AD systems: Taking the Tactical Approach

Whether he's running his business or running an association, Utz Baldwin takes a very strategic approach.

Indeed, with 18-year-old Houston-based AD systems, Baldwin, president, applies many of the lessons and benchmark pieces of data he's learned at CEDIA.

Baldwin is the chairman of the association, and much of his experience with the organization has helped him to run his company's labor super-efficiently.

Baldwin recognizes that, in order to thrive, integrators need to create and hone operational processes.

Over the years, he has attempted to do exactly that in every area of the company, establishing key performance indicators in such areas as sales, installation, service and general operations. At the same time, he has set up a system that allows employees to grow and participate in decision-making and education.

Those deliberate plans have allowed the company to expand its offerings over the years to include multiple installation disciplines.

Just as importantly, the company has continued to place a premium on its labor, with a "fanatical consistency" program designed to address boosting billable hours and solving bottlenecks, whether they be during the design, project management or installation phase.

Those established operational efficiencies have allowed Baldwin to spend time away from the business and increase his volunteer commitment to CEDIA, culminating in his ascension to the position of chairman last year.

Not surprisingly, among his goals for CEDIA during his term is an increasing commitment to education and industry outreach.

Getting to 72% Billable Manhours

After years of experience in the retail world, and after having paid his dues as an installer, Baldwin started AD systems in 1991.

Baldwin reflects on that time, admitting that while he knew the technical side of the business very well, he lacked business management skills.

"It was not until I began working on the company, rather than in the company, that it became a viable solvent business," he says, adding that he found establishing company processes to be one of the key strategies of profitability.

Of course, those processes have to be measurable, which is why AD systems looks carefully at a few key performance indicators. These enable Baldwin to gauge profitability at a glance.

"Like a lot of companies, we look closely at labor efficiency, billable hours per day. If I know my average effective labor rate, then, at any given moment, I know my profitability," he says.