Simple and Straightforward Equals Success

by Michael Degrange

Preface: Before joining Checon, Mike was employed for ten years at two other companies much larger than Checon.  The first, a privately held company with almost 600 employees, had been in business for almost 120 years.  The second company was a US subsidiary of a European multinational with facilities located across the world.

Twenty-three years in the Chief Financial officer’s chair of a private, US manufacturing company have developed in me an interesting perspective regarding company size and competitive advantage.  Simply put, smaller can be better.

Our smaller size allows us to react more quickly when opportunities arise and obstacles appear.  A lean, flat organizational chart speeds communications and reduces filtering.  Meetings involving new operational initiatives (updated product costing and production scheduling) include upper management and line employees alike.  The finance department of Checon is proactively solicited for input related to new products outside of our traditional offerings.

Checon Corporation has always employed the “prudent man rule” regarding its finances. We utilize debt when necessary but we do not overextend.  When storm clouds were gathering over the economy during 2007, Checon decided to reduce its bank debt.  By the end of 2009, our debt position had been reduced 30%.  “Should we?” rather than “Could we?” is always the leading question when discussing new financing requirements.  We have to maintain our focus at Checon since we do not have the virtually unlimited financing that large companies have to paper over their mistakes and we certainly are not large enough to qualify for a government bailout.

A straightforward business philosophy based on communication, prudence, and profitability provides the compass, which Checon Corporation utilizes to chart its course, both for the last 50 years and for the next 50 years.