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.
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?
Lately, I have noticed the line between business and social becoming more blurred. In the past, business networking groups were the pure-play. Now, I am observing and participating in more business social networking events. Is this the result of the realization of the importance of solid well-rounded relationships?
I received an email yesterday from a client. The first half of the email was an update on a project. The second half was an invite to my client’s housewarming party. I will definitely be attending.
Dave Castor at Alerding Castor LLP and I met under social circumstances. Since that time, we have forged a strong friendship. Our friendship has enhanced our business relationship on multiple levels.
Of course, you will not be able to close friends with all of your clients. But if there is a choice, I will always choose to do business with people I know on a personal level.
"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?
Making a virtual company work takes careful planning. The major components are relatively simple. Those being attorneys, accountants, C-Level executives and understanding your product.
What if you are an Indiana life science company looking to working with a South Africa life science company? Not only due you have cultural issues, you will also have different regulatory issues to manage. Additionally, how will you ensure the communications are seamless and real-time?
With regard to the communications, we are working with a client to utilize the online social networking infrastructure in a business social networking environment. The goal is to create a collaborative culture and decrease communication cost.
For the regulatory component, our client and partner, Safis Solutions provides excellent advice for ensuring compliance. Gretchen Bowker, Director of Regulatory Affairs and Compliance Services has a great article relating to virtual companies in the October 2008 Safis Solutions Newsletter.
How do you manage the components of your virtual business?
Yesterday, I ran a 10-mile training run. At the beginning of the run, I began to think about the similarities between a running partner and partnerships in business.
Business partnerships can come in the form of joint ventures, distribution deals, co-founders and even virtual business partners. Running partners occur in several forms including a daily running partner, group running and running against/with virtual partners (see Nike+ training system).
My first running partner helped me train for the 2005 Chicago Marathon. He was faster than me but we both had one common goal - finish the 2005 Chicago Marathon. As we trained together, I became a faster runner because of him. He became a more patient runner because of me. As a result, we both finished the race and accomplished our goals. This scenario is similar to the business development efforts of a for-profit partnership or that of a social entrepreneur partnership between two NGOs. Together both entities have a common goal. Along the way, both sides learn and grow from each other while achieving their respective individual goals.
What lessons have you learned from the miles you've run with your running partners?
“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?
Much as been said about the economy and its issues. The major news outlets provide the high-level interviews and articles. I read those articles but rely on something more sensible - my peers, colleagues and close friends. How do we communicate? Online social networking sites and text messages.
I prefer Twitter and Facebook. For instance, I recently received an article about Citigroup divesting one of its divisions in India. The acquirer was Tata. The twist of the deal was a 9.5-year outsourcing contract for Tata from Citigroup. Definitely, a great win for Tata.
Via our online social networking, we have advised our clients and have gained several business formation projects in the last two weeks.
Have you learned to leverage the available technology at your fingertips?
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?
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.
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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