High marks: status quo is a no go for Frederick H. Marx of Marx Layne & Co. his mid-career switch from retail to public relations is proof that taking a calculated risk can yield immense rewards.

Everybody knows Fred Marx, and Fred Marx knows everybody. OK, there's a bit of hyperbole in that statement--and the man himself would be the first to deny its veracity--but it's really not that far off the mark.

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Just look at the resume with the name Frederick H. Marx at the top. A 20-year career in retail that begins with vice president and controller at Sharffs, a retail group in southeast Ohio (1965-1970) ... vice president-advertising at Jacobson Stores Inc. in Jackson (1970-1975) ... vice president-sales promotion and store planning at Lazarus, a division of Federated Department Stores, in Dayton (1975-1977) ... senior vice president-marketing at Macy's in Atlanta (1977-1978) ... senior vice president-marketing at J.L. Hudson Co. in Detroit (1978-1984) ... senior vice president-administration at Hudson's new owner, Dayton Hudson Department Stores (1984-1985).

Whew! You don't chart an upward curve like that without getting to know people, and getting yourself known. But the story doesn't end in 1985. In a dramatic mid-career change of direction, Marx--with partner Michael Layne--co-founded Marx Layne & Co., a two-man show in 1987 that has grown to become the Detroit Region's second-largest public relations firm.

And it all started in a shoe store down in Columbus, Ohio.

Detroiter: That's quite a resume! How did you get started on this career path?

Marx: During high school I didn't want to ask my parents for money, so I got a job working at a shoe store--Friday nights and Saturdays--in Columbus. I was 16 years old. It was on commission--a dollar an hour plus 1 percent. I had the job for a couple years in high school. This store was part of a major chain that had stores on the East Coast, and they asked me to join their executive training program and work Saturdays as a department manager while I went to college. So by the time I was out of college, I knew the basics of retailing.

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Detroiter: You worked in top positions for others for 20 years. What prompted you to start your own business? Are you a risk taker?

Marx: I had to decide whether to stay with Dayton Hudson, which would have meant moving my family to Minneapolis. My wife and I and our family had made a number of moves over the years, so this time I decided to stay put and see what happens. I think in that sense maybe I am a risk taker--to give up Corporate America and everything that comes with it. I decided it was time for a second career. I wasn't sure what it would be, but it evolved very quickly. I left Dayton Hudson in May 1985, and three days later I was already getting assignments. It was a very fortunate situation, and then Mike Layne came along. He is a very strong risk taker and we said, "Let's do it." And we did it ourselves. I can remember many times we'd be up until 2 or 3 in the morning.

Detroiter: How did you grow your business?

Marx: It was just the two of us initially. One by- one we added clients--most of which we still have. At that time there were about three major companies doing public relations and they had pretty much a gridlock on the town. We never went out and recruited people from other agencies, and we didn't really go after other people's clients. We just had the good fortune that a number of businesses were coming our way. One of them was Arbor Drugs, under Eugene Applebaum, which had just gone public. So within six months we had a very important client. That gave us credibility. And we were debt-free from the beginning.

Detroiter: Looking back, is there one person who stands out as a true mentor?

Marx: There were many people over the years, but there were two in particular--Joe Hudson and Eugene Applebaum. I learned a great deal from Joe, particularly about civic and governmental affairs and strategic planning. He is second to none. Gene is an individual who gave very clear definition to an organization. He always encouraged us to stay very focused on our business, and to stay true to what you're doing and to build an organization and entrust people. He developed people from inside and kept them engaged and challenged. If you made a mistake or something didn't go right, that was OK--you just didn't do it a second time. He always encouraged you to go beyond your comfort level. What I learned from Gene Applebaum is how important it is to get the right people in the right jobs, as exemplified by Don Tanner, our third partner here at Marx Layne.

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Detroiter: You've been in business now for over 15 years. What do you see as the key to your success?

Marx: Our business model is not based on a conventional PR firm. We use a model much like a law firm and have from the beginning. This means having people specializing in certain areas such as automotive, nonprofits, real estate, technology and so forth. New business is very important, of course, but we have a "client-first" mentality. Our No. 1 goal is to exceed the expectation of the client, to keep them, to grow with them--or sometimes even to contract with them--but to maintain that relationship. As a result our client base is so large today, by design, that one client leaving would not materially affect us or force us to lay off people.

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Detroiter: You're obviously an expert in meeting and greeting people. What's your secret?

Marx: You have to put yourself in a secondary role and you have to listen very clearly to their signals--and you have to know something about that other person. So if I see somebody today, whether their name was in the paper last week or whether they just got some award or whatever it might be, I try and think of something to open the conversation so they can talk about themselves. I started learning that lesson back when I was a 16-year-old "shoe dog" and measuring people for shoes.

Detroiter: You've been a leader in the region's business community for 25 years. What's your personal definition of a good leader?

Marx: A good leader brings other people forward. A good leader uses the word "we" instead of "I." I also think a good leader is someone who looks for ways to say "yes" as opposed to "no"--who is not someone who says, "We've done that before and it doesn't work." One of the things I often say is, "Tell me the good things. Let's look for ways of doing this. Let's look for ways to say yes." I'm not interested in what somebody can't do; I'm interested in what people can do. A leader is a very positive person, someone resourceful, willing to put forth the extra effort and willing to go beyond their comfort zone. A good leader is willing to get a little bit bruised, willing to speak up, willing to take assignments and complete them--someone who's disciplined and has a point of view.

Detroiter: As a member of the Detroit Regional Chamber's board of directors, what advice would you give the Chamber's executive management team?

Marx: I think the key--and the Chamber does it better than most--is get your people (board members) engaged. Give them assignments, put them on committees. Don't lose them. I think the Chamber does a far better job today than they did years ago because they have so many activities. People sense that there's something there for them, a sense of the unexpected--like having Gov. Jennifer Granholm and Wayne County Executive Robert Ficano as guest at board meetings to name a couple of recent examples. What I particularly like about the Chamber's leadership team is that--even in challenging times--they're not into excuses, they're into results. People are attracted to the Chamber because they get things done. The Chamber is not status quo. I often say status quo is not a strategy, it's a cop out.

Marx Layne & Co. is a Bronze-level member of the Detroit Regional Chamber.

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Cover photo: The Marx Layne management team gathers around Fred Marx with props illustrating, the firm's scope. Pictured (clockwise) are: Leslie Pardo, account supervisor (chef's hat); Michael Szudarek, vice president (laptop computer); Jerome Espy, account supervisor (hard hat); Heather Blasko, account supervisor (mortarboard); Robyn Gorell, account supervisor (stethoscope); Don Tanner, partner (toy car); David Bassett, vice president (cell phone); Matt Friedman vice president (globe); and Michael Layne, partner (palm pilot). They are standing around a polar bear sculpture from the Detroit Zoo, a Marx Layne client.

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File on ... Frederick H. Marx

Title: Partner, Marx Layne & Co., Farmington Hills.

Born: March 23, 1942, Denver.

Education: Master of arts in communications, University of Pennsylvania (1965); Bachelor of science in economics, The Wharton School of Finance, University of Pennsylvania (1964); The Columbus Academy, Gahanna, Ohio (1960).

Family: Wife, Sally Sloman Marx; children Julie, Andrew, Carolyn and Scott.

Home: Bloomfield Hills.

Affiliations: Detroit Regional Chamber Board of Directors; Detroit Historical Society Board of Trustees; American Jewish Committee-Michigan, Vice President; Wayne State University College of Pharmacy & Health Sciences Board of Visitors.