After leaving his position as a public company CEO, Scott Paul looked for an opportunity to own a business in Hawaii, where he lived with his family. “I explored a few start-up company ideas, but was not comfortable with the cash flow risk,” he explains. “I was also close to accepting a position as the Hawaii director for a national energy company, but wasn’t excited about working for another large company. Meanwhile, I had been in discussions with the former owner of Kleenco, who started the company in 1971. Although we were both skeptical at first, we quickly realized that we shared the same values and business philosophy, and I was able to close on the purchase of the company in December 2012. I found the economics to be compelling, especially the opportunity for growth, and I was encouraged by Kleenco’s favorable reputation in the community.” Here, he discusses his unique perspective on the BSC industry, as well as how he handles the big challenges.
How have you brought your previous job experience to your current position as president and CEO?
I was fortunate when I acquired Kleenco because I also inherited an exceptionally capable, honest and motivated management team with decades of experience in our industry and the local market. My job has been to develop the vision for the future of the business, define the strategy to achieve the vision, build the company’s culture that would support the vision, ensure that we have the resources we need to execute on the strategy and hold the team (and myself) accountable for execution. This requires more leadership skills than management skills, which are not industry specific. My prior work experiences helped me develop leadership skills, and I continue to be humbled daily in my efforts to grow as a leader at Kleenco.
What are some trends that you see developing in the building service contracting industry?
[From my relatively new perspective], I can see that communications technology is becoming more important. This goes beyond smartphones, email and texting, to applications that enable more transparency and accountability, and better resource planning. On the cleaning side, more and more customers are asking for green products and processes. There will continue to be developments in tools that will improve the efficiency of janitorial operations, especially as labor costs continue to rise nationwide.
What is one challenge you’ve experienced in your career, and how did you handle it?
I’d say the biggest setback was my last employer’s bankruptcy. I wasn’t the founder or the owner of the company, but I was CEO up until one year prior to the bankruptcy filing. Even when you know you did everything within your power to save a company from bankruptcy, it still feels like a personal failure. However, I’m a firm believer that we learn more from our failures than our successes. I take those lessons with me as I move forward.
How would you describe your management style?
I try to be more of a leader than a manager, but when I manage, I try to be collaborative. Despite my best efforts to keep it under control, my experience as a lawyer definitely comes out sometimes, especially when I’m trying to get to the truth of the matter. I’ve been accused of cross-examining our managers.
How do you create a great company culture for your team?
Simply put, we try to be as fair and empathetic as possible. We look for opportunities to reward exemplary behavior and pay bonuses. Behind the scenes, we emphasize delivering quality work and taking care of our customers over short-term profits. As a public company executive, I’ve lived in the quarterly reporting cycle, where you sometimes lose sight of the long-term vision because of the always-present quarterly pressure. As a business owner, I can focus on building a company that generates profits to reinvest in growth, increasing employment and community engagement.
What book are you reading right now?
For business and self-improvement, I’m reading “Immunity to Change” by Robert Kegan and Lisa Laskow Lahey. For fun and personal enrichment, I just read a great book: “City of Thieves” by David Benioff, and I’m looking forward to reading the young adult novel, “Juniors” by the exceptionally talented Hawaiian author Kaui Hart Hemmings.