RoadShow Media- Press Release - TEI - THE PRESIDENTS' FORUM NEWSLETTER

		09.May.08
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Houston, Texas (June 3, 2005)

June 2005


Getting to the next level Part of a CEO's job is to help employees be successful. Manufacturing makeover Colonial Bronze uses "lean thinking" to fight competitors.		ALSO IN THIS ISSUE Calendar: Presidents'Forums About The Entrepreneurship Institute TEI Membership Benefits and Services Local Chapter Sponsors of The Entrepreneurship Institute
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Getting to the next level
Part of a CEO's job is to help employees be successful.


Steven Kiser

Ever make a decision only to find your employees still questioning it months later? Look out. This "right of infinite appeal" can be fatal to your company's growth, warns R. Steven Kiser, CEO of SecureInfo Corp.

"Demonstrate to employees that you listen and make the best decisions you can with the information at hand, but demand loyalty to those decisions," stresses Kiser. "Otherwise, the right of infinite appeal can cause you to fail -- and you won't know whether the decision was bad or if employee commitment wasn't there to make the decision successful."

Kiser, who has more than 30 years of experience in leading high-growth technology companies, joined SecureInfo in June 2003. Based in San Antonio, Texas, SecureInfo provides training on information-security systems and offers software products for security compliance and vulnerability. Founded in 1992, the company struggled for many years, but landed some important government contracts after the 9/11 terrorist attacks. SecureInfo's revenue, which had been hovering around the $1 million to $2 million mark, suddenly jumped to $8 million in 2002, $33 million in 2003 and approximately $49 million in 2004.

Being in a hot domain like information security certainly helps fuel fast growth, but doesn't ensure it. Speaking at a TEI Presidents' Forum, Kiser discussed key aspects for taking a company to the next level:

The right environment. A large part of a CEO's job is to provide an environment that's conducive to the success of others, says Kiser. At SecureInfo, he wanted to create a culture that fosters open, honest communications. "That means you can't shoot bearers of bad news," he explains. "Encourage your people to give you warning signs of problems. The earlier you recognize when things aren't working, the better your chances for fixing them."

Many companies refuse to admit that their business plan isn't working or the market isn't the size they thought, Kiser adds: "It's not a crime to admit that things aren't working. It's a crime not to do something about it."

The right people. When hiring employees, don't focus solely on technical skills, but also consider other attributes candidates possess and if those attributes fill your needs.

For example, how do they fit into the culture you're trying to create? And what sort of relationships do they bring to the table? Those relationships could play a significant role in company growth.

The right processes. "People don't serve processes. Processes serve people," Kiser says. "But you have to have them. It's the only way you can grow from small to large."

Take communications. When you're a small company, communications channels are fairly easy -- information spreads naturally and rapidly over the grapevine. Yet as your company gets larger, you need formal processes to ensure consistency in how you conduct business, how you treat employees and how employees are expected to treat each other.

The right measurements. In small companies employee rewards are often subjective. To grow, you need to introduce more objective measurements. "Otherwise, you can't create a culture where people will want to work -- and want to work with each other," says Kiser. "That's what you're trying to build."

Manufacturing makeover
Colonial Bronze uses "lean thinking" to fight competitors.


Jamie Gregg

"Lean manufacturing is really a misnomer. Lean thinking is what counts. A process is a process, regardless of where it occurs," says Jamie Gregg, CEO of Colonial Bronze Co. in Torrington, Conn.

A producer of brass decorative hardware, Colonial Bronze was founded in 1927 by Gregg's grandfather and great-uncle. Yet in the '90s, the future of the family business became uncertain due to lower-priced importers stealing market share. To fight those rivals, Gregg decided to "bury them in variety," and Colonial Bronze expanded its product line, giving customers more choices than competitors could source from offshore.

Good idea, bad execution

As Colonial Bronze increased offerings, it succeeded in winning new customers. There was just one catch: They purchased fewer items. "That meant we had to chase smaller and smaller orders through the factory," Gregg says. Trying to produce high variety for low-volume orders in the company's antiquated factory took its toll, and lead times expanded exponentially.

Gregg's first move was to modernize facilities, but that did little to speed production. As a result, customers began to fall off, and Colonial Bronze's balance sheet bled red ink. In desperation, Gregg decided to try lean manufacturing -- practices that eliminate waste and reduce cycle time.

Lean strategies are typically used for high-tech products rather than low-tech goods like Colonial Bronze produces.

"But when you stop to think about it, lean manufacturing is nothing more than a mindset toward the activity in which you're currently engaged," Gregg says. "The idea is to question why you're doing what you're doing -- and see if that adds value for the customer."

Colonial Bronze began to map its various production processes, breaking down each process into a series of steps. Then it scrutinized each step to see if that activity contributed to the desired end result.

One of the best ways to analyze processes is to involve employees from different departments. "Take someone from your shipping department and put them in an area where a saw is running," Gregg suggests. "They'll ask questions that people in that department have forgotten to ask."

As part of its lean initiative, Colonial Bronze abandoned traditional batch-and-queue production (where a large number of parts move through one department before advancing to the next) in favor of a cellular system.

Cells are groups of workstations and equipment -- self-contained areas with all the resources required to produce a product or sub-component. Properly executed, a cell sytem reduces production time and waste. What's more, it can improve quality because defects are noticed and fixed faster, resulting in fewer damaged products in the pipeline.

Back in the black

Within a year of implementing lean thinking, Colonial Bronze had reduced its backlog of late orders from more than 1,200 to zero, and average lead time dropped from 35 days to six.

The next step was to apply lean techniques to the front office. This resulted in a 36% decrease in sales and general administration expenses from 1998 to 2004 even though employees' wages were increased. Another plus: By improving the flow of information in the front office, Colonial Bronze reduced returns caused by order-entry mistakes.

The company was able to continue its high-value, high-mix strategy -- this time with success. From 2001 to 2004, Colonial Bronze introduced 3,000-5,000 new items a year. And on the financial front, EBITDA moved from a low of -5% in 1999 to 11% in 2004.

Important: Get employees committed as soon as possible, Gregg stresses: "If employees think process improvement is going to eliminate their jobs, you'll never get buy-in. We told workers we wouldn't lay them off, that we would move them around, which is what we've done."

Conducting a demonstration of lean techniques can help convince doubters. "I had some die-hard employees who didn't believe it was going to work," Gregg adds. "But once we ran through some simulations, employees began to begrudgingly understand it."

Calendar: Presidents' Forums

JUN 8 - Executive Caterers at Landerhaven, Mayfield Heights, OH

JUN 14 - The Gregg Conference Center at American College, Bryn Mawr, PA

AUG 30 - Oak Hills Country Club, San Antonio, TX

SEP 14 - The University of Chicago Gleacher Center, Chicago, IL

SEP 22 - Bentley College Meeting & Conference Center, Boston, MA

OCT 6 - The Harris Conference Center, Charlotte, NC

OCT 20 - The Cobb Galleria, Atlanta, GA

NOV 2 - Jones Graduate School of Management at Rice University, Houston, TX

NOV 17 - The Bethesda Marriott Hotel, Washington, D.C.

To attend a Presidents' Forum in your area, apply by calling 614-895-1153 or visiting www.tei.net/experience.asp.

About The Entrepreneurship Institute

by Jan Wm. Zupnick, President

Founded in 1976, TEI's mission is to provide unlimited opportunities for business owners to grow their companies. TEI is dedicated to meeting the knowledge and networking needs of America's small- and mid-market company presidents. When these presidents can learn from each other what works and can tap the expertise of top-level professionals who serve on our advisory boards, they are better able to lead their companies to stronger profits and sustained growth. This creates wealth and jobs, both of which are good for America.

TEI's educational programs, networking opportunities and business communications are targeted to presidents of existing multimillion-dollar enterprises. A growth orientation is a key criterion for invitation to TEI's learning programs, such as The Presidents' Forum.

To become a member of TEI or for more information, call (614) 895-1153 or visit www.tei.net/apply.asp.

TEI Membership Benefits and Services

Membership in The Entrepreneurship Institute:

Provides important, up-to-date management information.
Provides access to top business experts.
Gives your business visibility with local and national business owners.
Provides hundreds of contacts nationwide through TEI's Web site and other member firms.

Services Include:

A free one-page listing of your firm's products/services in TEI's Peer Contacts section at www.tei.net/ask_peercontacts.asp.
The Presidents' Forum Media Library of streaming audio webcasts featuring America's best business leaders is now available for free. Speaking at Presidents' Forums nationwide, these business leaders can now share their strategies, tactics and wisdom with you in this expansive archived audio library. To take advantage of this powerful resource, go to: www.tei.net/presidentsforum.
A subscription to The Presidents' Forum electronic newsletter featuring the most current thinking of CEOs on important business issues.
Guaranteed invitations to any TEI Presidents' Forum nationwide at the reduced fee of $180. Go to www.tei.net/experience.asp for Forum dates.
Free access to HR Powerhouse -- a premium online service for professional human resources information and management tools. Go to www.tei.net/member.asp for more details.
Free access to hundreds of current articles written by experienced business owners and experts. Refer to more than 30 searchable categories on www.tei.net/read.asp.
A free personal leadership assessment and 16-page report, The Wonderlic Entrepreneurial Quotient.

Dues:

Twelve months for only $99 (dues are tax deductible).

For more information, go to www.tei.net/member.asp.


Local Chapter Sponsors of The Entrepreneurship Institute
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Atlanta, Georgia Administaff, Inc. •Brill Financial Group/MassMutual •Community Foundation for Greater Atlanta •Grisanti, Galef & Goldress •Habif, Arogeti & Wynne, LLP •Nease, Lagana, Eden & Culley, Inc. •RBC Centura •Robins, Kaplan, Miller & Ciresi LLP •Seyfarth Shaw LLP •The Leader Publishing Group, Inc. Boston, Massachusetts Administaff, Inc. •Bruce M. Arons & Co./MassMutual •Citizens Bank •Grant Thornton LLP •PAETEC Communications, Inc. •Presidents Advisory Committee •Sovereign Bank •Thrive Networks •Tofias P.C. Charlotte, North Carolina Administaff, Inc. •Galles Communications Group, Inc. •Grant Thornton LLP •Hinrichs Flanagan Financial/MassMutual •James A. 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P. Young Co. •Glaw, Londergan & O'Neal, LLP •Hibernia Bank •Houston Technology Center •Howard Frazier Barker Elliott, Inc. •Insurance Alliance •Locke Liddell & Sapp LLP •Longnecker & Associates, Inc. •mpressa •NAI Houston •Pierpont Communications Inc. •Presidents Advisory Committee •Rice Alliance for Technology & Entrepreneurship •RoadShow Media •Sabre Marketing •Skyline Displays of Houston, Inc. •UHY Mann, Frankfort, Stein & Lipp Advisors, Inc.		Los Angeles, California Administaff, Inc. •Barrington Associates •Duff and Phelps, LLC •Emeritus •Executive Careers Ltd. •First Federal Bank of California •Good Swartz Brown & Berns LLP •Jeffer Mangels Butler & Marmaro LLP •Kibel Green Inc. •Lockton Companies •Manufacturers Bank •McDermott, Will & Emery LLP •Michel Financial Group/MassMutual •PAETEC Communications, Inc. •RSM McGladrey •Sheppard, Mullin, Richter & Hampton LLP •The Blaine Group, Inc. •Wells Fargo Bank MetroWashington, D.C. 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Chapter •Novak Charter Oaks Insurance & Financial Services •Oxford Health Plans, A United Healthcare Company •Pullman & Comley, LLC •RSM McGladrey St. Louis, Missouri Administaff, Inc. •Bank of America •BCL Financial Management Consultants •Brighton •Brighton INBOX •Bryan Cave LLP •CBIZ •CBIZ Business Solutions of St. Louis •Colarelli, Meyer & Associates, Inc. •Douglas Group Inc. •Lexow Financial Group/MassMutual •Polsinelli Shalton Welte Suelthaus PC •Rubin, Brown, Gornstein & Company LLP •Southwest Bank •Stark & Associates •St. Louis County Economic Council Tampa, Florida Wasatch Front/Salt Lake City, Utah Economic Development Corporation of Utah •Grant Thornton LLP •Intermountain Financial Group/MassMutual •Marsh USA Inc. •Oracle USA, Inc. •Van Cott, Bagley, Cornwall & McCarthy •Vanguard Media Group •Wayne Brown Institute

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