Mark W. Legg
Biggest Professional Accomplishment
American Reprographics Company IPO in February 2005. Going public allowed the company to de-lever its balance sheet and payoff mezzanine debt, which set the stage for a period of impressive growth. During the three years after the IPO, the company’s revenue grew 55% and pretax income increased 192%.
Largest Opportunity for 2009/2010
During any recession, I have always focused my attention and resources on the opportunities that a downturn offers an enterprise. 2009 was no exception. The opportunities are fourfold:
1. As painful as it may seem, you will most likely have to trim your workforce. This is a tremendous opportunity to remove the non-performers, the employees who fight the organization at every turn, and the disenchanted that just do not “get” the business strategy.
2. Obtain better terms and pricing from vendors. This is the perfect excuse to renegotiate all vendor agreements. Expand your scope beyond production materials – take a look at everything on your cash disbursements ledger: communications, ITS contracts, audit fees, legal expenses, office supplies, etc.
3. Develop a “back to basics” business strategy. Trim unprofitable operations, customers, vendors, and product lines. Harvard Business Review published a piece titled Strategic Renewal which includes effective downturn advise and guidance. I’ve referred back to it often and would encourage any CFO to get a hold of that article and use it.
4. Take advantage of your competitors’ confusion and lack of focus to aggressively increase your market share particularly while they are distracted by restructuring their own businesses. During any downturn, most of your competitors are not providing appropriate customer service. They are too busy trying to survive and restructure. Now is the optimal time to pitch your products and services to your competitors’ customers.
Word of Advice to Fellow CFOs
Stay focused on employees. They will always be the difference between success and failure. I take a three step approach to leadership:
1. Communicate – maintain an open door policy. Have weekly staff meetings that are participatory. Make sure all employees understand the goals and strategies of your organization. You can’t get people pulling in the same direction if they don’t understand what that direction is.
2. Educate – institute a formal education program. I’m not talking about bringing in outside business professionals to tell your staff how to do their jobs. Have company officers and executives teach different topics, including: your business strategy, economic outlook, financial basics for employees not in financial areas, and sales techniques. Use real world (for your company) successes to drive key points home.
3. Motivate – never forget that people work for three reasons, in the following order of importance:
a. Recognition
b. Sense of achievement
c. Economic rewards
When your team has a success, give credit to your staff. When your organization has a failure, step up and take responsibility.
Favorite Sport, Hobby or Passion Outside of Work
I’m a private pilot. I find flying to be a great stress reliever. While flying you don’t have time to worry about anything outside of your responsibilities as pilot. I also enjoy golf very much. It is a sport that can be played while enjoying good conversation.
Favorite Movie
Twelve O’Clock High – great film, great story, and a good dissertation on managing operations in a stressful environment. The movie is a great treatise on disparate management styles within an organization.
Must Read
Barbarians at the Gate by Bryan Burrough and John Helyar. It’s an engaging book about the leveraged buyout of RJR Nabisco and a good example of how avarice can cloud business judgment.
Proudest Moment
The birth of my two sons.
Best Vacation
Cayman Islands 2009. Ritz Carlton. Seven Mile Beach. Great location, great scenery, and lots of water sports.
Guiding Force/Inspiration
Always remain true to your values, both inside and outside of work. No amount of money will ever be enough to compensate you for such a compromise.
Legg on the CFO Roundtable Program
“The CFO Roundtable allows me to stay current in all areas of financial management. It is also an excellent way to network and find the right talent for your organization. The quarterly topics are timely and interesting. Great organization.”
In addition to his corporate responsibilities, Mr. Legg serves on the San Diego Advisory Board for the Cushman & Wakefield CFO Roundtable at The University of San Diego. Prior to moving to San Diego, he was proud to serve on various charitable financial councils including work for the Archdiocese of Los Angeles, where he was a trustee for the Diocese’s investment fund.
MARK W. LEGG
SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
GENERAL ATOMICS
Mark Legg currently serves as Senior Vice President and Chief Financial Officer at General Atomics, a leading technology, mining and defense contractor headquartered in San Diego. He brings more than 30 years experience in domestic and international management, operations, finance, and logistics to the company.
Prior to joining General Atomics in August of 2009, Mr. Legg served for nine years as Chief Financial Officer of the American Reprographics Company, a $600 million information management, digital printing and software company. He was responsible for all finance and administrative functions and established the financial infrastructure to support the company’s 2005 IPO and successful SOX compliance in 2006. During Mr. Legg’s tenure at American Reprographics, the company grew 600% through acquisitions and internal growth. Its IPO was recognized as one of the 10 most successful in 2005.
Before his tenure at American Reprographics, Mr. Legg spent 11 years at Vivitar Corporation, an international photography and technology firm with operations in the United States, Canada, France, Germany, Britain, Japan, Hong Kong, and Singapore. Mr. Legg served as Vivitar’s CFO and COO.
Mr. Legg holds an undergraduate degree in accounting from Santa Clara University and earned an MBA in finance and management from the University of Southern California. After graduation, Mr. Legg began his financial career at Price Waterhouse where he specialized in assisting companies with their initial public offerings and SEC compliance.