On Monday, June 12, San Diego Regional Economic Development Corporation (EDC) recognized Dr. Beyster with the Herb Klein Civic Leadership Award for his outstanding leadership in addressing regional challenges through collaboration with public, private, and civic partners. In his acceptance speech, Dr. Beyster noted the important role that SAIC has played in San Diego over the years:
“The company’s significant local involvement began in about 1983-1987, when SAIC helped put together the technical support team for the 1987 America’s Cup in Australia. The Cup was won in Fremantle, and SAIC participation has continued to bring great technology credit to the San Diego region through the years. It’s been amazing to me to see what has been done in growing SAIC. The employees learned to work hard and then listened to each other reasonably well — showing a real interest in developing the ownership system which rewarded them. Without employee ownership, SAIC would not exist today. It’s been an exciting experience, and I thank the San Diego Regional Economic Development Corporation and all of you that make it possible to grow companies like SAIC here in San Diego.”
Here are comments on some of your Week 7 and Week 8 responses:Bob Kamen: It’s funny, but I’m receiving opinions both ways on the value of employee ownership. It’s obvious to both of us that you can only go so far in explaining the advantages of employee ownership — many people are very afraid of investing in any stock. But I think through the retirement programs, most everybody had stock, much of which they couldn’t sell — it was not vested. So part of their compensation went into stock and stayed there, as long as they were at SAIC. It’s true that the performance of some people who were significant shareholders was sub-par. On the other hand, the performance of some employees with small holdings was highly motivated because we took pains to try to involve them in the ownership and management of their company. So, yes, some people were not motivated by the stock, but others were motivated more than you expected. I was motivated to make sure we found every way possible to keep the ownership in the hands of the employees.
Charlie Stringfellow: You brought to SAIC a rare ability to sell and manage large, complex technical contracts. You surrounded yourself with others who successfully built on your legacy. This was all done with a minimum of internal turbulence and conflict. As a result, SAIC has a lot to show for it, including a very successful Mideast contract base.
David Ball: Fortunately, I don’t remember this experience. But I don’t doubt it happened. SAP always seemed to me to be an overly complicated accounting system, the installation of which I reluctantly supported.
Chuck Spofford: I am pleased that you feel you were empowered to fix things if they were broken — that’s clearly the way the company was structured. I agree with you on the importance of having the employee-owners actively participate in the management decisions as much as possible. As a result, you have a lot to show for your many years at SAIC.
Neil Hutchinson: As I probably mentioned to you many times in the past, NASA seemed to me to be one of the most difficult organizations to work for. It took a special mix of high technical competence, responsiveness, and low price. You were able to master this art form and pass it on to those who are continuing to build SAIC’s NASA programs.
Click on the comments link to share your thoughts.
- Bob
From my perspective as a consultant to SAIC for almost 20 years, I am convinced that the company benefitted greatly both from the combination of employee ownership and Bob Beyster’s insightful management style, but I still find it difficult to sort out the credit due to each. An anecdote:
For the 7 years before signing on as a consultant to SAIC in 1987, I was a corporate senior vice president in a large, conventionally organized aerospace corporation. One of my responsibilities was to coordinate the component companies discretionary IR&D and B&P spending in the pursuit of new business. On one occasion, our Air Force customer noted to the CEO that two of our companies – one an airplane company and one a missile company – had been in to see him with different technical approaches in response to an RFP. The CEO took this as a message to sort out the internal competition, which we promptly did, favoring the airplane ompany. Later, after the contract was lost, we learned the missile company’s concept would have had a much better chance of winning.
Some years later in one of his frequent visits to government customers in Washington, Bob Beyster was confronted with a similar challenge and was asked which of two SAIC apporoaches that had been briefed to him did Bob support. Bob’s answer: “Which one do you like the best?”.
Bob, After receiving an e-mail from Jack Garrity, I bought your book for one of our outside directors who is also chair (and sole member) of our compensation committee, but ended up reading it myself this weekend. It is very readable and enjoyed it very much. I hope, after Paul reads it, that it helps with my pushing for more employee ownership here at MegaWave. We distribute profits to employees based on salary, but I want to do more to include their ownership and participation as stockholders. MegaWave is a thirteen year old small antenna company, doing about $2.6M/year with assorted government agencies. Thank you very much for your kind words about me on page 122. Peggy and I wish continued good health to you, Betty, and your family. Keep fighting the good fight. Marshall
Marshall: Thank you very much for your reply. It was people like you who helped build SAIC, and I thank you for your help.