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?
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"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.
What does the music sound like in your network?
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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?
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"...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?
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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?
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The door is open.
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?
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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?
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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.
Are you being a speedboat or a Titanic?
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“It is our attitude at the beginning of a difficult undertaking which, more than anything else, will determine its successful outcome.” - William James
While your strategic plan implementation is important, your underlying attitude is the rate-limiting step for positive results.
These days, many of the conversations at business networking functions and across the business social networking sites convey an attitude of scarcity and fear. I think it should be just the opposite.
If your firm is still doing business and you have time to fear, you have time to focus on creating abundance. Instead of fearing a loss of clients, we have been focusing on increasing the depth of relationships with our current clients. After all, business is about relationships on some level.
By focusing on your current clients and how you can help them grow their business, your firm may also benefit.
Attitude is the key. How are you spending your time?
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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 Assumptions4. Always Do Your BestI 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?
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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?
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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?
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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?
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"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?
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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?
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In a recent article in
The McKinsey Quarterly titled
The ergonomics of innovation, one statement was relevant to many of my clients working to "change the game" in their industry.
“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?
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Last night, I read the
"Stop Rationalizing and Make Hard Decisions: Learning from Dr. King" blog post by
Tim Ferriss. In the post, Tim cites a sermon given by Dr. king that I have never heard or read.
In his sermon, Dr. King says,
“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?
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Over the past few weeks, my friend Dave Castor of
Alerding & Castor and I have discussed the virtues of strategic alliances. In my opinion, one of the major reasons for success or failure is lack of real communication.
An good example is the
BioCrossroadsLINX collaboration between Indiana and San Diego. Spearheaded by
BioCrossroads, this project is focused on the Indiana Life Sciences industry. The collaboration allows for both sides to benefit while maintaining there strategic advantages. Through multiple meetings and open dialogue on the proper strategic implementation, this alliance works.
Open communication is only one part of the deal. I watched this quick video from the folks at
The Deal.com this morning that helps with the other key business issues.
I'm in the middle of reading
Barbarians at the Gate: The Fall of RJR Nabisco by Bryan Burrough and John Helyar. Unlike many business books out there, this book is a history lesson as well as a great story on the work that goes into making a deal happen.
One of the more interesting themes in the book is the value of strong social networks and how they relate to strategic plan implementation. In the book, F. Ross Johnson leverages his relationships to accomplish most of the deals he completes.
Another theme is exemplified by this description, "After dominating the cigarette business for so long, the Reynolds line executives had grown complacent." This line was describing arrogance of the Reynolds folks towards Philip Morris. In many ways, this attitude is what has hurt many companies in the United States. By growing complacent, companies have fallen behind the curve. Now, they are fighting for new business development opportunities or going out of business.
If you have read the book, I would love to hear about the theme that resonated with you.
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-Ms. Michelle Rhee, Chancellor of DC Public Schools
This comment by
Ms. Michelle Rhee, Chancellor of DC Public Schools represents the philosophy that all administrators and staff should have in the K-12 education system. With the demographic trends continuing to show a widening gap between in the education landscape, I think it's about time that adults stop being the lead weight holding back our students.
One big issue is the position taken by teacher unions to maintain something close to status quo. Maybe they should take a look at the issues faced by unions in the business community. Major corporations are not including unionized areas in their strategic implementation plans. In a more basic example, the unions of the U.S. automakers have forced the creation of alternative business solutions to make up for financial issues.
I thought we learned a long time ago that, "The definition of insanity is doing the same thing over and over and expecting different results."
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