The Will to Grow ™

Culture, Execution, and Accountability

When articles used to discuss culture, many business leaders would consider it frilly and the soft side of business (in business school, we called it the “soft stuff”). Today, it is generally accepted that having a positive culture that works for your organization (because by definition no two cultures are exactly the same – there always exist different dynamics) is critical to your company’s success. Vision and strategy are incredibly important but without a culture that works, the best strategies can fail.

Yet there is one other aspect that I have witnessed first-hand that can greatly help drive your culture and execution, and that is accountability. Organizations can vary how they parse accountability (by person, team, company, combinations thereof), but having real ownership and accountability over an area, work flow, process, system, project (whatever it may be) can provide the necessary empowerment and measured results to assist in execution. I have seen organizations with lack of accountability have real issues with driving results because teammates can flounder and are simply lost. The best organizations seem to have a strong yet simple vision, excellent strategy and objectives, a real culture of execution with teammate accountability and empowerment, and often have fun in the journey.

Technology as Business Driver -- and Marketing's Influence

Historically, IT departments were viewed as cost centers by business leaders. They were looked at as necessary for the business but costly with uncertain results. Then there was a shift in industry where business leaders discovered that technology could be used to automate systems and drive efficiency gains. IT was thus used a catalyst for improved operations and cost reductions. This still exists today, but I have seen a trend develop the last few years that has taken technology’s meaning to the business to a much higher level. Though cost remains important, technology is now being viewed by the C-suite as a revenue generator. Yes, I actually said “revenue generator.” Technology firms themselves obviously used technology to generate revenue, but in today’s world, CEOs from a plethora of industries are asking their CIOs and CTOs an important question. How can we best use technology to grow?

One of the key drivers of this change in the C-Suite, other than the CEO, has been the Chief Marketing Officer (CMO). A core reason has been the changing role of the CMO. In addition to traditional branding, promotions, events, etc., leading CMOs today are focused on collaboration. They are thinking about bringing teams together internally, not just externally, to best serve their customers. They are thinking about communications, knowledge sharing, and ultimately bringing these components together to drive revenue. This is leading to a number of opportunities around portal development, collaboration systems, social media platforms, content management, business intelligence and so on.

This has been a marked and step change and is resulting in innumerable opportunities for Axispoint and technology services firms like us. Our challenge is to truly understand the needs of the business and develop highly effective technology solutions to best foster collaboration and help the C-Suite of innovative businesses across industries drive growth. It’s an exciting proposition – technology as catalyst for growth – and now firms like ours have to make it a reality.

Technology as Business Driver -- and Marketing's Influence

Historically, IT departments were viewed as cost centers by business leaders. They were looked at as necessary for the business but costly with uncertain results. Then there was a shift in industry where business leaders discovered that technology could be used to automate systems and drive efficiency gains. IT was thus used a catalyst for improved operations and cost reductions. This still exists today, but I have seen a trend develop the last few years that has taken technology’s meaning to the business to a much higher level. Though cost remains important, technology is now being viewed by the C-suite as a revenue generator. Yes, I actually said “revenue generator.” Technology firms themselves obviously used technology to generate revenue, but in today’s world, CEOs from a plethora of industries are asking their CIOs and CTOs an important question. How can we best use technology to grow?

One of the key drivers of this change in the C-Suite, other than the CEO, has been the Chief Marketing Officer (CMO). A core reason has been the changing role of the CMO. In addition to traditional branding, promotions, events, etc., leading CMOs today are focused on collaboration. They are thinking about bringing teams together internally, not just externally, to best serve their customers. They are thinking about communications, knowledge sharing, and ultimately bringing these components together to drive revenue. This is leading to a number of opportunities around portal development, collaboration systems, social media platforms, content management, business intelligence and so on.

This has been a marked and step change and is resulting in innumerable opportunities for Axispoint and technology services firms like us. Our challenge is to truly understand the needs of the business and develop highly effective technology solutions to best foster collaboration and help the C-Suite of innovative businesses across industries drive growth. It’s an exciting proposition – technology as catalyst for growth – and now firms like ours have to make it a reality.

Davy Jones – Goodness Has Its Effect, Connects

I don’t proclaim to be a huge Monkees fan who listens to their music every day, but I am one of millions of people who grew up watching Monkees reruns on television. I never met Davy Jones but have read several articles about him last week after his tragic passing (heart attack) at age 66. By all accounts, Davy was the soul of the Monkees, and in addition to being a heartthrob in the 60s and 70s, seemed to exude a goodness that instantly made you happy. I know this sounds odd, especially for younger readers who didn’t have a chance to see him, but I remember smiling and laughing at his and his compadres antics, and actually liking their music which was a little out of my normal taste of music at the time.

What I read in these articles is that Davy Jones was actually a great person with a caring heart. He made an incredible difference with not only the Monkees, but in broader music, TV, film and stage. He connected with people, made them feel good about themselves, their situations, the world, etc., even if it was for the brief time he spent with them in one of these venues.

I have been thinking that this is what in fact makes a great leader – the ability to connect with others. Great leaders throughout history have accomplished this with different styles (gregarious, lower key, hard charging, by actions versus words, etc.). They connected with their teams, people, groups to lead them to the next level and success. By passing on his goodness and warmth to others which came through in his artistry and personal relationships, Davy Jones was able to positively affect millions of lives. This is extraordinary and a lesson for all of us in leadership positions. It’s really about connection. I also hold onto an old adage and believe goodness can prevail, and Davy Jones prevailed.

"The Internet of Everything"

At the recent annual YPO IT Network Conference on Mobility, I had the distinct privilege of hearing Dr. Paul Jacobs, CEO and Chairman of Qualcomm, speak and then meeting with him afterwards. One of the key takeaways from our discussion is what Paul called “The Internet of Everything.” The spread of mobility is leading to a world of complete connection. Whether with your phone, tablet, laptop, or other devices, in today’s world we utilize various types of mobile solutions to connect personally and professionally – it’s amazing how times have changed! I remember the first time I went to St. Bart’s in 1998. I had started with a venture capital firm earlier that year, and the first thing the CEO did was hand me a cell phone and pager. My wife and I were at a villa in the middle of nowhere as we watched a small truck drive up a steep hill to our villa. The man ran over to me and handed me a fax because my cell and pager weren’t working so well in the Caribbean (which didn’t stop my CEO from finding me!).

In today’s world, this wouldn’t happen. Wireless is becoming so pervasive (St. Bart’s now has real coverage) and innovations in mobility allow connections in the most remote locations. Actually, more people now connect through mobile solutions than through wired solutions. Where the market is trending is toward “The Internet of Everything.” Our mobile devices will not just allow connection, but will enable consumption and ultimately control (Connect – Consume – Control). Imagine all of your devices built with sensors and radios, such as your printer, photo display, washing machine (yes, appliances too), etc. Through your mobile devices you will actually be able to control much of your environment. You are seeing glimpses of it today where you can control video cameras remotely, your entire entertainment system through wireless controllers, and access music not even stored locally but by selecting songs from the “cloud.”

This is the beginning of controlling your environment. We haven’t seen anything yet, and it all started with the “mobility revolution.” I am excited what the future holds as our ability to Connect, Consume and Control continues to improve and becomes the norm, a part of life you can’t imagine being without (just think of not having a cell phone today). I guess no more faxes for me in St. Bart’s!

IT - the Recruiting Challenge

I don’t have a lot of time to attend conferences, so I tend to be very selective and only go if I see real business value. Over the last two weeks, I attended two important technology conferences (yes, two in two weeks – my family is not very happy with me): The Young Presidents Organization (YPO) annual IT Network Conference (this year focused on mobility) and the Best of Breed Conference which brings together top technology solutions companies across the nation. I will separately blog about some key learnings from both conferences.

Over the last two weeks, the most repeated question I was asked by my peers, journalists, vendors and others is what I considered to be Axispoint’s most critical challenge. The answer, simply put, is recruiting. The US unemployment rate remains over 9%. People want to work and are searching for positions. The problem is the unemployed are not in technology and if they are, they have been difficult to find in the geographies we serve. Axispoint has worked diligently to hire over 30 new employees the last four months, but it has been nothing less than painstaking. We have multiple people internally and externally attempting to find and hire the right talent, but in many cases they either don’t exist or aren’t leaving their current positions. One of the reasons many US companies have looked overseas (e.g., India, China, Brazil, etc.) is to have greater scalability opportunities (as well gain cost efficiencies).

I believe we have an education disconnect in the US. Not everyone has to attend a four year college to have an important role in technology. It seems a part of our issue is a mismatch in skills. I believe if some folks were to obtain technology training and skills at a multitude of institutions and organizations, the technology firms across the US could put more Americans to work.

In Monday’s (10/24/11) Wall Street Journal (“The Journal Report”), Peter Cappelli disagrees with this premise or at a minimum takes an alternative point of view. His thought is that the education system is not failing our economy, but rather, companies deserve a lot of the blame themselves for unemployment. First of all, I’m not saying the education system is to blame; I’m saying we need to re-educate some of our workforce to meet demands in the marketplace. In other words, if there was a significant need for actuaries, and there were 100,000 vacancies for this type of work, it would be nice if supply could be developed over time to meet the demand.

I do agree with Dr. Cappelli that sometimes it can be a catch 22 in that recruiters often want people who already have a job. However, I only partially buy-in that there is a “clearing problem” in the US; i.e., he argues there isn’t a skill shortage, but rather companies won’t pay the clearing price for the talent. I believe both issues exist, though in the near-term I really see a shortfall in IT talent. Axispoint and my peers are experiencing it every day. When I answered the critical challenge question with recruiting, my peers vehemently agreed stating that they are living with the same dilemma.

We are attempting to come up with innovative solutions. We are trying to figure out how to hire smart talent and then train them. These are important things to do and companies like mine need to perform these tasks. I think the real change though comes to bear when companies act in combination with the workforce developing new skills based on changing market demands. To get America back to work, it will be a collective effort. Technology is a hot bed and a great place to start.

Steve Jobs and Disruptive Business Models

Numerous articles and blogs have been written about the brilliance and innovativeness of Steve Jobs. With his passing, the world has lost a pioneer and leader in technology and industry. I didn’t have the privilege of meeting him or knowing him, however he has made a lasting effect on me and my thoughts on growth (and I don’t mean because of the Apple products I own and consume).

What resonates with me most and makes me want to emulate in my career is his ability to create disruptive business models and change entire industries through innovation. Sure the iPod became the digital version of the historic Sony Walkman, but to achieve superior growth and own a market, Steve Jobs and his brethren at Apple created iTunes and in very short order changed the entire music industry on a dime. As many of you know, we, at Axispoint, have been deeply involved in the music and entertainment industries for a number of years, building software and critical systems for leading companies. I have witnessed first-hand how iTunes significantly advanced digital music, helping plummet lucrative CD and other music product sales.

When Apple launched the iPhone, it wasn’t on the map in mobile devices and telecommunications. However, by creating a user experience that was so simple and graphically friendly and opening up a platform to let developers build applications (and then monetizing it) and users download them, Apple revolutionized the cellular market. I don’t think companies like Motorola, RIM and Nokia could have imagined such as disruption. Apples App Store is now the leader in applications and Apple is providing new iPhone innovations in every release such as voice commands, cloud services, etc.

And what about the iPad? Apple created an entirely new category of product in the computing, e-reader, and mobile device world. I own the iPad 2 and find the functionality and ease of use so powerful and simple, I can just imagine features that will be coming down the road. I still own a laptop, but with an iPad, why would I need to buy a small notebook? What will happen to that product category when computing features become more prevalent on the iPad?

I’m mentioning some of his recent successes, but Steve Jobs has been innovative his entire career. For example, many people forget that he created Pixar, another disruptive business model. Pixar used such advanced technologies and concepts that it forever changed the look and direction of animated films.

I know I’m one of a plethora of people who have praised his accomplishments. Yet for me it’s not just around product development; it’s the ability to creatively change markets. Someone recently said to me, “The best way to predict the future is to invent it.” No one epitomized this more than Steve Jobs.

Technology as Revenue Generator

I am very pleased that we are projecting Axispoint’s revenue to increase approximately 40% this year, all of which through organic growth. Many of my peers have asked me why we are experiencing high growth during an often turbulent market. In addition to Axispoint’s strategy and tactics to try to outpace the competition and market growth (which I have blogged about in the past), there are two macro trends I would like to discuss that affect the technology services industry.

The first is most intuitive and has been an influencer for decades. Companies are always looking to achieve gains in efficiency and often look to IT to provide automation and streamlining of processes through systems. This, in turn, leads to improved productivity and often cost cutting measures that drive corporate profits. Technology automation and efficiency gains are especially relevant in an economic downturn where businesses want to reduce overall operating expenses.

The second macro trend is newer and really excites me. Over the last few years, I am seeing more and more businesses involve their technology teams to help drive revenue and growth. Yes, that’s right – technology as an enabler to growth! Obviously, technology has always been a revenue driver for tech and software companies, yet I have seen businesses across industries from retail to hospitality to real estate to health care, engage their IT teams and in turn companies like Axispoint. CIOs and CTOs are beginning to be viewed as integral parts of the “C” Suite who can help their companies achieve new heights, whereas in the past many IT departments were viewed as outright cost centers.

This is an exciting and motivating trend for technology solutions providers. Automation and efficiency gains will always be important, but now the conversation involves the business and how we can affectively work together to achieve superior growth.

Achieving Superior Growth in Uncertain Times

The macroeconomy is clearly performing better than two years ago, when we were in the middle of the worse recession of our lifetimes.  Though the market has recovered, it hasn’t achieved the growth to date we are all hoping for.  In particular, unemployment remains far too high, the housing market is still experiencing weakness, and the credit markets have yet to return to pre-recession levels.

 

What does this mean for your business?  How do you succeed during a slow recovering marketplace?  First, you have to look at your industry’s performance, and second how you are differentiating yourself in that industry.  Axispoint is a leading technology solutions company focused on three core areas: IT Services, Application Services and Managed Services.  Several macro and micro factors have affected our sector.  At last year’s VAR 500 Conference, it was stated that over 50,000 IT Services companies in the US went out of business during our recent recession.  This is a staggering and sobering number.  No one likes to hear about peers and their respective employees losing their jobs.  In 2011, the technology services sector is experiencing growth again.  Clients have considerable capital reserves, and they need applications and infrastructure to not only gain efficiencies, but better position themselves for revenue gains.

 

I have never been satisfied with “at market” growth.  The uptick in our sector is good for business, but the right strategy and more importantly, exceptional execution, is what will determine if your company can achieve above average market rents and growth.  At Axispoint, we are laser focused on our core business, while continually building out our “hot” subpractices that are part of those core offerings.  We have several solutions that are currently in high demand, such as Mobility (DAS and Applications), Business Video, and Enterprise 2.0/Collaboration.  We also have a more focused sales approach, putting in place a Named Account strategy two years ago that has proven successful for both clients and Axispoint.  If you can truly “box above your weight” with a superior sales model, and excel in delivery and customer care, you have a strong formula for sustainable organic growth even during wavering times and markets, such as we are experiencing today.

The Importance of Vacation

I don’t know about you, but I’m definitely the type of person who can become so focused that I sometimes forget the importance of taking a vacation and recharging the batteries.  I’m currently on a plane, flying home from my favorite place to get away, St. Bart’s.  I could write a year’s worth of blogs on why St. Bart’s is so special to me and feels like my home away from home, but it doesn’t matter where you go or what you do, as long as you find your peace and relaxation. 

I’m a Type A personality and I like to run hard and fast (the key here is that I truly like to live this way – no one forces me to do it).  I also am involved in numerous activities from work to YPO (Young President’s Organization) to being a Little League baseball coach.  Most of the executives and entrepreneurs I know (those focused on growth) are similar in that they have a lot of proverbial balls simultaneously in the air.  What we often forget (me clearly included) is that we are all just people, human beings trying to grow personally and professionally.  And a key aspect of growth actually occurs during downtime.  Whether you are reconnecting with a spouse or significant other, building family memories that will last a lifetime, or focusing on reenergizing your spirit, a vacation (time away) will help your mind, body and soul grow.  I actually find that I do some of my best creative thinking when I’m away with fewer distractions.  So make time to stop for a moment, decompress, and enjoy “other things.”  I guarantee it will significantly help you and your business in your quest for growth.

Next, we need to figure out what to do about constant connectivity via smart phones, iPads and other electronic devices (I love being connected but there’s also a true downside to 24/7 access wherever you are)…