Raising the Bar

James Weaver, CEO of Gold’s Gym International, comes across as a man who sticks to his word. He’s also a man who doesn’t believe in walking away from a job and leaving unfinished business behind. A born entrepreneur with a real desire to improve – regardless of the project – Weaver seems to be exactly what Gold’s has been looking for: A leader who can help take the gym chain to the next level and allow the company to realize its full potential as one of the most recognizable brands in the world.

A LEADER IN THE MAKING
Weaver grew up in Dallas in a family with a modest income. He went to work at an early age to help make ends meet and paid his own way through school at the University of Texas, ultimately graduating with honors. After college, Weaver set out to find a company that would allow him the opportunity to apply his education to the business world. He was looking for an organization that would offer opportunities for advancement and excellent training, which he found in Johnson & Johnson Medical. Throughout his 10 years with the company, Weaver led sales and marketing for its Hospital Division and also gained experience with operations. “I don’t believe that things happen due to circumstance alone,” says Weaver, who feels his entire life has prepared him for the role of CEO at Gold’s.

After spending his formative years at Johnson & Johnson, which included quite a bit of moving around the country and vying for the top jobs, only to get them and be moved again, Weaver and four other talented individuals he had met in the industry were ready for a change. He was living in New Jersey at the time, so he packed up to go back to Texas, where he and his new partners founded Tecnol Medical Products, a medical supply company where Weaver would remain for the next 20 plus years. “We started on a shoestring because the banks didn’t believe in us, but we were able to prove ourselves and secure financing by making our customers the center of our business,” he shares. “We became market leaders due to innovative product designs, which made our products an excellent value for the money.”  He says this was accomplished by simply listening to customers and providing exactly what they wanted – not by trying to beat competitors on price alone – a concept Weaver believes also applies to the fitness industry. “While some gyms may be cheaper than others, we don’t believe that price alone will ultimately be the deciding factor for most consumers,” he says. “These days, people are savvy shoppers and want the best value for the money they spend, and that means providing a comprehensive workout experience.”

When Tecnol was purchased by Kimberly Clark in 1999, the company had attained the No. 1 market position for virtually every product it sold and had grown from five to more than 3,000 employees, with nine manufacturing locations, selling products in 53 countries. Weaver spent the next several years working as a business consultant for one of the largest law firms in Dallas while also helping his wife Joy, who teaches business and social etiquette across the country, get her company on the fast track.

NEW CHALLENGES
Although Weaver enjoyed many aspects of his work as a consultant, he’s a self-described “finisher” by nature and missed seeing the fruits of his labor at the various companies he worked with in this consulting capacity. All that was to change, however, when Weaver received an e-mail from Jim Caldwell, president and director of TRT Holdings, the parent company behind Gold’s Gym International, in October 2008. The two had met previously in church, but this time Caldwell wanted to set up a lunch meeting between himself, Weaver and Bob Rowling, the chairman and CEO of TRT, to discuss the possibility of Weaver joining Gold’s as its president and CEO. “I asked these gentlemen about their future plans for Gold’s and they both were emphatic about their excitement regarding their investment in Gold’s and their commitment to its long term growth and success. Based upon this long-term commitment to the brand, I was excited to accept the position,” Weaver says.

Upon his arrival at Gold’s in November 2008, Weaver began working to improve the structure of the organization and also set out to repair damaged relationships with franchisees. “You have to start with a clear vision of where you want to go and then you make plans to accomplish your goals by working together as a team,” Weaver shares. “I’m also a firm believer in developing a ‘flat’ organization to cut back on the number of levels in management and therefore on the number of lapses in communication between the CEO, the employees, the members and the franchisees.”

To facilitate clarity, Weaver also holds monthly “Just Ask James” meetings, where he encourages a high degree of accountability among employees; at the last meeting he asked everyone to commit to becoming 10 percent better in 2009 and promised he would raise the bar and set the example himself. Weaver also went out on the road, visiting franchisees across the country to personally deliver the message that he intends to give them the support and attention they deserve. “I assessed the situation and realized that if we are going to leverage the strength of our brand and continue to grow, we need to have the support of our franchisees,” he says. “A major focus will remain on giving our franchisees the tools they need to succeed. We want to create an environment where best practices are openly shared within our organization and where there are stepping stones in place for everyone to become successful.” While Weaver says he thinks the majority of Gold’s Gym franchisees like the sound of this, he also realizes that positive actions are the only way to rebuild trust, and he has every intention of making it happen.

DRIVING FORCES
James Weaver is someone who can develop a clear vision, lay the groundwork to accomplish that vision and will stick around to see it through. He does this by drawing on his experiences in business, his faith and his love of thinking outside the box or, as he likes to call it, “flipping rocks” to find the best new ideas. A deeply spiritual man, when asked about his personal philosophies Weaver mentioned a biblical passage written by Paul from the Book of Colossians: “Whatever you do, work at it with all your heart,” and said this passage, along with the Golden Rule and Zig Ziglar’s famous quote, “You can have everything in life you want, if you will just help other people get what they want,” comprise some of his deepest guiding beliefs. Weaver also says the demanding pace of this industry makes it essential for him to keep his priorities in order. “For me, it’s faith in Jesus Christ, my family and my work – in that order. This doesn’t mean not working hard, but always remembering what I am working for.”

From Jim Collins’ popular book, Good to Great: Why Some Companies Make the Leap… and Others Don’t, Weaver says he learned the importance of hiring the right person for the right job. “I learned a long time ago that the best baseball player doesn’t always make the best coach, so I believe in raising expectations from the beginning, because it saves money to do it right the first time,” says Weaver. “Otherwise, mediocre plans with mediocre people will guarantee mediocre results.”

NEXT STEPS
At this year’s IHRSA trade show, Weaver and Gold’s announced plans to begin building new, smaller concept gyms that will allow the fitness chain to penetrate deeper into existing markets and enter new markets that would not support a larger club. The cost of these compact new facilities will be less than $600,000 – only 25 percent of the normal cost of the company’s big box versions – and Weaver promises they will offer the same workout experience as traditional Gold’s Gym locations. Also, the company recognizes that ease of market entry is essential, so the new gyms can be built out in a fraction of the time it would take to build a larger box. To ensure this, Gold’s will assist new owners with everything – from training, locating and purchasing real estate, to arranging financing, designing and building the gyms – a total turnkey operation.

Since Weaver joined the team, Gold’s has also begun to get serious about attracting more of the 85 percent of Americans who are not currently gym members. To this end, and as a nod to our country’s current economic and health crisis, the company has designed its very own “$22 billion dollar fitness stimulus package.” The plan provides a free seven-day pass to Gold’s Gym for every American over 18, as well as a free personal assessment from a personal trainer and an individualized workout plan. In addition, the company is in the process of developing an online “total fitness solution” that will help people of all fitness levels better achieve their goals.”

Today, Gold’s Gym has around 62 corporate-owned facilities and 640 franchises worldwide, including 160 international locations. According to Weaver, the company has plans to double this number within the next three to five years. “Anyone can open a gym, but it takes time to build a brand, and that’s a big part of who we are,” he says. “I am honored and blessed to have the opportunity to guide this great company and look forward to helping it thrive and grow.” Joe Gold’s legendary first location at Venice Beach, Calif. is where it all began, and Weaver says he was impressed by just how revered and loved the brand still is during a recent event at the original location. “I was visiting to celebrate the launch of our new video game, which is now available exclusively for the Wii system (see page 12 for more on this) and the show of support, combined with the pictures of Joe Gold, Arnold Schwarzenegger and countless other celebrities and fitness icons who have been long-time members, really drove home the fact that our heritage is something money can’t buy.”

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