Background

HdL had a strong niche business supporting local governments in California in collecting and optimizing sales tax revenues. Founded by two former local government leaders, the business model was strong, but growth was limited.

In 2012, the company decided to buy out the founders and create an employee-owned organization (ESOP). They selected a new generation of leaders, headed by long-time employee Andy Nickerson who had become the new CEO.    

Our work with HdL started in 2016 and is ongoing.

Challenge

HdL wanted to significantly increase its rate of growth to drive returns and opportunities for career pathing and growth for its new owners, the employee shareholders.  To achieve this objective, the company needed to expand its revenue streams beyond its historical core business and regions.

HdL needed: 

1. A broader vision
   • Andy recognized that the single product focus of the company (although highly valued) was just a slice of what the potential value could be to the client base. It was also clear that a single product approach could create risk should a material change occur in regulation, or perceived value from their clients. This desire to diversify the product set would lead to integrating four new lines of business over the next several years and provide solutions to support every aspect of local government revenues.
2. A diversified portfolio and growth calls for a stronger leadership team
   • Achieving the expanded vision was going to take an investment in the leadership team. HdL needed leaders that could lead in a multi-line product environment and had experience in scaling businesses. The firm also had a desire to grow through acquisition so added experience and depth in these areas would be critical. In working with Mastering Midsized, the path was set to build existing talent and go outside the organization for needed experiences to solidify the team.
     Team collaboration and strong ties to the company’s core values were key to the new CEO, Andy Nickerson. Leaders that could get above the day-to-day and assist him in creating and executing to the vision was becoming more critical.

How We Helped

We worked with HdL to clarify and implement a path to significant growth. We focused in three key areas:

1. Building a stronger leadership team capable of defining and implementing a bigger vision.
   • Advised the CEO on hiring essential new talent to expand HdL’s leadership team. Critical gaps were filled with senior leaders who brought experience working for larger, more systematic companies.
   • Delivered leadership training and executive coaching to help HdL develop a new way of operating. HdL shifted decision making away from the CEO and empowered the full leadership team to play a bigger role
2. Establishing rigorous planning processes and accountability for delivering results.
   • Implemented the One Page Business Plan methodology to create the foundation of clarity, and coached leaders through monthly plan review meetings.
   • Facilitated the leadership team to define shared agreements of accountability so that all leaders were clear on results they were expected to produce.
3. Identifying new sources of revenue and new lines of business, leveraging both M&A and organic growth
   • Led the executive team to develop an M&A strategy which resulted in three acquisitions that significantly broadened the scope of the firm.
   • Assisted in launching four new lines of business.  With our support, HdL ramped up marketing and thought leadership to establish and capitalize on its multi-line strategy. We guided HdL to establish a sales team, and systematized sales management with plans and a consistent cadence of communication.

Our work has focused on these growth drivers:

• Leading with Teams
• Planning and Managing to Plan
• Strategic Growth Initiatives

Results

HdL has increased product diversity, successfully integrated new leadership, and a complementing structure culminating in revenue CAGR of 20% over the last 7 years. Not bad!! This topline growth has more than doubled the company value, achieving the ESOP’s fundamental objectives of increasing shareholder value.  

“Partnering with Mastering Midsized has greatly assisted HdL in building a strong and stable leadership team which supercharged our growth. We have a clear vision for growth – and it’s working. We plan and implement systematically, and all our key players are fully accountable for their results. This was achieved through our partnership with Rob Sher and his team.”

-Andy Nickerson, CEO, HdL Companies