In a recent episode of the Founders podcast, host David Senra dove deep into the story of Robert Kierlin, the visionary founder of Fastenal. Despite selling commodity products, Fastenal has achieved remarkable success, growing from a single location in 1967 to over 3,400 stores today. The secret to their success? A relentless focus on cost control and a people-centered approach that empowers employees at every level.
Kierlin’s core philosophy can be summed up in one simple yet powerful idea: commit the entire organization to a common goal. For Fastenal, that goal is “growth through customer service.” By keeping the organization focused on this shared purpose, Kierlin has built a company that consistently outperforms its competitors.
As Kierlin explains, “Organizations succeed to the extent that all of their members pursue a common goal. This is one of those simple ideas that are so difficult to practice.” He warns of the dangers of subgroups pursuing their own agendas, which can undermine the overall mission of the company.
Central to Fastenal’s success is its people-centered approach. The company hires high-quality employees and provides them with opportunities for growth, with most executives starting in entry-level positions. Kierlin emphasizes the importance of treating everyone equally and avoiding special treatment for executives.
“If the engineers can take off to watch their kids in a softball game, so can the lathe operators and the data entry people,” Kierlin notes. This egalitarian approach fosters a sense of unity and shared purpose throughout the organization.
Fastenal also embraces decentralized decision-making, empowering employees at all levels to contribute ideas and solve problems. Leaders are encouraged to act as coaches rather than managers, challenging their teams to find the best ways to achieve their goals.
A leader is somewhat like that of the master learner among apprentice learners of all different levels, with the intention of developing more master learners to allow the organization to grow.
Kierlin explains.
Continuous learning and teaching are key responsibilities of leadership at Fastenal. Kierlin himself is a lifelong learner, constantly seeking to improve and grow. “At my senior citizen age, I am still improving,” he shares. “Perhaps at a faster rate than I was several decades ago.”
Preparing for the future is another critical aspect of Fastenal’s success. The company’s decentralized structure allows for flexibility and adaptability, while a focus on innovation keeps them ahead of the curve. The development of an industrial vending machine system, for example, has become a major contributor to Fastenal’s sales.
Throughout the book, Kierlin emphasizes the importance of suppressing ego and valuing the uniqueness of each individual. He offers ten basic rules of leadership, centered on empathy, equality, and continuous learning.
“Follow these rules and provide leadership to your world,” Kierlin advises. “The example that we set in the workplace will live on after us.”
By becoming leaders and making the world a better place, Kierlin believes we can influence others beyond our own generation. It’s a powerful message that resonates throughout the story of Fastenal’s success.
For anyone looking to build a thriving, people-centered organization, the lessons of Robert Kierlin and Fastenal are invaluable. By staying true to a common goal, empowering employees, and continuously learning and growing, companies can achieve remarkable success – even in the most competitive of industries.
