Dr. Jack Truong – Former CEO, James Hardie Industries, Plc
Dr. Jack Truong, the former CEO of James Hardie, has built his career on two decades of successfully creating and leading strategies that drive companies towards their full growth potential. His track record is marked by his ability to lead turnarounds and spearhead growth initiatives, delivering swift and unique results through a focus on innovation, disruption, and efficiency. Known for his collaborative approach, Jack has an innate understanding of the diverse needs of consumers, customers, employees, investors, and shareholders.
His journey with James Hardie began in 2017 initially serving as its President of International Operations. His role expanded to President and COO in 2018, and a few months later, he ascended to the position of Global CEO at a critical juncture for the company. Faced with stagnating growth and declining valuation, Jack instituted an aggressive turnaround strategy that led to a swift and significant transformation. By leveraging his distinctive skill set and experience running successful businesses at 3M Company and Electrolux AB, he introduced innovation into an industry traditionally resistant to change, enhancing team collaboration to improve speed and efficiency. This transformation enabled James Hardie to support faster, high-quality construction for builders and contractors.
During Jack’s three-year tenure as CEO, James Hardie Industries experienced remarkable growth. The company’s market capitalization surged by over $13 billion, a 370% increase. Additionally, organic annual revenue rose by more than $1 billion, a 45% uptick, and net profit increased by over $260 million, representing an 85% growth. Jack’s leadership not only revitalized James Hardie but also set new benchmarks for efficiency and innovation in the construction materials industry.
Elevating James Hardie to Global Excellence
Jack Truong saw James Hardie as more than a regional company with a single product line. He recognized the potential to leverage his experience and skills as a global business leader to transform it into a sustainable and profitable global growth company. Jack viewed this as an opportunity to create something extraordinary, but he knew it would require significant changes. The company needed a new direction, as it was operating in a single, outdated way while the market had evolved. He also noticed that the company’s various functions were siloed and disconnected.
Jack aimed to drive more synergy within the company to leverage and create critical mass. He believed that by steering the business in a new direction, James Hardie could perform significantly better on a larger scale. To achieve this, he quickly established a three-year plan based on four key pillars: a comprehensive James Hardie exterior products business, expansion of the interior products line, greater product innovation, and the implementation of LEAN manufacturing principles.
Through this strategic plan, Jack Truong aimed to connect the company’s functions more effectively, align it with the market’s evolution, and set it on a path to global growth and sustainability. His vision was not just to follow the market but to lead it, ensuring that James Hardie could achieve its full potential as a larger, more innovative, and efficient company.
Reflecting on a Year of Progress at James Hardie
A year after his appointment as CEO of James Hardie, Jack looks back with satisfaction while acknowledging areas for growth. He believes in the philosophy of continuous improvement, emphasizing that no matter the level of achievement, there is always potential for further enhancement. Jack maintains that there is no such thing as being “the best,” and he views the company’s past year’s performance as outstanding, yet with room for improvement. This perspective keeps the process exciting and forward-moving. Jack’s commitment to ongoing development underscores his leadership approach, driving James Hardie towards sustained progress and excellence.
Strategy for Navigating Global Markets
As the CEO of James Hardie, Jack sheds light on the intricate challenges confronting international manufacturers of building materials. The transportation, storage, and handling of bulky items such as building cladding and structural flooring pose formidable logistical obstacles. Moreover, diverse climatic conditions and distinct aesthetic preferences in each market further complicate efforts to standardize products across different regions.
Jack underscores the strategic imperative of capitalizing on commonalities across markets to achieve economies of scale. Simultaneously, he recognizes the strategic advantage inherent in the diversity of these markets, leveraging successful products from one region to drive innovation in others. This dual approach not only enables James Hardie to distinguish itself in the global marketplace but also empowers the company to deliver customized solutions that precisely meet the diverse demands of various regions, all while sustaining operational efficiency and fostering sustainable growth.
Vision for a Globally Connected James Hardie
Jack emphasizes the strategic advantage of the company’s 14 fibre cement manufacturing plants across North America and Asia-Pacific. These plants utilize the same processes and materials, allowing for a globally connected network that shares best practices. By aligning plant operations and management, James Hardie leverages its scale and expertise to continuously improve and standardize operations. Currently, James Hardie is recognized as the world’s leading fibre cement manufacturer, unmatched in production scale and unit cost.
In 2018, he spearheaded the acquisition of Fermacell GmbH, a leading high performance dry wall manufacturer in Germany, to expand James Hardie’s footprint in Europe,. It was then well integrated into James Hardie global business to leverage its know how and talent.
Beyond mere scale and global reach, innovation is a pivotal driver in shaping industry trends. James Hardie’s expansive footprint across diverse global markets not only affords it deep insights into a multitude of cultural preferences and evolving lifestyle trends but also positions the company uniquely to introduce cutting-edge products in previously untapped regions. This strategic approach not only addresses specific regional demands with tailored solutions but also frequently catalyzes unforeseen triumphs and market breakthroughs.
By leveraging its multifaceted market presence, James Hardie continuously refines its product offerings to resonate effectively with local sensibilities and functional requirements. This proactive stance not only enhances the company’s competitiveness but also solidifies its reputation as a trendsetter within the building materials sector. As a result, James Hardie consistently adapts and innovates, maintaining a dynamic edge in the global marketplace while seizing new opportunities for growth and expansion.
One such example is the Stria external cladding product, initially successful in Australia for its classic yet contemporary shiplap weatherboard design. Stria offers excellent insulation and resilience against Australia’s harsh climate. Its success prompted its introduction to the US market, where it has also been well-received, particularly in the Pacific Northwest and Southern California. Jack’s strategy combines global connectivity with local innovation, positioning James Hardie as a leader in the building materials industry. This approach ensures the company continues to thrive, adapting to new markets while maintaining high standards of production and design.
