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 Part 1 of a two-part story about how the success of Tom's of Maine compelled the company's founder, Tom Chappelle, to go deeper in his spiritual journey.
Tom's of Maine , founded in 1971 by Tom and Kate Chappell, manufactures personal care products. In 1968, while Tom Chappell was enjoying a successful career in insurance in the greater Philadelphia area, he and Kate felt that something was missing. They longed for a rural setting in which to raise their children, and they wanted work that contributed to their passion for natural products and the environment. In the spring of 1970, they uprooted their family and drove to Maine, with only a $5,000 loan and a dream, to found their company.
From 1971 to 1981, Tom and Kate built a successful company. Early on, they articulated their values, based on their spiritual principles, and used them as a compass in hiring and product development. By adhering to their values, Tom and Kate overcame initial challenges of product development, a shoestring budget, and finding appropriate employees for their unusual business. By 1981, they boasted a well-developed workforce, a successful product (Tom's of Maine toothpaste) and a loyal customer base. Morale was high, they were giving back to the community, and they were financially successful.
The business had grown from a dream in Tom's and Kate's hearts to a $1.5 million company in just 10 years. Tom's of Maine was a perfect example of how running a business in accordance with one's values yields business success.
Furthermore, in 1981, they were poised to take the company even further. They realized they could expand beyond the health food stores, where they had been selling their toothpaste, to supermarkets and drugstore chains. They hired marketing and finance experts to help them, and in the early '80s made the transition from a small entrepreneurial business to a midsized business aggressively competing with large corporations for market share.
But by 1986, Tom had hit a wall. Though the company had made headway in its efforts at expansion, had begun to capture market share, and was thriving financially, Tom was unhappy. Outwardly successful, inwardly he felt miserable. Conflicts kept arising with the marketing and finance experts. They argued that non-natural, better-tasting ingredients would help the toothpaste sell better in the chains. They argued for less costly, non-recyclable packaging. They maintained that Tom and Kate treated their customers too well, and that they should cut more corners. They told Tom that he needed to let go of some of his principles if he wanted to succeed in this new phase of expansion.
The old way wasn't working anymore. Tom wondered if indeed he did need to give up on his principles if he wanted business success. Perhaps the principles served a small entrepreneurial company well, but blocked growth to the next level. Perhaps he needed to get out of business altogether. Was there somewhere else he could go where he could live by his principles? He felt drawn to divinity school. Perhaps he was called to the ministry. Well-articulated values and business success no longer seemed to go together.
For Tom, this wall served as an invitation to go deeper. When the old ways no longer worked, he easily could have given up on his spiritual path, concluding that that path was too idealistic for a growing business. Or he could have kept trying the old ways of doing things in the business, resulting in more conflict and frustration with the marketing and finance experts. Or he could have given up on expansion, concluding that the business needed to stay small if it was to live by its principles.
Fortunately Tom did none of these.
(To be continued in Part 2.)
Margaret Benefiel, Ph.D., author of "Soul at Work: Spiritual Leadership in Organizations," works with leaders in business, healthcare, government and non-profits to help them develop spiritual leadership. Visit her website at www.ExecutiveSoul.com .
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