August 22, 2024
Michael Traub, CEO, Stihl
Lessons From A $5B Family Enterprise Rebooting The Next Generation Growth, Michael Traub – CEO Stihl
Listen on:
Power tools are a staple of any garage whether you are a blue-collar worker, a hobbyist, or someone who has just bought a picture frame that needs hanging. Approximately 55 percent of Americans have at least five power tools in their possession, with a large portion of those people buying those tools during COVID-19, when we saw a spike in indoor and outdoor DIY home renovations.
Many companies like, DeWalt and Milwaukee, experienced that big spike—as did STIHL, one of the world’s largest manufacturers of chainsaws and outdoor equipment. Founded in 1926, Stihl is still a family owned company with a global network of 55,000 dealers in 160 countries and 20,000 employees who delivered $5 Billion in revenue last year.
The engine behind this growth is Chairman/CEO Michael Traub, who is with us for this episode of the Reboot Chronicles to get to the root of what makes Stihl successful, how they maintain their professional-grade competitive edge, the importance of making a product that is passed down from one generation to the next—as well as some great career advice and what keeps him up at night!
Keeping Competitive
The big question for any company that has been around for 100 years and had growth over that century is how it has stayed relevant. One factor that Michael points to is that “The family is very close to the business” and every generation is still working to keep that tradition running and maintain the trust they have built over the years.
On top of that, there is outside management that has come in and helped keep the business diverse. “Like myself,” Michael says “I’m not part of the Stihl family” yet he is the CEO and someone who has a lot of experience, and the trust of the Stihl family to direct the business. The last bit of the equation is in the fact that they are privately owned and “don’t have to follow quarterly rules and take costs out and cheapen the product.”
Staying True To Your Core Values
An interesting facet of the Stihl business model is that they are very choosey about who they distribute products through. For instance, they do not sell any of their products through Amazon, Home Depot, or Lowe’s. Michael admits “We could certainly be a much bigger company if we chose to expand distribution.” but they believe they have to maintain the core value of “the product is only as good as the service.”
Power Of Curiosity
As a CEO, a question Michael gets a lot is “How do you become a CEO?”. To which there is no succinct answer or equation. But one thing that will certainly set you on the right path is curiosity. Without a little curiosity to make you take that first step onto a different path, you are not going to grow. As Michael puts it “If you don’t want to step outside of your comfort zone, you’re definitely not going to reach CEO.” So no matter how scary or small a project or opportunity may seem, your best bet is to give it a try and learn whatever you can.
