R&K SOLUTIONS A VISION OF EMPLOYEE OWNERSHIP & EXCELLENCE
R&K SOLUTIONS A VISION OF EMPLOYEE OWNERSHIP & EXCELLENCE AT A GLANCE R&K SOLUTIONS WHAT: R &K Solutions, a leader in consulting and automated solutions that has embraced the Employee Stock Ownership Plan (ESOP) to drive growth and excellence in real property business support WHERE: Headquartered in Roanoke, Virginia, USA ESOP IMPLEMENTATION AS A KEY TO GROWTH IN CONSULTING AND AUTOMATED SOLUTIONS 1 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
E R&K Solutions is setting the standard when it comes to providing the top-tier consulting and automated solutions the industry has grown to expect. This top-shelf company specializes in real property/facility business support for managers of some of the world’s largest facilities portfolios and has been supporting its customers since 1984. Since then, the company’s structure has only gotten better 2 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
and more centralized around the efforts and commitments of the individual employees. This is thanks to the Employee Stock Ownership Plan (ESOP) structure that permeates every aspect of R&K’s culture. Leaders at R&K are committed to fostering an environment of continuous innovation, aligning the company’s vision, mission, and values with the evolving market demands. This involves investing in cutting-edge technology, staying abreast of industry trends, and having accountability throughout all operations. So naturally, leadership prioritizes transparent and consistent communication, both internally and externally. For clients, clear communication builds trust and showcases the company’s commitment to delivering top-notch professional services. Internally, regular updates and open forums keep employees engaged and informed about the company’s goals and performance, fostering a sense of ownership and responsibility among all employee owners. Success for R&K Solutions looks like a thriving, innovative organization where employees are passionate and motivated, clients are satisfied and loyal, and the company is recognized as a leader in its industry. This success has already manifested, as the company continues to sustain its growth, robust financial performance, and positive impact on the communities it serves. FROM SMALL BUSINESS TO EMPLOYEE-OWNED ENTERPRISE Today, R&K Solutions is recognized as a leading authority in real property and asset management consulting, advisory, and IT solutions for managers of some of the largest facility portfolios. However, R&K Solutions was originally founded as R&K Engineering in 1984 by Jim Kirmse, Bill Richardson, and Gail Bolt. 3 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07 R&K SOLUTIONS
“Their vision was to provide clients with superior support in site development, feasibility studies, planning, economic analysis, facilities management, and advisory services related to real estate and property,” says CEO Frank Quigley. Recognizing early on the importance of information technology, the founders sought to apply expertise in Information Technology (IT) to the tracking and management of real property assets. So, they pioneered the use of automated planning tools for the management of facilities and real property, which soon gained traction among various governing entities. “We deliver the optimal balance of consulting and automated solutions… We understand every aspect of facility, real estate, and real property management and support the policies, regulations, applications, financial considerations, and objectives of facility managers and the businesses or governments that they work for,” Quigley explains. These systems were initially adopted by the Army and later expanded to other branches of the military and the Secretary of Defense. Sadly, Jim Kirmse passed away early in the firm’s history, however, Bill Richardson and Gail Bolt continued to lead R&K toward its current success, and in 2005 they faced a critical decision regarding the company’s future. After exploring various options, they chose to transition the company to an employee-owned structure, becoming a 100% employee-owned company. This decision was rooted in their desire to maintain the company’s culture and ensure its continued success. It proved to be the right decision because employee ownership has become a cornerstone of R&K’s identity, fostering a sense of community and shared purpose among all employees. The transition to an Employee Stock Ownership 4 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
Plan required robust education and communication strategies to convey its value to employees, clients, and stakeholders. According to Quigley, a common saying within R&K is that employee ownership cannot be overcommunicated. For employees, understanding the benefits and responsibilities of ownership was crucial. “We have a communications committee, we call it the R&K Ownership Communications Committee (ROCC),” Quigley says, explaining how this committee serves as a liaison between leadership and employees, ensuring transparent communication, education, and engagement. In addition to the committee, R&K also has quarterly meetings to freely share its metrics of success with 5 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07 R&K SOLUTIONS
BUILDING TRUST AMONG CLIENTS AND STAKEHOLDERS In getting employees to coalesce around employee ownership, R&K has created a vital unique selling proposition to stand out in its industry. “Our stakeholders typically demand trust and communication, which is a full-time job… they understand that our employees are in it for the common good of not just R&K but also of the client,” Quigley explains. The concept of employee ownership translates into a higher level of trust and commitment. Simply, when businesses realize that R&K is 100% employee-owned, they immediately recognize an intrinsic difference in governance. When clients interact with R&K, they know they are dealing with owners who are deeply invested in the client’s and company’s success. And thanks to R&K’s attractive status as an ESOP and employee commitment, the company has a lot of success to show for it. R&K has received numerous accolades for its commitment to employee ownership and excellence. Notable awards include the ESOP Association’s awards for communication excellence in printed material and intranet categories, the Mid-Atlantic Chapter’s Employee-Owned Company of the Year, and national recognition for individual employees. These awards show R&K’s dedication to fostering an engaged, knowledgeable, and motivated workforce, and only reflect the long-lasting relationships the company has built on trust and mutual benefit. Despite having such rock-solid partnerships, it’s important to note that the criteria for selection apply to both sides of the equation. R&K is selective in its choice of suppliers, prioritizing value, reliability, ethical practices, and alignment with company values. “We need the best value from our suppliers. Their capability, their reliability… it’s important that they all employees. Employees also attend conferences and webinars focused on the concepts and the tenets of employee ownership. The company even dedicates an entire month, every October, to furthering education and engagement around employee ownership and bringing the team together. 6 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
can deliver their services on time, meet our quality standards, and they possess the capacity to scale in response to our needs,” Quigley states. This approach ensures both long-term and highquality partnerships and has successfully allowed R&K to collaborate with giants like Amazon Web Services and Scott Insurance, another ESOP company, for their corporate needs. Another key preferred partner includes Zerion. Collaborations with entities such as Zerion are instrumental for the company’s continued growth and success, Quigley points out. Additionally, R&K uses corporate-owned life insurance to safeguard against unforeseen events, ensuring the ESOP’s sustainability. ENHANCING THE FUTURE OF THE COMPANY Looking ahead, R&K is committed to continuous innovation and alignment with industry trends. The company aims to continue enhancing employees’ skills and knowledge, recognizing that its human assets are the primary drivers of revenue along with increasing the market presence of its internally developed and flagship Software as a Service solution, GoRPM. 7 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07 R&K SOLUTIONS
However, even for individuals who are newer to the concept of ESOPs and the associated benefits, R&K has revised its policies to encourage them to integrate into the company culture sooner rather than later. This is done especially well through the company’s revised entry schedule, which allows employees to start participating in the ESOP much sooner than before. Initially, employees had to complete 1,000 hours of employment and wait a year to become participants. Recognizing the need for more rapid induction, R&K revised this policy so that employees now become participants upon receiving their first paycheck. This immediate inclusion helps new employees feel invested in the company from the start. Vesting occurs over five years, with 20% vested each year, ensuring employees are fully vested after five years. Furthermore, R&K plans to create laboratories to test This is undoubtedly thanks to the implementation of the ESOP structure, which has profoundly influenced R&K’s corporate culture, enhancing employee engagement, retention, and recruitment. Employees at R&K are not just workers; they are owners who share in the company’s growth and success. Employees today seek more than just a paycheck; they want to be part of an owner community with shared goals and values, and this ownership culture has created a cohesive team committed to the company and its clients. 8 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
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and improve current and future offerings, ensuring it continues to deliver world-class expertise and automated solutions to clients. The plan, as Quigley describes, is to keep the operation flowing at the peak of its capacity with as little strain as possible. “Our future will be focused on continuing to deliver world-class expertise and automated solutions to our clients that will give our clients the power to assess, predict, and plan so that they may achieve their objectives with confidence,” Quigley states. Overall, R&K Solutions’ journey from its founding to becoming a 100% employee-owned company is a testament to the power of vision, innovation, and community. The commitment to employee ownership has cultivated a culture of trust, engagement, and excellence that sets R&K apart. As R&K looks to the future, its focus on continuous improvement and alignment with industry trends will ensure its continued expansion as a prominent, dominant leader in its industry. When it comes to consulting services and automated property/asset management, R&K is the only solution. PREFERRED VENDOR/PARTNER n Zerion Software www.zerionsoftware.com Zerion Software specializes in mobile, offline field data collection for inspections, compliance, and research. Our innovative platform now features AI-powered, hands-free conversational data collection, enabling efficient and accurate data capture through simple voice commands. Enhance your field operations with Zerion Software’s cutting-edge technology. 10 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07
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