An insurance company positions itself for exponential growth using the Scaling Up platform
November 6, 2024Bluesky says more than 1 million people signed up for the platform in the last 24 hours
November 15, 2024By Verne Harnish
Mike Linton came across Mastering the Rockefeller Habits 18 years ago at a managed service conference where the organizer was handing it out. Reading and re-reading it, he implemented its principles on executive leadership and meeting rhythms while starting a business within VLCM, originally an IBM reseller and now a B2B IT solutions provider offering cybersecurity, IT infrastructure, communications, cloud, and other services. Linton joined the Salt Lake City, UT-based firm, which his father started in 1983, in 2004 and rose to general manager and VP of sales. “The book had a profound impact on me,” says Linton.
The advice Linton read on hiring the right number two inspired him to start discussing succession planning with his father. He took the helm of VLCM as CEO in February 2020, right before Covid hit. “The daily huddle was instrumental in keeping us connected through the pandemic,” says Linton.
At that point, revenue was in the $115 million range. This year, the company is is on track to hit $150 million, with about 150 employees. Linton was honored as an Entrepreneur of the Year 2024 Mountain West Award Finalist by EY in May 2024.
Following the principles of Scaling Up, he has focused on the 4 Decisions every company must get right—People, Strategy, Execution and Cash—as he has scaled up. Here is how he achieved steady growth.
Hiring based on Core Values
Linton’s work on the People side of the business started with the executive team. VLCM promoted its vice president of sales to president last year, allowing Linton to focus on more strategic growth areas, including cultivating partnerships and strategic acquisitions. The leadership team has a book club, where it meets once a month to learn from a new management book.
Another foundation of the company’s growth has been embracing the Topgrading system of hiring and coaching. The company began interviewing candidates based on its Core Values, which include being people-focused, keeping lifelong clients, “to be rather than to seem” and building a thriving company. “Our purpose is to care for our clients, team, and vendors, so everyone can enjoy life at work and home,” says Linton.
Along the way, Linton and his executive team have asked themselves a question raised in my book Scaling Up: Rockefeller Habits 2.0: Would you enthusiastically hire everyone on your team? “That has helped with People decisions, ensuring everyone is in the right role,” says Linton.
Prioritizing one-on-ones
One challenge as the company scaled was growing to a size where Linton could not work with every team member directly. “As we grew, I realized I didn’t even know some employees’ names, which led us to revamp our onboarding,” he says. “New employees now meet all the managers and executive team members. We emphasize our values, and they share their feedback from previous jobs. This approach has resulted in very little turnover, as people get to know us, and we get to know them, creating a strong bond from the start.”
The company also implemented one-on-ones for managers to check in with team members—one of the practices that has helped it build a strong culture and win recognition in Utah Business and The Salt Lake Tribune as one of the best places to work in Utah.
“Managers understand that people join companies and leave managers, and we address any issues swiftly,” says Linton.
Putting a clear strategy in place
With several business units within VLCM, setting strategic priorities has been important to focusing the company’s efforts. The company has used the One-Page Strategic Plan to detail its Big Hairy Audacious Goal (BHAG) and vision, breaking it down into quarterly priorities. Its current priority is hiring infrastructure engineers for one of its business divisions.
“We pivot as needed, such as when we decided to pivot towards growing a robust cyber security practice,” says Linton. “We saw our customers needed us to be experts in this area and this shift has been key to doubling that part of our business.”
Staying focused on growth
To keep its team aligned around its key performance indicators (KPIs), VLCM holds daily huddles from 11:05 to 11:20 am every Monday through Thursday on Microsoft Teams. “Each manager shares anything they are stuck on and key updates, such as sales, cash flow, and other vital metrics,” says Linton.
As VLCM scaled up, Linton put the systems in place to keep his team aligned. The company upgraded its ERP system to Microsoft Business Central, which allowed it to integrate and automate operations and save on accounting resources. “Without this, we couldn’t take advantage of the AI advancements we’re implementing now,” says Linton.
Keeping cash flow top-of-mind
Linton’s leadership team tracks cash flow carefully, breaking down its reports by sales and administration. “This has enhanced our ability to analyze costs and hiring needs,” says Linton.
With the company’s growth humming, Linton is now helping entrepreneurs in the largest refugee camp in Kenya to start businesses through Maak Impact. The nonprofit, where he is a board member, is raising funds to provide grants to refugees so they can lift themselves and their communities out of poverty through entrepreneurship and job creation. The organization’s goal is to help the new entrepreneurs create 1,000 jobs in 1,000 days.
“They’re talented, and they have the capacity, but they don’t have opportunity,” Linton says. “They’re stuck in a refugee camp. Entrepreneurship is the way to create a sustainable life, and we have seen if given a few resources, they can run their businesses their way.” As his company scales up, Linton is paying it forward.