ProBuild is making several changes to its leadership and reporting structure in an attempt to bring upper management closer to customers and markets, the company revealed in a March 20 memo to employees from recently appointed CEO Robert Marchbank.  According to the memo, the changes will also allow the dealer to focus on key priorities it set for 2012.

“As part of the annual operating plan process, we are prioritizing and reducing the number of business initiatives for 2012,” he said.

The operational changes at the Denver-based supplier are intended to bring leadership closer to its teams in the fields and rises from the “need to engage our people and our customers to better understand and respond to their needs.” ProBuild will therefore eliminate the executive vice president layer of its operations. According to a company spokesperson, the two roles being eliminated are executive vice president of local markets and executive vice president of metro markets. As part of that decision, here are the operational changes announced:

  • All senior vice presidents of operations will report directly to Marchbank, effective immediately.

  • Ed Waite, currently evecutive vice president of local markets, will move back to Alaska to assume the role of senior vice president of operations there. Darin Coder, a senior vice president of operations based out of Seattle, will report to him.

  • Frank Garcia, currently executive vice president of metro markets and  formerly head of the company’s South Central region, is leaving the company.
  • Bryan Reckrodt, a senior vice president, is also leaving ProBuild to pursue other opportunities.

  • All senior vice presidents will join Probuild’s executive leadership team.

As part of the changes, the building material supply giant will also eliminate some positions within its support staff. In the memo, the Marchbank said senior vice president of human resources Felicity O’Herron will leave the company due to personal reasons and according to a spokesperson, her departure is not related to the changes. Paul White, of Devonshire Investors, which originally backed the Strober Organization, the original incarnation of ProBuild, will serve as the interim human resources leader. The following changes will also be made to the support staff:

  • ProBuild will eliminate its corporate development function and as a result, the current senior vice president of corporate development, Michael Mahre will leave the company. As part of this move, the Real Estate division will report to senior vice president and general counsel Mark Butterman and the Construction Services unit will report to the Manufacturing division.

  • The company is transitioning its Transformation Management Office (TMO) into a more focused and tactical project management team. Mark Garboski, currently vice president TMO, will stay with ProBuild for several weeks to ensure a smooth transition of TMO resources and project accountabilities, and then he will leave the organization.

  • The National Accounts and Sales Force Effectiveness unit, led by Wendy Minichiello, vice president of sales, will report directly Marchbank.

  • Marketing will report to Paul Dodge, senior vice president supply chain, within the Supply Chain function.

  • The open position of vice president marketing will not be filled.

  • The Pricing unit, led by David Koth, will also be overseen by Don Riley, executive vice president of supply chain and technology. Koth will report directly to Riley and will focus on developing processes and tools to help the locations better manage and analyze their product pricing.

At its home office, ProBuild instituted a hiring freeze and will spend the next three months reviewing what resources will be needed going forward to support the business.
“I realize there have been a number of changes in leadership and direction over the past 24 months,” said Marchbank in his letter. “We need to focus on developing the tools and capabilities that will differentiate our company in the future. I am committed to opening and maintaining a dialogue with you as we move forward…”

ProBuild is currently ranked No. 2 on our 2011 ProSales 100 listing with professional sales of $3.04 billion. The company operations more than 400 locations throughout the country. It went through a restructuring last summer that reorganized the company into three divisions and led to the departure of former CEO Bill Myrick.