One Pilgrim's Progress: How To Build A World-Class Company, And Who To Credit
Idioma: inglés
Editorial: Thomas Nelson, 2005
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Bo Pilgrim had no college education, but he did have a big dose of Texas courage and a heavenly calling that led him to start his own business after World War II. Reggie Wallace, who worked with Pilgrim for fifty years, describes it this way: 'All we had in the beginning was a two-wheel buggy, a shovel, some burlap sacks, and Bo's big ideas.' Today, Pilgrim's Pride is a multi-billion-dollar enterprise that employs more than 40,000 people and processes 30 million chickens a week. In One Pilgrim's Progress, Pilgrim shares the essential values he learned as a boy that are the foundation of his business success.
N° de ref. del artículo 9780785211907
- Título
- One Pilgrim's Progress: How To Build A World-Class Company, And Who To Credit
- Autor
- Lonnie Pilgrim
- Editorial
- Thomas Nelson
- Año de publicación
- 2005
- Estado
- New
- Encuadernación
- Hardcover
- Idioma
- inglés
- ISBN 10
- 078521190X
- ISBN 13
- 9780785211907
Bo Pilgrim had no college education, but he did have a big dose of Texas courage and a heavenly calling that led him to start his own business after World War II. Reggie Wallace, who worked with Pilgrim for fifty years, describes it this way: "All we had in the beginning was a two-wheel buggy, a shovel, some burlap sacks, and Bo's big ideas."
Today, Pilgrim's Pride is a multi-billion-dollar enterprise that employs more than 40,000 people and processes 30 million chickens a week. In One Pilgrim's Progress, Pilgrim shares the essential values he learned as a boy that are the foundation of his business success.
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ONE PILGRIM'S PROGRESS
How to Build a World-Class Company, and Who to CreditBy BO PILGRIMNelson Business
Copyright © 2007 Bo PilgrimAll right reserved.
ISBN: 978-0-7852-1190-7
Contents
Foreword............................................................................viiPreface.............................................................................ixIntroduction: It's a Mind-Boggling Thing............................................xi1. I Was Always Going Somewhere.....................................................12. Motivated by Survival and Captivated by Opportunity..............................173. This Little Chicken Went to Market ..............................................354. Chicken Is Something to Crow About!..............................................455. The Chicken Chili Caper-and Other Mouth-Watering Escapades.......................656. Trying to Stay Out of Some Headlines.............................................737. A Winning Strategy and Partners Who Are Winners..................................878. Stirring Up the Fires of High Morale.............................................1059. The Challenge of Continuous Improvement..........................................11710. A Noble Mission of Saving Rural North America...................................13111. Our Expansion into Mexico.......................................................14312. Riding the Unpredictable Waves of the Poultry Industry..........................14913. To Acquire or Be Acquired-That Is Very Often the Challenge!.....................15914. Marks of a Successful CEO.......................................................17115. See Your Company as God's Gift to You...........................................18916. Finding Personal Balance and Fulfillment........................................19917. Life at the Chateau.............................................................21318. The Bottom Line: Know Who to Credit.............................................221About the Author....................................................................223
Chapter One
I Was Always Going SomewhereThe deal was the largest in the history of the poultry industry-valued at more than $600 million. It was certainly the largest deal I had ever had anything to do with.
The deal made Pilgrim's Pride Corporation the second largest poultry producer in the world-almost twice the size of the third-place poultry producer in the U.S. The deal put us into new markets internationally and gave us new potential for growth and development.
The deal to which I am referring is the acquisition of the ConAgra chicken division by Pilgrim's Pride Corporation in autumn 2003.
The deal took many people by surprise, but in truth, the relationships that underscored its success had been growing for some time.
Through the years, I had met the leaders of ConAgra's chicken division at various industry meetings. We had developed a friendship, even though we were competitors, and we admired each other's business principles. At several of these industry meetings, I had opportunities to converse with poultry company executives about our strategy of seeking to add more value to all of our products and services. Bruce Rohde, who was then president and chief executive officer of ConAgra Foods, and Dwight Goslee, who was then executive president for operations, control, and development of ConAgra Foods, seemed to be on the same page with me when it came to the way we approached customer service and business growth and development.
Finding ways to add more value to products and services has been a focus of Pilgrim's Pride for decades. Through the years, we had grown internally, but we also had taken advantage of several strategic acquisition opportunities that enabled us to expand our product mix and our distribution capabilities-especially when it came to prepared foods. I knew enough from these previous acquisitions to be able to envision numerous ways in which Pilgrim's Pride and ConAgra's chicken division might enhance each other.
The discussions about how Pilgrim's Pride and ConAgra's chicken division might work together began in earnest in early May 2003. I initiated several telephone conversations with Dwight Goslee, and I specifically asked to meet with him and Bruce Rohde face-to-face to discuss a larger acquisition of ConAgra's chicken operations than various lower-level executives at ConAgra had been willing to discuss with us. Rohde and Goslee agreed to the meeting, and on May 9, 2003, I traveled with Cliff Butler, our vice chairman, and Rick Cogdill, our executive vice president and chief financial officer, to meet with Rohde and Goslee in Omaha, Nebraska.
At that meeting we laid out our plan for and interest in acquiring all of ConAgra's chicken operations for approximately $600 million in assets for $100 million in cash, common stock representing approximately 40 to 45 percent of the total consideration, and a subordinated note for the balance, which we asked ConAgra to carry for us. After a few hours of working through various details, we had forged the general framework of an agreement. We discussed the next moves-the required documentation and meetings with our respective boards-and we agreed to move forward to see whether the transaction could be completed.
For the next four weeks, both corporations experienced a flurry of activity. We dispatched our operations people to visit all of the major ConAgra chicken division facilities. We had the legal, tax, and accounting professionals conducting legal and financial due diligence on ConAgra's chicken business and financial records. We had investment bankers working to render fairness opinions. Banks were lined up to provide the key elements of the financing. Cogdill for Pilgrim's Pride and Goslee for ConAgra hammered out the structure of the legal agreement.
Then, on Saturday, June 7, 2003, we had a special meeting of our board of directors to consider and give final approval to the proposed transaction. The proposal before our board passed unanimously.
The final $600-plus million for which Pilgrim's Pride Corporation obligated itself now carries a public value realized to ConAgra in return for its chicken division of more than $1 billion in total value, when valuing the stock portion of the consideration at current trading levels. It was, and continues to be, a win-win deal for both companies.
In the deal, Pilgrim's Pride Corporation doubled its operations in most areas. We jumped to $5.6 billion a year in annualized sales, more than 40,000 Partners (employees), and a market share of more than 15 percent. We added 44.1 million pounds to our ready-to-cook production of chicken-up to 109.1 million pounds of ready-to-cook chicken on an average weekly basis. The producer just behind us produces only 61.8 million pounds of ready-to-cook chicken on an average weekly basis. We have almost twice the people, twice the markets, twice the revenue, twice the distribution of this next-largest competitor. That's a stretch.
Was I excited about this deal?
I don't know that I'd use the word excited. Challenged, perhaps. Ready to take on the challenge? Absolutely. In many ways, it felt like the next logical step to take, albeit a large step.
Was I surprised at how quickly and easily the deal fell into place? No, I wasn't. When things are right-a win-win for both parties-deals often fall into place quickly.
Was I pleased that the deal came about so smoothly? Definitely. Rohde made it clear that the deal came down to a single factor that I've come to recognize and value increasingly through the years: integrity. Although integrity might not be considered a financial factor, it's certainly at the root of all good financial decisions and business choices. Rohde and I had a relationship. We trusted each other. He saw me as a man of good business principles and integrity. I saw him the same way. We could forge a $600-plus million deal in a matter of a few hours because integrity was our foundation.
A $600 million deal would have been beyond my wildest imagination seventy years ago. What would a boy from Pine, Texas-population less than one hundred people-know about business deals of that magnitude? In a word ... nothing.
But what would a boy from Pine, Texas, know about integrity-about being true to your word, standing on principle, and developing relationships that transcend the decades?
Everything.
Pine might have been small, but the principles I learned there were lasting and huge. The relationships I developed there continue today. The way I did business there-even as a boy selling soda pop-is very much the way I do business today: honest, straightforward, and at a fair profit.
To understand the success of Pilgrim's Pride Corporation ... to understand my personal success ... you need to understand my roots.
A Boy from Pine with Deep Roots
My name really is Bo. I was born May 8, 1928, and was officially named Lonnie Pilgrim in honor of my father, whose name was Alonzo, but from my earliest days, relatives called me Bo. It's the name I've always used.
I was the fourth of seven children-two more children died as infants. My brother Harold was ten years older than I. Brother Aubrey and sister Mary Katheryn were also older. Billy, Sue, and Margaret were younger siblings.
We lived in Pine, Texas, a community of eighty-to-one-hundred people during my growing-up years.
We were poor-but so was everybody else. In fact, the whole nation was poor in the early 1930s, but one of the poorer places in America was East Texas. People were trying to scratch out a living by growing cotton and potatoes, and raising cattle, but neither was very profitable in those days. Most people who raised cattle also grew a little corn to feed them, and in a smaller garden, they grew crops for their own table.
For a small town, Pine actually had a significant amount of industry. It had a sawmill, a shingle mill, a cotton gin, a potato house, a school, two stores, a post office, and a railroad going right through the center of the town. The community was organized in 1884 and was called Pine Tree because of all the pines in the area. Earlier, the small town was called Cannon Switch in honor of the Reverend Burell Cannon, who built what he called the Ezekiel Airship after the description of a flying machine in the biblical book of Ezekiel. Later, the town was called Cannon Ball because of the train station and tracks through town. In 1884, however, the name was Pine Tree, and a few years later, the Tree was dropped.
My father operated one of the two stores in Pine. The other store was founded by Dr. W. T. Efurd, who had a certificate of medicine but decided not to practice after he opened the store in 1892. Efurd was a teacher, storekeeper, and preacher. The Pine Grocery and Post Office, which was my father's store, was across the street from Efurd's Store. Our store offered all kinds of canned vegetables and fruits, as well as canned fish. My father also carried an assortment of dry goods, from tobacco to flour. That certainly wasn't the only enterprise my father had, however-after all, he had seven children to feed in addition to himself and my mother, Gertrude.
The train that ran through Pine began to stop in Pine after Efurd's Store opened. A person could take the train six miles away to Pittsburg, Texas, for fifteen cents-or hang onto the side of a freight train for nothing. Unfortunately the train stopped only once a day at nine o'clock in the morning, and it didn't run back through Pine, so whoever took the train to Pittsburg needed to find another way home. I learned that the hard way one day when, as a boy, I sneaked onto the train and found myself with a real adventure trying to get home before I was missed.
We had a switch track in Pine that ran parallel to the main track, and also a third track. It was on this third track we loaded logs onto railcars. The logs were about four feet long and two feet in diameter. They had been cut to be shipped. Two long "skinned" pine limbs were leaned into a boxcar door from the ground, and then logs were brought into the yard for transport. My father would buy those logs and roll them up the skids into the cars. He didn't do the work by himself, of course. Hired men helped. I was always amazed at their strength and skill in handling the logs-they could take a log and flip it over on their knees to stack the logs two high in the boxcar.
My father also bought cotton in Pine, and I remember playing on those bales of cotton between the store and the house. Cotton became so cheap at one point that Daddy burned cotton bales because they had no value. I also remember that beef at one time was so cheap that people couldn't afford to raise cattle-the cost of the feed was more than what they could get for the animal once it was grown.
In addition to the grocery, our family had a large potato house where people would bring their potatoes to be washed, graded, and stored until they were shipped out by train. When I was only ten years old, I hung potato bags in a shop next door to the store. My father bought potatoes in bulk, and I put them into the bags for resale. I made a dollar a week doing that, and I spent that money going to Pittsburg to the picture show where I enjoyed the movies while eating a bag of popcorn.
The church and the school initially were located in the same building, but by the time I was born, the town had a church and a school in separate buildings. The school building had two main classrooms separated by a center hall, and a larger room that served as an auditorium. Two teachers and a principal instructed about forty children total in all eight grades.
Today, the Pine Baptist Church, the Pine Grocery, the Pine Community Center, and scattered chicken houses are all that remain in Pine.
Lessons in Working and Selling
Pine might not have had much to offer in the way of luxury or prosperity, but it did have lots of opportunities for work. I learned how to work as a boy, and I learned how to sell.
We lived two or three hundred yards behind the store, and as I grew up, one of the things I considered a major treat was a Coca-Cola. I frequently went to the store to ask my father for a Coke. When I was only about six years old, my father taught me what it meant to be an entrepreneur. I asked Daddy for a Coca-Cola one day, and he said,"Okay, Bo, you can have a Coke, but what I want you to do first is to take six Cokes down to the gin"-which Calvin Gunn, my grandfather, owned-"and sell those Cokes and bring me back the money and I'll give you a Coke." I sold six Cokes, each for five cents, and for that I got one Coke free. I was selling on commission!
Hauling a six-pack of Cokes to the gin was a major effort for me as a boy, so I had a second learning opportunity-to invent something that might make my work easier. I built a little wagon from a set of hand-me-down wheels. I took two two-by-fours and cut them the length of the wheel axles front and back, attached the wheels, and then connected them with two-by-fours. This gave the wagon a turning radius on the front end, guided by a grass rope that I held in my hand. On top of the "wagon" I put a potato crate, and I set my Cokes in that crate. I'm not sure where I learned how to make that little wagon-it just seemed something obvious to me as a means of making my work easier. It did the job.
I found that selling the Cokes was easy, but collecting the money for the drinks was sometimes difficult. Sometimes a man would say, "I just paid you, Bo. It's that guy over there that hasn't paid you." I learned to keep careful track of who had paid and when, and I finally learned to hand a man a Coke only if he was handing five cents back to me.
I always felt a certain amount of pride and satisfaction after I had collected all the money and was pulling my empty wagon back down the ruts of the sandy road to the store to collect the reward of my entrepreneurship. Those Cokes I earned had a special taste all their own.
That was my first experience at earning money. I carried it proudly in my pocket, just as everybody else did who had any money. Nobody had surplus money in the mid-1930s. People had only the money in their pockets. And nobody knew for sure when the next bit of money might be coming.
The atmosphere was one of survival. I still have that feeling today in the pit of my stomach. It's a feeling that led me to work hard-to probably being a workaholic. It's a feeling that doesn't disappear, no matter how much money might be in the bank or in my wallet.
Lessons in a Rough-and-Tumble Atmosphere of Survival
The lessons of survival were underscored by the simple fact that we lived in East Texas, and East Texas occasionally had violent storms.
In 1936 a storm blew into Pine from the west. It took the roof off our store and post office-the roof landed toward our home east of the store. The storm also hit our garage and picked it up from around our old T-model car-the garage was blown away, but the car remained where it was sitting. We had neighbors to the south, about 150 yards away, and their house was blown away. Beyond that, as the storm moved to the east, it blew the potato house away. The potato house had a concrete foundation, and after the storm we used that flat, vacant foundation for many years as a place for country dances on Friday and Saturday nights. Young people from about a five-mile radius came to those dances.
Lessons of Animal Care
I also learned to care for animals as a boy. We had a Jersey cow by the name of Heart. Heart grazed by the side of the railroad that ran west of the store. The railroad that came through Pine was called the Cotton Belt. It ran from St. Louis, Missouri, to Tyler, Texas. Wild clover grew along the railroad tracks, and Heart always grazed there. It was my job in the late afternoon to make sure that Heart had been driven back to our own backyard so that when Daddy locked the store and post office in the late afternoon and came to the house, he could milk her. The milk from that cow was really our main source of protein.
(Continues...)
Excerpted from ONE PILGRIM'S PROGRESSby BO PILGRIM Copyright © 2007 by Bo Pilgrim. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
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SURVIVAL. In the event any provision of the Order or this Agreement is held by a tribunal of competent jurisdiction to be contrary to the law, the remaining provisions of the Order or this Agreement will remain in full force and effect. All sections herein relating to payment, ownership, confidentiality, indemnification and duties of defense, representations and warranties, waiver, waiver of jury trial and provisions which by their terms extend beyond the Term shall survive the termination of the Order and this Agreement.
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ENTIRE AGREEMENT. The Order, this Agreement and the operative provisions of any quotation issued by Supplier and any purchase order issued by Buyer, sets forth the entire agreement and understanding among the parties as to the subject matter hereof, and merges and supersedes all prior discussions, agreements, and understandings of every and any nature among them. No proposal, purchase order, order confirmation, acceptance, or any other document provided by either Party to the other, nor any electronic click-wrap, terms of use or similar online consent or acceptance language accompanying or set forth as a prerequisite to any electronic interface or utility associated with any Work, shall be deemed to amend the terms hereof and any such contradictory or additional terms shall be ineffective. No party shall be bound by any condition, definition, warranty, or representations, other than as expressly set forth or provided for in the Order or this Agreement, or as may be, on or subsequent to the date hereof set forth in writing and signed by the party to be bound thereby. In the event of any ambiguity or conflict between any of the terms and conditions contained in this Agreement and the terms and conditions contained in an Order, the terms and conditions of this Agreement shall control, unless the Parties have expressly provided in such Order that a specific provision in this Agreement is amended, in which case this Agreement shall be so amended, but only with respect to such Order. The Order or this Agreement may not be amended, supplemented, changed, or modified, except by agreement in writing signed by the parties to be bound thereby.
Derecho al desistimiento
Si es un consumidor, puede rescindir el contrato de acuerdo con lo siguiente. Por consumidor se entiende cualquier persona física que actúe con fines ajenos a su actividad comercial, empresarial, oficio o profesión.
Información sobre el derecho de desistimiento
Derecho legal de desistimiento
Tiene derecho a rescindir este contrato en un plazo de 14 días sin dar ningún motivo.
El periodo de desistimiento vencerá a los 14 días desde que usted, o un tercero que no sea el transportista e indicado por usted, adquiera la posesión física del último bien o del último lote o pieza.
Para ejercer el derecho de desistimiento, complete de forma electrónica y envíe una declaración clara en nuestro sitio web, desde "Mis compras" en "Mi cuenta". Le enviaremos sin demora un acuse de recibo de dicho desistimiento a través de un soporte duradero (por ejemplo, por correo electrónico).
Para cumplir con el plazo de desistimiento, basta con que envíe su comunicación relativa al ejercicio del derecho de desistimiento antes de que venza el periodo de desistimiento.
Efectos del desistimiento
Si rescinde este contrato, le reembolsaremos todos los pagos que hayamos recibido de usted, incluidos los gastos de envío (excepto los gastos adicionales que surjan si elige un tipo de envío que no sea el tipo de envío estándar más económico que ofrecemos).
Podemos hacer una deducción del reembolso por la pérdida de valor de cualquier bien suministrado, si la pérdida es el resultado de una manipulación innecesaria por su parte.
Efectuaremos el reembolso sin demoras indebidas y, a más tardar, 14 días después de que se nos informe de su decisión de rescindir este contrato.
Efectuaremos el reembolso utilizando el mismo medio de pago que utilizó para la transacción inicial, a menos que haya acordado expresamente lo contrario; en cualquier caso, no incurrirá en ningún cargo como resultado de dicho reembolso.
Podremos retener el reembolso hasta que hayamos recibido los bienes o hasta que nos haya presentado una prueba de que los ha devuelto, lo que ocurra primero.
Deberá devolver los bienes o entregarlos a SZ Global, Toronto, Ontario, Canada, sin demoras indebidas y, en cualquier caso, en un plazo máximo de 14 días a partir del día en que nos comunique su desistimiento del presente contrato. El plazo se cumple si devuelve la mercancía antes de que venza el periodo de 14 días. Tendrá que asumir los gastos directos de devolución de los bienes. Usted solo es responsable de la disminución del valor de los bienes como resultado de una manipulación distinta a la necesaria para establecer la naturaleza, las características y el funcionamiento de los bienes.
Excepciones al derecho de desistimiento
El derecho de desistimiento no se aplica a lo siguiente:
- La entrega de periódicos, diarios o revistas, con la excepción de los contratos de suscripción; y
- El suministro de contenido digital que no se proporcione en un soporte tangible (por ejemplo, en un CD o DVD) si, al hacer el pedido, aceptó que podíamos empezar a entregarlo y que no podría desistir una vez iniciada la entrega.
Condiciones de envío
Returns Policy
You may return most new, unopened items within 15 days of the Estimated Delivery Date for a full refund. We'll also pay the return shipping costs if the return is a result of our error (you received an incorrect or defective item, etc.).
Any customer wishing to return a book has 30 days to do so if they are not entirely satisfied.
You should expect to receive your refund within three weeks of giving your package to the return shipper, however, in many cases you will receive a refund more quickly. This time period includes the transit time for us to receive your return from the shipper (5 to 10 business days), the time it takes us to process your return once we receive it (3 to 5 business days), and the time it takes your bank to process our refund request (5 to 10 business days).
If you need to return an item, please Contact Us with your order number and details about the product you would like to return. We will respond quickly with instructions for how to return items from your order.
Shipping
We can ship to virtually any address in the world. Note that there are restrictions on some products, and some products cannot be shipped to international destinations.
When you place an order, we will estimate shipping and delivery dates for you based on the availability of your items and the shipping options you choose. Depending on the shipping provider you choose, shipping date estimates may appear on the shipping quotes page.
Please also note that the shipping rates for many items we sell are weight-based. The weight of any such item can be found on its detail page. To reflect the policies of the shipping companies we use, all weights will be rounded up to the next full pound.