The Challenge: To improve sales and profits while evolving the corporate culture with people in mind.

The Solution: An improvement process and training initiative was created to focus on teamwork, collaboration, and creating worthwhile focus tied to performance.

The Results: Profits increased 85% in one year. In addition, employee retention and morale improved dramatically.

The Mudd Group, an exclusive automotive marketing company based in Cedar Falls, Iowa, and serving franchised car dealers nationwide used to be typical-a growing, sales-driven organization.

“The culture was ‘get something sold, and get it sold today,’” Jim Mudd, Sr. said. “In the process there were a lot of people slain on the battlefield. We went three steps forward, two steps back, and we were marginally profitable.”

Then, things changed.

Sheila Sartorius, the wife of one of Mudd’s senior managers, read Ken Blanchard and Sheldon Bowles’ best-selling book, Gung Ho! She suggested that her husband give it to his boss as a birthday present.

“I had received a copy from the Blanchard organization because I had filled out a customer survey,” Jim Sartorius remembered. “I hadn’t taken the time to read it, but Sheila did and she loved it. So that I wouldn’t have to give him my copy before I read it, I went to the bookstore and bought him his own. We both read the book over the weekend, and that Monday, Jim Mudd, Sr. gave copies to all of our department heads.”

Fast-forward a year and a half.

The three secrets of Gung Ho! are in action. Employees believe they are doing worthwhile work; they are in control of the goal; and they cheer each other on.

As a result, The Mudd Group has increased its net profits by 85 percent from first quarter 1999 to first quarter 2000. Employee retention is up and people are working harder, happier, and more successfully.

Recently, when the direct marketing department was relocating its offices, the company created a system called “Mudd Buddies” that teamed a non-selling associate with each member of the selling staff.

“Amazing things happened,” said Marijo Raecker, who randomly assigned the buddies. “As the buddies helped in ways from unpacking boxes to bringing flowers and baking cookies, new friendships were formed and our company became an even friendlier place to work,” Raecker said. “We’ve fine-tuned our hiring acumen,” Mudd Sr. said, “and we do a better job of matching people with the culture.” Employee prospects are given the book Gung Ho! to read before they are offered a job. When they arrive for work they have a good orientation system that explains how the work is worthwhile. In contrast to the pre-Gung Ho! era, employees participate in setting their own sales goals, and every other Friday is a Gung Ho! day when the employees cheer each other on. “One day I heard our marketing director tell a group of employees, ‘At The Mudd Group, we take responsibility for the people who work here. We’re here to help people grow.’ That gave me goosebumps,” said Mudd. “I’ve heard Ken (Blanchard) say you can’t have Raving Fans customers until you have Gung Ho! employees. We’ve been inspired by the people at The Ken Blanchard Companies^®, and we’re going to further enhance our relationship with the Blanchard organization as we go about making the impossible possible,” Mudd said.

Editors note: The Mudd Group began its implementation of the Gung Ho! secrets by reading the book, and are now preparing to take the process further through Situational Leadership^® II and Blanchard’s new Gung Ho! program