Batiste takes on an expanded role at Klein Steel

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In his fifth year as president of Klein Steel Service Inc., retired Army Maj. Gen. John Batiste has led the company’s troops to average annual sales growth of 25 percent and increases in locations and employment.

The Rochester firm has undergone a $9 million renovation at its headquarters, expanded its Buffalo operations and added a sales office in Albany. Employment has grown to 220 workers-including some 145 here-from roughly 125 shortly after he arrived at the company.

"We are an aggressive company and will continue to grow," Batiste said.

CEO Joseph Klein is confident that Batiste will continue to expand the business while Klein spends nine months at Harvard University, starting in August, to work toward a master’s degree in educational policy.

While Klein, 60, will remain CEO, he said Batiste will run the company. The hands-off approach is one Klein envisioned when he hired Batiste, and they have worked side by side for a couple of years.

"Not only can he do it, I won’t have to use 1 percent of my energy to worry about the shop, which is good because I’ll be buried in work (at Harvard)," Klein said. "John has tremendous capabilities."

Klein Steel sells steel, stainless steel and aluminum in sheets, bars, pipes and other shapes to manufacturers, builders, steel fabricators, mechanical contractors and the food-processing industry. It also has computer-aided design equipment to burn through metals and special saws to provide specific shapes for its customers.

The firm also has operations in Syracuse and has a retail store on Lyell Avenue called Rochester Steel and Surplus, a division of Klein Steel. There is also a retail store in Buffalo.

2009 was the only year when the company did not see a revenue growth since Batiste joined the firm. The 13 percent drop in sales that year was due to the global economic recession. Batiste said the company improved operations and found efficiencies during the downturn and was able to avoid layoffs.

This year has started out strongly, he said, but he declined to disclose revenues for the privately held firm.

In 2005, Batiste retired from the military after declining a promotion to lieutenant general. He did so because he could no longer keep quiet about what he saw as the mishandling of the war in Iraq, primarily by former Defense Secretary Donald Rumsfeld.

After leaving the military, Batiste was interested in a job unrelated to defense. He met Klein through the Leader to Leader Institute, a New York City non-profit organization that, among other efforts, connects business leaders with generals transitioning from the military to civilian life.

Klein said he took some light-hearted ribbing because of how long he spent searching for a company president, but he wanted to make sure that his choice would be a good fit with the company’s values and a top leader.

Batiste, Klein said, "is one of the most organized people I’ve ever met and a tremendous leader. He earned the respect of his soldiers and now has earned the respect of his employees."

Much of that respect comes from Batiste’s willingness to make a sacrifice first, instead of going first to the employees.

"That is something I wish we saw more of in corporate America," Klein said.

Batiste has found the transition from the military to the private sector nearly seamless. Both require the ability to lead and incorporate the same principles of teamwork, action and debate.

A focus on employees has earned the firm kudos. Klein was one of five local firms recently named to the New York State Society for Human Resource Management’s 2010 list of Best Companies to Work for in New York. Klein ranked 18th but was the highest-scoring manufacturer in the small-to-midsize category, which includes companies employing up to 250 people.

Patrick DiLaura, chief talent officer, said Klein Steel’s accolades are due to programs focused on fostering teamwork and employee empowerment. Every July, for example, workers complete a survey in which they can comment on what is working and what may need to be improved at the business. That survey helps set priorities for the coming year, DiLaura said.

Also, Klein Steel University, launched in 2009, offers monthly courses for Klein managers on topics ranging from improving processes to safety.

"Leadership is a journey," Batiste said. "You are born with some traits, but others you learn over time."

To keep growing, Klein Steel plans to mine its geographic region more intensely for customers. In addition, the company wants to offer more customized services without competing with its metal processor clients, Batiste said.

Most of Klein’s customer base is in New York, but other customers are in Pennsylvania, Massachusetts, Ohio and Vermont.

The stainless steel market is an area of growth, Batiste said, as is processing, in which the company burns, saws, drills and punches metal to customer specifications.

Batiste also is involved with outside causes. He is involved in the local Veterans Outreach Center Inc. and has spoken about leadership at many community events.

He recently was elected to the board of directors for the Metal Service Center Institute, an international trade association that supports and represents the metals industry supply chain, including metals producers, distributors and processors.

Klein said he does not have a plan for after he gets his master’s degree but is not ruling out seeking a job as a school superintendent or even serving as U.S. secretary of education.

Klein said that despite his strong confidence in Batiste, his own decisions might sometimes differ from Batiste’s, most likely because of his longevity in the business. For example, Klein would like to see the company invest more in new equipment that would add to its capabilities.

Batiste continues to hone his leadership skills, Klein said: "John doesn’t make the same mistakes twice."

Batiste also is calm under pressure, a trait of good leadership, he said.

"The past 15 months or so have been very rough, but John has the experience to handle stressful situations and keep the employee morale high," Klein said. "It’s not like here he has bullets whizzing over his head, so he can pretty much take things in stride."

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