Ralph Roberts is the President of Worthington Industries Integrated Building Systems. 

He took a moment to talk with Kathy Hoyt and discuss the role of business relationships in his success and the success of Worthington Industries.

Kathy: How has your approach evolved throughout your career?

Ralph: I’ve seen the full spectrum from concentrating on personal relations to company centered Value Propositions. 

In the economic down turn in the 80’s the personal relationships were being limited due to less money being spent on entertainment.  The shift went to B2B relationships and became more professional. 

Relationships are being replaced by associations and event shows instead of a high concentration on “entertainment”. 

Today it’s about how your business value systems are similar to your customer’s business relationships value system so you can work together.

Kathy: Who helped you develop these skills?

Ralph: When I first started Worthington Industries 37 yrs. ago the company was small so I had access to the Executives.  These Executives had a strong customer focus and I saw them dealing with customers on a daily basis. 

The WI Philosophy was already in play and was being demonstrated in the contacts with customers.  The philosophical needle was very important in all areas of the company and an esprit de core was developed and lived.

Kathy: How have the skilled contributed to your success?

Ralph: The skills applied to all aspects of the business.  The philosophy was driven throughout the organization. 

You got put into situations and had to deal with it.  There were no training programs so you had to figure things out for yourself.  Some survived and some didn’t. 

The common values were the deciding factor.  When faced with a tough decision, I did the following steps: 

1. Calm down
2. Read the (WI Philosophy) card
3. Take 10 minutes to think about it
4. Read the card again

 The Philosophy card “taught” you the skills you needed.

(Note:  When Tom Peters interviewed John H. McConnell there were no written policies in place – only the Philosophy card!)

Kathy: Can you think of a time when the relationship saved the customer?

Ralph: The Tenneco Company had had a relationship with Worthington that wasn’t so good.  When we called on the purchasing manager he said he would never to do business with us again. 

After repeated calls over a period of two years, we were finally able to rebuild the relationship by showing them we could add value to their company.  It turned out to be one of our largest contracts.

Allen Bradley was a targeted account for us and when first contacted, the said “no.” The account manager was instructed to call on them every 6 weeks, develop the relationship, show how WI could add value. 

Our reasoning was eventually they will get in trouble and when they do, we will be there to help.  It worked.

Kathy: How is business relationships managed as a core competency?

Ralph: Today the Philosophy is formally introduced in the orientation program and is reinforced through all facets of training and interactions. 

Look at the card to make a decision.  We also use the TIPS process we learned through S4 to improve our listening skills and really understand our customer’s needs. 

In 2008, we started a “Transformation” that brought teams together to become more efficient.  Customers are seeing improved quality, service and cost effective solutions. 

When customers tour the plant, an operator is able to talk to the customer and tell them exactly what they are making for that customer.  Customers feel good that WI is doing all it can to improve quality, service and cost.

Kathy: When did the relationship cause you to lose a sale?

Ralph: I had a great relationship with a customer and thought he would never take away his business but he told me that we weren’t competitive with our pricing.  Just because you have a great relationship you have to remain competitive. 

He gave all his business to a competitor!  A good business relationship is good to have but not enough to keep the business.

Kathy: What advice would you give about building relationships?

Ralph:

• Get a good mentor. 
• Be a student of the people around you. 
• Be a student of business tapes and books. 
• Get outside professional stimulus so you can think broader and provide an edge for your company. 
• Take away a few good ideas from the things you are exposed to.

 Kathy: If you could give one piece of advice, what would it be?

Ralph: How well do you know your top 10 accounts?  Not the statistics and number but what is their growth plan, fears, and can you help them meet their business goals. 

Can they articulate how Worthington Industries is helping them?  There should never be any surprises in working with one of your top 10 customers.

Kathy: How has the economy effective business relationship?

Ralph: There is now a new normal.  Employees are being cut from the work force and organizations have to go deeper than they would like just to stay in business. 

Trust gets hurt and will take a long time to recapture it.  Some companies have had to cut the number of suppliers they are using just for economy of scale – even if it was a good relationship. 

In some cases, some of the preferred suppliers have gone out of business forcing them to buy from a company they might not like. 

Companies are worried about the financial stability of the suppliers even if the relationship is good. 

These are very trying times but it will come back.  As the market comes back WI will be well positioned because we have quality products, a quality company and financial stability.

Ralph Roberts has been with Worthington Industries for 37 years.  He currently serves as President of Worthington Industries Integrated Building Systems. 

He serves on the Boards for Worthington Armstrong Venture (WAVE), ThyssenKrupp Steel and Worthington Industries (TWB) and Spartan Steel Coating for Worthington Industries.