Thursday, March 31, 2005

Patriots Dynasty/Super Bowl Leadership Lessons

During the past four NFL seasons, Bill Belichick has led the New England Patriots to an amazing three Super Bowl victories and a remarkable overall win-loss record of 57-16. His career postseason coaching record of 10-1 is the best in league history. Yet just 10 years ago, he was fired as coach of the Cleveland Browns and labeled Cleveland’s “worst coach ever” by the press. What lessons does Belichick’s remarkable turnaround offer for us all? (From Michael Felger of the Boston Herald.)
  • Develop people skills. True or not, the perception of Belichick in Cleveland was that of a distant, humorless taskmaster. His resurgence is proof that people skills can be honed. The Patriot’s coach still isn’t the most charismatic guy around, but he gets along very well with his boss (team owner Robert Kraft).
  • Foster a real TEAM. One of Belichick’s greatest strengths has been his ability to push the team concept. Big-ego players command too much of a team’s budget and often have star-sized attitudes. Belichick targets players whom he feels will fit his system.
  • Embrace change. Most teams do whatever they can to hang onto their most recognizable players. Not the Patriots. Of New England’s 22 offensive and defensive starters in the 2002 Super Bowl, only six were still starting for the team in the 2005 Super Bowl.
  • Expect the unexpected. While (unavoidable) injuries ruin some teams’ seasons, the Patriots have managed to keep right on winning – because Belichick treats backup players as an integral part of his plan… not as an afterthought.
  • Don’t rely on a single strategy. Many football teams strive to have an identity, a single style that they can rely on each week regardless of the situation. Bill Belichick devises a unique game plan each week. That’s why he covets versatility in his players.
  • Look for intelligence and character. The intelligence of the Patriot players is a big reason why Belichick can implement his very complicated strategies. Their character is a big part of the reason the team hasn’t been brought down by ego or complacency despite all of its success.
  • Follow rules. Belichick has a rule that a player doesn’t start on Sunday if he missed practice time during the week. He believes that if you bend the rules in one situation, you’re likely to do it again and, eventually, the structure suffers. (This includes Richard Seymour, one of the Patriots’ best players, who missed practice to attend his grandfather’s funeral.)
  • Focus on what you can control. Belichick doesn’t allow players to moan about the thin air when they play in Denver or the heat when they’re in Miami. There’s nothing they can do to change the conditions, so why waste energy worrying about them?

6 Killer Rainmaker Sales Questions

“How to Become a Rainmaker: The Rules for Getting and Keeping Customers and Clients” by Jeffrey Fox (author of “How to Become a CEO”). It’s a great, easy read. Here are Fox’s six “Killer Sales Questions:”

1. Do you have your Appointment calendar handy? It leads to obtaining an appointment over 90% of the time.
2. Will you look at the facts and decide for yourself if they make sense? This is almost rhetorical because the answer is so seemingly obvious. The customer is certainly going to decide for herself.
3. Ask the prospect what other companies they are considering and follow-up with, Would you be interested in our points of difference? The customer needs to see a difference, new information, so he can change his mind or change the minds of his colleagues.
4. Is there anything else prohibiting you from going ahead? The salesperson is either going to hear some unresolved customer issues, or get an agreement to an action that leads to a close.
5. Why don’t you give it a try? A super saleswoman sold a $1 million computer conversion that took 18 months to implement by asking the customer, “Well, why don’t you give it a try?” People don’t just “try” – they act. They do something.
6. What question should I be asking that I am not asking? “What am I not asking?” is asked by the most confident, most customer-concerned, most professional of professionals. And good customers want to be asked this fantastic leave-no-stone-unturned question.

Passed along from:
Randy Cyr
President
The Damase Group
P.O. Box 1833
Framingham, MA 01701
rcyr@damasegroup.com
508-879-2300 Office
508-740-7181 Cell

“Cautious optimism. A global survey of CEO’s in the Deloitte Technology Fast 500.”

Here is an overview :

  • CEO’s are focusing less attention on cash flow, shifting priorities from customer retention to customer acquisition and stockpiling talent in key positions.
  • Although preparing for growth, CEO’s continue to focus on profitability. That’s a big change from the late 1990’s when many business leaders pursued a growth strategy at any price.
  • Last year, roughly 30% of respondents cited the economy as the biggest challenge to sustained revenue growth. This year, that number was cut in half – down to less than 15%.
  • The top operational challenge this year is developing a strong marketing and sales strategy.
  • Roughly 25% of the CEO’s surveyed cited recruiting and retention as their biggest operational challenge, second only to establishing a strong marketing and sales strategy.
    There is worldwide agreement that developing and bringing new products to market is the top marketing challenge. In North America, hiring the right salespeople is the second highest priority.
  • CEO’s in Europe and Asia Pacific are very concerned about competition from China and India. Companies in North America are focused more on terrorism and the general economy.

Thursday, March 24, 2005

Software Company Growth Opportunities - Adapt or Die.

According to the 2005 CEO Outlook study available at www.SandHill.com :

"Executives don’t expect 2005 to be another year of flat performance: 52 percent of those urveyed anticipate modest 5 to 9 percent revenue growth for the overall industry. Another 29 percent’s predictions were for growth of 10 percent or more."

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Source: Sand Hill Group


Despite the rosy outlook, there is no doubt that significant challenges remain.When asked to name the software industry’s greatest challenge, 35 percent of respondents pointed to stagnant corporate IT budgets. Small companies were most concerned about this continuing dynamic, while larger companies were slightly more likely to indicate “lack of growth.” Other concerns included lack of innovation and increasing consolidation.

“This is as challenging an environment to manage a business through as any I’ve seen in my 25 years in the business. The next two years will likely be ones of moderate growth, but I think it will take three to five years for sustainable business models and practices to return, around which startup, growth, niche and mature companies can be run and evaluated.”
CEO, midsize applications and infrastructure company

“Buyers are still very cautious and very thorough about purchasing. Unless there is a regulatory requirement, they are under no rush to buy.”
CEO, midsize Internet applications company


“We’re expecting a slight improvement over 2004. But we’re still not seeing a tidal wave of buyer momentum.”
CEO, midsize applications company


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Source: Sand Hill Group


“Software industry executive teams need to grow up and realize that the industry is not a fast-growth industry anymore and software companies need to be managed for profit and cash flow just like other traditional industries. Executives need training and knowledge
transfer on best practices for operational effectiveness in the software industry.”
CEO, midsize applications company

They key: Adapt new business models to the changing world around you - or not - either way you are deciding on a strategy.

Sneak preview of Knievels Wild Ride

KNIEVEL’S WILD RIDE on A&E

Episode One -- “The Jersey Curse” Airs April 5 @ 10PM/9C

The launch to Robbie’s big summer tour is riddled with bad omens. He’s going to New Jersey to jump 25 cop cars in the “Above the Law” jump. Haunted by the memory of a previous crash in New Jersey, he’s decided the place is cursed. His first stop in the long trip from Washington State to New Jersey is in Butte, Montana where he was born and raised. The nostalgic visit turns sour when he goes to a local watering hole and winds up in a barroom brawl that leaves his face and his ego seriously battered. Once he finally reaches New Jersey, he discovers that the jump site itself is not what he expected. There are curbs, light poles, and other objects in his path. The venue has to incur the expense of tearing up the lot in order to give Robbie a clean run at the takeoff. To make matters worse, ramp builder Todd and Crew chief Bill Rundle aren’t getting along, and their lack of communication is creating confusion among the crew.

MEET THE MEMBERS OF TEAM KNIEVEL
Cast Bios:

"Kaptain" Robbie Knievel – Daredevil Motorcycle Jumper
Son of world-renowned Daredevil Evel Knievel, Robbie began his career as a daredevil at the age of eight as a part of his father’s act. By age sixteen he had a falling out with his father, and started up his own act, proceeding to break all of his father’s motorcycle jumping records. He has completed more than 300 jumps and set 25 world records of his own. His most notable jumps include the Grand Fountains at Caesar’s Palace in Las Vegas, a 200-foot-wide, 2,500-foot-deep chasm of the Grand Canyon, a building-to-building leap in Las Vegas, a daring vault over an oncoming train near San Antonio, Texas, and a jump over seven vintage aircraft on the USS Intrepid, a retired aircraft carrier in Manhattan. The one stunt that still looms over Robbie’s head is the famed “Snake River” jump. Evel failed in his attempt to cross the Snake River in a rocket in 1974, and Robbie vows to one day eclipse that by succeeding in crossing the 1800-foot gap. Even though he's paid his dues for the last 34 years and is a significant daredevil in his own right, his relationship with his ailing father continues to be strained due to professional jealousy. Robbie’s biggest challenge and his biggest blessing in life is his last name. Now in his forties, Robbie is single but has two daughters, and one granddaughter. His greatest hope is that he will continue to jump for at least another decade. Robbie grew up in Butte, Mont., and now lives on the Olympic Peninsula in Washington.

Krysten Knievel – Robbie’s youngest daughter
Krysten took the “evel” out of Knievel. Unlike her father and grandfather, she has no desire to attempt life-threatening stunts, and she’s focused primarily on being a good student. This nineteen-year-old “nice girl” from Chicago still lives with her mother, volunteers at the local animal hospital, and earns straight A’s as a freshman in college. She finds that the best way to get quality time with her father is by meeting up with him at jumps. Sometimes she sings the national anthem at his jumps, but even if she doesn’t she still likes to attend the events to give moral support.

Bill Rundle – Team Knievel Crew Chief/ Bike Mechanic
Bill Rundle has known Robbie his entire life. When Robbie was living with his dad in Butte, Montana as a child, Rundle worked on Evel’s crew. Bill is Executive Director of “Knievel Days” in Butte, Montana, which brings tens of thousands of people to Butte each year. He makes his living as a car dealer. Bill is married, and he and wife Davene, son Brett, daughter Brittney and nephew Jon make their home in Butte. Bill started Robbie racing motorcycles back in the days when Bill was Montana State Flat Track Champion. In fact, Robbie worked for him sweeping the floors at a local motorcycle shop.

Bill and Robbie have been buddies since they were kids, and he has worked with Evel and Robbie for over 30 years. He and Robbie consider each other brothers. Also, Robbie is Godfather to Bill’s daughter Brittney. Often called the “Godfather of Butte,” his association with the Knievel name has given him notoriety in his hometown. Robbie puts all of his trust in Bill as his mechanic. Rundle is a straightforward family man who does not drink excessively. He seems like a fairly well adjusted “normal” person, which makes him a bit of an enigma among the other members of Team Knievel.

"Master" Brian Gates – Robbie Knievel’s bodyguard
Master Gates currently holds the rank of 8th Degree Black Belt in the Martial Arts and is a Gold Medalist and Heavyweight Champion in Kickboxing. The Master is always prepared for any level of threat with the tactical weaponry he carries in his arsenal. His prime directive is to protect Robbie
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Knievel from nefarious saboteurs. He is constantly on the lookout for potential threats, and is very much at Robbie’s side all of his waking hours during the week of a jump and throughout his travels. Master Gates is a licensed Constable in the state of Pennsylvania and a Certified Travel Marshall and Law Enforcement Officer. Among the many other celebrities he has protected are Evel Knievel, Chuck Norris, Michael Douglas, Garth Brooks, Gwen Stefani and Phil Collins.

Roman – Team Knievel Roadie
Born is Austria, Roman is a muscle-bound, tattoo-clad, longhaired biker dude! Roman is a licensed Harley Davidson mechanic who rides a road bike that he built himself. He came to the United States in his early twenties, and now, at age 39, is a citizen and registered voter in the State of California. He met Robbie a few years ago at a motorcycle rally in Sturgis, South Dakota, and they quickly became friends. Early on, Roman didn’t really have a defined role on the Team and was mostly there for the “fun factor.” Now, he says, he’s responsible for “everything and nothing,” from building takeoff and landing ramps to fixing vehicles to tending bar. When Roman is not on the road with Team Knievel, he “couch surfs” from one friend’s place to another.

Dan “Zuck” Zucker – Robbie’s Manager
When you see Zucker amongst the other members of Team Knievel you may be inclined to think to yourself "one of these things is not like the other." Zuck is a slender, bespectacled, high-energy Long Island boy with a penchant for nervousness. He is not a motorcycle rider, and has no interest in motorcycles beyond their importance in making Robbie Knievel who he is. As his manager, Zuck's main task is handling the day to day business activities including: booking performances, appearances and endorsements; handling press and PR and keeping Robbie in front of the media; coordinating the crew and Robbie's schedule during event weeks. Zuck met Robbie back in 1995 when he was working as a salesman for a sports radio station in Seattle. He has since teamed up with Robbie and has been a key figure in launching Robbie back into the spotlight. Zuck's constant struggle as Robbie's manager is to get him to be where he needs to be when he needs to be there. He commits Robbie to a lot of press engagements in the days leading up to a jump, and keeping Robbie to task is a constant source of anxiety.

Todd – Team Knievel Ramp Builder/Backup Crew Chief
Todd met Robbie when he jumped at a local casino a decade ago and the rest is history. Todd, who is in his forties, was born in Denver and raised in Sequim, Washington. He is currently single and has one teenage son who also lives in Sequim. Todd’s younger daughter lives with his ex-wife in Arizona. Todd is a framer who “grew up on a construction site.” As such, he is a fully capable builder charged with overseeing the construction of Robbie’s ramps. Todd used to date Darci, Robbie’s live-in housekeeper and bookkeeper – a situation that so far has not caused any problems. Todd often wears his emotions on his sleeve, and often flies off the handle, provoking a lot of riffs between fellow crewmembers. Todd and Robbie share a common bond, a strained relationship with their respective fathers. When he’s not on the road with Robbie, Todd is lead singer and front man for the country & western band Gunner. And, when he’s not working, he’s usually slalom water skiing or riding his Harley on the road.

Rocker Pete – Team Knievel Roadie
Rocker Pete was also born and raised in Sequim Washington, and is a lifelong friend of Todd’s. Pete got close to fame in the 1980s as the lead singer of a head-banger band called Hammerhead. The group achieved some notice in Europe. After getting ousted from the band, Pete struggled to keep his music career running, but he never managed to put it back together. However, recently he completed an album titled “Mainzer Mania,” which he hopes will gain some recognition through his association with Robbie and the new series. On the road with Team Knievel, Pete is the utility guy –
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washing the vehicles, stocking the fridge, and assisting Todd in any tasks that need be dealt with regarding construction.

Jon Simanton – “Weeble Knievel”
Jon Simonton is a little person who is a professional actor living in Los Angeles. He has a four-year-old daughter who is taller than him. In the role of “Weeble, The World’s Smallest Daredevil,” Jon is the wildly popular opening act for Robbie at most of his jumps. The shtick is that he jumps one more of whatever Robbie is jumping... The hitch is that they’re miniature versions! For example, if Robbie jumps 15 tractors, “Weeble” will jump fifteen Tonka toys. Before meeting Robbie 18 months ago, Jon had only ridden dirt bikes for fun. As his confidence and experience grows, his jumps are getting more extravagant – and even more crowd-pleasing.

Dan Haggerty – “The Griz”
Dan Haggerty is best known for his role as Grizzly Adams on the popular television series in the 1980s. “The Griz,” as he is called, is a friend of Robbie’s who likes to appear at a lot of his jumps just to give him support. As “The Griz” would say, he likes to “catch him when he lands.” He also likes to party and party hard when he and Robbie are together.

Spanky Spangler – Stunt Coordinator
Spanky Spangler has performed more stunts than anyone else in the world. Famous for his “high falls” and car stunts, he’s one of the nation’s foremost experts when it comes to setting up a stunt. He is a close friend of Robbie’s and makes it a point to be at all of Robbie’s jumps to help him with analyzing the situation and calculating speeds and other variables. When Robbie was just a teenager, Spanky filmed his first jump for the television series That’s Incredible. Spanky is a Vietnam veteran and ex-Green beret who parlayed his experience in commando operations into a career that boasts 22,000 stunts, three Hall of Fame honors and 22 World Records

Thursday, March 17, 2005

Pricing Models for Grid Application Deployment

Recent press release from the 451 Group:

Current Enterprise Software Licensing Models; Are a Major Obstacle to Increased Grid Application Deployment
NEW YORK--(BUSINESS WIRE)----

Evolving enterprise requirements and experimental, alternative purchase models will have a cumulative and disruptive impact on software licensing policies and practices; the results will extend beyond grid computing and affect licensing for all enterprise software. The 451 Group believes current enterprise software licensing models are throttling grid computing deployments and that these models, which have been built around legacy concepts of enterprise application use, are presenting an increasing problem for enterprise IT managers as they pursue implementations of grid applications. Enterprise IT departments are finding that they can't afford to buy software licenses for every processor or device in a grid for each application they intend to run on that grid - a necessity, under current licensing schemes. Grids, by their nature, consume resources dynamically, and this is a concept that is not well addressed in the majority of software user licenses. This reality is skewing the potential return on investment (ROI) from grid computing programs - posing a formidable obstacle to grid application deployment. These findings are contained in a report - released today by New York-based The 451 Group, a technology industry analyst company focused on the business of enterprise IT innovation - which analyzes the role of enterprise software licensing models in early commercial adoption of grid computing technologies. 451 analysts have found that some enterprises have managed to avoid these software licensing challenges through tactics such as: -- Using in-house-developed applications, often based on open source software -- Negotiating customized deals with vendors -- Paying a premium for one or two critical applications As the volume of grid deployments increase, demands for enhanced license models will increase, as well as demands for instrumentation and management to support new license models. Conventional license management models and pricing structures are problematic and extremely expensive for users seeking to run commercial applications on grids; thus enterprise IT departments will require more flexibility in the way software is bought and used. The 451 Group also believes emerging, alternative purchase models - just coming to the marketplace - suggest a change is underway that will have a cumulative and disruptive impact on vendor licensing policies and practices. Software licensing for grids must be seen within the context of other dynamics: the ability to proactively manage the use of software licenses based on business objectives and in dynamic, virtual environments is not a grid-only issue. Grids are an important inflection point in this transformation, but the issue is a broader one for enterprise IT. "The most that early adopters can hope for is an evolution of license models to achieve software licensing based on business objectives that balance customer needs and vendor business models," said William Fellows, Principal Analyst for The 451 Group and lead author of the report. "The challenge will be to offset the potential vendor loss of revenue on one side with greater value/lower cost and more flexibility on the other side. Customers will need to consider licensing issues when they make purchasing decisions, while the vendors will need to provide an abstract resource model that accommodates applications being run on virtual resources as in the case of grid computing." The report, 'Grid Computing - The Impact of Software Licensing,' is the fourth report in the 451 Grid Adoption Research Service (GARS), an investigation into user experiences and vendor strategies. The 77-page report was written by William Fellows, Principal Analyst with The 451 Group, together with Steve Wallage, Director of Research, and Martin Schneider, Analyst, Enterprise Software. The report includes user case studies, plus detailed comparisons of user experiences and views on various licensing issues. The report also analyzes the strategies and positioning of more than 20 vendors, from grid computing companies to license management, in electronic design automation (EDA); business intelligence (BI); extract, transform, load (ETL) software and other major software areas. Key Companies Covered The report includes in-depth competitive assessments of the following vendor companies (although this is not a complete list of companies covered in various sections of the report): Data Synapse, Hewlett-Packard, IBM, Platform Computing, Runtime Design Automation, United Devices, Cadence Design Systems, Macrovision, ManageSoft, Synopsys, Business Objects, Fair Isaac, Informatica, SAS, Computer Associates, Chordiant Software, Citrix Systems, EDS, Engineous Software, Novell and Searchspace. User case studies include the following early adopter companies: ABN AMRO, ARM, Acxiom, Boeing, Freescale Semiconductor, Intel, Micron Technology, Novartis and T-Systems. Report Orders To learn more about this report, or to discuss developing a client relationship with The 451 Group, contact Simon Carruthers, Vice President of Research Services, via phone at 212-505-3030 x-103 or via e-mail at: simon.carruthers@the451group.com. About The 451 Grid Adoption Research Service (GARS) The 451 Grid Adoption Research Service (GARS) - an investigation into user experiences and vendor strategies - extends The 451 Group's proven expertise in analyzing the grid technology market. This service analyzes the track record as commercial enterprise users introduce grid technologies to their core IT operations, and it examines the effectiveness of the strategies of vendor companies whose technologies early adopters are deploying. It is an extension of The 451 Group's analytical program on grid computing, which provides an assessment of customer demand, looking at the opportunities and challenges facing early adopters and covering adoption within key industries. It also presents the unique opportunities and challenges in specific vertical market segments. About The 451 Group The 451 Group is a technology industry analyst company focused on the business of enterprise IT innovation. The company's analysts provide critical and timely emerging-technology insight to clients at vendor, investor, services and end-user organizations - insight that aids both strategic and tactical decision making for competitive advantage. The 451 Group is headquartered in New York, with offices in key locations, including San Francisco, London and Boston. For additional information on the company or to apply for trial access to its services, go to: www.the451group.comThe 451 Group / Boston Kim Kent, 617-548-3602 kim.kent@the451group.com03/17/2005 09:01 ET

Consolidation plays- the good, the bad and the ugly.

I have seen it all in my 30 years in the application software business. My first software business, ASE Services, was acquired by SSA as part of consolidating an affiliate/var network. The strategy was good and, post acquisition, I participated in acquiring others.But, the actual companies consolidated were mixed in results. Some thrived post acquisition (ASE doubled in two years), some faded into the wood work and were had to measure, and worst were the ones whose people left to form new companies doing what they did prior to being acquired. The devil is in the details, the people, the culture, the communication with customers and the management of the process of integration and leverage.

I participated in the roll up of companies to extend capabilities and solution footprint and in those cases, with good due diligence on technology fit, market fit, and strategy fit, these usually worked well.

The software junk heap plays for the sake of buying install base and cutting overlapping costs, where there is a consolidation similar and disparate products, usually work from a financial strategy perspective but often leave customers in the lurch due to cuts in R&D and a total dilution of resources and focus.

Companies consolidated up to gain perceived capabilities, (ie the recent acquisition by one public company of another private consolidation play for its RFID capability), can backfire completely. The private company itself recently acquired a small company who had extremely rudimentary RFID capability (according to a colleague I spoke with this week who was part of developing that RFID capability and is now with a leading RFID solution provider) and it appears that, if the public did more due dill., they would have found that out and spent a lot less. Instead they may now be faced with either spending much more now one either development of RFID or yet another acquisition - or be faced with very disappointed customers.

Some companies have been built with a financial strategy based on consolidating capabilities right from the get go. Take a look at Siebel. Started with a financial strategy, and a vision of "all customer touch points" and basically no solutions. They quickly acquired just about all the capabilities to fill out that vision, then cleaned it all up and grew like crazy. They were criticized by competitors who felt they had more elegant solutions, but look at who won the space during their reign.

Timing and where you are relative to others are also a factors. I was involved in the consolidation of PrimeResponse with Chordiant - which worked well to add capabilities - and to add complimentary geographic coverage - unfortunately it was timed at the bursting of the bubble so the value in market cap was not achieved long term. Executives, from PrimeResponse, had parachutes upon an event and made out pretty well. Not so sure about the others. Eyretel and Witness was another consolidation for similar reasons - the strategy was pretty successful for a few of the key stakeholders but the majority of option holders of Eyretel pretty much lost out completely. I have personally been pretty fortunate and made fairly sizable capital gains from nearly every transaction I have been involved with. It has brought a personal freedom that many people rarely achieve. In some cases it was also good for the rest of the staff, customers and investors etc. and in some cases it was not. (So where you sit in the arena, and when you make your move, makes a huge difference too.)

One thing consolidation often is not - is a panacea for all involved.

Tuesday, March 15, 2005


Robbie Knievel & Me - Daytona 2005
Posted by Hello

Knievel's Wild Ride journey is, in many ways, like ones we have taken.

On my last day of Daytona Bike Week 05 this year, I parked my new Big Inch Bikes - Saturday Night Special chopper at the Stock Exchange, was having dinner with a friend, and happened to run into Robbie Knievel (who, of course, has taken over, with his own unique style, from where his dad, Evel Knievel left off) "Americas Greatest Daredevil".

He was having dinner with his "crew" and we got a few minutes to chat afterwords. He told me about his upcoming A&E TV series premiering Tuesday April 5th at 10pm est on A&E called Knievel's Wild Ride ("Theirs is the road less traveled - a real-life and limb series...") and how in the first episode they are outnumbered in a bar fight ( a reality show I can't wait to see.) Most of the people shown on this website were there.

He also told me about the very radical and powerful new chopper he just built (which he was riding in Daytona) and how he was starting a chopper line of his own. Really cool guy.....very down to earth for the amount of time he spends leaping in the air.

His story reminds me so much of my own wild ride in the software business and the wild rides many of my friends, associates and clients have taken. Ours has also been the road less traveled and resulted in probably as many spills and thrills. It also reminded me that you constantly have to leverage what you have and reinvent yourself when the time calls for it.

But all of that, my friends, is what makes it worth doing.

Live free, ride hard !

Monday, March 07, 2005

Hi ho ... hi ho....another IPO (for SSA)

SSA Global on last Tuesday said it plans to offer 14.3 million shares at $13-$15 each in a bid to raise up to $215 million in its initial public offering. The Chicago-based maker of Internet-based software for strategic planning, forecasting and budgeting and transactions plans to trade on the Nasdaq under the ticker "SSAG."

But as I say to my kids "This isn't your father's SSA." In fact it barely resembles SSA of old except for the fact that BPCS is part of the porfolio of products being offered by SSAG. I remember the good old days when SSA first went public in the mid 80's....because 6 months later Roger Covey (SSA's CEO and primary founder) came to Boston's Logan Airport to buy my first company (ASE Services.) We were the largest and most successful SSA affiliate. Those were the days of boot-strap financing (no VC's to start either SSA or ASE although Roger did take $1.25 mill. from TA Associates primarily for BOD expertise to help get the IPO off). Those were also the days of 100% revenue growth - with positive cash flow and profits. What a concept! But we did it. And many ventures today could learn a few lessons from those days.

No knock on SSAG - nice job of consolidating bargain basement ventures, who couldn't sustain themselves, into this financial play. Good luck with the IPO. Hope you do at least as well as we did. But somehow it doesn't feel like it is as fun as it was when we built this once laser focused software solution company "in the old days."

ChannelWave acquired by Click Commerce

I met with ChannelWave's former CEO Chris Heidleberger last week at Starbucks to catch up on what each other is up to. I worked with Chris and ChannelWave a few years ago. You meet alot of people in this business and Chris is a terrific person and a friend in addition to being the type of CEO who does whatever it takes.
Enjoy the skiing Chris before you jump into the next venture !

Click Commerce, Inc., a provider of collaborative extranet solutions, acquired substantially all of the operating assets of ChannelWave’s channel management and service automation solutions businesses, for $5.3 million.

Tuesday, March 01, 2005

Lead clearly and prepare as if for WAR !

One definition of WAR I like is from Dick Marcinko's "Leadership Secrets of the Rogue Warrior" - it is We Are Ready.

I totally agree with Dick when he says it is easy is to make things complex, to be obtuse, to be vague about your company so nobody bothers to challenge you. As in war, business has no place for egotism, infighting, complacency or fear. Although some may say these things are human nature - when faced with a kill or be killed situation - well trained commandos instinctively rise above human nature in order to survive - they don't even think about their weaknesses, they focus on their strengths and on saving their butts. You need to approach your goals with confidence and simplicity - to let the troops know where you stand - no hiding behind walls of obscurity. As the sticker on my Harley helmet says "lead, follow or get out of the way!" Lead from the front.

We in the software industry have faced some of the most difficult issues we have ever faced over the last several years. And there are more challenges ahead…. but you need to make one thing clear to your TEAM if you are going to succeed. You need to convince them that you are not just "committed" to winning in some abstract sense ---- but that you have the will to succeed and therefore you will indeed win.... Then you need to combine that with the right strategy and the execution competence to succeed!

You need to let people know what you stand for as a company - it is not a time to survey and react to what's popular - it's time to get on with your Vision, mission and goals. Factions in the market will challenge your stand - but if you find yourself drawing fire… create, innovate, improvise, make sure you have created an advantage, change the game, move the goal post, get proactive and raise your head and fire back with a vengeance.

Preparation ( competitive analysis, sales training and reviews, executive verification meetings, pre-call scenario roll playing, product training, demo prep. with the prospective client, "stress" testing your people before throwing them to the lions, pre-proposal reviews, legal and accounting reviews, selection team polling, approval process verification, objection preemption, etc......... ) is an absolutely vital element of leadership (quotes such as "the more you sweat in training, the less you bleed in combat"..... and the Nietzsche quote paraphrased: "that which does not kill me, makes me stronger" get the point across.) The real thing should be easier than the drill if the drilling is done right.

Find people who are "compulsively self-reliant",( people who have backups to the backup plan), to go into battle with. Those who don't know better, might call these people insecure or neurotic but I call them prepared professionals. When you are prepared, you not only control the present, you learn to be agile and to adapt to the future. Let's face it though, it is not normal to like preparation and training... but it is necessary for success. Your people are not the companies greatest asset... your prepared people who achieve results are the companies greatest asset. They know that Murhpy lurks behind every corner – and that the only defense is to stay on your toes and to be ready for anything.