[2008 Leadership Profiles] Phil McCloud

If you were to talk to Phil McCloud, you would soon realize that he’s a down-to-earth and passionate businessman who is unwilling to compromise the strong principles that govern the pest management firm that bears his family name. From its humble beginnings, McCloud Services, now based in the Chicago suburb of Hoffman Estates, Ill., has grown into a multistate and multigenerational company with branch offices throughout the Midwest. In conducting the business, Phil and his younger brother Chris — whom he promoted to president several years ago — have stayed true to principles set forth by founder William B. McCloud (their great-grandfater) and carried on by Walter McCould (their grandfather) and Tom McCloud (their father). These include placing the highest emphasis on ethics — honesty, integrity, respect, safety and quality.

“We will not compromise those principles,” said Phil McCloud. “Whenever I run up against a problem and feel we might have to compromise a principle, it just about destroys me.”

The McCloud brothers represent the fourth generation of McClouds to run the company. Phil’s son, T.J., is the fifth generation of the clan to work in the business.

The company started 104 years ago when William B. McCloud began selling chemicals and doing cattle and sheep dips for the Chicago stockyards.

“Pest control, obviously, is in my family’s blood,” McCloud said. “I started my career here before I could drive. Actually, I was mixing bait when I was eight years old. Ultimately I came to think it was one of the best and most fun industries to be in. I wouldn’t give it up for anything.”

DIRECTOR OF MAGIC. In 1972, Phil McCloud, who is now approaching the age of 60, joined the company full time as a sales rep. Several years later he became a manager and was promoted to president in 1985 when his father went into semi-retirement. Phil McCloud kiddingly calls his father the company’s CFO — Chief Fishing Officer. He calls his own new position “Director of Magic.”

“I’m here to help Chris make sure that our personality and values continue to stay intact,” he says. “My roles also range from helping Chris lead company meetings, assisting with strategic account management and sweating over the barbeque grill at the company picnic.”

“Looking at Phil, one of the biggest things that sticks out is his commitment to our industry and his passion — and compassion — for the employees here, whom he considers as a second family,” says Alan Mongin, the company’s vice president of finance. “He’s been a very intuitive manager as well. When he hired me 11 years ago, he convinced me of his commitment to honesty, integrity, respect, safety and quality. Particularly integrity. Phil is committed to support whatever he says. That carries over into the company’s business philosophy and is a very important aspect of his and the company’s personality.”

Chris McCloud describes his brother’s management style as more principle-based and less pragmatic. “Because of that he has helped perpetuate the company’s entrepreneurial style. An example of that is the establishment of our company’s aquatic weed division, an idea he hatched. And, personally speaking, he’s been a great mentor to me.”

Brad Bartlett, president of the Bourne, Mass.-based Interview Technologies, agrees. “Phil is a great ‘outside-of-the box’ thinker,” Bartlett said. “About the only flaw that I found in Phil is the fact that he’s a Chicago Bears fan.”
Bartlett, a Wisconsin native (and Green Bay Packers fan), credits McCloud with helping him establish his human resources consulting company with encouragement, solid business advice and financial help.

HOW THEY DIFFER. The two McCloud brothers are 16 years apart, and, according to the people that know them best, differ significantly in many respects. Phil is passionate about the business and the industry and this passion influences and drives his leadership style. Chris utilizes a more analytical approach in order to lead the company to the next level of growth and development. This blend has proven successful during the past 20 years they have worked together. 

“One of the best things I’ve done in my career was to give Chris a chance to take over the day-to-day operation as president of our organization,” said Phil McCloud.

Throughout the years, the McCloud company has developed into a top-notch regional service company with offices located in Kansas City, Mo.; Indianapolis; Davenport, Iowa; Nashville, Tenn.; Louisville, Ky.; St. Louis;  metropolitan Chicago; and two sites in central Illinois. The company provides IPM services to the food processing industry as well as other commercial, industrial and residential customers.

In addition, McCloud Services owns Pest Control Supplies (PCS), a distributor of products in approximately 28 states.

CHANGING WITH THE TIMES. What’s allowed McCloud Services to thrive in good times and survive challenging times has been the company’s ability to deal with industry changes. Back in the 1950s, the biggest challenge to the industry was the burgeoning population of pests, but people then seemed to tolerate them better than they do now.

“Today, however, one of the biggest challenges we, as an industry, face is guarding the public health,” said Phil McCloud. “The public is very conscious of the importance of preserving the environment. Therefore we must keep the use of chemicals to a minimum, yet keep those pests out of homes, buildings, and other structures.”

Another challenge, he said, is gaining the public’s trust. “Our industry needs to be more customer-oriented. Consumers don’t seem to appreciate our experience or our knowledge. If they did, they wouldn’t go to the hardware store as much as they do and buy pesticides off the shelf.”

McCloud points to a company challenge as well: The leveling of the pest control playing field. “We, and our competitors, all know how to kill pests,” he said. “Differentiating ourselves from the competition in terms of company attitude, personality and technological know-how is key to survival. That’s why we place so much importance on hiring the best employees possible and training them to do the best possible job of serving our customers.”

Each McCloud employee goes through initial and monthly training each year to maintain and sharpen their knowledge and techniques so customers receive the best possible care.

TRAINING IS KEY. “Training is critical,” said Phil McCloud. “There’s so much to know in pest control: Rules, laws, state licensing requirements, new application procedures and new technology. (These) can sometimes get in the way of killing bugs. So, on-the-job training is important here. We go out with the new employees, hold their hands, so to speak, and help them interact with customers.

“But new dimensions in training are becoming very helpful. With the advent of the Internet and Copesan’s Web-based training efforts, the responsibility to learn is now with the individual, more so than with the company. I’d love to see our industry incorporate all difficult-to-obtain pieces of pest control information into the Copesan database. I believe that’s the future of our industry training.”

EMPHASIS ON HIRING. The McClouds hire the best from the start. To that end, they recently hired their first human resources manager to oversee hiring and organizational development. 

McCloud Services also prides itself on treating its customers and its employees like family. You can attain success when you can passionately help someone with a need, Phil says, which is something he stresses to his own employees, who in turn often stay with the company for many years.

“Phil has taught me that having talented, honest people on board is everything. We couldn’t grow our business without them,” says Chris McCloud.
Perhaps above all else, Phil McCloud’s ability to surround himself with others who share a commitment to the company’s founding principles is what’s kept McCloud Services among the industry’s premier companies.

Phil McCloud at a Glance

• Self-proclaimed “director of magic” at McCloud Services. He has this title on his business cards.
• The company also owns Pest Control Supplies (PCS), a product distribution business
• He and younger brother Chris McCloud run the daily operations at McCloud
• Officially joined the company in 1972; began “helping out” around the office at age 8
• Hobbies include playing online multi-player role-playing games; fishing; cooking; music; and horses
• Family includes Leslie, wife of 35 years; sons Josh, 22, and T.J., 32;   and grandson, Morrison, 3
• If he had one movie and one book to bring to an island it would be (movie) “The Blues Brothers” and (book) “The Stand,” by Stephen King
• Favorite quote is “Become your word,” which is from the book “West Point Way of Leadership” by Larry Donnithorne

Copesan Colleagues Weigh In

Through Phil’s commitment and affiliation with Copesan Services — an alliance of large regional pest control companies — the McCloud organization has done work for such companies as Archer Daniels Midland, Cargill and  Sara Lee. “We are, understandably, a very strong supporter of Copesan,” says Phil McCloud.

Alfie Treleven, owner/CEO, Sprague Pest Solutions, Tacoma, Wash., is a close associate of McCloud. He first met McCloud when Treleven began working full-time in the industry. “Phil was wild with ideas, wild with passion for the McCloud team, and willing to share his thoughts on how to make our industry and our business better,” he says. “I can truly say that I’ve stolen more ideas from Phil than from anyone else in the industry. He later saw some of these ideas implemented at Sprague and commented that he should use them at McCloud. He was surprised to learn that they were originally his ideas.”

Another Copesan associate, Clarke Keenan, owner/president, Waltham Services, Waltham, Mass., says, “No one that I’ve met in this industry has higher integrity than Phil has. He has extraordinary passion for his employees and customers — always working to make things right for them. He’s extremely creative in figuring out ways to best work with them.”             

Keenan said McCloud has been instrumental in making Copesan a real force in providing IPM programs to the food industry. “Although he’s very unassuming, he’s a hard charger and heavy hitter, advancing the Copesan cause.”

Russ Ives, president, Rose Pest Solutions, Troy, Mich., another Copesan associate, has known McCloud for more than 20 years. “Phil is a unique individual, with total commitment to client satisfaction. He is a real optimist, believing that right will prevail,” Ives says. “He keeps Copesan meetings in focus.”