The Power of People: Building a Successful Geographic Expansion Strategy
Recently named one of the best-managed companies by the Wall Street Journal and Deloitte, Lithko Contracting is a $1.8 billion concrete contracting firm with 22 locations nationwide. Named Regional Entrepreneur of the Year by EY, CEO Rob Strobel has led the 22-year-old company since its inception.
In our third episode of the Built-In podcast, FMI Consulting President Scott Winstead sat down with Strobel to talk about creating a great place to work and how to leverage the right people to expand and strategically grow your business.
“We developed a business model that was primarily focused around people and talent, Strobel says.” At the time, many of Lithko’s competitors employed workforces that travelled to their jobs, which can be hard on employees and families. “We wanted to create a model to keep folks at home,” Strobel explains. “We learned that if you’re going to be based in town, and if you want to grow and attract the best talent, you have to figure out how to replicate that talent.”
Adding Talent Town-by-Town
The vast majority of Lithko’s 22 business units (with the exception of seven) were added organically. The company recruits about 100 project managers and interns on an annual basis. Over the years, the company has developed what Strobel calls “a unique approach to lessen our dependence on unique people.”
For example, one of the company’s current employees was hired out of college and worked in Columbus, but later transferred to Tulsa as part of the company’s expansion into Oklahoma. The same person later moved to Oklahoma City and then to Dallas.
“Our mission is to grow and develop teams and then get operational, boots-on-the-ground capabilities in place,” says Strobel. “As we add capabilities, we also add talent that allows us to take on more projects, all while we add talent town-by-town.”
Rather than growing job size, Lithko has focused on geographic expansion and invested in people to help them meet the goal of being a $1 billion company, a goal that is now at $10 billion.
One secret to Lithko’s success is to focus on operations, whether it’s enhancing financial forecasts or improving talent development, Strobel works to make sure people have the tools and structure in place to do their jobs.
