Mead's Issues for Growth

Forget Networking - Be a Connector

2012-02-13T08:37:00.000-08:00

I recently saw this piece in SecondAct.com by Alina Tugend. It makes great sense.
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We all know people likethem, people who seem to know everyone. They're always able to help -- or ifthey can't, they know someone who can. You meet them for the first time and in15 minutes, you're talking with them like you're childhood friends. They'resuccessful, smart and funny, with a likable touch of self-deprecation. Andthey're interested in everything.

Who are they? Connectors. Take Maryam Banikarim,senior vice president and chief marketing officer at Gannett, publisher of USAToday. She has a perfect job for a connector -- she helps link Gannett'svarious newspapers and media outlets "and bring the pieces together."

"I like people and am genuinely curious,"says Banikarim, 42. "I like stories and want to make connections. But Ididn't know the word for it until my husband read Malcolm Gladwell's TheTipping Point and said, 'I finally have a word for you -- a connector.'"

As Gladwell writes,"sprinkled among every walk of life . . . are a handful of people with atruly extraordinary knack of making friends and acquaintances. They areConnectors." Gladwell describes them as having an ability to span manydifferent worlds, subcultures and niches.

Traits such as energy,insatiable curiosity and a willingness to take chances seem to be the commonthread among connectors -- as well as an insistence that connecting is not thesame as networking.

"Networking I see as a means to an end,"says Jill Leiderman, executive producer of the late-night show JimmyKimmel Live. But connecting, she explains, is about using a genuine love ofmeeting people and making friends to engage and assist one another.

Connectors show awillingness to venture outside their comfort zones. For example, comedy writerJosh Bycel (shown top) visited a Darfur refugee camp six years ago, and on theway home he came up with the idea of raising money for a medical clinic for thecamp. In three weeks, he had collected $50,000.

That idea grew into a nonprofit called OneKid OneWorld, whichaims to connect schools in the United States with those in Kenya and otherdeveloping countries to provide everything from books to clean water.

"I'm a comedy writer.I don't know anything about building schools," says Bycel, 40, who livesin Los Angeles. "But I'm interested in learning. You need to get out andmake connections outside of your own world. Being interested in lots ofdifferent things by definition allows you to be a connector."

The willingness to reachout to someone you don't know is crucial to the art of connecting, and especiallyimportant in uncertain economic times. Those who are in mid-career and may haveworked for one company for years should learn connecting skills before theyneed them.

For instance, mostpeople's natural inclination is to seek out friends at meetings and mealtimes.Banikarim says not to do that. "It's easy to sit with someone youknow," she says. "It's hard, but more interesting, to sit withsomeone you don't know. This is not like high school. It's not just the loserswho don't have somewhere to sit."

It may seem as ifconnectors are born, not made, but that's not necessarily true. Banikarim wasforced to learn to reach out to people from an early age. She moved with herfamily from Iran to Paris in 1979, then to Northern California, where there wasn'tan Iranian community. "I was often that new kid," she says. When shestarted college at Barnard, "I knew it was either sink or swim. The firstweek of school, I joined every club and went to every meeting. I ended up asfreshman class president."

Joining clubs and organizations is a terrific way tofind like-minded people, but only go when you have an interest -- and don'tattend endless networking get-togethers. Keith Ferrazzi,author ofNever Eat Alone, says he has never been to an official networkingevent. Instead, he advises, join organizations that focus on the events andactivities you love.

"I have a friend whois the executive vice president of a large bank in Charlotte," he writesin his book. "His networking hotspot is, of all places, the YMCA. He tellsme that at 5 and 6 in the morning, the place is buzzing with exercise fanaticslike himself getting in a workout before they go to the office. He scouts theplace for entrepreneurs, current customers and prospects."

Of course, when you'rewalking into that first meeting or class and facing a bunch of strangers, theinstinct is to flee. That's all right. The point is not to ignore the fear, butacknowledge it -- and then work through it.

"I sort of just run into fear, as I run into chaos,"says Banikarim, whom The New York Post named one of the 50 most powerful women in New York City in 2008 when sheworked at Univision. "You breathe deep, and you have to remember thateveryone is scared."

Perhaps one of the mostimportant attributes of a connector is a willingness to help and to reach outeven if there is no obvious or immediate payback.

That means thinking long-term. Jen Singer is the founderof the blog Mommasaid.net,author of five books, a Pull-Ups spokeswoman and an undeniable connector."The biggest mistake people make is they think 'if I help this person,that will happen immediately.' We have to stop thinking in linear terms,"she says.

Helping others out doesn'tmean you can't hold some things back. Singer, 44, uses the word"coopetition" -- a combination of competition and cooperation -- todescribe her philosophy. "I think this generation understands you share,but also protect your own interests -- you don't give a key to everything youhave. It's a line you have to learn to walk."

Finally, a connector alsooccasionally has to disconnect. Leiderman says her boyfriend "has taken awaymy Blackberry so I can super-connect with him."

To read the full post, click here.

Baby Boomers again think about selling their businesses - 2012-14 could be your time

2012-02-08T10:07:00.000-08:00

We have been writing about the Baby Boomer Business Transition Bubble since 2001. The demographic impact of the baby boomers reaching retirement age has been suppressed in the last few years since the economy has depressed business results and many business owners have been forced to return to basics to help maintain their business' health. Correspondingly, the numbers of business sales have been minimal since 2008.

Baby boomers, however, are not getting any younger.

Over the next several years, the U.S. economy will experience an unprecedented volume of wealth transfers. The result will be a glut of businesses for sale and downward price pressure for most privately owned companies.

There is a little publicized and understood transfer that will take place over the next 15 years with the inter-generational wealth transfer from baby-boomers to the children of baby boomers. The entrepreneurial explosion in the U.S. over the last 35 years has resulted in record numbers of well established small- to mid-size private businesses with annual revenues ranging from about $1 million to $75 million. For most of the private businesses started in the 1980s and early 1990s, the owner or owners are now 55 years old and over. Just as the baby boomer demographic bulge threatens the solvency of the Social Security system as boomers approach retirement, the private business owner demographic bulge will seriously strain and possibly overwhelm the available supply of buyers and the support infrastructure for business transition and transactions as these owners approach retirement. We have called this the baby boomer business transition bubble.

How big is the bubble?

How big is this demographic segment of owners of established privately held businesses? The best estimates indicate that there are approximately 8.1 million established businesses in the U.S. Factoring in companies with multiple owners, approximately 10.2 million owners. These businesses tend to have from 2 to 500 or more full-time employees beyond the owner; have been in business for at least three years; and have a work location outside of the owner's home. These established businesses are in virtually every sector of the U.S. economy.

The outlook going into the downturn in 2008

From both quantitative surveys and through our frequent discussions with small and mid-size business owners, we saw the early stages of a transition tidal wave developing. A quantitative study by research firm NFO, updated as recently as 2008, showed that among the affluent established business owners (48% of the owners are considered affluent); the numbers of business owners planning to retire were projected to more than double from 350,000 in 2006 to 750,000 by 2009 and to reach over 1,000,000 by 2012. This was up from only 50,000 in 2001.

What happened between 2008-2011?

The answer, from a business transition viewpoint, is very little. Businesses generally suffered a decline in revenue, profitability and cash flow, making them less valuable to buyers. It became very difficult to finance the purchase of a business as credit became tight and de-leveraging began to occur. Transactions were difficult to close. Sellers sought a return to the prices that were paid in 2005-7 which was not realistic given the reductions in value. Companies that performed well during the downturn achieved greater multiples of value as there was a shortage of supply of quality sellers.

Baby Boomer Transition Bubble just got kicked down the road?

In essence, the bubble is still there - it just got kicked down the road. Now, the backlog of sellers is bigger and the situation may become more urgent. It is true that most business owners have adjusted their retirement expectations and it has been estimated that retirement ages have been pushed out about 3 years on average. Since very few businesses sold during the 2008-2011 timeframe, there is an enormous backlog of business owners who would sell given the right circumstances. Our best estimates are that between 1.2 million and 1.5 million business owners are in that backlog.

What are business owners going to do?

Most business owners are still focused on their businesses and waiting for an economic turn. They are determined not to miss another upcycle. Based on several recent economic forecasts, there will be an up-tick in the economy for 2012 -13, followed by another dip in 2014, then another uptick in 2015. The concerns about inflation, the national debt, and the world economy have most forecasters pessimistic about the latter half of the decade. Based on these forecasts, we may be the entering the best "upcycle" for the next decade. One business owner suggested: "If it's not likely to get much better over the next few years, I may not get any more if I hold the business for another 5 years. I may be better off selling as soon as possible."

Timing

Timing is always tricky. We believe that demographics will drive the ultimately drive the market. We are advising our clients to prepare their businesses to sell in the 2012-14 window if they plan to sell at all over the next 10 years. Conditions for sale are improving: bank lending for acquisitions is begging to improve, there is an enormous supply of capital to invest in companies, and company results are improving.

What should business owners do to prepare?

Rushing your company to market is never a good idea. In order to build a maximum value at exit, business owners need to focus on improving profitability, building a management team, and growing revenue. Since most the selling price of most businesses will be based on multiples of EBITDA for the previous 12 months, getting a business ready takes time. In addition, such issues as the strengthening accounting and reporting, cleaning up corporate and capital structure. Most investment bankers and M&A professionals estimate that it takes a minimum of two years of focused effort to get a business sold (from preparation through sale).

The takeaway for business owners - sell on your terms.

Most advisors are suggesting that business owners start preparing now to be ready as the transition market peaks.

Consider the following:

1. The first of the baby boomers turned 65 years of age in 2010; the last of the baby boomers turned 45 in 2010.

2. The numbers of business owners wanting to sell businesses is at an all-time high and continuing to rise dramatically

3. The economy has stabilized; even has up-ticked in some sectors; many forecasters believe 2012-14 may be the best years of the decade

4. It will take 1 to 2 years of focused activity to get your business ready to sell at a reasonable price

Additional information: If you would like an independent assessment of the readiness of your business to sell for maximum value, please contact us. We help guide companies through the value creation process and assist them in preparing the company prior to going to market.

ACG Denver has two upcoming programs that may be of interest.

· Rocky Mountain Corporate Growth Conference held on March 13 -14, 2012

· "Selling a Business in Today's Environment" - a 4-part series which will run in April-May, 2012

About The Mead Consulting Group

Helping to create Colorado success stories

The Mead Consulting Group, Inc. has been providing strategic planning & execution, execution coaching, strategic marketing, business development and leadership development services to mid-size businesses since 1981. We specialize in working directly with owners and CEOs to help their companies reach the next level of success. Our clients have achieved superior results and consistently out-performed their peers.

In 2012 many clients are exploring new markets, examining new business models, and gaining new market share while enhancing profitability.

It's All About Results!

We've stood in your shoes,

worn your hats and

walked your talk

Like no one else, we can help you successfully navigate through

§ Strategic Growth and Execution

§ Increasing Profitability and Cash Flow

§ Maximizing Value for Exit

But, don't just take our word for it. Ask our clients.

For more information, see our website www.meadconsultinggroup.com

or contact Dave Mead at (303) 660-8135 or meaddp@MeadConsultingGroup.com

The most common mistakes companies make about strategy

2012-01-10T02:57:00.000-08:00

[Editor's Note: In difficult and uncertain economic times, it is easy toget distracted by the very real details of getting through the "economicday." Sometimes, the development and execution of strategy that leads to atrue competitive advantage can get lost in the tactics of survival. I thoughtthis article and book might be interesting for those of you whose companiesmight have perhaps inadvertently slipped into one of the mistakes aboutstrategy. I hope you find it useful. -DPM]

Michael Porter is one of the most renownedauthors on the subjects of strategy and competitive advantage. In a newbook, Understanding Michael Porter: The Essential Guide to Competitionand Strategy, Joan Magretta distills Porter's core concepts andframeworks into a concise guide for business practitioners.

"In this excerpt, Porter discusses commonstrategy mistakes. Key concepts include:

Assuming you can do it better than everyone else. Oneof the biggest mistakes a manager can make is to assume the best results comefrom competing to be the best, going down the same path as everybody else andthinking that somehow you can achieve better results. Competing to be unique is a much more effective strategy.

Confusing marketing with strategy. It's natural forstrategy to arise from a focus on customers and their needs. So in manycompanies, strategy is built around the value proposition, which is the demandside of the equation. But a robust strategy requires a tailored valuechain-it's about the supply side as well, the unique configuration of activities that deliversvalue. Strategy links choices on the demand side with the unique choices aboutthe value chain (the supply side). You can't have competitive advantage withoutboth.

Overestimating strengths. There's aninward-looking bias in many organizations. You might perceive customer serviceas a strong area. So that becomes the "strength" on which you attemptto build a strategy. But a real strength for strategy purposes has to besomething the company can do better than any of its rivals. And"better" because you are performing different activities than theyperform, because you've chosen a different configuration than they have.

Misunderstanding the definition of business or theappropriate geographical scope

The worst mistake-but the most common one - is not to have astrategy at all"

To read the restof the entire December 21, 2011 article, see TheMost Common Strategy Mistakes

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In addition to these noted, what other mistakes docompanies make about strategy? Please comment.

What’s Your Plan for 2012?

2011-12-13T08:41:00.000-08:00

What’s Your Plan for 2012?

Did you accomplish everything you wanted in 2011? What changesare you planning for 2012?

Does your plan for 2012 position your company totake advantage of competitive advantages and opportunities? Does your plan allowyou to be successful without depending on a rising economy? Do you have theright people and resources in place to execute the plan? Have you broken theplan into actions with specific metrics, dates, and responsible people? Haveyou subjected your plan to the reality test? Have you thought about bothpositive and negative scenarios of the future and what steps your companyshould take in each case? Is there an element of fun and adventure to yourplan? Does your plan make your company more valuable at the end of 2012?

If you can’t answer YES to each of these questions, perhapsyou are planning more of the same in 2012. As the saying goes: What is the definition of insanity? Doing thesame things over and over and expecting different results.

It’s not too late to put a different approach to work thatelevates your company and its prospects.

Protecting your company from “mayhem”

2011-12-05T14:26:00.001-08:00

In a popular series of television commercials for a propertyand casualty insurance company, there is a “Mayhem” character who causesunexpected disasters for auto owners. In one commercial, he’s a satellite dishfalling off a roof onto your car; in another he’s your navigation system gonehaywire causing a crash. The message behind these commercials is that sincemayhem is unavoidable, you need insurance.

It struck me recently that companies generate their ownversions of mayhem – things that occur that may on first blush seem to occurunexpectedly or just be unfortunate.

Here are some examples:

Discoveringthat you don’t have the rights to use the trade name you’ve been using for 15years
Discoveringthat your employees have been plagiarizing content
Theemployees that are developing your blockbuster new product all leave at once
Anew competitive product offering undercuts your price by 60%
Yourcustomers discover that one of your key vendors has been substituting ahazardous or substandard material resulting in product malfunction or customerinjuries
Anew business model renders your product irrelevant
Discoveringthat new regulations no longer allow you to ship your product
Discoveringthat there is no liability insurance for all the products in the field thatyou’ve made for the last 10 years…and a latent defect has just been discovered
Discoverythat a “trusted” accounting clerk has been methodically stolen $800,000 overthe last 10 years

All of theseare true. Some might say bad luck. Synonyms for mayhem are chaos, disorder,confusion, turmoil. The dictionary defines it as “needless damage.” In truth,all of these examples of mayhem were identifiable ahead of time and most couldhave been avoided or significantly mitigated.

In tougheconomic times, companies can be myopic and can ignore the need for strategicplanning, competitive scanning, and can defer implementing business processesand controls.

Somethoughts as you enter 2012:

Develop astrategic growth and execution plan (Please- not another retreat but ameaningful plan of execution

realisticassessment of where you are (strengths and weaknesses, opportunities andthreats)
competitivescan looking at traditional competitors as well as possible disruptive threats
developsome scenarios of the future (including those at extremes) and actions to betaken as these play out
developspecific actions, metrics and accountability to shore up the weaknesses, fillthe gaps, address the risks, and take advantage of the opportunities andstrengths

Don’t letanother year go by. Neglecting the next steps in your company’s growth andmaturity can be very short-sighted. You need to protect your company frommayhem!

Colorado success stories: Brierley Associates

2011-11-08T02:53:00.000-08:00

Expertise, value, and responsiveness lead to success underground

Editor's note: This is another in a series of Colorado company success stories as told by CEOs and business owners.

When I recently met with Gary Brierley, CEO of Brierley Associates, I was wondering how we would find enough material to fill a 90-minute interview. Two hours later, I was thoroughly engaged in a conversation about solving difficult client problems, delivering exceptional value to clients, and building a successful business with a national reputation for excellence.

You might think that this doesn't sound much different than other Colorado success stories companies... except we were talking about building tunnels. Brierley Associates provides design, analysis, and management consulting services for underground construction such as tunnels, mining, and quarry projects and excavation support.

Dr. Gary Brierley is passionate about building tunnels. He is even more animated about solving problems. His energy and enthusiasm are infectious. Over the last 12 years, he has surrounded himself with like-minded people who live to solve problems. Brierley was recently recognized as one of the fastest growing companies in Colorado growing 79 percent between 2009 and 2010 to $9.3 million in revenue with 2011 growth that is estimated to exceed another 50 percent in 2011.

How do you compete?

We exist to design and build things underground. It is a niche within a niche within a niche in the construction industry. It is highly specialized and has limited competition. If you look at the number of people who know what they are doing in the tunnel business, there may be less than 1000 in total in the United States. This business is perceived as high risk so that keeps the competition to a minimum.

We have great knowledge and expertise, but we are also very responsive. Two thirds of our work is repeat business - we strive to keep every client. We want clients to know how important the success of their project is to us. There's an old saying, ‘I don't care how much you know, until I know how much you care.'

We compete based on responsiveness and value. We do not compete on price - we offer a fair price but high value. You talk with a real person when you call - and within five minutes you can be talking with an engineer or a geologist. Our clients need an answer when they call with a question, issue, or a problem. We need to be there when they need us. We strive to add value to every interaction with every client and to establish a trusting relationship.

Has the path always been smooth?

We started in 1999 with the simple philosophy that if we did good work and worked hard, we would be successful. For the first ten years, we did exactly that. We did good work, built credibility, and earned a loyal following from clients. We enjoyed steady growth. Then two years ago, we hit an inflection point and began to grow rapidly. In 2009, we acquired Denver-based Lyman Henn, Inc. which was very complementary since it added significant business in Colorado. Brierley's business had been more nationwide so we had virtually no overlap in markets. This year we bought another company, Berti-Lindquist Consulting Engineers in San Francisco, which has greatly expanded our presence in the California market.

What are the keys to your future growth?

We do not have specific goals for growth - we tend to go with the flow. Our biggest problem is finding the right people - people who do tunnels but are also customer-focused and responsive. There are no degree programs in tunnel engineering. It takes about ten years of experience for someone to become a good tunnel engineer. You have to be in the field to see the actual ground conditions and to see how the earth reacts to what we do with it. The good news is that once a good engineer works on a tunneling project, they are usually hooked for life.

In your culture, no one says "No" to a customer?

We make decisions quickly. We are very knowledgeable about ground conditions and about underground construction. No one in our organization is authorized to say ‘NO.' They can say yes, they can say maybe, but if there is a potential ‘No' response, then we will discuss it. We want to be able to solve the most difficult problems and issues for great clients. We say we ‘do the right things for the right reasons for the right people.'

You also have very low turnover and great morale?

Engineers love to solve problems so they don't tend to watch the clock. We try to provide an environment where talented people can do their best work. We really have only one goal for our company: ‘when you get up in the morning, I want you to look forward to coming to work.'

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This article demonstrates that there are great opportunities in every field if you fill a need, do it well, and provide a superior customer experience.

Colorado success stories: Trada

2011-11-01T03:00:00.000-07:00

Crowdsourcing gets betteronline ad results for small businesses

Editor's note: This isanother in a series of Colorado company success stories as told by CEOs andbusiness owners.

Insmall and mid-size businesses (SMB), have you ever wondered what you could doif you had up to 2,000 highly trained paid search consultants available to workon your online sales ad campaign? How many more products or services could yousell? How much could you save? But, what small business has access or theresources for many paid experts who will work on a small account? Boulder-based Trada offers SMB's just that advantagewith "crowdsourcing."

Trada engages multiple paid searchexperts which they call "optimizers" who work on a small business adcampaign at the same time, providing results no single person could everachieve. Speed, optimization, diversity of thinking, and lower cost arethe benefits of crowdsourced paid search with Trada. The search experts - andTrada - get paid when the experts are more efficient in cost per click or costper sale than the agreed-upon targeted rate. Click here to see a video on HowTrada Works.

Trada, founded in late 2008, hasexperienced very rapid growth with a current yearly run rate of $25M in revenueand 85 employees with plans to quadruple its revenue run rate by end of thisyear. Trada has been recognized as one of the 2011 Colorado Companies to Watch.

I recently met with Trada founder andCEO, Niel Robertson over lunch at The Brasserie in Boulder next to Trada's newoffices. One can quickly see how Niel's ebullient personality energizes andmotivates the Trada team.

Where did this business idea come from?

At my last business, I took over marketing from the agency. Itbecame very apparent to me that the small business person does not have thetime or expertise to be successful in online advertising. The "eurekamoment" came on a very long boat trip off the coast of Scotland with myparents when I realized that a crowd could think of many more ways that someonewould search on Google than any individual and possibly provide a betteroutcome.. I also realized that there had been very little investment inthe paid search space - so I saw an opportunity. We built the first system intwo months, turned it on, and haven't looked back.

The beauty of this business model is that it seems that by itsvery design you constantly improve the value and the results for the clients.

That's right. We learn from every engagement. We are constantlyimproving the quality and expertise of paid search optimizers. Ongoingparticipation is based on performance. We invented a score for paid search. Nowyou have to apply to participate on a company's campaign. We measure thecampaign outcomes and our team's performance to look for ways to improve.

Who are your competitors?

The biggest competitor is the "do it yourself"business owner. As word spreads about Trada's better outcomes, we believe thatbusiness owners will realize their time is better spent on their core productor service and meeting their customers' needs. The second source of competitionis the advertising agencies. It is interesting to note that we have seen a bigincrease in the numbers of agencies that are choosing to use Trada as the waythey do paid search for their clients.

What are some of the actions you have taken to accelerategrowth?

We have added three sales teams - the internal team sells theSMB market, the enterprise/agency team is more of a national accounts group,and channel sales who sell in the small business aggregator space (whichincludes any association or organization with large groups of small businessesat the local levels such as plumbers or maids). We are developing servicemodels that support each level of customer.

We have recruited some outstanding people to Trada who havebuilt these teams before. This is a great advantage.

With this pace of growth, we need to reinvent ourselves everythree months. We are very metrics-driven and with this underpinning of data, weare able to make quick decisions, quick adjustments, and quick recoveries.Flexibility and adaptability are the keys.

You mentioned that you have expanded beyond the traditional SMBproducts to broader services - even divorce lawyers.

The model works for all kinds of products and services. Youwould be surprised to learn how many people get divorced in North Carolina.Trada can help divorce attorneys reach clients in the most effective manner.

With all this success, what keeps you awake at night?

I worry about deeply understanding the customer experience sothat we can make it better. SMB business owners are deeply knowledgeable andpassionate about their customers - we are learning how to translate that to thework the optimizers do for them.

I am also obsessed with our ability to scale the business. Asthe business grows, process becomes much more important. We need to continue toimprove. For example, we recently mapped our incoming sales on-boarding process- it has 77 steps. So we realized we need to retool it to be more efficient andimprove the overall customer experience.

So what lies ahead?

We need to continue to tweak the dynamics of the market model toconstantly adjust so that all parties do the right things. We are obsessivelyfocused on management of quality and increasing the lifetime value for eachcustomer. We have proven the inside sales model so that now we can scale this.We need to prove out the other sales models and customer support systems. Wehave not yet started to scratch the surface internationally. We see a hugeupside.

Colorado success stories: Growth at the speed of HEIT

2011-10-04T03:00:00.000-07:00

Editor's note: This is another in a series of Colorado company success stories as told by CEOs and business owners.

On August 9^th, HEIT agreed to be acquired by Computer Services, Inc. in a transaction designed to enable HEIT to meet its growth objectives. To read more

Outside of banks and credit unions, HEIT may not be a household name. Yet within the financial services industry, the company continues to garner strong recognition as a specialized provider of cloud-delivered technology performance, compliance and security managed services to financial institutions.

Based in Fort Collins, HEIT currently has more than 200 managed services and cloud bank and credit union clients. When I recently met with Dan Holt, CEO of HEIT, the company was getting prepared to expand into yet another, larger space. This company has enjoyed significant growth with their managed services revenue growing by 50 percent per year between 2007 through 2010. HEIT was recently recognized as one of the 2011 Colorado Companies to Watch.

Why did you choose to specialize in managed IT services for banks?

In 2002, Troy Edington, our current COO, and I started a business in my basement in Silicon Valley, focused on security. With Troy's financial services background and my military operations background, we thought 'who needs security the most?' It was a logical extension to focus on the bank and credit union vertical market because we had expertise in the applications and business challenges these institutions face. The banking industry is highly regulated and has unique security, application, and reporting needs. Since we worked with larger banks initially, we developed higher level technical certifications which have become a competitive advantage.

We moved to Fort Collins in 2005, partly because it has more favorable a cost structure, but mostly for a better overall environment, talent, and its disaster-neutral locality.

Why do customers select HEIT?

We know banking. We understand the requirements of the FDIC and other regulatory organizations. We have become so knowledgeable about compliance, for example, that it has become one of HEIT's core competencies.

Managed Services in the cloud is growing very fast. What do you see for the industry?

Gartner research has predicted that 20 percent of businesses will have no IT assets after 2012. The cloud computing sector today is in a 'hybrid cloud" mode for banks and credit unions. Clients have some data and technology on-premise; some have moved to the cloud. It can take years for financial institutions to fully move to the cloud. There are limitations and complexities, especially for the larger banks. Some of the technology is not yet ready for the cloud. We want institutions to have a choice. We're here to help figure out the right strategy to leverage cloud where and when it makes sense for the institution, while providing support and guidance every step of the way.

You have accomplished growth both through acquisition as well as internal organic growth.

We were looking to establish further redundancy by adding an additional 24 x 7 operations center, so in 2010 we merged with Austin - based, Simpler-Webb. We added additional value to our offerings by gaining more effective disaster recovery and economies of scale. Our products were complementary so we benefited through being able to cross-sell and offer our client bases a broader offering.

What's in store in the future for HEIT?

We will continue to innovate better faster, cheaper ways to deliver our services, as well as new products and services like data recovery, the ability to run complete compliance programs in the cloud and more solutions related to storage.

We also will expand into geographical markets through the Midwest and east coast. HEIT is only serving a fraction of the 15,000 midsized banks and credit unions in the United States. We're currently operating in 33 states; we intend to increase the density of our client footprint in each state.

What keeps you awake at night?

As we approach 100 employees and $20 million in revenue, we will reach the next big milestone as a growing company. We have become much more process-oriented in order to scale effectively. We are hiring more experienced people and associating with resources that have "been there and done that."
Another area of attention is to continue to improve and provide the best security for our bank clients. I also constantly focus on what it will take for HEIT to maintain the terrific level of client service that our reputation is built on.

You have a young, energetic culture. How does that contribute to your success?

Our business is fast-paced. We talk about operating at the "speed of HEIT." We have been first-to-market with a number of solutions that have kept us ahead of the pack. We have a culture of winners - competitive people who want to be the best, whether that is in sales, operations or relationship management.

We cultivate learning. Someone will learn more here over the course of 12 months than they ever would learn somewhere else. We offer recognition and reward our employees for everything related to professional development such as paying a bonus for earning the next level of technical certification. We want our people to continue to grow so that they can provide greater value and service to our clients. Contrary to popular opinion, we believe that if we train you, you'll stay with HEIT.

In August, HEIT was acquired by Computer Services, Inc. Why did you agree to sell? Originally, we thought this would be a strategic alliance. But as we got to know each other, it became apparent that this was a good match. Computer Services is a $200M public company with 5,000 bank customers and was mainly a software provider with a small network managed services group. They did not have a full outsourced offering or managed compliance. It is also a great fit. When we spoke with CSI's clients we found that they were raving fans.

We saw that there was an opportunity for HEIT to gain access to a lot more financial institutions. We also saw that aligning with CSI was a win for our clients and our employees. Our clients gained not only with the stability of a much larger organization, but also the addition of more services and a lot more technical resources.

Colorado success stories: Latisys

2011-09-21T03:00:00.000-07:00

Success is in the "private cloud"

Posted 08.10.2011 in Colorado Biz Magazine

By David P. Mead

Editor's note: This is another in a series of Colorado company success stories as told by CEOs and business owners.

Latisys provides data center solutions, including colocation, managed hosting and managed services, that extend and enhance a company's IT infrastructure. Customers are primarily Fortune 1000 companies and government. Latisys, headquartered in Englewood, was listed on the Inc 5000 List of Fastest Growing Companies in both 2009 and 2010, and has enjoyed consistent 35 percent year over year revenue growth and 45 percent annual EBITDA growth.

It currently has 145 employees in four strategic geographical locations across the U.S, including suburban, non-Central Business District locations in the Orange County, CA, Chicago, Washington, DC and Denver markets. Since 2007, the company has raised over $225 million in debt and equity capital to fund its expansion. I recently had lunch with CEO Pete Stevenson, who shared some insight about Latisys' growth and opportunities.

Latisys was created as a consolidation of data centers. Historically, most consolidations - or roll-ups - don't succeed as ongoing entities. What has helped Latisys succeed?

We saw a consolidation opportunity in 2007 in a data services arena that was a fragmented industry. More importantly, there were three of us who set out to build a great company, work with the very best people, those we wanted to work with, and to have fun. It was fortuitous that, at this same time, we met with some private equity investors who saw a similar opportunity but had not yet met the right management team to back. The timing was right and it has been a great partnership.

Having major investors certainly helped you get started, but why do customers select Latisys?

We have several big advantages based on our strategy: The first is flexibility. We have a customer -focused service approach. We offer flexibility in contracts, for example. We understand that customers need to change over time, modify their needs, and do things that were not in the original agreement. We also invest heavily in developing automation and software tools that make it easier for the customer to access information and to do business with us. Second, we have a "power strategy." We have developed a physical infrastructure that is built for the future with lots of power and lots of high density computing capacity. Third, we believe in investing in capacity. We believe that in order to attract large enterprise customers you must demonstrate the ability to meet their current and future needs. Currently, we have the capacity to quadruple our business. Fourth, our people are the very best "A players" that can offer our customers the technical know-how and strategic direction, project management, and customer-focus they need.

You have spoken about the changing role of the Chief Information Officer?

The role of the CIO is changing rapidly to the purchaser and manager of resources and services - both internal and outsourced. Latisys is offering a suite of services aimed to help the CIO accomplish his/her goals within the enterprise and truly function as a strategic partner to the business.

You have accomplished growth both through acquisition as well as internal organic growth. Is there more M&A activity in the future?

We expect that to continue. We have some real advantages when it comes to acquisitions. We know what we are looking for so we don't waste time -either ours or our prospect's. We are credible because we are funded and have completed some acquisitions. We take the time to build relationships with the target companies. They know we will take care of both their employees and customers. They want to know they will be selling to a reputable firm that is committed to the customer.

What's in store in the future for the Managed Services Industry and Latisys?

We're really only in the second inning of the outsourcing business - of a 15-year trend. The industry will continue to evolve. Latisys needs to continue to have the right products and services. That means innovation in the "private cloud". A few weeks ago we made a major announcement that Latisys has selected HP CloudSystem as the core infrastructure platform for the Latisys Private Cloud. This platform is a key component of the firm's unified architecture that supports highly secure cloud services and enables a hybrid managed hosting cloud. In plain language, this means a highly secure, highly available and privately managed cloud for large enterprise customers.

Technology is very important. But we are in the "trust" business. If you don't have a customer focus, customers will not continue to grow with you and they will cap their business. We strive to provide a great customer lifecycle experience - from our pre-sales contacts throughout the process. We are very transparent and we have the customer's back and learn from our mistakes. Our culture is focused around the customer, teamwork, trust, and better communications. As we like to say, we make better decisions faster.

Grandpa, what were you doing during the Great Recession of 2007-2016?

2011-09-13T06:52:00.000-07:00

Wereyou a winner, a victim, or a bystander?

By David P. Mead

Flash forward to the year 2030...most of us will be playing withgrandkids. I remember asking my two grandfathers what they did during the GreatDepression – how they provided for their families, took on extra work wherethey could find it. While this current period in is no way a direct comparisonto the depression, I do think we may reflect back on these times in much the samemanner.

While many find themselves in unfortunate circumstances that maybe somewhat beyond their control, there are many who can affect their outcome.

In a recent Wall St. Journal survey of economistsover 50% of those surveyed do not expect that the output gap in the U.S.economy would be filled until 2016 or later. For the past few years ago I have been concerned about what I saw as aneconomic malaise in the U.S. It now appears that we may be in for anotherseveral years of a long slow economic slog.

Victims and bystanders: Hope is not a strategy. Nowmy concern is more focused on a management cultural malaise that I believe hasdescended on a number of companies. Hunkering down has become a managementskill. Many companies have rewarded tight cash management, not taking risks, expensereduction, and retaining customers at the expense of not reinvesting inR&D, new products, new markets, new ideas, and new business models. Stayingthe course and hoping for the best has become the strategy. Frankly, “hope isnot a strategy.”

If you’re not going to grow, get out now. Someinvestment bankers are advising baby boomer owners with flat companies to sellnow. If you are a business owner in your late 50’s or early 60’s and notplanning to be creative to increase demand, then it might be wise to getrealistic about your company’s value and get out now if you can. Business lifewill likely not get appreciably better for the next 3 - 5 years - and could getworse - for those companies that are standing still.

No, I am not pessimistic. To the contrary, I see lots ofpositives:

· There has never been a time of greateropportunity

· There is plenty of capital for growthand investment in good opportunities with good management

· There are new ideas, new technologies,new business models that can change our lives

· Technology is being applied in mature industriesin transformational ways

Winners: Business innovators. Weare seeing more disruptive and transformational business innovation than everbefore. While these companies may not YET be enjoying great volume, they areproving out new models. We may well be looking at irreversible shifts infundamental market dynamics – buyers now know more than sellers, mobile devices are putting more power in handsof consumers, consumer advocacy can spring up overnight, real-time customerfeedback is helping design new products in real time, dramatic reductions infriction are occurring in marketplaces. ; Industries, like many indistribution, that exist because of fragmented customers or disorganized orinefficient supply chains may now be at risk. The friction-less immediate andfree flow of information is transforming and enabling lower cost, faster,customized business models.

Some of these companies are in your backyard. Companies such as the company with LED commercial lighting systems that have a 10+-year life with lowerenergy consumption, and the business that provides market research (unbiased consumer feedback with realpeople using real products in real environments)at greatly reduced cost, and the organization that provides cost effective online marketing to SMBs using crowdsourcing, are transforming theirindustries.

Winners: Business transformers.Transformation is occurring with some older businesses as well. One cataloguedistribution business has employed new data manipulation techniques to betterunderstand how, what, where, and why customers buy. The results have changedthe way they go to market, the product/inventory mix, and the way products aresupplied and delivered to customers.

Many companies have suddenly found themselves in the “irrelevantmiddle”- they don’t offer highly differentiated value-added products and theyaren’t the lowest cost provider of the commoditized products. Some of thesecompanies have created new models to profitably serve customers at either end –very low cost, “no frills” providers of commodity products on one end, or highlycustomer-focused, value-added solution providers at the other end. Companies inindustries ranging from metals distribution to medical devices to sellingcarbon credits are all wrestling with the same issue of transforming away fromthe “irrelevant middle.”

A better story forthe grandkids.Want to create a better story to tell your grandkids? Stop being a bystanderand take matters into your own hands. The old ways of ‘waiting for the economyto come back” are clearly not going to work this time.

Is this overly harsh or do you agree with this assessment? What do you think?

Birds of a Feather – Are you defined by who you “hang with?”

2011-08-29T15:19:00.000-07:00

As life progresses, I seem to come more and more back to the lessons taught to me by my parents. Growing up in New York City, my parents were understandably concerned about whom we chose as friends – who we chose to “hang with.” My mother would always say “birds of a feather flock together” – smart people associate with smart people, honest people tend to be around other honest people, achievers group with achievers, etc.

Brands are like coffee beans. Several years ago, I read a book about branding by Scott Bedbury who was one of the primary architects of the Starbucks brand. He said, “Brands are like coffee beans, highly sensitive sponges that absorb whatever odor is around them. And they don’t discriminate between the good, the bad, and the ugly.” You are the sum total of all of the best experiences and the worst experiences of your customers with you, your employees and contractors, your partners, your suppliers.

Recently, I questioned why a colleague referred to a client a firm known for trying to be all things to all people, therefore delivering lower quality services. The colleague replied, “because they provide us with referrals.” If you have no standards of excellence for your referrals, what does that say about the quality of your firm? And if a company with a spotty reputation refers your organization, what can someone infer about you and your organization?

Some folks may think that this is too strong a stance. There are numerous people out in the market that did not make the cut as a partner or associate of our firm. We have built our firm’s reputation over the last 30 years by recruiting and retaining only the best talent that is focused on client service, maintaining a high degree of integrity and professionalism, and seeking to associate with those of like mind. We only refer to our clients and friends those that demonstrate similar qualities.

Is this old-fashioned. In this era of social networking – Facebook friending and LinkedIn connections – there seems to be less concern for standards. People connect or friend with anyone and everyone who asks. One of my sons says that people no longer make judgments about you based on your associations – that it’s an old-fashioned notion.

Is that true? Does my mother’s “birds of a feather” caution still hold? Or, has it gone the way of the rolodex?

Networking: It's all about building relationships

2011-08-19T05:37:00.000-07:00

By David P. Mead

There have been many articles written about networking - especially during this economic downturn. In recent weeks, I've read that you should join an executive golf networking group, connect with anyone who asks on LinkedIn, you shouldn't spend time with the same people, etc.

Brad Feld recently wrote about the disturbing trend to transactional encounters rather than relationships. I am not sure if the trend to transactional reflects a need for immediate gratification, is a sign of desperation, or if people just didn't listen to lessons their mother taught them.

The truth is, there is no easy path to developing a meaningful network. It's not about collecting business cards or golfing partners or meeting as many people as you can. It's about building relationships. In the current social networking world, some people seem intent to "friend" everyone and feel that the moment they meet you, they are "entitled" to tap into your network.

The following are some observations I've made over the years about building relationships:

1. Be a giver not a taker
Make deposits before withdrawals. Nothing turns people off faster than someone who gives you a download of their needs with little or no regards for yours. Take the time to understand the other person's needs. Seek to help them first.

Help people. One very successful investment banker has made it a point to know all of the leading surgeons and researchers in the medical field so that he could help the families of colleagues in his network. Another person helps find jobs and internships for children of colleagues and friends.

2. Go deep
Get involved with organizations and make a difference. People will make decisions about you based on how you engage with not for profit and community organizations. If you get involved and make a difference, people will take notice. If you merely distribute cards and look for introductions, they will notice that as well. We have made it a point to participate in organizations where we can get things accomplished and use our skills to advance the organization's vision and mission. Our consulting firm is all about execution and getting results for clients - people do notice that we do the same thing within the community. Want people to see you as dependable, creative, a leader? Superficial "fly-by" participation will not do it.

3. Deliver on your promises
If you say you'll do something for someone, make sure you follow-through. People want to build relationships with people who are dependable.

4. Do it for the right reasons
Some people call it creating good karma, others say it's doing the right thing. The key is that if you go out of your way to help others -it will come back. Perhaps not today or tomorrow, but it will come back.

5. Say thank you
Your mother taught you always to say thank you when someone helps you. People want to know that were helpful and that you appreciate their efforts.

6. Stay visible
Many folks in transition are visible in the community only as long as it takes to find the next job. It is likely you will need to network again in your lifetime. Create a positive lasting impression. Otherwise, why would someone ever want to help you again?

Colorado success stories: Albeo Technologies

2011-08-03T10:49:00.000-07:00

Haitz's law, clean tech, niche focus contribute to Albeo's growth
By David P. Mead

Editor's note: Albeo Technologies was recognized as a 2010 Colorado Company to Watch and Jeff Bisberg, CEO, has been recognized as a 2011 Ernst & Young Entrepreneur of the Year regional finalist.

Most of us familiar with the computer industry know Moore's law which postulated that the number of transistors on a chip doubles about every two years. But how many of us have ever heard of Haitz's law? Haitz's law, which states that the performance of an LED doubles every two years, may explain not only the exponential growth of the LED lighting industry, but also the future growth of Boulder-based Albeo Technologies.

Albeo Technologies designs, manufactures, and sells energy efficient LED lighting solutions for industrial and commercial buildings, including warehousing, data centers, etc. Albeo Technologies has enjoyed growth of over 100 percent compounded annual growth over the last three years. Between 2009 to 2010 the company grew by 3.5 times. When I met recently with Jeff Bisberg, he was enthusiastic about the growth prospects for Albeo.

What are some of the benefits of Albeo's LED lighting?

LED lighting saves energy, is cost effective and has significant environmental benefits. Energy and cost savings can be as much as 57% with the Albeo C-Series which represents significant savings over the total lifetime of the fixture and contributes greatly to a short payback period. Third-party independently tested, Albeo lighting can last up to 100,000 hours, reducing the need for costly maintenance and replacement bulbs. Environmental benefits of Albeo LED lighting include reduced carbon emissions and no mercury.

How is Albeo's market approach different?

There are several differences. First, Albeo is a pure LED lighting company. We specialize in LED lighting technology. We do not offer LED lighting only as an alternative to a core line of fluorescent lighting; Second, most LED lighting companies are going after the home market, while we have an industrial and commercial focus; Third, Albeo has designed a flexible system so that it is very easy for us to customize. We can deliver the "exact solution" to our clients. We focus on meeting the specific tradeoff of energy, light, and cost that the client needs.

Our initial strategy was to focus on small niche markets (such as kitchen under-cabinet lighting and case lighting for jewelry stores) which had little significant competition, and where we had access to early adopters. One pivotal strategic move was to shift to larger high bay fixtures in big spaces - commercial and industrial applications. These folks really disliked florescent lighting and were actively interested in finding an alternative.

Did the current recession have an impact on your growth?

Following the 2008 construction slowdown, many of our prospective customers grew risk averse. Albeo grew at a slightly slower rate. What saved us was the diversity of our channels. Instead of initially choosing one channel, Albeo's strategy had been to explore several channels. During the construction downturn, we focused on the direct channel rather than the A& D spec channel which carried us through 2010.

You've had some very big customer wins over the last year.

LED lighting is getting closer to a tipping point which is providing access to larger jobs. We just completed a very large installation at a Caterpillar manufacturing facility in Indiana and we were awarded the contract for lighting for the 8th largest data center in the world in North Carolina.

You attribute much of Albeo's success to your team and the culture.

We have a team that is familiar with the needs of working with large customers- selling, delivering, and servicing "referenceable and leverageable" large enterprise customers. We also have a bias for action. This means quick decision-making, a willingness to get things done quickly, to get customer exactly what they need so that we can take advantage of the window of opportunity.

What are the keys to continued growth over the next 5-10 years?

We have benefitted from the green momentum which has fostered the drive for sustainability and profitability in large companies. There are two areas critical to our continued success: The first is further channel development. Albeo needs to broaden the recognition as both a brand and as a solution provider. We will continue to showcase our large accounts. We have an accelerated use of PR so that we get higher Google ratings in searches; the second is to continue product technology development. If we were to use a mobile phone analogy, the LED industry is in the large "brick phone" stage. We're about to enter the smartphone phase. We just closed our first order for a wireless Zigbee enabled intelligent lighting fixture, with motion sensors, which monitors energy consumption, and provides real time information for the facility manager. How this intelligent fixture will evolve in the future is still to be determined.

Colorado success stories: Source Office Products

2011-07-25T09:53:00.000-07:00

Editors Note: Source Office Products was recognized as a 2010 Colorado Company to Watch.
Faced with a difficult economy in 2008 with existing customers forecasting 15-20 percent reductions in volume, the leadership at Source Office Products had to make a decision. Most organizations were cutting staff to reduce expenses. However, as Chairman and Founder, John Givens recently told me, "We felt we were already operating efficiently and would be cutting muscle. So we decided to hire and grow. We began to sell more lines of business to those customers who already liked doing business with us."
While it might seem counterintuitive to some, for Source Office Products, the strategy worked well. Source, founded in 1990, grew revenues 40% between 2007 and 2010 and is enjoying an anticipated growth rate of 18% in 2011.Source Office Products is a regional single source provider of business to business office products and services including office supplies, multifunction printers and copiers, managed print services (document management), web-managed commercial printing (business printing & marketing collateral), office furniture, and coffee services.
How is Source Office Products different?
Source Office Products seeks to tailor a solution for each client. We combine a strong commitment to superior IT systems and business processes with a commitment to serve each client as they want to be served. Each client has different priorities and pain points. Our account managers meet with each client 2-4 times a year to assess their needs.
Then we develop customer-specific programs and solutions. One client may be growing rapidly and office products are a relatively small percentage of the total expenses. That client may be looking to make things easy, simple, and convenient. Another client that is a more competitive environment may need us to provide the lowest cost solution. With automation and IT, we can provide 'mass produced customization'. Process and work flow is very important since minimizing the number of times people touch the order leads to higher quality, speed, and efficiency. We stress automation with both customers and our suppliers - greater than 94 percent of our business is conducted online in real time by customers.
This carries through to your culture which is very customer-centric.
Ultimately our biggest difference is that we hire the most experienced and talented account managers and provide them a lot of autonomy and the freedom to serve the customer. We let them act as entrepreneurs and we manage to results through reporting and automation. We have a very egalitarian culture. We work hard to make certain that every team member knows how important and valued they are. Management's role is to remove obstacles for team members so they can do their jobs better. We stress what I call "cross-lateral pollination" which means people from all areas are involved in team selling and team implementation.
Founders sometimes have difficulty giving up control. You brought in management with significant growth experience.
In the growth of every organization the best leaders must learn to follow. They must be willing to follow the advice of people they disagree with when the consensus of those they trust goes contrary to their opinion. They must serve the team by continuing to remove obstacles and hurdles that impede success. They must be acutely aware of their limitations and highly alert to the extraordinary qualities of those that make up their team.
Given our growth, it was obvious that we need a seasoned leader to help us assemble the team and integrate corporate resources necessary to provide effective support for our internal and external customers. Ken Larson, our president, has already taken the journey of growth in his career and has very strong opinions about what needs to be done and why. His core ideology and deep genuine passion aligns incredibly well with our high performance culture and guiding principles. Peter Burch, our CEO, puts the team and the organizations success ahead of all else. His knowledge, skills and ability to integrate various departments and team members are beyond impressive. He allows leaders to lead. Peter has high expectations and is constantly working to improve. He is all about taking responsibility and owning your work.
What are the keys to continued growth over the next 5-10 years?
We have to execute well and manage successfully what we've undertaken in the last 2 years. We've added Managed Print Services (document management), iPrint (commercial printing), and the Coffee division. Mergers are also important. To date, we have done three mergers, including Wyoming Office Solutions and a recent merger with Valley Office Supplies in Grand Junction. We need to integrate these well and to identify other possible mergers that have good cultural fit and strong entrepreneur-owners who want to grow with us, and can support our objectives as a regional SINGLE SOURCE B2B provider.

When did it become OK to just be OK?

2011-07-18T11:43:00.000-07:00

A funny thing happened during the last four years of the recession. It seems that it has now become OK to just be OK. It appears that we have re-defined success at much lower levels of expectation than prior to the recession. It shows up everywhere in our language. A few examples:

· “Flat is the new up”

· “We’ve maintained our position”

· “We’re up from last year” (but up is still well below 2008 or 2009)

· “We’re holding our own”

· “We’re doing well…considering the economy”

Is it true that we no longer seek to achieve new heights or lofty objectives? Have we become less powerful, less motivated, less capable, and less confident? When was the last time a leader advanced a bold objective like “Put a man on the moon in the next decade?” How would we react if someone did advance an idea so bold? Would we snicker and roll our eyes? Do we now feel powerless to take on such a significant challenge?

We not only no longer expect and demand greatness; we have become tolerant of mediocrity. It now seems unfashionable to differentiate between levels of performance. People are incapable of providing and accepting constructive criticism about improvements. We congratulate each other for mediocre performance. The overwhelming us of the word “awesome” is one example.

I seldom attend a meeting anymore where someone is not congratulated for an “awesome” performance. It doesn’t seem to matter what the performance level is, the response is still the same: Someone who can’t get the basics right for an event or project is congratulated on an awesome job; a leader who barely maintains an organization’s or government entity’s status is saluted for an awesome term; the president of a company who avoids risk and therefore doesn’t make a mistake is saluted for maintaining the status quo.

Certainly there are pockets of exciting opportunity. I see these everyday as our consulting firm works with the firms who are becoming Colorado success stories. However, this innovative segment is less than one-third of the economy. It is a different world with the mainstream two-thirds. Is this malaise of mediocrity the product of the “everyone gets a ribbon” generation, or “grade inflation,” or just lowered expectations? Is this condition temporary, or are we witnessing a seismic cultural shift? Has our collective desire for greatness and achievement been battered and diluted by economic stress?

Is it just me, or has it become OK to just be OK?

Colorado success stories: Ayuda Management Corp.

2011-07-04T14:46:00.000-07:00

Under-promising and over-delivering are keys to government contractor, Ayuda's success

This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on April 5, 2011 in ColoradoBiz magazine or you can read it below.

Maria Vogt and Sonya Yungeberg are co-owners who lead Ayuda Management which provides services to a select client base in the areas of general contracting/construction management, construction defect repair, homeland defense consulting/security system design and installation, and environmental consulting.

The company became a Small Business Administration 8a-certified minority business contractor in 2006. Today, a significant portion of its business is in projects with government entities. The company has grown from $275,000 in revenues in 2006 to $25 million in 2010. Ayuda Management has been recognized as one of the 2011 Colorado Companies to Watch.

When I recently met with the two partners over lunch, they collaborated on the responses to my questions about the business. I was reminded how well they work together. Over the last five years, they have developed a close business partnership that has been a critical ingredient to Ayuda's successful growth.

Your operating philosophy seems unusual for a government contractor.

We operate with a few basic principles: We do what we say we'll do. We under-promise and over-deliver. We focus most of our energy on building clients for life. Our processes, hiring, reward systems, and training are centered on the belief that delivering high quality service to our clients leads to repeat business. We stress to all of our people to put client interest before profit. We reward our employees not based on profit, but on customer satisfaction. We feel that, if the customers are pleased, profit will follow. We like working with the Federal government. We understand the Federal systems and procedures and perform well in that environment.

You have an unusual sales compensation system. You don't reward for generating new customers, but for repeat business with existing customers.

It bothered us in previous companies that the emphasis was always placed on getting the next new customer, but not necessarily on doing the best job for existing customers. So we decided that we would reward our people for getting repeat business with existing customers. This puts the emphasis on maintaining excellent relationships, encouraging strong, open communication, and a commitment to over-delivering on the current projects. Clients have responded. When they are pleased with our performance, they want to offer us opportunities on newer and larger projects.

Has the recession caused any bumps for you?

There was one... very large bump. In 2009 we had a client that went into bankruptcy leaving a large balance unpaid. We still owed the subcontractors and suppliers. We recognized that how we handled this problem was a defining moment for our business. We wanted to do the right thing - to pay everyone. So we met with all the subcontractors as well as our bank and had a direct, open, and honest discussion about what we thought we could do. Everyone bought in to the plan. Our bank and our bonding company could not have been more supportive. It took us over a year but everyone got repaid - it was over $1 Million.

Taking a $1 million out of your pockets must have been painful.

We took a hard look at every expense and really tightened our belts. We decided we could answer our own phone calls for a while. It was actually a good experience because it forced us to really re-examine our overhead and expense structure. We feel really proud that we were able to make everyone whole.

What are the keys to continued growth over the next five years?

We want to expand our services and revenue in the Federal marketplace. We are exploring the development of a teaming arrangement that has been sanctioned by the SBA. This is a "mentor-protégé" relationship with a larger firm with a greater geographical footprint so that Ayuda can meet the qualifications for larger federal projects. We would operate as a joint venture on a project-by-project basis. This relationship benefits both companies since the larger firm would be able to bid on projects with an 8a-certified firm, and Ayuda would have greater capacity to be able to perform these larger projects. The selection of the right industry partner for such an intimate relationship is a critical decision for us. We are looking for a company that has a similar culture and commitment to the customer.

I have to ask you about your partnership. What makes it work so well?

We genuinely like each other and respect each other. We think it also helps that we have different strengths and skills- Maria's background is in construction and business development, while Sonya is a civil engineer and very knowledgeable about project management. We operate by consensus. We agreed that if one of us ever strongly disagreed with a decision, that was probably a good reason to reconsider.

Colorado success stories: Qualvu

2011-07-03T10:47:00.000-07:00

Quallvu grows by making every consumer's opinion count

By David P. Mead

Editor's note: This article was first published in ColoradoBiz magazine earlier this year.

Recently I spoke with John Williamson, CEO of Golden-based Qualvu, which has introduced disruptive innovation to the world of consumer focus groups, surveys and qualitative consumer market research. Qualvu was recognized as a 2010 Colorado Company to Watch.

Q: How did you decide to get into the business?
A: Every Fortune 1000 consumer-focused company in the world uses qualitative research extensively. The industry offered interesting opportunities for a startup: the chance to disrupt a market largely untouched by web-based innovation, to introduce self-serve methods, and importantly to make qualitative research accessible to thousands of companies beyond the Fortune 1000.

Qualvu, founded in early 2008, pioneered a breakthrough online experience for conducting web-based consumer feedback, allowing businesses to take their qualitative research online without losing the face-to-face connections crucial to understanding customers. By connecting companies with their customers around the globe via webcams, flip cams and even consumers' smart phones, Qualvu delivers more compelling and actionable business intelligence than focus groups, and because of cost efficiencies, it's available to any business. We call it "finding your truth" - and it's a really empowering Do-It-Yourself experience.

Q: How do you compete and achieve differentiation?
A: Qualvu was first to market with an innovative process that allows any user with an Internet connection - either PC or video mobile phone - to provide video-based feedback at the press of a button. Clients realize speed, cost and global reach advantages. Our clients can set up projects at any time day or night, and gain access to their consumers at home, at work, while shopping, or anywhere they interact with the client's products. Over the past 3 years, we have developed a proprietary process and technology to convert the data to highlight reels of key insights as well as online video reports too.

Q: What have been your biggest challenges?
A: We have constantly fine-tuned every aspect of the experience - from a self-serve project portal, to finding better participants, to delivering online reports within hours complete with video highlight reels of the most relevant and compelling consumer feedback, to creating completely searchable video. Every day is a new breakthrough in our refinement.

Our biggest challenge is getting the word out! We're just now starting to really pop on the industry radar, as we've attracted a who's who of clients, such as Chrysler, Procter & Gamble, eBay, Yahoo!, T-Mobile, Disney, Adidas, Pfizer, just to name a few. We'll start expanding our penetration beyond these larger companies as people begin to realize we're a site for any business that needs deep insights to make better decisions.

Q: What are the keys to continued growth over the next 5-10 years?
A: Relentless innovation to keep our technical and process advantages. A lot of that has to do with enabling breakthroughs in data mining video content, so our clients can increase the value of every project over time as they consolidate and re-assess consumer video data, trends, and insights. The beauty is that the more you use Qualvu, the better it gets.

Q: How do you maintain the culture and still build the management team required to grow?
A: We find great people and promote from within. We find smart, creative people who have a positive attitude and a strong work ethic who want to be a part of what Qualvu is accomplishing. One of our mantras to every new hire is, "Welcome to Qualvu. You'll do the best work of your career here." People see career paths because Qualvu is a meritocracy. We try to reward effort, talent, initiative, and values.

Q: How do global factors influence your growth?
A: Anyone with an Internet connection around the world can provide information vital to our clients' products and services. Certainly given the economic conditions globally the past couple of years, more brands are trying to do more research with less - and that's helped Qualvu gain traction more quickly I believe, as these types of conditions have the tendency to spawn new models that break through because buyers are more open to innovation to solve their business problems.

We opened an office in Dublin this year to expand our global reach. Dublin is accessible, has a multi-national workforce, and is cost efficient. Interestingly more money is spent on qualitative research today in Europe than in the US, and we intend to support our global client base with expansion to other markets too.

Failure to launch: Seven reasons business strategies don't succeed

2011-06-21T07:34:00.000-07:00

By David P. Mead

Superior execution is one of the strengths of the Colorado success stories we have been profiling over the past few months. But these companies are the exceptions; nearly 65 percent of all strategies fail to reach expectations.

Why do so many business strategies fail? Barriers to successful planning and execution develop in all companies over time. In fact, some of the very things that help a company succeed at early levels can prevent them from succeeding at the next level. The key is to address these challenges so that the path to execution is uncluttered. Below are seven reasons company strategies fail to deliver desired results:

1. No clear definition of success
Fuzzy goals lead to fuzzy outcomes. While it seems obvious, many organizations simply don't articulate the specific goal of a business strategy. If the goal of your customer intimacy strategy is to form deeper customer relationships, that's fuzzy. If the goal is to increase customer retention by 10 percent and increase annual revenue per customer by $10,000 and net profit by $1,000, that's clear. Here, forming deeper customer relationships is simply the mechanism to achieve the goal.

2. Too many goals
When everything is a priority, nothing gets accomplished. Many so-called strategic plans have too many goals, objectives, success drivers, strategies, initiatives and so on. Worse, it's not clear how these various appendages are linked. Is it any surprise these plans sit on shelves and collect dust? Choose to do fewer things, but do them much better.

3. Metrics and alignment - Either no metrics or vague metrics
Many plans are simply a brainstormed list of things to get done by unspecified people at indeterminate times. A plan with specifics outlines who will do what by when. It takes into account the sequencing and timing of tasks, activities and resources. Make certain that the goals of everyone in the organization are aligned to the few key objectives.

4. Visibility - Progress isn't measured and managed
Ever notice how plans placed in the spotlight flourish while those left in the dark shrivel? Any plan worth executing is worth tracking. A monthly meeting with a tight agenda can quickly determine what actions have been taken; what progress has been made; what will be accomplished over the next month and by whom, and what, if any, challenges have emerged. This builds commitment, accountability and confidence in the process.

5. You lack the right people
Some of those nice people who work for you may not be the right people to get the job done. That statement makes you uncomfortable, doesn't it? Many have been loyal, are committed to the culture, and may be friends and family. However, if you are truly committed to winning, or achieving success - however you define it - then at some point you have to take a long, hard, honest look at the capabilities of your people. Point them in the right direction, support them, develop them - give them a fair chance to succeed. But if they can't get it done, then your responsibility is to get people who can.

6. Flexibility - Failure to update the plan to stay real
Reserve the right to do what makes sense. Plans are based on assumptions that can change over time. If they do change, then the plan may need to change. A "recalibration" meeting every 8 to 12 weeks is a good forum to test your assumptions and determine which, if any, have changed. The meeting may result in either a revalidation or redesign of the plan. It ensures the plan stays real and relevant.

7. Reaction to failure - Failure is met with indifference or an inquisition
Is your team serious about its definition of success? Your response to failure sends a clear message about your commitment to winning. Just as importantly, it sends a message about your credibility. Do you ignore a failed initiative and move on to the next big thing (which conveys that you really weren't that committed and you shouldn't be taken seriously)? Do you look for scapegoats (which communicates that you don't take personal responsibility and can't be trusted)? Or do you first look in the mirror, take responsibility, then publicly commit to getting it right, and effectively engage your people to make it happen? Your choice speaks volumes about who you are as a leader.

Don’t be held back by past success

2011-06-20T06:42:00.000-07:00

The greatest challenge can be the SECOND strategic success.

By David P. Mead

The business is profitable. It generates cash. There seems to be no end to new ideas and plans to invest and grow the company. But ideas seem to almost never get evaluated, or if evaluated, never are seriously considered. The company continues to focus on the familiar strategy, with the founder maintaining, “This is what got us here.” Many small and midsize businesses can be held back by past success. Their early strategies are so powerful and deeply ingrained in the fabric of the company that change is all but impossible.

Continuous rebuilding of strategic direction is not only healthy, but important to company growth. Where once a change in strategic direction occurred every generation or two, the pace of change now requires a new direction every three to five years…much faster in technology industries. Yet we find that “strategic renewal” is rare in closely-held entrepreneurial companies. The reason can often be traced to the source of their success.

The business strategy which ultimately emerges from the entrepreneurial survival phase is the product of years of trial and error. The successes and failures of personal interaction with customers, products and markets forge the confident and unshakable strategic view of the founder. Entrepreneurs with highly creative and successful strategies are often so charismatic and strong-willed that few managers have the self-confidence to challenge by fighting for fundamental change. Admiration and respect for the accomplishments of the founder can also discourage open disagreement. After all, if the strategy could be improved, wouldn’t the founder have already done so?

There is another reason that strategic change is difficult in successful entrepreneurial organizations. The founder surrounds himself or herself with people who believe in the founder. These people tend to view the world in the same way. This homogeneous group is reinforced through hiring, training, and leadership. The similarities are further strengthened by a shared company culture. This singleness of purpose helps greatly as the founder’s initial strategy fosters rapid growth, and consistent delivery of products and services is essential. These people are the implementers of the founder’s vision. However, when a fundamental change to strategic direction is necessary, these same implementers are not likely to contribute a creative perspective. They are more likely to review the reasons for past success than they are to visualize a different future.

In short, the founder’s creative strategic insight and charismatic organizational leadership will typically create blinders to the urgent need for fundamental change. When everyone shares the same perspectives and experiences, we have a very vulnerable business – even if it is successful today.
Studies of the strategies of entrepreneurial companies confirm this. The founder invents a great business concept. New strategies, however, rarely emerge until a new generation of leaders emerges. If talented potential successors eagerly advance their new strategies before they are in control, painful, destructive conflict often results.

Founders of successful companies have found ways to avoid the pitfalls of strategic stagnation:

• Share the credit for past successes. Describe them to the organization as group insight rather than as “my strategy”. Stress that change is critical to survival. Express frequent concerns about competitive threats to the current ways of doing business. Do not let anyone become comfortable with the status quo.

• Celebrate the diversity of opinion in the organization. Look for ways to recruit new people with different backgrounds and experiences into the company. Consider hiring people outside your industry.

• Make strategic planning everyone’s responsibility. Encourage everyone to challenge current strategic assumptions. In management meetings, ask everyone to identify the critical assumptions for continued success. Ask your outside board of advisors, or outside board of directors to question your intended sources for future growth.

• Be open to new ideas. Be “non-defensive” in your thinking. Encourage “non-linear” thinking and “what if” questions. Avoid justification of past actions or quick responses such as “we tried it before and it didn’t work.”

• Don’t accept a poor economy as an excuse! Too much credit is given to strategies that succeed in a good economy, but cannot hold up during a poor economy. Don’t accept a poor economy as an excuse. Make your company and its management stand on its feet regardless of the economic climate.
The greatest challenge for an entrepreneur to create the second strategic success. The critical review of the reasons for past success is a vital part of the process. If the founder and leader of the organization will demonstratively lead the challenge to his or her own aging strategic insights, new ideas and perspectives will be encouraged and the company will profit from consideration of a greater number of strategic alternatives.

Seven traits of Colorado success stories: Why some companies grow and others get stuck

2011-06-07T05:22:00.000-07:00

Since the beginning of this year, I have met with the CEOs or owners of over 120 private companies. These companies range from new technologies, products and services in such diverse fields as education, web conferencing, burgers, trucking, logistics, steel distribution, medical devices, focus groups, outsourced services, and social media. Some of these companies are growing - some quite rapidly; others are stagnant or stuck.

Why are there such differences? Certainly companies that depend on some industries such as homebuilding or construction have been severely impacted by the economy. However, blaming stagnancy solely on the economic malaise that has descended on the US since 2007 may be an oversimplification. I believe in some cases, the recession has just highlighted the differences between the good, well-managed companies from those whose fortunes rise and fall with the economy.

Companies that have become "Colorado success stories" over the past four years share certain traits:

1. Lifestyle or Equity Value. Be clear with what type of company you want to be. A lifestyle company can allow the owner to call his/her own shots and to move at his/her own pace. It is run for the cash flow and lifestyle benefits of the owner(s). In an equity value company, the owner strives to build real assets with a scalable, tangible value that can be bought and sold. This leader is willing to sacrifice some short-term gains in order to invest in growing the market value of the business.

These owners focus more on building value as seen by potential buyers: sustained improvements in revenue/EBITDA, and a strong management team that can operate and grow the business without the owner's constant involvement. There is no right or wrong answer to the lifestyle vs. equity value question, but owners must be clear in the distinction. Straddling both lifestyle and equity value camps is sure to generate both lower current cash (compensation for the owners) as well as lower growth and value potential (lower equity value).

2. Empower employees. Companies can't grow beyond a certain point if all of the real decision-making stays in the hands of the owner or a small group of managers. Growth companies look to empower employees to make decisions. They also develop a culture that allows employees to make mistakes and a mechanism so that they can learn and grow from the mistakes. NewsGator, a pioneer in enterprise social computing, uses a facebook-like platform to communicate project status to a broad audience of employees. Employees not involved directly with the project are encouraged to post suggestions and comments.

3. Hire for the next level. Companies that want to grow understand that they need talent that can manage at the next level. Successful companies hire people who can grow 1-2 levels higher in the organization so that the talent pool is constantly being strengthened. These companies also understand that paying more for top talent more than pays for itself.

4. Develop flexible strategies you can execute well. Traditional approaches to planning and execution assume away uncertainties and set a fixed plan in place for a year or more. Successful companies are developing multiple possible views of the future, developing a plan and actions, then revisiting the plan every 8-12 weeks to adjust to changes in the market or the competitive landscape. Otterbox, the designer and marketer of protective cases for smartphones, has grown 1500 percent over the past three years with a flexible approach that re-evaluates operating plans every 6-8 weeks for possible adjustment.

5. Develop an adaptable organization. Successful companies focus on creating a culture of adaptability. They develop an organization, and leadership that can react quickly and make necessary course corrections in response to market opportunities.

6. Focus on a superior customer experience. Dan King of ReadyTalk calls it developing "emotionally-connected" clients; Maria Vogt and Sonya Yungeberg of government contractor, Ayuda Management, call it "under-promising and over-delivering". These companies focus on wowing the customer and build systems and hire and reward people who want to delight the customer with every interaction.

7. Play offense instead of defense. If you do anything long enough it becomes a habit; then it becomes part of your culture. Many companies have created defensive cultures with several years of cost-cutting and deferring or eliminating new projects and new products. "NO" has become the operating word for "stuck" companies. Successful companies are looking for opportunities to develop and test new business models, new products and new projects. They see this market as ripe with opportunities to grow and innovate. "HOW" is their operating mantra.

Colorado success stories: Smashburger

2011-05-16T08:43:00.000-07:00

Editor's note: This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on March 22, 2011 in ColoradoBiz magazine or you can read it below.

Smashburger is the fastest three-year start for a restaurant company - in history - to almost $135 million in system wide sales. I recently spoke with Smashburger CEO Dave Prokupek about the appeal and trajectory of the company in the midst of the worst recession in a generation. He will be among the featured speakers on April 27-28, 2011 at the Rocky Mountain Corporate Growth Conference.

Why would someone invest $20 million in a new hamburger chain?

While it might seem, illogical, we saw several factors that made this business very appealing. First, research showed that while the hamburger was America's favorite food, people were dissatisfied. There was opportunity in the ‘better burger' category - a segment which is projected to double over the next decade. Second, we saw an opportunity for a disruptive innovation with a new restaurant model that we believe will be the model of the coming decades. The model has a small footprint (about 2,000 square feet), sit-down service, good food, beer and wine service, and fast service (average 23 minutes).

You're not competing with McDonald's and Burger King. Who is the competition?

We don't primarily compete with the big three burger chains which control 70 percent of the market. In the "better burger" category we compete against Five Guys Burgers and Fries, the local Bar & Grill, or casual dining restaurants like Red Robin or Applebee's. Interestingly, our biggest upside surprise is that about half of our customers say they would have gone to a non-burger sit-down restaurant such as PF Chang if they hadn't dined at Smashburger.

To what do you attribute for the fast growth?

We had a better idea and are very well capitalized. We took advantage of the recession and have been able to make very good real estate decisions and attract very talented, experienced people. We started franchising very early - after only four stores. Since it requires a relatively low investment to open, Smashburger locations offer a superior return on capital. We were able to attract 32 of the top restaurant franchise companies which committed to open 450 locations and who currently manage over 650 restaurants. These companies had the capital so that they could expand aggressively during the recession without the need for bank debt. These franchise partners see Smashburger as a better use of capital than other restaurants. Today, we are about 50 percent franchised vs. company-owned locations. Over the next five years, we expect that to flip to 60 percent-80 percent franchised.

That addresses the business-side of your growth, what attracts the customers?

Consumers give us high marks for ‘great food' (93 percent) and ‘friendly service' (94 percent). The 'smashburger process' seals in the juices so it's a great burger. We recruit and screen our employees for friendliness and a service personality, and we train to a casual dining hospitality standard-of-service. We have secret shoppers in our restaurants every week. We also offer a cash bonus to server crews for high service marks and the cooks for speed and accuracy. Over 90 percent of our customers say they will visit us again.

What are your biggest challenges?

Maintaining culture and consistency as we grow. We continue to recruit from top restaurant companies to help manage the growth. We look out two years and hire people with the potential to rise two to three levels in the organization.

We recently instituted what we call our "high fives": excite and delight, perfect food, pride in place, ‘it starts with me', and ‘do well, do good'. These ideas reflect the core values of Smashburger that we want to reinforce every day with every customer. We are very consumer and metrics-driven. We measure and reward the attitudes and results that are important to our continued success.

You have an interesting blend of people with restaurant experience as well as those with other backgrounds?

It's about 50 percent/50 percent. We think that helps blend new ideas and approaches with the critical restaurant expertise. We recently have developed a training and modeling program which pairs very bright, talented "30 somethings" with our senior executives to accelerate their experience and growth to be able to fill future leaders.

What keeps you awake at night?

We have some clear advantages. Being well-capitalized is a clear differentiation. We have to continue to be smart with real estate decisions, especially in new international markets. We need to continue to stay on top of consumer trends - continually innovating our offering including our food. We launched the brand very cost effectively essentially with social media, PR, and active cultivation of the ‘food bloggers: and our fans.' We need to continue to develop that social media capability and connection.

So what's ahead for Smashburger over the next five years?

We are focused on building the #1 brand in our space. International expansion is a key strategy. We are currently looking at Canada, Australia, London, and the Middle East. We are evaluating whether we will offer a localized menu or western menu in each location. We already offer a specialized local burger in each of our U.S. markets. We have tremendous upside - we plan to be a $500 million revenue company within the next few years

What do burgers, focus groups and web conferencing have in common?

2011-05-07T14:04:00.001-07:00

What do burgers, focus groups and Web conferencing have in common? All are crowded, competitive spaces that might be considered to be commodity markets. Most of the products are relatively similar with little differentiation among competitors.

Conventional wisdom might suggest that these markets have limited opportunity for new entries unless sold at a lower price. Yet even the most commoditized markets offer opportunities for innovation, new business models and superior execution.

Several Colorado companies like Smashburger, Qualvu, and ReadyTalk have changed the paradigm in their categories. Each of these companies has enjoyed significant growth during the recent recession.

Enter a niche with a better experience.

Smashburger found that while the hamburger was America's favorite food, people were dissatisfied with the general fare offered by the major competitors in the market. So it developed a way to deliver a more flavorful, juicy, fresh burger - smashing the burger to the grill to seal in the juices.
However, its success was not just about entering the "better burger" niche. Smashburger found that consumers also wanted a better experience - a fast casual sit-down dining experience with very friendly service in a smaller, high-energy setting. Better burgers and a better experience are just the start.
The company has demonstrated the ability to scale with superior execution in its hiring, training and rewards for great service, as well as by tracking data and metrics to ensure consistent delivery. It has become the fastest three-year start for a restaurant company - in history.

A disruptive innovation with "home video."

Clayton Christensen, author of "The Innovator's Dilemma," coined the term "disruptive innovation" to describe innovations that improve a product or service in ways that the market does not expect, typically by lowering price or designing for a different set of consumers.

Characteristics of disruptive businesses, at least in their initial stages, can include lower margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics.

Qualvu changed the way that focus groups are performed. By putting video cameras (now in most smart phones) in the hands of consumers to provide feedback and testimonials about consumer products, it can develop, execute, upload and analyze a focus group with the customer's desired demographics - virtually overnight - at significant savings.

Consumer products companies, such as Procter & Gamble, Johnson & Johnson and Adidas, can achieve faster turnaround, more cost-effective research and video testimonials from real people where and when the products are used.

Using "homemade videos" for research would not be something that would occur to established market research firms who are more likely to disregard this segment of the market in lieu of the traditional methods, giving Qualvu a window of opportunity.

A new business model - Free.
ReadyTalk entered a crowded conferencing arena with a new approach. It had developed technology for Web conferencing that had a much lower cost than audio. ReadyTalk decided to provide the Web conferencing service for free along with the audio conferencing as a way to differentiate itself in the market among the large competitors and to buy market share.

At the same time, ReadyTalk saw that the actual cost of audio conferencing was significantly lower than the per-minute fees being charged by the major providers. So it priced its audio product significantly below the then-prevailing rates. ReadyTalk was able to develop customers and gain market share with its lower pricing and free Web conferencing services model.

Ultimately, as the market matured, demand flipped, and the market required more Web conferencing services. ReadyTalk was then in a position to change its pricing model and charge customers for Web conferencing services. The company enjoyed 483 percent growth between 2004 and 2009 and added another 35 percent growth in 2010.

Clayton Christensen explains the opportunities for these companies this way: "Because companies tend to innovate faster than their customers' lives change, most organizations eventually produce products or services that are too good, too expensive and too inconvenient for many customers ...unwittingly opening the door for disruptive innovation and new business models."

Colorado Success Stories: ReadyTalk

2011-05-02T12:01:00.000-07:00

CEO attributes growth to innovation, service and culture

By David P. Mead

Editor's note: This is another in a series of Colorado company success stories as told by CEOs and business owners. This article was originally posted in Colorado Biz magazine on April 12, 2011

ReadyTalk, provides audio conferencing, web conferencing and webinar services for companies. ReadyTalk emerged from the ashes of a dot-com-era bust, when its co-founders transitioned to a strategy to provide wholesale web conferencing services to infrastructure-based audio conferencing providers.

The new strategy was so uninteresting to the venture capitalists that they pulled the plug on the company and allowed the founders to retain the rights to the technology. While the business may not have met those initial VC expectations, ReadyTalk, by most measures, has become a very successful business. During the period 2005-2009 the company grew 483 percent and then added another 20 percent growth in 2010.

The company will deliver over 600 million minutes of audio and web conferencing in 2011 and anticipates growing to 150 employees by the end of the year. Dan King and I recently reviewed the company's record of progress and growth. He'll be a speaker at the Rocky Mountain Corporate Growth Conference on April 27-28 at the Inverness Hotel.

What is your differentiation?

We compete with some of the largest technology companies in the world, including carriers and technology-based service providers such as Citrix (GoTo Meeting and GoTo Webinar), Cisco (WebEx) Microsoft and Adobe. They all deliver essentially a "self-serve model," providing a very specific tool set and then leaving it to the user to navigate their own way.

We deliver a better, and more complete, overall experience, which includes both technology and service. Unlike our competitors, we incorporate all of our web conferencing features into a single product. This allows our customer to use ReadyTalk for an impromptu, collaborative meeting today and then use it for a large-scale webinar tomorrow. Our teams provide hands-on support during live events and 24x7 customer care. Customer feedback is solicited in a variety of ways and incorporated into our product development process. Between the technology and the attention to customer service, our customers are extremely engaged and feel connected to our company.

Who uses your products and services?

ReadyTalk's audio and web conferencing services are used by thousands of national and international customers. American Marketing Association (AMA), Gallup, Newsgator, ITT Visual Information Solutions, and others use ReadyTalk's webinar services for lead generation, employee training and customer education. Rally Software, Frost and Sullivan, the US Small Business Administration and others use ReadyTalk's audio and web conferencing for product demos and collaborative meetings.

How has the recession impacted your business?

It's been both good and bad for our business. We lost some customers who either sold to larger companies or went out of business. We've also felt a lot of price pressure resulting from our customers' efforts to reduce operating expenses. On the other hand, we've benefited from the fact that in a down economy companies look for cost-effective alternatives to travel, and we provide a great solution for that. Our remote meeting and webinar services provide a huge return on investment for our customers.

What are the keys to continued growth over the next 5-10 years?

The audio and web conferencing industry is highly competitive. We need to continue to innovate new product functionality that meets the needs of our customers while continuing to maintain our high standards for customer service, product reliability and ease of use. We also feel it's critical to maintain our company culture as we grow our business. We've built a really strong culture around execution and customer service that has allowed us to significantly outpace the overall growth of our market. We expect to double in size over the next 3 to 5 years and it's critical that we maintain our workforce quality and a consistent culture.

Tell us about your culture.

Our culture starts with us being clear about our sense of purpose and values. We strive to hire great people - highly competent and aligned with our orientation to product quality and customer service. We work hard to ensure that the people remain highly engaged. We've created a very open work environment which encourages communication, collaboration and transparency. We feel it is in our interest to be employee-centered, with generous employee benefits including an ESOP that we recently implemented in order to allow employees to share in the value we create as we grow the company.

How do you maintain the culture?

It starts with a consistent hiring process - we hire for fit, values, attitude and natural talents. We utilize a peer-interviewing process, which reinforces these traits. We also invest in manager training (communication and understanding), teambuilding and goal setting to help maintain this.

Is it difficult finding good people and good leaders?

Yes. Hiring top software R&D talent has always been a challenge, and more so of late. We tend not to compromise on our hiring standards, and that can slow down our progress. We have an ongoing recruiting process and are always looking for new employees.

What do you think of the business climate in Colorado? Would you build your business here again? In general Colorado has a very healthy business climate for building a software-based services company. Long term, we'd love to see the state do more to promote software technology business and continue to invest in education, both K-12 and post-secondary.

Colorado success stories: Otterbox

2011-04-26T05:12:00.001-07:00

Founder cites innovation, strategic planning and adaptability for success

This series of articles about clients and friends focuses on companies that have grown during the downturn with new business models, flexible strategies, and superior execution. This article was originally published in Colorado Biz magazine on April 26, 2011.

Curt Richardson, CEO and founder of OtterBox, recently spent time with me, sharing some of the challenges and keys to OtterBox's explosive growth. The OtterBox tagline, "We've got technology covered," is descriptive of the protective cases the company designs and sells for smartphones and other technology devices.

How do you compete with all of the other cases and covers on the market?

Our biggest competitor is ourselves. We are a premium brand and have a superior product. We need to stay ahead of the market, to continue to "out-innovate" both in products and business processes, systems, and brand. Sensing and adjusting to the market is very important. What does the customer "feel" with your product? We are constantly looking to improve. We re-examine our strategic plans and action initiatives every 6- 8 weeks, sensing what is happening in the market and making any necessary adjustments.

Why do you revisit strategic plans every 6-8 weeks?

We have grown 1600 percent over the past 3 years. We operate on what we call "Otter-time." Change that may occur over a year or more in another environment may happen at OtterBox in a month. Plans and initiatives need to adapt to the rapid growth and the changing market. We utilize a strategic planning process that focuses everyone in the company on productivity, competitiveness, and adaptation. Every division in our company has a "plan on a page" that contains their initiatives. Every 6-8 weeks we re-evaluate and make adjustments based on the progress and any market changes.

With such significant market growth, is it difficult to keep the organization focused?

We have said, ‘If it doesn't fit in your pocket, we do not do it,' meaning that we are focused on smartphones and other pocket-sized technology." That may now expand a little bit with the growth of the iPad, but we intend to remain very focused.

Has the growth path always been smooth?

There is always a bottleneck or constraint. The constraint seems to rotate through three departments. Last year, we focused on improving the supply chain (getting the right mix of products, to the right customer, at the right time) and staying ahead with systems. This year we are working on upgrading our sales systems, and processes. Then, we will move the focus on to engineering design and product development.

You have a unique culture. How do you maintain the culture and still build the team required to grow?

We may change the way we do things, but our core values do not change: Treat each other the way you want to be treated; being totally open and honest. Things like gossip are not tolerated. We don't throw people under the bus. We use open book management. We have profit-sharing. We focus on high performance, being adaptable and accountable, and systemic in our thinking.

Is it difficult finding good people?

Yes, finding people who fit the culture is a challenge. We look to hire people who have ‘been there and done that.' One of our best sources is our employees. Each good hire typically knows three other good people. Again, it all backs up to the strategic plan which dictates the organization, which then dictates the specifics for the job and the person.

How do global factors influence your growth?

We are truly a global company. This impacts many things: product design needs to be country-specific, in tune with needs of the region; distribution needs to be global; we are moving manufacturing closer to the end-customer. We have offices now in Cork, Dubai, Hong Kong, and Shenzhen.

You have grown to one of Colorado's largest private companies. What are the keys to continued growth over the next 5-10 years?

Continued innovation: sense what the customer wants and exceed their expectations. Innovation needs to be in systems and business processes in addition to products. Speed and adaptability will be critical. We need to continue to focus on what we are good at - product development and marketing. This will be facilitated by the way we develop and execute our strategic plan. Last year we managed for growth. This year we will manage more for profitability. The market itself is projected to more than double by itself this year, so we expect to double our size again this year. Revenue size is not important in and of itself. It is more a measurement of our brand, a high-end brand. We are building a long-term company with a strong legacy.

What do burgers, focus groups and web conferencing have in common?

2011-04-24T09:41:00.000-07:00

Several Colorado companies like Smash-burger, Qualvu, and ReadyTalk have changed the paradigm in their categories. Each of these companies has enjoyed significant growth during the recent recession.

Enter a niche with a better experience.

A disruptive innovation with "home video."

Colorado success stories: 3t Systems

2011-04-19T15:01:00.000-07:00

From the Front Lines: Colorado Success Stories

This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on April 19, 2011 in ColoradoBiz magazine or you can read it below.

Down-to-earth customer focus helps company thrive in the cloud

Discussions of cloud computing and Managed IT Services have become the rage. 3t Systems, through its strong commitment to client satisfaction and customer service, has grown dramatically - mostly from word-of mouth referrals - doubling in the last year alone.

Ciaran Dwyer, President and CEO, was born in Kilkenny, Ireland and came to Colorado as Controller of the Irish Dairy Board in 1999. He fell in love with Colorado and in 2001 joined 3t Systems, what was then primarily an IT consulting company. In 2008, he took on responsibility for the Managed Services division becoming CEO in 2009. We recently discussed the explosive growth that 3t Systems is experiencing.

The recession brought some serious issues for many companies, but did it create an opportunity for 3t?

When the bottom hit in 2008, our traditional consulting business flattened out. We decided on a significant change in strategic direction. We had been providing our own blend of ‘high touch' hosting for many years, we provided software as a service for our sister company's clients from our datacenters and we believed that the recession would boost that aspect of our business. Clients realized that they needed to address their aging IT infrastructure and, with the appeal of our fixed monthly fee, the ‘cloud' solution drove a huge increase in that part of our business, so much so that our hosting business has surpassed our IT consulting business.

Who uses your products and services?

Our sweet spot is companies between 50 seats and 1,000 seats with vertical specializations in the healthcare, financial services, and construction industries. In the Front Range, however, we have clients from a broad array of industries and like that diversity. We like the blend of IT consulting and managed services, since the consulting element enables us to maintain a high level of technical proficiency and vendor certifications that are very useful in delivering high quality managed services. It all fits nicely together into what we call IT Co-Sourcing; a partnership approach to IT Outsourcing. Some clients have a strong IT staff but need our pinch hitters for a specific project, while others don't have any dedicated IT people and hand it all over to 3t to be an extension of their team.

What makes you different?

Most of our competitors started as either data center providers or managed services providers. As such they are either operationally efficient or customer-centric, but generally not both. We are somewhat unique in that we have experience with both customer relationships as well as operational excellence. We are totally focused on the user experience. We understand the needs of small and mid-size client organizations. Since many of these companies they have little or no IT resources, they rely on us to take more responsibility and provide them a complete solution. Many times the decision to outsource has been precipitated by a trigger event - an outage, a loss of personnel, or running out of capacity - so these clients need someone to help quickly get them back on track.

What are your biggest challenges?

With the market for managed services growing so fast, by far our biggest challenge is staffing, finding people with the right skills. Virtualization skills are in high demand right now. Since our culture has been to develop people from within, we will need to continue to help train and upgrade skills.

Another challenge is to define where and what we want the next stage of growth to be. We want our growth to be very intentional. We are embarking on a North American strategy which focuses on the healthcare and construction vertical industries, as well as a blend of different mid-size companies within the state of Colorado.

So what really keeps you awake at night - besides your 2-year-old twins?

Managing through the "growth pains" - people, client satisfaction, scale. I think about the current and future competitors and the next ways to further differentiate 3t. Most of all, I think about ways we need to grow in order to continue to be the best at serving the customer.

What are the keys to continued growth over the next 5-10 years?

An ability to take advantage of an "early-mover" advantage. We need to balance the need to scale quickly with our overriding commitment to maintain high levels of client satisfaction. We have had the benefit of growing to this point without much sales and marketing effort. We need to manage sales and marketing to the next level.

How would you describe your culture?

Fast-paced. We say a year at 3t is like three years at another company. The "3t" in our name stands for truth, trust, and teamwork. We tell clients exactly how it is. If we make a mistake, we own it and fix it.

Comment on the business climate here in Colorado.

Coming from Ireland, I see dramatic advantages here. I love the rugged individualism of the people in Colorado. People have a real entrepreneurial spirit, a glass-is-half-full optimism, and ‘mid-western values' that make this a terrific place to build a company. Everyone says that Ireland is beautiful and green but there is a reason for that. I'll take the 300 days sunshine any day.

Colorado success stories: Newsgator - Enterprise social computing: making Facebook, Twitter, and LinkedIn work for the enterprise

2011-04-11T16:02:00.000-07:00

From the Front Lines: Colorado Success Stories

This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on March 30, 2011 in ColoradoBiz magazine or you can read it below.

NewsGator specializes in Enterprise Social Computing which involves integrating social media and social computing (Facebook, Twitter, and LinkedIn, etc.) at the enterprise level. The company started in 2004, but hit an inflection point in 2007 when it married NewsGator's software product to Microsoft's collaborative software, SharePoint. NewsGator has been doubling in size each year for the last three years. I recently met with President and CEO, J.B. Holston in NewsGator's downtown Denver offices.

How do you compete? To what do you attribute the fast growth?

We have a bit of a first-mover advantage. We solve problems and fill voids in the Microsoft product set. We can easily drop our NewsGator solutions on top of SharePoint. The IT folks love us because our solutions are simple to deploy and allow them to take advantage of the latest innovations. Literally, we can email the application. We make SharePoint a much more user-friendly product. SharePoint was created when collaboration was document-centric; today it's people-centric. Our solutions enable the social computing side. Since SharePoint has a 100 million seat installed base around the world, we have a considerable available market to target.

Has the growth always been smooth? Were there any bumps in the road?

While from a financial point of view things have been relatively smooth, there have been a series of big decisions regarding focus. We had to decide to STOP doing certain things so that we could concentrate on other areas. For example, at one point we had an online consumer RSS reader (similar to Google Reader). We made the decision to port our product to Google. So, along the way, we have had to learn to focus well - and saying NO is tough.

Your culture is very important to your success. How would you describe it?

Our culture is centered on innovation and is very client-focused. We spend our days watching what the consumer is doing and determining how to deploy these new features and applications on an enterprise level. Because the adoption of new applications is accelerating so rapidly on the consumer front, we can wait to see if something is successful with the consumer before we decide to commit resources. That means we can effectively avoid false signals. By reading these signals accurately, we provide our customers with only the most valuable, innovative tools.

How do you maintain that culture?

We do a number of simple things. Communication is extremely important. We have an all hands meeting by video conference and in person every week. We hold mandatory meetings every six weeks in each region. As CEO, I am very transparent. We use our own system. Perhaps 50 times a day, I post messages on our system (like Facebook) sharing information, praising an employee, commenting on a project schedule, etc. By posting these messages on an open system, we include a broader group of employees rather than guessing who should be included on an email distribution. The pleasant surprise is when someone in the whole population comes up with an unexpected solution. Interestingly, we have reduced email use by 2/3. We also have an ongoing focus on training and recruiting which we are working to improve as we scale the business.

How do global factors impact your growth?

Currently, 30 percent of current sales are outside the U.S. We will need to continue to establish operations outside the U.S. where local and regional "go to market "strategies are different. Additionally, outsourcing and cost competition are factors that need to be addressed and balanced with such factors as speed to market.

What are the keys to growth for NewsGator over the next 5 -10 years?

The company needs to grow at least 4X over the next two years - just to keep pace with the market. How do we keep up with that growth? Talent management is the most critical variable. We'll need to find, recruit and develop the right people, including building a management team that can scale as the company grows and adapt to an ever-changing environment. Along with finding adaptable people, we need to keep pace with the technological shifts.

A great example is what has happened in our sales effort. In the early stages, we needed a high percentage of people in outside sales. Now we no longer need to evangelize; enterprise social computing is well understood, but we need sales people who can understand the customer's specific need for social collaboration much more quickly and get to a 'quick yes.' We will also need more inside sales people. With the advances of video technology, I can see a time when even our "outside sales" people will not actually travel.

Comment on the business climate in Colorado?

While there are not as many people in Colorado who have operated in a hyper-growth business environment (such as Silicon Valley, for example), Colorado employees are extremely smart, loyal and engaged. There needs to be a better eco-system in Colorado to support software companies that want to grow to a significant size. This will be a critical issue for us as we continue to grow.

COMING ATTRACTIONS:

1. From the Front Lines: MORE Company Success Stories

2. Watch for the following upcoming series:

The Coming Window for Selling Your Business. Are You Preparing to Sell During the 2012-2014 Window of Opportunity?

Colorado success stories - Houg Special Services

2011-03-15T05:57:00.000-07:00

Entrepreneurial solutions and flexibility enable growth during the downturn

When all of her high school friends were heading off to college in 1987, Jenyce Houg stayed in Denver to help her Dad, Doug, with the family trucking business. She immersed herself in learning all aspects of the business. Jenyce fell in love with the business and the fast pace and the supply of new problems to tackle and solve. She later attended Regis University and is now the CEO of Houg Special Services, Inc., working alongside her Dad and Brother, Wade. The business revenue has more than tripled since 2003 (from $10 million to $32 million) during a period that has been exceptionally trying for the trucking industry.

Jenyce, why are you involved with the trucking business? My Dad is an inspiring entrepreneur. I wanted to help him make his ideas a reality. Also I love problem-solving and it was a challenge to work in a male-dominated industry that was still much of the "good old boy" network. I have worked hard to earn the respect of people in the industry.

How is Houg different from its competitors? Houg offers a complete logistics solution - a one-stop shop for our customers which is unique in the industry. Our business model is different. We are not ‘asset-heavy.' We do not have significant fixed costs, so we are able to flex our resources to meet customer needs. We constantly look to find ways to NOT be like our competitors. We strive to develop very close, collaborative, long-term relationship with our customers. It is common for us to brainstorm with customers to develop ‘out of the box' approaches that are most cost effective for their business needs.

The last decade was already pretty tough for the trucking business and then the recession hit. How did it affect your business? We saw the recession as an opportunity and hit the accelerator. There were several factors that helped us: we have a great relationship with our bank who provides us the necessary line of credit needed to operate in this tough industry; we stayed tightly focused on the food and beverage transportation niche; with our business model, we have a flexible labor force so we were not stuck with higher fixed costs; and we embrace that our number one customer is our carriers and drivers and treat them with the respect they deserve.

What are your biggest challenges? The biggest challenge has been to learn to work in conjunction with family everyday and successfully stay focused on the same vision. We had to learn how to trust and respect each other in business as well as family, and to focus on the strengths of family members. My brother, Wade, who is president, is absolutely exceptional at customer service and recruiting the best drivers which is crucial to our success. My Dad challenges us every day with an endless supply of ideas, possibilities and boundless optimism that anything can be done if you just have passion.

Managing a $30 million or a $50 million company is different than a $10 million business. We need to continue to develop the systems and processes as well as the capabilities of the team. This past year we invested heavily to upgrade our systems. It is a balancing act to maintain the entrepreneurial spirit, while building the team capable of managing the growth.

I spend a lot of my time on the culture of the company, working with the team to find ways to institutionalize the culture: hiring for attitude, building accountability, adding recognition, and valuing people's differences. We will continue to train and empower the Houg team to make decisions, to develop a culture where people are positive and willing to exceed customer expectations every day, which starts with servicing each other as customers within the walls of Houg first.

So what's ahead for Houg over the next five years? We must continue to enhance our relationships with our internal and external customers and suppliers. We need to hear their issues and problems so that we can collaborate with them to find solutions. Over time we need to learn how to use new technology (social media, etc.), but nothing replaces the power of face-to-face interaction.

The trucking industry has and continues to face capacity constraints so we continually look for innovative ways to increase capacity. Geographical expansion is a potential strategy. We are looking at a hub and spoke plan which would potentially include regional expansion to locations where we are already sending freight. We will also entertain future acquisitions of small trucking companies to increase capacity and market share. It is important for our future success that we are well-positioned to take advantage of opportunities over the next few years.

Colorado success stories: Broadnet Teleservices

2011-03-15T05:36:00.000-07:00

Customer relationships propel its growth

(From Issues for Growth Vol.20, No. 8)

From the Front Lines: Colorado Success Stories

__________________________________________________________________________________________

This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on March 7, 2011 in ColoradoBiz magazine or you can read it below.

Imagine if you could call your entire target audience on the phone and engage them in conversation - all at the same time. You know, those very people that make a difference to your bottom line.

It isn't important if you call them your consumers, fans, members or even the general public. And it won't make a difference if there are 200 or 2 million of them. What matters is you can now interact with them like never before. You'll have more than revealing insights into what they're thinking and feeling - you'll have actionable information and statistics to hone your brand and its message.

This is the interactive voice service, Teleforum, that Broadnet Teleservices has pioneered. Recently I met with Steve Patterson, co-founder and CEO of Broadnet Teleservices to discuss how Broadnet has enjoyed continuous growth from its bootstrapped beginnings with co-founder and CTO, Brian Brown in 2004. Over the last six years, company revenue has grown by more than 60 times.

What is your differentiation?

We offer a high quality product and superior service, but more importantly, we want customers for life. We believe we offer more than a product. We strive to continuously build the relationship with the customer, always trying to "feel" what it's like for the customer to touch us. We survey and measure every time we interact with our customers and our customer. We teach our employees to ‘listen well.' Our customers actually drive the product as each customer experience is customized to meet their needs. So while our technology is second-to-none, we view this intimate relationship with our customers as our real advantage.

Who uses your products and services?

We started as a means for people in political office or candidates to reach their constituents and voters. That market fueled our early growth. We also have enjoyed great success in the Sports arena for teams who seek to interact with their fans and ticketholders. In the last few years, the market for companies seeking to interact with their customers has really begun to take off. This is the area with the greatest potential for Broadnet.

How has the recession impacted your business?

We've grown well during the recession. The real question is whether we could have grown faster without the recession. We have benefited from the increasing popularity of social media. People value having a relationship. We provide for a relationship and a conversation that is voice-to-voice - and more than 140 characters.

What are your biggest challenges?

By far our biggest challenge is that many organizations, companies, and people do not really know their customers. A good example of this is a book publisher. The publisher sells books to a bookstore or online and has no idea who the end customer is. Broadnet needs to help them identify the customers so that Broadnet can initiate the dialogue. We are looking to blend our products with social media to create the dialogue. We enable that richer, deeper conversation.

What are the keys to continued growth over the next 5-10 years?

I would say there are several strategic keys to our future: The first is to increase market awareness. We need to drive awareness in two directions - to the large company and the consumer. The large organization needs to understand how Broadnet can enable this unique and deep ability to interact with customers. From the consumer side, the consumer only needs to experience it once. Overwhelmingly, consumers are so enthusiastic that their first response to a Teleforum experience is ‘how can I do that again;' second, we need to scale the infrastructure so that we can offer more events to larger groups of people (an audience of 50 million as opposed to 50,000); third, is to stay in front of the technology so that we can offer increased features in a more cost effective way. We'll also need capital for growth and people who have ‘been there, done that' to round out our leadership team.

Is it difficult finding good people and good leaders?

The challenge isn't finding good people; it's finding world-class people. We look to develop people that can be attracted and molded into exceptional leaders. I have found that one thing you cannot coach into a person is passion. Hire people with passion and stay out of the way of their passion and they'll accomplish great things. Our job is to nurture the flames of their passion.

Colorado Success Stories - BluSKY Restoration

2011-03-14T15:43:00.000-07:00

(From Issues for Growth Vol.20, No. 7)

From the Front Lines: Colorado Success Stories

______________________________________________________________________________________________________________________

This series of interviews with Mead Consulting clients and friends focuses on companies that have succeeded during the recession through disruptive innovation, new business models, or superior execution. The stories are told by the CEOs and business owners themselves. This article was first published on February 28, 2011 in ColoradoBiz magazine or you can read it below.

Commitment to customer service is key to BluSKY's success

Terry Shadwick, co-founder and CEO of BluSKY Restoration discusses how the company has developed a consistent record of growth despite the recession. BluSKY provides emergency response for water damage, fire damage, flood damage and mold remediation on residential & commercial property.

How did you get into the restoration business?

From an early age I watched my father run his own small construction company. After graduating with a degree in Finance, I started out as an insurance claim adjuster, but found myself looking for greater autonomy. I went to work for a restoration company, opening their Denver office. I thought there was a better business model - a better way to do business. So in 2004, my partner Andy Bakker and I started BluSKY Restoration Contractors.

What is the difference with your model?

Our people and our detailed commitment to customer service. We search for the most professional, courteous employees and sub-contractors who have a strong commitment to customer satisfaction. We measure and monitor customer service closely and we use that information to make improvements to our service and delivery. We think the best measure of customer satisfaction is whether customers would hire us again. Currently over 96% of our customers say they would use BluSKY again. We try to make it easy for our people to provide the best experience for our customers and we reward and recognize the team members that receive "perfect" ratings on customer surveys.

Has the growth path always been smooth?

While the revenue growth has been smooth (from $1.7MM in 2004 to $30MM in 2010), we have learned that the business has a seasonality and cyclicality to it. We deal with insurance and mortgage companies that have multiple layers of approval which can slow payment. We began cash flow modeling to help manage and project our cash needs. The management team has embraced strategic business planning and a goal setting process that has helped us manage the growth. We develop strategic plans every fall and we update the plan twice a year based on actual results and conditions.

The construction industry has been severely hit during the current recession. How has the recession impacted your business?

The recession resulted in a slowdown of the rehabilitation work, as the Real Estate Investment companies (REITs) have deferred maintenance and property updates. We tightened up our collection practices and policies and focused more management attention on business operations as well as the sales process.

You have continued to grow every year. What are some of the actions and new programs you are taking to sustain growth?

We continue to diversify our offerings and we have added new revenue streams that we generate from existing satisfied customers. We have added commercial and apartment rehabilitation and remodeling. We also began to offer roofing and a construction defect business. Today, 60 percent of our business is insurance restoration with 40 percent from the additional business lines.

What are the keys to continued growth over the next 5-10 years?

Geographical expansion is a key strategy. We plan to add more locations (from 8 currently to 50 locations) within the next ten years. This expansion will be a combination of company startups ("greenfields") as well as acquisitions. The second core strategy is to continue to develop the management team and the growth of people who fit well with our commitment to customer focus.

You have a unique culture for a construction business.

We started out to make BluSKY a great place to work and for the past three years, we have been voted one of the best places to work in Colorado. Our motto is to "work hard, play harder." Many of our employees come from the Midwest and we believe strongly in "midwestern values" - fairness, trust, openness - doing what we say we will. We apply those values in a big circle and treat all employees, contractors, customers, and suppliers with respect. We have open book management and give employees wide latitude to find solutions and meet the needs of customers. We hire for culture, values, and attitudes first.

Is it difficult finding good people and developing leaders?

Restoration is less cyclical than construction. The recession has helped introduce construction people to restoration and to BluSKY. The stability of the restoration business looks a bit "sexier" today and we are now on the radar screen for the best employees. As I mentioned, we hire for cultural fit first. We develop our own leaders with an Emerging Leaders program and we encourage lots of training

Colorado success stories: Regis Learning Solutions

2011-02-23T09:42:00.000-08:00

From the Front Lines - Colorado success stories. We are interviewing Mead Consulting clients and friends whose companies have thrived during the economic recession through disruptive innovation, new business models or superior execution.

Colorado success stories: Regis Learning Solutions

Changing the Way Organizations Learn and Train

Editor's note: This is the third in a series of Colorado company success stories as told by CEOs and business owners. This article was published in ColoradoBiz magazine on February 21, 2011 - DPM

Recently Chris Carosella and I spoke with Michael Vaughan, CEO of Regis Learning Solutions to discuss their strategy for disruptive innovation in training and education.

Regis Learning Solutions (RLS) has a unique approach to training and learning. How is it different?

We started RLS because we wanted to change education. The traditional model is to teach people what to think: accepting what they are told, processing information as segmented fragments, doing the tasks assigned to them without understanding the full picture. However, in a world that changes as rapidly as ours, where opportunities are complex and shifting, success relies on individuals and organizations knowing how to think.

We believe that an organization’s future success rests on its ability to adapt, to help employees tune out the noise and to tune in critical thinking skills that allow for wider perspective, smarter decisions, and deeper understanding. Regis Learning Solutions was created with the goal of helping our clients use simulations to become better decision makers and problem solvers.

How did RLS get started?

The momentum behind RLS came from Regis University's desire to bring a new educational approach to business and government. RLS co-founder, Peggy Steele, created the business plan in 2003. Today we have over 50 employees and offices in Colorado, Illinois, and Washington, DC.

Our focus on simulation evolved as we worked with Regis University on research about what changes behavior. There are four fears people have about using simulations: (1) How much will it cost? (2) How much time will it take to develop? (3) How will we deploy it throughout our company? (4) How will we maintain the simulation? We built the simulation platform first for Regis University, then reduced the development time and launched.

How does RLS compete?

We're not just about training; we are about “human performance improvement.” We differentiate ourselves by how we address the “four fears” previously mentioned. We work within different budget constraints and can build simulations at the same cost of a high-end eLearning course. Our processes quickly gather and analyze the inputs and develop the simulation. Our simulations are web-based, designed to be easily updated and repurposed with reusable elements that can be reorganized for a new simulation without incurring significant development costs. RLS customers can continue to use their simulations for many years and revitalize them to address new business concerns. RLS designs deployment with an eye on the cost/benefit of delivery methods for each element of learning with roadmaps and leader’s guides to assist in the deployment. We build simulations for clients such as UPS, Hyatt Corporation, McDonald’s, Ernst & Young, Deloitte, and the Air Force.

What have been your biggest challenges?

We have two major challenges: Educating our target market about simulation and promoting the RLS brand. When some potential clients hear "simulation" they think of flight simulators or video games. It’s difficult for them to understand thatRLS is able to build simulations that require critical thinking and problem solving skills that can be applied in real world situations. They may be unaware that our simulations are based on a systems model that allows a rich, integrated approach to measuring the impact of decisions across many key performance indicators. We have learned that our sales approach has to be different – a client needs to experience a simulation to see that it can model any aspect of their business.

As for branding, we speak at events, publish articles and books, and develop robust relationships with channel partners.We have won awards that enhance our brand, including a Brandon Hall Gold Award for a simulation designed for Ernst and Young called Engagement Economics.

What are the challenges to current growth?

Managing our growth. We need people who understand business and education, preferably with experience in developing training or building simulations. They also need to have the balance of discipline and agility. We can grow faster if we have more of the right people.

What are the keys to continued growth over the next 5-10 years?

We merged with another company that was focused on the government side so our business is 50% government and 50% commercial. We’ll accelerate the government growth through our D.C. office in the areas of emergency response, the intelligence community, senior executive services, and the professional military university. Additional growth will come from productizing 40 types of simulations and creating a multi-year licensing model.

NEXT UP: BluSKY Restoration

Colorado success stories: GolfTEC

2011-02-18T07:39:00.000-08:00

Changes in strategic focus help GolfTEC thrive and grow

By David P. Mead

Editor's note: This is the second in a series of Colorado company success stories as told by CEOs and business owners that we are writing for ColoradoBiz Magazine. We are interviewing clients and friends whose companies have thrived during the economic recession through disruptive innovation, new business models or superior execution. (This article was originally published in ColoradoBiz on Feb 7th)

Recently I sat down with Joe Assell, co-founder and CEO of GolfTEC to review the strategies and approaches that the company has taken to reach its current level of success.

Mead: How did you decide to get into the business?

Assell: I was a golf pro and in 1994-95, co-founders Mike Clinton, Clayton Cole and I could see new technologies emerging (PC’s, the internet, etc.). Golf lessons essentially had been conducted the same way by golf professionals for years. We decided to find a better way to give a golf lesson, utilizing technology. In 1995 we opened our first location - as an experiment. It booked quickly and we added a second location.

Mead: What is your differentiation?

Assell: We have capitalized on a “first to market” advantage. We offer proprietary software platforms: g- SWING where we match your swing to our database which includes the motions of 150 top tour players. So the lesson is based on facts and data about your swing, rather than opinion; CaddyMaster (our ERP system) provides business intelligence about customers, location performance, on-line scheduling. It allows us to run golf instruction as a sophisticated business.

Mead: Has the growth path always been smooth?

Assell: In 1997-98 technology was “hot” and we were talking to venture capitalists. To please them, we “foolishly” started trying to become a tech company and developed technology to deliver lessons over the internet and added expensive, experienced management. When the tech bubble burst, we could not get investors, and had to reverse direction and retool back to our original profitable model – but not until we had burned through $3 Million in capital. We were very close to the edge – within 1-2 months of folding. We were able to secure a bridge loan which saved us.

Mead: Weren’t there some good things that came from this expensive lesson?

Assell: Yes, we had the technology which has become a key to our success. Also, three things happened, starting in 2001.Gart Capital Partners invested in GolfTEC. They had a fabulous history of success in sports retail and helped us stabilize the business. We also started partnering with GolfSmith (we are now co-located in 56 of their stores). Third, we started franchising. Over the next five years, we had steady consistent growth - from 18 locations to 140 locations.

Mead: Joe, how did the current recession impact your business?

Assell: We are in the retail and recreation business and we could see that retail was taking a big hit, especially specialty and luxury retail. Some retailers were reporting 35% to 50% reductions in sales. We put a strategic plan in place to respond to these dynamics. Our team did a terrific job. We were fortunate that even in our worst period (Sept ’08 through August ’09), our sales were down only 7.7%.

Mead: What are some of the actions and new programs you took to sustain growth?

Assell: First, we adjusted our strategy to focus on equipment sales. Our IT team developed proprietary club-fitting software and we partnered with Golf Magazine and Golf.com. Second, we started offering monthly payment plans that spread the annual cost of lessons and helped our customers manage their cash flow. It was amazing that 18% of our customers adopted these plans. Third, we rewarded our loyal customers by offering discounts for renewals. We offered two different months during the year when renewing customers could sign on for another year at discounted rates. Not only did this build great goodwill, but these two months have become GolfTEC's two largest cash sales months. Our results have continued to steadily improve. In 2010, our business was up 15% over 2009.

Mead: What are the keys to continued growth over the next 5-10 years?

Assell: There is significant opportunity for growth, both in same location sales as well as new locations. The “TEC” in GolfTEC stands for Technique, Equipment, Conditioning. In technique (golf lessons), we are number one on the world. In equipment, we started focusing more attention. Our equipment sales were up 70% in 2010 and there is plenty of room for growth. Conditioning is a great opportunity and one that we really haven’t touched yet. As far as the market is concerned, we see the global market as having capacity for 750 GolfTEC locations and we are currently at 145 so we are only at about 20% penetration. We still have a long way to grow!

SPECIAL: Entire Adaptable Leadership Series

2011-02-14T05:18:00.000-08:00

Many of you have requested that we send the complete 9-part series on "Adaptable Leadership." We have provided links to all of the article entries below. We hope you find it useful. If you would like more information about our Creating Adaptable Leadership and Culture process, please contact me.

–DPM

"... Executives see change as a way to strengthen the business. Employees don't.They see change as unwelcome, disruptive, and intrusive. Employees focus too much on what they think they will lose from change rather than what they will gain in the end..."

"... Given that people are attached to how things are, there is a sense of loss and emotional upheaval if that certainty, and the security it provides, is threatened..."

"...Adapting is the ability to adjust to a variety of situations as needed. There's no beginning and end. It's a constant process that can move in any direction as desired. It includes everyone, not just change leaders. Everyone becomes responsible for results..."

Part 1 - The Long, Slow, Hard Economic Slog

Part 2 - Companies Don"t Need to Change. They Need to Adapt

Part 3 - 'Adapt' is New Thinking

Part 4 - How to Create an Adaptable Culture

Part 5 - Create an Adapting Culture: When It Can Go Wrong

Part 6 - Do You have the Leaders to Drive an Adaptive Culture?

Part 7 – Characteristics of Adaptive Leaders

Part 8 - Creating an Adapting Company Is Not Complicated

Part 9 - From Ignorance to Results: Understanding Stages of Change from the CEO Perspective

From the Front Lines: Colorado Success Stories -Qualvu Grows by Making Every Consumer's Opinion Count

2011-02-08T05:10:00.000-08:00

From the Front Lines: Colorado Success Stories
This series of interviews with clients and friends focuses on companies that have succeeded during the recession. The stories are told by the CEOs and business owners themselves.

Qualvu Grows by Making Every Consumer’s Opinion Count!

Recently I spoke with John Williamson, CEO of Golden-based Qualvu www.Qualvu.com which has introduced disruptive innovation to the world of consumer focus groups, surveys and qualitative consumer market research. Qualvu was recognized as a 2010 Colorado Company to Watch.

Mead: How did you decide to get into the business?
Williamson: Every Fortune 1000 consumer-focused company in the world uses qualitative research extensively. The industry offered interesting opportunities for a startup: the chance to disrupt a market largely untouched by web-based innovation, to introduce self-serve methods, and importantly to make qualitative research accessible to thousands of companies beyond the Fortune 1000.

Qualvu, founded in early 2008, pioneered a breakthrough online experience for conducting web-based consumer feedback, allowing businesses to take their qualitative research online without losing the face-to-face connections crucial to understanding customers. By connecting companies with their customers around the globe via webcams, flip cams and even consumers’ smart phones, Qualvu delivers more compelling and actionable business intelligence than focus groups, and because of cost efficiencies, it’s available to any business. We call it “finding your truth” – and it’s a really empowering Do-It-Yourself experience.

Mead: How do you compete and achieve differentiation?
Williamson: Qualvu was first to market with an innovative process that allows any user with an Internet connection – either PC or video mobile phone - to provide video-based feedback at the press of a button. Clients realize speed, cost and global reach advantages. Our clients can set up projects at any time day or night, and gain access to their consumers at home, at work, while shopping, or anywhere they interact with the client’s products. Over the past 3 years, we have developed a proprietary process and technology to convert the data to highlight reels of key insights as well as online video reports too.

Mead: What have been your biggest challenges?
Williamson: We have constantly fine-tuned every aspect of the experience – from a self-serve project portal, to finding better participants, to delivering online reports within hours complete with video highlight reels of the most relevant and compelling consumer feedback, to creating completely searchable video. Every day is a new breakthrough in our refinement.

Our biggest challenge is getting the word out! We’re just now starting to really pop on the industry radar, as we’ve attracted a who’s who of clients, such as Chrysler, Procter & Gamble, eBay, Yahoo!, T-Mobile, Disney, Adidas, Pfizer, just to name a few. We’ll start expanding our penetration beyond these larger companies as people begin to realize we’re a site for any business that needs deep insights to make better decisions.

Mead: What are the keys to continued growth over the next 5-10 years?
Williamson: Relentless innovation to keep our technical and process advantages. A lot of that has to do with enabling breakthroughs in data mining video content, so our clients can increase the value of every project over time as they consolidate and re-assess consumer video data, trends, and insights. The beauty is that the more you use Qualvu, the better it gets.

Mead: How do you maintain the culture and still build the management team required to grow?
Williamson: We find great people and promote from within. We find smart, creative people who have a positive attitude and a strong work ethic who want to be a part of what Qualvu is accomplishing. One of our mantras to every new hire is, “Welcome to Qualvu. You’ll do the best work of your career here.” People see career paths because Qualvu is a meritocracy. We try to reward effort, talent, initiative, and values.

Mead: How do global factors influence your growth?
Williamson: Anyone with an Internet connection around the world can provide information vital to our clients’ products and services. Certainly given the economic conditions globally the past couple of years, more brands are trying to do more research with less – and that’s helped Qualvu gain traction more quickly I believe, as these types of conditions have the tendency to spawn new models that break through because buyers are more open to innovation to solve their business problems.

We opened an office in Dublin this year to expand our global reach. Dublin is accessible, has a multi-national workforce, and is cost efficient. Interestingly more money is spent on qualitative research today in Europe than in the US, and we intend to support our global client base with expansion to other markets too.

NOTE: John Williamson announced on February 7, 2011 the following new product: "Qualvu releases world's first mobile app for video-based qualitative research. Come see how it works via Qualvu webinar: http://bit.ly/f1iYWO%22

Are 'doing what you say you'll do' and 'flawless execution' passé values

2011-02-04T10:26:00.000-08:00

The Mead Consulting Group has been focused on execution and getting results for businesses for many years. It is the key to our success as a business and has become essential component of our brand. Execution is not only important to the business, but also very important to me personally in everything I do. People who have worked alongside me in nonprofits, community, or public service areas certainly understand this.

At a recent gathering of the Leadership 20 alumni – a group of top emerging professional services leaders in the Colorado community - the question was raised: “Is meeting your commitments and ‘doing what you say you’ll do’ as important today as it was 20 years ago?

It’s an interesting question. I was quick to respond that “Absolutely! Meeting your commitments is just as important today as it was a couple of decades ago.”

However, as I thought more about it, I have had reason to question whether that is really true. Is it really as important today? In the last few months, I have been faced with a number of iterations of businesses and people not executing, not meeting their commitments, not doing what they say they will.

Do what you say you’ll do. Business on a handshake. Mead Consulting has numerous marketplace partnerships with the better providers of a wide array of services that our clients need (training, recruiting, managed IT services, investment banking, etc.). We have had mutual agreements for many years with these providers – virtually all on a handshake agreement. We have had only one negative issue with a partner over 20+ years with this program… Until recently.

In the past two months, we have had two new partners (one a Managed IT Services firm, the other a marketing firm) not live up to their word. It has given me pause to question why. Is this a sign of desperation due to tough economic times? If that is true, does integrity only apply to good times? Did we compromise our standards with these firms? Or, was it just the luck of the draw over time?

Don’t over-commit and under-deliver. There have always been situations of over-committing and under-delivering in business and community. Sometimes it is a miscalculation or unintentional. Sometimes people can’t say NO and get overloaded. However, recently I have begun to see a pattern with people who routinely accept more and more roles and then can’t perform. The same people repeat this in organization after organization. For a number of years my mantra for nonprofit and public service organizations has been “alignment, commitment, flawless execution.” In other words, do something that is well-aligned to your business, personal, professional interests, bite off a manageable amount, and then execute flawlessly. If you then find you can take on more tasks and responsibilities, that’s great, but meet your commitments first.

As a board member and leader of several organizations, I have been forced to have tough conversations with people who love to add titles and items to their resume, yet don’t deliver or meet even the minimal standards of performance or execution.

Don’t accept mediocre performance. Hold yourself and others to high standards. I have had occasion to work on a program which is a government - private industry collaboration. The program which has tremendous potential to assist companies and create jobs has unfortunately been sub-optimized. Even as it has been falling short of its potential, it has been very instructional to watch the self-congratulatory behavior of the committee and board. Committee members who have repeatedly failed to meet their commitments cheer each other as “awesome” and “fabulous” while rejecting or ignoring suggestions for improvement. I certainly understand that government entities have never been shining examples of stellar performance or accountability, but it is disappointing none-the-less. We see the same applauding of mediocrity in the school system as well as we seek to promote high self esteem for every student and teacher regardless of achievement or effort. Has acceptance of mediocrity become the norm? Is it old-fashioned to set high standards and expect strong performance or yourself and others?

Don’t find excuses or blame others for substandard performance. When I was a young boy growing up, my father would say, “Be a man! Own your mistakes.” I wonder what he would think if he were alive today to observe the business and government scene as people look for anyone they can to blame when they fail.

Some may say that I may just be getting cranky. But, I ask you to think about this: Is ‘meeting your commitments’ passé? Is ‘doing what you say you’ll do’ your grandfather’s mantra? Is ‘flawless execution’ an old fashioned concept?

Let me know your thoughts?

What's the difference between execution and implementation?

2011-01-25T08:22:00.000-08:00

In an earlier post on January 10th, the subject was raised about the difference between implementation and execution.

"Implementation is about people doing what you have listed in your plan and checking their actions off the 'to do' list. True execution is about measuring the impact of those actions on the results you want for your company."

What is your take?

Winning During the Slog - Part 9 – “From Ignorance to Results: Understanding Stages of Change from the CEO Perspective”

2011-01-21T05:52:00.000-08:00

(From Issues for Growth Vol. 20, No.3)

This is the ninth of a series of articles about how companies and individuals are winning during the “The Long, Slow, Hard Economic Slog” that we are in (Issues for Growth Vol. 19, No.13). This article is written by Christy Pearson, Ph.D., of Opus Leadership Group www.opusleadership.com , who works with The Mead Consulting Group. – DPM

Without much argument, it can be said that CEOs cannot run their businesses as before and for many, the need to adapt is an obvious statement. However, determining how and where to start continues to be a challenge. A good first step is to understand how people respond to change. By understanding this dynamic, leaders can more easily adapt their leadership and help their leaders and the organization begin to adapt as well.

In the previous segments of this series, there has been much discussion about the need to adapt strategy, culture and leadership in response to these tough times. This requires CEOs and his/her leaders to do something different and for most people, this is a huge request. Despite a CEO’s best effort to develop an adaptive organization, nothing happens because adults are notorious for their resistance to change.

In the psychological literature there are two well-known and respected researchers of change, James O. Prochaska and Carlo C. DiClemente. These individuals created a model to explain how individuals change behavior, break old habits and develop new ways of adapting to their environment. Their model can easily apply in the business sector. According to Prochaska and DiClemente, people respond to change in the following ways: (names of stages have been changed for the purpose of this article)

Stage 1—Ignorance - Leaders are unaware that problems exist

This is the time that leaders are unaware that problems exist. Others may be aware of the problem but the leader believes the problem lies elsewhere or that no problem exists. Early in the downturn, CEOs may have believed that their company was immune from impact because of their industry, company size or global location. However, it soon became evident that the economy impacted all organizations in some manner and for some CEOs, the problem did not become evident to them until there was a consistent lack of growth or worse, declining profits over many quarters. Often, it was this smack in the face that prompted leaders to begin more thoroughly analyzing their business strategy and its relevance to the new economy. While ignorance is bliss, failing is misery and as a response, leaders will move to stage 2—Awareness.

Stage 2—Awareness - CEOs have an understanding of a problem and the consequences, but defer action

It is during this stage that CEOs have an understanding of a problem and the consequences it presents. CEOs begin to seriously think about their organization’s problems and its impact and begin to contemplate what should change. Common statements by leaders in this stage include “we should be okay right now, maybe in six months we will do something” or “we know there is a problem but we just don’t have the time or resources to address it”. Leaders spend a significant amount of time in this stage, likely hoping that things will return to “normal”. Leaders can also spend a significant amount of time in this stage developing the ideal strategy. This act of substituting thinking for action only delays the necessary response and the business continues to suffer. It is only with acknowledgement of the need to adapt can a CEO move to Stage 3—Planning.

Stage 3—Planning – CEOs begin to think less about the problems and more about the solutions

Movement in the right direction is evident when CEOs begin to think less about the problems and more about the solutions. CEOs also become more future oriented rather than ruminating upon what happened in the past and have realized the benefits of adapting are greater than the costs. It is also during this stage that CEOs have finalized their planning and have communicated the need for change to others within their organization. The risk here is planning continues but true action and adapting does not occur. Committees are formed, consultants are hired and meetings are scheduled but there is no movement in the organization or its leaders (if so, the leader is still in Stage 2). How does a CEO get from this stage to action—determine a goal, set a date, and begin making the changes. Any step in the new direction is progress and should be acknowledged as such. Adapting is a process and a process takes time. CEOs should avoid discouragement by acknowledging that any movement is better than before and momentum will build as others also move through their own stages of change.

Stage 4—Action - New organizational initiatives begin to be implemented

This is when the magic happens. CEOs have evolved their strategies and the new organizational initiatives have been implemented. This stage requires commitment and focus by the CEO and his/her leaders to ensure that the necessary changes are understood by others in the organization and that recognition is occurring. At this point, it is important that what CEOs have set into motion is something than can be measured, tracked, and rewarded. Action is only movement, it is not true change and regression to previous stages can occur at any time. For a CEO, regression may mean reverting back to old strategies, old approaches to problems or relying on a style of leadership that is no longer relevant or effective. To continue with progress, CEOs should remain focused on the determined solution and the future benefits to the organization.

Stage 5—Sustainability – Making it part of the ongoing culture

People live for this stage. This is when leaders and their organizations have worked through the problems, addressed them in a thoughtful manner, and are focusing on sustaining the change and related results. To remain in this stage and avoid reverting back to previous stages, it is important to ensure that the culture is supporting the change, senior leaders are aligned on expectations and outcomes and that further forward progress is recognized and rewarded. Change can occur quickly and be short-lived so the CEO and his/her senior leaders need to continue to focus attention on the implemented initiatives and remain aware of any barriers that may inhibit progress.

If a CEO wants his/her organization to adapt to the new business environment, they must first understand how they respond to change to better determine how their leaders will respond. If an organization and its leaders have not responded to the new business world by adapting its strategy, leadership and culture, it is likely the CEO has not led the charge. It is only with insight and understanding that a CEO can then provide the necessary direction and guidance to move his/her organization to a more successful outcome. Adapting one’s leadership, strategy, and organization can be less challenging by understanding the process and the dynamics that promote or inhibit progress.

Some companies are experiencing significant “new thinking” results. What are you doing to change how you think about your business and create a culture of adaptability? Email us your comments.