Second Generation reinvents Clune & Company

May 2, 2008

Source: Clune & Company

With Kevin Clune, president of 50 year old Clune & Company, at the helm there is no "coasting".  While some second generation owners of family firms may struggle to display their entrepreneurial spirit, Kevin Clune has challenged himself and his company, an equipment leasing firm, to reach the next level.  And reach the next level they have with the company recording a 25% growth rate over the last 12 months - their 50th year in business.

Kevin has worked very hard since the initiation of the 1991 retirement and succession plan of founder Bob Clune.  At that time Kevin took over the business as majority owner and chairman and since 1999 has been operating solo.  Clune has been successful in bringing this 50-year old company into the 21st Century. 

12 months ago Kevin took a hard look at his business. "The marketplace had changed drastically over the last several years," Kevin emphasized.  He continued, "I wanted Clune & Company to be at the top of our game and the days of business coming in the door of its own accord were dwindling."  Kevin knew he was not going to be able to take the leap to the next level by himself and he believed that the aggressive firms, those willing to change how they did business and those willing to employ state-of-the-art technology would be successful.  At that time Clune needed to both increase its sales volume and its own efficiencies.

Kevin decided to tap into his network of professional contacts and peers to seek their advice.  After reviewing several recommendations he brought in a highly regarded strategic planning coach who has been working hand-in-hand with the employees to define goals, set strategic plans and work under a team concept.  Many entrepreneurs may know their firm needs to change but they need assistance in defining where they are today and creating a plan of action for the future.  "When you're extremely close to a situation it is often difficult to get a clear picture of where your opportunities are," says seasoned strategy consultant Rob Dowdy of ProStrategist.  "With Rob's assistance we undertook three main strategic tasks; we immersed ourselves in the total teamwork concept, we set company objectives and action plans and we began an initiative of sharing key financial metrics," states Kevin Clune.

Each of these three steps constituted a major shift in how business had been conducted at Clune.  The firm moved from an autocratic organization to a learning and teamwork centered group.  Decision making and accountability were decentralized with employees forming teams and assigned to various goals.  Converting from an autocratic business philosophy to a decentralized, team-based concept was a big step.  "I had always been open to my employee's ideas and even encouraged them but I realize now that the knowledge and incentives for them to think and act accordingly were not there," reflects Kevin.  In 2006 Clune initiated a profit sharing plan.  "It's an exciting time," says Tracy Galvin, operations manager.  "We have all been given the opportunity to make a difference for the company and to benefit from our contributions." 

Strategic planning was the next step and consisted of setting objectives, developing action plans and then making people responsible and accountable for implementing and attaining these plans.  With Clune's decision making process becoming more decentralized, employee teams were formed and were made responsible for projects ranging from cost cutting to selection of leasing software. 
*more*

Each team meets monthly to report their progress and refine their action plans.  One result from these efforts was that Clune realized they needed to pursue niche markets.  Two niche markets they now service are the commercial printing and commercial lawn service industries.  "We have such a need for reputable leasing services in the reprographics industry," says Jim O'Keefe of Napco Corporation, based in Lyndhurst, NY.  He continues, "Since we've been introduced to Clune and their products we've been able to better meet the need of our customers."  Additionally, personal customer contact is recognized as a priority in a service industry.  To that end, Clune is expanding their survey process to include all new lessees and has planned to launch a post card and e-mail marketing campaign. 

Kevin also realized that to truly engage his staff he needed to pull them into the fold and share the company's key financial metrics.  "When you have a family business, opening the books is a scary thing to do," says Kevin.  He continues, "I knew, however, if they were informed, our staff would be enabled to make better decisions."  Monthly company meetings are now held to disseminate company metrics and discuss issues and opportunities.  Throughout this strategic process Clune became a leaner firm; reducing costs and actively driving new products to market.

In 12 short months Clune has metamorphosed into a lean sailing machine. "I have the best, well seasoned team out there and to see the incredible creativity and dedication is just so exciting," Clune recently stated.  Today Clune employs a multi talented and long- tenured staff of sales and leasing agents, three of whom have earned the designation of CLP, Certified Lease Professional, the industry’s prestigious professional designation (there are less than 200 CLP’s nationwide).  Clune's growth rate has leapt off the page with double digit figures for the last 12 months.

So what does Kevin have in store for the future?  "We will continue our team-centered concept," Kevin states.  He continues, "We plan to have new teams that soon will be rolling out a new graphic look for our firm, we will launch a direct mail campaign, our website will be revamped, we will continue to look at advances in technology and we will always be responsive to our customers' needs."  Tom Terry, Senior VP of UMB Bank states, "Kevin has always done a great job in keeping Clune ahead of the curve in both technology and innovations.  Additionally, his business ethics and high level of integrity help set his firm apart." In reflecting on his firm's success, Kevin states, "We've moved our company into the 21st century but our success is still based upon the business principles I learned from my father."

Kevin Clune is a member in good standing and has served on numerous committees of the ELFA, Equipment Leasing and Financing Association, the UAEL, United Association of Equipment Leasing, and the NFIB, National Federation of Independent Business.  Clune supports their industry through membership and contributions to the Equipment Leasing and Finance Foundation and offers support to the community at large with contributions and support to Rockhurst University where Kevin sat on the board of Regents,  Homes from The Heart, Challenged Athletes Foundation, Muscular Dystrophy Association, DeLaSalle Education Center and the Community of the Good Shepherd.


Submit a Company

Submit News

Submit a Job

Submit an Event