Industry
Countertop Fabrication Companies
Services Offered
Rocktops is the largest granite fabrication company in Kansas City
Duration of Partnership
5-6 years
Mike Hyer, CEO/Visionary
Rocktops KC is a leading granite fabrication company in Kansas City. Seven years into the business, it started to face challenges related to rapid growth, structural inefficiencies, and personnel management. Under the leadership of Mike Hyer, Rocktops partnered with John Kaplan from Kaplan Consulting to streamline operations, implementing effective processes and positioning the company for successful growth.
Rocktops KC had experienced tremendous growth since 2013, but when COVID hit, the company had its first flat year. It was at this point that the Mike engaged Jon Kaplan and Kaplan Consulting. Recognizing that, as a one-man-show, he needed additional assistance to help structure the team effectively for further growth. Hiring Jon Kaplan and Kaplan Consulting, enabled the Rocktops to implement processes, get the right team on board and structure the business to achieve a successful sale, which was Mike’s ultimate goal.
Once the company surpassed 40-45 employees, everything became very difficult and Mike was wearing too many hats. They also experienced:
Rapid Growth: The company experienced significant growth from 2013 to 2018, leading to difficulties in managing and structuring the team.
Structural Inefficiencies: Over 40 employees required new processes and procedures for efficient operation.
Personnel Management: Issues with complacency, stagnation, and entitlementamong staff.
Partnership Challenges: Conflicts with a phantom partner affecting business decisions and growth.
Market Competition: Competing in a highly challenging construction industry.
“You can see all the problems, but it doesn't mean you can fix them. At some point you have to let go, get help and tackle one at a time.”
$4 to $5 million in 2 months
CEO remained as head and on the board
It was Jon's personality that what won the CEOMike over. “His knowledge in the industry was great, but really I think it’s the way he goes about business, his personality. I felt that he actually was genuine and cared about my issues.” Essentially, Jon evaluated the business and told Mike the CEO what he thought he could help with.
And that’s what they did. Working with Jon, they implemented the EOS methodology which provided the structure to help them get through the rough and times of COVID.
In January of 2020, right when Jon came on board, the largest fabricator in Kansas City at the time, shut their shop down overnight and dumped about $30 million worth of business into their market. It also put 250 employees out of work.
With this opportunity, the company was able to cherry pick the customer accounts they wanted and immediately picked up pace of $4 to $5 million of increased revenue in a 2-month period. To support this growth, they implemented EOS Traction, which definitely helped to structure the business and formed regular meetings for them.
Jon also helped with furthering the development of the culture and really making it a priority.
Mike stated, “Jon just really won over the staff as well, and that's a hard thing to do. Obviously our customer service and customer experience is the most important, but it's really, I think, my employee experience because with a good employee experience, you're going to deliver good customer service and experiences.
Results
Jon knew ultimately that the goal was to sell the business. He worked with the Mike heavily on getting the business set up and ready. With this partnership, Mike benefitted from:
Profitability and Growth: Increased revenue by $4-5 million in a two-month period after acquiring a competitor’s assets and employees.
Improved Efficiency: Streamlined operations and improved employee performance.
Successful Sale: Positioned Rock Tops for a successful sale to private equity in 2022, achieving a top multiplier in the industry.
Employee Retention: Retained key staff and improved overall company culture.
One last thought, “Jon was able to provide a path so that I had options, and it was worth every penny. The one thing I think that people have a hard time with is biting-off the fee to hire someone, and I can testify that that came back tenfold, and it was worth every dime.”
