Patience pays off for Krejci at Strattec
Frank Krejci is a patient man.
That patience has served him well as president and chief executive officer of Glendale-based Strattec Security Corp., a designer and manufacturer of automotive accessories, including locks, key fobs, door handles and power-assist devices.
Perhaps no business is more cyclical than the American automotive industry.
For the moment, Krejci and Strattec are riding the crest of that cycle, having secured a record $80 million in new business in fiscal 2016.
In Strattec’s most recent fiscal quarter, it sold $28 million in parts to Fiat Chrysler, $22 million to General Motors, $16.8 million to Ford and $8.2 million to Hyundai/Kia.
Now the company must develop and deliver on the contracts it secured last year, while at the same time devoting additional assets to researching and developing the next wave of automotive products.
“That’s new business that we won. Then we’ve got detailed engineering, all the designs and lots of customer visits to make sure what we quoted gets implemented,” Krejci said.
“That’s just the nature of the business. There aren’t many things that just fall out of the sky,” Krejci said. “Trying to develop product is a long process. You do need patience. And if you’re not investing in the future — in the new product or the enhanced product — in a few years, you’re out of business.”
Strattec is in a perpetual cycle: incurring short-term costs for research and development today that will reap revenue from sales of new products tomorrow.
Krejci cites seven key reasons for Strattec’s consistent global growth in the cyclical and competitive automotive parts business:
Communication. “I hold monthly meetings with salaried and hourly employees to let them know what has happened and what is coming up. I encourage them to ask questions, which they do. I also have a lunch every month with a random selection of salaried and hourly employees. We get to know each other and get into more in-depth conversation about questions and issues that concern them,” Krejci said.
Partnerships. “For over 15 years, we have had a unique partnership called VAST (Vehicle Access System Technology) with two privately held companies in complementary businesses. By working together, we have a global presence that we could not achieve individually,” Krejci said.
Strategic management. “For each business group, we
have set up a board of directors currently made up of primarily internal people. However, we are beginning to add people from outside the company,” Krejci said.
Fun. “It is important that we take time to celebrate the victories. On holidays, I try to do a little something to put a smile on their faces. For example, on Valentine’s Day, I will dress up as Cupid and hand out roses to all of the female employees,” Krejci said.
Employee wellness. “We have won wellness awards. It is important that we encourage people to take care of themselves for their own wellbeing, for their families and to be a contributing member of Strattec. We offer health risk assessments with recommendations when needed, walking incentives, free fruit enhanced water, free oranges and free apples,” Krejci said.
Global perspective. “The world is getting smaller and more competitive. By visiting our operations in other parts of the world, we can better understand their strengths, priorities and opportunities. It is healthy for our associates to interact with people who come from different backgrounds,” Krejci said.
Investing in the future. “Whether it is new equipment or an engineering effort to introduce new products, it is important that we continually invest in the future,” Krejci said.