Rent-to-own News - 'Building Culture' with Bestway CEO David Kraemer

David Kraemer is not the kind of CEO who says "jump" and expects other to say "how high"?

In fact, he openly engages his managers, friends and associates in the kind of verbal swordplay meant to leave the best idea standing whether the topic be sports, politics, or customer service. He puts this philosophy into practice everyday as the head of Dallas-based Bestway Rent To Own.

If an idea is better than his, he'll likely use it. That is, unless his RTO intuition tells him differently.

"I don't care who is right, just as long as we got it right," Kraemer says. "When my people walk into a meeting, it's nameless and rank-less. I want their input, that's why I hire good people and give them the support they need to become great. But by the same token, sometimes I've had all my people urging me to carry this or that product they think will be a big hit, but if I don't feel it, it's not going to happen. That's one thing about being the CEO is its your job to make those tough calls. But that doesn't mean I won't take their idea the next time and run with it. Part of the joy is seeing people accomplish things in a different way than I would do it."

Since coming to Bestway in 2002, Kraemer -- who has worked colorful stints as a coal miner, sporting goods store salesman and executive vice president of Rent-A-Center -- has worked to cultivate a culture of confident ambition among his colleagues that begins with his genuine interest in their well being.

"My co-workers are my customers and no one cares how much you know until they know how much you care," he says. "There's nothing harder than building culture and nothing easier than to destroy it. We've made that investment and that's what makes our people want to stay and be the best they can be."

That investment is nowhere more evident than at Bestway's Annual Managers Meeting in Hilton Head, South Carolina this week, where close to 100 district and store managers talk shop, trade ideas, take part in high profile business lectures and product training.

Of course, the location does also lend itself to leisurely strolls down powdered sugar beaches, sunbathing and other recreational opportunities that, mixed with the training and networking events, are aimed at prepping company personnel for the busiest quarter of the year.

Kraemer is a former board member of the Association of Progressive Rental Organizations -- the national trade association for the rent to own industry -- and his reputation as an effective and enthusiastic company leader as well as industry spokesperson is widely recognized. Bestway routinely attracts notable industry names with long resumes, but Kraemer is just as proud of Bestway's ability to draw, retain and groom people new to the industry -- its future. Given the fact Bestway exceeded revenue and profit standards for the second year  in a row, it appears Kraemer's approach is working.

The company, which has stores in seven states, will open its 79th store in Lewisville in mid-October with a grand opening to be announced. The store is Bestway's first in Lewisville and fifth in the Dallas-Ft. Worth area. Bestway is the industry's largest independent rent to own company with corporate stores.

But the ever deferential Kraemer credits Bestway's success less to his leadership than to an 'indirect' consequence of melding a back-to-basics approach with superior customer service and employee support.

"It's the simple business model that's the most difficult to execute," Kraemer says. "If you're not a people person, you will not make it in this business. So it's all indirect. Through a combination of customer service and quality products at a good price/value proposition we win and keep customers. The result is profit."

See photo gallery of Bestway's 2010 Managers Meeting here.

Listen to 2009 podcast with David Kraemer here.