Keeping the lights on is critical for any business. SMS Assist understands the concept. The facilities maintenance firm is dedicated to squeezing out efficiencies and costs for a wide range of industries, including retail, financial services, food services, property management and healthcare.
The Chicago-based company, with 750 employees, services more than 200,000 properties across the US, handling everything from landscaping and reactive maintenance to floor care and preventative maintenance. Through a combination of state-of-the-art technology and human know-how — including in-house subject matter experts that span 55 trades — SMS Assist delivers high quality maintenance experience, including 24/7 support.
SMS Assist is among a select group of businesses that have established themselves as unicorns — defined as privately owned, VC-backed companies valued at $1 billion or more. In June 2016, SMS Assist raised $150 million with a $1 billion valuation. In January 2023, the company was acquired by Lessen.
Alan Jones, National TMT Deals Leader and San Francisco Office Managing Partner at PwC, recently sat down with Marc Shiffman, former President & CEO, as part of our series with industry-leading unicorns. They discussed how SMS Assist has emerged as one of the industry leaders and how it maintains a strong focus on customer excellence and business success.
Marc Shiffman, former President & CEO, SMS Assist
PwC: What is your model for business success and financial results?
Shiffman: We have been profitable since Day 1. We focus on the customer and giving them exactly what they want. We believe that by creating value we help elevate our business. People are always willing to pay for value. Since the company was founded about 20 years ago, we have worked hard to instill this philosophy in our workforce. The concept revolves around the idea that if we take a customer-centric view, we adapt our services and structure to fit the marketplace — and profitability follows.
PwC: What impact did the pandemic have on SMS Assist and how did you navigate it?
Shiffman: Prior to the pandemic, we had to deal with a couple of other very difficult events: a polar vortex event that hit -17 degrees Fahrenheit for four days and social unrest in Chicago. During those events, we had to shift to remote work. So, when the pandemic hit, we were equipped to deal with it. We sent everyone home. They already had laptops, voice over IP phones and headsets. The transition wasn’t painful. In fact, we were up and running within 24 hours. The planning that went into this is rooted in my background. I was in New York City during the 9/11 terrorist attacks. That event taught me that it’s critical to think ahead and prepare so that you don’t miss a beat when an event like a storm, unrest or pandemic takes place.
PwC: SMS Assist has won awards as a great place to work. What is the basis of a highly successful business culture?
Shiffman: I have to admit, I’m a bit old school. If it were up to me, everyone would be in the office five days a week. But I recognize that isn’t realistic or smart. A hybrid workforce is the new reality, and you can’t fight the current. So, the thinking then shifts to how can we build an effective hybrid framework?
One critical element is communication. During the pandemic, customer visits, industry events and meetings seem to have completely disappeared. I focused on humanizing interactions through daily notes to the workforce, along with a periodic newsletter. I talk about my work, my family and my own struggles. I work to build a sense of unity and purpose. At the same time, we have an incredible office space with breakout areas, conference rooms, lounges and collaborative work areas. You have to provide the appropriate spaces and tools that allow people to do their work in the best possible way.How Allbirds is sprinting towards sustainability goals
PwC: What does it mean to be a good corporate citizen and how does that translate into a business culture?
Shiffman: First of all, integrity is a core value, and SMS Assist has zero tolerance for anything but the highest ethical standards. Phenomenal companies don’t compromise their values. It starts with who you hire, how you train people and what you expect from them. In addition, the executive team must walk the walk. Integrity is never negotiable.
PwC: What does it take to help drive excellence throughout the organization?
Shiffman: We don’t want to achieve our objectives; we want to exceed them. In order to make this possible we do a deep dive into our annual forecasting and budgeting. It’s line item by line item. It includes revenue by customers and every department and employee. We want to understand how we’re spending and what investments we’re making. This provides an illuminated path for our goals and metrics. It also translates into a process-oriented perspective.
PwC: How do you deal with all the volatility and turbulence in today’s world, including inflation, high energy prices, geopolitical instability and other factors?
Shiffman: During the pandemic we had to tighten our belts and approach spending more deliberately. As we exited the pandemic, we took our investments in our business up a notch. We started spending about 30% more on technology and building out more robust tools for our sales and operations teams. These strategic investments have paid off handsomely. Despite the turmoil in supply chains and the business world overall, we have been able to attract new customers and penetrate new vertical markets through new service offerings. For us, the key has been to adopt a more agile planning process. It’s no longer possible to plan three to five years out. You have to plan three to six months out. You also have to think long and hard about how to strategically spend your money through the filter of keeping the customer the top priority.
PwC: How can a fast-growing company balance spending and profitability? How can it avoid excessive cash burn?
Shiffman: The reality is that whether you’re an emerging leader or a long-established company, you have to have the right targets, metrics and goals in place.
“You have to be able to measure the milestones, and you have to hold yourself accountable. It’s important to ask some tough questions, like: What did we really achieve? What is still possible? If you have to change course, that’s okay.”Marc ShiffmanFormer President & CEO, SMS Assist
There’s nothing wrong with admitting you may have gone in the wrong direction. The thing is, if you keep continuing down the path that isn’t working, you can burn cash and encounter bigger problems. Pulling back on the reins or changing course is actually part of what leads to success. It doesn’t mean that the underlying strategy isn’t sound, and you won’t get to your destination. It just means you need to be more thoughtful and patient about the process.
PwC: How do you see SMS Assist evolving over the next few years?
Shiffman: In 2022, our revenue will be about $800 million. We expect to hit more than $1 billion in revenues for 2023. It’s been an interesting and exciting journey. We already have an exceptional platform, and we will continue to invest in it.
https://www.pwc.com/us/en/tech-effect/innovation/sms-assist-core-values-interview.html