When we decided to locate our global business services firm in Indianapolis, we had a hint of the possibilities for growth. Now, we are finding out the realities.
In the last 4 months, our firm has taken on several projects that have expanded our geographic and industry portfolio. From global supply chain management to medical device to wine distribution, we have had the opportunity to help our clients develop and refine their business models and execution of those models.
For our team, we have had to evolve our models to become more aligned with the needs of our clients. Many times you may hear the advice to evolve you model according to demographic trends or economic trends. This is not bad advice.
In fragile and prosperous times, I would place a vote for evolving your model to be in tune with those organizations that keep your business in business...your clients. Without clients (read: paying clients), you don't have a business. You have an idea.
How has your business evolved in the last 6 months?
"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
I'm often asked, "what is a network orchestrator?". It is not a concept that I created from thin air. As the network orchestrator of a global business solutions firm, one of my primary goals is to help our clients understand that network orchestration goes beyond connecting people at a business function.
One of the best explanations of a network orchestration is presented by Dr. Victor K. Fung, Dr. William K. Fung and Yoram (Jerry) Wind in their book, Competing in a Flat World. In the book, they examine the role of the network orchestrator related to focus, management and value creation. The network orchestrator focuses on the following in comparison to traditional methods:
1. The complete network in the firm vs. the firm. 2. Empowerment of the components of the network vs. rigid controls. 3. Creating value through integration vs. the command and control method.
At S4X, we do not own manufacturing plants. We do not own distribution centers. We are not investment bankers. We are not a law firm. Although we have a location in Indiana, we are not an Indiana Life Science company.
We create solutions for our clients utilizing a global virtual business network. We orchestrate the formation or a specific network for a given client situation. The result is a flexible solution which can be short-term or long-term. All the components of the solution work to create a true client centric solution because we focus on the client situation versus the individual needs of the components.
Think of S4X as the guest conductor for an all-star jazz band at an international jazz festival. We work to bring the various talented musicians to create a beautiful melody for the audience.
To tweet or not to tweet, that is the question for business leaders.
I've heard some people say that Twitter is a waste of time. On the other side of the table, the opinion is vastly different. I will not go into the details of using Twitter as a strategy for online social networking to create business solutions. In my opinion, it is a simple decision. If you want to be a part of the conversation about your company or organizaiton, you should be using Twitter.
As the leader of a global business services firm, I tweet for a couple of reasons. First, I want to share my thoughts on topics related to our clients. As a result, I receive feedback that could be helpful to our clients. Second, I follow people who are actively involved in running businesses. Yes, you can learn from your peers. Overall, Twitter is a useful tool to achieve our goals at S4X. By the way, you can follow us at S4X on Twitter.
Are you using Twitter? How has is impacted your organization?
Managing the relationships during business formation is just important as managing the process.
We are currently working on a project involving multiple co-founders. All of the partners bring specific expertise to the project. What I find most interesting is the dynamics of the relationships between the co-founders and the between the company and external businesses.
For example, the company is working with business investors in Indianapolis and outside of the U.S. The Indianapolis business relationship and the non-U.S. business relationships are similar regarding the business discussions. The difference is the cultural aspects of the interactions. The management of the cultural aspects requires a little more patience than the business process.
On an internal level, the co-founders each have different viewpoints of the same business issue. Some are very detail-oriented while others are focused on the macro-level. We view this as a good situation for the company. That being said, the conversation still must be managed properly in order to accomplish the micro and macro goals.
How do you mange the relationships in your organization?
"...if you get the culture right, then most of the other stuff follows." - Tony Hsieh, Zappos.com CEO
I just finished reading The Zappos Way of Managing on Inc.com. Most of the article talked about the culture of Zappos. What struck me was the focus on happiness by Tony Hsieh. Too often, happiness is given lip service with regard to business. I agree with Tony (and not just because we share a similar name) with regard to happiness.
If you are not happy in your current position, will you be productive in your role? From an ownership and management level, if your staff is not happy, how will that impact customer service and your bottom line? It may not be high on your priority list. Business solutions built on a culture of happiness will ultimately make a positive impact on your company.
Great example of happiness and business is Action Wipes and Martha Van Inwegen. Recently, she had an issue with the production of a new line of products. Due to Martha's culture of happiness, she addressed the problem. The solution combined with business social networking has resulted in lemonade for the troops (see "Let's Make Lemonade" post).
Happiness is a choice for your business. Are you going to make it?
This morning, I'm heading out to run the 500 Festival Mini-Marathon. After weeks of training, it all boils down to left, right, left right.
I'm thinking that training and running a race is no different than preparing for funding your company. Business funding in Indianapolis or any other city involves the same discipline and persistence.
There will be positive days and negative days along the way especially if you are in a project involving business formation. As a business consulting firm, we see the training from an outsiders perspective.
Our advice: Stick with the training. When you cross the finish line, you will appreciate all the work along the journey.
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
As a business consulting firm, we are currently involved with the creation of a supply chain management company. When I say supply chain, I'm describing a business focused on warehousing, fulfillment, logistics, transportation and the underlying technology. Going through the process of educating myself about this industry has given me a deeper respect for the connection points necessary to make a business run.
Most companies tend to think that the most important supply chain is the one which helps achieve a client interaction. What about the supply chain that helps a company function. Have you ever though about what it takes to get that pen you are using to your office and into your hand? Here's a clue: it doesn't just magically appear at Staples. Whether you are an Indiana life science company or a marketing firm from South Africa.
What does your internal supply chain look like? Do you manage it the same as your client-facing supply chain?
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing.
We are currently working on a project for a medical device start-up in Central Indiana. The scope of the project involves formation of the supply chain for the product to get to market.
During our initial conversation with the client, we discussed the potential for outsourcing the manufacturing to places outside of Indiana. I know that many of you are not happy with outsourcing in its various forms. In my opinion, I think that outsourcing can be the key to the growth of a business. The focus of the business should be on its core expertise. All the rest, you need to outsource.
Fortunately, we are working with our Indianapolis business relationships to keep the initial launch local. As a global business consulting firm, we could have worked with our partners outside of Indiana. We decided to outsource locally to control the initial process.
Is your company focusing 100% on its core business?
A non-scientific review of Indianapolis business trends reveals that technology companies are growing despite the economy. Now, I'm not selecting the technology industry to suggest that everyone should switch to that industry.
As a business consulting firm, we use technology but are far from a technology company. One of our partners, Dave Castor at Alerding Castor, keeps our team informed about technology.
I just think that other industries can learn from the technology industry. Whether your firm is a manufacturer or a business services organization, the lessons from the technology company can help you.
I could use examples from our company or our clients but I thought I would a share a video clip which prompted my thoughts on this subject. Although David Lawee, VP Corporate Development at Google is speaking about business formation issues related to technology, he presented two themes that resonated with me and probably will with you as well.
#1 - Passion, Partnerships and Speed #2 - Maximize time and people resources
We all use technology in our organizations for-profit and NGO alike. What can you or have you learned from those organizations that create the technology you use?
The time for complaining about the economy is over. Whether you are a start-up dealing with business formation issues or a existing company looking for ways to grow your business, it's time to walk through the door.
Business owners need to take a step back from the noise and review the landscape. Broadly speaking, business are failing and people are losing jobs. Upon further review, some businesses are failing due to bad management or lack of investing in their infrastructure during the good times. If your organization is looking to survive or grow, you may want to explore strategies outside of working with banks or grants for funding sources to assist with growth.
For example, one of our clients, a start-up, is working on closing their first round of funding. They will use the funding to begin production of their product. In concert with the funding round, they have secured LOIs (Letters of Intent) and other agreements which will generate revenue in their first year. As a potential solution, we have been approached by and are in talks with several marketing firms which can make the investment. The marketing firm would be the strategic partner and investor. The revenues of both companies are projected to benefit from this partnership.
Although we are a business consulting firm based in Indianapolis, we are observing the success of alternative business models from Seattle to South Africa.
Have you been successful with strategic partners investing in your business?
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the National Clean Energy Project forum is being held in Washington, DC. This forum is a follow-up to the National Clean Energy Summit.
From a corporate development standpoint, this will present an opportunity for those companies willing to get connected to the grid. By "grid", I'm talking about the technologies, organizations and funding sources that will help to change the energy infrastructure paradigm.
We are currently working on business development opportunities for a client in the energy management sector. Their technology connects the suppliers, consumers and the energy markets. This is one example a business opportunity.
Regarding funding, several top VC firms are looking to invest in clean energy including Kleiner Perkins (KPCB GreenTech Team). Multiple funding sources may add in business formation efforts.
As a business consulting firm and network orchestration firm, we are fortunate to be on the front line of the clean energy movement. Yes, clean energy is good for the environment but it can also be good for the growth of your business. I think the rhetoric is about to take a back seat to action by mutliple sectors. Will your company be connected to the grid..the action?
During the last four days, we have been working on four new private equity projects. Yes, deals are still being done. These projects range from $7 to $100 million. The industries represented by these projects are information technology, commodities, life science and hospitality.
The point I am trying to make is that despite the gloom and doom in the news, many companies are still moving forward and growing revenue. From emerging markets to a virtual business, we are assisting our clients through the private equity process. Even in the hospitality sector where the demographic trends suggest many negatives, our clients are selecting opportunities to position themselves to benefit down the road.
By understanding that private equity has not gone away, many small and middle market firms have an opportunity to capitalize on the crisis. Our strategic partner, David Castor, spells out some of the nuances in his blog series on private equity.
We enjoy working with our clients on these types of projects. Not only does the revenue increase but jobs are retained. That is really exciting.
Is your company looking for opportunities for growth? Contact us to learn more about finding your equation for growth.
Typically, I use this business blogging forum to discuss corporate and NGO related topics.
I wanted to take a moment to discuss something going right with the U.S. government. With all of the conversation surrounding lost jobs, one governmental agency is doing its part to help. That agency is the FBI.
In two articles this week (CNNMoney.com and Reuters.com), I read about the FBI hiring in excess of 2100 new employees. The hiring initiative includes field agents and professional staff. Both articles state this hiring initiative represents one of the largest in the history of the FBI.
As economic issues, online communities and global demographic trends continue to change, organizations similar to the FBI will be in need on more personnel. Just as the phoenix rises from the ashes, turmoil and crisis can create opportunity.
If you were downsized, have you checked out the FBI as an option? If so, what has been your experience thus far?
This week, I continued my annual ritual of reading The Four Agreements by Don Miguel Ruiz. For the past 4 years, I have taken the time at the beginning of each to read the book to remind myself about the lessons that can be learned from this book. The book is focused on the following personal agreements made by an individual:
1. Be Impeccable With Your Word 2. Don't Take Anything Personally 3. Don't Make Assumptions 4. Always Do Your Best
I understand that life and business can be complicated. With that being said, I think the four agreements in this book can be useful for personal and professional reasons. From a business perspective, the agreements can help to create a sustainable culture for your company.
I mention culture for a company because the culture is often overlooked during strategic planning sessions. Additionally, culture will trump strategic implementation every day of the week.
Whether you are a business development professional or a social entrepreneur these agreements can assist you.
Do you have an annual activity to begin your year?
It is often said that your reputation is defined by your community and the company you keep.
As
a global business consulting firm, we are fortunate to work with a
phenomenal community consisting our clients and partners. Although the
confidential nature of our relationships prevents me from mentioning
our entire community, I want to mention a few companies that have made
2008 a great year for our team.
Our relationships with our virtual business partners including the entrepreneurial business law firm, Alerding Castor, and the creative business blogging firm, Compendium Blogware, have helped us to expand our platform of services and geographic reach. Most recently, we have expanded our reach to Africa.
We look forward to continuing our relationships in 2009.
What do you want your equation to look like for 2009?
I've been reading a few new books lately. While reviewing my notes from Thirteen Days by Robert F. Kennedy, I was reminded of the lessons that can and should be learned from alternate sources.
In the book, a quote from Basil Liddell Hart is mentioned with regard to proper negotiations.
"Keep strong, if possible. In any case, keep cool. Have unlimited patience. Never corner an opponent and always assist him to save face. Put yourself in his shoes--so as to see things through his eyes. Avoid self-righteousness like the devil--nothing is so self-blinding."
Although this quote refers to military-related negotiations, the lessons are transferable to other industry settings. For example, one of our current projects for a client includes business formation activities and negotiating licensing agreements for their patented product. In order to complete these agreements, we must follow some of the lessons from Mr. Hart's quote.
In another situation, we have been retained to consult on an equity raise for an Indiana life science company. During the raise, we have to always consider the situation through the eyes of our investors.
As a global knowledge management firm, we also encounter the complexities of international negotiations which include the need to understand the cultural differences. This is especially true while working in emerging markets.
What lessons have you learned from your negotiations?
The use of the correct words to convey your company's message is paramount. This is true whether you are crafting a blog post for online social networking or attending a meeting for one of your business networking groups.
We have started to use a new tool (thanks to my attorney - Dave Castor) to assist our clients with crafting a consistent message. Along with all the other tools on the market, we have found Wordle to be a simple tool for quick check up. Of course, we also utilize the Wordle program. In a world or exponential amounts of information, a consistent message is key. The image above is the most recent snapshot of our blog. We are happy to see that our focus areas are represented including clients, business consulting and international/global.
Have you used Wordle in the past? If not, you may be surprised by the results. What are you really saying to your clients and partners?
The temperature outside has dropped 30 degrees in the last 24 hours here in Indianapolis. With the frigid temperatures and strong winds, a strategy from staying warm has to be implemented. One of the key strategies is to dress in layers rather than wearing one big coat.
In business, we are all experiencing a change in the weather. If we try to use a one-size-fits-all solution, we may not be able to weather the storm. We prefer to advise our clients on incremental solutions similar to wearing layers of clothing to protect yourself from the cold weather. You've heard about the principles of Kaizen and Six Sigma. For those that don't know, Kaizen focuses on ocuses on continuous improvement. Six Sigma focuses on improving processes and eliminating defects.
As a business consulting firm, we help our clients (including virtual business clients) to implement the components of these principles that work for their given industry. From a law firm to an Indiana life science company, we partner with our clients to develop incremental solutions which can help to provide stability in a time of "quick fixes".
When the winter temperatures hit our area, we prefer to use layers and dress for long-term warmth. What does your winter clothing look like?
With all the doom and gloom news about the current global economy, I think there is not enough discussion about the education of the children who will and are growing up in this era of change.
Global education issues continue to be impacted by a lack of funding sources. As a result, the youth will be impacted without even having an opportunity to assist with solving the problem.
Corporations and governments are concerned about the quick fix for the current problems without investing in the real drivers of a stable future - the education of our childern. To be fair, there are several international education organizations such as the Bill & Melinda Gates Foundation and Global Education Fund working to solve the problem.
I think it is time for more public-private partnerships to invest more time and money into our educational systems. Without well-trained and well-rounded youth as the next generation of the workforce, we will have even more problems in the future.
Does your company promote a better education system?
Shortly after I posted the post about our new division, I received an email from Twitter notifying me that "PlayPumps Intl (playpumps)" was now following me. I didn't know what to expect but I was pleasantly surprised. PlayPumps International is combining one of the joy's of being a child with the benefits of physics and good marketing.
According to their website, PlayPumps International’s mission is help improve the lives of children
and their families by providing easy access to clean drinking water,
enhancing public health, and offering play equipment to millions across
Africa.
This organization combines global education and business to solve one of the most serious global issues (not to discount the capital market issue). If you still don't think that online social networking can benefit your organization (for-profit or NGO), you are missing the proverbial boat.
When we decided to locate our global business services firm in Indianapolis, we had a hint of the possibilities for growth. Now, we are finding out the realities.
"Companies don’t compete against other companies. Networks compete against networks." - Competing in a Flat World
To tweet or not to tweet, that is the question for business leaders.
Managing the relationships during business formation is just important as managing the process. 
"...if you get the culture right, then most of the other stuff follows." 
This morning, I'm heading out to run the 
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing. 
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the 
During the last four days, we have been working on four new private equity projects. Yes, deals are still being done. These projects range from $7 to $100 million. The industries represented by these projects are information technology, commodities, life science and hospitality.
It is often said that your reputation is defined by your community and the company you keep.
With all the doom and gloom news about the current global economy, I think there is not enough discussion about the education of the children who will and are growing up in this era of change.
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