PowerPoint Presentation
Growth:Wishing for it, Getting it, Surviving it. Stuart
TeshimaVice President and Corporate Controller
Growth
Everyone hopes for it.It defines accomplishment in business.It must
be handled with care and attention or it has the potential to
collapse a company.Epsilon (Internal Organic Growth):An increase of
45% in 2006.An increase of 39% in 2007.
History and Highlights
Diversified Engineering, Technical & Professional Services Corp.
Six Business AreasMarine and Industrial Services: Ship Repair, Alterations & Fleet SupportFleet Engineering Services: Engineering & Technical ServicesNuclear Operations & Environmental Management ServicesInformation Technology & Communications/C4ISR total program supportManufacturer of Flat Panel Displays and customized electronics Security Technology
Contract Vehicles
Department Of EnergyDepartment of Defense Department of Homeland
SecurityGeneral Services Administration
Awards
2007 DOD selects Lockheed Martin Maritime Systems and Sensors and
Epsilon Systems Products Sector for the prestigious Nunn-Perry
Mentor-Protg award 2007 San Diego Business Journal names Epsilon as
one of San Diegos Best Places to Work 2006 Epilepsy Foundation of
San Diego County recognizes Epsilon as Employer of the Year2006 San
Diego Magazine recognizes Epsilon as one of San Diegos Best
Workplaces2006 & 2004 - The San Diego Business Journal
recognizes Epsilon as one of the finalists for The Best Companies
to Work for in San Diego 2005 - Epsilon received Minority Owned
Technology Company of the Year Award by Inland Empire and the
Minority Business Development Center, a federally-funded program of
the Minority Business Development Agency of the U.S. Department of
Commerce2003 Inc. Magazine ranks Epsilon as #1 in the Defense
Sector in their America's 500 Fastest-Growing Private Companies
List
2003
2006San Diegos Best WorkplacesAwarded by San Diego Magazine
Employee Growth
Number of Employees
Number of Employees
San Diego, CA
China Lake, CA
Albuquerque, NM
Denver, CO
Keller, TX
Newport, RI
Portsmouth, VA
An International Company
Oak Ridge, TN
Bremerton, WAEverett, WA
Idaho Falls, ID
Las Vegas, NV
Pearl Harbor, HI
Overseas locations include:GuamYokosuka, JapanSasebo, Japan
National City, CA
Corporate Headquarters/ ProductsNuclear Operations &
Environmental Mgmt. ServicesMarine & Industrial
ServicesInformation Technology & Communications ServicesFleet
Engineering Services
18 Offices in 17 Locations
11-9-06
Challenges
Types of growthMore of the sameVertical IntegrationPeople &
ProcessesDiversified GrowthRisks inherent with new
businessPotential lack of skill sets needed to succeedService
company versus ManufacturerForeign businessGovernment versus
Commercial
Process
Initial Assessment.What do you have, what do you need?Interpreting
what is ahead.Wolf at the door and define your gaps.Think big,
strategic and set your goals.Continuously monitor and
reassess.Focus on objectives.Evaluate how you did?Repeat, repeat,
repeat.
Initial Assessment
Take an Inventory of PersonnelWhat experience do they posses?
Examples include Public Reporting, SOX skills, Strategic Thinkers
or plodders.Look at your company from a strategic vantage
point.What are your largest risks?Take an inventory of
CultureChange resistant or Change seekingOld School Mentality Weve
always done it that way.
What do you have?
Small Company Mindset.Tactical and stuck in Quadrant 1.Bottleneck
in decision making.Slow to react.Big Company Expectations.Deliver
results.Everything boils down to numbers.Tone at the top, ethics
based system of controls.ProcessRecognize the environment
change.Auditing is moving toward a risk oriented process
model.Ending balances are a result of process.
What do you have (contd)
CultureIs there an element that is non-financial in nature that
creates success?Identify the intangibles that make your company
desirable.Is there a current underfoot that is a
priority?Preserving profit versus culture/core values.Examples
EpsilonBen & Jerrys
What do you need?
What do you have to do today that you didnt yesterday?More people
to supervise.More levels of management.What will you have to do
tomorrow that you didnt today?Regulatory.Multiple sources of audit
activity.What makes sense to implement, what makes sense to
defer?Risk;Importance;Cost.
Wolf at the door!
Risk evaluation.What issues could potentially cause the most
disruption in your organization?What fits into the companies
strategic plan over the next 3-5 years?Develop objectives after
reviewing the companies strategic objectives.Identify gaps.Address
immediate steps to correct in the short term.Use your limited
resources wisely to develop a strategic plan.
Dare to think big
Your goals should address big initiatives not just compliance or
general job duties.Use middle management to be responsible for the
tactics.When developing goals, think big and always endeavor to
overshoot goals.You can always alter them if the situation
changes.
Continuous Monitoring
Fallacy of success.Process is continuous and evolving.Never rest on
goals achieved.Your company is perpetually changing and so should
your thinking.Quad 1 versus Quad 2Imperative to force yourself to
work on the company not in the company.
How did you do?
Use SMART Goals.SMART (Specific, Measurable, Attainable, Realistic
& Time Bounded)Avoid soft, non-quantifiable goals.Have the
discipline to review goals at least quarterly.Alter them if
conditions warrant.Develop follow on or new goals at this
time.
Repeat, repeat, repeat.
Not a static, one time activity.Retrospective;Over time, your
organization will become stronger, more efficient and able to
handle the rigors of a dynamic environment.By reviewing/revising
each quarter;You ensure the course changes necessary to keep your
focus strategic.Keep your planning efficient.
Conclusion
Growth is a blessing and a curse.Assessing your organization and
people is a necessary step.Development of an evolving strategic
plan is vital.Review risks to your company.Continue to review your
organization and plan.
Questions?