Record growth becoming the norm at ITAGroup

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The leaders of ITAGroup Inc. sometimes feel as if they operate one of the most misunderstood companies in Greater Des Moines.

Steve Chapman, the company’s chairman and CEO, said the perception is that ITAGroup is a travel agency, when actually, it’s a performance marketing company with sales approaching $250 million and a client list that includes some of the largest U.S. companies.

But the reason for the misconception is easy to see. The company that ITAGroup evolved from, International Travel Associates, is a travel agency. Since 1963, that company has offered group travel for local businesses and associations. In booking travel business, leaders of International Travel Associates saw additional services the company could offer to its clients. By the early 1990s, the company created ITAGroup as a separate entity to handle performance-improvement strategies such as meeting and event planning, product launches, recognition and awards, business-to-business loyalty programs and sales incentives.

“We design marketing strategies to improve performance at all levels,” said Steve Chapman, ITAGroup’s chairman and CEO. “It’s much more than awards to motivate people, it’s understanding our customers’ business to be an extension of their marketing efforts.”

Sales incentives and meeting and event planning account for a large portion of ITAGroup’s performance improvement initiatives, according to Kory Schramm, a resource manager in corporate marketing and measurement. Sales incentives are programs created to drive sales, such as reward trips that insurance companies commonly offer their top-selling agents. In the meetings and events category, ITAGroup handles logistics such as travel, entertainment and on-site communications for business meetings and conferences.

Most of ITAGroup’s clients are sales-based industries such as banking, insurance and pharmaceuticals. Clients’ involvement with ITAGroup often begins with sales incentive planning, but that leads to additional strategic marketing services.

“A company might want to send employees on a reward trip to Jamaica, but then we ask them if they are doing anything for years of service recognition awards, business-to-business loyalty, et cetera,” Schramm said. “A combination of these approaches will do more to improve performance and help the companies achieve their goals.”

ITAGroup has about 200 clients, Schramm said, 15 of which are on the Fortune 100 list of the largest companies in the country. The company’s client list includes some local businesses, but Chapman said much of ITAGroup’s growth is coming from outside Iowa.

For 15 consecutive years, ITAGroup has achieved record sales and earnings. Chapman credits the company’s success to its employees and the commitment they have to their company as employee-owners. ITAGroup has been an employee-owned company since 1987. Everyone receives stock in the company when they are hired and additional stock each year.

“Everyone has a vested interest in working toward success for our clients, because our employees benefit when we are successful,” Schramm said.

About 450 employees work at ITAGroup’s headquarters in West Des Moines. An additional 30 employees work at its 10 sales offices in other U.S. cities. Growth within the company led to the recent decision to expand the management team. On Dec. 1, Tom Mahoney was promoted to president and chief operating officer of ITAGroup. Also, John Michel was promoted to vice president of sales.

“Our company is a great deal larger today than it was when the partnership began, and it was time to put in a succession plan that put a president in place who will continue to grow this company in the years to come,” Chapman said.

Chapman had served as president for 17 years, but he said the change in leadership doesn’t mean that he is planning to retire soon.

In addition to having success with its sales and finances, ITAGroup recently attracted national attention as being a good place to work. In October, Principal Financial Group Inc. named ITAGroup to its list of the “10 Best Companies for Employee Financial Security.” Judges in the competition noted exceptionally low turnover rates and a growing focus on retirement income security among the winners. ITAGroup’s turnover rate is less than 10 percent, Schramm said.

Schramm said his company takes employee retention seriously because it demonstrates the success of “living our brand.”

“We couldn’t talk to our clients about building loyalty and driving sales if we weren’t doing well in these areas ourselves,” Schramm said.

Chapman said employee retention is simple: put your employees first. Other things will fall into place when you have priorities in order.

“Our number one priority is our people,” Chapman said. “We want our people to be well-trained, mentored, supported and empowered so they are confident in delivering in our promises.”