The Zildjian Company, based in Norwell, Massachusetts, is the largest cymbal maker in the world and the oldest continuously family run business in the United States. Founded in Turkey in 1623 by Armenian alchemist Avedis Zildjian, the company, with 2006 revenues of $52 million, is now run by 14th-generation descendent Craigie Zildjian, who took the reins from her father in 1999, becoming the first woman to head up the business. We spoke with Zildjian about the challenges of leading her nearly four-century-old company into the future. The following are edited excerpts of the interview. What’s the secret to keeping a centuries-old business on the cutting edge? Many of the things we do are what any good company should do, whether it’s thinking one year out or 100. We’re guided by our core values—a focus on continuous quality improvement, innovation, craftsmanship, customer collaboration, empowering employees, avoiding complacency, and reinvesting in the company. We don’t have a secret formula for our strategy. It’s just good management practice. That said, there’s no question that our legacy keeps us all focused on preserving the business for the long haul. As my niece Cady, part of the 15th generation, said, “We’d never want to be the ones to have to sell the company.” How do you balance the fear of being “the Zildjian who sold the business” with the need to take risks? A sure way to damage the business would be to stop innovating and risk taking. We have an estimated 65% of the world cymbal market, but that market share isn’t a given. We have fierce competitors. So, on the one hand, we preserve the family jewels—the secret formulas we use that go back centuries—but we’re always working on product innovations and other improvements. For instance, we introduced the first titanium-coated cymbal as a limited edition line, which was a risky R&D project but paid off. And we’re in the middle of a major plant expansion that will give us more capacity than we currently need. We’re betting on the future. Does this long-range focus affect how you relate to your customers? We’ve always collaborated with customers on products—something a lot of companies are just catching on to now. My grandfather Avedis, who set up the U.S. company in 1929, became good friends with Gene Krupa, Chick Webb, and Papa Jo Jones, and he worked closely with them to develop the modern drum kit. Krupa wanted my grandfather to make thinner versions of marching cymbals to go with his drum set—and those became the basis for the “ride” and “crash” cymbals that every drummer uses today. Jo Jones helped my grandfather perfect the hi-hat that’s also now part of every drum kit. My father was a natural at this type of collaboration. Today, we continue the tradition of bringing artists into the plant so our R&D manager and marketing people can meet directly with them. We also take employees into stores so they can see customers buying Zildjians—and the competition. Careful listening is part of our corporate strategy. How does Zildjian’s legacy affect succession planning? We had a destructive sibling rivalry in my father’s generation, and we want to avoid a replay of that at all costs. In assuring Zildjian’s future, one of the biggest tasks I face as CEO is getting succession right. We don’t want the 15th generation to feel obligated to join the business, nor do we want them to feel entitled. We have strict criteria about joining the business. Family members are required to work for another company before joining Zildjian full-time—so they know how to manage and have learned from their mistakes elsewhere. Ideally, we like them to work in different areas of the business so they can complement each other. And we avoid having family members report to other family members. My niece has just joined the company and will report to an executive who joined us from Gillette. That kind of arrangement assures an ideal mix of old and new blood. We also meet as a family about every quarter to get any family issues out in the open. This separates out family issues so they don’t contaminate the business.
