Compass Precision Reaches Milestone With R&D Machine
Change can be painful, but it is often good too. That’s been the general experience at R&D Machine the past two years.
On April 26, Compass Precision celebrated the two-year anniversary of its purchase of R&D Machine.
Since Compass acquired the operating company, R&D has added new key members of management and experienced both individual and company growth. Maybe most importantly, the overwhelming feeling among the remaining employees is that Compass has delivered on its promises from two years ago.
“They laid everything out of what their vision was. They wanted to see growth,” said Mill Department Manager Chris Staley in regards to the Compass acquisition of R&D. “Compass and R&D together are growing. We’re growing in employee status, we’re growing in the intake of jobs – new vendors, new companies. It’s been a constant growth.
“And so far, they have done everything that they laid out when they first purchased the company.”
Compass typically keeps previous ownership involved whenever it does an acquisition. But in R&D’s case, that wasn’t possible because the company’s previous owners, Hilary and Carl Whitley, were selling in order to retire.
Therefore, one of the first things Compass did was hire Justin Kovscek as R&D’s new general manager. R&D then added Kat Pennison as operations manager.
Behind a new management foundation, Compass could begin executing its plan for R&D. With some employees, though, Compass faced a potentially tall task getting them to “buy in.”
“[It was] kind of like hearing your mom and dad were getting divorced,” QC Inspector Dave Andrews said of hearing about the sale. “We didn’t know what was coming.”
“I was kind of shocked,” said Program Engineer Tony Cattery. “They were here all the time. They loved their business.”
But after getting over the initial shock, Dave was soon onboard. Now two years into the Compass regime, Dave was very complimentary of how well the Compass team, including CEO Gary Holcomb and VP Sales Jim Miller, listens to them and their needs.
That has helped build trust between R&D and its parent company. It’s also led to more business.
“There’s more work for us,” Dave said. “More production wise. We’re getting more customers and more complex jobs with closer tolerances.”
Tony described that he found the sale so surprising because Hilary and Carl ran such “a tight ship.”
But Gary earned his trust in their very first encounter.
“Gary had said, ‘We’re looking to buy the shops but we’re buying their abilities, their brain power’ knowing how hard it is to find decent people that know what they’re doing,” said Tony. “So that made me feel a little bit better.”
CNC Programmer/Machinist Johnny VonInten had a similar reaction to the first day he met Gary and the rest of the Compass management team.
“When they came in and told us that they bought us, they were excited about owning the company and being part of the company and not just being an asset,” said Johnny. “They weren’t going to turn us into Compass but be a part of Compass.”
Dave, Tony and Johnny worked for Hilary and Carl for 20 years. Those lengthy tenures likely contributed to their strong reactions to the sale.
But it wasn’t necessarily any easier for Production Control Manager Tim Carter, who had worked nine years for the previous owners.
Tim said he was initially apprehensive about Compass acquiring R&D. But now two years later, he described the transition as “refreshing.”
“We’ve become more modern with the way everything kind of progresses,” said Tim. “We had a certain way of doing things before, and now we’ve branched out, looking for more lean ways to do things.
“There’s no wrong answer. If it gets the job done, then it’s ok.”
While Compass has certainly put its fingerprints on R&D the past two years, it hasn’t changed the fundamental aspects about what makes the operating company unique.
“You get new management that comes in, a lot of times they want to change everything,” said Production Manager Thom Amend. “But they really didn’t change a whole lot. Little things here and there.”
Thom explained one of the bigger changes at R&D has been a new management style. Compared to the previous owners, Justin is more hands-off.
Thom argued that change has been very positive for the operating company.
“They show trust in us, especially the ones who have been here long enough,” Thom said. “Don’t get me wrong, Justin is making sure everything is running correctly. But he will give us a task to do and won’t look over our shoulder.”
Chris, though, wasn’t sure he was going to give Compass the opportunity to earn his trust. He unexpectedly received another job offer just two months after Compass acquired R&D. Before allowing him to leave, though, Justin asked Chris for two weeks and then wanted to talk about his potential future at the company.
After waiting two weeks, Chris left that meeting wanting to stay at R&D even though he was passing up another opportunity for more money.
“[Justin] laid it out there, ‘Look, I can’t do what they’re doing for you. But I can promise that we’ll get there, and we’ll take these steps to get you there because I want you to do the same jobs here.’”
Over the past two years, Chris has focused on what he loves most – machining. But he’s also become an important leader at R&D, helping to train new employees.
Other longtime R&D employees Jack Kutcha and Mark Adams were a little more understanding of the sale due to the age and health of the previous owners. Both have also embraced the changes and enjoyed the growth the company has experienced the past two years.
“We all knew Hilary and Carl were getting up there in age,” said Mark. “So, it was no surprise, and things are working out.”
Ironically, Jack and Mark have had opposite individual experiences through the transition. Jack performed all kinds of different roles under the previous ownership, but under Compass, he has begun solely focusing on deburring. Mark, though, has remained in his same role as lathe machinist since the sale.
Both appreciate how things have worked out with Compass.
“With new management, you’re going to have some changes, but that’s normal. Everybody is going to try and do it their own way,” Jack, Deburr/Finishing Tech, said. “It takes time to go through transition.”
To be exact, it takes time, trust, and in some instances, even a leap of faith.
But after two years of transition, R&D Machine has become a productive operating company for Compass Precision.