Atlanta Legend - Herman J. Russell, Sr. (exclusive audio content)
Michael J. Pallerino
January 1, 2008
Herman Russell will never forget how the words made him feel. It was 1946 in
Atlanta. There were separate water fountains and restrooms for "white"
people and "colored" people clearly marked in big, bold letters. And there
were boundaries, so many boundaries in fact that segregation ordinances were
used as racial and class designations. People who were selling or renting
their homes were encouraged to "protect their investments" when dealing with
certain parties, particularly African Americans.
The mere thought of acquiring property in 1946 was a bold move for a black
man in the segregated South, let alone a 16-year-old. So, there stood the
young Herman Russell at the cusp of what should have been his first – and
proudest – entrepreneurial moment, staring at the words screaming to him
from that deed: "This land should never be sold to a Negro."
Because of a slew of back taxes, the City of Atlanta was selling parcels of
land, so it was an ideal moment for opportunistic business people to put a
stake in the young city – just not blacks. But let's get one thing straight
about Herman J. Russell, Sr.: You don't get what you have – a business and
philanthropic legacy so impeccable you can count the likes of Dr. Martin
Luther King, Jr., and Andrew Young as friends – without being a little
crafty.
So Russell did what any other entrepreneur would do – he found a way to make
it work. He asked a white friend to get the land for him. Years later, he
turned the vacant lot he purchased for $125 into a duplex. It wouldn't be
the last bold move that Russell, born in 1930 as the youngest of eight
children to a maid and a plasterer with a fourth-grade education, would
make. He would go on to build a construction empire that has consistently
ranked among the nation's largest black-owned companies, along the way
defining how an African-American entrepreneur could stake a claim in a
white-dominated construction industry.
At a time when African Americans still were separated from Atlanta's
thriving mainstream business and social communities, Russell became a
millionaire before he was 40, and his accomplishments along the way are why
he is the Business to Business Atlanta Legend honoree.
"You have to believe in yourself," Russell says today. "You have to equip yourself for
whatever the task may be. My daddy taught me there was no winning in quitting and you don't let
anything take your eye off the ball. You can make a difference by working hard."
Always one step ahead
Russell embraced his father's wisdom, always staying one step ahead of the pack. In 1952, the
senior at Tuskegee University in Alabama formed H.J. Russell Plastering Co., the predecessor to his
current business. And after receiving his degree in building construction, he went to work with his
father. When his father died in 1957, Russell took over the company. Two years later, he formed a
commercial and residential property management business and eventually expanded into general
contracting, construction and program management, and real estate development.
In 1963, Russell became the first black member, and then later the second black president, of
the Atlanta Chamber of Commerce. He also worked closely with Dr. King and became an outspoken
patron of the civil rights movement.
Over the next few decades, H. J. Russell & Co. would continue to solidify his place as a
construction force to be reckoned with, securing a number of high-profile contracts. The Georgia
Dome. Centennial Olympic Stadium/Turner Field. Philips Arena. The Martin Luther King, Jr.,
Community Center. Georgia-Pacific's corporate towers. And a number of MARTA rail stations, among
other projects. In 1979, he even launched Concessions International, a food and beverage enterprise
that operates in airports nationwide, further expanding his business acumen.
"You have to remember, I was born right after the Depression," Russell says. "My daddy just
taught me the art of working at an early age. He was my role model. He was one of the most fabulous
human beings I have ever known. He wasn't the most educated person. He never got past the fourth
grade. But he had a Ph.D. in common sense. He had a Ph. D. in the art of saving his money; and a
Ph. D. in compassion. I'm fortunate he taught me all of those good values."
A sharp eye on the bottom line
Russell always has maintained a sharp eye on the bottom line, demonstrating a business acumen
enabling him to not only out-distance his company from minority competitors but larger, white-owned
companies as well. When asked about his reputation as a keen businessman and philanthropist,
Russell glances out the window and carefully chooses his words. "My daddy told me you should always
stay focused on the task at hand, work hard and if you don't make but a dollar, save a portion of
that dollar."
This business philosophy not only helped build his business. With his success, Russell grew
more philanthropic, which included donating more than $4 million to his alma mater; contributions
to Clark Atlanta University, Georgia State University and Morehouse College; and an
"entrepreneurial school" at an Atlanta elementary school, which involves taking kids on field trips
to local businesses to expand their horizons.
Russell remembers a conversation with Dr. King, in which the late civil rights leader said,
"Herman, keep doing your thing. Because when these things open up, we will have to give our people
jobs." Through King's encouragement, Russell learned the dynamics of what it took to be an
entrepreneur. "It was all about providing for yourself, which meant that you could not only control
your destiny, but the destiny of your own people."
This is a principal that Russell has always embraced. And it has not gone unnoticed in the
Atlanta business community – and beyond. "You don't meet many individuals that have impacted as
many lives as Mr. Russell," says Atlanta Mayor Shirley Franklin. "He works every day to enhance the
livability and success of the city through his development of outstanding communities and
businesses. His tenacity and work ethic have made him one of the greatest business and
entrepreneurial leaders not only in Atlanta but around the world."
Arthur Blank, founder of the Arthur M. Blank Family Foundation and last year's BtoB Legend,
agrees. "Herman's legacy extends well beyond the landmark physical structures he's helped to
create. It's as much about how he's done it – through relationships and partnerships he's forged
and the strength of leadership he's shown through the years, all of which have had an enormous
influence in helping Atlanta fulfill its promise. Much of what we've achieved as a city wouldn't
have been possible without him."
Sam Williams, president of the Metro Atlanta Chamber of Commerce, says Russell always has
played a key role in the city's success. "Herman is one of the great bridge builders for business,
civic and racial cooperation – a characteristic that distinguishes Atlanta from any other city. As
chairman of the chamber in 1981, he was one of the key leaders in the state to help us recruit
national and global companies to Atlanta."
Russell and Atlanta today
At the end of 2003, Russell passed the torch to his youngest son, Michael. And while the
elder Russell remains chairman, Michael manages the company's day-to-day operations. His children's
involvement ensures his legacy will remain intact.
"Having the fortune to interact with him as a son and in the business world has given me a
unique perspective," Michael says. "One of the things I learned from him was consistency on how you
manage people and deal with issues. Those are important qualities for a good leader. If you show
consistency in your thoughts and actions, people will take notice. He also believes in doing what
you say you're going to do. My father exemplifies that. I learned you have to stay focused on what
you do.
"My father's legacy means a lot to Atlanta," he adds. "Here's a guy who grew the foundation
of his business in the '50s and '60s – an African American from Summerhill. Through his vision and
effort, we've been able to grow an institution that has allowed others, particularly African
Americans, to succeed and grow their own enterprises. There is no greater legacy than to know that
you grew the human infrastructure of a city. He left an institution for people like me to take to
the next level."
So what does Herman Russell, Sr., see in Atlanta's future? "I have seen some major changes in
our city," he says. "It's not the city it used to be two or three decades ago. It's on the cusp of
being one of the greatest cities in the world. We just have to make sure we are in control and we
don't choke ourselves. Controlled growth is good. But we've grown faster than people thought.
"We can solve the problem," he adds. "I believe we have the leadership in Atlanta to do it –&
amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp; amp;
amp; amp; amp; amp; #160;the chamber, the business community. We have the people. We just have to
get everybody to work together."
Russell calls transportation and education the region's major priorities. And while he
believes some strides are being made in education, there still is much work to do. As for
transportation, he says things could get worse if the business leaders don't do something about it
now.
"Atlanta always had the base to grow," he says. "When I was president of the Atlanta chamber,
one of my top priorities was to bring the metro counties together. That goes for today, too. We
have to realize we are all in this together. What you see here now is the tip of the iceberg. We
have to make sure education and transportation get on track because Atlanta will continue to grow.
And some day, we will be a city everybody else will admire."
