The Amway story: An enduring partnership

MANILA, Philippines - It all started some 50 years ago when two friends – Steve Van Andel and Richard DeVos – decided to put up a business of their own. Like many success stories, the company grew from its modest beginnings to become one of the world’s biggest direct selling companies with presence in over 80 countries and territories in Asia, Africa, Australia, Europe and the Americas. With more than 450 unique, high quality products sold by over three million independent business owners (IBO) worldwide, Amway generated sales of $8.2 billion last year and was ranked number 44 on the Forbes’ list of America’s largest private companies.

The Amway – short for American Way – story is unique not so much for its success but for the fact that its founders and their children have stayed together as partners for such a long time. And there doesn’t seem to be any indication that this partnership will end soon. Even when the reins of the company have been passed on to the second generation, the bond between the two families appears to be as strong as ever.

Current chairman is Steve Van Andel, who succeeded his father Jay as chairman in 1995 while the current president is Richard DeVos’ youngest son, Doug. The two are co-chief executive officers (CEOs). It was the same arrangement that their fathers had, with the older Van Andel as chairman and the older DeVos as president.

In an interview with a small group of Filipino newsmen, Steve Van Andel summed up the secret of the two families’ having maintained their harmonious relations throughout all the years that they have been running the show at Amway.

Steve recalled that when his father passed on the chairmanship to him, the older Van Andel advised him to focus on the solution, never on pointing fingers, whenever a problem arises.

Never say I told you so, Steve recalled his father saying. And he added: “Never be critical of a wrong decision.”

In a coffee table book published to mark the 50 years of Amway history, Steve Van Andel and Doug DeVos wrote: “Amway is a business built on strong values…We will continue to build on the original values and principles our fathers established to ensure the passion for the business stays alive.”

At the end of the book, Steve Van Andel wrote: “When we look back the last couple of decades, our growth has come largely through international expansion. Now, as we look to the future, we want to expand our market share in each of our affiliate markets. We want to be strong for generations to come. And we’re putting strategies in place to ensure we will be. Our legacy, and the legacy of everyone involved in Amway, depends on it.”

For his part, Doug DeVos observed: “Amway was established as a business that was intended to last for generations. It is our duty and responsibility to make sure that we keep building this business. Growth must be sustained or it’s not success. Fifty years is great, but what’s more important is how well we’ll do in the next fifty years.”