Tag: owner

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Innovate Like a Lean Startup

iStock_000009200146XSmallEnterprise organizations are taking a rigorous look at the principles used in the Lean Startup movement. They are carefully considering how they can incorporate the approach for building and launching new products faster to increase revenues and reduce costs.

Why? Speed of innovation and time-to-market can translate to millions in revenue gained or millions in lost opportunity costs for organizations of every size. One known fact for product-based businesses is that the typical time for market development can no longer take years for planning to launch. Competitive forces require organizations to be in cycles of continuous improvement and a constant state of innovation.

Some businesses acquire other businesses to gain momentum, others set up lean approaches within their product development and design centers. If enterprises want to compete with the “young and restless” entrepreneur community, they need to consider moving faster in definition, development and bringing new products to market.

The father of the lean movement is Eric Ries, author of The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. The Lean Startup methodology promotes shorter product development cycles driven by experimentation and validated learning. Instead of waiting until the final product is “complete” before launch, the lean practice recommends to use iterative releases to confirm adoption and use cases for a minimum viable product.

The constant develop-release cycle provides for ongoing feedback to modify and pivot to meet buyer and user needs faster. The goal for this technique is to speed products to market, maximizing early product adoption cycles and capturing the most market opportunity. This all translates to revenue.

The risks associated to this approach are primarily related to creating products that seem to never be finished. Consumers must have a strong loyalty to stay committed to products that are always upgrading. Businesses have to evaluate the risk-rewards of being first to market with products that are viable and utilize the information gained in the customer feedback process during each release to keep customers happy.

The growing consideration of going lean for many business owners today is whether they do so through an M&A strategy or reorganization of the product development operation. “The only way to win is to learn faster than anyone else.” – Eric Ries

By Jamie Glass, President and CMO of Artful Thinkers, @jglass8

This article appeared in the CKS Advisors CKS Updates May 2013 Newsletter.  Visit www.cksadvisors.com for additional information.

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Ready to Hand Over the Keys to Your Business?

Who is Ready to Drive Your Business Forward?

Business owners can easily be consumed by the short term activities of day-to-day operations.  Sole focus on immediate outcomes exposes any business to long-term financial risks.

Every business leader needs to mitigate risks associated to being the one in charge.  The value of a business is built upon the sustainability of the operating plan, with or without it’s leader.  As an owner or CEO, have you asked yourself the “what if” question?  Are you fully prepared to hand over the keys to your business today?

You may have imagined that some day you will be transitioning your leadership to a partner, an investor, the next in line or even family member.  You may see your fabulous retirement life through the eyes of selling your business in multiples above your investment. In order to realize your dream, you need to spend time and commit resources to adequately prepare for a favorable transition. When? Now.

Succession planning is critical to an effective transition.  Achieving optimal outcomes in transitioning a sustainable business requires years of preparation.  How confident are you in handing over control of your business to your successors today?  A successful transition plan gives the new leaders a complete operating manual.  They need to be adequately prepared to operate the business day one.  They need to be able to take your business forward to protect your investment and to benefit your employees, stakeholders, customers and partners.

Some owners avoid planning for the end of the business because of the time it takes away from working “in” the business right now.   The lack of preparedness puts your business value at risk. It is never too early to prepare for an exit.  Whether you are a small owner-operated business, mid-market company or family-owned enterprise, you need a definitive succession plan.  It should be part of your standard business.

Here are some tips on how to start your succession planning:

1.  Document company processes and procedures.  Everyone is not replaceable. Unfortunately, when a person leaves the business they take institutional knowledge.  Key personnel that do not document their knowledge or share it with their direct reports, cost your business long-term and expose you to great risk.  This includes the owners and founders.  You can mitigate that risk by making sure every employee documents their processes and procedures.  Start with key roles.  This is not a job description, it is a “how to” operating manual for every role in your company.

2.  Review your wealth preservation strategies with your advisors.  Meet regularly with your personal and professional financial team members to analyze your current situation and review your short and long term goals.  Be “in the know” at all times of where your business stands financially.  Use strategy and growth advisors to help you pivot the business, so that you can exceed your goals.  Update your business evaluations annually.

3.  Build a culture of knowledge sharing.  Create internal social exchanges and information sharing networks.  Use your company meetings to have one department or key player provide a highlight of their role and what it means to the business.  Reward employees for creatives ways they educate others.  Commit one hour a week per employee for education and cross-training.

4.  Host quarterly strategy updates with key personnel. Spend time with your “next generation” of leaders to share business plans, KPIs, lessons learned and company strategies.  They are the future leaders of your business and they may be executing your business plan.  Keep no secrets.  Share your wealth of knowledge.  Sharing keeps people engaged and actively participating in achieving business goals.

5.  Reward excellence in execution.  Find opportunities to reward performance for those that take initiative and demonstrate they are prepared to lead.  A business full of up and coming leaders, results in sustainability.

Exit planning helps you increase the value of your business today and in the future.  Investors and bankers should ask to see your succession plan.  As you plan your beginning, you need to plan for the end.  Make your investment of time and energy pay off more than you imagined.  Plan today to realize a profitable, rewarding and fulfilling end.

Jamie Glass, CMO & President of Artful Thinkers and Managing Director of Sales & Marketing Practice at CKS Advisors.