Made in SG: Businesses Breaking Boundaries Through Asia

SMALL STEPS, BIG DREAMS (APP SYSTEM SERVICES)

Dennis Li

[Service Manager, Cryogenics/Radio Frequency Plasma Generators (RF) /Mass Flow Controllers (MFC)]

When it comes to business, some think it’s easier to follow in someone’s footsteps instead of being a trailblazer. But, as Dennis Li – Service Manager for Cryogenics/RF/MC at industrial distributor and repair service provider APP System Services – knows, that’s not always the case.

Second-generation entrepreneurs may not have to struggle to get the business off the ground, but they must shoulder the equally weighty responsibility of continuing the business’ legacy. They must also deal with the inevitable expectations, comparisons and doubts from others and from themselves. While the journey hasn’t always been easy, Dennis is taking it all in stride, determined to prove himself worthy of taking APP System Services to new heights.

Dennis and his father at a formal event

It’s common for young scions of entrepreneurial families to have their career paths all laid out from the beginning, but not Dennis. Despite completing a two-month internship in APP Systems Services, founded by his father and uncle, he found little enjoyment in his work. So, upon completing his Bachelor of Mechanical Engineering at the National University of Singapore, he ventured out and joined SMRT Corporation as an Executive Engineer.

Dennis spent a productive two years at SMRT, implementing new software policies and processes, as well as supporting the Singapore public transport operator’s digitalisation roadmap. However, he felt dissatisfied and sought deeper meaning in his work. At the same time, his father continued to seed the idea of his return to APP Systems Services.

Eventually, the seed took root and bore fruit. Since my dad and uncle started this company 40 years ago, I felt it would be a waste if I didn’t at least give it a shot and see if it was a worthy endeavour. There was a certain sense of duty to begin learning the trade from my dad, said Dennis.

Of perception and politics

Dennis returned to APP Systems Services in late 2018 and began from the ground up as an Operations Engineer. Prior to joining, he was beset by a case of the nerves: There was immense pressure on myself. I felt that there would be a lot of expectations because I’m the boss’ son and people might think that I should know everything. Would I be able to do a good job? That was on my mind a lot, he said.

The warm reception Dennis eventually received, especially from co-workers who remembered him from his internship, helped ease his mind. However, APP Systems Services required a more hands-on approach in comparison to SMRT, where his theoretical knowhow was the focus. The transition was intimidating. You think you’ve reached a certain level of expertise because you’ve accomplished some things in your career. Then suddenly, you must start from zero again. It wasn’t a good feeling and I really had to suppress my ego. But thankfully, it became easier over time, he said.

Realising that there was nothing for it but to buck up and buckle down, Dennis threw himself into work, trying to learn the trade from the inside out. While his father played a major role in improving his theoretical understanding, he credits the generosity of the long-time engineers in the company for his growth, as they became his erstwhile engineering mentors.

Yet, as his leadership responsibilities mounted, the ensuing dynamic shift also became tricky for him to navigate. It was very heartening that they didn’t hold back in teaching me anything. But when I rose up the ranks faster than them, it became strange because the person they taught was now their superior.

Dennis with the RF workshop team

This wasn’t the only aspect of office politics Dennis had to deal with. An easy-going, empathic person by nature, he naturally gravitated towards conciliatory and win-win approaches where possible. However, after a few instances of people trying to exploit his relationship with the company’s management, Dennis realised that his father’s advice about having to draw lines was well-founded.

It’s a hard truth that in my position, you can’t be too close to people and sometimes you can’t care what people think about you. As I climbed the ranks, it became difficult to draw the line between business and friendship, he said. I’ve learned that it’s important to stay focused on getting the work done, but at the same time, it’s also important to always treat others with respect. Pleasing everybody and being known as the ‘fun’ guy doesn’t help get anything done. Nobody will respect you. What people really want to see is your ability.

Managing expectations

During Dennis’ early years in the company, his father took a more active role in mentoring him. He constantly urged Dennis to achieve more and progress faster. While Dennis initially found this stressful and stifling, he feels now that it was also a form of motivation. Within three years, he developed new and more productive cryogenic pump servicing procedures, improved existing chiller evaluation processes and led the drafting and fabrication of in-demand components to reduce costs.

It wasn’t long before Dennis was ready for leadership. He was asked to take over the management of three workshops – cryogenics, RF plasma generators and mass flow controllers. Combined, these were the highest-earning divisions in the company. It was an unprecedented ask. No single person had ever managed two, much less three workshops before. However, Dennis leapt at the chance. In the army, I developed a ‘never mind, just suffer’ mentality. I believe that you can never be prepared for anything, but you should always get out of your comfort zone. So, when my dad asked, ‘Are you ready to take over these departments?’ I said, ‘Yes.’

Management came with a new set of challenges for Dennis. He had to find his leadership style and learn how to manage talent, improve existing processes, balance his family relationships in and out of work and strive for work-life balance. Some changes were simple: Dennis opted for a flexible management style and chose to work alongside his team instead of above them, which created a good working relationship within the team.

Others, however, were more difficult. On multiple occasions, Dennis wrestled with the age-old managerial question: when an employee wants to leave, should you try to keep them? It’s often easy to see an employee who wants out as being disloyal, and so Dennis’ knee-jerk reactions to such scenarios was to refuse. However, counsel by his father and uncle eventually made him realise that he needed to approach the problem differently.

My uncle asked me two questions: is that person a good person and someone that you need? If yes, then there’s no point letting that individual go. I realised that there were many advantages to keeping a person in the company, especially to protect ourselves as an SME. I didn’t think about this until they shared their perspectives with me, he said.

It also wasn’t easy to work alongside family. At times, work disagreements would bleed into the personal relationship between Dennis and his father, which was difficult for Dennis at the beginning. Now, however, he learned to draw the line. We do get into heated arguments in the office, but if we go home and don’t talk to each other, it’s just going to fester in our minds. So, I try to separate things as much as I can. I’ll be the first person to let things go at the end of the day so that it’s easier for him to put it down too. It’s important to try and resolve differences on the day itself.

This experience has gone a long way towards strengthening Dennis’ relationship with his father, which was more distant in his childhood. When the company first started, my dad often stayed in the office late, travelled a lot and did many things himself. He provided for us well, but I was young and couldn’t connect with him at all. Since working with him, I’ve gained a much deeper appreciation for what he’s done for the family. I’m glad I joined the company and I’m grateful that I managed to close that gap with him, he said.

APP System Services’ official headquarters in Singapore

Maturity through experience

Two years after his managerial leap of faith, Dennis is already delivering results. Last year, APP System Services achieved its highest-ever revenue – and Dennis’ product groups were the main contributors. It’s a point of pride for Dennis, who believes it reflects his teams’ faith in him as someone who can make things happen. However, he isn’t about to sit on his laurels; he’s hungry for more success.

As part of his constant quest for self-improvement, Dennis joined ELT by NUS to learn from other business leaders and get their perspectives on common business problems. It’s reassuring, he says, to know that he’s not alone. They’ve shown me that there are people who have been in the same situation and experienced the same struggles as I have. I find the stories of people who built something from nothing particularly inspiring; they tell me that there’s always room for the driven to achieve their goals.

Seeing the value of an experienced perspective has taught Dennis more patience and humility – a far cry from his younger know-it-all years. That’s why he’s grateful to the programme for helping him reframe his mindset and see the bigger picture. I always try and imagine: what would a boss think? What would my dad and uncle think? There’s always wisdom to be gained from those who are more experienced, and it’s up to us successors to open our minds and listen.

Dennis with the Cryogenics workshop team

As a second-generation owner, I need to consider the company as a whole and account for holistic growth as part of my decision-making. Individual product leaders might only care about their own operations, but I will even take opportunities that are difficult and not within my scope if it can help the company overall. Over time, my team saw how we contributed to the company’s performance and they are motivated to do better, he said.

Reaching towards the future

Even though Dennis still considers himself an ‘infant’ in terms of managerial experience, it hasn’t stopped him from dreaming big. He already has his own measure of the company and hopes to translate its stellar local performance into regional success. Growth and expansion are firmly on his radar.

My senior advisor told me: Always remember who you are. That profoundly resonated with me. I’m someone who’s more momentum-based and wants to continue progressing and pushing for new things. I always try to look forward and think about what we can do next and do better. That’s the mentality that an owner should have, he said.

When the day comes for Dennis to take over from his father, he knows that he will have big shoes to fill. When I joined APP System Services, people only had good things to say about him. The sheer amount of respect he has didn’t just come from him being the boss; it came from sacrifice, time spent in the craft, deep technical knowledge and his drive to push the company further. He’s 73 and still working very hard. This is really his passion, and I relate to that.

But the most important thing, Dennis says, is to try. There are many things that you just can’t learn until you’re in the situation yourself. Once I start doing things on my own, I’ll really learn what I’m made of. It doesn’t matter whether I do it well or not. There’ll always be doubt, but I’m not going to think too much about it. I’m just going to do the best I can.

STRENGTH THROUGH SPIRIT (BENG HOCK MECHANICAL ENGINEERING)

Fion Leow

(Finance/HR)

Kenji Leow

(Chief Executive Officer)

Many entrepreneurs start their own endeavours for several reasons: they want to create something of their own and/or explore a new business idea or they simply prefer not to work for others. Kenji and Fion Leow, however, fell into entrepreneurship quite by accident. What was meant to be a temporary stint to help get a new family business – Beng Hock Mechanical Engineering (Beng Hock) – off the ground, quickly turned into a decade-long entrepreneurial journey.

Common traits of successful founders include an iron will, a never-say-die mentality and an unshakeable belief in the strength of their team. Despite grappling with low profit margins and industry inexperience, the resolute faith between the siblings and their family has been the north star guiding their way. That faith has helped them navigate the uncertain seas of reinvention and diversification, ultimately emerging into calmer skies and clearer waters.

Beng Hock’s top management team

When Fion’s husband and father joined forces to found Beng Hock in 2010, she decided to leave her banking career to help the fledgling business take off. At the time, the company operated as a heavy vehicle service and repair shop. Fion managed finance and administration, while her husband and father led operations and strategy with just three engineers.

Fion soon discovered how challenging it was to be a newcomer in a traditional, labour-driven industry. The hours were long and the conditions were rough. Plus, Beng Hock had neither the track record nor network to truly challenge established incumbents with decades-long histories. Even after her brother Kenji Leow came on board as the General Manager (GM) in 2012, Fion candidly admits that the family business struggled for the first few years.

Pricing in this industry was very difficult. Businesses in this line don’t increase prices to keep pace with inflation. In fact, they have a habit of slashing prices to keep their customers. That’s equivalent to cutting your own throat, she noted. "Our profit margins were extremely miserable – as low as 2 percent – because labour cost was high and parts were expensive. When my father calculated our net earnings, we found that what