Bryan Krieg
Case Western Reserve University - Weatherhead School of Management
Ron Fry
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Leadership that embodies values anchored in a caring and consistent belief system will sustain organizations through deep valleys and level very high peaks. Through a relentless shared vision to their “true north” the team at 5B’s is writing the story of their future by serving others first and watching out for mankind with Christian values.
“Our innovation was built entirely out of necessity. You see, the CBA’s are just as important as the ABC’s. If you can Conceive it, you will Believe it, and you will Achieve it,” stated founder Lee Biles. When the alloy plants closed leaving Lee unemployed, there were opportunities for him to continue his career overseas, but he rejected the idea stating, “I did not want to leave my family. The week after I lost my job, my brother came to visit me. We were sitting in lawn chairs out on the porch when he asked me what I was going to do, I said, I am going to start a sewing (contract embroidery) business.” Lee said his brother laughed so hard that he literally broke the lawn chair. But the very next week the two brothers were in an old Dodge Colt with the back seats out (for pick up and delivery) making sales calls to potential customers. Introducing their ideal of 3 day product delivery, on time delivery at the best quality and lowest possible cost, Lee promised his customers, “we are going to do this better than anyone else.”
The principles anchoring the business model that CEO & President, Todd Biles continues to refine are based on putting others first. Current day, 5B’s still leads the industry with a 3 day turn time from when the order is received, by placing customers first. A product could go from an idea stage to “on the shelf ready” for the customer in less than a week. Even though embroidery is considered an age old art form, 5B’s has leveraged the supply of embroidery through marketing, while satisfying production demand by innovative technologies, such as state of the art computerized equipment. The result is sustainable economic growth and decent work for many local employees while attracting top talent from other industries. To build further resiliency into their business, “screen printing will be the next big growth opportunity for the future.” Todd is looking beyond the traditional core supply of embroidery — to screen printing — as he leads the organization into the future.
“We have gained a lot of wisdom over the 37 years; it’s like earning a doctorate degree. To make all this reality, we do what we have to do every day. People react positively to kindness.” Lee stated that he goes on rounds in the plant every morning to say good morning to associates (what all employees are called at 5B’s) and acknowledge them. "It’s all part of our mission to serve God — to expand benevolence by paying associates on the high side of the range, rather than the low side, to be accountable, responsible, respectful, righteous, and to be kind." 5B’s realizes the need to achieve balance, “We only need so much, we have good people, we want make it better for our people through prosperity.” Todd echoes this same vision and respect for his associates, “I am working to increase wages by 10% this year and then again next year, with the target on the high side of the affordable range”.
Back in the alloy industry, leaning on his strong faith and family support, Lee worked through the organization as an entry level rank and file employee to Operations Manager overseeing 4 plants in the eastern US. Wanting to change the adversarial relationship between labor and management, recognize, reward, and respect his employees, Lee sought permission to offer incentives; his boss declined his request. Eventually, because of Lee’s persistence, he ordered 500 jackets on October 1st to be individualized with his employee names and the company logo. As months passed, zero jackets were delivered because the embroidery supplier repeatedly missed their delivery dates. Lee stated, “The union thought I was lying to them about the jackets and this made it all worse.” To fulfill the commitment, Lee and his wife Vicci bought their first sewing machine; Vicci learned how to hand sew the names so the order could be filled in January. On April 23, 1980, because of foreign imports, the plants closed and Lee lost his job. “I told Vicci, after what we went through with the jacket order, there is a business need and you took home economics. We are going to start June 1st.”
About 25 years later, the journey from one sewing machine in the basement eventually gave rise to 1,600 associates benefiting from 5B’s Mission. On path to achieving the vision was becoming reality; they leveraged the textile economy by achieving “best in class” as witnessed by winning many industry awards — diversifying and marketing into manufacturing and retail fueled the embroidery business. Todd recited all the stats during the steep growth period during the first 25 years, including double digit, unstoppable growth year after year.
As he reflected on what seemed unstoppable, he paused and said, “I could blame it on several things like NAFTA or China — but I think my best attribute is being responsible. We should have been prepared to deal with all the changes and positioned ourselves to limit the effect of the change.” It was at this time in the history of the organization that 5B’s was forced into reorganizing under bankruptcy. The effect was devastating as the business went from 1,600 associates to 48. Todd continued, “I am not sure how the worst thing could have turned into the best thing, but it was. It brought us back to center. I believe that it is times like these that we kept the faith and relied on our fundamental values as a guiding force to get us through.”
Chief Financial Officer, Chris Nash, “We were all left figuring out how to take a 1,600 person business down to 48, and survive. It came down to the resolve of the 48 remaining employees to bring us back to where we are today. We all did what we needed to do. I would run to the back to help unload a truck and then come back to the front and work on my finance work; we did this to preserve our family. Lee treats me like a son and Todd treats me like a brother. 22 years later, I am still here and I love it. They treat me with such respect.”
The impact of 5B’s mission continues to provide positive, sustainable business results, feeding economic growth while providing employment in a sector where associates can come to work every day and “win”. Further, their business model promotes sustainable industrialization by allowing room for personal development, promotion, recognition, reward, and respect.
“If it wouldn’t have been for dad and my family I would have thrown in the towel. My best experience is not a single point in time, it is the unconditional support of my father,” as Todd began to talk about the future. The discipline to their founding principles culminates into hard work, dedication and support for and from family, associates, and community. There are really no short term effects of their mission; because their foundation is there for “the long haul.” Even before 5B’s began operations, unconditional support could be seen within the family that reaches out to positively affect others. As Lee managed the alloy plants, the standard work protocol included a standing 6:30 morning meeting via conference call with all plants participating. Even as Lee was hospitalized for two weeks he continued the daily early morning meeting. This exponential effort (that is normal within this family) included his wife Vicci there with him every morning, taking the minutes.
Todd believes sustainability begins with exceeding expectations to external customers and exceeding commitments to internal customers. “We have built the infrastructure right here at home to take care of all of this. We provide a better value than our competitors. We understand what our customers need and we step up to the plate to when they need it. We have the lowest and best cost, we provide free freight, and we net zero spoilage and ship 100%. We have the vision and we are beginning to close the gap to that vision. A big part of that vision is coaching our associates to understand the goal.” Consistently applying the same principles that began the innovation in 1980 while demonstrating organizational alignment, Chris added, “People and our relationship with our people is the key to get the business back to where we want it to be. The shared adversity made us all come closer. I wouldn’t want to do this with anyone else.”
Benefiting from 5B’s Mission is a shared vision that forms consistency around achieving organizational alignment. 5B’s has demonstrated the resolve to a sustainable organization — in the beginning as a steward of few, to being multiplied to many, and the ability to sustain and level the high peaks and very deep valleys as their journey continues. Their desire to be “the BEST privately owned company in the world” is truly witnessed by their actions — all driven from the core by their belief structure. As Todd summarized, “Our goal is to exceed what we say we are going to do, to work hard, and to set a good example for others.”
The nature and heritage of the work has been preserved right here at home where so many companies have moved out of the United States. Aside from the economic value that a dynamic, profitable organization can lend to society, the desire of the 5B’s team is to build for the future; their mission holds them accountable. The words used to describe the future are slightly different from each one of the leaders, but all are in lockstep alignment with their true north. Lee sees the future beginning internally where “We are building relationships, appreciating people, and where everyone is showing respect for each other. Chris added, “My job, by looking internally, is how I can help our employees encourage each other and show respect for each other, and not only for the wages. I want to see young ideas developed.”
Todd, together with the team, is writing the story for the future 5B’s. “I want to be leading with way with products and value. We have to be intentional in the steps we are taking to forward the business, there is no room or no time to be taking two steps forward and one step backward. I want to set the example to always do the right thing for our employees while creating opportunity for them. I want the best opportunity for family, associates, others — for them to take advantage of. I feel great when I get to recognize the people who work hard and they seize the opportunity that is there for them on a daily basis.”
The shared vision that the leadership team at 5B’s began with is Lee’s CBA acronym. “If you can conceive it, you will believe it, and you will achieve it.” This team is living proof where positive images create positive actions. At 76 years old, Lee “still has stuff” that he wants to accomplish. “I am excited every morning when I get up; I want to be part of this explosion that our organization is about to undergo.” Included in every frame of the vision is the commitment to “continue our spiritual service while looking out for mankind.”
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Todd Biles, President & CEO; Chris Nash, CFO; Leland Biles, Founder, Todd Biles, President & CEO; Chris Nash, CFO; Leland Biles, Founder
