American Home Shield 2002 Annual Report Download - page 10

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6 ServiceMaster
Another deliverable last year was market development throughout all of
our businesses.
Our Terminix termite and pest control business opened a Commercial Division
and set up dedicated service centers in approximately 30 of its major markets.
Growth rates for commercial accounts could easily exceed our residential
growth rates in pest control.
Our American Home Shield home warranty business looked beyond its traditional
real estate channel for new sources of business and found willing listeners in
the mortgage industry. By year-end it had marketing agreements with several
leading mortgage companies. In addition, our efforts in selling direct to the
consumer showed outstanding results.
Our ServiceMaster Clean disaster restoration business responded to the changing
needs of the insurance industry. In 2002, it became the preferred provider for
fire and water damage restoration services with a number of the nation’s
largest firms. These agreements enhanced our relationship with our franchise
owners and added value by providing them with a direct source of revenue, and
will have a significant impact in 2003.
Our third deliverable for 2002 was to upgrade our approach in areas that would
benefit from leveraging our scale. We buy huge amounts of fuel, telecom service,
fertilizers, pesticides, plants, trees, shrubs, HVAC units, HVAC parts and
plumbing supplies – and we generated new savings in all of these categories in
2002 through a more strategic approach to sourcing.
We also began work on programs that will pay off in new savings in 2003.
These programs include vehicle acquisition and preventive maintenance, real
estate management, computer purchasing, relocation services, pre-employment
testing and printing contracts.
For a company that served 10.5 million homes and businesses last year, operating
out of more than 5,400 company-owned and franchised service centers across
the United States and deploying a service force of more than 70,000, the potential
for leveraging scale is enormous.
values-based company
When I joined ServiceMaster two years ago, the following words came to mind
on my first day:
“Be diligent to present yourself approved to God as a workman who does not
need to be ashamed, handling the word of truth.” Second Epistle of Paul to
Timothy 2:15.
I believe that it speaks to the honor of diligence, work and speaking the truth.
ServiceMaster was founded as a values-based company, and we will continue to
be a values-based company.
A succession of leaders embraced the corporate objectives and attracted employees
who wanted to work for an organization that strived to honor God in all we do,
to help people develop, to pursue excellence and to grow profitably.