and Pond has helped lead by assuring every employee understands their role in improving the company.
“It’s important for everyone to know and act upon what is essential for our business to thrive,” he says. “Communication insures your strategy takes hold … it has to become part of your culture and employed every day.
“We have three elements that guide planning and execution throughout the company and an exceptional management team that brings it to life. This overarching strategy is designed to support an ‘all-in’ outcome, with each element supporting the next.”
Pond explains it simply: “I call it the rule of threes, and tell our people, if we only do one of the three, we fail. If we do two, we have a chance. If we execute on all three, we win. They are interconnected, interdependent elements in that each supports the others.
“From my perspective, strategies with 10 or 12 elements are difficult to assimilate. It takes effort to boil down what is truly important for the future of the business into essential, actionable elements. Three key elements seem right, at least for us. My advice to our leadership: If you’re doing anything in this company that does not relate to any of these three elements, stop. It isn’t doing anything for us.”
Here’s a look into a three-point strategy that drives the nearly 2,000 Ridge Tool employees around the world in assuring RIDGID® remains the industry leader in pipe-working tools. It’s all about positioning the firm for growth, strengthening customer and distribution partner relationships, while adopting technologies and practices to be efficient and agile.
