“Five Powerful Strategies to Retain Top Notch Technical Talent” Tamsin Jolley, President of Decagon Devices Jeff Young, Chair & General Manager, ATA Engineering.

““Five Powerful Strategies to Retain Top Five Powerful Strategies to Retain Top Notch Technical Talent”Notch Technical Talent”

Tamsin Jolley, President of Decagon DevicesTamsin Jolley, President of Decagon DevicesJeff Young, Chair & General Manager, ATA EngineeringJeff Young, Chair & General Manager, ATA Engineering

Moderated by: Moderated by: Diane Stoneman, Director of Consulting and Training,Diane Stoneman, Director of Consulting and Training,Winning WorkplacesWinning Workplaces

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ATA EngineeringDecagon DevicesIntegrated Project Management (IPM)JA Frate Jackson's HardwareJump Associates King Arthur Flour Company Landscape FormsLundberg Family FarmsNew Belgium BrewingPhenomenexRainforest AllianceResource InteractiveThe Paducah Bank & Trust The Redwoods Group

Average 42 years in business

Grow average rate of 23% over last 2 years

Tenure of the CEOs average 17 years

Founders still involved in 50% businesses

Winning firms focus on sustainabilityWinning firms focus on sustainability

Growth is a conscious choiceGrowth is a conscious choice

“While we could easily grow faster we believe in the long run we would do irreparable harm if we stumble in our hiring and training process.”

ATA Engineering

Employee development is key to Employee development is key to consistent executionconsistent execution

Invest to build competent workforce ( (tuition programs average $3500/yr)

Hire for “attitude” and “fit” for culture

Grow leaders from within

Encourage employees to grow personally & professionally

Mix of structured learning & “learning by doing”

Our Agenda TodayOur Agenda Today

Perspectives of two engineering firmsPerspectives of two engineering firms

Top strategies to attract / retain talentTop strategies to attract / retain talent

Impact on business and workforceImpact on business and workforce

Lessons learnedLessons learned

Questions from audienceQuestions from audience

Featured PresentersFeatured Presenters

Jeff YoungChair & General Mgr.

ATA EngineeringSan Diego, CA

Tamsin JolleyPresident

Decagon DevicesPullman, WA

Founded 1983Founded 1983

77 Employees77 Employees

FY2008 Sales $9.75MFY2008 Sales $9.75M

Develop, manufacture & market scientific instrumentation for environmental Develop, manufacture & market scientific instrumentation for environmental research and product quality testingresearch and product quality testing

Decagon MottoDecagon Motto

““Think like scientists, Think like scientists,

work like farmers, work like farmers,

dream like children.”dream like children.”

What the Jobs look likeWhat the Jobs look like

It is not just about the work!It is not just about the work!– Flexible timeFlexible time– Support of personal goals Support of personal goals – MentoringMentoring

#1. Focus on Individuals#1. Focus on Individuals

CommunicationCommunication

Open Book ManagementOpen Book Management

Profit SharingProfit Sharing

Lunch MeetingsLunch Meetings

#2. Employee have stake in the outcome #2. Employee have stake in the outcome

#3 Creativity#3 Creativity

Search for EmployeesSearch for Employees– Interns & Part-time work on projectsInterns & Part-time work on projects

Continually fostered in workplaceContinually fostered in workplace

#3. Creativity and Innovation Rules#3. Creativity and Innovation Rules

#4 Governing Values#4 Governing Values

Perpetuating legacyPerpetuating legacy

Education (informal learning)Education (informal learning)

#4. Explicit Governing Values#4. Explicit Governing Values

#5 Great Work Culture#5 Great Work Culture

SoccerSoccer

Slot Car RacingSlot Car Racing

Wellness ProgramWellness Program

#5. Great Work Culture#5. Great Work Culture

Young company with tenured employees Young company with tenured employees

Impressive stream of new productsImpressive stream of new products

ROI Impact on Business ROI Impact on Business

“We don’t try to be something we are not.In everything we do we consider our culture.”

Who Is ATA Engineering, Inc.?Who Is ATA Engineering, Inc.?

Formed as employee-owned corp. 4/3/2000 Formed as employee-owned corp. 4/3/2000

Spin-off from a public engineering software co.Spin-off from a public engineering software co.

Mission: To be the leading provider of solutions for analysis-driven and test-driven design of mechanical, electro-

mechanical and aerospace products

ATA Engineering, Inc.ATA Engineering, Inc.

Professional engineers in 7 locationsProfessional engineers in 7 locations

600 cumulative years of relevant experience600 cumulative years of relevant experience

Full-time staff of 87, 75 degreed engineersFull-time staff of 87, 75 degreed engineers– 10 B.S. degrees10 B.S. degrees– 46 M.S. degrees46 M.S. degrees– 19 Ph.D. degrees19 Ph.D. degrees– 5 registered Prof. Engineers5 registered Prof. Engineers– 8 -10 co-op and intern students8 -10 co-op and intern students

Graduates from MIT, Stanford, Purdue, Cal Graduates from MIT, Stanford, Purdue, Cal Tech, UCSD, UCLA, Wisconsin, Texas and Tech, UCSD, UCLA, Wisconsin, Texas and other great schoolsother great schools

Who do we hire? Who do we hire?

Designing and Engineering Cool StuffDesigning and Engineering Cool Stuff

Shortfall in staffShortfall in staff

Lack particular technical expertise Lack particular technical expertise

Count on ATA having Count on ATA having Top Notch Top Notch Technical TalentTechnical Talent

Why our Talented Why our Talented and and Demanding Demanding

Customers Need usCustomers Need us

1.1. Hire the best possible peopleHire the best possible people

2.2. Offer Employee OwnershipOffer Employee Ownership

3.3. Train, coach, mentorTrain, coach, mentor

4.4. Grant responsibility & authority Grant responsibility & authority

5.5. Create an environment of TrustCreate an environment of Trust

Caveat: Every company is different and some ATA practices may not work for you

Caveat: Every company is different and some ATA practices may not work for you

Top StrategiesTop Strategies

1) Hire the Best People1) Hire the Best People

Hire staff “Too Good To Pass Up” Hire staff “Too Good To Pass Up”

Hire top grads from the best universitiesHire top grads from the best universities

Assess recruits interest in Employee OwnershipAssess recruits interest in Employee Ownership

Process is comprehensive and highly selectiveProcess is comprehensive and highly selective

Candidates accept offers for many reasonsCandidates accept offers for many reasons

Accelerate recruiting when business is slow!Accelerate recruiting when business is slow!

##1. Hiring the best1. Hiring the best

Goal: 100% employee ownershipGoal: 100% employee ownership

Outstanding professionals hired & Outstanding professionals hired & trained by management teamtrained by management team

Team environment through shared Team environment through shared ownershipownership

Company where we love to workCompany where we love to work

Control our own destinyControl our own destiny

##2. Offer Real Ownership2. Offer Real Ownership

HR Surveys: learning HR Surveys: learning key to retentionkey to retention

ATA UniversityATA University

Training is broad & Training is broad & continuouscontinuous

##3. Train and Develop3. Train and Develop

Delegates responsibility & authority Delegates responsibility & authority to Project Teamsto Project Teams

Project teams “delight” customers Project teams “delight” customers

Project Mgr complete responsibility Project Mgr complete responsibility and authority (Quality, Schedule, and authority (Quality, Schedule, and Budget)and Budget)

Jr. engineers as Project ManagersJr. engineers as Project Managers

Quality

TIM

E

Functionality

CO

ST

##4. Grant Responsibility 4. Grant Responsibility andand Authority Authority

Trust staff to treat company resources as their ownTrust staff to treat company resources as their own

Focus on overall ATA performanceFocus on overall ATA performance

Less focus on individual achievementLess focus on individual achievement

Egalitarian culture & flat Egalitarian culture & flat

organization chartorganization chart

No “Executives” at ATANo “Executives” at ATA– No Executive perksNo Executive perks– No Executive Compensation SystemNo Executive Compensation System– Same pay scale for Mgt and engineering staffSame pay scale for Mgt and engineering staff– Promotes teamwork and trustPromotes teamwork and trust

#5. Create an Environment of Trust #5. Create an Environment of Trust

5) Create Environment of Trust 5) Create Environment of Trust

Consensus decision-making: challenging but pays offConsensus decision-making: challenging but pays off

Post spin-off assumption of super-fast decision makingPost spin-off assumption of super-fast decision making

Individual employee-owners empowered to participateIndividual employee-owners empowered to participate

The investment pays off:The investment pays off:

– Employee-owners educatedEmployee-owners educated– Positioned as future leadersPositioned as future leaders– Employee-owners “buy-in” to the decisionEmployee-owners “buy-in” to the decision– Implementation is smoother and fasterImplementation is smoother and faster

#5. And…More Trust #5. And…More Trust

ATA is a fun place to work! People are ATA is a fun place to work! People are enthused & committedenthused & committed

Turnover of 1-2%Turnover of 1-2%

Strong financials=Strong financials=– Significant tax savingsSignificant tax savings– Profitable every yearProfitable every year– Return on revenue exceeds industry Return on revenue exceeds industry

3 of last 4 years3 of last 4 years– Revenue exceeds plan last 3 of 4 yrsRevenue exceeds plan last 3 of 4 yrs

ROI Impact on BusinessROI Impact on Business

Questions?Questions?

www.decagon.com www.ata-e.comwww.ata-e.com

Apr 15 Apr 15 Exiting Gracefully – Options for Transitioning OwnershipExiting Gracefully – Options for Transitioning Ownership Corey Rosen, Executive Director & Co-founder, Corey Rosen, Executive Director & Co-founder, NCEONCEO

May 27May 27 Two Perspectives on SuccessionTwo Perspectives on Succession Paul Silvis, Founder, Paul Silvis, Founder, Restek CorpRestek Corp; Michael Foley, CEO,; Michael Foley, CEO, Reflexite CorpReflexite Corp

June 17 June 17 Radio Flyer- The Story of Transforming an American IconRadio Flyer- The Story of Transforming an American Icon Robert F. Pasin, President and CEO, Robert F. Pasin, President and CEO, Radio FlyerRadio Flyer

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