It may seem difficult to fathom, but there was a time, not all that long ago, that Marco was a mid-sized, Midwestern office technology dealership struggling from a profitability standpoint. In fact, the company had become stagnant as growth had become a major challenge.
When Jeff Gau was named president in 2004 of the then employee-owned firm, he set out to establish Marco as a growth company. And not just a couple/three percentage points—Gau (and the Marco workforce) needed to hit double-digit on the annual growth chart. After all, who wants to commit to an ESOP at an underperforming company? The stock needed to be “going north,” and the only path was via profitable, consistent growth.
Longtime Marco team members may recall the day Gau held up a target that with “$100 million” adorning the bullseye. Gau admits it was a bit of an odd gesture since, at the time, the company was hovering at a significantly smaller level. But the executive had laid down the gauntlet, and it was up to the team as a whole to deliver.
“It kind of established the direction we were going to go,” Gau said. “It took us 39 years to get that first $100 million, but only three years to get the next $100 million. Then it took one year to reach the next $100 million.”
Now, as Gau finishes the final month of his storied 37-year odyssey, Marco sits at $408 million, based upon last year’s Elite Dealer submission. The company didn’t have designs on just becoming the nation’s biggest copier dealer. Gau wanted Marco to become heavily diversified. Mission accomplished: nearly half of the firm’s revenues are derived from its IT services division.
“When you look out the windshield, copier and print has a lifespan to it, and IT services is an extension of that,” Gau remarked. “The combination of organically building out the IT company through acquisition, growing the copier company with some organic element in there—I think we did see it as a hopeful outcome. Execution is king, and I’m happy to say we were able to do it really well.”
Clutch Performance
As he looks back at the past 37 years, one of the greatest sources of satisfaction for Gau is knowing that his team performed at its best when conditions were at their worst—a hallmark for any overachieving entity. The Great Recession at the end of the century’s first decade was when Marco was particularly impactful, as it acquired a number of companies while posting enviable financials. As Gau noted, Marco was equipped to prove the model.
In the teeth of the pandemic, Marco once again rose to the occasion and has navigated the challenges exceptionally well. Performing profitably when the economy is flourishing proves the adage that all eyes sparkle in the sunshine. Foul-weather execution, on the other hand, is not for everyone.
“Anyone can run a business or a professional sports team when things are going really well,” Gau said. “It’s much harder when times are tough.”
Thick black strokes in the financial ledger, however, is not Gau’s main legacy. What he truly treasures is the careers that have been fostered at Marco and the culture that has attracted more than 1,000 employees. He’s watched team members get recruited straight from college, joined the ranks from other companies and industries, and moved into roles of greater significance along their own journey. He smiles at the thought of the families they have grown, homes they have built, careers nurtured. Marco has made a positive and significant impact on their lives, something that cannot be found on a balance sheet. They, in turn and appreciation, have made Marco the toast of the industry, far beyond the walls of the St. Cloud, Minnesota, home offices. That’s the emotional aspect for Gau, which he will carry with him always.
Gau has faith that under Doug Albregts’ leadership, the firm will continue to flourish and leverage the roadmap that has yielded exceptional results. He will miss the Xs and Os of the day-to-day operations, acquiring businesses and expanding Marco’s footprint. But for him, it is the people he will miss most.
“Leadership is all about people and money,” he said. “But the people part should be the most fun. If you get that right, you’ll get the money part.”
Game On
At 63, Gau is still a young man, and he’s looking forward to the next chapter in his life. He’s looking forward to having the opportunity to do things that, as a chief executive of a multimillion-dollar company always on the go and staring down deadlines, time wouldn’t allow. Even the simplest tasks, like mowing the yard or tending to a garden, will now get more of his personal attention.
Gau was once a pretty good golfer, and he’s determined to improve his game. He’ll spend ample time at his Minnesota lake home with family and friends, and plans to do more fishing and hunting. And while Gau has traveled extensively throughout the country, he’s never driven across country, at a leisurely pace. Time has been taken out of the equation, which also means he’ll be able to dedicate himself to increased community involvement and charitable interests Gau shares with his wife.
Suffice to say, Gau’s bucket list is still fairly lengthy. “My dad is 90 years old. So if I’m in the third period of life, I’d like to make it a good one,” he added.
More often than not, the third period is usually when the game is won.
