K-TECHnologies

Interim Management

> RESULTS

  • 290% increase in sales
  • Added several new key customers
  • Established product services roadmap
  • Defined guideline for sizing the facility to revenues
  • Established and filled key Business Development and Operations Management positions
  • Established new independent sales rep network

> COMPANY

K-TECHnologies, Inc. (K-TECH) is an OEM contract manufacturer that serves customers in the military, space, medical and industrial markets. Formed in 1997, K-TECH has been experiencing profitable growth at an average annual rate of over 66%. Business First, Western New York's weekly business journal, recently awarded K-TECH seventh place in its "2005 List of Fastest Growing Companies in Western New York." The company differentiates itself from other contract manufacturers by specializing in meeting the demanding 'high-reliability' workmanship and quality requirements of the military and medical markets. In addition to electronics manufacturing, K-TECH manufactures products incorporating mechanical, pneumatic, hydraulic, RF and electromechanical components. The products are highly customized and K-TECH often provides engineering design and product development services. Approximately 30 employees work in K-TECH's 5,400 square foot facility in Hamburg, NY.

> SITUATION

Through an annual strategic planning process, Jeff Kryszak, President and Founder of K-TECHnologies, had established a key business goal of quadrupling the size of the company by 2009. Already growing at a significant rate, Jeff was not satisfied that the company was prepared to maintain and manage that growth. K-TECH was reaching a point where it would have to implement new systems and apply new approaches to continue its growth. For example: the customer base had to be diversified to reduce business risk; new approaches to selling had to be identified and implemented; an individual to manage technical sales had to be hired; the quoting methodology had to be improved; and policies for managing customers more effectively had to be defined. Like many small companies, K-TECH had not yet developed the breadth and depth in its staff to attain and manage the targeted growth.

As a small, young company the difficulty was how to find and afford experienced staff to implement the growth plan. The challenge was two-fold. The first need was to fill in the current management skill gaps in order to meet immediate growth goals. The second need was to hire and train people with the potential to manage the company's next stage of size and complexity.

> SOLUTION

K-TECH had no one on staff who had managed a company of the targeted size, or had led a company through an accelerated growth curve. Jeff Kryszak, President, concluded that he needed to enlist senior executive management skills and experience. A financial analysis did not justify hiring a full-time senior executive. Hiring a full-time person also represented a serious long-term commitment.

Jeff's decision was to use consultants; but not in the traditional manner of defining a project and having them deliver a report. Instead, Jeff wanted to involve someone in the day-to-day operations so that the person was: 1) always up-to-date on the company activities; 2) able to help in identifying key issues; 3) able to improve the quality of decision making; and 4) integrated into the company to implement change.

Through a process of qualifying several consultants and addressing their fit with the K-TECH culture, Jeff narrowed the field. He selected a consultant from Insyte Consulting to lead the efforts to increase sales and to develop systems, policies and personnel to sustain K-TECH's growth.

As of October 2005, the Insyte consultant has been engaged for over two years. Through participation in the annual strategic planning process, the consultant identified several tasks with which to begin assisting. One of the initial activities was to create and define a new position for Business Develop-ment. This involved identifying, interviewing and recommending a candidate. Once hired, the Insyte consultant worked with the new Business Development specialist to develop a sales plan and begin implementing it. Accomplishments included: updating the company's literature, website and sales presentation; signing up independent manufacturers' representatives; and establishing a methodology for more accurate sales forecasting.

As part of coaching activities, the Insyte consultant participated in sales presentations to potential key customers. He also recommended changes to the accounting system in order to provide better cost information to increase quotation hit rates and to improve the accuracy of expense budgeting. Changes to the sales tracking system improved revenue forecasting and enhanced the effectiveness of sales activities. In addition, advice was given on strategies and tactics to reduce business risk and improve the outcome of negotiations with the customers. The Insyte consultant was also a primary contributor in the identification, interviewing and hiring of an Operations Manager and a Manufacturing Engineer.

Communication has been a critical element in managing the consulting relationship for minimum cost and maximum effectiveness. The president and the Insyte consultant are in regular contact to discuss where the consultant can best contribute. Regular contact via email and phone with key individuals in the company keeps the consultant continually up-to-date on activities and issues, and provides opportunities to make suggestions for improvement. As the need arises, the consultant is always 'up-to-speed' and can jump in to address a particular issue or project. The process is also an opportunity to coach individuals on improving their management skills.

The Insyte consultant continues to work closely with K-TECH to both build the foundation for managing growth, and to participate in activities to grow the company. His twenty-five plus years of business experience permits K-TECH to benefit from the knowledge of both his successes and his failures.


"Planning, preparing and controlling how we grow is crucial to maintaining superior customer satisfaction. By having someone with experience from Insyte Consulting integrate themselves into our business, we have been able to stay on track to meet, and often exceed our strategic goals. The process also helps to develop our internal team and operations to manage our future." - Jeff Kryszak, President, K-TECHnologies, Inc.