There Must Be 50 Ways to Go Global
Thinking about expanding your business internationally? Then check out this post from The Global Small Business Blog that provides links to fifty resources that may aid in the effort
2/14/2007
2/13/2007
Preparing a Business for Sale
This article from entrepreneur.com offers the following tips for someone reaching retirement age who will likely be selling her business within the next five years:
"1. Get a business valuation...
2. Get your books in order...
3. Understand the true profitability of your business...
4. Consult your financial advisor...
5. Make a good first impression...
6. Organize your legal paperwork...
7. Consider management succession...
8. Know your reason for selling...
9. Get your advisory team in place...
10. Keep your eye on the ball..."
You may also wish to review these articles I have written on this topic: Preparing a Business For Sale and Key Concepts in Selling A Business
Change Management Primer
Change Management 101 provides a detailed overview of the concept of “change management.” It was written primarily for people who are coming to grips with change management problems for the first time and for more experienced people who wish to reflect upon their experience in a structured way, stating:
"Organizations are highly specialized systems and there are many different schemes for grouping and classifying them. Some are said to be in the retail business, others are in manufacturing, and still others confine their activities to distribution. Some are profit-oriented and some are not for profit. Some are in the public sector and some are in the private sector. Some are members of the financial services industry, which encompasses banking, insurance, and brokerage houses. Others belong to the automobile industry, where they can be classified as original equipment manufacturers (OEM) or after-market providers. Some belong to the health care industry, as providers, as insureds or as insurers. Many are regulated, some are not. Some face stiff competition, some do not. Some are foreign-owned and some are foreign-based. Some are corporations, some are partnerships, and some are sole proprietorships. Some are publicly held and some are privately held. Some have been around a long time and some are newcomers. Some have been built up over the years while others have been pieced together through mergers and acquisitions. No two are exactly alike.
The preceding paragraph points out that the problems found in organizations, especially the change problems, have both a content and a process dimension. It is one thing, for instance, to introduce a new claims processing system in a functionally organized health insurer. It is quite another to introduce a similar system in a health insurer that is organized along product lines and market segments. It is yet a different thing altogether to introduce a system of equal size and significance in an educational establishment that relies on a matrix structure. The languages spoken differ. The values differ. The cultures differ. And, at a detailed level, the problems differ. However, the overall processes of change and change management remain pretty much the same, and it is this fundamental similarity of the change processes across organizations, industries, and structures that makes change management a task, a process, and an area of professional practice."
2/12/2007
Adam Bain’s “Framework Triangle for Acquisitions”
This The Gong Show by Andrew Parker post explains Adam Bain's Framework Triangle for Acquisitions. Basically the points of the triangle are:
"Technology Advantage
New Audience or New Revenue Streams
Long Term Strategic Influence (Does it help you for the long term by enabling some larger end goal down the line? Sometimes this may also mean: an acquisition to stop the technology or product from falling into a competitor’s hands)
Once set up in the triangle, you get a framework that companies can be judged. When acq targets hit all three points on the triangle, it’s an easy decision. Usually the tough decisions come when you only have two out of the three points. So here’s what happens when you see just two points:
Tech + Long Term Strategic Value (and therefore lacking Audience) = The company is an Enabler. These are potentially undervalued by the marketplace...
Audience + Long Term Strategic Value (and therefore lacking Tech) = At best case, a Network Effect. Worst case: it’s an overvalued company...
Tech + Audience (lacking Strat) = At best Case: A Category Expander. Worst case: Non-core. Or…a sign that the acquiring company may be in trouble– because the acquiring company is looking at a business which has unique technology AND audience or revenue (thus traction) BUT it doesn’t currently fit into their world view of long-term strategy."
Mother Lode of Board of Director Resources
"A corporation, whether for-profit or nonprofit, is required to have a governing Board of Directors. To explain, a corporation can operate as a separate legal entity, much like a person in that it can own bank accounts, enter into contracts, etc. However, the laws governing corporations require that a corporation ultimately is accountable to its owners (stockholders in the case of for-profits and the public with nonprofits). That accountability is accomplished by requiring that each corporation has a Board of Directors that represents the stockholders or the public...
Governing Boards can have a variety of models (configurations and ways of working), for example, "working Boards" (hands-on, or administrative, where Board members might be fixing the fax one day and strategic planning the next), "collective" (where Board members and others in the organization usually do the same types of work -- it's often difficult to discern who the Board members actually are), "policy" (where Board members attend mostly to top-level policies), "Policy Governance" (trademark of Carver Governance Design, where there are very clear lines and areas of focus between Board and the CEO), etc. All of these models are types of governing Boards.
Boards can have a broad range of "personalities." For example, Boards of large for-profit and nonprofit corporations might be very formal in nature with strong attention to Parliamentary procedures, highly proceduralized Board operations, etc. In contrast, Boards of small nonprofit or for-profit corporations might be very informal in nature. Some people believe in life stages of Boards, including that they 1) start out as "working" Boards where members focus on day-to-day matters in addition to strategic matters, 2) evolve to "policy" Boards where members focus mostly on strategic matters, and 3) eventually become large, institutionalized Boards that often have small executive committees and maybe many members some of which are "big names" to gain credibility with funders or investors..."
The above gives a basic overview sketch of the role of a governing Board. The Free Complete Toolkit for Boards from Carter McNamara provides more information about the roles and responsibilities of Boards and Board members, including job descriptions for each of the common positions on a Board and much, much more.
2/11/2007
Stop the Killing
Steven Sonsino identifies “'seven failings of really useless leaders':
Killing enthusiasm through micromanagement, coercion and disrespect;
Killing emotion by being aggressive, lacking empathy and not supporting work-life balance;
Killing explanation through incomplete or inconsistent communication;
Killing engagement with limited team goals and an insistence on managers dictating objectives;
Killing reward by rewarding the wrong things or doing it in the wrong way...;
Killing culture, for example...'punishing risk-taking' while trying to introduce a culture of innovation; and
Killing trust by making unfair decisions when hiring or rewarding staff."
Quotation from this post from thepracticeofleadership.net
2/08/2007
Accountability is Key
"Here is the seven-step formula you can use to create accountability and achieve extraordinary results in any organization:
Step 1: Establish the organization’s top three objectives...
Step 2: Assign each team member his or her respective objectives...
Step 3: Ask each team member what he or she needs to win...
Step 4: Agree on what the leader will do to help....
Step 5: Follow up...
Step 6: Share lessons learned...
Step 7: Reward results..."
Read more in this ChangeThis manifesto from Bob Prosen.
What is Your Purpose?
Just read the first page of this ChangeThis manifesto, and you will understand exactly what it is to have purpose. Read the subsequent pages and you’ll find how to develop a sense of purpose for yourself and your organization through discovery, excellence, altruism and heroism.
2/06/2007
The Personal Style Model
In this video from BetterManagement.com , join Dr Michael O'Connor as he talks about how the "personal style model" can be used to explore a person's:
"Goals & fears
Natural talents
Development opportunities
Performance work practices
Use this knowledge to understand a person's tendency to either "fight" or "take flight" when put under pressure or stress; and how to successfully influence others. Improve how you communicate, motivate and interact which each of the 4 DISC styles:
Dominant Directors
Interacting Socializers
Steady Relaters
Cautious Thinkers
By understanding these behaviors, managers can better coach and develop employees to perform better to positively and productively influence co-workers, customers, prospects and partners."
Tips for Entrepreneurs from Larry Page
In this Educators Corner video, Larry Page offers the following tips:
"Tip 1: Just don't settle. Especially with employees, it is very important to find great people you are compatible with.
Tip 2: There is a benefit from being real experts. Experience pays off.
Tip 3: Have a healthy disregard for the impossible. Stretch your goals.
Tip 4: It is OK to solve a hard problem. Solving hard problems is where you will get the big leverage.
Tip 5: Don't pay attention to the VC Bandwagon. Don't start a company just because you can, have a really good idea that is good regardless of the funding situation."
2/05/2007
The Enlightened Warrior
"A new leadership style is emerging, with skills uniquely tailored for success in today's environment. One management consultant has dubbed this new leader The Enlightened Warrior... Enlightened...in the sense that a modern leader identifies opportunities...The warrior side symbolizes a passion for achieving a goal and also a willingness to go on the attack--against the competition, and against weaknesses in yourself and the organization...
Key traits that are crucial in our changing workplace.
Adaptability...
Self-Awareness...
Purposefulness...
Decisiveness...
Collaborative Skills...
Walk the walk...
Innovate...
Execute..."
Read more in this article from entrepreneur.com.
The "Big Four" Advisors
Pamela Slim writes "about the 'big four' professionals every entrepreneur needs to run an effective business:
A lawyer
An accountant
A banker
An insurance specialist
These professionals can ensure that you set up a solid foundation for your business. Often, entrepreneurs try to "bootstrap" everything and only call in an expert when they are in trouble. Investing in the right professional advice early on can save you headaches, or worse, in the long run."
Via this startupspark.com post.
2/03/2007
Delegate Don't Abdicate
"People use many excuses for not delegating. Their reasons are usually unfounded. You'll get more done through delegation if you assume the opposite of the following statements is true:
I could do it better myself.
I don't know if I can trust her to do it.
He isn't qualified to do it.
She doesn't want any added responsibilities.
I don't have the time to show anyone how to do it.
There is no one else to delegate to.
He already has enough to do.
I don't want to give up this task because I like doing it.
I'm the only person who knows how to do this.
She messed up last time, so I'm not giving her anything else to do."
Read more in this article from getmoredone.com.
1/18/2007
Primer on Equity Based Compensation Plans
Business owners who set up employee incentive plans generally do so to motivate their employees to work harder and smarter. Employee incentive plans also:
* Reward employees for performing (currently and in the past) at a superior level.
* Motivate employees to increase the value of the company.
* Help retain employees through the owner’s exit from the business.
* Begin transferring ownership in anticipation of an owner’s physical departure from the company. This is usually an early step in the exit planning process after the owner has decided to transfer to insiders.
Read more in this article by John Brown found via California Estate and Business Law Blog post.
Technorati Tags: business, management, entrepreneurship, startup, legal
1/16/2007
Scan the Environment with a PEST Analysis
"A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces...The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans...
In conducting PEST analysis, it is required to consider each PEST factor as they all play a part in determining the overall business environment. Some examples of topics include the following:
Political: (includes legal and regulatory): elections, employment law, consumer protection, environmental regulations, industry-specific regulations, competitive regulations, inter-country relationships/attitudes, war, terrorism, political trends, governmental leadership, taxes, and government structures.
Economic: economic growth trends (various countries), taxation, government spending levels, disposable income, job growth/unemployment, exchange rates, tariffs, inflation, consumer confidence index, import/export ratios, and production levels.
Social: demographics (age, gender, race, family size, etc.), lifestyle changes, population shifts, education, trends, fads, diversity, immigration/emigration, health, living standards, housing trends, fashion, attitudes to work, leisure activities, occupations, and earning capacity.
Technological: inventions, new discoveries, research, energy uses/sources/fuels, communications, rates of obsolescence, health (pharmaceutical, equipment, etc.), manufacturing advances, information technology, internet, transportation, bio-tech, genetics, agri-tech, waste removal/recycling, and so on."
Read more in this article from coursework4you.co.uk, which is also a great example of an article that provides an excellent executive summary of its topic.
Additional information on this topic is available in this summary from marketingteacher.com and this article and free template from businessballs.com (another good example of an excellent executive summary).
Technorati Tags: business, management, entrepreneurship, startup, legal
Send in the SWOT Team
This wikipedia entry defines a SWOT Analysis as a "strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organization or individual..."
This article from netmba.com explains:
"[Internal] factors should be evaluated across the organization in areas such as:
Company culture
Company image
Organizational structure
Key staff
Access to natural resources
Position on the experience curve
Operational efficiency
Operational capacity
Brand awarenes
Market share
Financial resources
Exclusive contracts
Patents and trade secrets...
The article identifies changes in the external environment in the following area may present opportunities or threats:
"Customers
Competitors
Market trends
Suppliers
Partners
Social changes
New technology
Economic environment
Political and regulatory environment"
This article from quickmba.com adds:
"Examples of...strengths include:
patents
strong brand names
good reputation among customers
cost advantages from proprietary know-how
exclusive access to high grade natural resources
favorable access to distribution networks
The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:
lack of patent protection
a weak brand name
poor reputation among customers
high cost structure
lack of access to the best natural resources
lack of access to key distribution channels...
Some examples of...opportunities include:
an unfulfilled customer need
arrival of new technologies
loosening of regulations
removal of international trade barriers...
Some examples of...threats include:
shifts in consumer tastes away from the firm's products
emergence of substitute products
new regulations
increased trade barriers"
Technorati Tags: business, management, entrepreneurship, startup, legal
1/04/2007
Perfect Your Elevator Pitch
"The purpose of your pitch is to sell, not to teach. Your job is to excite, not to educate. Pitching is about understanding what your customer (the investor) is most interested in, and developing a dialog that enables you to connect with the head, the heart, and the gut of the investor...So, the pitch has to accomplish three things:
Provide a good, clear, easy-to-repeat story—the story of an exciting new startup.
Fit with other investments the individual venture capitalist has made and the investments the firm is chartered to make.
Beat out the other investments the firm is currently considering..."
Read much more in this excellent article by Bill Reichert.Another good outline of a slide presentation to a venture capitalist may be found at this Content Log post.
Global Procurement Checklist
Sara Ireton, a supply chain management consultant with JPMorgan Chase Vastera, explains well why manufacturers should focus on 10 factors when looking to source internationally in this IndustryWeek article.
12/28/2006
Leaders Lead; Managers Deliver
"Management is getting people to do what needs to be done. Leadership is getting people to want to do what needs to be done. Managers push. Leaders pull. Managers command. Leaders communicate." - Warren Bennis
So what makes a person excel as a leader or manager? The personal belief of Will Herman, serial CEO, is that:
"Management is a science and, for the most part, can be learned. Leadership, however, is an art. While some of the capabilities necessary to being a great leader can be acquired over time, much of what makes terrific leaders great is instinctive or, at the very least, was learned much earlier in life.
Natural leaders have the ability to think in an unbounded way, without limitations or having their thoughts overly restricted by the practicalities associated with implementation. This is not to say that great leaders don't understand what it takes to make things happen. They simply don't let such knowledge stand in the way of seeing what's ahead and choosing a path to take...
Great managers, on the other hand, are excellent planners and are, generally, very well organized. They, too, need to be good communicators, but with a much more focused, hands-on approach. The fundamental tools that a manager has include their ability to teach, guide, cajole, listen and and constantly refine...
A successful organization can’t exist without both strong leadership and great management. Over time, an organization will need to expand its team of managers to keep up with its increasing number of deliverables. The leadership team, however, will grow at a much slower rate or, perhaps, not at all. Too many leaders, like too many chefs, will really foul things things up. Too few managers will leave a huge implementation void. One type of person is unlikely to successfully fill in for the other. Keep this in mind the next time you're building a team to start a new enterprise or making changes to a team already in place."
Read more in this Will Herman post.
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