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?
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.
Currently, we are working on the completion of our planning session for 2009. I often remind our clients the lessons that can be learned from your peers in other industries. This especially can be true with regard to strategic planning.
1) a strategy for greatness 2) team alignment 3) a pragmatic
roadmap of how we are going to achieve our plans within a reasonable
budget.
As a virtual business, we have several partners with which we communicate to provide services for our clients. In addition to the roadmap, we focus heavily on team alignment. Our structure dictates that all the components of our team have a focus aligned with our overall strategy.
Whether the client equation involves emerging markets or social networking, the team has to provide solutions that are aligned from the front-end planning.
I look forward to completing our process and sharing our experiences in 2009.
During your planning sessions, what are your areas of focus?
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?
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.
In our role as a business consulting and knowledge management firm, we assist our clients in several areas including business formation. I'm excited to tell you that we have been working on the creating a new business of our own.
We are finalizing the formation of a specialized division focused on emerging markets in South Africa, Zimbabwe and Southern Africa. We expect to finalize by the end of the year. Due to this expansion, we are welcoming a new member to the S4X family. Brighton Dube will be our Senior Managing Director for Southern Africa Strategic Initiatives.
I'll keep you posted on what the equation for the division looks like. Is Africa in your equation?
“Logic will get you from A to B. Imagination will take you everywhere.” - Albert Einstein
On the recommendation of good friend, I purchased and started reading Einstein, His Life and Universe by Walter Isaacson. After starting the book, I can't help but realize the lessons from Mr. Einstein that can be transferred into business.
From the beginning, Einstein was a curious person with a continual thirst for knowledge. I think we tend to forget in business that there is always an opportunity to gain knowledge. Then, we can use this knowledge to impact our business and clients. Business formation funding is an area where a company could leverage this type of thirst. If you think traditionally (especially in the current environment), the only solution is a bank. Through this thirst for knowledge, you would learn there are many ways to structure funding including private equity. My partner Dave Castor explains the private equity in detail in his blog.
From emerging markets to established markets, this thirst for knowledge can lead to many opportunities. As a business consulting firm, we work to help our clients understand the value of this thirst to their firm's culture. This holds true in a slow economy or fast-moving economy.
What new opportunities have happened due to your thirst for knowledge?
Last night, I spent four hours in a strategic planning session for a non-profit board on which I am chairperson. During the meeting, I was reminded about a few business benefits of participating on a non-profit board. Of course the opportunity to impact the people in my community is never lost on me. From a business perspective, you can learn about best practices for business networking and business development. Additionally, you can learn what not to do in a board meeting for your business.
For the first two items, the non-profit world must constantly get out their message and cultivate donors and volunteers. This is no different than cultivating clients both internal and external.
As for learning what not to do, the lessons can be endless. There are several lessons but two that I think are most important are getting materials out early and board members reviewing the materials. This can ensure a productive and action-driven meeting. One of the best blogs I have read about this area is the Market Mine blog by Penny Herscher, President CEO of First Rain.
A good example of an organization that crosses the line between non-profit and for-profit is the social entrepreneur-driven organization. Have you reached out to one? You may learn something new.
At the end of last week, I had the opportunity to attend a meeting for the Marriott Diversity Ownership Initiative. This meeting introduced me to new terms related to the hospitality industry such as RevPar.
My attendance was due to a client/partner project. This project involves the creation of a fund to acquire limited-service hotels in the Midwest and Southeast portions of the United States. We will then utilize various partnerships to execute acquisitions.
What intrigued me was the level of collaboration by the participants and organizations such asNABHOOD - The National Association of Black Hotel Owners, Operators & Developers, Inc. The environment reminded me of the open source world of the information technology industry. We were sharing knowledge and creating virtual business partnerships through casual business networking. Additonally, I was pleased with the program and how it also focused on our domestic emerging markets as opporunities to create jobs.
In future posts, I will let you know how this project plays out. In the meantime, have you thought about a best practice from another industry that can be utilized in your business?
“IHI constantly found ways of making it easier rather than harder for hospitals to innovate.”
IHI is the Institute for Healthcare Improvement.
The key lessons from this article were interesting in a time of companies trying to "one-up" each other to have the next best thing. Of the six mentioned, the one that resonates with how we run our business was developing tools that ease the burden on people attempting to promote innovation and change. We work internally and externally to create business solutions that are simple to implement. In most cases people are will to change, you jsut need to give them the tool that fits their skills. You wouldn't give a blowtorch to a carpenter would you?
My friend and advisor, David Castor and his partner Michael Alerding at Aldering Castor LP are accomplishing innovation in the legal industry. If they can innovate, then you can in other industries.
The demographic trends are creating a more overburdened workforce. What is holding you back from keeping it simple and creating innovation?
I just read an article discussing, GLOBALITY: Competing with Everyone from Everywhere for Everything, a book by Harold L. Sirkin, James W. Hemerling and Arindam K. Disadvantaged. In this book they discuss the nature of a true global economy and how the companies from the emerging markets are competing on a global scale.
This article made me think about the untapped emerging markets in the United States. While we praise the small business owner, we are not creating an environment for scalable growth. One example is the Minority, Disadvantaged and Women Business Enterprise program. At first glance, the program does exactly what is should - provide opportunities for underrepresented populations.
Upon further review, I think the program actually perpetuates a 2nd Tier mentality. Why be satisfied as the supplier instead of the primary company. If the companies don't have a scalable business development infrastructure as a stand-alone entity, why not incentivize collaboration for growth. It works for the NIH.
Just a thought. With the talented group of small business owners in the U.S., our focus shouldn't be on losing jobs overseas. We should be fostering the growth of new business.
What do you think we can do to change the game? Are you thinking local or global?
With all the talk about economic crisis, one would think that the world is coming to an end. I tend to be a “glass is half full…let’s find more to put in it” kind of person. Just because the markets are in turmoil doesn’t mean that deals are not being done and good products (not just ideas) are being funded.
Most of those deals are happening below the radar. In my opinion, this happens due to a combination of creative minds, economic issues and atypical business networking groups.
The first two drive the product development. I use “atypical” for the third because most business networking groups are very open. Business development and networking activities with a group that is closed can yield excellent results. This group should include people that can make the deals happen without spilling the beans too soon.
A great example is Solyndra. If you haven’t heard about them, you will very soon. They are a startup that has raised $600 million. Check out this post about Solyndra on the Green Wombat blog by Todd Woody. They stayed below the radar and focused on their product and next thing you know…$600 million. This is happening in the current economic crisis.
Are you focused on what can’t happen or what is happening and could happen?
In recent BusinessWeek article titled Why Clean Tech Is Taking Biotech's Shine, the author makes an observation on the linkages between the life science and clean tech industries and the entrepreneurs in each. Although I don’t agree with the complete analysis, I understand the similarities.
The article made me think about the linkages we see from a business consulting perspective everyday. In addition to the common skill sets of our clients. We look to other industries such as the hospitality industry for examples of best practices or transferable linkages. For example, an Indiana life science company’s sales team could learn from a team that serves them while dining at a fine dining establishment such as Moe’s Steakhouse. From touch points to playing a particular role for the particular client, there are many lessons to be learned.
On a more technical level, professional services firms such as a solo practice law firms can learn many lessons from a start-up IT firm. Consider business development. A start-up IT firm will use guerrilla marketing including blogging to make things happen. Forget the yellow pages. The solo practice firm could be successful by using just this aspect of the IT ecology.
Whether you are hiring new people or growing your current market share, you can learn from the indirect linkages you have with other industries. Have you checked out your indirect peer group lately?
During a recent lunch meeting, I met with a couple of partners in private banking. Our conversation centered on helping their clients beyond the private banking services. I mentioned executive office suites. To my surprise they did not know about the concept and business model. I though I would share a little of the information I shared with my partners.
Occupancy costs are an important factor when determining the location of your business. Executive office suites offer a solid alternative to leasing space in a typical office building. In this model, a company leases on a short-term basis (typically 6-12 months) an office space which includes shared administrative services, conference and break rooms and additional services depending on the situation. An example of a executive office suite company is Regus.
We recommend executive office suites to our virtual business, emerging markets and workingarket clients. For those in the start-up or business formation phase, the executive office or virtual office is a good way to establish a business presence.
For our part, we are working with the folks at Regus to establish our offices in South Africa and Dubai. I'll let you know how the process works out for us.
Do you really need all the office space you are leasing? You might want to check again.
“I say to you, this morning, that if you have never found something so dear and precious to you that you will die for it, then you aren’t fit to live.
You may be 38 years old, as I happen to be, and one day, some great opportunity stands before you and calls upon you to stand for some great principle, some great issue, some great cause. And you refuse to do it because you are afraid.
You refuse to do it because you want to live longer. You’re afraid that you will lose your job, or you are afraid that you will be criticized or that you will lose your popularity, or you’re afraid that somebody will stab or shoot or bomb your house. So you refuse to take a stand.
Well, you may go on and live until you are ninety, but you are just as dead at 38 as you would be at ninety. "
Although Dr. King was speaking to civil rights, I think there are business lessons that can be learned from his sermon. Many of our clients are in the business formation phase or beginning to move into emerging markets (domestic or global). The ones that thrive have management and empowered employees that make the tough decisions. They take a stand and move on to the next issue.
As the leader of your organization, are you making the stand?
Everyday the news seems to be getting worse. High gas prices, high food prices, on and on. But as the say goes, "one person's trash...".
In today's economy, there are still deals being done. Yes, the credit markets are tight. That does not mean the economy is stopping its progress. Are you reviewing your strategic plan? From a business consulting perspective, Our clients are looking to global joint venture opportunities, virtual business models and acquisitions to take advantage of the current market
Are you turning your trash into treasure or will another organization do it for you without you benefiting?
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.
OR 
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