An Interview With Chad Silverstein
Financial Stability. The power of ESOP is fully realized when we achieve financial success. To support the ESOP and its long-term benefits, we established a robust financial foundation. Everyone at the company can contribute to our financial health, and it is the leadership’s responsibility to provide opportunities for employees to make an impact in this area. It takes everyone working together to optimize our financial standing and ensure the success of our ESOP.
In a business landscape increasingly marked by employee entitlement and corporate greed, Employee Stock Ownership Plans (ESOPs) stand out as innovative outliers in business succession. ESOPs not only secure business continuity but also spread the wealth, tying a company’s success to employee well-being. This approach shifts the corporate success narrative towards participation, engagement, transparency, and collective prosperity.. I had the pleasure of interviewing Carolina Weidler & Susan Dwyer.
Carolina Weidler:
As Co-CEO at Hendy, Carolina provides innovative leadership that unifies the company’s people, culture, and projects, driving the overall vision, growth, and direction alongside Susan Dwyer. With nearly 20 years of domestic and international experience and a Lean Six Sigma Black Belt, she oversees Hendy’s Science and Technology Studio, ensuring high-performance workplace environments. Carolina holds a bachelor’s degree in architecture from Pontificia Universidad Javeriana, Bogota, and a Lean Six Sigma Black Belt from Villanova University.
Susan Dwyer:
As Co-CEO at Hendy, Susan oversees day-to-day operations and drives the company toward long-term goals alongside Carolina Weidler. With over 20 years of industry experience, she mentors staff and makes key decisions, while also overseeing interior architecture in Hendy’s Corporate Studio. Susan, an NCARB certified architect licensed in six states, has made a significant impact with her work on wellness initiatives, integrated technology, and innovative office designs.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a little bit about you. Can you tell us about your ‘backstory’ and how you got started?
Carolina: While we share the title of co-CEO at interior architecture and design firm, Hendy, we have very different backgrounds and perspectives that we bring to the job. My career journey started with a clear aspiration to become an architect. Initially immersed in residential and retail projects, I stumbled upon a transformative job opportunity that made me realize my passion for commercial architecture. The moment I stepped onto a manufacturing floor for the first time, I knew I had found my calling. Even now, I consider it a privilege to work behind the scenes for each of my clients, playing a vital role in the intricate puzzle of their projects. Driven by my passion for process-driven environments, I pursued and achieved certification as a Lean Six Sigma Black Belt. This certification equips me to make a significant impact in these spaces through process improvement, data-driven decision-making, and ensuring top-notch quality assurance.
Susan: Similar to Carolina, I always dreamed of becoming an architect. I started my studies at USC with the goal of designing buildings from the ground up, seeing architecture as a way to make a meaningful difference in people’s lives. However, a few years into my education, I discovered the immense potential of interior architecture to impact daily life. People spend most of their time indoors, and a well-designed space can significantly enhance their happiness. I was drawn to the fast-paced nature of interior architecture projects and have since honed my skills across various aspects of this field. Today, I specialize in designing workplaces that cater to the needs of different businesses in order to create a space that enhances the workplace experience.
How would you describe the culture at your company and what has been the biggest contributor?
Carolina: At Hendy, we believe that our people are our greatest asset, and the culture we’ve meticulously crafted over the last 44 years is the glue that holds us together. Our team is professional and approachable, leaving egos at the door and having fun while delivering exceptional service. Our founder, Heidi Hendy, dedicated her career to hiring people who were the right fit for Hendy and truly embodied the company’s culture. When she retired, preserving this culture became a top priority. After over a year of exploration, we identified “the soul of Hendy,” defining what our culture means to us and creating a roadmap to continue it into the future. This effort led to what we now call our Intentional Culture, a proactive approach to shaping the values, beliefs, behaviors, and norms within our organization. Recognized as a “Best Places to Work” winner by Orange County Business Journal many times over, this Intentional Culture has been the biggest contributor to our cohesive and thriving work environment.
How would you explain what an ESOP is to someone who has never heard of it before?
Susan: An ESOP, or Employee Stock Ownership Plan, means that you are part of an employee-owned business. This unique approach allows every team member to directly benefit from our collective hard work. While technically an ESOP functions as a retirement fund, similar to a 401(k) plan, there are some key differences. Employees receive shares of the company without having to pay for them, and the success of the ESOP depends on active participation from everyone working to improve the company. This shared ownership model encourages a collaborative environment where everyone is invested in the company’s success.
Looking back, what was the catalyst that made you start thinking about transitioning to an ESOP?
Carolina: The catalyst for us starting to think about transitioning to an ESOP was the retirement of our founder and company leader, Heidi Hendy, who had been with Hendy for over 40 years. This marked a pivotal period of transition for us, and we were exploring various paths forward, including the possibility of moving to a co-CEO leadership structure. Our main priorities were to keep the company intact and preserve the strong culture we had diligently built over the years. We realized that an outside sale or a merger would likely disrupt this culture. When the idea of becoming an ESOP was introduced, it immediately resonated with us as the perfect solution to maintain and nurture the culture we valued so deeply. Since implementing the ESOP, it has been incredibly successful in achieving these goals, allowing us to thrive while staying true to our core values and mission.
Was there ever a point you doubted the ESOP route? What kept you motivated to push through those challenges?
Susan: Making a monumental change like becoming an ESOP requires a lot of thought, but we never doubted our decision to move forward with it. At the end of the day, the ESOP is a fantastic program that rewards our employees for their hard work without requiring them to buy stocks. As time goes by, we get to watch it grow as our company performs. Our entire team was on board from the beginning, and knowing that this change was truly for them kept us motivated to push through any challenges we faced. The collective commitment and enthusiasm of our team have been crucial in making this transition successful and reinforcing our belief in the ESOP model.
ESOP companies often have a distinctive culture and operational approach. What makes your company stand out from others, thanks to the ESOP structure?
Carolina: Employee ownership creates a distinctive culture and operational approach. Making all employees into owners means that improved company performance translates into financial rewards for everyone. While we still adhere to the normal rules of professional management, we now live by the “think like an owner” mindset. This outlook fosters a sense of pride and accountability, as the value of our shares is directly tied to the company’s success. This structure incentivizes everyone to take pride in their work and collaborate effectively to build a great business. Our ESOP structure makes us stand out by ensuring that every team member is personally invested in the company’s success, which drives a unique culture of shared purpose and mutual benefit.
Susan: Moreover, deciding to take the leap and transition to an ESOP eliminated the uncertainty about Hendy’s future. ESOPs are structured to continually replenish, so we’ve overcome the hurdle of “what’s going to happen?”. Our future is secure within the ESOP, which provides ongoing fulfillment and stability because you don’t have the question of what happens when the founder retires.
Great. Now, let’s dive into the heart of our interview. The transition to an ESOP involves a lot of challenges and opportunities to learn. Could you list the top “Five Things You Need to Successfully Leverage the Power of ESOPs”?
Carolina:
1. Strong Culture. Culture is always a top priority when making major decisions for Hendy. The key to our success as an ESOP was defining our culture before the transition and creating a plan to strengthen it, not weaken it. Our “think like an owner” mindset, which is now ingrained in our culture, is what makes the ESOP not only viable but exceptionally successful. This ownership mentality fosters accountability, innovation, and dedication, driving our continued growth and success.
2. Education. Understanding the power of the ESOP can enhance the return on investment for everyone involved. We benefit from professional guidance from ESOP experts and legal advisors, have an in-house training committee, and provide regular educational opportunities regarding the ESOP structure and benefits to keep everyone highly engaged.
Susan:
3. Continual Communication. Going by the “rule of seven”, people need to hear a message seven times before it sinks in. By regularly communicating the advantages and mechanics of our ESOP, employees are more likely to retain and understand the information. Each different form of communication caters to different learning styles and preferences, including webinars, group training, and even games. Integrating ESOP communications into daily operations such as team meetings, company updates and performance reviews fosters a continual learning environment.
4. Leadership Support. Engagement begins with senior leadership. A pivotal part of our shift to an ESOP was securing buy-in from our leadership team. Without their support, the transition wouldn’t have been possible. We rely on our leadership to uphold our values, and ensuring their alignment with our company’s goals was crucial. They are our strongest advocates, capable of sharing success stories, discussing financial results, and promoting the benefits of the ESOP. Their commitment ensures that our ESOP remains integral to our company culture and future success.
5. Financial Stability. The power of ESOP is fully realized when we achieve financial success. To support the ESOP and its long-term benefits, we established a robust financial foundation. Everyone at the company can contribute to our financial health, and it is the leadership’s responsibility to provide opportunities for employees to make an impact in this area. It takes everyone working together to optimize our financial standing and ensure the success of our ESOP.
Financial literacy is crucial in an ESOP for employees to understand the value of their shares and how their actions impact the company’s success. What initiatives have you taken to educate your employees about financial aspects and the workings of the ESOP?
Carolina: From the moment Hendy decided to transition to an ESOP, it was crucial to us that every employee understood what an ESOP was and how it impacted them. To effectively launch our “think like an owner” campaign, we needed everyone to grasp the long-term wealth-building opportunity that the ESOP presented. When the ESOP was finalized, we organized a company-wide meeting where we brought in our Trustee. The Trustee introduced themselves, explained their role in the ESOP, and provided a crash course on what the ESOP entails. To ensure ongoing education and communication, we established an internal committee dedicated to enhancing engagement among employee-owners. Equipped with a membership to Certified EO, Hendy’s ESOP committee has the tools and resources to keep employee ownership visible in the day-to-day operations of the company.
Susan: Additionally, our firm values transparency regarding our financial performance. During our quarterly All Hands meetings, our leadership team shares the company’s financial performance, enabling employees to see how their efforts directly affect the bottom line. These initiatives help ensure that all employees are well-informed and can actively participate in and benefit from the ESOP.
Employee ownership often changes the dynamics of engagement and participation. How have you seen employee involvement evolve in decision-making and daily operations since transitioning to an ESOP?
Carolina: Employee ownership has truly been empowering for the Hendy team, significantly enhancing engagement and participation. Since transitioning to an ESOP, our team has fully embraced an entrepreneurial spirit, proactively striving to work better, faster, and more effectively. We established four process improvement committees focusing on finance, client satisfaction, operational efficiencies, and learning and growth. The response to these committees, reflected in the high number of volunteers and active engagement, has been incredible. It’s evident that our team has a renewed perspective on contributing to the company’s success and is more involved in decision-making and daily operations than ever before.
Company culture and the ability to attract top talent are critical factors for business success. How has adopting an ESOP model impacted your company culture and your approach to recruiting and retaining employees? Do you believe the ESOP model has given you an advantage in the labor market?
Susan: The transition to an ESOP was a strategic move to preserve and enhance our company culture. Hendy’s founder, Heidi, has always believed that a strong culture is essential to business success and client satisfaction. We’ve found that introducing the ESOP model and “think like an owner” initiatives has only reinforced this perspective among our staff, and naturally attracts top talent as we’ve continued to grow. ESOPs are well-regarded, and once people understand their benefits, they see them as a significant advantage. During recruitment, we provide thorough training on what the ESOP entails, and we proudly display our Certified EO member badge. We believe the ESOP offers potential employees’ confidence in the company’s stability and future success.
How can our readers further follow you or your company online?
Follow along on Hendy’s website https://hhendy.com/ or find us on social media:
Facebook: https://www.facebook.com/hhendyassociates
LinkedIn: https://www.linkedin.com/company/h--hendy-associates
Twitter: https://twitter.com/hendy_design
Instagram: https://www.instagram.com/hendy_design/
YouTube: https://www.youtube.com/channel/UC0T_j9v6Em4L9FmzkolLctg
This was great. Thank you so much for the time you spent sharing with us.
About the interviewer: Chad Silverstein is a seasoned entrepreneur and thought-leader. With over 25 years of business experience, Chad’s entire career has been dedicated to creating a positive social impact in all of his enterprises. His entrepreneurial journey began while in college at The Ohio State University, where he founded Choice Recovery, Inc., which earned national recognition and was twice ranked as the #1 company to work for in Central Ohio. Chad is now a strategic advisor for Authority Magazine’s thought-leader incubator and an Executive Leadership Coach with Built to Lead, where he recently launched an online community for leadership development.
To learn more and connect with Chad, visit www.chadsilverstein.io