Photo: Franz Witte Landscape Contracting, Inc.
Franz Witte understood the value of working with a partner from the very start when he founded Franz Witte Landscape Contracting, Inc., based in Nampa, Idaho with a college friend in 1971.
After his friend moved on to another career, Witte and his wife Vicki were the sole owners of the company until 2007, when Seneca Hull became president and partner. They added two more partners in 2015, one in 2017 and then four members in 2024. Hull says they now have 10 ownership partners in Nampa and two at their McCall location.
“From the very beginning, I learned that having key people with a stake in the outcome makes a big difference,” Witte says. “It provides stability by creating a written agreement, a little bit like marriage. That agreement helps everyone take a hard look at how the business works. Most importantly, you agree not to abandon long-term goals when there are short-term problems. Sharing the risks, burdens and success is more fun when there are others in that process.”
How It Works
As the ownership group grows, Hull says they are moving to a committee set up with the partners, where they take on different areas and come back with a fleshed-out proposal for the whole group.
“There’s too many people and dynamics to try to make every decision with the whole group there,” Hull says. “Everyone has their own ideas of what will work – and there’s generally more than one way to get there. We have to have trust that we are all heading in the same direction, and someone else’s way may even be better!”
Hull says they are trying to formalize the process of which employees are offered a partnership. She says in the past, it’s really been about what that person can bring to the table, how aligned they are with where the company wants to go and the leadership and commitment they show in their everyday work.
“When someone shows something special in their work, it piques our interest, and we all try to find a way to interact with that person to get our own view of them,” Hull says. “It takes time for sure. Some are obvious and/or come right out and ask. But some people come into focus more slowly and you realize what a rock they are to you or to their staff and you figure out what their superpower is. Then you start talking about how they fit, what they bring and when would be a good time.”
Hull says there are some perks to being part of the ownership group, but most of the benefits stay the same as other employees. The main thing new partners get is a stake in the outcome.
“Hopefully, that means a share in the profits at the end of the year, but I think we all know that the success of the company is a long game,” Hull says. “We need to make the decisions that will grow our company and our people. We need consistent performance, stability and continuous improvement and that will lead to profits.”
Jill Bell, HR manager and one of the new partners, says she’s excited to be part of the decision-making process for the changes that benefit the company.
Benefits of Ownership Groups
Witte says that his vision has been to see the company grow to a size that would outlive him.
“Both the appetite to get bigger and desire for longevity required more effort than one or two people can give and I believe more than you get from just a paycheck,” Witte says. “Ownership adds emotion to the formula and allows people to achieve in ways they would never believe possible.”
Hull adds that the ownership group allows them to spread the weight of ownership responsibilities and creates more people looking at the big picture.
“Bringing on the four new partners has energized the current ownership group with new ideas and more heads and hands to take on the challenges of a growing business,” Hull says. “It also creates a deeper bench of people that will step up to any challenges we may face; when you are an owner, you don’t think twice about doing what needs to be done in a crisis.”
Hull says she doesn’t think they would be where they are today if they hadn’t added their partners. The inclusion of employee partners has also impacted Franz Witte’s company culture.
“I believe it has strengthened our culture in multiple ways,” says Toby Mancini, operations manager and another new partner. “First by identifying a new career path for some that are motivated and contributing but didn’t realize this could be an option. Second, I believe that many team members are encouraged by us now participating at a higher decision-making level, that their voices, ideas and concerns will be carried there to be acted upon.”
Mancini says the other team members have been excited for the new partners and encouraged themselves.
Advice For Others
While an ownership group is a great way to gain diverse perspectives and sincere investment in the company, it can also be challenging to find consensus on decisions when there are varying viewpoints and personalities.
Hull agrees with Witte that it’s similar to a marriage.
“You have spats, disagreements and a few fights,” Hull says. “But at the end of the day, you’re still married, and you need to figure it out in order to keep the team moving forward. It is very obvious to the rest of the employees when there isn’t alignment in the team and that in itself can be a drawback. It’s learning to have each other’s back even when you don’t see eye to eye.”
Another consideration to be aware of is how to handle possible situations where a partner needs to sell their stock back for various reasons like a divorce or health issues. Hull says you need good documents to spell out how things work for these types of circumstances.
If you’re considering creating an ownership group for your landscape company, Hull says it comes down to what you want your business to become, as this route isn’t for everyone.
“Being an owner is not necessarily for everyone, but it is for some,” Mancini says. “It is a very motivating pathway for certain people, and when you have someone that believes in your vision and mission and is passionate about achieving those as well as working towards providing opportunity for others within the company, a partnership option is a rewarding pathway.”
Mancini says this isn’t the only way to reward high achievers and aligned employees. You can also develop a strong leadership team and structure variable compensation programs to share in the results of profitability.
“Ultimately, I think the addition of partners addresses a legacy question,” Mancini says. “Bringing additional partners in not only helps to share the workload but enables a smooth transition from one generation to another, with confidence.”
