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Last Update: Thursday September 20, 2018

Key Idea: Change Your Driving Force

Hattie analyzes the remarkable things that are happening here.  When Arnold and George stopped selling and started inventing, sales jumped up.   More...

Key Question:

A: 

Think in new ways.

George Hill and Arnold Joseff looked at each other and said, "we don't want a sales-driven business anymore. We want to make a bigger impact on the world with our lives." It was in 1980 that they decided to stop being sales driven and start being innovation-driven. That's when their lab stopped being on the side-line and started being at the core of the company. That's when recruiting scienctists with PhD's and Master's Degrees became a prioirty and that's when George and Arnold saw a the big vision for their company. That vision has been guiding them ever since. Do you need to stop doing what you're doing to create an even greater opportunity for your company? For George and Arnold it meant they had to stop being sales-driven and start being innovation-driven."

Q:  What would be your alternative to being "sales driven" and how does it impact your vision of business and work?

A:  Many companies say they are "service driven" and this is the typical small business strategy. To be innovation driven is unusually capital intensive.

Just look at IBM. Their research budget is over $8B; it is also world renown and accounts for the majority of patents filed every year with the US PTO. There is undoubtedly a clear correlation between IBM as the largest information/computer business in the world and that innovation-driven research. They have had more patents than any other business, #1, since 1993.

Q: How does Diversified Chemical come up with the cash to support esoteric research?

A: They define the problem clearly and are usually focused on a particular customer problem. They stay in close communication with the customer that they are targeting and even though what they are doing is risky, they have a built in customer if they hit pay dirt. They do not set out to work on any idea that pops into any person's head.

Look at this new product.
It is a rubber part used in automobile air-conditioning and heating. It is first-quality, made for new cars.

Dr. Rajan Eadara talks about this key rubber part for the automotive industry

First, the scientists here invented a way to make it out of old tires rather than virgin rubber. Second, the process cuts set-up time from 15 minutes to one minute. Third, it is lighter. Fourth, it is stronger. Fifth, it is cheaper. Of course, the orders are rolling in.

Think about it

What problem could you solve for a customer? What would you have to invest to create the solution?

Clip from: Diversified Chemical Technologies

Arnold Joseff and George Hill

Detroit, Michigan:  There is no alchemy within the deep success of Diversified Chemical and her founders, Arnold Joseff and George Hill (pictured above). Rather, it is the right mix of ingredients -- attention to details, adherence to rules and procedures and exacting standards, fiscal responsibility, personal accountability, and an investment in their people and community -- that produce results that consistently meet their customer's expectations and exceed their customer's requirements.

Arnold and George opened Diversified Chemical Technologies, Inc. in 1971 and today it is the holding company for four subsidiaries: Adhesive Systems, Coat-it; Diversified Chemical Technologies, and Paperworks. Together the companies employ over 200 people -- 50 are chemists -- and they generate over $150 million in annual sales.

In the '80s they decided to stop being sales-driven and to become innovation-driven. They reinvented the entire business. They took their lab off the back burner and turned up the heat by putting it at the very core of the company. It meant putting technology ahead of personality as a way of defining their competence within their industry.   These two broke the mold then reinvented it.

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Diversified Chemical Technologies (GH)

George Hill, CEO

15477 Woodrow Wilson
Detroit, MI 48238
313-867-5444

Visit our web site: http://www.dchem.com/

Office: 313-867-5444

Business Classification:
Chemicals

Year Founded: 1971

Change Your Driving Force

HATTIE: I only wish we could clone George and Arnold; the cities across America would be transformed. There are so many lessons we can learn from them, but really, this is what they taught me. George and Arnold looked at each other and said, “We don't want to be sales-driven anymore. We want to make a bigger impact on the world with our lives.” Sales-driven. That's all I've ever been as a business owner. And most of us are addicted to it.

In 1980, George and Arnold decided to stop being sales-driven and start being innovation-driven.

That's when their lab stopped being on the side-line and started being at the core of the company. That's when recruiting scientists with PhD's and Master's Degrees became a priority and that's when they saw a big vision for their company and that vision has been guiding them ever since.

Do you need to stop doing what you're doing to create an even greater opportunity for your business?

For George and Arnold, it meant they had to stop being sales-driven and start being innovation-driven.


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