engineering management


showing up happy

How can you keep your employees content and productive? Some successful managers share their tips.

By Jean Thilmany, Supplement Editor

What makes one engineering company a great place to work, but another only a passable way to pull in a paycheck?

Surprisingly, the answer is not all that intangible; and it doesn't much depend on the individual employee. Yes, everyone's work needs vary; yes, everyone has a different reason for coming to work in the morning. But ultimately employees universally want to value their jobs and to feel valued. If that bottom-line sense of worth is in place, you can count on happy, productive engineers even as they rush like mad to meet a tight project deadline or create a new technology. And that, of course, aids your bottom line.

Not surprisingly, it's the executives and managers who set the tone for the entire operation. By speaking to employers with happy hires, it's fairly easy to identify what their managers are doing right.

Robert Levering sought the opinions of workers at thousands of companies about what gets them jazzed for their jobs. Their musings became the backbone of his book, A Great Place to Work: What Makes Some Employers So Good—and Most So Bad (Random House Inc., 1988).

Workers across the board told Levering they want to be treated fairly and to have their work successes acknowledged by the boss. They want a fair share of company ownership and profits.

With that information, Levering profiled a composite outstanding employer. Great employers and great managers treat their employees fairly and make sure they enjoy their jobs. They give responsibility to the people who work for them, they recognize outstanding employees, they offer employees on-the-job and classroom training, encourage them to learn from their mistakes, and foster open communication.


A Non-Internet Startup Succeeds


None of this is news to Kent Schien. He's president and chief executive officer at Innoventor, a St. Louis-based engineering company that makes custom-designed process, control, test, and other equipment. It employs about 50 engineers. Before he founded the company in 1996, Schien worked as an engineer and project manager at McDonnell Douglas, followed by a four-year stint managing a small engineering and manufacturing company.

"Those were great places to work, but after those years, I said to myself, 'There might be a better way, or what I perceive to be a better way, to run a company,' " he said. "I felt engineering companies could treat their engineers a little bit differently than they'd traditionally done in the past."

Innoventor operates with the open-book management policy espoused by Jack Stack, author of The Great Game of Business (Currency, 1994).

"Everyone knows where we stand financially, so everyone understands where they stand in terms of the general health of the company," Schien said. "That's important because they can make decisions to help the company be even more viable."

National Instruments has an organized basketball team and an onsite gym.

Innoventor took root amid what will certainly be seen in retrospect as a unique chapter in U.S. business history: the Internet boom. Schien chose to take a page from other young, admittedly sexier, start-ups of the 1990s. His engineers may not relax in a huge, dramatically outfitted game room, but they benefit from policies that encourage flexible time, a focus on family, and a community involvement that might include volunteering, running a road race to raise money for charity, or getting involved in church activities.

"We've established a policy that if you're keeping your customers happy, it doesn't matter where you work, at home or in the office," Schien said.

One late summer day the engineering company's main phone line was being answered by a series of engineers and other Innoventor employees. They'd volunteered for the job because the woman who usually fields calls stayed home with her sick child. Schien had encouraged her to take the day off.

Making sure an employee thrives in such an environment starts with the hiring process, when interviewers give potential employees tests designed to determine their personality types. Candidates get to look at the tests to see whether they agree with how they've been pegged. If they do, results are used as a management tool.

By studying how their employees do their jobs, his eight managers can build teams based on personality. That way, one person's strength can balance another's weakness, and vice versa. Schien said weakness is negated within such a purpose-built team, while strengths shine.


Just One of the Guys


If an engineering company's environment can be traced to its leadership, then the folks at National Instruments know exactly where the work environment they prize originates: the man they affectionately call Dr. T.

Dr. T., or James Truchard, founded the virtual instrumentation company 27 years ago with Jeff Kodosky. They were both researchers in the Applied Research Laboratories of the University of Texas at Austin and decided from the get-go to draw up a 100-year plan for their company. They also wanted to take into the business world some important lessons learned in academia, like relying on interns to do important jobs.

Because their plan called for 20 to 40 percent growth each year—which continues—the founders purchased a large campus in Austin, Texas, where 2,000 employees now work. An additional 1,200 people work at small branch offices worldwide.

Today, everyone from vice presidents to the new intern refers to the president, chief executive officer, and co-founder as Dr. T. It would be almost sacrilegious to call him anything else.

Todd Walter tells the story of the first time he met Dr. T. National Instruments had flown him and a passel of other young engineers to Austin for a round of interviews. During the Thursday night meet-and-greet, Walter chatted about engineering issues with the guy beside him, a man casually dressed in jeans.

"Then they said, 'It's time to meet Dr. T, the company founder,' and sure enough this guy I've been sitting next to gets up to talk.

"The first time I met the vice president of research and development, I met him in the elevator and he said, 'I'm in R&D,' " Walter added. "I later figured out he was research and development."

For the past five years National Instruments has been named one of Fortune magazine's 100 best companies to work for. Now, a lot of people want to know the National Instruments secret, said Mark Finger, vice president of human resources. The secret is not in the salary, he said.

You have to pay people what they're worth, of course. But it may come as a surprise to some that pay is not the biggest part of the contented-employee equation, Finger said.

As at Innoventor, upper management clues in employees to National Instruments' financial standing. During the high-technology downturn in the 1990s, National Instruments didn't lay off people. Instead, it brought more engineers than ever on board. That move might have raised anxiety levels if managers hadn't talked openly about their decision to hold off on raises and funnel the cost savings to new employee salaries, Finger said.

"We knew additional engineers would get more products out more quickly which, for the long term, would be for the greater good of NI," he said. "We hire smart people. If you explain stuff to them and get them committed, 95 percent of them are OK with it."

To find those smart people, National Instruments takes advantage of a well-established internship program. Last summer, the company hired 130 interns. A large number of them go on to work for National Instruments after college, which is the company plan. National Instruments has vetted its interns who, in turn, have vetted their future employer.

Company managers recognize that a good engineer wants to be challenged. That's why interns aren't restricted to filing papers. They immediately have a hand in company projects and act as full-time employees, said Ben Weatherman, a vision software developer who was a summer 2000 intern and came back for two more stints before beginning his full-time employment.

"They give you as much as you can handle and sometimes more than you think you can handle," Weatherman said. "As an intern, you're expected to solve problems and you can't just go to your manager and ask, 'How do you do this?' "

Interns choose to stay on at National Instruments, knowing exactly what they're getting themselves into. They know they'll like the job, which makes it more likely they'll sign on for the long haul, Finger said.

"You can't hire the kind of talent we hire and then lose them two years later, or you've wasted a lot of time and effort," he added.
About 85 percent of new hires come straight from their college campuses, and about 25 percent of them have worked as interns. Recruiters make a special effort to woo top graduates from leading engineering schools.

"We hire really, really bright people who would be successful anywhere they went," Walter said. "They stay because they have instant ownership in the company. When I was here two months, I was already helping recruit new hires."

Because the average age of an employee is about 32 and because so many come to Austin fresh from college and may not know a soul, the company caters to its young, recently relocated hires.

"You're coming fresh out of school and you're still looking for fun," Weatherman said. "It's hard work in the day, and at night we get together and maybe go catch a football game together."

The company boasts organized football and basketball teams, as well as an onsite gym.


Moving On Up


National Instruments is quick to assign employees responsibility. Managers know employees are happier when they're taking on successively more responsibility, so they're quick to assign those roles. Walter, a four-year NI employee, is now industrial control group manager.

In that capacity, he works mainly to remove day-to-day roadblocks that could keep his engineers from working as quickly and efficiently as they might like. Is it working? Weatherman, who reports to Walter, says yes.

"It's not as though I knock on his door and walk into his office," he said. "I mean that in a good way. I respect him, but it's not like I'm afraid to go talk to him about a question I have. And that's indicative of all managers in the company."

National Instruments and Innoventor may be getting a lot of things right when it comes to keeping their employees happy, productive, and employed long-term. But are they doing everything right? No. That's impossible, Schien said. Managers and executives, like everyone else, can only learn how to steer their companies by making mistakes and changing course when it's clear they're not on the right path.

"Your ability to be an expert is the summation of all your experiences and that's a summation of most of your failures, because that's how you learn," Schien said.



Return to Index