Kristin Anderson was named CEO of Eric F. Anderson, Inc. in 2013 after the unexpected death of her dad, the company’s former leader, Donald Anderson.

Project Manager Brad Potestio (left), CEO Kristin Anderson (middle), and Superintendent Ed Goff review plans of the College Terrace Market tenant improvement project in Palo Alto, Calif.

In 2010, all was going according to plan for Kristin Anderson, who had worked since 2008 as Project Manager and Director of Marketing for Eric F. Anderson, Inc. (EFA). The family-owned construction company, established in 1945 by her grandfather and located in the San Francisco Bay area, was being led by her dad, Donald “Don” Anderson. The idea was for her to take a number of years to learn the different aspects of the business, then take over leadership when her dad eventually would retire. That all changed when, after a brief illness, Kristin’s dad died.

By 2013, Kristin was named CEO. In 2015, the company’s 70th year in operation, Kristin’s annual address to the staff included her future vision for the company: “I want to grow—grow our people, sales, technology and clients—while maintaining the same focus and core values that we have had for the past 70 years.”

The company has built its reputation on integrity, hard work and fairness to all—clients, employees and the community. Kristin’s job, as she sees it, is to continue this tradition, but also to embrace new management techniques and technology in order to remain competitive and grow. “We want to remain strong as a company so we can provide for our clients and employees,” explains Kristin, “just like my father and grandfather before me.”

Training and Mentorship Aid in Ownership Transition

Like most children of family business owners, Kristin learned quite a bit about the business through osmosis and odd jobs while growing up. As a young adult, she wasn’t certain she wanted to continue to work for the family business after college as a career. She also was keenly aware that there are educational and professional networking benefits to be gained by working for others to bring back to a family-run company. Kristin decided to pursue a career as a mechanical engineer and earned a B.S. from Santa Clara University. She worked as an applications engineer and product manager in the semiconductor industry for more than 10 years. In answer to her dad’s repeated invitations, she returned to the family-owned business in 2008. After serving two years as EFA’s Project Manager for new construction and renovation projects in the grocery and retail industry, Kristin transitioned into the role of Director of Marketing.

When her husband died, Leona Anderson, Kristin’s mother, inherited the business and immediately immersed herself in company operations to determine its fate. “While it was a struggle the first year,” recalls Leona, “we felt compelled to carry on the family business for our clients, our employees and ourselves. Kristin has proven to be a respected leader. She fully understands what makes our construction company unique. Most importantly, Don selected and trained her to be his successor.”

Kristin credits her involvement in Vistage Worldwide with helping her tackle the challenge of leading the company. Established in 1957, Vistage groups CEOs of various firms into local Private Advisory Boards that meet monthly to help each other improve their businesses. “My dad was a member of Vistage and said it was extremely helpful to him. I honestly don’t know if I would have been willing to take on such an important role without the support of this mentor group,” she says.
The Results are Gaining Traction
Under Kristin’s direction, the management team at EFA has implemented business and project enhancements and a greater use of technology. Now nearly four years after Kristin was named CEO, the results are pouring in. The San Francisco Times ranked the company in its 2016 Top Contractors list, and Bisnow named Kristin one of 2016’s 50 most powerful women in the Bay area for commercial real estate.

The leadership transition is now complete, with three individuals spearheading the company’s newly defined divisions—Construction and Fixture Installation led by Aaron Aldrich, Fixture Maintenance and Repair Services managed by Nathan Trahern, and Cabinet and Fixture Fabrication (dba Five Star Fixtures) directed by Dean McCook.

An updated vision and strategic plan is in place with progress on all fronts being reported. “We work hard to maintain the core values of customer service, product quality, and taking care of employees,” says Kristin. “We are a 72-year-old company competing with smaller, younger, more agile contractors. We have to maximize use of the very best management and technology tools so that we can be better than our competitors, and in a more cost-effective way.”

Through a team effort on the part of its employees, subcontractors and suppliers, the company proudly retains about 80% of its clients, the same retention rate enjoyed by the company under Don’s leadership.

Company leadership instituted the Entrepreneurial Operating System® as presented in Gino Wickman’s book, “Traction: Get a Grip on Your Business.” The management team meets weekly to discuss process and technology improvements, which are delegated to internal teams and individuals to implement and monitor. Each department documents standard operating procedures to ensure consistency and continuity in the provision of the company’s services.

Five Star Fixtures—the company’s cabinet and fixtures subsidiary—has been reinvented, doubling its revenues by reaching out directly to other contractors and owners and specializing in high-end hotel finishes.

Technology investments support operations and project management growth. “One of our strategic goals in 2017 is to identify and implement new software and technology solutions across all departments to help make us more efficient,” states Kristin. Tablet computers, for example, provide her field staff with access to the most recent project plans, and enhances coordination and communication capabilities.

Based on recommendations from several clients, including Kaiser Permanente, one of the nation’s largest health care providers, EFA became a certified Women-Owned Business Enterprise (WBE). This achievement has unlocked new opportunities in both public and private work. Since receiving WBE status, EFA has secured several cabinetry projects for Kaiser Permanente as it continues to pursue a larger presence, as well as two bank tenant improvement projects.

The EFA Tradition Continues to Thrive

EFA began building local supermarkets. Today, it reports $25 million in annual sales and has 55 employees. The firm specializes in construction, renovation, maintenance and interior fit-outs within markets including retail, grocery, bank, commercial, industrial and warehouse, with projects ranging from $100,000 to $7 million. It has a special group set up to handle small projects quickly and cost-effectively, as well. Located in San Leandro and adjacent to the Oakland International Airport, the company touts projects throughout California and in the states of Nevada and Washington.

The company learned long ago that having in-house capabilities to fabricate and install cabinetry and fixtures is a true advantage, one that helps meet the demanding schedules of clients. “Few construction firms in the Bay area have this capability,” says Kristin, “and that really sets us apart from the competition. When you serve restaurants, grocery and retail establishments like Whole Foods Market, Safeway, Wells Fargo and CVS, you have to have a complete understanding of their turnaround requirements and the financial implications related to remaining open for business.”

EFA is one of a handful of companies that provides emergency repair services on a 24-hour, 7-day-a-week basis. For instance, EFA was one of the first on the scene after the 2014 earthquake in Napa Valley. A Safeway store located downtown had incurred significant structural damage. The interior of the store was a complete loss; yet, within days of the earthquake, EFA made the area safe and secure for store employees to enter and do their jobs.

The company employs two U.S. Green Building Council LEED-accredited professionals and has completed several LEED-certified projects. One such project is the downtown location of Wells Fargo Santa Cruz Bank (formerly Santa Cruz County Bank), which earned LEED Silver certification.

Even with all this success, there are still challenges ahead. “Meeting capacity requirements started to become a challenge for us last year,” says Kristin, “and we expect we will continue to confront this issue in the future.” Another concern is dealing with rising construction costs. Increases are occurring in all aspects of the business, nearly doubling in the past few years. Kristin’s engineering background seems to come in handy when analyzing these challenges. “We have to look at all the pieces to being a successful company and figure out how to be better than our competitors by using more effective tools and approaches.”

Progressive leadership practices and technologies—paired with a legacy of integrity, hard work and fairness—are all key ingredients in the Anderson family’s formula for business success.