Arguably the most successful New Hanover High School graduate, SAS CEO and founder Jim Goodnight addressed a packed house at the Wilmington Convention Center this afternoon. Goodnight, speaking at the BizTech Conference and Expo, spoke for more than 45 minutes on his business philosophy and the future of the industry and the country.

“The best way to run a company is not putting out poor products or giving poor service. Being a private company gives us that ability to not rush something or make compromises to meet quarterly earnings,” Goodnight said.

He stressed the value of strong employees and the loyalty that stems between employees and customers.

“We try to build an environment where creative people can think. My job is to build an environment where people want to come back,” Goodnight said.

Goodnight traced his belief in private offices and friendly working environments to a job working for NASA early in his career. “I loved the work, but it was like a factory environment.”

Since starting his own company, he believes in individual offices, contrary to many other major employers that install rows of cubicles. To keep aesthetics pleasing at SAS offices, the company invests in artwork on the walls, sculptures and landscaping. The company also invests heavily in employee benefits, offering day care, health care, exercise rooms and break rooms that far exceed other industry competitors.

The heavy investment in employees pays off. SAS is a mainstay on the FORTUNE magazine Best Places to Work list along with other business magazine’s similar lists.

Goodnight explained that employee turnover in the software industry averages around 18 percent, at SAS that figure is 4 percent. Lower turnover increases productivity. According to Goodnight, a Stanford M.B.A. case study identified more than $100 million in worker productivity due to the employee investments.

“Would you rather give the money to our employees or to a headhunter? Besides, the more money you spend on benefits, the less you send to Washington. They just waste it up there.”

Goodnight explained how SAS grew from five employees in the 1970s to over 11,000 worldwide with more than $2 billion in revenues today. Goodnight’s basic business sense stems from his days working at his father’s hardware store on Oleander Drive growing up. He credits his high school basketball coach at New Hanover for teaching him how to work in a team.

Goodnight is proud of Wilmington for successful recruitment of technology companies and thinks the entire country needs to focus on the engagement of K-12 students in math, science and technology.

“It is very important that we continue to innovate. The future of North Carolina is in technology,” he said.

Currently SAS is an industry leader in fighting fraud for credit card companies and government agencies.  The company also manages the loyalty cards at various grocery stores and retail centers of almost 200 million American consumers amongst a myriad of other services and functions.

After the economic collapse in the fall of 2008, many software companies laid off thousands of workers in 2009. Goodnight refused, and promised his employees no layoffs via a web address. In turn, the company saw a 2.5 percent revenue increase and a profitable year.

“Rewarding public company CEOs for laying off people is one of the most stupid things we do in this country. In the technology business, money is important, but the challenge is even more so,” he said.

In the end, Goodnight equates his business philosophy to lessons he learned at his father’s hardware store. He treats his employees well and delivers quality products to SAS clients.

“If you treat people like they make a difference, they will make a difference,” he said.