‘Always Be Listening’
Mike Baur has been chief executive officer of ScanSource Inc., with worldwide headquarters in Greenville, since January 2000. ScanSource experienced rapid growth from the beginning, completed its IPO in 1994, and is a Fortune 1000 company with annual sales of more than $3 billion. The company expanded internationally beginning in 2002 and now has 45 locations across North America, South America and Europe. Baur has served as president of the company from its inception in 1992 until 2007. He has been a member of the board of directors since December 1995.
UBJ: What’s been the key to ScanSource’s success and how would you describe your role in that success?
Baur: There are a couple of key aspects of our business that I believe have made ScanSource successful. Most importantly, we listen to our customers. This attribute of our business hasn’t changed since day one in 1992. We listen to our customers’ wants, their needs and their interests in new technologies that we can provide. ScanSource set out to become the leading provider of technology products and solutions, and the company reached that goal by listening to our customers and focusing on specialty segments. For almost 25 years, we have consistently delivered to our partners around the globe. We have grown our book of customers to more than 36,000, and from six original employees in Greenville to over 2,300 around the globe. The feedback we receive from our customers also directly relates to our success and continued growth. We have seen a lot of organic growth throughout the years, but we have also expanded by acquiring companies that have brought new technologies, geographies and service offerings to our customers. Making our customers our top priority is the basis on which ScanSource transformed a startup specialty technology distributor in Greenville into a global provider of technology products and solutions.
Another key piece to any company’s success is having the right team in place, and making sure company leadership is surrounded by talented, hardworking individuals who want to contribute to this success. In fact, the majority of individuals on the ScanSource executive team have been with the company for more than 10 years. These are incredibly smart, talented individuals that know this business and our industry inside and out. We also focus heavily on making sure we’re recruiting top talent – employees that are dedicated to the company, willing to learn and eager to develop into the next generation of leaders for ScanSource. Our entire team here in Greenville and beyond really drives the ship and enables ScanSource to continue on the track of success that we’ve been on.
UBJ: What’s the main piece of advice you would give someone interested in starting his or her own business?
Baur: As I mentioned, find good people. It may take a little more time and additional resources, but it’s worth finding the right individuals to fill roles. It’s even more important in the early stages of a company. You also have to be willing to take risks. Any entrepreneur knows the risk of investing in something without knowing the exact outcome. Projections are projections – they’re not set in stone. Along the way, mistakes will be made. We still make mistakes today as our business grows. But a mistake that is made with good intentions is better than not trying at all.
UBJ: And what should they do before taking the leap?
Baur: Don’t overthink it. When we started ScanSource, we saw a need in the market, and we knew we could fill it. It’s really about taking that leap, and figuring out a way to make it work and make it happen. You’ve got to be willing to take a chance if you think you can do something that isn’t currently being done. More importantly, if you believe in something, don’t be afraid to take the risk.
UBJ: If you had ScanSource to do over again, what one thing would you do differently?
Baur: Not a thing. If we spend too much time looking at everything we should have done differently, it’s a lot harder to move forward and grow. Again, just like any growing company, we have made our fair share of mistakes. But one thing I’ve always told my leadership team – and they tell their respective teams as well – we need to focus on looking forward. Let’s do what is best for our partners. Some of the best growth comes from learning from your mistakes. If you learn, move forward and do what’s best for your customers, the rest will fall into place.
UBJ: How is doing business today different than when you started the company?
Baur: Business today is much faster and more complex than it was back in 1992. Not only are we a significantly larger global company, but it’s also an exciting time for the industry as a whole. The technology is changing much more rapidly, and we have to continue to adapt to keep up with the demands of our partners and the market. I think our recent acquisition of California-based Intelisys, the industry’s leading technology services distributor of business telecommunications and cloud services, is a perfect example of this. Our partners are now able to offer complete solutions – products and services – something they’ve asked for in recent years. Whenever our customers indicate a need for something new or different, it’s our job to provide that to them, and that’s what drives ScanSource to enter new markets and ultimately allows us to continue to grow.
UBJ: What makes a good leader and how have you sharpened your leadership skills over the years?
Baur: Again, I think the best leaders surround themselves with smart people who work even better as a collective. To run a successful business – and to grow that business – you need leaders who effectively manage and grow their respective teams within the organization. It’s important to always be listening and learning from your team, your company, your industry and your mistakes. Something else I’ve always practiced and find important is having an open door policy. Be accessible to your team and your employees. Be open to new ideas, collaborations and different ways of doing things.
A good friend of mine often says, “A leader’s responsibility is to create capacity.” This company has continued to grow and prosper by learning how to scale a small business into a successful, multinational Fortune 1000 company. Scale happens when the organization’s leadership is able to build a high-performance management team.
