[2006 Leadership Profiles] Joe Thomas

Arrow Exterminators is an industry tour de force. With revenues exceeding $81 million and 56 offices nationwide, it is the 6th largest privately-held pest management firm and the 11th largest overall in the United States. And, if history is any indication, the company will surpass $300 million in revenue and 150 offices by 2020. This unprecedented growth is owed to the vision of one man, Joe Thomas.

Charismatic yet humble, risk taker and family man, teacher, advocate and strategist, Thomas has led Arrow for 29 years, creating one of the most dynamic companies in the pest management industry. He is the epitome of a highly effective leader, say employees.

"Joe has the personality and demeanor fitting of a CEO. He makes people want to work harder and do better, and that is an innate quality," says Arrow Senior Executive Vice President Ray Crim, who’s known Thomas more than 40 years.

THE EARLY DAYS

Arrow has roots in the industry’s formative years. Joe’s father, Starkey Thomas, spent 25 years with Otto Orkin, whom he joined in 1939. He formed Arrow Exterminators in 1964 after Orkin was purchased by the Rollins family. Joe began working for the company that same year doing "anything and everything" afternoons and weekends in high school and summers during college. After receiving his bachelor’s degree in business administration from the University of Tennessee in 1972, Joe joined the company full time and spent three years in termite and pest control sales. He then managed day-to-day operations for the $350,000 operation.

In 1978, Starkey passed away and Joe took the company reins. "I’ve been pretty much CEO since Dad died," he says, "so I had to learn on the go." His brother, Barry, is a partner in the operation. "When Dad died, we were doing $1 million," says Thomas. Twenty-nine years later, company revenue has grown 80-fold.

"When Papa, my grandfather, started Arrow, it wasn’t a question of what size company we were going to be," says Emily Thomas, Joe’s daughter and Arrow chief operating officer. "We were going to be a big company." Emily joined the company in 1998. Joe’s youngest daughter, Stephanie, is a real estate agent.

Working for another business never crossed Thomas’ mind. "I had grown up at Orkin, with the Tindols, and going to pest control industry meetings," he explains. "It was the only industry I was ever exposed to."

A MAN OF VISION

Ever since she can remember, Emily recalls Joe scribbling away in his spiral notebook. "He took it everywhere he went, making lists and forecasting plans," she says. "He would jot down plans for all aspects of the business, all of his visions. ‘If you do this and do that, then this will happen.’" It’s a skill he’s honed with precision.

Getting the company to a big enough mass to open Arrow’s first branch office was one of Thomas’ earliest challenges, as was the company’s first acquisition – Douglas Pest Control – in 1988. Arrow soon acquired its first operation outside Georgia – Mayfield Brothers of Chattanooga, Tenn. – later that year. Acquisitions in Nashville and Knoxville followed. Thomas’ first acquisition in Florida was Hughes Pest Control (Sarasota) in 1990, with four more following fast. Arrow went national in 1998, extending its reach into Arizona, and Nevada and Texas in 2003. And, it’s cementing its Southeastern foothold with recent buys in Charlotte, N.C., and Bowling Green, Ky. Thomas expects those acquisitions to trigger more in the Carolinas and Kentucky.

Thomas’ vision to create the largest, independent pest control company in the U.S. attracted Joey Edwards from the start. Edwards joined the firm in 1988 and now, as corporate vice president, handles mergers and acquisitions. Since its first acquisition in 1988 Arrow has made more than 75 acquisitions throughout the United States.

"Joe has been the driving force for internal growth and acquisition," says Edwards. "A lot of companies do a good job [acquiring companies], then drop the ball. Joe’s personality and genuine concern for other PCOs is a good example of why we are so successful in acquisitions."

A hands-on approach with acquired employees makes the difference, Thomas says. "If they are good people and have a good reputation, we want to hang on to them because they hang on to the customers."

"When we acquire companies, we don’t take over and bring in new people," adds Crim. "We do just the opposite. We’re cautious in making big changes in the beginning. We make the owner and employees feel good about the merger with Arrow. This stems from Joe all the way down."

"We’re blessed to have great people," adds Thomas, who is building his management team to help take the company to $300 million in 15 years. Right now he and his team are focusing on acquiring firms in the Midwest and Northeast. "Specifically, we want to be in Ohio, New Jersey, Maryland and Virginia," he explains.

Thomas focuses on expanding an acquisition’s product offering and core business. An acquired company that doesn’t offer mosquito or wildlife control, for example, will have its service offering expanded. Commercial pest control may become a focus, as will establishing a sales staff. "We are very aggressive marketers and we hire accordingly," says Thomas. "Some of the companies we acquire never had a sales force, so we ramp up these efforts."

Besides his acquisition expertise, Thomas is recognized for his innovative methods to grow the bottom line organically. For example, last winter Thomas designed a program for technicians throughout the company to cross-promote services. The program focuses on cross-promotion of all the company’s services – termite, general pest control, wildlife control, mosquito control and handyman services – to current and new customers. "We are protectors of their health and property and therefore it is our responsibility to let them know that we offer this full array of services," Thomas says. Customers are given work order receipts in an attractive tri-fold brochure containing a business card and inserts of Arrow’s full-service offerings. Since February 2006, technician sales have been in excess of $5.5 million, significantly higher than at any time in Arrow’s history, according to the company.

Termite pretreatment and real estate inspection services are also excellent areas for growth, he adds. "A lot of pest control companies are afraid of the pretreat market because of liability. We focus on it. By getting in on the ground floor we can go on to take care of the eventual new homeowner’s issues down the line when it comes to their pest control services as well as other needs such as mosquito, wildlife and handyman projects." Arrow targets Realtors by building long-term relationships, as well as sponsoring events and conducting continuing education courses. Many mortgage lenders require WDO/WDI reports prior to closing a home sale. "If we can get an opportunity to do the inspection, we’ve got a good shot at getting the pest control, termite, wildlife or other business in the future," Thomas says.

A PERSONAL TOUCH

Thomas’ genuine interest and concern for employees’ best interests remains a constant. "We treat one another as family, whether it is employees or customers," says Crim. Like Thomas, Crim has spent his career in the pest control industry, working for Allgood Services, then Waste Management and ServiceMaster. After Crim’s mother died, Thomas called to offer condolences and, eventually, a job offer. Crim joined Arrow in 1991.

"He’s a great people person with a huge heart that I’ve seen day in and day out," adds Edwards. "You see it with how he responds to employees and their families, especially when employees are in need. He goes beyond what a normal owner of a company will do. Joe and the Thomas family view Arrow as their extended family." Employees agree it’s the personalized, family atmosphere that separates Arrow from other pest control companies.

Thomas always is on the lookout for new talent. "We’ll be in a restaurant and a waiter is giving good customer service, and he’ll pull out his card and say, ‘Ever think about the pest control business?’" Emily says. A former parking attendant from one of her father’s favorite restaurants in Atlanta has become one of the company’s best service technicians ever, she says.

Finding good employees remains a perennial challenge, says Thomas, especially in light of Arrow’s aggressive growth plans. "We’ve added to the corporate staff and are going to need over 60 managers," Crim explains. To help advance employees’ skills, the company introduced Arrow University, a six-month training pro- gram designed to bring current employees such as technicians, sales inspectors, supervisors, and members of the customer care department into management. "I’d much rather see people come up through the company," Thomas says. "By far the most gratifying part of the job for me is watching young talent come in and advance the company, to see their careers blossom and see them develop," he says.

Thomas regrets he doesn’t know everyone at the company like he used to when the company had 10 offices. "It’s one of the challenges of having a company that has grown so much."

EXPERT COMMUNICATOR

"Joe has a knack of surrounding himself with people with good leadership abilities," says Edwards. "These people provide an extension of his goals and visions throughout the company."

"He can carry on a conversation with any individual, whether it is a new termite technician or a CEO of a multimillion dollar company," Edwards adds. "Joe’s a gracious man and a wordsmith. He’s a terrific communicator," agrees Crim, noting Thomas’ ability to explain a complex situation in language everyone can understand. "And, he has an uncanny ability to read others."

"Dad’s very, very humble," explains Emily Thomas. "He does not want the attention. Dad is all about teaching. Not just me, but everybody. From the beginning Dad has always given me counsel and encouragement. He gives me a great deal of leeway to make some mistakes and to learn from them, as well as teaching me other approaches to use in the future when need be." Initially Emily wasn’t interested in the family business and planned on attending law school. Several conversations with Joe later, she was convinced Arrow should stay a family-owned business. "I knew how Dad loved going to work everyday and I wanted the same. Frankly, I wanted to be just like him."

Employees appreciate his accessibility. "If I or Ray [Crim] or any head of a corporate division needs him to be hands-on, he is there," adds Emily. "If one of the managers says, ‘Joe, I need you to write a handwritten note to a technician who’s done a great job selling termite jobs,’ he’s on it."

"He’s an encourager," says Crim. "If he needs to be stern, he can be stern, but he’s great at letting people run the company as if it were their own."

Perhaps it’s his confidence in others that allows Thomas to take a calculated risk. "Guts speak to him loudly and clearly," says Emily. "He’s seized many growth opportunities and is the sole architect of when this company made the giant leap."

Yet, he’s not one to come into the office at 6 a.m. and leave at 10 p.m. "Dad always said, ‘Don’t confuse activity with accomplishment.’ But don’t be fooled. He’s always working in that he’s always thinking about the business and jotting down ideas in his spiral notebook."

Transferring those thoughts to a computer just isn’t in the cards. Emily recently set him up with a new flat screen system in his office. "He didn’t notice it for a week," she laughs.

INDUSTRY ADVOCATE

Thomas has long approached the job and the industry professionally, from wearing a suit and tie to work, to encouraging active involvement in the National Pest Management Association and regional groups. Seven past presidents of the Georgia and Florida pest control associations are Arrow employees. Thomas donates to the Purdue University urban entomology chair and programs at the University of Florida, among others.

Colleagues recognize Thomas’ passion for the industry. "Joe is a great executive, team player, and someone concerned about our industry as has been demonstrated by his participation in every worthy cause benefiting our industry, including serving on the Board of Directors of the Professional Pest Management Alliance," says Harvey L. Massey, CEO, Massey Services. "Over the years his management team has been involved in the industry from a local, state and national perspective."

Thomas also advocates community involvement, supporting the March of Dimes, Leukemia and Lymphoma societies, Children’s Health Care of Atlanta pediatric hospital, and the Shepherd’s Spinal Clinic based in Atlanta.

FORECASTING THE FUTURE

"Joe is a great strategist," notes Crim, citing Thomas’ keen ability to develop a company vision, communicate it, and achieve buy-in with employees. "It’s the mark of a true entrepreneur and leader. He has the personality to instill confidence that we can do this." The company regularly reviews and adjusts its growth plan, discussing successes and noting areas in need of improvement.

"It’s been exciting to see where we’ve been, and see short- and long-term goals accomplished year to year," adds Edwards. "It’s been a lot of fun."

As the company has grown, Thomas has continued to expand his vision. "He’s already thinking out to the year 2020, and he’s willing to devote time and money to invest in the infrastructure to make it happen," says Crim.

"My intention is to stay the 15 years and complete the vision," confirms Thomas. Realizing his goal is one incentive; the other is Thomas’ passion for this "people" business. "Every job you go on is different. You interact with employees and customers. I really enjoy that."

Arrow’s Mission

Arrow Exterminators is so committed to its vision that it has copyrighted its Beyond The Call® mission statement, which states the company consistently strives to surpass its customers’ expectations as well as its own with the goal of becoming the pest control company of choice in the 21st century.

"Our goal is to become the largest privately held pest control company in the United States," says CEO Joe Thomas. "We will accomplish this through going ‘Beyond The Call’ in anything and everything that we do in order to consistently surpass our customers’ expectations as well as our own. We are tenaciously persistent about providing the highest quality of services to protect the environment and the well-being of the public we serve. We believe that customer satisfaction through superior service is the apex of our success as a company."