Go2Call.com founders John Nix and Larry Spear have enjoyed a very good 2005. The Evanston, Ill.-based provider of VoIP (voice over Internet protocol) solutions was recently recognized as one of North America's fastest growing technology firms, ranking 22nd on the Deloitte Technology Fast 500 North America list. Nix and Spear were recently honored by Winning Workplaces and FORTUNE Small Business as part of our Best Bosses recognition program. Just four years ago, these honors wouldn't have seemed possible.
Go2Call.com was founded in 1999, shortly before the dot-com bubble burst. As such it is a survivor. Like many high-tech firms of the time, the company was hemorrhaging money. To make matters worse, the venture capital market dried up in 2001 as investors grew wary of dot-coms in the wake of such spectacular flame outs as Webvan and pets.com.
Go2Call, however, had an advantage over their peers. According to Spear, the firm's strategy leader, they weren't looking to simply see the company through an initial public offering and ride off into the sunset as young millionaires. "We built this thing for the long haul," he says.
The founders' commitment to the long-term is evidenced by their workplace practices. For example, Go2Call offers all employees equity in the firm, and they share key financials with their employees at a bi-weekly meeting. By doing this they attract employees who wish to be a part of something and ensure employee buy-in regarding management's long-term strategy and vision.
This approach served the firm well during the dark days of 2001. With the company treading water, Nix and Spears came to the realization that they must cut costs and trimmed staff from 30 to 20 people.
A headcount reduction of one-third would start a mass exodus at most companies, but Go2Call was able to retain key talent. Part of this was because the employees were never surprised by the firm's fiscal challenges. Bi-weekly financial updates kept them abreast of the company's health through both good and bad times. More importantly, employees saw the company's promise, and as equity partners, realized that they had a stake in turning the organization around.
Working together the company managed to get through the lean years. The firm rallied to increase customer growth with everyone from engineers to the sales staff pitching in to source leads and deliver their service. Go2Call placed a heavier emphasis on recognition, celebrating each new customer account via e-mails and in their bi-weekly meetings.
The turnaround was not merely a question of improving the company's cash flow; it was about showing that the firm could be a viable concern going forward. "We needed to show the VCs positive growth before we could get new funding," explains Spear.
Go2Call secured funding from a venture capital firm in the latter part of 2001, allowing them to continue operations. Today, the firm has 200 customers in more than 100 countries.
Perhaps the biggest lesson of 2001 was that a company is only as good as the talent it employs. "We believe in hiring for the long-term," says Spear.
The firm is careful in who it brings on, drawing most of their people from internal referrals, while employing a rigorous screening process. After an initial screening by the hiring manager, job candidates are interviewed by at least four Go2Call people, a group often including either Nix or Spear. Technical candidates are usually asked to take a test in their area of expertise.
The firm pays the same level of consideration to retention. Unlike, other dot-coms, Go2Call recognizes that workers can only put in 60-hour weeks for so long before they burn out and leave.
"We have a flexible culture," says Controller Brian Pastroff. "We work hard, but we work reasonable hours."
"You're judged according to the quality of your work and not the amount of hours you put in at the office," adds Director of Global Marketing Zachary Eleveld.
In fact, Go2Call opened a satellite office near where many of their engineers live in order to reduce commute times. The office's location was determined by the engineers. Go2Call also conducts a considerable amount of cross-functional training, which further helps promote flexibility.
"You're never the only one in the company with a particular skill, so you don't have to fear taking time off," says Eleveld.
Nevertheless, with a large customer base spread all over the globe, their business can at times lead to long or irregular hours. The company, however, gives employees incentives to go beyond the call of duty, both through their equity plan and by giving employees a sense of ownership over their jobs.
"We hire good people, prepare them to do good work and give them the leeway to do their jobs," explains Nix, the firm's technology leader.
The company fosters teamwork through an open floor plan in their offices and a flat structure. "You can approach anyone and don't need to be afraid to ask questions," says Eleveld.
Go2Call has an employee-driven social committee that organizes companywide events such as an annual summer event, a holiday party and a "kids day" where employees can bring their children in to work.
According to Creative Manager Adrian Gershom, Go2Call has fostered an environment where employees work hard because they don't want to let each other down. It is an environment that is paying off as evidenced by the firm's growing customer base and recent honors. It's a long way from where the company was in 2001, a fact not lost on the company's founders. "People want to be on a winning team," says Spear.
Company: Go2Call.com
Web Site: www.go2call.com
Industry: Telecommunications
Location: Evanston, Ill.
Employees: 27
Sales: $15.2 million
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