Business Spotlight with Mike Dover from The Wagner Companies

In this Success Chronicles interview, Mike Dover, President and CEO of R&B Wagner, shared his journey from a Navy scholarship to leading a 100% employee-owned architectural metal manufacturing firm. He emphasized the benefits of employee ownership, such as financial stability and generational wealth creation. R&B Wagner, known for its stainless steel handrails in large municipal projects, focuses on long-term strategic growth, effective communication, and acquisitions. Dover highlighted the advantages of ESOPs over VC-backed firms, particularly in preserving legacy and fostering community impact.

Dover also discussed leadership challenges and the cultural shift to employee ownership, which began in 2015. He emphasized the importance of succession planning, long-term financial management, and maintaining company values through strategic decision-making. He reflected on personal growth, stressing the significance of treating employees as individuals and ensuring their alignment with company goals. Looking ahead, R&B Wagner plans to expand through acquisitions, integrating new products and industries while maintaining its employee-owned structure.

Podcast Transcript:

Mike McKay: Alright, everybody, welcome to the Success Chronicles. I’m Coach Mike. Joining me today is Mike Dover, the president and CEO of R&B Wagner since 2017. The R&B Wagner Company is a 100% employee-owned design and manufacturing firm specializing in architectural metal. Mike has an MBA from Marquette University and a diverse background. He’s been a chemist, quality manager for rubber components, and involved in friction products and architectural products. Mike, thanks for joining us.

Mike Dover: Thanks for having me. I appreciate it.

Mike M: Tell us about your personal story—where were you born? Where do you live?

Mike D: Sure. I was born in Georgia and grew up on a working farm. That experience taught me the value of work and a mechanical aptitude. After high school, I earned a Navy scholarship for college in the early ’80s. I initially pursued a career in the Navy, but when my eyesight worsened, I realized being a pilot wasn’t an option. I was a biology major with a chemistry minor and started my career as a chemist in a Unilever soap factory. I later met my wife, who was from Oshkosh, Wisconsin, and she eventually convinced me to move there. I began working as a Quality Assurance Manager at a small rubber manufacturing company in Milwaukee, where I spent 16 years moving up the ranks. Thanks to a business mentor and the Marquette MBA, I gained leadership experience. Afterward, I took on a leadership role at another local manufacturer before joining R&B Wagner, attracted by the employee-owned structure.

Mike M: How long has it been employee-owned?

Mike D: Since 2015. When I joined in 2017, it was just starting to transition into employee ownership culturally. Understanding the ESOP (Employee Stock Ownership Plan) culture has been a learning curve, but it’s been rewarding.

Mike M: What’s the difference in leadership style between an ESOP and a traditional family-owned company?

Mike D: In an ESOP, leadership focuses on benefiting all employee-owners rather than just the family. It’s about long-term planning and ensuring the company’s success for everyone’s future. This contrasts with the short-term focus often seen in family-owned businesses.

Mike M: Looking back at your career, is there anything you would do differently?

Mike D: Early on, I focused on speed and efficiency, often neglecting the human aspect of decisions. I was driven by numbers and logic, but as I matured, I realized the importance of slowing down and treating people as individuals. Now, I prioritize better communication, understanding their struggles, and offering support. It’s about finding balance—being people-focused doesn’t eliminate tough conversations. It’s about ensuring everyone has a chance to succeed.

Mike M: Businesses and people either grow together or apart. Slowing down can sometimes lead to faster results.

Mike D: Exactly. As leaders, we have a responsibility to help people find their fit, even if it’s not with us. At Wagner, we’ve emphasized employee development and career planning. We even brought in a Learning and Development Manager to ensure we’re supporting our employees’ growth. Not everyone wants a fast-paced career, and that’s okay. But we need to be prepared to guide those who do.

Mike M: Culture management is crucial. What are some recent insights or advice you’ve found valuable?

Mike D: A book called Leadership and Self-Deception by the Arbinger Institute had a profound impact on me. It made me realize how often I viewed people as obstacles rather than human beings. This shift in perspective has changed how I interact with my team. Another important read was The Goal by Goldratt, which reshaped my understanding of financial accounting in manufacturing. We’re now focusing on acquisitions as our next big move, aiming to integrate new companies into our employee-owned structure.

Mike M: Acquisitions as an ESOP—interesting approach. How does that work in practice?

Mike D: ESOPs offer a unique value proposition for sellers looking for legacy preservation. Unlike VC firms, we emphasize long-term success and employee ownership. We’re all about finding companies that align with our values, integrating them, and ensuring their employees become shareholders. It’s about building a legacy, not just maximizing short-term profits.

Mike M: That’s a significant advantage over traditional VC approaches. Any final thoughts?

Mike D: ESOPs want profitability, but with a focus on people and long-term sustainability. We’re about making good decisions and sticking around to see their impact, unlike VCs who often exit quickly. It’s a different mindset, but one that pays off in the long run.

Mike M: Thanks, Mike Dover, for sharing your insights today.

Mike D: Thank you, Mike. It’s been a pleasure.