Davey Tree Flipbooks

135 134 Growth Rings Business also benefitted in 2008 from storm work. At the peak of Davey's response during the hurricane season to hurricanes Gustave and Ike, more than 1,200 employees worked to clear storm damage from affected areas. e company took measures to combat the economic downturn. Davey gave modest raises to employees. Bonuses were paid out. e company hired people where necessary, and promotions also continued. Capital was allocated to grow on existing business, and sales and marketing strategies were elevated on the priority list. As Warnke pointed it out in a 2017 interview, the company management essentially refused to recognize the recession. Instead, they focused on bracing for its effects by planning a forthcoming rebranding initiative and the establishment of the company's strategic plan. Like it had during the Great Depression, Davey Tree relied greatly on employees on the ground to keep the company running strong amidst one of its greatest economic challenges in its 137-year history. Whether it is R/C, Utility, CLS, or DRG, the operations field management has always played the critical role of ensuring revenues and profits are delivered according to expectations. rough the experience of veteran field managers, Davey was able to pull out of the economic downturn and quickly position itself to take advantage of newly created opportunities in all markets. is strategy of executive management proved to unfold according to plan. Davey Tree moved forward more aggressively than it ever had prior to the recession. Revenue had been climbing as Davey experienced extraordinary growth, especially in R/C, Davey Resource Group consulting services, and Commercial Landscape Services. Utility markets were stable, as is usually the case during economic fluctuations. Total annual revenues for 2008 rose by about 18 percent, or roughly $90 million in growth, in the middle of a national financial crisis. Warnke attributed Davey's unyielding nature during this challenging time largely to employee ownership. "Employee ownership at Davey has been a tradition," Warnke told e Davey Bulletin in 2009. "It also has been an essential part of the company's success in the past. But perhaps most importantly, employee ownership will serve as a catalyst for Davey's future endeavors." Warnke also pointed to Davey Tree's carefully developed succession planning as another reason why the company was positioned so strongly to enter the recession. In 2004, past and then-present members of the Davey President's Council gather for a group photo with past executives and board members. In June 2007, the council was handed off to Karl Warnke, who immediately reassessed the program with assistance from current council members. A more challenging and involved agenda was established requiring homework assignments that were evaluated, oral presen- tations, research and management interaction addressing timely company issues that were not being resolved. e intent was to produce tangible results that could be either a solution or starting point for management to actively address unaddressed gaps within the business as identified by council members. Additionally, council members worked directly with non-council management and both were held accountable for results. Many programs that were faltering in the company received priority attention and new initiatives were accepted by a number of departments and operating groups throughout Davey. e Davey President's Council in 2007. Members of the 2007 council were Brian Borkowicz, Scott Wyatt, Dennis Dotson, Vance Nall, Tom Bowman, Bill Whitmire, Charles Chapman, Marvin Hassell, Bob Burns, Mark Turnbull, Ken Joehlin, and ea Sears. Members of the 2017 council included Brian O'Niel, Damon McKissick, Greg Myers, Jason Evans, Ken Clear, Kevin Dykstra, Max Walter, Michael McCollum, Phil Snyder, Scott Carlin, and John Tokarczyk. "We took much of the 1980s and 1990s to get our ship in order," he recalled in 2017. "Getting the right people in the right positions, getting a succession plan developed, to the point where we could focus on our markets and expanding our high-margin businesses. […] e recession coincided with a brief pause in the succession process, but we had all the right people in the right places." Davey employees had reason to celebrate in 2009. at year marked 100 years since the founding of D.I.T.S., Davey's flagship training program in biological sciences, safety, tree and plant care, and management techniques. It also marked 40 years since the Davey Company had acquired the Davey Tree Surgery Company. And it was the 30th anniversary of the employee acquisition. When Cowan retired as chairman in 2009, Davey's board of directors elected Warnke chairman of the board after he guided the business through the company's biggest challenges in the past 30 years. Warnke recalled seeing the company succeed despite the faltering global economy as one of his proudest accomplishments during his leadership tenure. "When you have a challenge, that's your time to shine," Warnke said. Chapter 8

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