Smart Business: The importance of peer groups to my success

Not long after, I attended a two-day industry seminar. It was long ago, the pre-internet era. The association that hosted the event sent a fax soliciting feedback. I excitedly filled it out, then put it back in the fax machine to return my answers. I suggested they include more networking events. Networking wasn’t a buzzword back then — I asked for more socializing opportunities. I wanted to meet people from our industry. Networking back then meant you had a big Rolodex. 

Much to my shock, an hour later the fax spit out a flyer from our association looking for interested participants in a CEO peer networking group that was being formed. I was amazed at their speed of addressing my suggestion. I thought, I want to be part of any organization that can move this fast.

Turns out, coincidentally, the planning had been going on for over a year. It was an auspicious beginning to a group — my industry-specific peer networking group. The group has had a huge influence on our success. One thing I learned is that it did not matter how big each company was. We all had the same problems.

Over my career, I have been a member of numerous peer groups. Some are general business-oriented, and some are very specific to CEOs. Some are very specific to a tightly defined industry, i.e. metal forming. All have helped me a lot. As an example, I was in final negotiations to take over a competitor’s stamping operation. I described the project to a new member of our peer group. His advice was to get the equipment in our shop ASAP. We had not signed a contract yet. He strongly urged, since we were close, to act like it was a done deal and move the equipment. It was subtle yet important advice. We followed it, the rest of the negotiations went very smoothly. Twenty five years and billions of pieces later, they are still our largest customer. We enjoy a true partnering relationship.

We have even formed peer groups within our own company. They foster better communication and help build camaraderie among our colleagues. Educational opportunities come from all types of peer groups, be it co-workers, suppliers, customers, even competitors.

We have all been surrounded by peer groups our whole lives. PTA, sports teams, Cub Scouts, are all versions of peer groups built to facilitate learning. Education is as important as anything we do in life. Facilitating it and improving it is as noble as any endeavor. Success almost has to follow.

I am so enamored with the idea that I am forming one: Pepe’s Deal Community. Criteria for membership: Be a friend of mine and be involved in the “deal community,” which mostly means buying/selling companies. Stay tuned.

Steve Peplin is CEO of Talan Products.