AF ELS 18C Pre-Reading

Maurice Gagnon, Chair of Board

Company’s New Direction The market forced us. We had no choice. But we should be doing better. We’ve got good people, great people. Dedicated. Smart. And second-to-none technology. We should be a market leader. Consultants Are you going to be able to help us? A few years ago we spent six figures to have someone come in to tell us time on our own watch. We need more action and fewer reports. Company History When I founded the company we were a small electronics assembly operation, 5, 6 employees. I hired Brian for his technical know-how and now we’re global. There are lots who would like to have our problems. The Solution We should’ve created a commercial products division years ago. So let’s do it now, do it right, and see it as an investment. With two divisions – commercial, military – they could each have their own autonomy and work to be leaders in their own market. Your Role I’ve been watching from the sidelines since I was President and CEO. I was content to do that as long as Brian was growing the business. But lately …? Obstacles to Change Brian has to deal with the unions. I’m glad it’s him and not me. Rob Brown is a real thorn in our side. The unions create a lot of noise anytime we have to make a change. Give me a secure job but please don’t make me change.

Management Team To say I’m a bit worried would be a big understatement. We’re not there. The management team, it’s not, not gelling. Frankly? I’m a bit disappointed in how Brian is handling things and so the team wanders. Not focused like they should be. Well not focused the way I think they should be. Maybe I should take a more active role in the day-to-day running of the company. The Problem Credit where credit is due. The company has grown since Brian took over the presidency. We’ve had great prosperity. But I’m afraid it has left us soft and so when changes need to be made we can’t or won’t do them. Probably a bit of both. We’ve got good talent here. He should be pushing them more, expect more. You expect more, you get more. And on his cost containment initiatives … I’m there. I think it’s the right thing to do.

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