Applying advanced engineering software to the testing and analysis of mechanical structures, 2008 Top Small Workplace ATA Engineering provides design solutions in the aerospace, biomedical, automotive and consumer products industries. It has been described by Project Engineer David Gregg as "a company of engineers for engineers."
Founded in 2000 and employee owned from the outset, the firm now has 86 associates and has been described as incomparably egalitarian. ATA has built trust, shared responsibility and woven pride of ownership into the very fabric of their organization. On top of this, employee development is central to their business model. This and the ability for associates at all levels to participate in cutting-edge research help to explain the firm's low average turnover of only 4 percent.
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The company was founded by a close-knit division of engineers at a larger organization who decided to set out on their own. "All 28 of the division's employees accepted an offer to join ATA," recalls ATA Chairman and General Manager Jeff Young, who had been with the parent company for 21 years. This group of problem solvers made it a point to establish principles of responsibility and shared ownership from the beginning, and benefited from having the foundations of this culture present in the parent company.
"After we spun off, it was obvious that we were now in control and had both the responsibility and authority to fix anything that was broken," recounts Young.
He recalls discovering some operational challenges in the early days. "On the negative side, there was a natural tendency to feel powerless and blame our parent company for any problems or issues that arose," he says. Also, when they got started, they assumed that decisions would be made very quickly due to their relatively small size and desire to be nimble.
However, Young admits it takes time to develop a consensus and that process is particularly important in an employee-owned company. In order to maximize the broad benefits of ownership, Young and his team knew that individual employee-owners must be empowered to participate in the decision-making process, remaining updated and educated.
"This creates a very strong, well-informed team that can form the foundation for future company growth," he says. "And the additional time invested at the beginning of the consensus decision-making process pays off during implementation since the team is more likely to understand and support the decision."
With 22 of the original 28 employee-owners still at ATA, the core of the organization remains a highly dedicated team of brilliant minds intent on bringing everyone in the company to the table.
"It doesn't take very long to realize that the company is run like a well-oiled machine," says Project Engineer Keith van der Walde, referencing both the projects they tackle and the operational structure of the company itself.
Receptionist Sherrill Rivera says that all employees have a stake in the work they do, and that this approach really makes a difference. "We are very conscious of being successful," she says. "We are the captains of our own ship."
Engineers are known for exploring the inner workings of almost everything they encounter, but the drive to tinker with a business so actively is indeed a rare trait among professionals in the field. "Business problems tend to be more nebulous," explains Young, "and the solutions less black and white compared to most engineering problems."
Yet the company still insists on making every large decision by consensus. "From day one," says van der Walde, "you feel supported and that you can absolutely make a difference."
"I think ATA does have a reputation for being 'different,'" says Senior Project Engineer Matt Whitney. A key point of difference is their interview process, which involves sit-downs with the president and new engineers alike, with evaluations distributed to everyone involved to review and vote on. This means that every employee at ATA must not only be an excellent engineer, but an excellent communicator as well.
"There is not a lot of looking over the shoulder," says Dave Hunt, ATA's director of business development. "We work with an eye to meeting commitments, to getting things done on time."
He argues that while employee benefits are sizable at ATA, these are peripheral. "It should be a great place to work because of the culture of the place." To this end, maintaining a friendly, flexible work environment is just as important as opening up the books.
"We hire many associates straight out of college and must maintain a learning culture in order to thrive," Young says. Even relatively junior employees could be managing a project in which they are directing supervisors, explains Whitney.
"There is definitely a sense of equality and respect among our employees," he adds. "This positive nature really sets ATA apart."
With the economy currently in turmoil, core principles at many companies are being tested. So how is ATA handling the storm?
Young says the firm tends to deemphasize traditional organizational boundaries, which has enabled it to react more quickly to a changing business environment. When they are low on customer-funded project work, for instance, engineers can help with sales and train newer staff.
"I feel ATA is in a good position," Whitney says. "It is to our benefit to have employees who are owners, because they think like owners. Employees have the mindset to look out for the company as a whole. This means everyone is on the same team and sharing similar goals. We share in prosperous times and band together in challenging times."
Company: ATA Engineering, Inc.
Web site: www.ata-engineering.com
Industry: Consulting
Location: San Diego, CA
Number of Employees: 86
Sales: $16.3 million
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