www.wddinc.com
Wlasuk, Delporte and Davis, Inc. (WDD) is an Indianapolis-base software consulting company that develops custom applications for the Microsoft platform. Its services include design, development, testing and installation for medium to large-scale clients requiring custom, company critical software solutions. Some of WDD’s past and current clients include AT&T, Avaya, Best Access Systems, LandecAg, Lucent Technologies and Roche Diagnostics.
The Challenge
Nine years ago, basic survival was the greatest challenge facing Wlasuk, Delporte and Davis Inc. Early in 1993, the future of the AT&T intraprenurial venture, Graphics Software Labs (GSL), which was started by WDD’s president, Alan Wlasuk, and staffed by WDD’s two other principals, Reed Delporte and John Davis, was uncertain. Even though GSL was one of AT&T’s more successful ventures, its business was not a core part of AT&T’s business strategy, nor would it ever become large enough to contribute any more than incidental income to AT&T.
AT&T’s $250 million experiment in intrapreneuring was, for the most part, a failure. The two successful AT&T ventures in this experiment, Truevision and GSL, were to be shuffled back into the corporation or disassembled. Truevision emerged as a separate corporate entity. GSL, however was not so lucky.
After a lengthy attempt to negotiate the sale of GSL to its employees, AT&T decided to move GSL to Florida. The founders of WDD then began their new lives as independent software consultants, creating Wlasuk, Delporte and Davis Inc. Shortly after starting this new company, the three principals found themselves in the middle of an intellectual property battle with AT&T. All of the classic corporate worries were present. Even though AT&T was a business partner, a corporate giant AT&T’s magnitude could crush a small company like WDD through a misstep of direction or delay. When riled, the collection of lawyers and administrators at AT&T’s disposal could tie up a small company in endless legal issues, meetings and delays.
Less than three months after its inception, WDD was sitting across the table from AT&T’s chief corporate counsel and his legal entourage. WDD’s legal fees were mounting and there was no time to even think about finding customers for the newly formed company. Fortunately, both sides in the corporate debate eventually realized that collaboration was a far better approach than litigation.
Today, nine years later, WDD has worked with technology wonders for several companies. The company’s software solutions have formed the core of at least one business and the focal point of many company-critical products. WDD has expanded from its original three principles to a staff of seven (two of the additional four are former GSL associates) with a corporate culture and identity that continues to emulate the environment described in Gifford Pinchot’s classic book INTRAPRENEURING: Why You Don’t Have to Leave the Corporation to Become an Entrepreneur.
Though the founders’ may have grayed a bit, they are still wearing t-shirts, jeans and flip flops. This casual attire, however, belies WDD’s commitment to serving clients and putting technological innovations into practice. While annual revenues have grown to over $1 million, WDD is still, at heart, the same company that the three principles started in 1993.
The challenge facing WDD today may not be as menacing as the one posed by AT&T early on. Being small, yet building company-centric products for large clients, WDD is constantly faced with the reality of having all its proverbial eggs in a single basket. A typical project for WDD will last several years and consume 60 to 80 percent of the company’s resources. So obviously, the greatest danger facing WDD is that a client will unexpectedly terminate a project (showing that even a friendly corporate giant can be deadly).
Even with these challenges, the company’s growth over the past years has been constant and controlled. WDD enjoys the closeness of a small group and the constant stimulation of new technical projects-challenges that are embraced by staff members with complementary skills honed over many years of working together.
The Solution
Obviously WDD is still alive; avoiding being crushed by AT&T those first few months. WDD looked AT&T in the eye and told the corporate giant they could sue if they chose to. WDD was willing to take on its legal bills and told AT&T that the corporate plans for WDD belonged to its founders Alan Wlasuk, Reed Delporte and John Davis.
With the legal challenge out of the way, WDD suggested that the AT&T division that had taken over the sales of Graphic Software Labs’ products might benefit more by utilizing WDD, which was run by GSL’s original developers and architects. WDD pitched itself as an external development staff and corporate ally rather than the opposition in an extended legal battle. While WDD’s founders may tell their grand kids that they were brave and their hearts were pure, the real fact is that they were three hungry guys who got lucky.
AT&T responded to the corporate bravado of WDD’s founders and gave the company a contract that kept it going for the next year. The product that WDD hoped to sell on its own became an AT&T/GSL product. And while this was not the initial plan, it kept the business alive.
Following this initial round of work from AT&T, WDD moved on to work with other clients. The company has succeeded over the last nine years for a variety of reasons. First, it is good at what it does. Software products that companies base their fortunes on are not easily produced. WDD prides itself on listening to its clients and using its staff’s technical knowledge to build software solutions that allow its clients to run their businesses and support their customers.
Second, WDD has focused on culture, not size. Given a choice between a tight, cohesive team or larger staff, WDD has carefully added only a few members after fully weighing the impact of additional team members on its corporate culture.
And lastly, WDD has been very, very lucky. Oprah Winfrey said, “Luck is a matter of preparation meeting opportunity.” As projects have been terminated, WDD has picked up new ones. Most of WDD’s new clients are recruited through word of mouth and recommendations from friends and former associates. WDD’s luck has been aided by preparation; the quality of work the company does, its treatment of clients and a culture that is based on respect as opposed to pure profit. When people talk about WDD, it is usually in a positive light.
The continual challenge WDD faces is the unexpected termination of a major project without a successor in the wings. The easy solution is money in the bank. The harder, long-range solution is developing a name for WDD in the marketplace. In recent years, revenues from past projects have allowed WDD to build cash reserves to a point where it could survive for six months if its biggest client went away tomorrow. As WDD tries to build name recognition in the community, the company is committed to being actively involved in industry and service organizations such as INITA, NPowerIN and Rotary. As part of this strategy, WDD has hired a company concierge whose duties are part technical and part business development.
The life of a small company is never assured. However, by focusing on its core strengths and staying mindful of its company culture, WDD is in a good position to weather almost any hard time.