With an engineering degree and a Master's in Management, Chuck has 30 years of leadership experience in aerospace, with firms like Danaher, Barnes, Smiths and Klune. He is currently Executive Vice President at Exova, responsible for all aerospace business in the Americas. We are pleased to present Chuck's perspective on the state of the aerospace business.
How has the recession impacted your business, and what have you done to stay ahead?
We are a service business. To stay ahead of the curve we needed to carefully review our operating metrics (delivery, cost, and quality) to ensure we were meeting our customer's needs. We knew that in order to grow in all categories, even the slightest bit, we must be better than our competition. To that we developed specific metrics targeting growth and profitability. We developed a strategy to penetrate new markets and product lines and invested the appropriate capital to support growth. Through these actions we were very successful and for the past three years have had year over year top line and bottom line growth greater than 8% and have improved cash flow significantly.
To get and keep good people, what is the most important organizational strategy you use?
Finding good technical talent can be a challenge. We attract and retain good people by offering training to advance their careers, a good competitive salary, good benefits, and a flexible schedule. We have relocated good employees from one country to another to assist in their career growth and wellbeing. We solicit and welcome their input on their concerns, and ideas for improvements, which gives them a sense of involvement and belonging. Recent workforce increases have given the people a greater sense of security and stability.
What do you do to keep your team motivated in tough times?
There are several things we do to make a significant impact in retention and motivation. We help our people understand how their roles fit into the company's goals and objectives. This helps them stay excited and feel they are truly part of the team. We celebrate success with such things as a pizza party, certificates, or gift cards. We also acknowledge employee contributions relative to outstanding customer service and perfect attendance in support of the company. As managers we cannot underestimate how important it is for individuals to feel they are appreciated and are part of the team. It seems like such a small thing, but it has a huge impact on morale and job satisfaction when you feel appreciated and respected.
What is your expectation for the economy in the next year?
Recent decreases in the unemployment levels seem to send a message that maybe we are starting to turn the corner but I remain cautiously optimistic. I think the speed and effectiveness of the economy's recovery depends on which administration is in office. The civil aerospace industry in my opinion will continue on its upward path and add a shot to the economy's improvement. Defense on the other hand, with the threat of sequestration looming over our heads is of great concern. I firmly agree that the country cannot continue to increase or maintain its debt levels and must implement measures to reduce it. Curtailing defense cuts at the levels called out in sequestration is not the answer. Defense must contribute to the debt reduction but we need to act with caution and understand how and at what levels those cuts can contribute to the economy. In the past several years there has been a big shift in spending on the large platforms towards AWG's, Homeland Security, cyber security, UAV's and the like. Many of the larger defense primes have shifted towards these markets.
Productivity has been very high in the US. Do you think there will be a jobless recovery, or will employment pick up soon to keep pace with economic growth?
True, productivity has been very high in the US and I think it has been this way because with the condition of the economy there has not been as large a shift in employment movement as is seen in a more stable economy. With the recent change in unemployment levels to less than 8%, whether you believe it or not, I think it brings a slight hint of encouragement to some. I am cautiously optimistic in my thoughts and don't think there will be a speedy recovery. Most companies will take a wait and see approach. If there is a trend towards a sustained and continuous improvement month over month, at that point will companies feel more comfortable and begin hiring, until then I see hiring continuing to lag behind.
What is the secret of your success? What personal strategies have worked best for you?
With each step in my development I realized that I needed to have a solid foundation of education, experience, skill, and support to help me develop further. Along the way I found that developing a team of smart and capable people is absolutely essential. It is vitally important to understand that no matter how smart or experienced any one is, they cannot make it alone. It is the effectiveness of the team that determines how successful anyone will be. as Also very important is our involvement in the community. Various sectors of our community rely on us in support of their needs. Taking a leadership role in a community activity is the area as business leaders that we excel at and can help make a huge difference.
What is the biggest mistake you ever made in business? How does it affect your thinking or actions today?
Earlier in my career I had always been in a hurry to prove myself and make it to the next big promotion. At times I thought I had what it took to perform at the highest levels. Until, on one occasion there was an opportunity for a higher level position, Business Unit Manager, that had all the responsibilities I was looking for. I went to my superior and told him I was ready for this responsibility and wanted a shot at it. He looked me square in the eye and said, "You really think you're ready for this?" So, I got my shot and failed in the first 60 days. Although that wasn't enough to take me out of the position it was an embarrassing and humbling experience. I was able to recover but only through the mentoring and tutoring by my superior. Since then I have been very careful in my endeavors and have counseled others not to be in a hurry to climb the ladder, if you are doing all the right things it will happen. It's great to have the responsibility and feel like you are contributing at a high level but take it slow and make sure you have the experience and skill to perform at the next level.
What does the future have in store for you and your company? What are your business plans?
The future for my business looks good. We have developed and implemented a Strategic Business Development process where we are capturing a significant amount of early development business from the aerospace engine OEM's and the aero structure primes. We are growing the composite portion of the business and we are looking at expanding the business base to capture a larger share of the business outside our current areas. We are heavily involved in the defense as well as civil aerospace business.
What advice do you have for business leaders today in your sector?
As we are in a service industry, customer service and satisfaction is absolutely crucial to your future growth and success. We must always be aware of our customer needs and be ready to support them. Additionally, the market is in a state of flux, be aware of where the industry is headed, try to be one step ahead, and that's not always easy.