Stay Humble: Interview with Tom Krouse, CEO of Donatos
I recently went one on one with Tom Krouse, CEO of Donatos.
Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks, or challenges have been most instrumental to your growth?
Tom: I got my start early in marketing and advertising and then was a partner in my own agency where I learned all about running a business, getting business, and the importance of service through the work with our clients on their accounts. From there, I went to work for the Wendy’s ad agency and then at the Wendy’s corporate office in several roles culminating with serving as the Vice President of Marketing before coming to Donatos. I’ve now been at Donatos for 21 years including the last 11 years as the President and CEO.
For me, what has been most instrumental in my growth has been being open to different paths to get me to a different place in my career. When I was at Wendy’s, I worked my way up the ladder through the marketing department in various roles and saw myself hopefully becoming the Chief Marketing Officer at some point. Then, one day, the CEO of Wendy’s came to me and said that he wanted me to go out in the field. I was stunned. Field marketing seemed like a setback to me as I had been all about strategy and brand, and I wasn’t sure that going into the field was going to get me where I needed to go. But, for the next three years, I did it and was able to be part of taking that region from being fifth in the company in sales (out of five) to number one. We built a great team and the experience was truly rewarding for me as I learned more aspects of the business from both the local store and customer sides. It was also a good reminder that no position is beneath you, and that by having an open mind you can make yourself more valuable and well-rounded in the process if you do your best in every role you are in.
Adam: In your experience, what are the key steps to growing and scaling your business?
Tom: As an entrepreneurial family business, there were some processes that were not in place as we started our growth, and we’ve had to add and institutionalize some processes in order to grow and scale more easily. This is very much like what we’ve done with the Donatos Operating Platform over the years. (The Donatos Operating Platform refers to the proprietary way each pizza is made to ensure the consistency of quality product.) In order for Jim (Grote, the founder of Donatos and my father-in-law) to grow the business and move on to a second store, he had to have the systems in place to produce the food consistently and efficiently. It’s also true for our company overall. Whether it’s crisis communication systems or leadership and development, having a process and plan gives consistency and allows for more efficient and successful growth.
Adam: What are your best tips on the topics of sales, marketing, and branding?
Tom: Having been involved with high-quality brands where it’s not about price point but the quality of the product there is a whole different equation when it comes to branding. Every little communication point is so very important as we consistently communicate the message of a premium product made with fresh, high-quality ingredients through every medium (photos, video, emails, and copy) that we use. Another tactic that we use to create awareness in new markets or to new customers is by finding ways to get our pizza in people’s mouths through sampling and trial. We are confident that if a potential customer tries our products, they will taste the difference and be hooked.
Adam: What is your best advice on building, leading, and managing teams?
Tom: We have worked hard to build a very talented Leadership Team comprised of smart individuals with tremendous experience at other strong brands who have come together and are doing an outstanding job of leading their respective areas. I am trying to stay out of their way while supporting them so they can lead their teams with their expertise. We build our plans together versus the plan being given to them so that the teams own their part of the overall strategy that they are executing on a daily basis. This creates ownership as they can see how what they do will affect the outcome for the entire company’s success.
Adam: What do you believe are the defining qualities of an effective leader?
Tom: Being an excellent communicator is key. I’ve met really smart people who can analyze and figure out what needs to be done, but they can’t communicate it in a way that allows people to follow them. The ability to take the complex and make it simple is such an important attribute of an effective leader.
Adam: How can leaders and aspiring leaders take their leadership skills to the next level?
Tom: Next level leadership involves broadening your understanding and accountability. If you are able to understand and articulate other leaders’ strategies, it makes you more than just a leader in your one discipline. Communication is such an essential skill to develop in order to take your leadership skills to the next level.
Adam: What are your three best tips applicable to entrepreneurs, executives, and civic leaders?
Tom: Stay humble because just when you start to think you know everything either something has changed or you have become irrelevant. Be approachable to your associates so they feel comfortable being able to communicate to you which allows you stay in touch with what is going on. Remain persistent in your pursuit of achieving a goal or result. It might not happen in the timeframe you want due to timing or your approach, but don’t give up on a good idea. If a leader can have humility and persistence, that is 90 percent of the job.
Adam: What is the single best piece of advice you have ever received?
Tom: “The answer is yes…until and only until there is a reason to say no.” You might get to no but if you start with no, you might miss out on possible big things.
I was a young Account Exec at a small agency that serviced the Wendy’s business. We didn’t do the big TV creative nor buy any media. We did lots of little projects that helped pay the bills for this agency with a single owner. One morning, I was in the office earlier than anyone else and the phone rang. It was a Wendy’s executive asking if we could place a media buy for them. I politely told them we didn’t buy media. I later found out from the owner that they were in a crunch and needed us to buy print in major national newspapers as part of a class action settlement. It was a very unsophisticated project that we could have easily done that would have netted us nearly half a million dollars…and I said no. It still pains me to think about.
Adam: Is there anything else you would like to share?
Tom: It’s important to have a passion outside of work. If everything you do revolves around work, you will struggle to be all the things we have said that a good leader is. Having an outlet away from work helps to alleviate stress and renew your focus. For me, I play in a band. I used to play mediocre golf on the weekends and come home stressed out. Now, I play mediocre music on the weekends, but I never come home stressed out. It’s all about doing something that you truly love.
Adam Mendler is the CEO of The Veloz Group, where he co-founded and oversees ventures across a wide variety of industries. Adam is also the creator and host of the business and leadership podcast Thirty Minute Mentors, where he goes one on one with America's most successful people - Fortune 500 CEOs, founders of household name companies, Hall of Fame and Olympic gold medal winning athletes, political and military leaders - for intimate half-hour conversations each week. Adam has written extensively on leadership, management, entrepreneurship, marketing and sales, having authored over 70 articles published in major media outlets including Forbes, Inc. and HuffPost, and has conducted more than 500 one on one interviews with America’s top leaders through his collective media projects. A top leadership speaker, Adam draws upon his insights building and leading businesses and interviewing hundreds of America's top leaders as a top keynote speaker to businesses, universities and non-profit organizations.
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