CHIEF OPERATING OFFICER or CHIEF FINANCIAL OFFICER
Successful top line and bottom line performance.
As a MANAGEMENT CONSULTANT, I have restructured operations, assessed inventory and accounting practices, negotiated contracts, and supported arbitration claims. While retained as a management consultant, I led a management buyout and then delivered $48 million of computer equipment. I accurately assessed the operational assumptions of a $250 million computer equipment distributor, STOPPING THE HEMORRHAGING on a key contract and AVOIDING TENS OF MILLIONS of additional losses. After a $21 billion merger, I was retained by the buyer’s counsel for the post-closing adjustment process, a wide-ranging dispute resulting in a $635 million payment from the seller. RESULTS-ORIENTED PROBLEM SOLVER.
As Vice President, COO and CFO of a computer equipment reseller, I managed our business relationships with my former client and our principal subcontractor, and repaid our startup loan within five months. LED MANAGEMENT BUYOUT. STARTUP EXPERIENCE.
Within a $16 billion company, I was VP and CFO of the team that created a $25 million transportation management business. I negotiated contracts, licenses, and teaming agreements; and was integral to all strategic partnering and business development activities. My “on target” DUE-DILIGENCE ASSESSMENT of a joint venture proposal enabled us to avoid a $25 million equalizing payment. Earlier, as Manager of Business Operations, was recruited to RE-ENGINEER FINANCIAL PROCESSES and was the ROI expert. I restructured my finance department to reduce annual labor costs by over $600,000 (35%) within 18 months and by $800,000 within 42 months. CATALYST FOR CHANGE. Earlier, as Head of Financial Planning, was responsible for 18-month and five-year manpower plans. Former Navy officer and pilot with Top Secret clearance. Have BS and Wharton MBA.
1996 - Present
MANAGEMENT CONSULTANT
Los Angeles, California
PRESIDENT
In June 1996, I formed a sole proprietorship to provide operations, financial, and business development consulting services to clients in high technology businesses. In May 2002, I founded a limited liability company for the same purpose.
In April 1997, I was recruited to evaluate a $250 million computer equipment distributor’s inventory management and accounting practices. Within three months, senior management agreed with my assessment of a $40 million loss on the subsidiary’s largest contract. My analyses led to recording $51 million of losses in 1997 as well as to over $20 million of claims. I was retained by the buyer’s counsel for the post-closing adjustment process, a wide-ranging dispute resulting in a $635 million payment from the seller.
Within one year, we reduced inventory from $81 million to $15 million and increased operating margins by 7%. I revalued inventory to the “lower of cost or market” monthly while achieving financial-to-perpetual inventory variances of <0.1%. I laso discovered and negotiated the return of over $1 million of overpayments to Microsoft. Developed annual and five-year plans.
In mid-1998, my client decided to wind down its subsidiary, so my future partners and I drafted an unsolicited proposal for the client’s contract with a federal government agency. Our management buyout proposal was well-received, but declined in favor of an open competition. We then persuaded CompUSA to support our bid, including a loan for the upfront cash desired by my client. At year-end, the contract was novated to a company that I co-founded.
In December 2000, I was recruited by a $2 billion company to reconcile a $4.8 million (net) inter-company variance that PricewaterhouseCoopers left unresolved after several thousand man-hours of effort. I reconciled $1 billion of cost transfers among three ledgers, resulting in hundreds of corrections to the accounting records as well as to numerous changes in the monthly close process.
In December 2002, I was retained by a $3.2 billion group to assist in converting legacy general ledger systems to SAP R/3 financials. Reconciling receivables and sales data, I identified 3,000 variances among 8,000 contracts, $62.6 million of inventory balances on 450 completed accounts, five practices for recording $27 million in commissions, and documented over 100 conversion issues.
In November 1996, I was recruited by a business to lead O&M contract negotiations as well as to update its business plan.
1998 - 2005
COMPUTER EQUIPMENT RESELLER
Los Angeles, California
VICE PRESIDENT, COO and CFO
In November 1998, while retained as a management consultant, I co-founded this company to buy out the remaining obligations of a client’s contract with an agency of the federal government. Although only eight months of delivery obligations remained upon contract novation, we received 12 contract extensions totaling 31 months, and delivered over $48 million of computer equipment. The contract was closed out in November 2004.
We paid CompUSA procurement and integration fees, phantom equity, and market-competitive interest on our startup loan—a loan which we repaid in full in less than five months. We provided our employees with competitive salaries and benefits, and paid quarterly bonuses.
I initiated and negotiated our proposals, and managed our business relationships with my client and CompUSA. I issued purchase orders, coordinated equipment deliveries, managed payroll and benefit programs, handled A/P, A/R, and banking activities, developed financial statements, and prepared our tax returns. I assisted CompUSA resolve its procurement, inventory, integration, logistics, and invoicing problems when it simultaneously transitioned its procurement and integration activities to Ingram Micro and converted its non-Y2K-compliant financial systems to SAP R/3.
1986 - 1996
GENERAL MOTORS HUGHES ELECTRONICS
Los Angeles, California
GMHE was a $16 billion manufacturer of defense (Hughes Aircraft Company—HAC) and automotive (Delco Electronics) electronics, manufacturer and operator of telecommunications satellites (Telecommunications and Space), and provider of satellite services (DirecTV).
HUGHES TRANSPORTATION MANAGEMENT SYSTEMS
Fullerton, California
VICE PRESIDENT – CFO
In early 1990, I volunteered my services to Ground Systems Group’s ($1.2 billion) senior management. Soon afterwards, I was paired with a highly regarded entrepreneur, CEO, and visionary hired to assess “defense conversion” market opportunities. We agreed that state-of-the-art “open road” electronic tolling solutions using HAC’s communications, sensors, and command and control capabilities held the best promise for meeting the Group’s $100 million sales objective. By 1996, HTMS was a $25 million business unit employing 65 people.
By mid-1991, my part-time volunteer work had evolved into a full-time position, although I also continued to perform my previous duties through early-1992. I ultimately managed a marketing VP, business manager, two financial analysts, and a $1.4 million budget ($1 million marketing). As CFO, I developed pricing strategies, negotiated teaming agreements, contracts, and licensing agreements, and was integral to all strategic partnering and business development activities. As a member of our three-person Office of the President, I jointly managed our 65-person workforce and $8 million operating budget. Division Executive, Hughes Aircraft of Canada, Ltd.
BUSINESS DEVELOPMENT — In late 1992, I DEVELOPED THE WIN STRATEGY for our Advantage I-75 proposal to the FHWA, a contract which vaulted our vehicle-to-roadside communications (VRC) technology to the forefront of the commercial vehicle operations marketplace. This $1,972,000 contract represented a watershed in our nascent business as we were selected over (then-current) industry leader Amtech, AT&T/Mark IV, Saab-Combitech, and AT/Comm.
The Advantage I-75 contract strengthened the Ontario Ministry of Transportation’s interest in our technology and led to a two-way “build-operate-transfer” competition for Canadian Highway 407, including the world’s first all-electronic “open road” tolling system. I negotiated legal agreements with Bell Canada, Bell Sygma, and Mark IV, and developed our O&M proposal.
Upon reversing prime contractor and subcontractor roles, I renegotiated Bell Sygma’s subcontract from CDN$10 million to CDN$6 million. Sold CDN$36 million of program receivables forward, locking in $1.07 million of additional earnings. Negotiated $3.6 million net cash (1995), and cost-reimbursable terms for our operating company. I also recruited a top-notch business manager who negotiated $1.2 million of vendor concessions.
STRATEGIC PARTNERING — In April 1994, we pursued a JV with Lockheed’s Transportation Systems and Services (TSS) business unit. Booz-Allen was retained to evaluate each party’s contributions and a due diligence team was assembled. Upon receiving the Booz-Allen report—and prior to due diligence—HAC and Lockheed senior executives agreed in principle to form a joint venture company. I subsequently convinced senior management that the Booz-Allen study used for negotiating HAC’s $25 million equalizing payment was seriously flawed, and that the TSS forecasts were unrealistic. As a result, HAC CEO John C. Weaver demanded fairer terms from Lockheed, and failing that, he scuttled the planned joint venture.
To become the world market leader, we needed continued product development. To develop a sustainable competitive product development advantage, I led the negotiations of a ten-year cross-licensing agreement for VRC technology with Hitachi in February 1995 ($1.5 million license fee, $0.7 million engineering services). I also negotiated agreements with Delco Electronics (in-vehicle transponders) and Transroute SA (toll operations).
PRIVATIZATION — Recognizing the long-term account control provided by privatization projects, I was an ardent advocate for obtaining a 50% equity interest in California’s SR-91 toll franchise (which was sold at a $72.5 million profit in 2002). HTMS would have gained a key account and engineering test bed in its backyard for a modest “in kind” contribution. For our Minnesota privatization initiatives, I negotiated a NINE-WAY TEAMING AGREEMENT giving HAC the options of 1) acquiring up to 50% of the equity in any tolling franchise awarded and 2) converting its pre-contractual expenses to equity on a leveraged basis.
SURFACE SHIPS SYSTEM DIVISION
Fullerton, California
MANAGER OF BUSINESS OPERATIONS
In February 1988, I was recruited to manage 30 financial analysts ($1.8 million) for a $280 million division of 1,300 employees, and to develop credible operating plans and “estimates at complete” for over $1 billion of contracts. I turned down an excellent promotion at Space and Communications Group (S&CG) to accept a lateral position offering manufacturing experience and the opportunity to work with rapidly-advancing Division Manager Kenneth C. Dahlberg (currently SAIC CEO). I subsequently received TWO PROMOTIONS, making me bonus-eligible.
We analyzed sales, earnings, cash, inventory, manpower, costs, schedule, receivables, working capital, ROI, material, realization, and warranties. I increased accountability, “sense of urgency,” teamwork, and productivity, and broadened financial analyst responsibilities to reduce annual labor costs by over $600,000 (35%) within 18 months and by $800,000 within 42 months.
I wrote a 104-page ROI manual and pioneered “receipt-to-sale” metrics capturing the effectiveness of the entire manufacturing process. I identified $40 million of material scheduled ahead of need date, and accelerated $15 million of cash. I evaluated several acquisition candidates, including HP’s TEMPEST operations. I was one of 24 people selected for HAC’s 1989 Program Business Management Development (PBMD) course, and later coordinated the commercial business module of the Group’s PBMD course. I also developed a succession plan.
COMMUNICATIONS & COMMUNICATIONS ELECTRONICS DIVISIONS
El Segundo, California
HEAD OF FINANCIAL PLANNING
In April 1986, I was hired to coordinate the two divisions’ (2,500 people) 18-month and S&CG’s ($1 billion, 10,000 people) five-year manpower forecasts. Reduced the division summary development time from two weeks to <24 hours. As my responsibilities grew, I managed six financial analysts and received TWO PROMOTIONS. By managing normal attrition and automating clerical processes, we reduced staff from 23 to 14 people. Security clearance/EBI.
Within three months of assuming oversight responsibility, I caused a manpower system redesign effort to be terminated for cause. As Inmarsat 2 analyst, I created a “normalized” earned value capability to assess the overall cost and schedule impact of seven operating plans in 18 months.
1974 - Present
UNITED STATES NAVY
My military career spans a four-year NROTC college scholarship followed by over six years of active duty, six years active reserve service, and eight years inactive reserve service, after which I transferred to the Retired Reserve in January 1999.
Commissioned in May 1978, I was assigned to NAVAL RECRUITING DISTRICT headquarters in Cleveland, Ohio prior to flight training (Beechcraft T-34C and T-44A). I received my “wings of gold” in March 1980 and transitioned to the four-engine Lockheed P-3. Designated an Aircraft Commander at OCEANOGRAPHIC DEVELOPMENT SQUADRON EIGHT in Patuxent River, Maryland and logged 1,500 hours of “pilot in command” time. Aviation Safety Officer, Maintenance Check Pilot, and Communications Officer. Fuel management expert. Top Secret security clearance.
In October 1983, I transferred to NAVAL AVIATION ENGINEERING SERVICE UNIT in Philadelphia, Pennsylvania, a $190 million services organization employing 2,300 people. When Captain Thomas J. Colyer needed to support two new programs with no increase in funding, I evaluated the cost-effectiveness of our existing services—an approach endorsed by Vice Admiral Busey (NAVAIR) that enabled $25 million to be redeployed.
Upon completion of active duty service in September 1984, I transferred to the Active Reserve where I qualified as P-3 Patrol Plane Commander, logging 800 hours of “pilot in command” time. Top Secret security clearance.
EDUCATION: MBA, The Wharton School, University of Pennsylvania, 1985; Director’s Honors List.
BSC, Finance, The University of Louisville, 1978; graduated with Honors.
PERSONAL: Age 51, 5’11”, 155 lbs. Married, one child. |
