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Vested Outsourcing – Part 1

October 4, 2011

Innovators Interview Series with Scott R. Schroeder

Vested Outsourcing is a topic you likely have not heard much about yet. It is an innovative approach to improving the outcome and effectiveness between companies and their suppliers.

It is particularly important to companies that make things themselves or currently outsource production off-shore. We discuss Vested Outsourcing with Scott Schroeder in this two part interview series.

Over the last couple of years I’ve had the opportunity to work with Mega Tech of Oregon (MTO). They are a contract manufacturing company located in Corvallis, Oregon and they have been in business for almost 25 years. MTO works with many high-tech, electronic, consumer product, medical instrument, wood product, aviation, RV and other kinds of manufacturing companies.

Mega Tech of Oregon, 33866 SE Eastgate Circle, Corvallis, Oregon

Because MTO works with differing types and sizes of companies, they have to be very sharp and agile. Like a job shop, they can work on anything from a single component for clients to building and supporting a complete product line. After working with manufacturing companies since the mid-1970’s, I have developed a great appreciation for the hard work and intelligence it takes for these entrepreneurs to succeed in business.

Some of the smartest people I’ve ever known have been from the shop floor. People who carry on the great tradition of  Yankee ingenuity. One such entrepreneur is Scott Schroeder, president and CEO of Mega Tech of Oregon.

Scott R. Schroeder

Scott grew up in Oregon’s forest products industry. His father was CEO of a forest products company and his uncle was the “Oregon State Forester” in charge of the Department of Forestry . Scott spent his school years working around production lines and mill automation equipment. He went on to earn a B.S. in Forest Engineering from Oregon State University.

His professional career spans 32 years managing timber and land resources, production facilities and manufacturing plants, mills and companies. Over these positions, he developed a keen sense of what it takes to make better products with fewer resources. Scott honed this inherent talent for problem solving and productivity into the art of getting the most out of people, machines and systems with a minimum of turbulence and discord.

This summer Scott and his MTO Team hosted a plant tour and a presentation for the Software Association of Oregon and the Willamette Innovators Network. Scott gave a presentation on Vested Outsourcing that was well received. I knew that Scott had a real passion for this new approach to outsourcing having talked to him about it. Unfortunately, I was out of town that week and was unable to attend Scott’s presentation. I asked if he would let Innovational Musings record a conversation with him on Vested Outsourcing as part of our Innovators Interview Series. He agreed, below is Part 1 of that interview.

In Part 1 of our interview with Scott Schroeder he discusses:

  • 00:40 – About MTO and it’s customers
  • 03:00 – How he became interested in Vested Outsourcing
  • 04:55 – Key rules of Vested
  • 05:30 – Rule 1, Outcome Based
  • 06:20 – Rule 2, Focus on the What not the How
  • 08:15 – Rule 3, Clearly Defined Outcomes
  • 10:00 – Rule 4, Recognize Cost/Service tradeoffs
  • 12:35 – Rule 5, Insight not oversight
  • 14:22 – End Part 1

We appreciate the cooperation of Scott Schroeder of MTO and Kate Vitasek of the University of Tennessee for their help with this interview.

Next post, Part 2 – Vested Outsourcing with Scott Schroeder.

Related links…

Vested Outsourcing website

Vested Outsourcing book

Vested Outsourcing videos


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