Any enlightened business understands that teamwork and cooperation are essential components to building a successful company. Few workplaces understand this more than Advanced Circuits, an Aurora, Col.-based manufacturer of custom printed circuit boards (PCB), where teamwork is vital to the company's very existence.
"There is a realization that no department or process is an ivory tower that stands alone," says Ron Huston, owner and CEO. "Production depends on sales to book new business, and sales depend on production to build the product. Neither can do their jobs effectively without the other."
In fact, the nearly 200 employees at Advanced Circuits have learned to work so efficiently together that the company manages to boast a practically unheard of turnaround time on its circuit boards. While competitors are taking three to four days to deliver a quote, Advanced Circuits has perfected a system by which they receive an order, build the product, and have it delivered to customers in less than a week.
"That requires a ton of teamwork," says Denise Wood, chief marketing officer. "We run three shifts, work 24 hours, 6 days a week. It's essential that everyone understands everything.
"Teamwork is a critical component of everything we do. People don't even think about it because it's in the fabric of our company."
Advanced Circuits has found its niche in "lower quantity and fast turn" without sacrificing quality, a unique concept for any industry, but particularly so in the manufacturing business. To maintain the high standards that customers have come to expect, employees are constantly challenged and encouraged to think innovatively, whether it's developing more efficient product designs or finding a way to trim down paperwork.
The company also enthusiastically invests in ongoing employee learning and development. This year they allocated $200,000 towards the training budget.
"We want the best employees here, and the only way to do that is to give your employees the tools to be the best," says Julie Olson, human resources manager.
All employees receive certification training and are required to attend an additional two hours minimum of training each month. Advanced Circuits hires an instructor to teach a wide range of in-house seminars ranging from sexual harassment to management skills, but workers are also encouraged to seek outside programs. They can additionally choose to spend their two hours cross-training in another department. In doing so, they help maintain a checks and balances system, which the company has effectively implemented to maintain a low percentage of error in their circuit boards.
To keep workers motivated, Huston frequently sets company "stretch goals" and offers generous bonuses when those goals are reached. The rewards vary based on the level of challenge.
During the 2001 recession, Huston decided to initiate a 5 percent monthly profit-sharing program. He asked the company to give the program a three-month trial period; if it did not work out, he would discontinue it and instead give everyone a retroactive 2 percent raise. Since that time, the staff has hit its profit-sharing numbers every month for three consecutive years, and employees have gained a sense of accountability for the company's success. Needless to say, they never went back.
"Ron sets goals that are not easily achieved," says Linda Lorberau, a regional sales manager, "but the loyalty around here is such that when he sets a goal, everyone tries to help achieve it."
In 2003, Huston set a stretch goal of reaching $27.2 million in annual sales, which the company exceeded by half a million. As a result, Huston treated his employees and their families to an all-expenses-paid weekend in Las Vegas.
Though not all the perks are quite as extravagant, the company manages to find a variety of ways to continually recognize employees for their hard work, whether through monthly appreciation lunches, trips to Dave & Buster's, or barbecues cooked by senior management. One of the more unique programs was called "smash and crash," wherein the company purchased a junk car and allowed workers to smash it with a sledgehammer on each day they did not have any restarts.
Setting, maintaining, and achieving goals requires good communication among staff. All departments participate in daily team huddles to discuss weekly goals and current progress, recognize personal achievements, and introduce new ideas, which supervisors bring back to the weekly management meetings. A "Bulls Eye" bulletin board keeps everyone informed about the company's progress, and twice a year all employees take part in submitting anonymous surveys, which rate how well the company is performing and what changes, if any, should be made.
"I don't think there's any company out there that keeps its employees more informed of the company goals," Olson says. "We let everyone know that they're responsible for their goals, and tell them that if they do the best job they can, they will be rewarded."
Not surprisingly, Advanced Circuits sees a low voluntary turnover rate of about 6 percent, and the average employee tenure is six years.
"Happy, appreciated employees are successful, productive employees," Olson says. "It's not a monetary thing. You can do so many things to keep employees happy, and if they're good employees you want to keep them."
Despite the down economy, Advanced Circuits' annual sales have grown steadily at a rate of about 13 percent over the past four years, and the company has not had to implement any layoffs. In comparison, the industry has seen an average 25 percent decline in shipments, and the number of PCB businesses has decreased by nearly half, from 700 to about 400. While average industry net profits are between 4 to 8 percent, Advance Circuits regularly exceeds industry averages by 25 percent.
The foundation Advanced Circuit's worker-friendly policies, and subsequent successes, can be traced back to Huston and his golden rule of treating employees the way he would want to be treated and fostering a sense that no man is an island in his company.
"There's just a lot of camaraderie here," Lorbereau says. "We're a family. We're not just a group of people performing a job. We're a family and everyone genuinely cares about everyone else. That's just the tempo that Ron has set."
Company: Advanced Circuits
Web site: www.advancedcircuits.com
Industry: PCB Manufacturing
Location: Aurora, Col.
Employees: 197
Sales: App. $30 million
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