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Portions of the following article originally appeared in an issue of Minnesota Business & Opportunities.


Nobody Sits the Bench
By Deb Windsor

What does it mean when everyone within the company knows how to count? At Benchmark Computer Learning, everyone knows they're in business to make money and have fun. (Whether fun or money comes first is still the subject of company philosophical debates.) This shared vision translates to expected 1997 revenues of over $7 million and 44 percent growth rate for the foreseeable future.

Scott Schwefel, CEO of Benchmark Computer Learning, launched the company in August of 1995 by acquiring all the education and training assets of Benchmark Computer Systems. This buyout was financed by a down payment and a balloon loan tied to the company's value at the five-year mark. Thus, a win-win situation was structured in which the investor shared in the company's growth.

Benchmark Computer Learning delivers instructor-led and technology-delivered computer instruction to computer professionals who install, develop and maintain PC networks. Authorized training is provided for Microsoft, Novell, Powersoft, Lotus and Cisco. Also, Benchmark is a premier reseller of Netg Technology-based software, a TEN satellite network distributor, and a Sylvan Prometric Authorized Testing Center.

Since day one, the team at Benchmark Computer Learning has practiced open book management and profit sharing. Open book management means all employees and customers have full access to the company's financial statements. Each employee understands who owns the line items on financial statements. They also understand what impact can be made to increase profit sharing.

Key figures are reported via email on a weekly basis and financials are discussed in monthly and quarterly company meetings. Key business measurements such as revenue growth and capacity have been defined to indicate company strength and goal achievement. These key business measurements are then posted graphically where all of the team can review the progress.

To encourage employee participation in company growth, open book management was complemented with a profit sharing plan. Profits are distributed equally among employees. At the quarterly company meetings, one team member, Peter, quickly cuts to the chase as soon as the quarterly profit is revealed and shouts out the number reflecting each employee's share.

With each employee understanding the financials and motivation for bottom line improvement, new ideas flow freely. The company email system is utilized to facilitate brainstorming. One employee's idea can be built on by another employee and ideas are developed 24 hours a day on the network. Once an idea has been adequately formulated, an employee requests ownership to make it happen.

New ideas increase customer satisfaction, which translates directly to improved profitability for Benchmark employees involved. Thus, the value of the open book management shows itself in many forms. Recently, an employee took action to move comfortable furniture sitting in an office suite to the student lounge where it can make the customer experience more enjoyable.

Customer satisfaction is always evaluated. Students are queried weekly through an open forum with a few leading questions at a company-sponsored pizza luncheon. A customer advisory panel of the six largest clients are continuously consulted. Benchmark approaches its customers with a blank tablet to determine current and future needs.

In another example of employee ideas making an impact, a question was raised as to why multiple-day classes are always initiated in the first part of the week. After a customer survey returned a response that reflected an interest in adjusting the timing during the week, multiple-day classes were to start at the end of the week, and continue after the weekend.

Review of key business measurements also generates new ideas. As Scott Schwefel notes, "measurement only works when you are measuring the right thing." Capacity was identified to be a key business measurement. Initially, the measurement was calculated comparing the number of students to the total number of seats available in scheduled classes. However, Phil Hinderaker, president of Benchmark Computer Learning, questioned if capacity was truly measured correctly. Now, the "Phil rate" is calculated considering the total number of classrooms and the hours available. By comparing the total number of students to the seats available at the entire facility, true potential capacity is measured. This new key business measurement led to new ideas of how to increase the capacity utilization. Several one-day seminars were placed on the schedule as well as the aforementioned classes with late-week starts.

The company's financial statements are open to the customer as well. Salespeople initiate dialogue with the customer by first establishing that Benchmark has the right to make a profit in doing business. From this premise, an honest and mutually beneficial relationship can be created which provides the customer with a product that comes from a provider positioned to remain in business.

With an ever-changing competitive environment, Benchmark must stay close to its customer to hold approximately 60 percent of its market share. While the industry is experiencing consolidation, Benchmark will continue to grow market share in order to maintain and control its own destiny.

Benchmark's banker, Gerald Anderson of Riverside Bank notes, another strength is the ability to identify what additional knowledge will be needed for growth. Team expansions are made to fill the roles required in the three-to five-year outlook. In addition to the team-growing foresight, Benchmark experiences a very low turnover rate.

The energy generated from a fun, money-making company culture permeates throughout the organization into the classrooms of customers. This culture is based upon values that include open and honest communication and timely and positive confrontation. Each team member is equipped with decision-making ability to impact the growth of Benchmark Computer Learning.