“Inside the WorldBlu List” is a regular series on my blog that takes you inside the companies that made the WorldBlu List of Most Democratic Workplaces 2007 to learn more about just how they run their companies democratically.

Recently, I interviewed Brian Scudamore, founder and CEO of 1-800-GOT-JUNK? and also a WorldBlu List 2007 awardee. 1-800-GOT-JUNK? is the world’s largest junk removal service with more than 325 locations in three countries, 45 American states and nine Canadian provinces.

1-800-GOT-JUNK? is based in Vancouver, Canada and is a full-service junk removal company that has set a new standard for the not-so-sexy-business of junk hauling by being professional, friendly, and offering fantastic customer service. 1-800-GOT-JUNK? hauls away items that city garbage collectors don’t typically accept, such as old furniture, renovation debris, and backyard mess, thereby helping people reclaim their spaces.

The company is often recognized for outstanding customer service which is based on a simple idea really — the truck team members call customers in advance; arrive at the customer site on schedule; and provide a full cleanup after the junk is removed. And whenever possible, items that 1-800-GOT-JUNK? picks up are recycled or donated to charity.

1-800-GOT-JUNK? currently employs 167 people at their corporate office in Vancouver, which they call, “The Junktion.” Their annual revenues for 2007 are expected to be $125.5 million.

Below, Brian shares some of 1-800-GOT-JUNK?’s best practices in organizational democracy and why, “being democratic is extremely important to maintaining our competitive advantage.”

Traci: What inspired you to build and operate 1-800-GOT-JUNK? using democratic principles?

Brian: The first thing visitors to our corporate office, “The Junktion,” see is the phrase, “It’s All About People” painted on the wall in our reception area. I truly believe this business is all about people, people who share a passion for what we do and who are motivated to build something great together. I realized early on in my business that people are the most important resource I have, and so hiring great people and treating them right has always been a priority. Every person who works here feels an equal part of the team and is encouraged to express ideas or concerns when they arise. We really work hard to foster an equal opportunity environment because we’re all building this great brand together and every person is an integral part of the process.

Traci: 1-800-GOT-JUNK? is in an industry that’s highly competitive. Do you believe running your business democratically is key to your competitive advantage and does it have an impact the bottom-line?

Brian: If we weren’t a highly democratic company we would lose our people, the glue that holds us together, and so yes, being democratic is extremely important to maintaining our competitive advantage. Everybody at 1-800-GOT-JUNK? has an opportunity to express their ideas for growth and improvement of our business and we all share best practices. As a result, our people take pride in the work they do every day, and our customers reap the benefits. Our mission is to consistently ‘wow’ our customers, and doing that definitely has a positive impact on the bottom line.

Traci: What’s one of the biggest breakthroughs 1-800-GOT-JUNK? has experienced that you don’t think could have happened in a command and control environment?

Brian: At The Junktion we have a vision for the future boldly painted on the wall. One of the goals in that vision is to become “The World’s Largest Junk Removal Company.” With our expansion into Australia two years ago, we achieved that goal, something that would never have been possible in a command and control environment. In the absence of democracy in the workplace you have chaos. At 1-800-GOT-JUNK? our people are aligned with the company vision and work passionately toward attaining it because they’ve been given the freedom to feel they have a stake in the future. When we hit a major milestone like becoming the World’s Largest Junk Removal Company every single one of us feels we’ve contributed toward that. It’s a powerful feeling.

Traci: Can you share with us some of your best practices in organizational democracy?

Brian: We have a committee called the “It’s All About People” (IAAP) committee. It’s made up of six employees from various departments who check-in with the entire company on a regular basis. The purpose of IAAP is to make sure that as we grow, everybody’s ideas and concerns are heard and dealt with. The committee shares employee feedback with the leadership team and then the entire company comes together to openly discuss results and any new changes.

Town Hall meetings are open meetings for all the staff that happen once a quarter. It’s usually moderated by our Director of People and covers various topics of interest. Leaders report on what’s going on in their departments and then we have an open discussion and Q & A in which everyone is encouraged to share thoughts and ideas.

GGOB stands for the Great Game of Business. This is a monthly get-together of all the staff where the finance department reports on how the company is doing against revenue goals we’ve set. This is all about full disclosure and again, the meeting is open to questions. There are no stupid questions. Being a democratic company means equal opportunity for everybody to learn and grow as a team.

Traci: What’s one of the most valuable lesson you’ve ever learned from an employee?

Brian: The value of saying “Thank You.” I’ve seen time and time again just how much people appreciate being thanked and recognized.

Traci: People often ask me what the role of a CEO should be in a democratically-run organization. Based on your experience, what do you think is the role of a CEO in a democratic company?

Brian: My role as CEO of a democratic company is to lead by example. I’m at The Junktion every day working with all of these great people. I don’t have my own office, and I very often move around to different departments for a day at a time. I’m accessible to my employees and I encourage them to express their dreams for the company just as strongly as I do.

Traci: If another business owner could make only one change to make their organization more democratic, what recommendation would you give them that could have the biggest impact?

Brian: The Daily Huddle is a great place to start. We hold a seven-minute, stand-up meeting called Huddle at 11:55am. All the staff get together and a Huddle Master kicks the meeting off with good news. We share personal and professional good news. Then we take a look at our metrics, followed by “60 seconds in the news” - a snapshot of what’s happening in a department. Next we call out for ‘missing systems’ to see what’s working and what’s not, followed by ‘key opportunities.’ We finish Huddle with a Cheer! celebrating someone’s good news. Huddle is a great way to fuel up for the rest of the day, find out what’s going on in other departments, and share important information. It’s high energy and fun.

Traci: Thanks so much Brian!

There have been a lot of great articles and feature pieces written about 1-800-GOT-JUNK? Click here to read an Inc. magazine article written by Brian about how they hire democratically at 1-800-GOT-JUNK?