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?
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?
I think the mega-mergers and acquisitions that have occurred over that last few months may be creating an opportunity for corporations that fall in the SME (Small and Medium Enterprises) and/or virtual business category.
For example, Pfizer's acquisition Wyeth has created a global pharmaceutical giant. If you are trying to increase profit and a pipeline of business, this looks like a good deal on the surface. However, a couple of major issues include culture integration and decision-making hierarchy.
In the case of SMEs, the strategic implementation process can proceed much faster. By utilizing virtual network partners and by utilizing network orchestration, SMEs may be able to out maneuver mega-corporations.
Sometimes it's better to be the speedboat instead of the Titanic. In today's economy, I think the SMEs need to leverage the power of their nimble networks.
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?
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?
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.
"With the world in turmoil and doubt, the American people, faithful to the values that have always defined America's identity, have expressed with force their faith in progress and the future. At a time when we must face huge challenges together, your election has raised enormous hope in France, in Europe and beyond." - Nicolas Sarkozy, French President (Reuters)
As President-Elect, Barack Obama will become the first African-American President of the United States. With that being said, the focus should not be on his ethnicity. The focus should be on the goals of the campaign and how those goals will shape the future of the United States and with President-Elect Obama's global peers, our world.
The strategic implementation of President Elect Obama's campaign plan was the key to his campaign victory. His campaign stayed focused and did not stray when competitors tried to steer the focus away from the real issues. They utilized online social networking, virtual teams and other online communities to enable people from different ethnicties, religious beliefs and social-economic backgrounds to collaborate for a common cause.
In politics as in business, the great leaders surround themselves with solid advisors. As a leader, President-Elect Obama shifted paradigms by working with and being supported by Republicans including Senator Richard Lugar and former Secretary of State Colin Powell.
The future holds many unknowns for the United States. If President-Elect Barack Obama and his team operate during his term as they during his campaign, the United States will move in a positive direction. Additionally, we must remember that the actions of thousands of people contributed to the success of his campaign. Change will not happen just because Barack Obama is the President-Elect. Every American must continue to take action to make our country a better place.
What are you doing to impact your present and our future?
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?
“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?
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. 
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. 
I think the mega-mergers and acquisitions that have occurred over that last few months may be creating an opportunity for corporations that fall in the SME (Small and Medium Enterprises) and/or virtual business category.
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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