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Diverse firms, same winning ways

By Dave Copeland
Globe Correspondent / October 11, 2009

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The three winners of the Greater Boston Chamber of Commerce’s 2009 Small Business Awards operate in different industries and have varying corporate philosophies.

But executives at the firms share some common themes about how they became successful, including hiring good employees and being flexible and open to change.

“This year’s winners are an excellent representation of the innovative spirit, focus on excellence, and commitment to the community that define the region’s small business community,’’ said Paul Guzzi, president of the chamber, which presents the winners their awards on Thursday.

The 25th annual awards recognize companies with $2 million or more in yearly revenue that have displayed financial performance, achievement in management, workplace excellence, product innovation, and community and social responsibility.

This year’s winners shared some of their secrets to success:

Award for Business Excellence

Laura DePalma, chief financial officer of RDK Engineers in Andover, believes being honest with employees is one of the keys to running a small business.

“You have to be open with your employees,’’ she said.

Because of a slowdown in construction due to the recession, business at RDK, which engineers the internal mechanical, electrical, cooling, heating, and fire-prevention systems for buildings, also suffered. As a result, DePalma said, the company has been forced to lay off 79 workers since the beginning of 2008.

Still, she said that company executives were always up-front with employees about what direction RDK was heading in, and they maintained contact with employees it had to let go. “You have to treat those people with respect, because those are the same people you’re hoping to rehire,’’ she said.

DePalma said business at the firm, which has 165 employees after recently hiring back four laid-off workers along with two new ones, has slowly picked up. The company declined to disclose revenue, but DePalma said RDK has grown by an average of 19 percent annually over the past five years.

The company has been using down time during the recession to offer additional training to employees. To cut costs, some of the training that had been done externally is being conducted in-house, but DePalma believes it shows employees the firm is committed to their development.

“Despite reductions in staff, our number of hours training this year is almost equal to last year at this time,’’ she said.

Small Business of the Year

Stu Haber, chief executive of Infoscitex in Waltham, said his business is successful in part because he never gave up on the engineering company even when things didn’t look good.

Infoscitex, which was started in 2000, operates as a two-sided company, with one half working as a contract engineer on government projects, including in the areas of aerospace and defense. The other side develops commercial products, including a waste energy system that converts trash into electricity or heat.

The company’s dual focus “has been a challenge at times,’’ Haber said. “The first four years were a struggle, and there were times when we questioned the viability of what we were doing.’’

After posting revenue of no more than $1.25 million per year in each of its first four years, the firm is now profitable and had revenue of $15 million last year. Infoscitex, which has 115 employees, projects revenue of $25 million this year.

More government contracts as well as the commercialization it has developed on the consumer side of its business have fueled its growth. Haber said the company also has spent a lot of time recruiting talented employees who believe in the company’s mission.

“You have to have a really strong culture and let employees know where you’re heading,’’ he said.

Entrepreneur of the Year

As chief executive of Communispace Corp. in Watertown, Diane Hessan knows the importance of being flexible.

These days, Hessan’s nine-year-old market research firm builds social networking websites that let companies get immediate feedback on products and marketing efforts. But the firm was originally formed to design sites that would have let employees communicate internally.

“That was the one big thing for us - don’t fall in love with your original idea,’’ she said. “We were formed to build a completely different application, but then a client had a suggestion that ended up being a better idea. When you own a small business, it’s your child and you tend to get defensive, because you feel you know better. But you have to listen.’’

Hessan said small businesses not only have to listen to customers, but value them as well. “We really focus on our customers, especially our early ones,’’ Hessan said. “Your first customers can end up being your best sales people.’’

Likewise, Hessan said a successful business owner will always be open to new ways to think about their company and the way it operates.

“When you ask people why they’re successful in business, or what that one moment was that changed everything, the answer is usually that moment where they met the right person on the plane or had that key idea in the shower,’’ she said. “But it’s not usually when they sat down and wrote that great business plan.’’