Professional of the Year: Victor Hammel

Life is full of choices, anyone would agree. But how you make those choices is what’s important, according to veteran PCO Victor Hammel. "People are motivated either by a desire to succeed or a desire not to fail," he says, "and these are two entirely different views of life."

It’s clear that PCT’s 26th Annual Professional of the Year, Victor Hammel, is motivated by the desire to succeed. With more than 1,950 co-workers in 78 district offices, Hammel is president of J.C. Ehrlich, Reading, Pa., and CEO of Rentokil North America. Behind the impressive titles and the obvious high level of success and achievement is a man with deep roots in the pest control industry, an individual with a single-minded commitment to the growth of his company and the ongoing advancement of the industry.

Ward Combs, president, Presto-X-Company, Omaha, Neb., describes Hammel as honest, well spoken, caring and a man of great integrity. "With Victor’s leadership, the transition and sale of Presto-X-Company to Rentokil was an easy one. We couldn’t be more pleased," Combs states. Jerry Keown, vice president, Presto-X-Company, says, "Hammel is bright and very knowledgeable. We wouldn’t have sold if it hadn’t been for Victor."

A FAMILY TRADITION. Victor Hammel has a deep and abiding appreciation for the pest management industry, an appreciation nurtured by generations of family members that built J.C. Ehrlich/Rentokil North America into the industry powerhouse it is today, serving 32 states and the Canadian province of Ontario, and generating more than $200 million in annual revenues. He is the third generation of his family to lead the business, which he joined full time in 1971 after graduating from Penn State University and serving as a Military Intelligence Officer in the U.S. Army, but it wasn’t his first exposure to the business.

At age 8, Hammel was recruited by his father to bag rodent bait in order to earn his allowance while learning the pest control business from the ground up. As he continued to mature, he attended state and local pest control meetings with his family, learning the secrets of business success by watching his three most respected mentors — his father, uncle and cousin — who worked together for many years. "I learned a lot by observing how these three distinctly different individuals were always respectful of each other’s opinion and successfully managed the business together," he said.

His uncle, Arthur Hammel, was the day-to-day administrator of J.C. Ehrlich, a man of great discipline whose life revolved around the family business. Victor’s father, Simon, was a people person who took great pride in nurturing both his personal and business relationships. For many, he represented the heart of the company. Finally, his cousin, Alex Ehrlich, was the brightest man Victor has ever met. "He was a judge in Germany when he was sent to a concentration camp but he came to the U.S. and became one of the most knowledgeable chemists and entomologists I’ve known," Victor said.

The admiration for his father is evident as Victor explains how his dad came to the U.S. with just $100 in his pocket to join his brother, Arthur, in the pest control business. "Ehrlich means ‘honest’ in German and growing up, I was regularly reminded that I had to live up to it. Your word was your bond in my family and my family’s words and actions were in harmony." At the dinner table, Victor’s father routinely reminded him and his brothers that if it weren’t for Ehrlich co-workers, they wouldn’t have the food they were about to eat. So his deeply held belief about the value of co-workers is not something he learned in a business course but is a core principle by which he and his brother Bobby ran the business.

Steve Certa, former owner of Watch All Pest Control, Weymouth, Mass., says, "Victor is a most honorable man. He says what he believes and puts his employees number one which is why our company was a good fit to be purchased by J.C. Ehrlich. It was a good decision."

HISTORY OF EXPANSION. Much of J.C. Ehrlich’s transition from a family pest control firm to a major player in the industry came in the late 1970s and ’80s under the direction of Hammel, his brother Bobby, and cousins Richard Yashek and Davy Goldsmith. Under their leadership, the company expanded services, opened new offices and bought companies in adjacent states. A corporate philosophy that reflects long-lasting relationships with co-workers and customers alike, J.C. Ehrlich has become one of the nation’s most widely respected companies, as well as a major player in the acquisitions market. Despite the company’s obvious success, however, many would argue Hammel’s most long-lasting contribution to the industry hasn’t been the ongoing expansion of J.C. Ehrlich/Rentokil North America, but his fundraising efforts on behalf of the Professional Pest Management Alliance (PPMA), an organization responsible for growing the market for professional pest management services by raising the public’s awareness and appreciation for the structural pest control industry. Hammel’s key role in the formation of the PPMA in 1997 was an important factor in the success of the program, according to NPMA Executive Vice President Rob Lederer. "Victor has become synonymous with the success of the PPMA. He is always generous and willing to share his knowledge and expertise," helping to raise hundreds of thousands of dollars for this essential organization that benefits every pest control company in the industry.

Former PPMA Executive Director Cindy Mannes says that Hammel’s insights into sending the right message to the consumer have led to tangible programs such as the Pride and Professionalism video as well as PPMA’s children’s Web site, www.pestworldforkids.org. "Victor is a true leader in every sense of the word."

PPMA Interim Executive Director Jessica Phelan says, "When I think of a person who embodies all the good in this industry — intelligence, professionalism, forward thinking — Victor tops the list. The Professional Pest Management Alliance depends on visionary leadership to sustain itself. Victor has been and continues to be a driving force in the success of PPMA."

Another of Hammel’s most significant accomplishments was co-founding insurance company PestSure, which he did in the late 1970s at age 33, along with Dick Keenan of Waltham Chemical and Bob Sameth of Western Industries. Furthermore, Hammel has served as president of PestSure for the past 15 years. PestSure currently insures 100 pest control companies whose combined revenues exceed $1 billion — 15 percent of the total U.S. pest control industry.

FAMILY FIRST. While his professional accomplishments are impressive and numerous, when asked what has given him the greatest satisfaction in his life, Hammel answered, "I’m most proud that our children are caring and considerate people with their own goals and aspirations. We have one granddaughter and four more on the way between January and April." Hammel indicated that the three happiest days of his life were the days his children were born. Daughter Melissa is now 38, son Jed is 35 (and is Rentokil Division Manager for Bioremediation Services), and son Jamie is 32.

When it comes to personal accomplishments, Hammel describes himself as reasonably humble, but he is proud of the fact that while at Penn State he was active in student government where he helped preserve the National Defense Student Loan Program (DSLP), which was eliminated during a round of budget cuts. He challenged the decision and eventually convinced University officials to reapply for the program that affected 1,763 students. He received the Penn State Outstanding Senior Award for his efforts. Ironically, and unknown to him at the time, his girlfriend (now his wife, Dena) was a recipient of a DSLP loan that Hammel paid back after they were married.

Hammel’s efforts are not focused just on his business and his family. A long list of community activities include serving on the Finance and Executive Committees of the Reading Hospital, Wachovia President’s Council and the Executive Committee of the Jewish Federation of Reading of which he is a past president. He is also Past President of the Berks County Food Bank and is Vice Chairman of the Board of Directors of Yemin Orde, a youth village in Israel. Yemin Orde Wingate Youth Village is home to more than 500 immigrant, disadvantaged and at-risk children and youth from 20 countries around the world and is located just south of Haifa in the Carmel Mountains.

Hammel’s personal philosophy is to not accept things the way they are and to always try to leave things better than he found them. On the other hand, he says he tries very hard to be appreciative of what he has now. "But if you don’t have a certain amount of dissatisfaction within you," he says, "you never make improvements." This isn’t really the conflict that it appears to be. The secret is finding the right balance. And this year’s Professional of the Year has found it.

The author, a frequent contributor to PCT magazine, is president of Compelling Communications, St. Louis. She can be reached at jvanklaveren@giemedia.com.

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What’s Ahead for Victor Hammel & Rentokil North America?

Traveling to and from Europe in his role as CEO of Rentokil North America, it’s been a busy year for Victor Hammel. Fortunately, PCT recently secured a few moments of the globe-trotting executive’s time to conduct the following Q&A in conjunction with its Professional of the Year coverage.

PCT: J.C. Ehrlich/Rentokil North America has had a number of high-profile acquisitions in recent years. What have you learned from this process?

Hammel: It is worth paying a premium price for a quality company with high standards; there is no such thing as a bargain price for a company with poor quality and low standards.

PCT: Given the current economic climate, what are J.C. Ehrlich/Rentokil’s plans for future acquisitions? Are there any current deals in the works?

Hammel: Rentokil has ambitious plans to grow its global pest control business with special focus on North America. These plans are long-term in nature so the current business climate related to the financial crisis and the housing market has made minimal impact on the strategy. There is greater caution about the individual companies we are considering. In most cases we have insight into the caliber of companies we are interested in. However, we are spending more time analyzing our expectations, particularly with those companies with which we have less familiarity.

PCT: What is J.C. Ehrlich/Rentokil’s 2009 budget for acquisitions?

Hammel: We have no particular acquisition budget for 2009. Our primary limitation is the number of acquisitions we can do and still make a smooth transition. We want to give the proper attention to the acquired company’s management, co-workers and customers. Since J.C. Ehrlich became part of Rentokil in March 2006, we have made 19 acquisitions, including two large ones:  Presto-X ($31 million revenue) and Watch All ($8 million revenue). We believe we can continue with that pace.

PCT: What is the primary business challenge currently facing J.C. Ehrlich/Rentokil and how do you plan to respond to that challenge?

Hammel: Our primary challenge is integrating the new businesses to the Rentokil family of companies. It remains our objective to retain the culture that made these companies so successful. We also want to get the benefits of economies of scale and standardization of best practices. These objectives sometimes are in conflict. We try to do our best in analyzing the pros and cons of any change we make. If the decisions were easy, they wouldn’t even be called "decisions."

PCT: What is the primary challenge currently facing the pest control industry and what role can J.C. Ehrlich/Rentokil play in addressing that challenge?

Hammel: There are always immediate short-term challenges to the pest control industry, or any business for that matter. However, our long-term challenge is to assure that prospective customers view professional pest control as a trustworthy and reliable solution to their pest problems. That is the mission of the Professional Pest Management Alliance and why I’ve felt so strongly about supporting it. I feel confident that the Rentokil family of companies will continue its support. Hopefully all PMPs will recognize that contributions to PPMA are not an expense but rather an investment in the future of their business. I only wish PPMA had been started 40 years ago at the beginning of my career.

PCT: Earlier this year, the longtime business relationship between J.C. Ehrlich and Copesan ended. Have you taken any time to reflect on that situation and have your feelings evolved over time since it was a complex mix of business and personal relationships? If so, how?

Hammel: It is true that the disengagement from Copesan was troubling to many of us at J.C. Ehrlich and Presto-X. From a business standpoint, I understood Copesan’s decision. The disengagement has actually worked out reasonably well for Rentokil. The troubling part was the personal aspect that generated the deepest wounds. But, hopefully, time will heal them. Another beneficial consequence is that the separation from Copesan brought the Rentokil family of companies and our co-workers even closer together.

PCT: Upon reflecting on your career, what period has been the most exciting or gratifying for you and why?

Hammel: When I joined J.C. Ehrlich after college at Penn State in 1967, we were a pretty small company. After returning from military service in 1971, we were a $1 million company. At the time we sold to Rentokil in 2006, J.C. Ehrlich  had become the largest privately owned pest control company in North America with 1,250 co-workers and total service revenues of $107 million (plus our distribution business). Less than three years later, our revenues are in excess of $200 million with more than 1,900 co-workers.  We have achieved that growth organically, thanks to our co-workers, and through acquisitions of like-minded, quality-focused companies. In my nearly 40 years in the pest control industry, the most gratifying aspect for me has always been to work with the people who have assumed increasing responsibility and have been able to create an improved lifestyle for their families. I am proud that the growth we generated for our company has translated into opportunity for co-workers at all levels.

PCT: Many people in the industry have a deep affection for your brother Bobby. What is he up to these days?

Hammel: My brother Bobby retired from "active duty" with J.C. Ehrlich in October 2007 after 36 years of what he calls a dream career. He still maintains contact with the company and attends important personnel functions such as retirement dinners and anniversary celebrations. He is now spending his full-time efforts in volunteer work and fundraising in his local community (Allentown, Pa.) and maintains a busy schedule.  However, he also finds time for fishing and travel to the New Jersey shore and has become an active participant with Penn State’s Civil War Center. I do miss working with him.

PCT: Is there anything we haven’t asked that you would like to share with our readers?

Hammel: Those of us who have been in the pest control industry for a long time know that it is a great business to be in. And yet, I think we sometimes take that too much for granted. When we’ve hired new managers from outside the industry, they are always amazed at the amount of passion that our experienced veterans have for the business and their careers. Also, these difficult economic times remind us as to how fortunate we are. While the pest control business is not immune from the effects of a poor economy, we do not suffer nearly as much as other businesses in these down business cycles. Pest control is a people business. So surrounding myself with the great managers and co-workers who made J.C. Ehrlich and the other Rentokil companies so successful have to be among my best decisions. But selecting my parents and my wife of 40 years are absolutely the best business decisions I’ve made. Dena and I have three terrific children (including son Jed who is a division manager with J.C. Ehrlich/Rentokil). They also made great marriage choices. Now Dena and I are benefiting from the dividends called grandchildren.