This thing called culture featuring Doug Portmann with Modern Molding, Inc.

Written by John P. Palen for Minnesota Business Magazine February 2013

How one returning founder focused on creating the right environment for his employees

It was 2008 and Modern Molding in Delano was operating like a well-oiled machine. Founder Doug Portmann had taken some time away from business to learn to fly an Xtra (an acrobatic plane) competitively and to relax at his cabin on Woman Lake in northern Minnesota.

It seemed like a time that every hard-working entrepreneur dreams about: enjoying the fruits of one's labor after building a solid management team that can operate successfully whether you're there or not. But for Portmann, something was missing.

"I would take a bit of time off here and there but could never detach fully," he admits. "Frankly, I got bored with personal exploration. I needed to get more involved with the business again."

The true spirit of entrepreneurship tugged. Portmann responded by choosing to expand Modern Molding's facility by 37,000 square feet. He is more actively at the helm again, challenging his team to fill the space with new projects at a time when many companies are still recovering from negative to flat growth.

It's a worthy challenge. In order to grow from $3 million in revenue in 2001 to $9 million in 2011, Portmann had to let go of some control and reorganize his leadership structure. He hired a vice president of sales who evolved into a general manager of operations in charge of developing a new sales team. New process and procedures were established to make every area of the company more efficient. The company became ISO-certified. On-time delivery improved to more than 99.3 percent, and defects declined substantially to below 62 parts per million.

All of this change required time, money, and trial and error. Portmann thrived on it: "I have always worked for myself in several different small businesses in Minnesota. But when Modern Molding reached $3 million, I realized I needed more help."

But he hates borrowing money. Most of the company's growth came from investing profits back into the business and planning each move with profits and customer needs in mind rather than sales. Saving customers time by offering new tools and services in-house also saved customers money, which eventually led to more orders and profit.

Long ago, Modern Molding looked at ways to partner with customers on solutions rather than just take orders. The company is known for its design, engineering, and problem solving as much as for its production.

Today Portmann has become more interested in "this thing called culture," in finding ways to give back to his employees and to the community. He wants to be sure that his working environment is one where employees can be personally fulfilled and thrive.

"Our next opportunity is to more clearly define how we can better align with our core values and create ways to reward, recognize, and celebrate more effectively," he says.

It's a trend Portmann hopes to leverage for additional growth, something he can sink his teeth into as a seasoned entrepreneur looking for a fresh challenge.

As for resting on the fruits of one's labor Portmann has a better understanding now of a true Minnesota entrepreneur.

"There are different ways to fly," he says.