Rockhead Group Leaves No Stone Unturned
“The stone is the stone; It’s the people and processes that determine success in the stone-fabrication industry” states Jon Kaplan, co-founder of the Rockhead Group USA LLC, on the organization’s membership brochure. It encapsulates the spirit and mission of this rapidly growing trade group.
The Rockhead Group USA LLC (RGU) was loosely formed in 2012 by four owner/operator stone-fabrication companies. Currently, the ownership team consists of Capitol Granite, Premier Surfaces and Stoneworks Ltd.
The intention of the group was to develop a best practices organization to both unify the industry as well as raise the standards of performance. The leadership team saw the industry as highly fragmented and sought to become a resource for top-producing companies.
“There didn’t seem to be a great understanding of the costs basis it takes to run this type of business and where the leverage points to profitability are located,” said Eric Tryon, RGU co-founder and Stone World’s current Fabricator of the Year. “I felt there was a huge need and opportunity inside the stone-fabrication industry for the more-sophisticated owners to have a forum to share best practices and metrics with one another. This forum and platform would accelerate our learning giving all of us the opportunity to leverage the business acumen from some of the best minds in the industry.
“Ultimately it allows all of us to make our companies best-in-class and allows us to grow profitability as we scale. The forum and platform for exchanging best practices, metrics and learnings was born with the RockHead Group.”
The results of best practices often take time, although the effects of positive change are long-lasting. To attract members to the group, the RGU leadership understood that, in addition to long-term profitability, top executives would want an immediate, direct and tangible increase to their bottom lines. The group entered into a strategic alliance with GranQuartz as its first industry partner. Eventually, the group entered into several agreements with industry partners offering everything from credit card merchant services to group health insurance, items which often have a significant impact on profitability.
In early 2016 the group officially launched its Rockhead vendor-certification program, garnering unique benefits to its members as well as the assurance that the vendor had been properly vetted.
By 2014 the RGU had incorporated and grown to eight companies: AMC, Bedrock Quartz, Capitol Granite, Cutting Edge Granite, Pinnacle Stone, Premier Industries, Stoneworks LTD and Unico. These eight companies participated in the first annual benchmarking report.
Word spread quickly about the synergy created when top stone executives examine processes and systems. By mid-2015, the group had gained traction and numbers increased to 15 top companies (many with multiple shops and showrooms) spanning coast-to-coast.
At this point, the leadership realized the need for an experienced executive officer and a national talent search began headed by co-founder Larry Crowley. After an exhaustive search, the group hired Dr. Dawn Kennedy of St. Louis to lead and grow the novice organization.
Dr. Kennedy has a PhD in Organization and Management, with a leadership specialization, and more than 12 years’ experience leading trade associations. The ownership team realized the importance of hiring an expert in association management; Dr. Kennedy teaches graduate association management courses.
Under Dr. Kennedy’s tenure, the Rockhead Group currently has 37 member firms and over 80 locations across the United States and Canada. The Rockhead Group is described by its CEO as a “think tank” where processes, systems, equipment and managing people are examined under a microscope, leaving no stone to profitability unturned. The concept of replicating systems and not only sharing best practices but creating them is a vital competency of the group.
The Rockhead Group was designed for the larger fabricator with a high level of digital technology use in their shops. As leaders in the industry, all members are expected to either be Marble Institute of America (MIA) accredited or earn the accreditation within 24 months of membership.
Many of the Rockhead members are industry award winners and are actively involved in the MIA. Each co-founder has a specific area of business expertise and bring much to the table in terms of best practices and efficiencies.
Co-founder Paul Menninger, owner of Capitol Granite (VA), is highly skilled in industrial engineering. A 1983 graduate of the US Naval Academy in Annapolis, Md., he holds a degree in operations analysis; and, as an active duty naval officer, served in the roles of flight officer, tactical coordinator and mission commander, and retired at the rank of Lt. Commander. Menniger brings to the team a scientific and skilled analysis of operations as well as a background in successful strategic tactics.
Nick Began, a co-founder of Rockheads, is focused on Commercial Multi Family Sales at Stoneworks. Nick is the true “stone-man” having personally installed over one million ft² of tile and stone. Began set out on his career in 1988 as a certified tile installer and eventually opened Stoneworks LTD (OH) in 1991 as a tile-installation company.
Began’s expertise is heavily vested in fabrication methods and digital technology, high-end residential installation and restoration, and complex commercial projects. His high-profile projects include the Great Lakes Mall, the Harry S. Truman Building in Washington, and the Brio/Bravo restaurant chain.
The financial side of operational excellence is the wheelhouse of co-founder Jon Kaplan, CEO of Stoneworks LTD. He brings to the group a visionary foresight and a keen eye for financial success. A CPA with a degree in Accounting and Marketing, Kaplan has worked for a worldwide international professional services firm, with well-known clients such Rubbermaid. Jon also has significant ties to the real estate community and the end consumers of stone – homeowners – with more than 20 years of experience as a real estate investor.
Co-founder Eric Tryon of Premier Surfaces (GA), while holding a degree in economics, brings a different level of expertise to the organization’s members; he describes his business philosophy as “relationships, relationships, relationships.”. Tryon is a self-taught guru of organizational culture and has developed a set of 29 fundamental behaviors that serve as the backbone of his organization. He credits this strong company culture as the reason for its low employee turnover and its largest source of business coming from referrals.
Tryon thoroughly enjoys public speaking and often leads the group discussion at RGU events.
Rounding out the expertise is Larry Crowley, owner of Stoneworks LTD (FL), who specializes and holds a degree in business management. Crowley has leveraged his successful sales and entrepreneurial skills to participate as owner, founder and partner of several current businesses ranging from flight schools, to airline services, to marble care products. Larry also served as the mayor of the City of South Pasadena, Fla. His expertise in sales and entrepreneurship is also kept sharp as a member of the board of directors of the Center for Entrepreneurial Innovation-UF.
While the synergy of the leadership team’s talents and combined experience catapulted RGU to an impressive start, all agree that it is the members that create the magic of this group. Every potential member goes through a thorough vetting process and all are required to share their expertise.
The members meet monthly via virtual teleconferencing, participate in three live meetings, have real-time discussion in a private online forum, and produce a benchmarking report in the summer and best-practices report in late autumn. The group produces a monthly business intelligence report and a membership newsletter and continues to build on its forms library. The wheel never has to be recreated as a member of RGU; someone in the membership has done it before and has lessons learned and secrets for success.
Kaplan, the group’s managing director, along with member Jon Ryan of Inspiration Design Center (MN) initiated a new program launched this June named the Monthly KPI snapshot. Six key performance indicators are reported each month, normalized to percentages, and then charted with an accompanying statistical analysis; this report is then returned to the members within one week of data submission.
In addition, another key benefit the organization offers is its private line of quality quartz under the PURE brand. A full-on marketing launch will begin early this fall.
To date RGU has representation in 32 states and British Columbia.
“We will continue to grow at a controlled but consistent rate,” said Dr. Kennedy. “A mission of the organization is to raise the bar in the stone industry, and to have Rockhead Group set the national standard for quality in processes, product and service. We work towards that goal daily and as a result our members’ profitability continues to rise.”