It’s almost 3 o’clock and I am on my way to 44112 Mercure Circle. A friend of mine is driving to the headquarters and so I use the time to take a look at my notes one last time.
JK Moving Services
If you have ever had the opportunity to personally meet one of the best and brightest persons in your field, someone whose career path you admire so very much, then you know exactly how I feel now. Excitement, joy and impatience have taken control over me, but I do my best and I stay calm.
Tesla navigation shows we have arrived at our destination.
It’s a huge white building. I find my way to the main entrance where a beautiful, well-mannered lady asks me about the purpose of my visit and then I am asked to show my ID. It feels as if I were visiting the CIA office (which is not far away). I get one of those “visitor” badges and it looks like Mr. Kuhn has some other urgent business and I will have to wait.
A few moments later, Tina Buckley, Executive Assistant at JK Moving Services, with who I have exchanged a few e-mails to arrange today’s interview, has just come to meet me and offers a tour. It is really hard for me to hold that rising urge to do a triple Axel, hearing about the possibility of touring the JK Moving Services headquarters. Instead, I use the much more trivial response: “I would love to.”
We start with the “hall of fame” where I can hardly count all of the awards Mr. Kuhn and his company have accumulated over the years. JK Moving Services has earned recognition in every possible area a business can excel – from fleet safety and innovation, through corporate culture and employee development, to doing environmentally friendly business and giving back to the community.
I see a photo of Hillary Cinton on the wall signed by herself. And, there is a photo of George W. Bush. Next, I see a photo of a JK Moving truck in front of the White House taken in the 20th century. After that, we go through the briefing room and around the dispatch center straight to the warehouse. Now I am shocked, and I don’t mean by just the size of it. I am a person who rarely gets impressed, but there is a real house built inside this warehouse. They train their new employees in-house, creating the most realistic environment a mover may have to deal with. It is amazing.
A few moments later we are back in the foyer to wait for Mr. Kuhn to come.
At around half past three, we are in the conference room where we will commence the interview.
Manuela: Mr. Kuhn, you received the “Independent Mover of The Year” award by the American Moving and Storage Association in February. What does it mean to you?
Charles Kuhn: The award from the American Moving and Storage Association means a lot to us, because it is an award being provided by the industry association, where we were voted on and selected by our industry peers. These are people who know the industry. They know the business. They know our reputation. These are people who are choosing to give JK Moving an award. The appreciation by industry peers says a lot.
Manuela: Touring your headquarters, I saw you have won a lot of awards for fleet safety, innovation, business culture, employee development. Congratulations.
Charles Kuhn: Thank you. The cultural awards are important to me and the quality awards are important to me. Those awards mean a lot more to me than being the biggest. I believe that the awards focused around how we take care of our community and our people, and how we raise the bar on quality, are the awards that are most meaningful to me.
Manuela: I saw that you have been honored by several charities as well.
Charles Kuhn: We do focus on a lot of philanthropic activities in the community. We are trying to give back wherever it is possible. I have sat on the board of Fight for Children, which is a D.C. based charity that is primarily focused on early stage development of children. It is focused on assisting underprivileged children with their education here in D.C. and in other cities as well.
We are involved with Habitat for Humanity, Race for Hope and March of Dimes. So we try and do our part to give back to the community and help the charities that support causes that are close to our hearts.
Manuela: You started the company when you were a teenager. To what do you owe your success? How did it happen?
Charles Kuhn: It all started when I was an early teenager. My parents were transferred to Iran and we had a disastrous relocation to Iran. My parents were very upset, as furniture was severely damaged. Then the shah was overthrown while we were in Iran and we got shipped back to Rockville. When we got shipped back, items were stolen, Persian carpets and antiques were missing from our shipment. My parents were once again very upset with their experience. That was the exposure I had to the moving industry and I wasn’t really impressed with the industry from my limited exposure.
When I came back from Iran, my uncle had started a small moving company, a 3-truck moving company in Rockville, Maryland. And so when I came back, I would be working with him on weekends and during the summer. That is where I learned the moving and storage trade. As soon as I turned 16, I used money that I had earned working for him and purchased my first truck. That is how I started JK Moving Services. I was 16, nearly 16.
Manuela: That is really impressive! You are still working in the same industry.
Charles Kuhn: 35 years later.
Manuela: What were some of the greatest challenges you have ever faced during your career and growing your business?
Charles Kuhn: The single greatest challenge is really a challenge that we have had for 35 years. That is finding and retaining top talent, and keeping everyone moving in the same direction, with the same goals and the same quality focus in mind. When I started the company, finding good people to work with was a challenge and 35 years later finding and retaining top talent is still challenge number one.
Manuela: How do you tackle it?
Charles Kuhn: Well, we have nine people in our human resources group. Five persons of our team are focused on identifying and recruiting new talents and four persons of our team are focused on keeping the employees that we have happy. They make sure that our benefit programs and compensation are competitive. They work to ensure that the existing employees are happy and with minimized turnover.
Manuela: And, what are some of the benefits JK Moving employees particularly enjoy?
Charles Kuhn: There are several benefits that our employees value, just to name a few:
- A choice of two health care coverage plans;
- Company-funded contributions to profit sharing and 401(k) safe harbor plans;
Extensive, paid training and tuition assistance; - Referral bonuses;
- A variety of wellness programs, from on-site farmers’ markets to after-work fitness classes to smoking cessation programs;
Manuela: How has the industry changed comparing it back then and now?
Charles Kuhn: I think that the reputation of our industry has improved and the quality within our industry has improved. Nowadays, there are better career opportunities for people in our industry. I think the way that our drivers are looked at, treated and compensated has improved. And finally there is a much better use of technology in our industry.
Manuela: How do you use technology in your company? What do you think about the virtual estimating technology?
Charles Kuhn: I think it is fantastic. We are using virtual estimating tools now. Our drivers are using iPad to do inventories and to take photographs of furniture they move. Most of the communication between our drivers and dispatchers is electronic today.
Technology is being used within our sales team as well. Whereas before the sales team used to come and pick up paperwork every day, go to do it, and then come back with it, now all of that is being done through an iPad, through technology.
I think that if you don’t embrace change and you don’t embrace technology, you are going to be left behind in any industry, including the moving industry.
Manuela: What are some other examples of using technology in your company?
Charles Kuhn: Virtual survey is something we are using and I think that it will be used much more in the future. Our residential sales teams use IGC survey software. Also, we do a lot of electronic billing and we use electronic payment systems. And how we are using social media for marketing will improve and increase. We will enhance the way we are doing e-commerce, whether it be scheduling an estimate, booking a job or ordering packing materials and additional services.
Manuela: What about the ELDs? Have you worked out your way around the e-logbooks?
Charles Kuhn: We went to electronic logbooks years ago. I know there is a mandate requiring ELDs now. We embraced that technology 5 years ago. It made our drivers more efficient, more effective in their work. Using e-logbooks is safer for them. It has become easier when we come to audits and reviews. So we are compliant ready.
Manuela: How did the transition to ELDs go?
Charles Kuhn: It is a change, right? And change is difficult for people. It took a lot of training. Some adapted to the change quicker than others. However, ultimately the entire fleet made the change and they are operating on electronic logbooks today. And most of them, if you could give them the opportunity to go back, they wouldn’t go back.
It is in the best interest of the company, the driver, the other motorists on the road and the Department of Transportation. I don’t see any reason to fight it. And we have supported that, we embrace it.
Manuela: Do you think our industry needs to be more regulated?
Charles Kuhn: I don’t think the government needs to regulate anything more than they already do. I think there are plenty of regulations that exist and probably a lot of regulations that need to be cleaned up or streamlined, and done away with. For example, the H2B and J1 Visa programs which assist with a seasonal workforce and the Hours of Service rules need some adjustment.
I think additional enforcement is needed with respect to rogue movers. Movers that are out there without a license, without insurance, without qualified drivers and workers. I think they could spend a little more time enforcing the regulations they already have, but the last thing I think they need to do is add more regulations.
What all the additional regulations are doing, is making it more difficult for the legitimate and honest movers to function. The rogue movers are not going to pay attention to any of the regulations anyway. They are unlicensed and their employees are undocumented in a lot of cases. And, they are not going to play by the rules regardless. So continuing to add burden to the group that is functioning legitimately is not going to solve the problem. Better enforcement of the movers who are not following the rules would be a better use of time.
Manuela: How do you manage your reputation and deal with online reviews?
Charles Kuhn: Online reviews are both a blessing and a curse. It is really nice when we will do a move for someone and they go online and tell the world about it. And it is great to see those reviews, as we are proud of them. The part that is challenging is that sometimes there will be false reviews logged. It might be a competitor. It might be anyone out there that is going online and logging a false review. Thus, at times we have to get involved and prove to the different organizations that the comments logged online are not honest, or not accurate and most groups will take them down.
It has definitely added another element to manage – managing the positive reviews, managing the false reviews, and managing the negative reviews. If we do a move for a customer and there is a problem, and we don’t respond to their problem, and they go online and list their complaint, I understand that. Shame on us if we did not respond appropriately.
Sometimes, the reviews are false. That is certainly concerning. Sometimes it’s a customer we didn’t even move. And sometimes a customer is using it for leverage inappropriately. And that is concerning. But in the end of the day, it is more change, it is more technology and we have to build systems to manage it. We have to find a way to embrace it, because it is the future.
Manuela: Have you designated a person in your company to manage all kinds of feedback that you receive online?
Charles Kuhn: We have an internal marketing department focused on all different fashions and forms of marketing. And then we have a couple of people that are dedicated to social media marketing who work to respond to positive or negative online comments. If we get a positive feedback, we certainly appreciate it, if it is a negative feedback, we look into it and try to correct the issue, but if it is a false complaint, we go back and report the false complaint and do our best to rectify the situation.
Not all that differently we did it in the past if we had an upset customer. Now it is just done online and there is more visibility to what is taking place. Fifteen years ago it was happening, but it was happening through the Better Business Bureau. Today the same thing is happening, it is just happening online. It happens real time and you need to respond real time.
Manuela: Over the years, what is the biggest criticism you have ever faced?
Charles Kuhn: The greatest criticism the company or I have personally received?
Manuela: Both.
Charles Kuhn: If we are getting a criticism, it is typically a customer that we were relocating. And as you can imagine, customers are very stressed during a move. Moving is a stressful time. Typically, they are moving as a result of either a job change or a death in the family, or a divorce, so it amplifies the stress. And we have gone out with the best intentions and had a move go less than perfect, then we have had customers who have been very upset. And I think what happens is the customers during a move are so stressed, where they have a right to be upset, sometimes they are overly upset because of the added stress involved with a move.
We listen to the customers and we do our best to get out there, clean up the situation and make the situation right. As hard as we try, as much as we train, every move is not going to be a perfect one, but we control our response to it and as long as we respond timely and appropriately, hopefully customers understand it and we turn the situation around.
Manuela: Can you give a real example of turning a negative experience into a positive one?
Charles Kuhn: Sure. We did a move before for a customer and a crew member carrying a piece of furniture slipped and the furniture got damaged. Well, we have professional furniture repair people and we will get them out onsite in such case. Then when the customer felt that the piece would never be repaired, it would never be the same, we would get the qualified repair person to fix the item and to return it to the condition it was prior to the damage. It is rewarding to see the customer turned around, satisfied and referring you.
And when you move the volume of homes that we move, when you move the volume of furniture that we move, you are going to have some problems from time to time.
Manuela: What is the toughest criticism you have personally received?
Charles Kuhn: Here we have 7 core values that we try and fulfill every day in every situation we are faced with. Any time I am receiving criticism that we are not living up to one of our core values, it’s very near and dear, because that is our goal for the company, that is our goal for every move, that is our goal for every interaction. So, any time we fall short of one of our core values, it hurts.
Manuela: How do you keep your customers satisfied?
Charles Kuhn: Without the customer, there is no need for us. So all of our training, whether it be with our crews, with our dispatch, or with our customer service, all of our training is focused around customer satisfaction, customer care and customer response. Our fundamental goal is taking the stress out of the relocation for the customer.
Manuela: How do you achieve that goal – taking the stress out of the relocation for the customer?
Charles Kuhn: Training. We invest a tremendous amount of time and money in training. We have a house built inside our warehouse, where we train our personnel, so our crews are trained in our training house and not in our customers’ house. Well we have customer service training. We train our crews to respect the homeowner, to properly respect the home, and understand the culture of our different customer mixes.
The other thing we do with customer service, is we try and spend a lot of time educating and informing our customers of their rights and responsibilities with respect to the move. JK as a moving company has a lot of responsibility for the success of the move. However, the customer also plays a critical role for the success of the move. And we try and do our best to make sure the customer knows upfront where the duties and responsibilities lie between JK Moving Service as a moving company and the customer. And I think that goes a long way for the customer care.
Manuela: What is the most challenging job you have ever done?
Charles Kuhn: We have done a lot of very challenging moves. We have moved President Clinton. We have moved President Bush. Being headquartered in the Washington D.C. area, we move a lot of foreign dignitaries. We move a lot of generals and admirals, and very often we do a lot of high profile, high value moves.
Probably some of the most challenging are when we are moving a general and we are not interacting with the general. When you get the aids and the assistance involved and they are trying to speak on behalf of the general or the general’s spouse, it can be very difficult. When you get 3 or 4, or 5 different people involved in an international relocation, it gets very challenging, because you are trying to serve 4 or 5 different customers in one and sometimes all of their desires and agendas don’t line up. So that makes some of these moves very complicated.
Manuela: What about moving President Clinton and President Bush?
Charles Kuhn: Good. Moving the presidents was very rewarding. We were selected to move a republican president and a democratic president, leaders of the free world. It was very exciting. The difficult part of those moves was the vetting process that we had to go through prior to the move. The company was vetted by the Secret Service, the movers, drivers, helpers, packers were vetted by the Secret Service. The physical move was not challenging and it was really no different than any other corporate move.
And both, the Bush and the Clinton families were absolutely wonderful to work with. They were present for the move, they were helpful during the move. They were very kind and professional interacting with the crews. The physical move was really not much different than any other corporate or government move we have done. It was the vetting process leading up to the move and interacting with all the security that made it more challenging.
Manuela: How long did the whole process take?
Charles Kuhn: It probably took two weeks to be vetted through the Secret Service. The company, the vehicles and the crews. It took a couple of days of packing, a couple of days of loading, a day or 2 for delivery and unpacking. So that was pretty traditional, it was just the vetting process that added to the time and the complexity.
Manuela: And I guess there were a lot of requirements during the vetting process?
Charles Kuhn: There were. They were looking up at the background of the company and the background of each employee. They made criminal background checks on all of the employees. Our organization as a whole was vetted for pending lawsuits and consumer actions. They interviewed each employee. And then we could not make any change. So whoever we said was going to be there on moving day, had to be in the crew and if someone was unable to make it, we couldn’t send someone to fill in on the moving day. The Secret Service escorted JK Moving trucks from our facility, to The White House, and to the final destination(s).
Manuela: How do you see the industry changing and how will you respond?
Charles Kuhn: We are investing a lot in training. We are investing a lot in technology, trying to streamline the process, automate it and communicate more efficiently and effectively, internally and externally. So, we are going to continue to embrace technology and we are going to continue to train our people.
Manuela: What is the best business advice you have ever received?
Charles Kuhn: The two biggest pieces of advice that probably stuck with me from the very beginning are: one – the importance of managing cash flow, nothing works without cash flow, and then the other piece of advice really I have learned through my parents and how I was raised is: treat everyone the way that you want to be treated. And then that for us that has gone for a customer, for an employee, it has gone for a supplier, or a partner. It’s pretty simple: Treat people the way you want to be treated.
Manuela: What is your message to those who are about to move?
Charles Kuhn: My message to customers who are about to move: Do your research. Really look at the company that you are about to entrust all of your worldly possessions, the company you are about to allow to work in your home. Do your research to make sure they are a financially viable, honest, a customer focused company that is going to be there for you when you need it.
Today as you know there is a great number of companies that are going out of business. Large companies filing bankruptcy and going out of business. Office Movers are out of business. Graebel Van Lines is going bankrupt. So make sure that you are choosing a mover that is going to be the best value, which may not necessarily be the lowest price. However, you want them to be there on moving day and you want to make sure that your furniture is well taken care of.
I think customers need to be careful, that they need to go out and visit the moving company they are using. Consumers should look at the Dun and Bradstreet to make sure company is financially viable. Customers should look at the equipment that is going to be used on moving day and the people they are going to be interacting with. Understand the service provider you are choosing and take the time to understand your rights and responsibilities with the move.
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