James Murphy Jr.: Turning Things Upside Down By Christine Imbs “The best thing to do with an organizational chart is to turn it upside down.” This may fly in the face of traditional management practices, but Jim Murphy, chairman of the Murphy Company, says to him it just makes more sense. “In an organizational chart, you have a strong individual at the top who’s controlling and making all the decisions,” he says. “But I believe what the people with the big titles should do, is try to figure out how to help all the people working with them be more effective.” This philosophy has served him well in achieving the company mission of providing valuable solutions to its customers. The Murphy Company, in business since 1907, which performs construction, engineering and service work in the industrial, commercial, municipal and institutional construction markets, has annual revenue exceeding $172 million. It was ranked the 10th largest mechanical specialty contracting firm in the 2005 Engineering News-Record. But ask Murphy if he’d like to see the company eventually reach the number one spot, and he’ll tell you he’s not as interested in the company’s ranking as he is in the people who help him run it. “In and of itself, we’re not interested in growing,” he says. “The only thing that’s going to force growth within the organization is if we take talented people and allow them the opportunity to reach their maximum potential. If we don’t, they’ll go where they can get that opportunity. And without a doubt, it’s been the people working with me who have allowed this organization to be so successful.” It was two of these people in particular that helped Murphy make the decision to finally join the family business back in 1970, following his initial apprehension. With the Murphy name plastered on the side of the building and his father as president, he anticipated people might think he’d received preferential treatment. He came to grips with the situation when two of his father’s top people offered him a job in the company. They made it clear that they, not his father, would be his mentors and if he didn’t cut it, they’d let him know. “It was Mel Becker and Don Carter, two people I respected and knew would be ‘no nonsense’ as far as I was concerned,” he says. “They weren’t going to be impeded by the fact that I was the SOB—‘son of the boss.’ Of course, anytime you enter into a family business of any size, you have to be careful and keep your nose to the grindstone to avoid the perception of favoritism.” As it turned out, Becker and Carter not only mentored Murphy early in his career, in 1979 they approached Murphy’s father about making him president of the company. “They told my father they thought the appropriate thing to do was to promote me over them into the role of president,” Murphy recalls. “After my father passed away in 1982, it was the three of us who led the company for about the next 15 years. If I had to pick anyone who’s had the greatest impact on my development and mentoring, it would be the two of them.” The commitment to mentoring that benefited Murphy extends beyond top officers, helping Murphy Co. develop a strong management team for continuity and a culture that advances strong contributors. “We have been very fortunate to attract and retain a team of great people who are focused on innovation and results that deliver solutions valued by our customers,” he says. When asked his business philosophy, Murphy responds without hesitation, “Diversity.” “Construction is a very cyclical industry,” he explains. “So the more diversified you are in your products offered and markets served, the less likely all are going to get hit by identical cycles at the same time.” As for his proudest achievement, Murphy says it’s a no-brainer. “Having satisfied customers and employees who are happy, growing and thriving. There’s nothing more rewarding than that.”   TalkingPOINT FAMILY: Wife, Mimi, and three children. EDUCATION: B.S. in mechanical engineering and B.A. in American studies both from Yale University. CAREER: Lieutenant, Civil Engineers Corps, U.S. Navy, 1966-70; joined Murphy Company in 1970; named president in 1979. FAVORITE CHARITY: United Way, because so many different charities benefit from it. FAVORITE BOOKS: Stephen Covey’s “The 7 Habits of Highly Effective People” and “Principle Centered Leadership.” HOBBIES: Traveling ST. LOUIS IMPRESSIONS: “We’re just the right size—not too big and not too small. You don’t feel overwhelmed as you do in New York.”

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