For Joe Dougherty, the biggest risk to a growing business isn't competition or capital; it's misalignment. As the fourth-generation leader of LPX Group, a Louisville, Kentucky-based holding company for a family of brands specializing in heavy civil construction, he's seen how quickly silos emerge when leaders lose sight of a shared goal.
"We had multiple silos, and various leaders weren't working together," he says.
As LPX Group began developing its five-year strategic plan in 2020, Dougherty and his leadership team rallied around a simple, unifying idea: "One Team. One Vision." A critical step in bringing that mantra to life was investing in select leaders by enrolling them in Vistage Leadership Development Programs.
"When you enroll your people into these programs, they learn the language of business and are exposed to best practices and soft skills," he says. "It creates a different mindset within those individuals."
That new mindset, he explains, became the foundation for breaking down silos, strengthening collaboration across the organization, and driving growth.
Learning How to Lead
Giving employees across roles a stronger understanding of the business removes blinders and sharpens decision-making, Dougherty says.
"You start looking at things with two different lenses," says Chris Bauer, operations manager of Pace Contracting, an LPX Group company. Bauer was first a member of the Emerging Leader Program and has since moved up to the Advancing Leader Program as his responsibilities with the company expand.
"After a session, I walk away with two or three different things I can implement that day, and it helps with mentoring others," says Bauer.
The ripple effect of learning and applying has helped embed leadership development into the fabric of LPX Group.
Brian Bierman, vice president of asphalt at LPX Group, says that through his participation in the Advancing Leader Program, he brought tools such as assessments from The Predictive Index back to his team.
"It changed how I understood the people I manage," he says. "I learned how each person needs to be led."
Today, 16 employees are enrolled in Vistage Leadership Development Programs: Emerging Leader, Advancing Leader, and Key Executive groups. Dougherty says the goal is to engage as many future leaders as possible.
Building Leadership Continuity
With 650 employees, Dougherty also thinks about leadership development in terms of building depth and ensuring a pipeline of people who are ready to step into larger roles.
"That is so critical to leadership succession," says Dougherty, a 2023 Vistage Member Excellence Award winner. "When someone is ready to step into their boss's position, it is a huge peace of mind."
It's a priority, he believes, that more CEOs should embrace. Without depth, organizations become overly dependent on a few individuals and are vulnerable if one leaves. Last year, Dougherty moved three senior leaders into new roles. Rather than scrambling to backfill positions, the organization already had people who could step up.
The return on investment shows up in retention. Dougherty estimates the company has close to zero voluntary turnover among senior leaders and sees similar "stickiness" among employees enrolled in Vistage programs. When people feel chosen, stretched, and supported, they tend to stay.
"I have spent many years putting nonleaders in leadership positions without much success," he says. "It took me a minute to figure out what a leader is, and we have defined five characteristics we look for. If we see three or four of those characteristics in a young person, they become a candidate for Vistage Leadership Development Programs."
Leadership Development as a Growth Multiplier
Since Dougherty joined Vistage in 2013, LPX Group's revenue has grown from $66 million to more than $320 million. In part, he credits ongoing investment in both Vistage and its various Leadership Development Programs — even during challenging economic or business conditions — as a contributor to the company's growth.
"Leadership development creates a dynamic organization with more engaged people, better alignment, and strong teams," he says.
For CEOs weighing whether it's worth sponsoring employees in Vistage, Dougherty's advice is clear:
"Do it yesterday," he says. "The payback is immediate."
