Today we’d like to introduce you to Loren Stark.
So, before we jump into specific questions about the business, why don’t you give us some details about you and your story.
My great grandfather, Leander J. Stark, started the company in 1910 in Guthrie, Oklahoma. At the time it was called L. J. Stark & Son. My grandfather, Loren D. Stark, joined him in 1921 after serving as a Second Lieutenant in the Artillery in First World War and then graduating from Northwestern University. Loren, because of the Great Depression, moved to Houston where in 1938 he brought his family and young son Donald Dayton Stark (Don). Loren continued to operate under the name L. J. Stark & Son until Leander’s death in 1940 when he changed the name to the Loren D. Stark Company. My father, Don Stark, joined the company in 1957 following his graduation from Wharton Business School and serving as a First Lieutenant in the Navy. He received a law degree from South Texas College of Law in 1966 and opened a law practice that he operated in conjunction with the Loren D. Stark Company until the early 1990’s. I joined my father, Don Stark, in 2006 after a brief attendance at the University of Houston. I say brief attendance because I never graduated. Interestingly enough my father was the primary advocate of me not completing University as he believed the education and practical experience learned from him to be far superior. His analysis was correct.
Shortly after joining my father and in the process of analyzing the family business I realized we were quickly approaching a glass ceiling of diminishing returns (more specifically “the law of diminishing returns”). As such our business model needed refinement. Generally speaking the available options are fairly limited and that is to either commoditize (water down your service model) or increase prices. Neither option was too desirable. So we decided to get creative and developed what we believe to be an excellent arbitrage. This was accomplished by opening our first international office in Vietnam in 2007. We then expanded the operation to the Philippines in 2011.
Keep in mind back in 2007 we administered about 1,500 retirement plans and had about 30 US employees. With the leverage accomplished with our international team we’ve been able to grow that to 3,000 plans and 55 US employees all while preserving the same low cost high service business model.
We’re always bombarded by how great it is to pursue your passion, etc – but we’ve spoken with enough people to know that it’s not always easy. Overall, would you say things have been easy for you?
Being the new guy with new ideas and no historical performance or “street cred” for vindication is probably always met with sincere skepticism. This is especially true when working with a group of people who’ve done the same thing the same way for multiple decades. In retrospect some of my initial changes were so practical it’s hard to believe that there was ever any resistance. I’ll give you an example. In 2005 one of my objectives was to get the company paperless (I know this sounds trivial in 2017). We bought the fastest scanners we could find and started implementing protocols to have each department paperless. The degree of opposition I received was extraordinary.
Department supervisors would come to me like Moses with the Ten Commandments on reasons why it was impossible, not the right time or not in the best interest of the company for their department to go paperless.
Everyone came around eventually. The people factor is the common denominator behind the success or failure of any business and likely the same regardless of your industry or company size. If you work with amazing people you will undoubtedly have amazing results. As a leader you have the responsibility of employing the appropriate people capable of accomplishing the company objectives at a particular stage of the life cycle of the business. The greatest challenge is the employment of the correct people. The greatest testament to the suitability for your people is their ability to overcome obstacles which are ever present in a dynamic workplace. Needless to say, I work with some really amazing people!
We’d love to hear more about your business.
We are retirement plan consultants and our staff of Actuaries, Attorneys and CPAs are specialists in Profit Sharing, Defined Benefit, Cash Balance, Employee Stock Ownership and 401(k) Plan Administration. We are known for having excellent customer service and never shying away from a problem. Our most valuable asset is our employees, our most priceless possession is our reputation and our foremost privilege is to serve our clients.
What were you like growing up?
One of my high school teachers described me as a rational anarchist. My DISC profile is the Creative pattern.
I’m not sure if those are accolades or criticisms but likely an accurate description either way. My mother emigrated from Australia in the early 80’s which is interesting because Aussie citizenship passes from parent to child, so my sister and I were born with dual citizenship. I suspect much of early life wasn’t too different than most people. One noteworthy event, attributable to my school’s curriculum, was my time in a bagpipe band. We won the Juvenile Pipe Band World Championship in 2004 in Glasgow Scotland. After retiring from bagpipes, I switched over to bass guitar and played in a rock band for a number of years. I got my first job at a dry cleaner when I was 14 and have not stopped working since. When I turned 18 I tried to start a cigar wholesale business. That was colossal failure however the education received was invaluable. Attempting to get an audience with local cigar shops taught me the value of selling which is arguably the most important lesson any person can learn. It wasn’t obvious at the time but that experience likely provided the platform for the confidence necessary for starting operations in another country half way around the world.
Contact Info:
- Address: Houston | 10750 Rockley Road Houston, TX 77099
Dallas/Fort Worth | 4545 Fuller Dr., Suite 400 Irving, TX 75038 - Website: http://ldsco.com
- Phone: Houston: 281.498.5777 | Dallas/Fort Worth: 972.717.3800
- Email: info@ldsco.com
- Facebook: https://www.facebook.com/LorenDStark
- Twitter: https://twitter.com/ERISA_LDSCO
- Other: https://www.linkedin.com/company/loren-d–stark-company-inc-
Getting in touch: VoyageHouston is built on recommendations from the community; it’s how we uncover hidden gems, so if you know someone who deserves recognition please let us know here.
