Changes may affect Alticor's local ties
Article by Jack Naudi, The Grand Rapids Press, April 18, 2002.

Dick DeVos stressed many times that the company he leads is nothing like the soap-selling Amway Corp. founded 43 years ago by his father, Rich, and Jay Van Andel.  DeVos can take that observation a step further. The Ada-based multinational corporation barely resembles the one he took over a decade ago — and the one, he announced Wednesday, he will leave as president in four months.

The company long ago went international, recruiting legions of distributors worldwide. But during DeVos' tenure, the global pace accelerated, and even the name changed.  Today, Amway's parent company, Alticor Inc., does business in more than 80 countries and territories. It has more than 11,000 employees and 3 million distributors.  About 80 percent of the company's $4.1 billion sales come from outside the United States — ironic for a company whose original name is a shortened version of American Way.  Although privately held Alticor does not give precise numbers, it is believed the bulk of about $1 billion in U.S. sales come from Quixtar Inc., the Internet sister of Amway Corp.  Face-to-face sales, the bedrock marketing principle on which the company was founded, is fast disappearing in the United States.

With DeVos' unexpected announcement, many questions remain about the future of Alticor, a company that did not exist until a massive restructuring 18 months ago.  Who will succeed 46-year-old Dick DeVos? Will it be his younger brother, Doug, who heads Amway and Quixtar? Will it be a non-family insider?  Or will it be an outsider?  And will Alticor maintain its deep commitment to West Michigan, where it employs more than 4,000 people?

Once Dick DeVos leaves, only two founding family members will remain in management positions: Doug DeVos and company chairman Steve Van Andel.  Although DeVos and Van Andel family members remain firmly in control of Alticor, three non-family members last year were named to the company's 11-person board of directors.

"Having outside board members has been a very big benefit," said board member Dan DeVos, Dick's brother. "They bring in additional expertise, additional experience."

Despite that, picking a successor, no doubt, will be a struggle, said Roger Jansen, a Grand Rapids psychologist whose company, Leadership Capital Group, specializes in industrial and organizational management consulting.

"In a family company, a lot of issues are more dynamic by nature. They have set a philosophy or tone that they want (a successor) to uphold," Jansen said.

A family-controlled board, he said, will be conflicted. Board members might fear an outsider will be unable to live up to company values and respect its traditions.  An insider, however, might be ill-suited to take over.  The big question, Jansen said: "Does the person who is going to be the successor have the confidence of the people in the organization?"

Dan DeVos said he is open to any possibility — insider or outsider, family member or non-family member.  "Now is a good time to look beyond the structure and the people here. Change is always difficult, but I look at it as change like this presents an opportunity," said DeVos, who heads DP Fox Ventures, which owns the Grand Rapids Griffins and the Grand Rapids Rampage sports teams.

A logical choice for successor could be the youngest son of Rich DeVos, Doug, 37. In recent years, Doug DeVos has been the most prominent global face for the company.  He is constantly in motion, spending about a week every month traveling on company business, most of it overseas. In fact, he left Wednesday night for a business trip to Malaysia.

Doug DeVos would not comment on speculation he is the odds-on favorite to succeed his brother.  "I was never good in Las Vegas," said DeVos, who started with Amway in 1987. "I have tremendous confidence in the board and the folks who are in place to deal with this issue."  Another possible replacement to Dick DeVos is Steve Van Andel. But it is a long shot that the Alticor chairman would add president to his title. The company has kept the positions separate and both are considered full time.

Doug DeVos stressed that regardless of who took over the top spot, the company would remain under control of the founding families.  "The board continues to have a very strong role. Whether it's Dick or myself, the real emphasis comes from that level," he said.