Mitchell Gold and Bob Williams, founders of MG +BW, have had the mantra Break the rules whenever possible! from the beginning. Following the outdated rules governing the upholstery manufacturing industry when they started their company in 1989 would have put them on a path to destruction. Few, if any, management philosophies taking hold in the larger business world were on the minds of manufacturing executives. Industry-wide, supply chain management and customer service was a joke. Total quality management (TQM), let alone customer resource management (CRM), was nowhere to be found. When a customer placed an order for a custom upholstery couch, a customer service representative (CSR) told the customer the couch would arrive in ten weeks. Ten weeks later, however, the couch wasnt ready and no one knew when it would be. Rules Broken by MG + BW Produce Mission-Style Furniture, Not Mission Statements Until recently, furniture manufacturers idea of mission was limited to a style of heavy oak furniture. Gold and Williams had a clear sense of how they wanted to run their business, so they wrote it down. Following is a summarized version of the MG + BW mission: Guarantee comfort Minimize costs to ensure price points represent understandable value to customers. Enforce rigorous standards for quality materials and quality control to achieve no returns and real consumer satisfaction. Sincerely treat all customers as we want to be treated. Create styling that we want in our homesinviting, warm, an oasis of quiet and calm. Manufacture products in a way that preserves our rich environment for future generations Make a Profit from Cutting Corners Furniture manufacturers are notorious for skimping on materials whenever possible, especially when the difference might seem imperceptible to customers. For example, many manufacturers use low-cost materials such as soft woods, particleboard, or plastic to construct their frames. MG +BW uses solid kiln-dried hardwoods, logged using sustainable methods, to construct its products. Gold and Williams are convinced that using cheap materials only hurts company. Pay Factory Workers by the Hour To meet delivery promises to customers, MG + BW needed to run a more efficient operation, so the company instituted an incentive-based pay structure at its Taylorville, North Carolina, factory. Most production is done by hand, so instead of hourly wages, factory employees get paid for each piece they complete. When they work faster, everybody wins. Quality assurance meetings involving representatives from the factory floor are held regularly to identify process improvements Full Employee Benefits Are Optional By industry standards; MG + BWs approach to benefits is pretty unusual. Apparently, offering full benefits to employees and generous benefits to spouses, partners, and other family members is downright radical. For its employees, MG + BW also built a health-conscious caf, a gym and indoor walking track, and the first on-site daycare ever to exist in the furniture industry. College scholarships are awarded annually to the employees children as well Cater to the Masses Uninterested in catering to the lowest common denominator, MG + BW was the first in its industry to target a niche market. Gold loves to say, Our emphasis is on taking care of a small and highly select number of customers extremely well. Strategic Alliances Are for Countries To reach its customers, MG + BW blazed new trails in channel strategy, starting with a deal to produce private-label furniture for Pottery Barn. Additional partners include Crate & Barrel, Restoration Hard-ware, Chambers (catalog), and more. Thanks to another strategic coup, the W Hotels furnish their rooms with MG + BWs furniture, too. Gold and Williams have become the Couch Kings. The competition tries to play by their rules now. As they celebrate 20 years in business and $100 million in sales, it seems their renegade methods have paid off. 1. How does the humanistic perspective apply to MG + BWs treatment of employees?