August 2010

This Month's Features

+	Leadership Book Series
+	FMI's 360 Feedback
Leadership Videos Online
+	Introduction to the Leadership Institute
+	An In-depth Look at the Leadership Institute
+	Leadership Institute Testimonials

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FMI's Executive Coaching

Just as the best athletes have coaches, strong leaders often have coaches as well. In tough times, the need for coaching is even greater. Our FMI coaches bring more than 100 years of combined coaching experience, coupled with specialized industry knowledge, that can help you through these turbulent times.

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What FMI Executive Coaching clients are saying:

• "When you have the ability to make change and improvement to someone who affects your business, affects the growth of team members and affects your image – can you afford not to complete something like this? My answer is no!"

• "I already have made a greater contribution to this company as a result of coaching – both from a performance and a supervisory standpoint. In working with my group of a dozen people, they have their subordinates as well; I think it’s important how the impact transcends my group."

The "Practical Tools for Exceptional Leaders" booklet series is designed to help you learn and apply best-of-class leadership principles in your life and within your organization.
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A Letter From Ron Magnus, Managing Director

On the banks of the Hudson River in rural New York lies one of the single greatest leadership pipelines in history; the Unites States Military Academy at West Point. Every year, more than 13,000 young men and women apply for a small number of coveted placements at West Point. With an acceptance rate comparable to Ivy League schools such as Harvard and Princeton, West Point selects a highly talented group to undergo a rigorous process of learning to lead. After a demanding four years of intensive applied physical and academic challenges, these young leaders are equipped to lead in the most challenging environments imaginable.

Duplicating the West Point model in the construction industry is challenging. However, the APi Group is one company adopting a similar relentless focus on leader development. APi leveraged strategic acquisitions and a focus on leadership to grow from a small, regional insulation and distribution company to holding company for 35 independently-led companies with total revenues nearing 1.5 billion. Commitment to leadership development comes from the top at APi, from Chairman Lee Anderson (not surprisingly, a graduate of West Point) and CEO Russ Becker. In addition to support from senior executives, APi uses a systematic process of selection, training and applied learning to grow its next generation of leaders.

We can learn much from organizations like APi who embed leadership into the fabric of their culture. This focus on employee development creates a culture of high expectations, high performance and ultimately drives exceptional financial returns and significant differentiation in the marketplace.

This issue of the Leadership E-newsletter features an in-depth interview with Russ Becker of APi Group.

Ron Magnus

Building a Culture of Excellence Through Leadership Development

An Interview with Russ Becker, APi Group

Tom Alafat and Peter Nielsen

Many construction leaders use the well-worn refrain “our people are our most valuable asset” or “our greatest competitive advantage is our people.” In fact, it is a rare leader and a unique organization that truly believes its employees to be a driver of competitive advantage. APi Group, led by Chairman Lee Anderson and President and CEO Russ Becker, is an example of a company where investment in people continues to drive significant top- and bottom-line growth in a highly competitive industry. In fact, Lee Anderson sometimes is referred to as the chief leadership officer because of his unwavering passion around leader development.

The roots of APi Group extend back to 1926 with APi Inc., a small insulation contracting and distribution division of the mechanical company Reuben L. Anderson-Cherne. Lee Anderson became president of the family business in 1964. Now under CEO Russ Becker's leadership, APi Group is the holding company for 35 independently managed companies. APi Group, at 9,000 people strong, is fast approaching $1.5 billion in annual revenue in spite of the current economy. While some of its amazing growth is due to wise strategic decisions, timely acquisitions and strong operational focus, one of the key drivers of the firm’s success remains its unwavering commitment to creating a culture of leadership development. APi drives it through leaders who embody company values and share a commitment to mentoring the next generation, and sustains it with a systematic process of leader development. To nderstand more about how this process is enabling APi to leverage its investment in people to create and sustain strategic advantage in its competitive markets, FMI recently interviewed CEO Russ Becker. This is how he sees it.

FMI Quarterly: Let’s start with some background. Tell our readers a little bit about where you grew up and how you came to APi Group in St. Paul, Minn.

Russ: I grew up in northern Minnesota, graduating from high school in 1984. From there I went to Michigan Technological University on a hockey scholarship and earned my civil engineering degree. Although the New York Islanders drafted me, I was not good enough to get a contract with the team, so I stayed at Michigan Tech and received my master’s degree in civil engineering. I started with APi Group in 1995 as manager of construction for one of the APi Group subsidiaries, a mechanical contractor based in Duluth, Minn. I worked there for seven years, and at that time APi was doing $240 million in sales. By 2002, when I came to APi Group as president/COO, we did $635 million in sales. I was promoted to CEO in 2006. In 2008 revenues were $1.6 billion and our 2009 revenues will be just short of $1.5 billion. Given the current business climate, this revenue represents significant achievement by our people. We had 21 companies when I started and now have 35 independently run subsidiary businesses.

Read on to learn about APi's leadership philosophy and the benefits they see from investing in their leaders.