David Kingland Lecture (2004)

David J. Kingland President, CEO and Chairman of the Board of Kingland Systems Corporation

David Kingland earned a degree in Industrial Administration from Iowa State University and began his career as a professional audio engineer. He later moved into the field of financial services to create a stable lifestyle conducive to raising a family. He worked as a stock broker with a NYSE firm and learned valuable selling and entrepreneurial skills. After three years with this firm he began to see a wide open market in banks. He had an innovative idea to start a company to service banks and help them break into the brokerage business. Kingland Systems came to life when David Kingland realized that instead of selling to small banks they could sell their software to big banks. His first jobs were for Bank of America and Fidelity.

Kingland Systems is based in Clear Lake, Iowa with branches in Ames and Lake Mills, Iowa and in Rochester, Minnesota. However, they have no customers located in Iowa or the Midwest. "We are proof that you do not need to leave the state to start a high technology business where you deal with global fortune 100 companies," he stated. They solve business problems using technology software in two main areas. The first is in the auditing field working with such companies as Ernst and Young and Deloitte. This area of business didn't exist five years ago. The second area involves working with banks in financial services. Since Kingland Systems is a technology based business, they are in a constant state of change and flux. They work with companies in 80 countries, with more than 75,000 online professionals using their network.

David Kingland's approach to business has helped his company and others remain strong throughout many years. He believes strongly in a diversified revenue stream. He realized this when his company felt the wrath of September 11 along with the rest of the economy. Eighty percent of its revenue disappeared after that terrible day. This is when Kingland made the decision to shift to the business of assisting auditing firms through compliance solution to help them stay out of regulatory trouble. This shift helped to completely replace all revenues that were previously lost. "We believe in diversification, otherwise you can't be here for the long haul," he advised listeners.

Kingland believes you must internally fund and staff businesses that you want to own long term. At one point Kingland sold 18% of his company to Payne Weber, their biggest customer at the time. It turned out to be a conflict of interest. David bought it back and has remained internally funded ever since. He also believes it is a great thing to invest in businesses that have a good idea and a strong management team supporting them in a strategic investment. "That is the benefit of being small and entrepreneurial," Kingland said of the deals he has been able to make in a venture capitalist role. Kingland Systems has provided software, infrastructure and money to many small businesses in their same field.

Later in the lecture he described four strengths that Kingland Systems has found over the years that have kept them prosperous. 1) A great team of professionals supports the goals of the company and creates new ideas. 2) Using money and capital to invest in new ideas works to make new business relationships. 3) A network of amazing people provides support to the company. 4) Kingland Systems has a strong relationship with IBM because of various subcontracting opportunities. A track record of successfully building and running global centers brings in new business and profits.

In addition to his public lecture, Kingland attended the Grand Opening of the Entrepreneurship & Innovation Learning Community as well as visited the New Ventures entrepreneurial class. He also took a tour of the new Gerdin Business Building and attended dinner with several faculty and staff.