38,000% growth over 16 years!
You may think of it as
something similar to the Bitcoin hype. But it is not. It is a real story for
DCI, Diversified Conveyors International.
DCI is a company,
headquartered in Memphis, Tennessee, which specializes in integrating systems
for companies that handle materials, such as conveyor belt systems. Its
clients include FedEx, UPS, a variety of manufacturers, and airports.
DCI has been selected as
the fastest growing 100 private mid-size companies in the Midsouth for several
years, and it was the fastest growing company in 2015.
Established in 2000, DCI began its operations in 2001 and has since grown
exponentially over 16 years with the annual revenue at $260 million in 2017.
History
DCI was founded by Tom
and Beth Phillips and began its operation with one additional staff in 2001.
Currently it employs 161 staff, full time equivalent. Also, Tom and Beth
started the company with capital of $50,000 and a line of credit backed up by
his home equity. This capital base has expanded to $19 million as of December
31, 2017. That represents a growth of 380 times or 38,000% over 16 years,
translating into an annual average growth rate of 237%!
Like any business, DCI's
greatest challenge has been hiring the right people who share the vision and
mission of the company, particularly to keep pace with the phenomenal growth
the company has been experiencing.
Unlike many start-ups,
however, DCI has not had to worry about securing clients. Thanks to the long
and trustworthy reputation that the DCI team has gained over time in the
industry, the company never had to worry about orders for DCI's products. The
concern has been instead how to meet and deliver the ever-increasing orders in
a timely manner.
DCI reported a profit even
in the first year of operation in 2001, and its profitability has continued to
increase as the company has grown.
DCI has reported a
phenomenal growth, and this growth alone is remarkably impressive. However,
DCI's story does not end here.
Kingdom Business
DCI is a Kingdom
business.
When they started DCI, Tom
and Beth dedicated it to God and His Kingdom. They knew and acknowledged that
God owned DCI and decided to manage it according to His will. Thus, their
management goal was not to maximize the growth or the profit, but to manage it
in a godly manner with a focus on producing Kingdom impact in every possible
way, which they trusted would bring glory to God. They resolved to seek to
discern God's heart and follow His way under any circumstances.
To make their resolution
clear, the Phillips established DCI's mission statement as follows:
DCI exists to serve our material handling customers with excellence, to contribute to our communities, and to operate as an example of Christian principles.
To achieve this mission,
DCI chose the following three core values, the moral and spiritual guideposts
that DCI should follow under any circumstances:
- Intensity - single-minded focus on God's purpose
- Thrift - wise use of all resources
- Kingdom Impact - to be produced in every aspect of the
business
As a business dedicated for the Kingdom of God, the main drive was to serve DCI staff and the communities in which it operated as well as its clients.
While it is important to
serve clients well even for effective business management, as a Kingdom
business, DCI strives to deliver products of excellent quality within a
promised timeline, all as if it serves the Lord. (Colossians 3:23,24) In the
end, this service spirit ends up producing recurring orders and numerous
referrals.
For the staff, fair
compensation and attractive employee benefits are the foundation. In addition,
DCI seeks to assist its staff with godly and holistic living. For example, DCI
provides marriage counseling for those who struggle with their marriage.
Moreover, DCI staff is encouraged to participate in serving the community at
large and His Kingdom.
To serve the community,
all staff is encouraged to volunteer their time and talents at the community
organizations or ministries they choose. Through a software platform program,
all staff is given a monthly allowance of $25 to give away to charitable
organizations which have been vetted. Also, if a staff member donates $100 or
more to any approved charitable
organization of his or her choice, DCI matches this giving so that the benefit
and impact may be doubled.
From the very first year
of 2001, DCI reported a profit and kept its promise of serving the staff and
the community. As DCI grew, it hired people from the inner city and provided
internships and counselling. DCI also continues to support ministries that help
inner city residents secure employment by teaching job skills, financial
management, and linking them with opportunities.
Stewardship
Tom and his wife Beth
are a Christian couple with a deep sense of stewardship for their lives, their
talents, and their treasure, which they sincerely believe God owns and has
entrusted to them. This stewardship principle was also applied to DCI.
The Phillips believe
that they have been entrusted with staff, money, clients, and communities along
with the company DCI. They do not take any of them for granted because they
belong to God. DCI staff are a closely-knit organization.
All staff at DCI
willingly and voluntarily pursue the thrifty use of all resources so that none
may be wasted. Thrift is one of three core values, as discussed above. The
money saved from the thrifty use of resources is applied to giving.
Stewardship principles
are applied to the personal lives of the Phillips as well as the company. For
example, they calculate the opportunity cost for expenses. The Phillips can
drive practically any luxurious car on the market given the amount of profit
they are making. But they calculate the opportunity cost of the additional
money spent for a luxurious car over a modest car needed to meet the
transportation needs and take into account how many children in developing nations
can be fed with the additional money required for a luxury car. So they choose
a modest car.
Among so many needs of
humanity, they chose the following three areas as their foci:
- Children
- Sustainable poverty alleviation
- Pastor training
The Phillips genuinely
believe that God's stewards who are faithful with a little entrusted with them
will be entrusted with more.
His master replied,
"Well done, good and faithful servant! You have been faithful with a few
things; I will put you in charge of many things. Come and share your master's
happiness!" (Matthew
25:21)
Ministry Going Overseas
Since DCI served the
marginalized people in the inner city in its early years of operation, DCI
expanded its ministry overseas in 2005 when Tom visited Rwanda and began to be
involved with several ministies in helping alleviate poverty in developing
nations.
DCI's involvement in
overseas ministries ranged widely from buying 50 motorbikes for loan officers
of a Christian micro finance bank (Urwego Opportunity Bank) to building mini
hydro power plants to provide sustainable support for many local ministries,
and to establishing a chicken farm to feed malnourished children one egg per
day to provide protein in their early days of life.
One Egg turned out to be particularly effective
and became a success story. It was a collaborative model with
self-sustainability. DCI funded the establishment of a chicken farm, called
Ikiraro. It chose to partner with Tyson Foods of the U.S. which provided
technical assistance needed for the chicken farming. To implement the feeding
part of the eggs to children, DCI partnered with the Shyira Diocese of Rwanda
Anglican Church. To make Ikiraro sustainable, a non-profit organization was
established in the U.S. to recruit sponsors who are willing to pledge $5.00 per
month to feed one egg per day for one month for one child. To watch an interesting animated One Egg story, click here.
One Egg produced
remarkable impact. The children who were fed one egg per day outgrew other
children. Also, their intellectual development was clearly evident. Moreover,
children were educated to wash their hands before they ate, and this hygiene
education transferred also to their family members. The children were cared for
at child development centers, and their parents were able to concentrate on
working and earning more income for their families. It was a multiple win
scenario. Now, in Rwanda, 3,200 children of 2 - 5 years of age are benefiting
from One Egg, and there are currently 217 preschools that have started in the
diocese.
One Egg was so effective
that it started expanding on its own. It is now operating in 12 countries,
including Rwanda, Uganda, Ethiopia, Mozambique, Nicaragua, Haiti, Honduras,
Zimbabwe, Nepal. DCI continues to finance the administrative costs for this
project so that 100% of all donations received may be used to finance the egg
costs.
 |
| Gifts received from some projects supported by DCI |
The following document a
few questions and answers exchanged in person:
What were the factors
that resulted in operational success for DCI?
"It is not my business,
but God's, and I manage it according to His will. God did the rest, producing
tremendous success."
"What do you mean
by according to God's will?" "How do you know if it is God's will or
not?"
"Well... I try to
be purposeful in my decision making, examining what is pleasing to God. This
applies generally, but particularly to three aspects: product, process, and profit.
For product, we want to
make sure we deliver products that will demonstrate excellence and value to the
satisfaction of our clients. As a business, we need to serve the needs of our
clients with the right product.
For process, we want to make sure all business processes are efficient with minimal waste of time, cost, and manpower. More importantly, we want to make sure our staff are treated well to their satisfaction.
For profit, we want to make sure it is distributed and used according to the Owner's will. We pay taxes properly. We pay fair wages for our staff. We use profit for serving our staff's welfare and the needs of the communities we operate."
Going Forward
Tom and Beth own DCI
legally on record. But they believe that their nominal ownership of the company
is only temporary because they are not the actual owners. Cautiously, Tom
mentioned that they are considering an action that will relieve them from the
nominal ownership so that they can truly function as the stewards of the
company for His Kingdom purpose.
"Are you
considering transferring your ownership to an independent entity or a
trust?" At this question, Tom made a big smile on his face and said,
"You will see soon."
Concluding the interview, Tom said that the greatest qualification he has received from God is that he is a sinner saved by grace.
On the walls of DCI,
there are many quotes. One of them was by Corrie Ten Boom:
"The measure of a
life is not its duration, but its donation."
I could sense strongly that Tom and Beth wanted their lives to be
measured by their donation of their life, talents, and treasure to the Kingdom
causes.
It is God's grace that
there are people like Tom and Beth who set examples for fellow Christians on
godly living, and there are companies like DCI that operate on biblical
principles and produce Kingdom impact in the process.
I dream that God will
raise more people like them and companies like DCI. - Jeffrey Lee, CEO of SfK
Ministries
