Ex-air force pros launch Strategen, Inc.

• Author: Jordan, Nancy
• Position: StrateGen Inc.

Alaska's Elmendorf Air Force Base has given birth to many a campaign, but probably never to one as novel as what four creative management types have. The transformation from uniforms to mufti, from a military bastion to a new Anchorage corporation is a unique and already profitable endeavor.

This innovative company is called StrateGen, Inc. It is dedicated to that familiar concept of improving income for its clients. But salient aspects of this particular enterprise set it apart. One is the exclusive process it uses - a combination of analytical systems and computer simulation to produce models of a company's operations. Another aspect, involves the marketing of generic models derived from local businesses - paying them royalties from the model sales. StrateGen selects those businesses whose operating procedures have a broad application potential.

It Started with Jones

The entrepreneurial concept of StrateGen evolved after Ken Jones, a civilian management specialist, arrived in 1992 at Elmendorf as director of quality improvement. A mandate from the Reagan administration had come down earlier to establish quality management, which was proving more difficult for the Air Force than expected.

"The problem, says Jones, "was that the private sector focuses on the customer and on the market. But who is a fighter pilot's customer? In order to implement quality, it was important to recognize that the military's focus is, instead, on potential threats and on planning for that."

With persistence StrateGen progressed on two fronts. Jones was developing and implementing a strategic process management plan for the 11th Air Force, putting into play the theories he developed in his pursuit of a Ph.D. In addition, he visualized building a company that would utilize those theories. By 1994, the dream was taking shape, but would require more than two years of planning and market research.

Today, StrateGen, Inc., with its two-dimensional agenda, is establishing itself in the Anchorage business community at 510 L Street. Three seasoned military pros - Mike Callahan, Harry Kieling and Ken Kline - who kicked ideas around with Jones at Elmendorf, make up the formidable team. Each has his own expertise, but they trade off duties and reach joint solutions, much as they did back on the base.

Jones' exclusive analytical system lies at the heart of StrateGen's structure. It was sired in his 16 years as a financial consultant and nurtured during his doctoral studies and challenges at Elmendorf. He named it linear process analysis (LPA). It is so unique that he has copyrighted it. Jones defines it as "a method to identify, analyze and improve processes that generate net income."

Kline, whose chief assignment is conducting LPA for clients, says the fusion of LPA with computer simulation distinguishes StrateGen from...