COMPANY PROFILE
try to walk through and evaluate the risks
that each business brings." Another issue
Mike cited is avoiding popularity contests
where you invest in things you like more
than you invest in operations that are providing higher returns.
Diversification holds with it the promise of integrating a range of administrative
functions on the back end to support the
varied front end operations. While there
is considerable opportunity in areas such
as accounting, Mike noted that those efficiencies diminish as you get closer to the
specialized operational and system needs of
the independent business units.
"We can aggregate data very well and
measure it. You have to be careful not to try
to do too much one-size-fits-all for systems
development," he said. "There are some
really specialized systems that are really well
done, and even though we would like to have
one overall kind of enterprise software, there
are limitations. You can do that somewhat
on the lubricant side—we're trying to put
that in place on the fuel side—but it gets
more difficult when you get out into the
dealer business, for example."
While NOCO has taken diversification
to a top level, some degree of diversification should be on the mind of any fuel oil or
motor fuels marketer. "I think diversification is critical," said Mike. "Obviously in the
energy business there is a lot of natural market correlation, but we try to be able to look
at as a continuum of risk. We have some
things that are probably on the more risky
side and some that are far less risky, and we
try to make sure we balance ourselves across
a number of them. So we try to put ourselves
in the position that if any one thing happens,
it would not kill us. But with that, sometimes
I get concerned that without more specialization…are we really challenging ourselves
to be better?"
family out of it to some degree," said Mike.
"Family members are held accountable to
achieving goals, and in addition we try to
hire good managers to run our divisions.
We try to work with them and help them
grow their abilities and their teams, but to
not put our thumbprints on everything that
goes on. We have a number of very bright
people that work here, and they do a hell
of a job."
That sentiment is more than echoed by
the current leaders' parents. "I think Jim
and Mike have taken this thing to an
entirely different level," said Don. "My wife
Barbara and I are just proud as heck of our
boys." l F O N
Managing the family
Having been a truly family operated business from the beginning, including multiple
siblings involved in senior management,
NOCO's longevity and success is all the
more impressive.
"The key to our success is what we call
'De-Newmanizing' the business, which
is basically trying to take the element of
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