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Replacements Ltd.

It's not just about selling old dishes

A funny thing happened after I interviewed Replacements Ltd. founder and C.E.O. Bob Page.  I was e-mailing my friend Heather and she told wrote me the following note:

I know Replacements!  Please let Bob know that his staff were able to identify the pattern and get me pieces of my discontinued glassware that I had long been hunting for, based on a digital photo of that I emailed them.  I was thrilled, as I didn't even know the name of the pattern.

It is one thing when the C.E.O. tells you that their company is customer-focused, it is very different when one of their clients tells it to you totally unsolicited.

 “Our culture is very focused on the customer.” explains Replacements Ltd. founder and C.E.O. Bob Page.  “I grew up on a small tobacco farm and we were very poor.  There were 4 kids in a 3 room house with no indoor bathroom.  Even though we were poor, we helped others.  Truth and honesty were important values.  These are the values that we used to build Replacements Ltd.” comments Bob.  “Even at Christmas, which is our busiest time, we were able to process all of our orders by the holiday with a very short turnaround time in some cases.”

In addition to being a good example of a customer-focused culture, Replacements Ltd. has built a unique culture because of the leadership of its founder.  In addition to growing up poor, Bob Page is a gay man.  “Being a gay man, I have learned to become sensitive to others.” comments Bob.  “And our culture also reflects that.” 

With 100 gay and lesbian and over 20 nationalities represented, Replacements Ltd. is proud of its promotion of diversity.  “I don’t have to like what others do in their private lives but I am not judgmental.  As long it doesn’t interfere with their performance.”  This management philosophy helped earn Replacements a perfect score on the 2008 Corporate Equality Index. The annual survey by the Human Rights Campaign Foundation in Washington rates companies based on non-discrimination policies and other factors.  They join a list that includes Nike and Apple.

How to Build a Diverse and Engaged Culture

Objective performance measurements  At Replacements, people are promoted and rewarded by a set of objective criteria based on turnaround and customer satisfaction.  “If we have issues of performance,” says Bob, “we communicate very clearly with the person what the issue is and then give them an opportunity to address the issue.  We provide them with multiple opportunities and warnings before we make the decision to let them go.”

Enforcing no tolerance policy  “We had one person who made derogatory remark to one of our employees about blacks.”  recalls Bob.  “That person was fired immediately.  People value each other as well as their customers.  Respect is an important part of our culture.”

The hiring process  In order to maintain the culture, candidates are screened very carefully.  Everybody who applies to Replacements is told very clearly that they are owned by a gay man and that they have a very diverse background.  “If they cannot deal with it that is okay.” says Bob.  “Better to know it now then after they start.”  In the war for talent, this also attracts and engages people.  One man even moved from California to Greensboro just to join at Replacements so he could work in an environment that would accept him for who he was. 

Walk the Talk  At Replacements Ltd., values are not just talked about they are acted on.  Even though Bob Page grew up poor, his family always was there to help others.  This commitment to the community is evident as Replacements.  “Community builds the team.” comments Bob.  “We have 1 person on payroll whose sole job is to be in a community liaison in Greenboro.  He is very involved in the school board and such organizations as the United Way.  Also, because he is gay person being gay and visible he helps dispel many myths that people in the community have about homosexuals.”  Employees are encouraged to join volunteer and given time to do it.  Replacements has been involved in a number of different organizations and charities in the community.”

The Bottom Line
Replacements provides such other perks as partner benefits, which cost the company very little but have a profound impact on engagement.  How does culture affect profitability?  Even though the tableware industry has been in turmoil over the past couple of years, with a number of bankruptcies and mergers and sales down 15% over the past year, Replacements Ltd. has actually grown by 12% in the same period.  Building a culture that embraces true diversity, people not being afraid to be different, show them the respect that they pass on to their customers.