Do the Right Thing

I believe most remodeling company owners do their best to be ethical, upstanding businesspeople who are fair to all. But few have taken this standard to the levels that Schloegel Design Remodel has.

Jake Schloegel and his team in Kansas City, Mo., have worked hard to put ethical behavior at the top of their list of core values. These efforts were recently acknowledged by the Society of Financial Service Professionals, which awarded Schloegel the American Business Ethics Award, a national award recognizing commitment to ethical practices in a company's everyday operations, philosophies, and response to crises and challenges.

Schloegel says, “Ethics is nothing more than doing the right thing … being honest and truthful at all times. And we follow this philosophy through every part of our business.”

The company created a formal program in which an ethics committee meets twice each year to review the ethics policies, make sure they are fresh and pertinent, and discuss ways to make this pledge more tangible for the staff.

One way they do this is to troubleshoot difficult situations at company meetings: “What would you do if you found that a subcontractor's employee was stealing from the boss?” “How would you react if you discovered that a peer was using drugs on the job?” “What would happen if a sub offered kickbacks to a salesperson?”

“These are difficult, gray issues,” Schloegel says. “We want to make decisions easier by making these issues more black and white. We want everyone to know which decision would be the right one.”

They make sure that everyone does what they say from beginning to end. For example, Schloegel says many companies tell clients during the sales process that they only use the best subcontractors available. But when it comes time to actually choose a sub, price becomes a determining factor and a lower-quality sub may be chosen. “Because everyone knows that we deliver on our promises, we don't do this,” Schloegel says. “If we promise the best, we deliver the best.”

One tool the company uses to help employees make complicated decisions is the “four-way test” that Schloegel adapted from his Rotary Club. “We ask ourselves these questions whenever we're not sure.”

By creating an atmosphere of high moral ethics, Schloegel feels that his customers will look at his company differently. “Let's face it; our industry does not have the best reputation,” he says. “Anything we can do to change that is going to be a good thing.” —Victoria Downing is president of Remodelers Advantage, a national consulting firm specializing in the challenges of running a remodeling company, and home of Remodelers Advantage Roundtables. 301.490.5620; www.remodelersadvantage.com.