Disclaimer: These communications are intended for the employees of HB Global. We recognize that the general public will have access. The views expressed in these communications represent Bob Whalen in the context of HB Global and may not apply to broader audiences.
Have you ever wondered why HB Global houses 11 divisions (9 divisions part of HB Mechanical and 2 divisions part of HB Home Services) rather than branding and operating each division directly as HB Global overall?
There are many reasons for this divisional structure. One of the frequently discussed reasons for maintaining the unique divisions is helping the legacy of the acquired business to live on.
And while that is one of the considerations, the benefits of the divisions reach far beyond HB Global or the legacy brand. The divisions make a positive impact on employee owners on a regular basis.
While the advantages are vast, this blog is going to focus on three key benefits to employee owners of maintaining the divisions that are housed within the HB Global parent company.
Diversification
One of the most tangible ways our divisions enhance our organization is diversification. This diversification comes in many forms and helps us to be resilient in the face of potential challenges.
Geographic Diversification
The first way that our divisions help us to be diversified is through geographic diversification. For example, some of our divisions added over the last few years have allowed us to expand our services beyond the East Coast to places such as Arizona, Utah, and Florida.
There are a few benefits to HB Global being spread out geographically. One of those is that this helps our company to pick up market share. As we expand the areas that we serve, we have more opportunities to pick up more clients and projects.
Another advantage of being geographically diversified is the ability to overcome obstacles that may come our way. For example, if there is an economic downturn in one region of the country, our presence in other regions of the country will help to carry the company as a whole as well as the divisions within that region.
Industry/Service Diversification
Another benefit of our divisions is that HB Global is diversified in the services we offer and the industries we serve. Because of our divisions, we serve on projects for government entities, private businesses, hospitals, warehouses, and many other more specific sectors and industries within those categories.
Being involved in different industries and providing a variety of services is another way we remain positioned for success. If there is a downturn in business in a particular industry, for example, HB Global as a whole is able to withstand that downturn and support the affected divisions.
Value Creation for the Company
Over the last five years, HB Global has grown from 5 divisions to 11 divisions. The acquisition of these divisions has allowed our company to grow more quickly than we would have grown with organic growth – or growing our existing divisions and pipelines – alone.
By strategically adding divisions while maintaining a balanced focus on organic growth, HB Global is able to keep its eye on the long-term view and create sustainable growth. The growth of HB Global overall and the growth of the divisions within HB Global, creates value that is put back into employee owner hands.
While a different division may not impact your division within HB Global directly, that division will still indirectly impact you as an employee owner. As an ESOP, when we succeed, we all succeed together. So the success of each division creates value for the entire organization which is shared back to all employee owners.
Aside from the value in our ESOP accounts, the growth of HB Global and the various divisions helps to create unique opportunities for employee owners. Growth allows you as an employee owner to take on new and exciting challenges and stretch assignments.
How the divisions support HB Global as a whole and how HB Global supports the divisions is a great demonstration on a larger scale of our core value of Team.
Role of the Divisions in Making HB Global a Great Place to Work
We’ve defined what it means for HB Global to be a great place to work: physical safety, respect, living our core values, and that we win. This definition holds true across our entire company and all divisions.
But part of what also makes HB Global a great place to work is the uniqueness of each of our divisions. Because the divisions maintain a certain level of autonomy, they will have their own factors that also make them a great place to work.
Each division has its own unique culture that is driven by region, the legacy brand, and the services provided. By maintaining a certain level of autonomy but still holding each division accountable to HB Global standards, employee owners at each division are empowered to make our company a great place to work.
Our divisions help us to feel like we’re working within a smaller company while possessing the resources of a larger company, which allows us to enjoy our work and serve our customers in an outstanding way.
It takes each of us acting as a Team on a daily basis to make each division and our organization a great place to work by: checking our ego at the door, treating people with respect, and practicing blameless problem solving.
The benefits of the divisional structure of HB Global help to fulfill our mission of empowering employee owners to make this a great place to work and create value, which sets employee owners up for success now and in retirement.
Have your own thoughts or questions about the importance of the divisions at HB Global? Send them to [email protected].