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ExecutiveBiz: Why did you start WR Systems?
Ray Yu:
It was quite a while ago but honestly I was tired of working for large companies and was looking for a new challenge where I could make a difference so I decided to start WRSystems when the opportunity came up. I wanted this company to be special and not like some of the companies started up by people I knew which were essentially just body shops. I wanted a company where our customers actually got what they asked for and where employees, including myself, could feel good about what we did, while not worrying about job security.
And being an idealist, I decided that if I was successful, then this would be a world where customers referred other customers, and employees referred other employees because both groups were confident in our ability to take care of them and deliver as promised.
ExecutiveBiz: What does WR Systems look like today in terms of employees and revenues?
Ray Yu:
This has been a great year with new contracts with the Navy, the State Department and with the Drug Enforcement Administration. So I’m happy to say that I expect better than a 15% growth in revenue this year. Things had been pretty flat over the last 3 years so I’m really happy that my strategy to focus on our core business strengths with Surveillance, Logistics and Navigation has finally yielded some success. Besides our financial success, I’m even happier that the company has been recognized as a technology leader and one of the best places to work. Besides revenue growth, the total number of employees has increased 20% over the past year and turnover remains remarkably low. The Company is highly focused on maintaining an employee-friendly environment and promotes mentoring, ongoing training and highly competitive compensation and benefits. As a result of these initiatives, WRSystems has experienced annual turnover of less than 6% per year, which compares favorably to the industry average of approximately 20%.
ExecutiveBiz: What was the biggest challenge that you faced when you started your company?
Ray Yu:
My early career was in the corporate world where I had a great deal of management training. I got my first taste of the consulting business with KPMG where I was a Management Consultant. When I started the company, I was actually very technical, very hands on with my customers, had more work than I could handle and life was good. I though that running a new business was easy, but I was very wrong. I was working over 100 hours a week, had more work coming in and needed some good people in order to grow. So my challenge was finding employees to replace me who had the same work ethic and commitment to both the customer and the company.
ExecutiveBiz: And how did you overcome it?
Ray Yu:
It took a lot of luck and the help of good friends. I have always maintained a great network of contacts so I was able to pass the word that I was expanding and looking for staff to help me grow the company. I got help with referrals and was able to express my vision successfully for maximum buy-in.
Our success continues today, along with our reputation for quality work and for taking care of our employees. We continue to get referrals for new employees and for more work.
ExecutiveBiz: Who are some of your major customers?
Ray Yu:
I started the company with a commercial focus in NYC and was able to leverage my relationship with contacts in Burroughs. They had a strong presence in banking back then and brought us in to support their custom software development projects. They eventually merged with Sperry and became Unisys. Because of the high quality of our work, they brought us down to DC to work with them in the Coast Guard back in 1986. That eventually brought us into the SBA 8(a) program and a major move to Northern Virginia where although we have graduated the 8(a) program, we have continued to grow and prosper. Today, the US Coast Guard continues to be one of our major customers.
Currently, the Navy is our largest customer and accounts for around 60% of our revenue. However I expect that to change because of our new contracts with GSA, the State Department and the Drug Enforcement Administration.
ExecutiveBiz: What does the future hold for the company?
Ray Yu:
I am really committed to keeping our current customers happy, and I want to capitalize on our strengths by leveraging them into other related markets and technologies. I believe we have a leadership team that can take us to a $100 Million company in the next three to five years.
ExecutiveBiz: What are some of the hot trends that you are tracking closely this year?
Ray Yu:
There is a lot of activity in our core competency areas these days. Our wide area surveillance experience is getting a lot of exposure because of Home Land Defense initiatives. We have successfully expanded our Navigation Engineering capabilities into Autonomous Vehicles and Geospatial Technology. And our IT group has secured a strong niche in Software Logistics and Supply Chain Systems. We’ve had a fair amount of success with growth in these areas and the future looks even better.
ExecutiveBiz: What is your company’s unique approach to the market?
Ray Yu:
We never tell a client no and we never fail to deliver.
We also place a great deal of importance on our employees since they are the ones that will make our customers enthusiastic about WRSystems. An excited and enthusiastic professional will keep customers all day long.
ExecutiveBiz: Do you have any plans to sell your company in the near future?
Ray Yu:
In the near future, no; we need to achieve the potential that we have with our current leadership team. That doesn’t mean that we wouldn’t sell in the future as we reach a point where experience in larger markets is beneficial to our continued growth and success.
ExecutiveBiz: What one piece advice would you give a CEO looking to grow his or her company in the government contracting space?
Ray Yu:
People do business with people so listen to your client because they know what they want.
ExecutiveBiz: What are some of the key positions that you are looking to fill this year?
Ray Yu:
We’re always searching for “Customer Advocates”, folks who already have a great relationship with their client, do a great job, and are looking for a great place to work. We’re also currently looking for software and hardware engineers/scientists. And we always have positions for folks who have Secret and Top Secret Clearances.
ExecutiveBiz: What are a few things that most people don’t know about you?
Ray Yu:
Well, after playing against Calvin Hill (Dallas) in high school and alongside Ed Marinaro (Vikings) in Cornell, I had a dream about being the first Chinese Pro Football player. I was also the smallest guy on the team so the dream was sort of beaten out of me. Of course, if I wasn’t so pig - headed about the glory of playing offensive half back, I think I could have made it playing a defensive back.
I’m also deathly afraid of public speaking. I think I do pretty well one on one and in small crowds but right now I’m afraid to go to the 4th Annual Greater Washington Government Contractor Awards where I am one of the finalists for Executive of the Year in the $25-75M category. I know it would be a great honor but I’m really afraid to win because I would have to go up to accept the award and give a speech to the estimated 1,000 guests at the Award Gala!
Oh Yes - and I ride a Harley ...
For more information about
WR Systems, Inc., visit
www.wrsystems.com.
Interview with Ray Yu conducted by JD Kathuria.
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