Attracting the best talent starts with being the best place to work. In this episode, Chad Knight shares how he transformed a small backflow testing company into a thriving tech-forward irrigation business by focusing on clear organizational values. He emphasizes the importance of hiring people who align with those values and ensuring that they can focus on fantastic work instead of repetitive tasks that automation can handle. Chad's journey highlights the balance between leveraging technology and maintaining a strong company culture, which he believes is essential for sustainable growth. If you want to elevate your landscaping business, understanding the value of your team and creating an environment where they can thrive is key.

The Landscape Growth Lab Podcast EP. 1:

Your Landscaping Business Needs to Be the Best Place to Work | Company Culture = Team Retention

0:00 - Values-Based Hiring Success

0:51 - Landscape Growth Lab Introduction

1:05 - Chad Knight's Background Story

2:55 - Organizational Values Framework

5:52 - Creating Scalable Systems

8:32 - Technology and Automation Impact

11:12 - Counterintuitive Hiring Decisions

14:32 - Premium Service Positioning

17:12 - Deep Green Technology Division

19:12 - Firewise Landscaping Approach

23:42 - Future of Irrigation Business

28:55 - Best Workplace Philosophy

Chad Knight's journey from COO of EarthCruiser to the owner of Deschutes Backflow is a testament to how values shape a business's success. He emphasizes the importance of hiring based on alignment with core values like courage, excellence, growth, and teamwork. By establishing these values, Chad creates a framework that empowers his team to make decisions autonomously, allowing for a scalable and efficient operation. The focus on building a company culture where employees feel valued not only attracts top talent but also drives the organization toward sustainable growth. Chad's insights into automation further highlight his strategy for maintaining quality service without overextending the workforce. He argues that by leveraging technology to handle repetitive tasks, businesses can free skilled workers to focus on providing exceptional service, thus creating a competitive edge in the irrigation industry.

Moreover, Chad discusses the evolving challenges of labor shortages in the landscaping sector and the need for businesses to adapt. He believes that companies must automate processes to thrive amidst increasing demands for efficiency. His commitment to training and developing a small, elite team stands out as a crucial element of his business philosophy. As the conversation unfolds, the idea of integrating deep green technology for water conservation emerges as a defining aspect of Chad's approach, marrying his commitment to environmental stewardship with practical business strategies. This episode ultimately underscores the message that aligning a company's operations with its core values is essential for fostering a resilient and thriving business in today's competitive landscape.

Links referenced in this episode:

• deschutesbackflow.com
• landscapebusinessgrowthlab.com
• everbearingservices.com

Companies mentioned in this episode:

• Everbearing Services
• EarthCruiser Overland Vehicles
• Deschutes Backflow

If you're the best place to work, you can attract the best people.

By ensuring that everybody that's part of this organization is clear on why we do things and how we do things, I'm able to step back and let the fantastic people that we hire do the fantastic things that they do. Make sure that the fantastic people that you hire are doing fantastic things and not simple things that can be done by automation.

You're listening to Landscape Business Growth Lab podcast. I'm your host, Ron McCabe, founder of Everbearing Services.

On this podcast, I uncover the landscaping and outdoor living industry's best kept secrets. You'll hear exclusive interviews with industry innovators, discover cutting edge strategies from the fastest growing businesses in the green space.

We're also going to explore game changing technologies that are at the tip of the shears. This is where seasoned landscapers and those who are just breaking ground in the industry grow together. Let's roll out the green carpet.

Thanks for listening.

Today I'm joined by Chad Knight, a remarkable entrepreneur who has transferred a small backflow testing company into a thriving tech forward irrigation business. The chute's backflow will triple its revenues by the end of year two.

What makes Chad's story particularly compelling is that he came from completely outside the green industry as the former COO of EarthCruiser Overland Vehicles, a high end expedition vehicle manufacturer in Bend, Oregon.

In today's conversation we'll explore how Chad focused on company values and philosophy while leveraging his operational skills and technology to create a competitive advantage. Chad, tell us about your background.

Thanks Ron, appreciate that. Yeah, I, I'm a Navy veteran and I've got an engineering degree from Oregon State University.

As you mentioned, I was with Earth Cruiser over Land vehicles for about 10 years before this and so my background is in manufacturing. In that role I did a lot of there's a lot of leadership which is wonderful, but not a lot of engineering.

And after a number of years of not being able to work in design or development, I kind of decided that was something I wanted to go back to. And my, my degree is in energy systems engineering.

And so living in the high desert water and water of the resource is something that continued to kind of float through my mind and, and so through a number of different things this company kind of came into my fear and was, was for sale and the previous owners had a very high standard of quality and customer care which was something that I had gotten used to with, with Earth Cruiser. It's something that was very important to me in any, any endeavor that I took on. And so it was just a good fit.

And, and so, yeah, all, all of those things kind of aligned and, and, and I, I ended up transitioning into being the owner of a small irrigation company.

Yeah.

So that's, that kind of, that, that's, that's the short of it.

Great. Well, hey, can you tell me more about Deschutes Backflows organizational values and how they guided your decision making today?

Absolutely.

And that's, and that's something we take very seriously and something that I've kind of developed over my career is really identifying what organizational, what your organizational values are and then ensuring that they align with business direction.

And once they've been really clearly defined, ensuring that you set your organizational processes and procedures up to permeate or align with, with those values in everything that you do.

And so, for example, in the hiring process, if you're really clear on what your values are, then you're going to, you're going to write job descriptions that, that embody those values, which is then going to attract people that have those values. And then you're going to make hiring decisions based on people that align, you know, with those values the best.

And so, you know, from the beginning, we defined the four values of Deschutes Backflow as courage, excellence, growth and team.

And I think we've done a really good job ensuring that those values are talked about on a daily basis, that we review any kind of decisions that we're going to make, any kind of strategic direction that we're thinking about taking through the lens of those values, and then any mistakes that we make, any decisions that we, you know, we feel like we should have made differently, we take a look at how, you know, how that decision aligned with those values and maybe where it didn't align with those values.

And so I think that that as, as an organization who, who puts those things first, we, we are able to not only, not only do the things that are important to us and make and make healthy decisions, but also we're, we're able to create an organization that's very SC of my first and foremost goals in coming into this business is creating a, a business that we can grow in a very healthy and sustainable way.

And by focusing on values, you know, like I said, not only do you hire people that align with, with who you are as an organization, but you also give them really clear parameters to be able to make decisions on their own.

If, if I'm, you know, if I need to be involved in every, in every decision because I'M the owner, then clearly that's not a scalable, that's not a scalable system.

So by, by ensuring that everybody, that part of this organization is clear on why we do things and how we do things, I'm able to step back and let the fantastic people that we hire do the fantastic things that, that they do. Right. Because. Because it's just a kind of this clear framework that they're able to operate within.

And so it sounds like you've created some standard operating procedures or SOPs for people. Have you engaged your team to create SOPs for you that you review? How did, how does that work?

Yeah, I mean, it's, it's kind of a, an iterative process that goes back and forth. Right. So I'll, I'll throw something together based on how I, how I think a process should work. And, you know, coming from. This is.

One of the really interesting parts about this, is that, you know, obviously I come from outside of this industry, and so there's a lot of things about the green industry that I don't know that the people that I work with that they're part of the team know significantly more about. And so it's sometimes it's pretty silly for me to be writing SOPs because I'm probably the least experienced person in the room. And so.

Right.

You know, it's a start.

Like I'll create a framework and I will, you know, I've got, we've got a, you know, some templates and, and, and I'll kind of put down what I think, what I think the process is going to look like, and then I'll put it out to, to our people and get them to refine. Sometimes we'll operate for a few weeks in the field on these procedures to find the challenges or find the places where, where they don't work.

And then we'll, and then we'll revise and, and come to, you know, come to something that, that we can all be happy with. As, you know, things are always, things are always evolving because we're always looking to improve. We're always looking to increase efficiency.

And so a process, you know, as defined initially doesn't usually stay that way long because we're constantly finding better ways of doing things.

So you're, you're willing to kill it and kind of move on. And kind of related to that, what systems and process improvements have you made that has the biggest impact on your growth?

Absolutely. Great question. Mostly, Mostly it's technology that's allowed us to automate. We like to think of ourselves as a small elite team of professionals.

And that's the kind of company that I've always wanted to have and that's the kind of company that I want to maintain.

And so when I say, you know, we want to grow sustainably, what that means is we want to grow revenue and we want to grow margins, but we don't necessarily want to add a lot of people. We want to be the company that can accomplish really big things without needing to have a really big team.

Because having a really big team affects your culture. Having a really big team affects the, the all things.

And so because of that, we, we have to be highly efficient and we have to have processes that don't require people unless absolutely necessary, finding ways to use software or applications to handle tasks that in this industry maybe traditionally are handled by a person. That's the key for us. You know, from a, from a marketing perspective and a lead generation perspective, customer management perspective.

And then from, you know, what we were talking about a minute ago, SOPs just making sure that that where at all possible.

We've, we've designed and developed and then, and then documented processes that, that have people doing the things that people should be doing and not doing the things that, that a computer can be doing.

So kind of looking at it and kind of do more of this and less of that and kind of adjusting your priorities.

Y. Yeah, we have, we have incredible people that work here and they should be doing incredible things, not repetitive tasks that can be handled by, you know, a software system.

Right, right. And, and so you use automation and you kind of work on efficiency, which makes sense with your operational background.

And, and I like the idea of, you know, the lean and mean team and, and really just focusing on getting a. Players and having less people. I think that's better for personal opinion, but I think that's better for everyone, everyone involved.

And so you've done some things that are a little different, which is cool.

You know, kind of what are the counterintuitive hiring and training decisions that you've made that maybe a traditional landscape business might consider risky?

And I don't know if they're counterintuitive.

I think that one of the advantages that I have, which is, you know, can be a disadvantage too, but, but coming from outside of this industry and not knowing a lot of the ways that, that, you know, landscaping companies had operated when I came into it, gave me a different perspective. And then with me I brought how do manufacturing companies operate and how do we, you know, how to.

Engineers Solve problems and how do they look at different challenges. And so, you know, one thing that we do well, like I said earlier, values driven.

You know, we hire first and foremost and you know, 95% on values alignment. So when we're, when we're talking to potential candidates or when we're writing job descriptions, we're really clear on what's important to us.

Like I said, you know, team excellence, courage and growth, right? Like, like we want people that, not afraid to do new things, right.

We want people that have the highest quality, both workmanship and customer service standards. We want people that, you know, are here to build and be a part of a fantastic team and put the team's need first before their own.

And fusing that into our hiring process and really focusing on that, we're able to attract and then, and then hire people that, that match those, that match those values, which then can, you know, creates and continues to, to allow us to build this highly elite team. A really, really positive thing as well.

In addition to hiring based on values, we also put a lot of time in training and development because we have a premium product. That's something that's always been really important to me and it's coming from the, the overlanding industry.

We had a expensive, very high quality product and there's a lot of advantages in a marketplace that, to being in that position. And so coming into the irrigation industry, the, the company deschutes backflow.

The, the previous owners had built exactly that, a very high quality brand.

And and so my job was to take that and scale it without, without losing any of that quality or, or customer perception which allows us to, you know, just allows us to position ourselves in a way that gives us flexibility in pricing decisions and gives us flexibility when it comes to, you know, releasing new things into the market.

It's just a really, it's a really strong position to be in an industry that can become saturated and can become, you know, full of, we call backflow testing the commodity for the most part, right?

When you, when you, when you get a letter from the city that says that you need to have a backflow test, most of the time you don't really care who does the test as long as it gets done. And so it's hard to differentiate yourself in that market.

And the way that we do that is by having very high quality people that do a very high quality job and focus on very high quality customer service so that once we have you as a customer, you have no reason to ever go look anywhere else. And that very High quality product transcends price a lot of times. Right. Because. And we're definitely not the most expensive in the market either.

And that's not our intention. But we're not the cheapest and we won't ever be.

And our customers are willing to pay a little bit more for the level of quality and service that they get from us. And that is driven by the training process that we have that we implement. In addition to that, you know, we've.

Again, I don't know if this is risky or, or non traditional, but we prioritize problem solvers, you know that those are that far of our values, critical thinking and attitude over experience every time. Which, which then goes back to the training process. Right.

If we hire people that, that align with our values, that have the right attitude, that are there in this for the same reasons we are also the level of experience that creates that, that high quality product. And so you have to invest the time and money into training.

Right? Right.

Well, it seems like you do a really good job of creating guidelines with them and having them as part of the process and then you know, kind of once you create the process, replicating it throughout your organization. And it sounds to me like also you give them good guidelines as far as the decisions they can make on their own and kind of when to do that.

I think so.

And I think again, and I'll probably say this over and over again, he goes back to, it goes back to the, the, the clear definition of values because you know, if we're aligned there, there's not a lot of limitations on the decisions that I'm willing to pass on. Once, once, once the training and the experience is, is there, where they have the tools to make those decisions. That, that's the goal.

The goal is that I don't, you know, I don't need to be here.

The goal is that can grow and thrive and quality and customer care can, can improve because we've hired people that, that's just as important to, if not more important to, than it, than it is to me. Right. I mean you're always looking to replace yourself with people that are better than you are.

So by, by clearly defining that, we're able to, to do that on a daily basis.

That's great. That's great. I guess, you know, and we really haven't talked about it. But again, you've got your own unique spin on things.

How does your deep green technology divisions challenge the irrigation industry's assumptions about water conservation? Conservation and smart technology?

Yeah, absolutely. And that kind of Goes back to the reason that I got into this business in the first slate.

It was, it was looking to get back into design and development, having a passion for water and water conservation and feeling like we could probably figure out ways to do things a bit differently.

Our deep green technology division is focused on using technology as well as refined processes to reduce the amount of water that we use as a community.

Which is critically important because I have a 10 year old daughter and if she's going to have a similar lifestyle to what I have here in the high desert, we have to change the way that we do things using tried and true irrigation practices that create high quality systems.

But interweaving those with proven technologies that allow systems to perform at a, at a significantly higher level is, is really what, what deep green technology is about.

And we have, you know, both people who are, are trained and, and able to implement current technologies that are on the market as well as, you know, like I said, we're developers and designers. We're, we're creating our own, our own systems that we feel are going to, to help in that cause as well.

And so aligning Deschutes Backflow, the focus on quality and superior service with deep green technology, where we're focused on those things as well. But in addition, bringing a conservation element to it is really what that's about.

Okay, so Chad, maybe what I can do is say, you know, there's been recent, you know, we're experiencing recent wildfire. You know, we've had recent wildfires all across the U.S. you know, Palisades is one that comes to mind. I know Bend has had issues as well.

Irrigation technology, how does it kind of create a buffer for fires? Like what's, you know. I know. And Ben, they call it the firewise approach. Yep. Can you talk a little bit about that?

It's a really important conversation because I feel like traditionally you have a water wise approach and then you have a firewise approach and they don't necessarily align. That's one of the things that at the company we're really working on doing is, is to provide fire prevention services as well.

I mean it's not one of our values necessarily, but one of those things that is, has always been really important to this company and kind of, I think permeates the culture is, is protection. Right. Like as a, as a backflow testing company, we protect people from contaminants. Water.

We make sure that the water that you're drinking or that you're, you know, given to your grandkids when they're over at your house is clean.

And so it makes sense that, that with protecting our communities in that way that we, you know, can also protect our communities by, by making sure that your, you know, your brush is cleaned up and your house is as, as firewise as possible. In addition to that and what we really feel, where we can really make a difference is the irrigation piece. And, and through, through deep irrigation.

One of the, one of the important things that we're able to do is, is give people an op. An option to irrigate turf areas using significantly less water.

And that's really important because one of the, one of the solutions for water wise communities for a long time has been to remove turf. And of course that does reduce water usage but unfortunately it also creates opportunities because a lot of times it's just replaced by mulch.

And, and as fires move through encafe and embers edifiers, you know, mulch is something that's pretty easy to light off. And so those green, those lush green spaces around your home are one of the best deterrents to, to wildfire.

And so we feel like by, by giving people an option and the opportunity to keep some of their useful turf area and also feel really good about their water usage. We're also helping to align water wise landscapes with firewise landscapes.

That's great.

Well and you know, it improves their natural environment and really the trade off has been water and if you can solve that and it sounds like you've got some good solutions in that area, it, you know, creates a better environment, it's safer as far as fires and it's just, it's better for everyone.

Yeah, yeah, yeah. From a heat, heat reflection standpoint, from a, I mean, you know, bugs and wildlife and air quality and just, just enjoyment.

Visually appealing landscapes. Green, green grass. Add the lot to a, to an overall picture.

Right.

It's not, it's not the, it's not the only solution. And there should be diversity and there should be areas that don't have grass. Absolutely.

But it is, it is a piece of a, of a healthy picture, I believe. We believe.

Right. So we've talked a lot about how you're innovating and changing things.

You're delivering, you know, a service that some people would say is a commodity but in a premium way. And you know, you're enabling your teams and implementing automation.

You know, with all this change and irrigation, everything that's coming out, you know, what do you feel like is going to separate a thriving irrigation business from the dying ones in the next five Years like why do you think you're going to hit it out of the park? And what is the change that people need to make if they want to thrive in this competitive, creative environment?

Yeah, there's a couple things and I mean I'm a bit biased, you know, based on the things that we've talked about, obviously, but also living in, living in, in this community. We have some, you know, some specific challenges that I feel like companies in this area are going to have to overcome to be successful.

And so I'll talk to that. Which may not apply in other areas, but labor, labor is a really big one. You know, even, even or, or especially in, in the manufacturing world.

You know, labor in Ethereum has always been really challenging to find skilled labor. And then, and then post Covid, it's even, it's even more difficult.

And so I, I think that companies that can again automate remove tasks and, and jobs that, that used to require people and create systems that, that, that lower the requirement for that skilled labor, that's how that's survive. Because I don't see it getting any easier to find skilled labor in this area.

And well, now everybody tells me it's getting harder.

Yeah, yeah. I mean it, you know, and if you're, if you're looking to grow from a financial perspective, right.

Not only if it keeps getting harder, it also keeps getting expensive. Right. Supply and demand.

Right.

So, you know, you keep, you continue to, to watch your margins shrink as you, as you need to pay people more, which is you should pay people more.

I mean, that's, that's why it's so hard in this area because it's so the cost of living is so high and so um, it's really challenging to find people that can afford to live here and can do that work. And so, you know, we should pay more.

Our goal is to be a small elite team of professionals where because we're small, I can afford to pay people at the absolute top tier of position while still having reasonable margins of the company because we've automated everything else and I don't have to have any more labor than I need.

And so I think, I think from a, from just an operating perspective just to be able to get work done in the next five years, you're going to need to reduce the amount of labor required to run your business. But I also think from a financial perspective it's going to be critical to be able to keep the margins that you need to survive and to thrive.

And then, and then number two is the conservation focus I think, I mean in the irrigation industry specifically, we continue to see additional government city driven mandates around water usage. In the Southwest, you've seen this for years already.

I don't see any reason why we won't continue to see more restrictions on water usage, more restrictions on the type of equipment we can install. Honestly, I feel like it's the right thing to do.

Like I said, I think that we need to change the way that we look at residential and commercial irrigation because we have to make some changes if we're going to sustain the quality of living that we have.

And so I think as a company, in order to be successful, that has to be a focus not just because the restriction, but because I think customers are going to demand that.

And people, people are already shifting mentality and people, you know, for years have been looking to upgrade to high efficiency irrigation equipment. And you know, it's important to customers.

And so as, as those challenges continue to increase, I think it's just going to get more and more important. And if, if you have a, a company and a brand that, that is aligned with that, I think you're, you're going to be much more successful.

Yeah, no, that makes sense to me.

And, and it certainly seems like that's where things are going and I, I think that creates a lot of opportunity for people, but it also has some inherent challenges. And. Yeah, so it sounds like you're doing a lot to address that. You know, as this becomes more and more of an issue.

I like to think so. I mean, we talk a little bit about how it's easy to do the same thing we've always done. And this is not just in the irrigation industry.

It's in, it's in all industries. But people don't like to change.

And so if what you've been doing is still acceptable to the customer base and you're able to generate business by doing it, why do it any differently? It costs money to change. It's challenging.

Right.

But I feel like we're seeing this transition coming and we're spending that money and putting in that effort now to get ahead of it.

And I think by doing the hard things, which is what I like to think we do as a company, solving the hard problems, we are going to put ourselves in a position to be on the forefront of that wave that is that advance on its way.

Right, right. Well, Chad, as we kind of wrap up, you've had a lot of insights you've provided to us today. And so kind of, here's my question.

If you can Only give one piece of advice to a landscape business owner from your journey. What fundamentally should they change on their trajectory? Like, like, you know, what would fundamentally change?

I think it's always been people and you know, from, from a few different angles. Right. Like we talked about, reducing the number of people you need through automation. That's a part of it.

But the most important part is, is to just be the best place to work. I think coming into this, that was outside of everything else that has been and will continue to be our goal.

Because one, I want to be a part of the best place to work. But also two, if, if you're the best place to work, you can attract the best people, you immediately have a competitive advantage.

That that is, is I think, probably one of the most important ones that you can have. And so, you know, do what, do what you need to do to clarify your vision and your values so that you find people that align with those.

Because, you know, if they don't align with them, that doesn't mean that, that, that they're wrong. It's just they're not the right fit for you.

And so if you can be really clear, crystal clear on, on where you're going and how you're going to get there, you can find people that want to go in the same direction and then you can multiply your efforts and create, you know, where they say it's more than the sum of its parts. Right. It's more than one plus one.

And I think that's what, that's what we do when we, when we find people who are fundamentally aligned with, with our values and our vision and our regulation. So, so yeah, focus on people.

Be the best place to work that value, weather the, the coming challenges with labor in this industry and, and multiple other industries and then make sure that the fantastic people that you hire are doing fantastic things and not simple things that can be done by automation.

So, Chad, thank you.

Any of you want to learn more about chad's innovations@deschutesbackflow.com or reach him directly at chadeepgreenirrigation.com that's a wrap on today's episode of Landscape Business Growth Lab podcast. I hope you picked up some fresh ideas to help your business grow. Remember, growth doesn't happen overnight.

It takes the right tools, strategies, and consistent cultivation. If you found value in today's show, subscribe, Leave us a five star review.

Share this episode with a fellow green industry professional who's ready to level up. For more resources, show notes and exclusive content, visit us at landscape Business growth lab dot com.

And if you want to connect directly, you can find me at Everbearing Services. Until next time, I'm Ron McCabe, reminding you to keep your tools sharp and your mindset sharper. Now get out there and grow something great.