Jim Herr, president of Parron Hall Office

Interiors in San Diego, doesn't take long to

reflect when asked to identify the reasons

for his company's success. "Longevity and

consistency," responds Herr. Longevity and

consistency in staff, clients, and the manufacturers

it represents. Makes sense considering

the company has been around for

61 years.

Parron Hall has 51 employees with an

average tenure of 11 years. Average tenure

on the sales side is a bit longer-12 years-

and nearly 15 years for employees who

work in its distribution department.

"In terms of tenured sales staff, we bring real

expertise to the table that often puts us at a

competitive advantage," maintains Herr.

"There's a complexity to this industry that

everybody on the contract side recognizes

and the way we dealt with that was to

really do all the things necessary to keep

our staff consistent. Our management

team has almost 15 years' average tenure

and that's been key as well."

One reason why people like working for

Parron Hall is the confidence they have in

management. "We have a very elastic cost

structure that means we don't have to lay

off employees during a downturn," explains

Herr.

The company smartly handles major

installation projects by outsourcing those

functions as necessary. "Not being in that

cycle of staffing up and laying off, we're

viewed by our people as a stable place to

work," says Herr.

A cash-incentive bonus plan rewards employees

at the end of the year and the

company contributes to employee's 401k's.

In 2006, a peak year for the company,

Parron Hall paid out $270,000 in cash

incentives and 401k contributions.

"When you put up that kind of money,

you're saying, ‘You're an important part of

the team and you are what's made this

great year possible,'" says Herr. "I think that

speaks volumes and gives people loyalty

so that when times aren't so good, they're

committed to being part of the team that's

going to make it a better day."

Herr has been with the company for the

past 30 years. Although Parron Hall has

some significant tenure in the market, it

wasn't always the market leader it is today.

What's changed? To start with, 12 years

ago, the company became a Knoll dealer.

Thanks to the Knoll line Parron Hall's

government business is growing like crazy,

Herr reports. This year he expects government

accounts to make up 20-25% of

overall business.

Education and healthcare are also two key

verticals and two of the area's largest

healthcare clients are among Parron Hall's

five largest clients. Speaking of longevity,

Herr, then in college, was delivering furniture

to those very same healthcare clients

more than 30 years ago.

While consistency is the hallmark of

Parron Hall, the ability to evolve with the

industry and the market remains instrumental

to its longevity. And after 30 years,

Herr still loves it.

"I just enjoy the strategic and marketing

sides of the company," says Herr. "From

adding architectural products, to classroom

furniture, to becoming a Knoll dealer,

getting into the government market...

doing all those things and seeing them

successful over time has been very satisfying

to me, as are all the great people I've

worked with for so many years."

MAY 2008 INDEPENDENT DEALER PAGE 9

Employees: 51

Revenues: $26.3 million

In business since: 1947

Web: www.parronhall.com

Parron Hall Office Interiors:

A Model of

Consistency