While some approach middle age with

trepidation, Illinois-based Group O is

embracing its 40th birthday this month—

and looking forward to many more.

Founded on October 1, 1974, when Bob

Ontiveros started selling packaging supplies

out of the back of the family station wagon,

Group O has grown into one of the country’s

largest and most diverse Hispanic-owned businesses with $600 million in revenue and more

than 1,500 employees.

Ontiveros’ son Gregg, now principal owner and CEO, says the success results from being

able to adapt quickly to customer needs—an even higher priority now that supplier diversity

initiatives have matured and business cycles have compressed. And he recognizes the

challenges in transitioning a family-owned business between generations.

“Only about 30 percent of businesses survive passing into the second generation, and only

about 12 percent are viable into the third generation,” said Ontiveros. “To be one of the

survivors, a business needs to be agile and match the same rate of change that its customers

are facing.”

At 40, Group O has stayed remarkably flexible. The company was recognized in 2012 as

one of the Top 5 Latino-owned businesses in the U.S. by the U.S Hispanic Chamber of

Commerce (USHCC)The company also earned a National Supplier of the Year award from

the National Minority Supplier Development Council, and has won several supplier awards

from its blue chip clientele. Both Bob and Gregg actively mentor other business owners and

Gregg has participated in President Barack Obama’s Hispanic CEO Roundtable at the

White House.

Gregg (left) and Bob Ontiveros

“Supplier diversity is definitely changing, from both the supplier and the customer end,” Ontiveros says. “Custom-ers are more focused on the value propo-sition of sup-plier diversity, in the sense of being able to use companies tha t c an be more strategic and not just transactional companies that can meet any and all challenges as they relate to price and quality and service.

“Supplier diversity was just getting started when I started. It’s become much more of a mature concept and procedure. A lot of companies that are very good at it have had it baked into their DNA. They have processes and procedures. It’s forced the minor-

ity businesses in the space to elevate their processes and the way they go to market—which has helped to create a much stronger ecosystem of diverse businesses.” 

Group O itself has evolved over the past 40 years by entering new markets

and adding offerings. The company now focuses on four core businesses: marketing, supply chain, packaging and business analytic solutions.

Ontiveros expects that recent expansions into Minneapolis and Dallas will enable Group O to expand through the midsection of the U.S. and return to its employment high of more than 2,000 people, despite

increasing challenges that affect mi-nority and other businesses alike. 

“The disruptions are market-based disruptions,” Ontiveros says. “The business cycles have compressed as

3 Keys to Working with Large Clients✓ Get certifi ed as an minority business through your regional Minority Supplier

Development Council and then start networking with local councils and chambers of commerce. Certifi cation helps open doors that would otherwise be tough to get through.

✓ Demonstrate the value and ROI that only your business can deliver. Put yourself in your client’s shoes and understand their needs to reduce costs and grow results.

✓ Be ready to match the same pace of change that your large clients are experienc-ing. If you’re not evolving with them, you could fi nd yourself facing your own ice age.

(con tin ued)

they relate to change and the way companies change their business models. There are extremely disrup-tive technologies that keep emerging and will continue to emerge that render business models obsolete. The time frame for those has compressed quite a bit,” from three to five years in the past to 18 to 36 months.

“You really have to be diligent about understanding where your customers are going and what they’re doing. If you’re not evolving with them, you could find yourself facing your own ice age. That’s not exclusive to diverse companies. It’s the world we live in today.” 

Group O’s response is to keep in close touch with its customers, which include AT&T, Microsoft, PepsiCo, Best Buy, Caterpillar, John Deere, Staples, Michelin, Samsung, and other Fortune 500 companies.

“The best direction we can get is really from our customers,” Ontiveros says. “They help us to understand where the marketplace is heading and shaping up. It’s very much on the forefront of how we try to figure out what our next move is.” ◆

Paul Richardson is director of Brand & Business Development for Group O. As a seasoned brand commu-

nications professional, he brings extensive insights f rom both the client and agency perspective—across both traditional and new media. Richard-son directs Group O’s

content and corporate marketing efforts.

USHCC selected Group O as a top-five Latino-owned business at its 2012 National Convention. Left to right are USHCC Chairman Marc Rodriguez, Group O Chairman Bob Ontiveros, USHCC Chairwoman Emeritus Nina Vaca, Group O CEO Gregg Ontiveros, USHCC President and CEO Javier Palomarez.

Reprinted with permission from the September/October 2014 issue ofMinority Business Entrepreneur

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