OneAccord

How Important is a Skateboard?

by Sheri Osborn January 24th, 2007

I had a meeting with the Vice President of an ASP the other day at Peet’s Coffee. The gent told me that I couldn’t miss him. He described himself as having blonde shaggy hair, a blue button down and skateboard. When we met, he asked if there was someone else at our company who was more “current”. I was puzzled at first - then I got it. I am not a skateboard person – what could I know about the current state of the Internet and the issues surrounding ASP’s?

We had a blast back then…

My first thought was the shock that I was considered out of date by anyone. Over the hill? Me? Okay – how long have I been in the valley in the industry I love – whoops - 15 years. I remember how it USED to be – beer bashes every Friday at 5pm – when people actually stopped working at 5pm. Or who can forget when EVERYONE in the valley heard about the uproar created when a toga party at Apple clashed with a visit from IBM executives. COMDEX – before they blew up the Sands. Lots of good times even if we didn’t ride skateboards. Sometimes it was so fun it didn’t feel like work. Sometimes it still feels that way.

It stopped being as fun when…

I think it stopped being so entertaining when I was touched by the hardships created by the ebb and flow of technology creation. Who can forget when the names of the people who were going to be RIF’d were read over the company loud speaker? Or the ever popular “if you get a red envelope, you keep your job. A blue envelope contains your severance package.”

I’ve seen industry-wide layoffs – thousands of very hard-working, smart people who still lost their job. Sometimes it happened because people who made lots of money also made foolish decisions. Sometimes the competition became too much to overcome.

I guess I can live with not being so “current”. We grown-ups do earn our keep. We provide the foundation of well thought-out and predictable business frameworks for good decisions. These harness the fresh and percolating ideas generated by the skateboarders and bring them to market. We need each other. We thrive through collaboration. I think that is what makes “The Valley” the most unique and best place to work.

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How To Identify Your Most Profitable Clients?

by OneAccord December 29th, 2006

When working with company’s that have sales revenue and profit challenges one of the first places to look and diagnose the root cause is within their sales numbers, specifically the sales pipeline.  The sales pipeline typically reveals the symptoms associated with the revenue and profit challenges a company is currently experiencing or will experience.  One key metric to examine is the win rate, which is the total revenue sold divided by the total revenue sold, lost and disengaged.  The win rate percentage provides a factored view and insight into predicting a company’s future sales performance.  Conversely, it also reveals areas of deficiency that are impacting or will impact sales performance. Another key area is looking at how opportunities enter the pipeline.  Do they enter from demand creation (the proactive pursuit of sales revenue) or demand management (reactive pursuit or sales revenue from leads, referrals and bluebirds).  Experience has shown that revenue challenged companies rely much more on demand management than on demand creation to generate sales revenue typically resulting in an unbalanced 80/20 split.

Companies with an unbalanced and unpredictable revenue stream need to ask themselves the following question:  
Where do we want our sales revenue to come from?
When applying conventional wisdom, the answer to the question can be found by identifying your company’s “ideal client profile” or those clients most likely to receive significant value purchasing your product and/or service based on the alignment of qualifying characteristics and attributes between your company and the prospective client. 
However, going a step beyond conventional wisdom and applying biblical wisdom can help you identify not only your most profitable clients but also your most sustainable clients. The biblical wisdom referenced is found in the book “Beyond Babel” by Gerald R. Chester, Ph.D. regarding the biblical principle of equal yoking specifically related to C4 to identify your “ideal C4 client.”   Since most companies typically do not select their clients, it is even more difficult to find C4 clients.
The components of C4 include a company’s:  1. Calling, 2. Character, 3. Capabilities and 4. Commissioning.
Calling – Speaks to the heart of the company.
             Will your value proposition bring lasting value to the prospective client?
Character – Is the accepted worldview of a company.
                 Does the prospective client’s company values and operating principles align with your company?
Capabilities – A company’s ability to assess the value proposition
                   Do your services and/or products facilitate the successful completion of
                   tasks or business challenges that can’t be effectively addressed by your prospective client?
Commissioning – The external invitation and permission to speak into a client.
                         Do you have the affirmation and confidence to fulfill your client’s needs?
In conclusion, the alignment of C4 between your company and your prospective client(s) will not only help establish your most profitable C4 relationships but will also build a sustainable and predictable revenue stream.

 

Gregory T. Wilk

Regional Managing Partner
 

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BluePoint Capital Partners

by OneAccord October 6th, 2006

Blue Point Capital.gif

Dave Difranco

Vice President
When we first met in October of 2005 I shared with you that Blue Point’s goal for every portfolio company is to build long-term equity value. We discussed a portfolio company that we felt was in need of some assistance in revenue generation towards that point.

Your team delivered a “Revenue Review™” in April of 2006 and the results were truly astonishing. In just one day your team was able identify six key areas that were inhibiting revenue in the areas of; alignment with market needs, target profile, customer segmentation, gaps in estimating/engineering support, cost allocations, channel capability and customer communication protocols.

As I told you later that day I am not the type of person who gives accolades very easy but we were stunned at the level discovery your team ascertained in just 10 hours and how practical the recommendations were. As you can imagine a firm like ours has had a tremendous amount of experience with consultants. Quite frankly we are not fans of high level strategic papers that sit on a desk gathering dust so deliverables are very important to us. OneAccord not only met our expectations but exceeded them on a strategic level as well as a tactical level.

The deliverable included three concise recommendations of which Zero Corporation has acted upon two through engagements with OneAccord

Bluepoint Capital Partners are thoroughly satisfied with both the strategic and tactical expertise that OneAccord brings to our portfolio and look forward to introducing OneAccord at the right time into all of our portfolio companies. In addition we feel completely comfortable recommending OneAccord to other enterprises in the M&A community who desire to increase revenues within their holdings.

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What’s The Big ID?

by OneAccord July 21st, 2006

Don’t spend too much money and time developing psychological profiles and conducting research of competitors, or allowing inside executives to invent colors that would make them feel good about the company. It’s more important to connect your identity to your customers and what you can do for them. Therefore, your design style, look and feel, photography, and all other visual design elements that represent your company’s identity should start with your customer. Does your company’s visual identity make a meaningful and relevant connection with your customers? Does the style or font and color treatment reflect the industry or style of business and products and services you offer – including perhaps how they might be used by your customers?

Let’s say you run a business that specializes in artist supplies and tools. You might agree that to make a good connection with customers, your business identity should have a logotype style that appeals to and resembles artistic styles that are familiar to that audience. A creative, colorful, and artsy image would seem most appropriate. But imagine that your artist supply store had something like the big blue striped “IBM” symbol on it. The IBM logo is so well known, and its association with the computer industry so strong, that even if you added the words “Art Supply Store” in big bold type next to this logo your customers will be very confused. Most likely, you’ll not attract too many artists to your store. The style and color of the IBM logo is well suited to the big company corporate image that it represents.

Now let’s imagine what the IBM logo might look like if we were to intentionally adapt it for the purpose of promoting an artist supply store. What if the stripes in the IBM logo were each a different bright color representing all the colors in the rainbow? And what if the “M” was stylized and also served as an artist’s cup holding a few paint brushes, each with a dab of brightly colored paint sticking up out of the cup? Would this version of the IBM logo on an artist supply store be more appropriate and appear more relevant to customers who are artists? Even if the name was “IBM”, the image and color scheme and use of creative elements that match the customers’ purpose would make this a far more appropriate and attractive store front. The use of color is a very powerful tool for communicating and establishing a direct connection with your customers.

This example also illustrates that your brand identity and the connection that it can establish with your customers can transcend business customers into the consumer realm. Further, if your brand identity is strong enough, you may even be able to extend the values of your brand from business products or services to consumer products. In the computer services industry, IBM is one example of a band that has recognition far beyond the large business customers that it primarily serves.

How about an example from the heavy equipment industry that can translate directly into a consumer porduct? Almost every major construction project begins with earth moving, and perhaps one of the most recognizable images on-site during that phase is some big yellow piece of machinery with the word “CAT”, for Caterpillar, painted boldly in black on it’s side. For many people, the name “Caterpillar” is almost synonymous with “bulldozer”, and the big yellow machines are their icon. Imagine if Caterpillar decided, as some of the automobile manufacturers have done, to put their brand name on a mountain bike.

Can you imagine what a Caterpillar branded mountain bike would look like, and what characteristics it might have? The frame is most likely painted bright yellow with a wide cross-bar on which is printed “CAT” in big black letters. The frame might be made of light weight alloys to keep the bike light and easy to handle, but the tubular framing might be oversized and deliberately solid and large in appearance. You also probably imagine this to be a very heavy duty, rugged, mountain-traversing, machine. You could easily trust that this bike will perform as you would expect a rugged mountain bike to perform, especially one carrying the “CAT” name. People would buy this bike feeling that they can conquer the mountains that they aim to ride over, with the confidence that their heavy duty “CAT” will get them there. The connection to your brand can be extended into new products and new markets as long as you stay true to your brand promise and reputation.

When designing an identity, care should be taken to examine all the ways in which that identity will be communicated to your customers and the market place in general. This includes sales and marketing collateral, promotional materials, advertising, business stationery, web sites, product designs and packaging, trade show displays, software user interfaces, business cards, and so on. A consistent design style should be applied and adapted to each one of these areas so that not only will the name and logo be recognizable, but the customer will become familiar with the look and feel of each of these elements and they will recognize them as part of the same company. In essence, the customer experience across all of the visible touch points and interfaces with your company should have a consistent style and familiarity that enhances the instant recognition of your business and simplifies the customer’s relationship with you.

Don’t make the mistake of designing very complex looking marketing collateral and web site designs that feature your products in great detail, including screen shots of software, detailed technical descriptions, design look and feel elements that are derived from your own internal business – labs, production, factory floor or executive offices. You would be missing the point of creating all of this communication in the first place: to effectively establish long term relationships with customers.

In the industry for your products and services, there may be many existing elements like symbols, colors, or other visual images that are very familiar to the people who buy and use the appropriate products and services. Every community has such elements that connect the people in that community together. Your mission is to find those elements, adopt them within your identity, and become an integral part of the community you to intend to serve. Your customers will not only want to include you in everything they do, they will have a hard time thinking of themselves without you when you competitors come knocking.

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Boomers, Now’s the time to sell your business!

by Darin Leonard May 22nd, 2006

As an organization, we are seeing it more and more.  We are brought in with the sole intent of ramping revenue and subsequent valuation for Baby Boomer owned companies.  They come face to face with that moment of realization that they aren’t going to own their company forever and they have no exit strategy.  That moment of reality almost always leads to “SELL!” which is then followed by “IT IS ONLY WORTH WHAT?”

 That is when our referral and alliance partners call us and the conversation goes something like; “The CEO wants to sell in 24 to 36 months and they want OneAccord to help them double the value of the company.”  Many times, this type of scenario is actually plausible but with the glut of companies that are owned by Boomers hitting the market over the next ten years, it is going to become more and more difficult.

The recommendation is concise.  Extend the vision for your exit strategy beyond the next 2 to 3 years and start ramping valuation now.  Simply put, view other companies outside your industry as competition for your dollars at sale and position yourself to win now for payout in 5 to 10 years. 

If you want validation, listen to John Zayac, President of IBG, an M&A advisory firm.  “Tax-wise there’s some good inducement to sell soon,” he said. “I wouldn’t run out and do it just because of the baby boomer curve, but now is the time to prepare your company for sale. You can typically add about 30 percent to value if you prepare the company years in advance of sale.”

For futher information, visit the attached article from Renee McGaw, Banking & Finance Reporter for the Denver Business Journal.  It is further validation on the opportunity in front of you and hopefully spurs you to take action.  One way or the other.

http://denver.bizjournals.com/denver/stories/2006/05/22/story2.html?hbx=e_abd 

Darin Leonard
Partner - OneAccord

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