|| Print ||
|Articles - February 2010|
|Thursday, January 21, 2010|
Everyone has a different memory of that first terrible recognition that the economy was in serious trouble. For Convergence Networks CEO David Murray, the realization came early, and it didn’t feel good.
“We saw it coming in November of 2007,” says Murray. “We could see people pulling back from IT spending and new technology. We had to do something.”
At risk was the future of a growing information network support company that provides outsourced IT for customers ranging from the Oregon Food Bank to Hertz Rent-a-Car. Murray, who has been CEO for nearly three years, saw that all of the gains the company had made since starting up in 2000 could be wiped out. The first thing he did was to organize a two-day, off-site retreat for six members of the management team at a conference room at the World Trade Center. The next thing he did was to bring the outline of a plan back to headquarters in Milwaukie and present it at a company-wide meeting. “It was a nervous time,” he recalls. “Nobody’s job was safe. I could tell people were thinking, ‘Should I really trust these guys?’ But I gave them the whole story and told them we wanted to hear their ideas.”
Between the management retreat and the staff meeting, ideas for saving money and improving efficiency began flowing. The ideas led to changes, and before long Murray and his team had built a comprehensive strategy for withstanding the downturn by honing the operation while improving customer service.
One easy decision was to start shopping for a better lease. The business parks of Clackamas County had been overbuilt and Murray could see that landlords would have trouble filling their spaces if the economy took the turn for the worse that he was anticipating. The company ended up saving 50% on rent for a new space less than a mile down the street from the old location. Moving costs were minimal.
Another idea was more structural. It involved setting up service teams of four to six people, organized by specialties and geographies. Each team received a private phone number and a block of direct inward dialing numbers. This enabled employees to get to know customers by name and build a reputation for prompt, consistent human service. Customers always spoke to the same team and they never ended up in phone-tree hell. That brought positive reviews and customer referrals, Murray says.
Under the category of “techy geeky stuff,” in Murray’s words, was an initiative to develop a centralized network operation center to respond to early warnings before they became expensive problems. Early detection of problems with servers and hard drives prevented more than a hundred hard drive crashes for Convergence customers this year, Murray says.
The most unorthodox initiative Murray and his team pursued involved cracking down on their worst customers. Every service business has to deal with customers who demand more time and attention than they are worth in revenues. This can be particularly true in IT, where some companies lack basic skills and infrastructure to the point they are very difficult to work with. “We can’t make any money with customers when we’re on the phone all day babysitting them,” says Murray. “The customers who didn’t return our calls, or abused our guys, they just took a lot of time and work.”
Murray and his team came up with a list of the customers making the most noise for the least amount of business and then started going out to meet with them to discuss the problem directly. He says most customers “worked with us and made the changes that needed to be made.” The few who didn’t are not missed.
The results? After two years of improving operations, honing the company’s focus and, yes, firing the worst customers, Murray is confident that Convergence will grow steadily into the future.
He expects gross revenues to grow from about $3.7 million in 2009 to about $4.2 million in 2010, while expanding from 32 employees to 35. He doubts the company would be in such a stable position if the management team hadn’t recognized the problem early and put out a staffwide call for ideas. The transition took time and hard work, but Murray is pleased with the results.
“2009 actually ended up being one of our most profitable years,” he says. “We’re not going to win any awards for revenue growth but if you look at the bottom line we’ll come out right near the top of the list.”
Thursday, January 23, 2014
BY BRANDON SAWYER
In this age of jobless recovery, workers have increasingly turned to part-time work in lieu of a full-time job, often cobbling together two or more jobs in order to make ends meet.
Tuesday, February 25, 2014
In this issue, we celebrate our 21st annual 100 Best Companies to Work For in Oregon project.
Tuesday, February 25, 2014
BY SOPHIA BENNETT
The coastal town of Coos Bay appears poised to land every economic development director’s dream: a single employer that will bring hundreds of family-wage jobs and millions in tax revenue.
Tuesday, January 21, 2014
Hood River company MTMCare manages medications for eligible Medicare clients.
Tuesday, March 04, 2014
BY DEBRA RINGOLD | GUEST CONTRIBUTOR
How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?
Monday, February 03, 2014
BY ROBERT SHLACHTER AND MARK FRIEL | OB GUEST CONTRIBUTORS
Alternative methods of dispute resolution have the potential to lower costs, increase efficiency and provide greater control over process. The key is to know which ones to use, and how to use them in a way that accomplishes those objectives.
Tuesday, February 25, 2014
BY BRANDON SAWYER
A conversation about the event-planning industry with sales directors from McMenamins and the Portland Art Museum.
|The more they change, the more they stay the same|
|The 2014 List: The Top 33 Large Companies to Work, For in Oregon|
|The 2014 List: The Top 34 Medium Companies to Work, For in Oregon|
|The 2014 List: The Top 33 Small Companies to Work, For in Oregon|
|The future of money|
|Cancer to become No. 1 killer in U.S.|
|Bitcoin firm wins brief U.S. bankruptcy protection|
|Rival banana firms to merge|
|Blood test predicts Alzheimer's disease|
|Cerberus Capital to buy Safeway|
|U.S. adds 175,000 jobs|
|Bitcoin creator revealed|
Living in the beautiful Pacific Northwest means enjoying our wonderful surroundings, while remaining aware of the multiple types of natural disaster threats that we face: winter storms, windstorms, floods, landslides, earthquakes, volcanoes and tsunamis.“
Oregon State University's hospitality degree program invests in next-generation leaders.
Allowing individuals to access their own healthcare options has created more difficulty instead of making things easier. There are so many examples that illustrate why agents are more important than ever in helping businesses and individuals determine the healthcare coverage that best fits their need.
Barran Liebman is pleased to welcome Tyler Volm and Damien Munsinger as Associate Attorneys. Both Tyler and Damien represent employers and management in employment law litigation, and provide advice on a full range of employment law matters.
The 2014 World Trademark Review 1000 (“WTR”) recently named Lane Powell as one of the top trademark law firms in Oregon and Washington, and Lane Powell attorneys Kenneth R. Davis II, Parna A. Mehrbani, Frances M. Jagla and Paul D. Swanson as top individuals in the practice.
Capital Pacific Bank, a Portland-based community bank serving businesses, professionals and nonprofit organizations, today announced that it has earned recognition as a Certified B Corporation by B Lab, a nonprofit organization dedicated to building a community of socially responsible businesses. The bank is one of six financial institutions across the country to achieve B Corp status.