Case Study Guide

with Jim McEachern
The Tom James Company
Dallas, Texas


Key Ideas.

Key Idea #1 . Personal influence is more powerful than giving orders.
From his 30 years of experience Jim has learned that people are much more likely to follow his example than they are to follow his instructions. He doesn't expect anyone to do anything he hasn't already done. He also believes that his people can teach him a thing or two, so he listens to their input. In addition, he has discovered that the executives in the company are more effective when working close to the people they manage than they are working close to each other. So, Tom James has no central headquarters.

Jim says that he can motivate no one. Instead he asks each employee to define his or her personal goals. The hiring process at Tom James takes several weeks. First and foremost, Jim is looking for good character in every employee and he believes that it takes time to see a person's character.

You think back:   Why do most owners tell people what to do?

Answer:   Several reasons. Perhaps it's the way they were dealt with as an employee, it's the only thing they know to do, and it's the most expedient way to achieve the objective.

What do you think?  Why does just telling people what to do backfire eventually?

Possible answer:  Creative people need the freedom to think for themselves, set their own goals and figure out how to achieve those goals. Smart, energetic people will not work long for an owner who simply gives orders. Lorraine Miller quit working for a man who wouldn't let her ask questions and Greg Thurman started a company because he couldn't find a boss who valued his opinion. Greg teaches to us to engage employees in a dialog to draw out their best thinking. Greg says, "Stop telling and start asking." Marty Edelston has a formal process that gives employees a "voice" in decision making.



Key Idea #2 . Don't let target dates keep you from achieving your goals.
Jim gave himself 18 years to achieve $100 million in sales. It took him 25 years. Had he quit on the date he set, he would not have the $200 million company he owns today. The label inside his suits sums up his philosophy in life -- "I ain't quitin'.

What do you think?  What are some goals which could take a lifetime to achieve?

Answer:  Examples: read all of the world's great literature in its original language; rear children to be contributing adults; shoot par golf when at the age of 80; build a business that creates hundreds of jobs.

What do you think?  What are some short-term "doable" goals which will take me to the long-range goals?

Answer:  Spend one evening per week alone with each of my children. Study 2 hours per day until I complete my college degree. Note how the larger the goal, the more difficult it is to measure the progress toward it. Progress toward short-term goals is easier to track. 

A sign of maturity is a person's ability to work on a very big goal for a long period of time. Jim Morris is trying to change the way we "walk on the earth" whileJoseph Johnson is trying to lead a responsible life and Anne Beiler is trying to fund the volunteer work of her husband. Bill Malleris is working to change the entire construction industry while Margaret Quenemoen is trying to teach people to "enjoy the journey."



Key Idea #3 . If your overall priorities are right, job performance will be at its best.
Vince Lombardi, the great football coach, influenced Jim McEachern to establish basic priorites in his life. God first, family second and Tom James third. If you have read Mary Kay Ash's first biography, you'll find she has the same three priorities. The point is, work is only part of what we do and who we are, and our performance at work depends upon what is going on in our personal life. Jim asks his employees to ask themselves: What do you want to accumulate? What do you want to do? What do you want to become?


Big Idea #4 . Helping your sales channel get rich is a good way to get rich yourself.
Jim's vision was always to deliver quality clothing with first class personal service.

What do you think?  Why is the sales force the key to Jim's success?

Answer: This is his only sales channel. Using an insurance model, Jim recruits and trains people who want to build their own small company. They build a book of customers who order every season. Tom James customers are spoiled and coddled. They are high income professionals who have more money than time and also appreciate being educated by Jim's highly trained team.

Jim knew all along that serving the upscale customer requires an attractive, educated and professional sales person. These people he recruits are also very motivated to become wealthy. Jim has a plan that helps the Tom James sales person build wealth. 

Charlie Woo taught us that every person in your supply chain must make a fair profit and we learned from Ella Williams to be generous, especially with employees.


Business Basic: Finding Money Part II