industrial needs include portable power and generator systems for shipyards, disaster relief, construction and maintenance, as well as utilities. This market grew because the industrial generator companies switched to CAM-type feeder cable. The typical industrial job is a 400 amp, 3-phase power distribution system. We maintain a stock of product for the industrial market because their needs demand a very quick turn-around. This market has doubled for Lex in the past two years. How did you break into the military market? Prior to 2000, the lead-time for mobile power distribution systems (and parts, if available at all) was quite long, since most of the systems’ components were made by the captive labor force of the federal prison system. (See the Winter 2009 issue of Protocol for the complete article.) But with the 2001 invasion of Afghanistan and 2003 invasion of Iraq, all that changed. The Gulf War required the US military to support tens of thousands of troops with portable power systems that could stand up to the rough use and harsh environments. We made an aggressive outbound effort to understand the US military market’s needs and requirements. Joe Birchak, our Senior VP of Military, diligently pursued every opportunity, met everyone to understand all the players, researched to do his homework, recruited a state agency to assist in properly positioning our products, mastered the language of the military contacts, and grew to comprehend how to do business with the US military through perseverance and hard work. The products used by the US military are similar to our industrial and entertainment products—but they have to meet more stringent environmental, electrical, and durability requirements. The systems we build for the US Marine Corp. have all gone through a battery of tests at their Aberdeen Labs that is far more extensive that anything you would see in commercial markets. Isn’t the military business a high risk? It is not high risk in terms of payment, as long as you don’t make a billing error. It can be risky in terms of the cyclical nature of the business. It is possible to gear up for a large program and have it end abruptly, leaving you stuck with that cost infrastructure. For us, the way to minimize that risk is to be involved in as many programs as possible. Was the rapid growth a challenge? Yes, absolutely. However, it is one that I would accept any time. The Breakthrough Strategies speak to how we dealt with the challenges (additional discussion to follow). How did you manage during this time of the company’s explosive growth? At about 2004 we reached $10 million in sales, but the growth was so intense that I couldn’t watch over everything myself! I could no longer control all aspects of the business—touch all the customers, watch all the orders, understand where the business was at any one time, have a handle on inventory—and I had to do something. Our military business was growing, but our entertainment and industrial markets had peaked. This all had an impact on our customer satisfaction. We relied on tribal knowledge. . . . the use of metrics was amazing—if you don’t measure it—you can’t improve it! I chose to join the Renaissance Peer Advisory Group in 2006. One of the fi rst things I did was implement their Executive Management System in 2007. This is a systematic management of operating departments with a focus on the use of metrics to measure everything. We implemented lean manufacturing processes and continuous improvement programs which had a great effect on our bottom line. We invested in a robust ERP (Enterprise Resource Planning) System that allowed us to keep track of inventory as well as understand and control our costs. Our communications improved company-wide through the use of RAPs (further description later in this article) and gave us somewhat of a handle on what was going on at all levels of the business. Their guidance on the use of metrics was amazing—if you don’t measure it—you can’t improve it! In many ways all these changes and new systems saved my business. What are some of the business systems you implemented within Lex Products that made the difference? The military business due to all the extensive testing and detailed manufacturing requirements and parts documentation prerequisites was extremely costly! Fortunately for Lex, by this time Mike Scala special rates on credit card acceptance www.plasa.org/join FALL 2011 27 PROTOCOL