Past Winner Stories
Herff Jones
www.herff-jones.com
With $506 million in sales and 4,000 employees in 19 U.S. plants, Herff Jones is a model of a business that has succeeded through a series of bold moves and striving to build a reputation of excellence in its industry.
Herff Jones, which started out as a small jewelry business 86 years ago, is now nationally recognized as a leading manufacturer of yearbooks, class rings, medals and awards, diplomas, graduation announcements, caps and gowns, school photography and instructional materials.
Its success has multiplied as a result of numerous strategic decisions to expand its operations through related acquisitions, according to Michael Williams, vice president of human resources.
"Over the course of years, our company wanted to focus on quality products since many of these products represent a significant milestone in a person’s life—such as high school or college graduation,” Williams says. “That strategy hasn’t ceased.”
As a result of that focus, Herff Jones has added 20 new businesses to its operation divisions in the past few years. “Most acquisitions have been relatively small, but important, as they have improved its core business,” Williams adds.
One of the lines of products that Herff Jones has expanded is its product line of maps, globes and instructional material programs through its Education Division. In 2004, the company acquired the former Cram Company, one of its competitors in the map and globe business. That acquisition helped the company accomplish another goal—bringing back to life an existing 69,000-square-foot building that once had been the operations of another division. Herff Jones expanded the building by an additional 80,000 square feet to accommodate its growing Education Division, which also includes operations from its Nystrom Manufacturing plant, which was previously operated in Chicago. Nystrom also focuses on geography-oriented product lines.
While the acquisitions have strengthened the company’s bottom line, Herff Jones also has benefited from its decision to undergo two leveraged ESOP (Employee Stock Ownership Plan) transactions. That decision led to Herff Jones becoming a 100 percent-employee owned company, among the largest companies in the nation to have that distinction.
“Our employees are literally the owners of our corporation. We firmly believe that employee-ownership and the company’s investment in our employees sets us apart from our competitors,” Williams says. “This retirement-oriented benefit has helped to improve job morale, productivity, and most importantly, service to our customers.”
“We believe there is a direct relationship between the establishment of our employee-ownership culture and the success of our company,” he adds.
Statistics back up that assessment. Since the 1995 ESOP transaction resulted in 100 percent ownership by employees, the company’s ESOP share value has climbed from $21 per share to $114 per share, Williams points out.
“We believe that when employees are part of the ownership, they value their jobs, our company and the quality of our products even more so than perhaps other company employees who do not have those close ties to the success of the company,” Williams says. “The concept of employee ownership works so well with Herff Jones.”
Herff Jones, which started out as a small jewelry business 86 years ago, is now nationally recognized as a leading manufacturer of yearbooks, class rings, medals and awards, diplomas, graduation announcements, caps and gowns, school photography and instructional materials.
Its success has multiplied as a result of numerous strategic decisions to expand its operations through related acquisitions, according to Michael Williams, vice president of human resources.
"Over the course of years, our company wanted to focus on quality products since many of these products represent a significant milestone in a person’s life—such as high school or college graduation,” Williams says. “That strategy hasn’t ceased.”
As a result of that focus, Herff Jones has added 20 new businesses to its operation divisions in the past few years. “Most acquisitions have been relatively small, but important, as they have improved its core business,” Williams adds.
One of the lines of products that Herff Jones has expanded is its product line of maps, globes and instructional material programs through its Education Division. In 2004, the company acquired the former Cram Company, one of its competitors in the map and globe business. That acquisition helped the company accomplish another goal—bringing back to life an existing 69,000-square-foot building that once had been the operations of another division. Herff Jones expanded the building by an additional 80,000 square feet to accommodate its growing Education Division, which also includes operations from its Nystrom Manufacturing plant, which was previously operated in Chicago. Nystrom also focuses on geography-oriented product lines.
While the acquisitions have strengthened the company’s bottom line, Herff Jones also has benefited from its decision to undergo two leveraged ESOP (Employee Stock Ownership Plan) transactions. That decision led to Herff Jones becoming a 100 percent-employee owned company, among the largest companies in the nation to have that distinction.
“Our employees are literally the owners of our corporation. We firmly believe that employee-ownership and the company’s investment in our employees sets us apart from our competitors,” Williams says. “This retirement-oriented benefit has helped to improve job morale, productivity, and most importantly, service to our customers.”
“We believe there is a direct relationship between the establishment of our employee-ownership culture and the success of our company,” he adds.
Statistics back up that assessment. Since the 1995 ESOP transaction resulted in 100 percent ownership by employees, the company’s ESOP share value has climbed from $21 per share to $114 per share, Williams points out.
“We believe that when employees are part of the ownership, they value their jobs, our company and the quality of our products even more so than perhaps other company employees who do not have those close ties to the success of the company,” Williams says. “The concept of employee ownership works so well with Herff Jones.”