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ON THE MOVE LARRY F. BROUSSARD, P.E. JOINS THE FENSTERMAKER ENGINEERING TEAM Larry F. Broussard, P.E., has joined the Fenstermaker Engineering team. Broussard is a registered engineer for the state of Louisiana, and has 34 years of engineering experience. He attended the University of Southwestern Louisiana in Lafayette, Louisiana, and earned his bachelor’s degree in civil engineering in 1984. In 1980, he earned an additional bachelor’s degree in microbiology.
Broussard previously worked as a public works city engineer with the Lafayette City- Parish Consolidated Government for 21 years. His skill set includes management of various roadway and drainage projects, an application of engineering knowledge to and familiarity with the methods and materials of utilities, streets, traffic, drainage facilities, and capital improvement programs. Lafayette Engineering Director, Dax Douet, stated, “Broussard brings to Fenstermaker years of experience in both the private and
public sector focusing his engineering career in design, policy development, floodplain management, and oversight. His knowledge will add to our firm’s engineering experience to ultimately enhance our quality and technical services to our client base.” Founded in 1950, Fenstermaker Engineering’s mission is to provide clients with high quality service by remaining in the forefront of technology, employing talented people, and providing a fulfilling work environment that encourages growth and prosperity.
GERRY SALONTAI, from page 9
success. In particular, companies that are employee-owned place less emphasis on their long-term ownership model to ensure it is well-funded, sustainable, relevant, and doesn’t need modification to turn over ownership for generations to come. Essentially, the leaders are less vigilant in retaining some of that precious profit to build a strong capital structure that strengthens the company today while investing in their future. “Bigger is not necessarily better. Better is better. And if you focus on better you will get bigger. Executives and board members have the primary responsibility to all stakeholders in a company to ensure long- term sustainability by making decisions that don’t put the company in jeopardy at any given time.” It is difficult to excel in every single aspect of this business at every point in time. But the companies that “win” over the long-term endeavor to excel in everything they do. We find that undisciplined growth, a lack of focus on people, low financial performance, and a weak capital structure combined with a “triggering” event is a common thread in the demise of nearly all the great “brand name” companies. Those triggering events come in all shapes and include, but are not limited to, economic downturns, very large claims, and acquisitions gone bad. Employee-owned companies are particularly vulnerable with this triggering event as the poor financial performance obviously results in a dip in shareholder value which in turn causes a “run on the bank” with more departing shareholders than buyers – a situation that cannot be weathered given the financial performance and weak capital structure. The lesson in all this is that bigger is not necessarily better. Better is better. And if you focus on better you will get bigger. Executives and board members have the primary responsibility to all stakeholders in a company to ensure long-term sustainability by making decisions that don’t put the company in jeopardy at any given time. After all, the mighty can fall. Don’t let this be your company. GERRY SALONTAI is the founder of Salontai Consulting Group, LLC. Contact him at gerry@salontai.com.
2)The loss of purpose and a focus on people. Everyone says, “People are our most important asset,” but in many firms we found that these words weren’t put into action. Leaders forget that an engaged staff makes a difference, an essential ingredi- ent to provide the company with a competitive edge over the long haul, not factory workers on an assembly line. And they take an economic-driven approach where short-term results drive the decision process rather than a long-term approach. Thus, investments in people are the first to get cut. 3)Falling prey to complexity. Many that struggle lose sight that it’s crucial to keep the company client-centered while empowering your people to deliver what you do best. Rather, these companies encumber or bog down their people with needless control and complexity that frustrates both them and your clients. As they grow, leaders believe the solution to create consistency, improve quality, and improve commu- nication, is to add layers of supervision, initiate policies and processes, and hold countless meetings which instead reduce productivity. 4)Financial strength is paramount. Meeting goals all along the way and timely decision-making focused on financial suc- cess in all categories is essential for sustainability of compa- nies. Yet we find that many accept upper single-digit to below median double-digit profits in good economic times, and low single-digit to even losses in bad years. And their cash and balance sheet management is less than prudent, taking on undue risk by assuming too much debt and weakening their capital structure in their quest to grow the company. The lead- ers seem comfortable pushing the envelope with leverage and get lured into a sense that a bigger organization can endure rough times better. “We discovered a handful of key success factors for long-term company sustainability and more than a dozen success drivers. Whether a firm succeeds or fails, our study found that everything revolves around strategy, a focus on people, and healthy internal fundamentals.” 5)Not investing in the future. Because the profit levels are lower, companies in decline focus on short-term results for survivability and can’t readily invest in new markets, equip- ment, tools, and in their people – key elements for future
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THE ZWEIG LETTER February 11, 2019, ISSUE 1283
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