Carl and Charles George plan to grow George's Inc. in their roles as the company's new co-CEOs. In an interview with WATT PoultryUSA, the George brothers said they are committed to growing George's Inc. whether through acquisition or construction of new broiler production and processing facilities.
The twin brothers stepped into their co-CEO roles in April, as their father and now former CEO, Gary George, retains his position as chairman of George's Inc. Carl and Charles served in senior vice president capacities since 2009.
The Georges said the co-CEO management structure, which allows the brothers to divide up corporate responsibilities and remain closely involved day-to-day in the business operations, should allow them to keep the organization flat and responsive to customer needs and business opportunities.
Eye on broiler operations in the Southeast
Their immediate focus is to capitalize on growth opportunities that complement the existing George's business. At the top of the list of priorities is having a presence in the Southeastern United States. With operations in Arkansas, Missouri and Virginia, George's is competitive in fresh chicken markets in the Western and Eastern U.S. but less so in the Southeast due to freight costs.
"The biggest opportunity to expand our business is in markets in which we don't compete now," Carl explained. "Probably our greatest focus for expansion is geographic, because there are some markets in which we are not able to compete due to the location of our existing processing plants and the resulting freight costs."
A parallel focus is in expanding and diversifying George's product mix and customer portfolio.
Succession comes early at George's Inc.
When Carl and Charles, 30, took the leadership reins at the nation's 12th largest broiler producer in April, there may have been a few raised eyebrows, especially on the part of those not familiar with George's Inc. But the brothers' youthful looks belie their experience and an established succession model at the fourth-generation, family owned and run company that brings executives to positions of responsibility at an early age.
Gary, himself, assumed the role of president and chief operating officer of the company in 1980 at the age of 30.
"Everybody talks about succession planning at companies, but what good does it do to put succession off five or 10 years when the managers involved are prepared today?" Gary said.
Tutored by the George's management team
"Carl and Charles are well prepared and are part of a very capable management team they have worked with for a number of years and, in fact, had a part in assembling," he said.
Five years ago, the brothers took responsibility as senior vice presidents for the same operational segments that they manage today. Carl is responsible for live production and processing operations. Charles is responsible for sales, accounting, human resources, quality assurance and purchasing.
Carl and Charles grew up watching their father and late grandfather, Gene George, working together in the company. The brothers held jobs in the company's hatchery and processing plant starting at an early age, including working with executive vice president Otto Jech, who has been with the company since 1952. The brothers later worked closely with Monty Henderson, who served as president and COO from 1994 to 2008.
Leadership training at George's Inc.
Carl credits the George's Inc. management team for helping prepare him and his brother for their leadership roles today. "Charles and I have been involved in the business in some way or another since we were 15 years old, whether through internships or summer jobs. We have a close working relationship with the company's management team. They took us, at an early age, under their wing and taught us a lot," he said.
That training has already paid off, according to Gary, who credits Carl and Charles for leading the George's purchase of the Harrisonburg, Va., facility in 2011.
"They are prepared to lead the company, so the earlier they took the leadership reins the better because it shows the corporate family - our employees, growers, customers and vendors - that this is a fourth-generation, family company that is set for the future," Gary said.
Signal to George's stakeholders
Carl said the succession sends an important message at the right time: "In a family business there is always the question as to whether the next generation is going to be interested in the business. We felt the time was right to send the message to the stakeholders - our employees, contract growers and customers - that Charles and I are going to be in the business, and, in fact, we are ready to grow the company."
Preparations to grow George's Inc.
"Our plan is to grow the business, and we are making preparations to take advantage of the right opportunity," Charles said.
Chief among those preparations is achieving integration of the business systems at all of the George's Inc. facilities in Arkansas, Missouri and Virginia.
"Our focus in the last year has been on integration and alignment of processes throughout the different divisions and business segments of George's Inc. We are bringing people into management who can help us take advantage of our company's size - whether that's in research and development or supply chain management," he said.
How the co-CEO relationship works at George's Inc.
Are two CEOs better than one at George's Inc.? The co-CEO management structure is uniquely applicable at this point in the company's development, according to the Georges.
"There are a number of larger companies, though not in the poultry industry, that use the co-CEO management structure," Carl said. "Charles and I each have certain strengths, and George's is a big company with a lot to do. For us, it is best to have two people managing the company and getting more into the details."
The Georges believe this aspect of co-CEO management will help keep the George's organizational structure flat, with fewer layers of management, as the company grows.
"As we grow, we are going to retain our flat organization structure that allows us to respond quickly to customer needs and to opportunities that present themselves. There are advantages in this respect to being a privately owned and family run business. We plan to hold true to that and leverage it as we grow the business," Charles said.
Success involves stakeholders, family at George's Inc.
What counts as success for the George brothers?
"It sounds simple," Charles said, "but it is a legacy of corporate success. That provides value for the stakeholders - the employees and customers and the community. We have a legacy of doing that and one that Carl and I want to continue to carry on."
For the Georges, family is the ultimate foundation of the company.
"We have an extremely close family, and our family relationships are very important to us," Charles explained. "We all work together every day, and we enjoy being with each other, including away from work. It has always been that way for us. That's success for us."
The importance of positioning and patience
"I would expect there to be more consolidation in the broiler industry over the next several years. Our goal at George's is to be in a position to capitalize on that and grow our business. I think we are moving into a time of opportunity. We are positioning for that and want to capitalize on it," Charles said.
Gary agreed, saying, "I think it is important to always be ready for the opportunity when it presents itself. That includes being ready to invest and being patient. If you know your long-term strategy, the right opportunity will present itself and you can accomplish your goals."
Next chapter at George's Inc.
The decision by Carl and Charles to join the family business was of huge importance to the company, said the elder George.
"Carl and Charles want to grow the business, and it's theirs to run," Gary said. "My challenge now is to do what my dad did with me, to be supportive of their decisions and to be there as a counselor for them when they need me in that role.
"The exciting thing for me now is that I get to continue to work with my sons and see what they are going to accomplish in the business. I am really looking forward to that."
