developing a high performance organization...developing a high performance organization derek...
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Developing a High Performance Organization
Derek Coppinger
Chief Operations Officer
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Derek Coppinger
Chief Operations Officer for National Technical Systems (NTS), Derek is responsible for the efficient and effective operations of all operating units at NTS. He has served as a visiting lecturer for the past 10 years at the University of New Hampshire, and currently sits on the Board of the American Council of Independent Laboratories (ACIL). He holds a Master's Degree in Science from Cranfield University in England, certification from the National Association of Corporate Directors (NACD) and the Boston University Pocket MBA for Lawyers. His work experience encompasses engineering, operations, customer service and supply chain management.
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High-performing Companies
Companies rarely fail for lack of vision. They fail because they cannot translate
their vision into execution.
Vision without execution is hallucination.
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High-performing Companies
“Great performance is about 1% vision and 99% alignment”
Jim CollinsBuilt to Last
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1982
� Acquired Acton
Laboratories in Acton,
MA
1991-1999
� Expanded operations
to facilities in Camden,
AR, Boxborough, MA,
Tempe, AZ, Culver City,
CA, Tinton Falls, NJ and
Plano, TX
2013
� Surpasses $175 million
of revenue for the first
time, with $184.5
million of revenue in
FY 2013
50-Year Track Record and Reputation as a Testing Leader
5
1975
� NTS went public and
was renamed National
Technical Systems
� The Fullerton, CA
location was
established
1960 1970 1980 1990 2000 2010
1988
� Acquisition of
automotive testing lab
in Detroit, MI
1992
� NTS began
Certifications of
Management Systems
(Registration) through
NQA JV
2011
� NTS celebrates its 50th
anniversary and
debuts a new
corporate branding
strategy
2005
� William McGinnis
promoted to CEO
2004-2011
� Continuation of effective
acquisition strategy, completing
13 acquisitions
� Diversification into Supply Chain
Management through
acquisition of Unitek
1998
� Launched a strategy
for building a
dominant position in
EMI, EMC, HIRF
Lightning and NEBS
telecommunications
testing
1961
� Aaron Cohen and Jack
Lin co-founded
Approved Engineering
Test Laboratories
(AETL)
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Historical Pro Forma Financial Summary
6
Revenue Growth – FY 2007 – FY 20131
($ in millions)
2007 – 2013 CAGR: 15.8%
EBITDA in FY 2007 - $6.5 millionEBITDA in FY 2013 - $28.7 million
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Ronald Reagan
“Entrepreneurs and their small enterprises are responsible
for almost all the economic growth in the United States.”
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Barriers to Growth
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• 28 million companies in the U.S. file tax returns• 96% have fewer than 10 employees
96%
4%
0.4%
17,000
2,500
$1 million10 FTEs
$10 million50-75 FTEs
$50 million200-400 FTEs
$500 million1,000+ FTEs
Copyright Alampi & Associates
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Predictable Barriers to Growth
• Leadership
– Delegation
• Systems & Structures
• Market Dynamics (Fundamentals)
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Issues that impact a company as it movesthrough transitions to the next level
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Barriers to Growth
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Leadership
96%
4%
0.4%
17,000
2,500
$1 million10 FTEs
$10 million50-75 FTEs
$50 million200-400 FTEs
$500 million1,000+ FTEs
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Barriers to Growth
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Systems & Structures
96%
4%
0.4%
17,000
2,500
$1 million10 FTEs
$10 million50-75 FTEs
$50 million200-400 FTEs
$500 million1,000+ FTEs
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Barriers to Growth
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Market Dynamics
96%
4%
0.4%
17,000
2,500
$1 million10 FTEs
$10 million50-75 FTEs
$50 million200-400 FTEs
$500 million1,000+ FTEs
Get nextcustomer
Figure OutMarket
StrategicPositioning
MacroEconomics
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Benjamin Franklin
“Without continual growth and progress, such words as
improvement, achievement, and success have no meaning.”
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Test Case
So how did NTS grow in 7 years by:
– $108 million
– Complete 12 Acquisitions
– Increase EBITDA from 8.5% to over 15%
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Balanced Score Card
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Financial Client Focused
Internal Processes Learning & Growth
Business Perspectives
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Myth of Excellence
The Myth of Excellence provides conclusive evidence of the futility of trying to be excellent in all aspects of a commercial transaction—value, product (capability), access, experience, and service. Instead, the strategy for your products and services should be to dominate on one element, differentiate on a second, and be at industry par (i.e., average) on the rest.
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Growth Horizons
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Horizon 3: Long Term - 3 – 5 Years- Innovation Growth- Acquisition Growth
Horizon 2: Mid Term - 1 – 3 Years- Innovation Growth- Acquisition Growth
Horizon 1: Short Term - Fiscal Year- Organic Growth / Market Penetration- Acquisition Growth
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NTS CORPORATE STRATEGY MAP
“Our success comes from…F
ina
nci
al
… enduring value-added relationships…
Cli
en
t
Build Client Confidence
& Loyalty
Understand Client Changing
Requirements & Needs
… delivered by a motivated & prepared workforce.”
Lea
rnin
g &
Gro
wth
… which is all about best practices, dominant capabilities & awesome service…
Inte
rna
l P
roce
ss
Grow Revenue
Recruit, Hire, Retain
the Brightest & the Best
Enhance Skills“I’m developing the skills
I need to succeed.”
Foster
Employee Engagement
Drive Process Improvements
Optimize Utilization of
Resources
Meet Clients’
Needs
Ensure Enterprise Branding
& Consistent Level of Service
Innovate New &
Improved Services
Make Strategic Acquisitions
Integrate
Engineering Services
Industry/Regulatory Knowledge
Provide Leading Edge
Industry/Regulatory Knowledge
Service Strategic Accounts
Execute
Complex Programs
Maximize Free Cash FlowMaximize EBITDA
Operational Excellence Capability / Capacity Customer Fulfillment
Alignment with our Alignment with our Alignment with our Alignment with our Core Values Core Values Core Values Core Values is the foundation to understanding and executing our strategy.is the foundation to understanding and executing our strategy.is the foundation to understanding and executing our strategy.is the foundation to understanding and executing our strategy.
Organizational IntegrityOrganizational IntegrityOrganizational IntegrityOrganizational Integrity
Respect for the IndividualRespect for the IndividualRespect for the IndividualRespect for the Individual
Quality Customer ServiceQuality Customer ServiceQuality Customer ServiceQuality Customer Service
Stewardship Stewardship Stewardship Stewardship –––– “Obligation to Stakeholders”“Obligation to Stakeholders”“Obligation to Stakeholders”“Obligation to Stakeholders” One EnterpriseOne EnterpriseOne EnterpriseOne Enterprise
The Best People make the Best TeamsThe Best People make the Best TeamsThe Best People make the Best TeamsThe Best People make the Best TeamsEmbrace and Drive ChangeEmbrace and Drive ChangeEmbrace and Drive ChangeEmbrace and Drive Change
Personal and Organizational GrowthPersonal and Organizational GrowthPersonal and Organizational GrowthPersonal and Organizational Growth
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Company Culture and Values
• Organizational Integrity- We value honest and respectful transactions.
• Respect for the Individual- We seek to foster a trusting, open and inclusive
environment.
• Quality Customer Service- We want to consistently deliver value by providing
outstanding service that builds confidence, loyalty and respect.
• Stewardship- “Obligations to our Stakeholders”- It is our responsibility
to properly utilize and develop our resources- people, property and financial assets.
• Embrace and Drive Change- Part of being a growing and thriving company is
continuous process improvement and change.
• One Enterprise- We leverage the power of relationships and collaboration “Dual
Citizenship” to deliver exceptional service, capabilities and access to our clients.
• The Best People Make the Best Teams- We seek to deliver our services
through a motivated and prepared workforce.
• Personal and Organizational Growth- We encourage employees to grow
personally and professionally.
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Operational Philosophy
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Dominate on capability, differentiate on client service
Capability Dominance Superior Client Service
• Maintain extensive accreditations, certifications, and memberships
• Hire and retain industry-leading personnel and subject matter experts
• Provide the broadest service offering
• Invest in new equipment and capabilities while continuously pursuing innovation
+ Provide closer proximity to facilities through broad geographical coverage
+ Offer unparalleled access onsite and through virtual lab technology
+ Service with dedicated account managers bringing full capacity resources to bear
+ Leverage capacity and spread work to meet client needs
One Lab Approach
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Strategy Focused Organization
• Mobilize Change
• Translate our Strategy into Practical and Operational Terms
• Align the Organization
• Motivate to Make Strategy Everyone’s Job
• Make Strategy a Continual Process
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Office of Strategic Management
• Communicates the strategy to the organization
• Facilitate and coordinates the tasks associated with execution strategy
– Support alignment of activities
– Provide strategy review
– Support management in making decisions to achieve desired results
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Team & Change
“There is no 'i' in team but there is in win.” - Michael Jordan
“There is no limit to what you can accomplishif you don't care who gets the credit." - Ronal Regan
CHANGE
“It is not the strongest of the species that survive,nor the most intelligent, but the one most responsive to change.” - Charles Darwin
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Executive Team
William McGinnis, President, CEO
Dwight Moore, CMSO Michael El-Hillow, CFO
Doug Briskie, CSO Derek Coppinger, COO
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Looking to the Future
Make a decision.
Form your Team.- Storm
- Norm
Change.
Strategy.
Execute.
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Leaving Thoughts
“Progress is impossible without change,and those who cannot change their minds cannot change anything.” - George Bernard Shaw.
“An ounce of performance is worth pounds of promises.”Mae West
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